Document:

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THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED WITH THE SECURITIES
AND EXCHANGE COMMISSION IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT.
[Insert Issue Date]

__________ shares(1)                                          Warrant No. ____

                            NET VALUE HOLDINGS, INC.
                             STOCK PURCHASE WARRANT

Registered Owner: [Insert Registered Owner]

         This certifies that, for value received, Net Value Holdings, Inc., a
Delaware corporation (the "Company"), grants the following rights to the
Registered Owner, or assigns, of this Warrant:

         1. Definitions. Capitalized terms used herein and not otherwise defined
herein shall have the meanings given to such terms in the Purchase Agreement. As
used in this Warrant, the following terms have the following meanings:

         "Affiliate" means, with respect to any Person, any other Person that
directly or indirectly controls or is controlled by or under direct or indirect
common control with such Person. For the purposes of this definition, "control,"
when used with respect to any Person, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of such Person, whether through the ownership of voting securities, by
contract or otherwise; and the terms of "affiliated," "controlling" and
"controlled" have meanings correlative to the foregoing.

         "Appraiser" means a nationally recognized or major regional investment
banking firm or firm of independent certified public accountants of recognized
standing.

          "Business Day" means any day except Saturday, Sunday and any day which
shall be a legal holiday or a day on which banking institutions in the state of
Delaware generally are authorized or required by law or other government actions
to close.

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(1) The number of Compensation Warrants issued to the Registered Owner shall be
50% of the number of Closing Warrants issued to such Registered Owner.

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         "Cashless Exercise" has the meaning assigned to it in Section 6(b)
hereof.

         "Change of Control Transaction" means the occurrence of any of (i) the
merger or consolidation of the Company with or into another entity, unless the
holders of the Company's securities immediately prior to such transaction or
series of transactions continue to hold at least 50% of such securities
following such transaction or series of transactions, (ii) a sale, conveyance,
lease, transfer or disposition of all or substantially all of the assets of the
Company in one or a series of related transactions or (iii) the execution by the
Company of an agreement to which the Company is a party or by which it is bound,
providing for any of the events set forth above in (i) or (ii).

         "Closing" and "Closing Date" have the meanings set forth in Section 1.3
of the Purchase Agreement.

         "Common Stock" means the shares of the Company's Common Stock, par
value $.01 per share.

         "Common Stock Deemed Outstanding" means, at any given time, the sum of
the number of shares of Common Stock actually outstanding at such time plus the
number of shares of Common Stock issuable upon the exercise of all options,
rights and warrants and the conversion or exchange of convertible or
exchangeable securities outstanding at such time, whether or not such options,
rights, or warrants, or convertible or exchangeable securities are actually
exercisable, convertible or exchangeable at such time.

         "Company" means Net Value Holdings, Inc., a Delaware corporation.

         "Excluded Securities" means (i) shares of Common Stock issued or
issuable pursuant to the Purchase Agreement and the Warrants, (ii) shares of
Common Stock deemed to have been issued by the Company in connection with a
transaction set forth on Schedule 5.23 to the Purchase Agreement or (iii) shares
of Common Stock (including options and warrants) issuable upon the exercise of
any options or warrants outstanding on the date hereof and listed in Schedule
2.5(b) of the Purchase Agreement.

         "Exercise Period" has the meaning assigned to it in Section 5 hereof.

         "Exercise Price" has the meaning assigned to it in Section 4 hereof.

         "Mandatory Exercise" has the meaning assigned to it in Section 8
hereof.

         "Mandatory Exercise Date" has the meaning assigned to it in Section 8
hereof.

         "Mandatory Exercise Period" has the meaning assigned to it in Section 8
hereof.

         "Mandatory Exercise Price" has the meaning assigned to it in Section 8
hereof

         "OTCBB" means the OTC Bulletin Board of the National Association of
Securities Dealers, Inc.

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         "Per Share Market Value" means on any particular date (i) the closing
bid price per share of the Common Stock on such date on (a) the OTCBB, as
reported by the National Quotation Bureau Incorporated (or similar organization
or agency succeeding to its functions of reporting prices) at the close of
business on such date, or (b) such other Subsequent Market on which the Common
Stock is then listed or quoted or, if there is no such price on such date, then
the closing bid price on such exchange or quotation system on the date nearest
preceding such date, or (ii) if the Common Stock is not then publicly traded the
fair market value of a share of Common Stock as determined by an Appraiser
selected in good faith by the registered owners of a majority of the Underlying
Shares and Warrants then outstanding; provided, however, that, after receipt of
the determination by such Appraiser, the Company shall have the right to select,
in good faith, an additional Appraiser, in which case the fair market value
shall be equal to the average of the determinations by each such Appraiser; and
provided, further that all determinations of the Per Share Market Value shall be
appropriately adjusted for any stock dividends, stock splits or other similar
transactions during such period.

         "Person" means an individual or a corporation, partnership, trust,
incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or political subdivision
thereof) or other entity of any kind.

         "Purchase Agreement" means that certain Series C Preferred Stock
Purchase Agreement, dated March 3, 2000, among the Company and the Purchasers.

         "Purchasers" has the meaning set forth in the Purchase Agreement.

         "Registered Owner" means the Person identified on the face of this
Warrant as the registered owner hereof or their assigns.

         "Subsequent Market" means the NASDAQ SmallCap Market, the NASDAQ
National Market, the New York Stock Exchange or the American Stock Exchange.

         "Trading Day(s)" means any day on which the primary market on which
shares of Common Stock are listed is open for trading.

         "Underlying Shares" means the shares of Common Stock issuable upon
exercise of this Warrant.

         "Warrant(s)" means this Compensation Warrant (as defined in the
Purchase Agreement).

         "Warrant Shares" has the meaning assigned to it in Section 3 hereof.

         2. Issue. Upon tender to the Company pursuant to Section 6 hereof, the
Company, within three (3) Business Days of the date thereof, shall issue to the
Registered Owner, or its designee, up to the number of shares specified in
Section 3 hereof of fully paid and nonassessable shares of Common Stock that the
Registered Owner, or assigns, is otherwise entitled to purchase.

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         3. Number of Shares. The total number of shares of Common Stock that
the Registered Owner, or assigns, of this Warrant is entitled to receive upon
exercise of this Warrant is __________ shares (the "Warrant Shares"), subject to
adjustment from time to time as provided herein. The Company shall at all times
reserve and hold available out of its authorized and unissued shares of Common
Stock or other securities, as the case may be, sufficient shares of Common Stock
to satisfy all conversion, exercise and purchase rights represented by
outstanding convertible securities, options and warrants, including this
Warrant. The Company covenants and agrees that all shares of Common Stock that
may be issued upon the exercise of this Warrant shall, upon issuance, be duly
and validly issued, fully paid and nonassessable, free from all taxes, liens and
charges with respect to the purchase and the issuance of the shares, shall not
have any legend or restrictions on resale, expect as required by Section 7.3 of
the Purchase Agreement and, subsequent to the effectiveness of the registration
statement registering the Underlying Shares, shall be freely tradable.

         4. Exercise Price. The initial per share exercise price of this
Warrant, representing the price per share at which each share of Common Stock
issuable upon exercise of this Warrant may be purchased, is $4.09 subject to
adjustment from the Closing Date to the date of issue for stock splits,
dividends, combinations, reorganizations and other similar transactions with
respect to the Common Stock, and subject to adjustment from time to time during
the Exercise Period pursuant to the provisions of Section 7 hereof (the
"Exercise Price").

         5. Exercise Period. This Warrant may be exercised, in whole or in part,
from [insert issue date] up to and including [insert date] (2 years less 1 day)
(the "Exercise Period"). If not exercised during this period, this Warrant and
all rights granted under this Warrant shall expire and lapse.

         6.   Tender; Issuance of Certificates.

                  a. This Warrant may be exercised, in whole or in part, by (a)
         delivery of the applicable Exercise Price for the number of Warrant
         Shares in respect of which this Warrant is exercisable, (b) delivery of
         a duly executed Warrant Exercise Form, a copy of which is attached to
         this Warrant as Exhibit A, properly executed by the Registered Owner,
         or assigns, of this Warrant and (c) surrender of this Warrant. The
         number of Warrant Shares so purchased shall be designated on the
         Warrant Exercise Form and shall be deemed to be issued to the
         Registered Owner as of the close of business on the date on which this
         Warrant shall have been surrendered, the completed Warrant Exercise
         Form shall have been delivered and payment shall have been made for
         such shares as set forth above. The payment and Warrant Exercise Form
         must be delivered to the registered office of the Company or of the
         Company's transfer agent, either in person or as set for in Section 13
         hereof.

                  b. In addition to the exercise of all or a part of this
         Warrant by payment of the Exercise Price in cash as provided above, and
         in lieu of such payment, the Registered Owner shall have the right to
         effect a cashless exercise (a "Cashless Exercise"). In the event of a
         Cashless Exercise the Registered Owner may exercise this Warrant in
         whole or in part by surrendering this Warrant in exchange for the
         number of shares of Common Stock equal to the product of (i) the number
         of shares as to which this Warrant is being exercised multiplied by
         (ii) a fraction, the numerator of which is the Per Share Market Value
         on such date less the Exercise Price then in effect and the denominator
         of which is the Per Share Market Value on such date (in each case
         adjusted for fractional shares as herein provided).

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                  c. In lieu of physical delivery of this Warrant, provided the
         Company's transfer agent is participating in the Depositary Trust
         Company ("DTC") Fast Automated Securities Transfer (FAST) program, upon
         request of the Registered Owner and in compliance with the provisions
         hereof, the Company shall use its best efforts to cause its transfer
         agent to electronically transmit the Warrant Shares to the Registered
         Owner by crediting the account of the Registered Owner's Prime Broker
         with DTC through its Deposit Withdrawal Agent Commission system. The
         time period for delivery described herein shall apply to any such
         electronic transmittals.

                  d. Certificates for the Warrant Shares so purchased,
         representing the aggregate number of shares specified in the Warrant
         Exercise Form, and any cash payments due under Section 15 hereof shall
         be delivered to the Registered Owner, or its designee, within three (3)
         Business Days after this Warrant shall have been so exercised. The
         certificates so delivered shall be in such denominations as may be
         requested by the Registered Owner and shall be registered in the name
         of the Registered Owner or such other name as shall be designated by
         such Registered Owner. If this Warrant shall have been exercised only
         in part then, unless this Warrant has expired, the Company shall, at
         its expense and at the time of delivery of such certificates, deliver
         to the Registered Owner a new Warrant representing the number of shares
         with respect to which this Warrant shall not then have been exercised.

         7.   Adjustment of Exercise Price.

                  a. Common Stock Dividends; Common Stock Splits;
         Reclassification. If the Company, at any time while this Warrant is
         outstanding, (a) shall pay or make a stock dividend on its Common Stock
         in shares of Common Stock, (b) subdivide outstanding shares of Common
         Stock into a larger number of shares or (c) issue by reclassification
         of shares of Common Stock any shares of capital stock of the Company,
         then (i) the Exercise Price shall be multiplied by a fraction, the
         numerator of which shall be the number of shares of Common Stock
         outstanding before such event and the denominator of which shall be the
         number of shares of Common Stock outstanding after such event and (ii)
         the number of Warrant Shares shall be multiplied by a fraction, the
         numerator of which shall be the number of shares of Common Stock
         outstanding immediately after such event and the denominator of which
         shall be the number of shares of Common Stock outstanding immediately
         prior to such event. Any adjustment made pursuant to this Section 7(a)
         shall become effective immediately after the record date for the
         determination of shareholders entitled to receive such dividend or
         distribution or, in the case of a subdivision or re-classification,
         shall become effective immediately after the effective date thereof.

                  b. Rights; Options; Warrants or Other Securities. If the
         Company, at any time while this Warrant is outstanding, shall fix a
         record date for the issuance of rights, options, warrants or other
         securities (collectively, "Rights") to the holders of its Common Stock
         entitling them to subscribe for or purchase, convert into, exchange for
         or otherwise acquire shares of Common Stock, or any stock or other
         securities convertible into or exchangeable for Common Stock for no
         consideration or for a price per share less than the Exercise Price,
         then the Exercise Price shall be multiplied by a fraction, the
         numerator of which shall be (i) the number of shares of Common Stock
         outstanding immediately prior to such record date plus (ii) the number
         of shares of Common Stock which the aggregate consideration received by
         the Company for the issuance of such Rights and the aggregate
         consideration receivable by the Company upon exercise, conversion,
         exchange or other acquisition of Common Stock pursuant to such rights
         would purchase at the Exercise Price, and the denominator of which
         shall be (i) the number of shares of Common Stock outstanding
         immediately prior to such record date plus (ii) the number of
         additional shares of Common Stock offered for subscription, purchase,
         conversion, exchange or acquisition, as the case may be, pursuant to
         such Rights. Such adjustment shall be made whenever such

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         rights, options, warrants or other securities are issued, and shall
         become effective immediately after the record date for the
         determination of shareholders entitled to receive such rights, options,
         warrants or other securities. However, upon the expiration of any such
         Rights, the issuance of which resulted in an adjustment in the Exercise
         Price pursuant to this Section 6(b), if all or any portion of such
         Rights shall not have been exercised, the Exercise Price shall
         immediately upon such expiration be increased to the price which it
         would have been after the issuance of such Rights on the basis of the
         number of shares of Common Stock (if any) actually purchased upon the
         exercise of such Rights actually exercised.

                  c. Subscription Rights. If the Company, at any time while this
         Warrant is outstanding, shall fix a record date for the distribution to
         holders of its Common Stock evidence of its indebtedness or assets or
         rights, options, warrants or other securities entitling them to
         subscribe for or purchase, convert into, exchange for or otherwise
         acquire any security (excluding those referred to in Sections 7(a) and
         (b) above), then in each such case the Exercise Price at which this
         Warrant shall thereafter be exercisable shall be determined by
         multiplying the Exercise Price in effect immediately prior to such
         record date by a fraction, the numerator of which shall be the Per
         Share Market Value on such record date less the then fair market value
         at such record date of the portion of such assets, evidence of
         indebtedness, rights, options, warrants or other securities so
         distributed applicable to one outstanding share of Common Stock as
         determined by the Board of Directors in good faith, and the denominator
         of which shall be the Per Share Market Value as of such record date;
         provided, however, that in the event of a distribution exceeding ten
         percent (10%) of the net assets of the Company, such fair market value
         shall be determined by an Appraiser selected in good faith by the
         registered owners of a majority of the Warrants and Underlying Shares
         then outstanding; and provided, further, that the Company, after
         receipt of the determination by such Appraiser shall have the right to
         select in good faith an additional Appraiser meeting the same
         qualifications, in which case the fair market value shall be equal to
         the average of the determinations by each such Appraiser. Such
         adjustment shall be made whenever any such distribution is made and
         shall become effective immediately after the record date mentioned
         above.

                  d. Record Date. If the Company takes a record of the holders
         of Common Stock for the purpose of entitling them (a) to receive a
         dividend or other distribution payable in Common Stock, Options or in
         Convertible Securities or (b) to subscribe for or purchase Common
         Stock, Options or Convertible Securities, then such record date will be
         deemed to be the date of the issue or sale of the shares of Common
         Stock deemed to have been issued or sold upon the declaration of such
         dividend or the making of such other distribution or the date of the
         granting of such right of subscription or purchase, as the case may be.

                  e. Notice of Adjustment. Whenever the Exercise Price is
         adjusted pursuant to this Section 7 the Company shall promptly deliver
         to the Registered Owner a notice setting forth the Exercise Price after
         such adjustment and setting forth a brief statement of the facts
         requiring such adjustment. Such notice shall be signed by the chairman,
         president or chief financial officer of the Company.

                  f. Treasury Shares. The number of shares of Common Stock
         outstanding at any given time shall not include shares owned or held by
         or for the account of the Company, and the disposition of any shares so
         owned or held shall be considered an issue or sale of Common Stock by
         the Company.

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                  g. Change of Control; Compulsory Share Exchange. In case of
         (A) any Change of Control Transaction or (B) any compulsory share
         exchange pursuant to which the Common Stock is converted into other
         securities, cash or property (each, an "Event"), lawful provision shall
         be made so that the Registered Owner shall have the right thereafter to
         exercise this Warrant for shares of stock and other securities, cash
         and property receivable upon or deemed to be held by holders of Common
         Stock following such Event, and the Registered Owner shall be entitled
         upon such Event to receive such amount of shares of stock and other
         securities, cash or property as the shares of the Common Stock of the
         Company into which this Warrant could have been exercised immediately
         prior to such Event (without taking into account any limitations or
         restrictions on the exercisability of this Warrant) would have been
         entitled; provided, however, that in the case of a transaction
         specified in (A), above, in which holders of the Company's Common Stock
         receive cash, the Registered Owner shall have the right to exercise the
         Warrant for such number of shares of the surviving company equal to the
         amount of cash into which this Warrant is then exercisable, divided by
         the fair market value of the shares of the surviving company on the
         effective date of such Event. The terms of any such Event shall include
         such terms so as to continue to give to the Registered Owner the right
         to receive the securities, cash or property set forth in this Section
         7(g) upon any exercise or redemption following such Event. In any such
         case appropriate adjustment shall be made in the application of the
         provisions of this Section 7 with respect to the rights of the
         Registered Owner after such transaction to the end that the provisions
         of this Section 7 (including adjustment of the Exercise Price then in
         effect and the number of Warrant Shares issuable upon exercise of this
         Warrant) shall be applicable after that Event and be as nearly
         equivalent as practicable. In the case of an Event specified in (A),
         above, the successor corporation or other entity (if other than the
         Company) resulting from such Event, or the Person acquiring the
         properties and assets, or such other controlling corporation or entity
         as may be appropriate, shall expressly assume the obligation to deliver
         the cash, securities or other property which the
         Registered Owner is entitled to receive hereunder. The provisions of
         this Section 7(g) shall similarly apply to successive Events.

                  h. Issuance's Below Exercise Price. If the Company, at any
         time while this Warrant is outstanding:

                         (i)  issues or sells, or is deemed to have issued or
                  sold, any Common Stock (other than any Excluded Securities);

                         (ii) in any manner grants, issues or sells any rights,
                  options, warrants, options to subscribe for or to purchase
                  Common Stock or any stock or other securities convertible into
                  or exchangeable for Common Stock (other than any Excluded
                  Securities) (such rights, options or warrants being herein
                  called "Options" and such convertible or exchangeable stock or
                  securities being herein called "Convertible Securities"); or

                         (iii) in any manner issues or sells any Convertible
                  Securities (other than Excluded Securities);

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         for (a) with respect to paragraph (h)(i), above, a price per share, or
         (b) with respect to paragraphs h(ii) or h(iii), above, a price per
         share (including the consideration per share paid on issuance of the
         Option or Convertible Securities) for which Common Stock issuable upon
         the exercise of such Options or upon conversion or exchange of such
         Convertible Securities is, less than the Exercise Price in effect
         immediately prior to such issuance, sale or grant, then, immediately
         after such issuance, sale or grant, the Exercise Price shall be reduced
         to the amount determined by dividing (1) the sum of (x) the product
         derived by multiplying the Exercise Price in effect immediately prior
         to such issue or sale by the number of shares of Common Stock Deemed
         Outstanding immediately prior to such issue or sale, plus (y) the
         consideration, if any, received or deemed to have been received by the
         Company upon such issue or sale, by (2) the number of shares of Common
         Stock Deemed Outstanding immediately after such issue or sale. No
         modification of the issuance terms shall be made upon the actual
         issuance of such Common Stock upon exercise, conversion or exchange of
         such Options or Convertible Securities. If there is a change at any
         time in (i) the exercise price provided for in any Options, (ii) the
         additional consideration, if any, payable upon the issuance, conversion
         or exchange of any Convertible Securities or (iii) the rate at which
         any Convertible Securities are convertible into or exchangeable for
         Common Stock, then immediately after such change the Exercise Price
         shall be adjusted to the Exercise Price which would have been in effect
         at such time had such Options or Convertible Securities still
         outstanding provided for such changed exercise price, additional
         consideration or changed conversion rate, as the case may be, at the
         time initially granted, issued or sold; provided that no adjustment
         shall be made if such adjustment would result in an increase of the
         Exercise Price then in effect. However, upon the expiration of any such
         Options or Convertible Securities, the issuance of which resulted in an
         adjustment in the Exercise Price pursuant to this Section 6(h), if all
         or any portion of any such Options or Convertible Securities shall not
         have been exercised, the Exercise Price shall immediately upon such
         expiration be increased to the price which it would have been
         after the issuance of such Options or Convertible Securities on the
         basis of the Company offering for subscription, purchase, conversion,
         exchange or acquisition only that number of shares of Common Stock (if
         any) actually purchased upon the exercise of such Rights actually
         exercised.

                  i. Effect on Exercise Price of Certain Events. For purposes of
         determining the adjusted Exercise Price under Section 7(h), the
         following shall be applicable:

                           (i) Calculation of Consideration Received. If any
                  Common Stock, Options or Convertible Securities are issued or
                  sold or deemed to have been issued or sold for cash, the
                  consideration received therefor will be deemed to be the net
                  amount received by the Company therefor, without deducting any
                  expenses paid or incurred by the Company or any commissions or
                  compensations paid or concessions or discounts allowed to
                  underwriters, dealers or others performing similar services in
                  connection with such issue or sale. In case any Common Stock,
                  Options or Convertible Securities are issued or sold for a
                  consideration other than cash, the amount of the consideration
                  other than cash received by the Company will be the fair value
                  of such consideration, except where such consideration
                  consists of securities listed or quoted on a national
                  securities exchange or national quotation system, in which
                  case the amount of consideration received by the Company will
                  be the arithmetic average of the closing sale price of such
                  security for the five (5) consecutive Trading Days immediately
                  preceding the

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                  date of receipt thereof. In case any Common Stock, Options or
                  Convertible Securities are issued to the owners of the
                  non-surviving entity in connection with any merger in which
                  the Company is the surviving entity, the amount of
                  consideration therefor will be deemed to be the fair value of
                  such portion of the net assets and business of the
                  non-surviving entity as is attributable to such Common Stock,
                  Options or Convertible Securities, as the case may be. The
                  fair value of any consideration other than cash or securities
                  listed or quoted on a national securities exchange or national
                  quotation system will be determined jointly by the Company and
                  the registered owners of a majority of the Underlying Shares
                  and Warrants then outstanding. If such parties are unable to
                  reach agreement within ten (10) days after the occurrence of
                  an event requiring valuation (the "Valuation Event"), the fair
                  value of such consideration will be determined within
                  forty-eight (48) hours of the tenth (10th) day following the
                  Valuation Event by an Appraiser selected in good faith by the
                  Company and agreed upon in good faith by registered owners of
                  a majority of the Underlying Shares and Warrants then
                  outstanding. The determination of such Appraiser shall be
                  binding upon all parties absent manifest error.

                           (ii) Integrated Transactions. In case any In case any
                  Option is issued in connection with the issue or sale of other
                  securities of the Company, together comprising one integrated
                  transaction in which no specific consideration is allocated to
                  such Options by the parties thereto, the Options will be
                  deemed to have been issued for an aggregate consideration of
                  $.001.

                  j. Notice of Certain Events. If:

                           (i) the Company shall declare a dividend (or any
                  other distribution) on its Common Stock;

                           (ii) the Company shall declare a special nonrecurring
                  cash dividend on or a redemption of its Common Stock;

                           (iii) the Company shall authorize the granting to the
                  holders of its Common Stock rights, options or warrants to
                  subscribe for or purchase any shares of capital stock of any
                  class or of any rights;

                           (iv) the approval of any shareholders of the Company
                  shall be required in connection with any reclassification of
                  the Common Stock or any Change of Control Transaction; or

                           (v) the Company shall authorize the voluntary or
                  involuntary dissolution, liquidation or winding up of the
                  affairs of the Company;

         then the Company shall cause to be filed at each office or agency
         maintained for the purpose of exercise of this Warrant, and shall cause
         to be delivered to the Registered Owner, at least 30 (thirty) calendar
         days prior to the applicable record or effective date hereinafter
         specified, a notice (provided such notice shall not include any
         material non- public information) stating (a) the date on which a
         record is to be taken for the purpose of such dividend, distribution,
         redemption, or granting of options, rights or warrants, or if a record
         is not to be taken, the date as of which the holders of Common Stock of

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         record to be entitled to such dividend, distributions, redemption,
         rights or warrants are to be determined or (b) the date on which such
         reclassification or Change of Control Transaction is expected to become
         effective or close, and the date as of which it is expected that
         holders of record of Common Stock shall be entitled to exchange their
         shares of Common Stock for securities, cash or other property
         deliverable in connection with such reclassification or Change of
         Control Transaction; provided, however, that the failure to mail such
         notice or any defect therein or in the mailing thereof shall not affect
         the validity of the corporate action required to be specified in such
         notice. Nothing herein shall prohibit the Registered Owner from
         exercising this Warrant during the 30- day period commencing on the
         date of such notice.

                  k. Rounding. All calculations under this Section 7 shall be
         made to the nearest cent or the nearest l/l00th of a share, as the case
         may be.

                  l. Other Events. If any event occurs that would adversely
         affect the rights of the Registered Owner of this Warrant but is not
         expressly provided for by Section 7 hereof (including, without
         limitation, the granting of stock appreciation rights, phantom stock
         rights or other rights with equity features), then the Company's Board
         of Directors will make an appropriate adjustment in the Exercise Price
         so as to protect the rights of the Registered Owner; provided, however,
         that no such adjustment will increase the Exercise Price.

                  m. Increase in Exercise Price. In no event shall any provision
         in this Section 7 cause the Exercise Price to be greater than the
         Exercise Price on the date of issuance of this Warrant.

         8. Mandatory Exercise. If, at any time during the Exercise Period, the
Per Share Market Value equals or exceeds $6.14 (the "Mandatory Exercise Price")
for any period of thirty (30) consecutive Trading Days (ending no earlier than
the day that the registration statement registering the Underlying Shares has
been declared effective by the Securities and Exchange Commission) (the
"Mandatory Exercise Period"), then so long as (i) the registration statement
registering the Underlying Shares is then in effect and (ii) the Company has a
sufficient number of authorized shares of Common Stock reserved for issuance
upon full exercise of the Warrants, the Registered Owner shall be required to
exercise this Warrant in full (the "Mandatory Exercise") in accordance with the
provisions of Section 6 hereof. This Warrant shall be exercised pursuant to the
Mandatory Exercise on no later than the fifth (5th) Trading Day following the
Mandatory Conversion Period (such date that this Warrant is exercised pursuant
to the Mandatory Exercise, the "Mandatory Exercise Date").

         9. Restriction on Exercise by Either the Registered Owner or the
Company. Notwithstanding anything herein to the contrary, and except as provided
in Section 8 hereof, in no event shall the Registered Owner or the Company have
the right or be required to exercise this Warrant to the extent that such
exercise would cause the aggregate number of shares of Common Stock beneficially
owned by such Registered Owner and its Affiliates to exceed 4.99% of the
outstanding shares of the Common Stock following such exercise. For purposes of
this Section 9, beneficial ownership shall be calculated in accordance with
Section 13(d) of the Securities Exchange Act of 1934, as amended. The provisions
of this Section 9 may be waived by a Registered Owner as to itself (and solely
as to itself) upon not less than 65 days prior written notice to the Company,
and the provisions of this Section 9 shall continue to apply until such 65th day
(or later, if stated in the notice of waiver). [THIS PROVISION MAY BE DELETED AT
THE OPTION OF THE REGISTERED HOLDER]

                                       10

<PAGE>

         10. Registration on Company Books. This Warrant shall be numbered and
shall be registered upon issuance in a warrant register maintained the Company.
The Company may deem and treat the Registered Owner of this Warrant as the
absolute owner thereof, unless the Registered Owner shall have presented this
Warrant to the Company for transfer and the transferee shall have been entered
in the register as a subsequent holder. The ownership of this Warrant shall be
proven by such register, absent manifest error.

         11. Registration Rights. The Company will undertake the registration of
the Common Stock into which this Warrant is exercisable at such times and upon
such terms pursuant to the Registration Rights Agreement, in the form of Exhibit
E to the Purchase Agreement.

         12. Reservation of Underlying Shares; Listing. The Company covenants
that it will at all times reserve and keep available out of its authorized
shares of Common Stock, free from preemptive rights, solely for the purpose of
issue upon exercise of this Warrants as herein provided, such number of shares
of the Common Stock as shall then be issuable upon the exercise of all
outstanding Warrants into Common Stock. The Company shall promptly secure the
listing of the shares of Common Stock issuable upon exercise of this Warrant
upon each national securities exchange or automated quotation system upon which
shares of Common Stock are then listed (subject to official notice of issuance
upon exercise of this Warrant) and shall maintain, so long as any other shares
of Common Stock shall be so listed, such listing of all shares of Common Stock
from time to time issuable upon the exercise of this Warrant.

         13. Notices. Any notice or other communication required or permitted to
be given hereunder shall be in writing and shall be deemed to have been received
(a) upon hand delivery (receipt acknowledged) or delivery by telex (with correct
answer back received), telecopy or facsimile (with transmission confirmation
report) at the address or number designated below (if received by 5:00 p.m.
Eastern time where such notice is to be received), or the first Business Day
following such delivery (if received after 5:00 p.m. Eastern time where such
notice is to be received) or (b) on the second Business Day following the date
of mailing by express courier service, fully prepaid, addressed to such address,
or upon actual receipt of such mailing, whichever shall first occur. The
addresses for such communications are (i) if to the Company or the Company's
transfer agent to the address set forth in the Purchase Agreement (with copies
to the Company's counsel), and (ii) if to the Registered Owner to the addresses
set forth on the Purchase Agreement (with copies to the Registered Owner's
counsel) or such other address as may be designated in writing hereafter, in the
same manner, by such Person.

         14. Compliance With Governmental Requirements. The Company covenants
that if any shares of Common Stock required to be reserved for purposes of
exercise this Warrant requires registration with or approval of any governmental
authority under any federal or state law, or any national securities exchange,
before such shares may be issued upon exercise, the Company will use its best
efforts to cause such shares to be duly registered or approved, as the case may
be.

         15. Fractional Shares. Upon any exercise hereunder, the Company shall
not be required to issue stock certificates representing fractions of shares of
Common Stock, but may if otherwise permitted make a cash payment in respect of
any final fraction of a share based on the Per Share Market Value at such time.
If the Company elects not, or is unable, to make such a cash payment, the
Registered Owner shall be entitled to receive, in lieu of the final fraction of
a share, one whole share of Common Stock.

                                       11

<PAGE>

         16. Payment of Tax Upon Issue of Transfer. The issuance of certificates
for shares of the Common Stock upon exercise of this Warrant shall be made
without charge to the Registered Owner hereof for any documentary stamp or
similar taxes that may be payable in respect of the issue or delivery of such
certificate, provided that the Company shall not be required to pay any tax that
may be payable in respect of any transfer involved in the issuance and delivery
of any such certificate upon exercise in a name other than that of the
Registered Owner of this Warrant and the Company shall not be required to issue
or deliver such certificates unless or until the Person or Persons requesting
the issuance thereof shall have paid to the Company the amount of such tax or
shall have established to the satisfaction of the Company that such tax has been
paid.

         17. Warrants Owned by Company Deemed Not Outstanding. In determining
whether the holders of the outstanding Warrants have concurred in any direction,
consent or waiver under this Warrant, warrants which are owned by the Company or
any other obligor thereof shall be disregarded and deemed not to be outstanding
for the purpose of any such determination; provided, that any Warrants owned by
the Registered Owner shall be deemed outstanding for purposes of making such a
determination.

         18. Effect of Headings. The section headings herein are for convenience
only and shall not affect the construction hereof.

         19. No Rights as Stockholder. This Warrant shall not entitle the
Registered Owner to any rights as a stockholder of the Company, including
without limitation, the right to vote, to receive dividends and other
distributions, or to receive notice of, or to attend, meetings of stockholders
or any other proceedings of the Company, unless and to the extent exercised into
shares of Common Stock in accordance with the terms hereof.

         20. Certain Actions Prohibited. The Company will not, by amendment of
its charter or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities, or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms to be
observed or performed by it hereunder, but will at all times in good faith
assist in the carrying out of all the provisions of this Warrant and in the
taking of all such action as may reasonably be requested by the Registered Owner
in order to protect the exercise privilege of the Registered Owner against
dilution or other impairment, consistent with the tenor and purpose of this
Warrant. Without limiting the generality of the foregoing, the Company (i) will
not increase the par value of any shares of Common Stock receivable upon the
exercise of this Warrant and (ii) will take all such actions as may be necessary
or appropriate in order that the Company may validly and legally issue fully
paid and nonassessable shares of Common Stock upon the exercise of this Warrant.

         21. Shareholder Rights Plan. In the event that the Company shall
distribute "poison pill" rights pursuant to a "poison pill" shareholder rights
plan (the "Shareholder Rights"), the Company shall, in lieu of making any
adjustment pursuant to Section 7 hereof, make proper provision so that each
Registered Owner who exercises this Warrant after the record date for such
distribution and prior to the expiration or redemption of the Shareholder Rights
shall be entitled to receive upon such exercise, in addition to the shares of
Common Stock issuable upon such exercise, a number of Shareholder Rights to be
determined as follows: (i) if such exercise occurs on or prior to the date for
the distribution to the holders of Shareholder Rights of separate certificates
evidencing such Shareholder Rights (the "Distribution Date"), the same number of
Shareholder Rights to which a holder of a number of shares of Common Stock equal
to the number of shares of Common Stock issuable upon such exercise at the time
of such exercise would be entitled in accordance with the terms and provisions
of and applicable to the Shareholder Rights; and (ii) if such exercise occurs
after the Distribution Date, the same number of Shareholder Rights to which a
holder of the number of shares into which this Warrant was exercisable
immediately prior to the Distribution Date would have been entitled on the
Distribution Date, in accordance with the terms and provisions of such
Shareholder Rights, and in each case subject to the terms and conditions of the
Shareholder Rights.

                                       12

<PAGE>

         22. Successors and Assigns. This Warrant shall be binding upon and
inure to the benefit of the Registered Owners and its assigns, and shall be
binding upon any entity succeeding to the Company by merger or acquisition of
all or substantially all the assets of the Company. The Company may not assign
this Warrant or any rights or obligations hereunder without the prior written
consent of the Registered Owner. The Registered Owner may assign this Warrant
without the prior written consent of the Company.

         23. Governing Law. This Warrant shall be governed by and construed and
enforced in accordance with the internal laws of the [State of Delaware], as
applied to agreements under seal made, and entirely to be performed, within
[Delaware], without regard to the principles of conflicts of law thereof. Each
party hereby irrevocably waives personal service of process and consents to
process being served in any such suit, action or proceeding by mailing a copy
thereof to such party at the address for such notices to it under this Warrant
and agrees that such service shall constitute good and sufficient service of
process and notice thereof. Nothing contained herein shall be deemed to limit in
any way any right to serve process in any manner permitted by law. EACH PARTY
HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A
JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION
HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED
HEREBY.

         24. Remedies. In the event of a breach by the Company of any of their
obligations under this Warrant, the Registered Owner, in addition to being
entitled to exercise all rights granted by law and under the Purchase Agreement,
including recovery of damages, will be entitled to specific performance of its
rights under this Warrant. The Company agrees that monetary damages would not
provide adequate compensation for any losses incurred by reason of a breach by
it of any of the provisions of this Warrant and hereby further agree that, in
the event of any action for specific performance in respect of such breach, it
shall waive the defense that a remedy at law would be adequate.

         25. Mutilated or Missing Warrants. In case this Warrant shall be
mutilated, lost, stolen or destroyed, the Company, upon request of the
Registered Owner, shall issue and deliver in exchange and substitution for and
upon cancellation of such mutilated Warrant (upon surrender thereof), or in the
event that this Warrant is lost, stolen or destroyed, a new Warrant of like
tenor and representing an equivalent right or interest upon any indemnification
undertaking by the Holder to the Company in customary form as reasonably
required by the Company.

                                                       13

<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Warrant to be executed
by its duly authorized officer as of the date first set forth above.

                                                     NET VALUE HOLDINGS, INC.

                                                     By:________________________
                                                     Name:
                                                     Title:

<PAGE>

                                    EXHIBIT A

                              Warrant Exercise Form
                              ---------------------

TO:      NET VALUE HOLDINGS, INC.

         The undersigned hereby: (1) irrevocably subscribes for and offers to
purchase _______ shares of Common Stock of Net Value Holdings, Inc., pursuant to
Warrant No. ___ heretofore issued to ___________________ on ____________, ____ ;
(2) encloses either (a) a cash payment of $__________ or (b) a Warrant
representing _____ shares of Common Stock valued at the Per Share Market Price
of $ _____ on ________, ____, for these shares at a price of $____ per share (as
adjusted pursuant to the provisions of the Warrant); and (3) requests that a
certificate for the shares be issued in the name of the undersigned, or the
undersigned's designee, and delivered to the undersigned, or the undersigned's
designee, at the address specified below.

             Date:                              ________________________________

             Investor Name:                     ________________________________

             Taxpayer Identification Number:    ________________________________

             By:                                ________________________________

             Printed Name:                      ________________________________

             Title:                             ________________________________

             Address:                           ________________________________

                                                ________________________________

                                                ________________________________

             Cashless Exercise (Y or N):        __________

             Note: The above signature should correspond exactly with the
             name on the face of this Warrant Certificate or with the name
             of assignee appearing in assignment form below.

AND, if said number of shares shall not be all the shares purchasable under the
within Warrant, a new Warrant Certificate is to be issued in the name of said
undersigned for the balance remaining of the shares purchasable thereunder less
any fraction of a share paid in cash and delivered to the address stated above.<PAGE>
                          REGISTRATION RIGHTS AGREEMENT

                  This Registration Rights Agreement (this "Agreement") is made
and entered into as of March 3, 2000, among Net Value Holdings, Inc., a Delaware
corporation (the "Company"), and the parties who have executed this Agreement
and whose names appear on Schedule I hereto (each party listed on Schedule I
hereto is sometimes individually referred to herein as a "Purchaser" and all
such parties are sometimes collectively referred to herein as the "Purchasers").

                  The Company and the Purchasers hereby agree as follows:

         1.       Definitions
                  Capitalized terms used herein and not otherwise defined shall
have the meanings given to such terms in the Purchase Agreement. As used in this
Agreement, the following terms shall have the following meanings:

                  "Affiliate" means, with respect to any Person, any other
Person that directly or indirectly controls or is controlled by or under common
control with such Person. For the purposes of this definition, "control," when
used with respect to any Person, means the possession, direct or indirect, of
the power to direct or cause the direction of the management and policies of
such Person, whether through the ownership of voting securities, by contract or
otherwise; and the terms "affiliated," controlling" and "controlled" have
meanings correlative to the foregoing.

                  "Business Day" means any day except Saturday, Sunday and any
day which shall be a legal holiday or a day on which banking institutions in the
Commonwealth of Massachusetts generally are authorized or required by law or
other government actions to close.

                  "Commission" means the Securities and Exchange Commission.

                  "Common Stock" means the Company's Common Stock, par value
$0.01per share.

                  "Demand Registration" has meaning set forth in Section 2(a)
hereof.

                  "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

                  "Holder" or "Holders" means the holder or holders, as the case
may be, from time to time of Registrable Securities.

                  "Indemnified Party" has the meaning set forth in Section 8(c)
hereof.

                  "Indemnifying Party" has the meaning set forth in Section 8(c)
hereof.

                  "Losses" has the meaning set forth in Section 8(a) hereof.

                                        1
<PAGE>

                  "Majority Holders" means the Holders of at least sixty (60%)
percent of the Registrable Securities.

                  "Person" means an individual or a corporation, partnership,
trust, incorporated or unincorporated association, joint venture, limited
liability company, joint stock company, government (or an agency or political
subdivision thereof) or other entity of any kind.

                  "Purchase Agreement" means the Series C Preferred Stock
Purchase Agreement, dated as of the date hereof, by and among the Company and
the Purchasers.

                  "Proceeding" means an action, claim, suit, investigation or
proceeding (including, without limitation, an investigation or partial
proceeding, such as a deposition), whether commenced or threatened.

                  "Prospectus" means the prospectus included in the Registration
Statement (including, without limitation, a prospectus that includes any
information previously omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 430A promulgated under the
Securities Act), as amended or supplemented by any prospectus supplement, with
respect to the terms of the offering of any portion of the Registrable
Securities covered by the Registration Statement, and all other amendments and
supplements to the Prospectus, including post-effective amendments, and all
material incorporated by reference in such Prospectus.

                  "Registrable Securities" means any shares of the Company's
Common Stock (i) issuable upon exercise of the Compensation Warrant (as defined
in the Purchase Agreement), (ii) issuable on conversion of the shares of the
Company's Series C Preferred (as defined in the Purchase Agreement) issued to
any Holder in payment of a dividend upon the Series C Preferred and not
otherwise included in the registration statement filed in connection with the
Purchase Agreement and (iii) issued with respect thereto as a result of any
stock split, stock dividend, recapitalization, exchange or similar event or
otherwise.

                  "Registration Statement" means any registration statements
contemplated by Sections 2(a) and 3(a), including (in each case) the Prospectus,
amendments and supplements to such registration statement or Prospectus,
including pre- and post-effective amendments, all exhibits thereto, and all
material incorporated by reference in such registration statement.

                  "Rule 144" means Rule 144 promulgated by the Commission
pursuant to the Securities Act, as such Rule may be amended from time to time,
or any similar rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

                  "Rule 158" means Rule 158 promulgated by the Commission
pursuant to the Securities Act, as such Rule may be amended from time to time,
or any similar rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

                  "Securities Act" means the Securities Act of 1933, as amended.

                                        2

<PAGE>

                  "Special Counsel" means one special counsel to the Holders,
chosen by the Holder of a majority of the Registrable Securities, for which the
Holders will be reimbursed by the Company pursuant to Section 7.

                  "Trading Day" means a day on which the primary market on which
the shares of the Company's Common Stock are traded or quoted is open for
trading.

                  "Underwritten Registration or Underwritten Offering" means a
registration in connection with which securities of the Company are sold to an
underwriter for reoffering to the public pursuant to an effective registration
statement.

         2.       Required Registration
                                             (a) Requests for Registration At
                           any time, and from time to time, the Majority Holders
                           may request in writing that the Company effect the
                           registration under the Securities Act of all or part
                           of their respective Registrable Securities (but in no
                           event less than 25% of the aggregate Registrable
                           Securities) for sale in the manner specified in such
                           request, and on a form that may be used for the
                           registration of such Registrable Securities. Within
                           ten days after receipt of any request pursuant to
                           this Section 2(a) the Company will give written
                           notice of such request to all other holders of
                           Registrable Securities (whether or not such holders
                           could make a request for registration pursuant to the
                           preceding sentence), and will include in such
                           registration all Registrable Securities with respect
                           to which the Company has received written requests
                           for inclusion therein within thirty (30) days after
                           the receipt of the Company's notice; provided,
                           however, that the Company shall not be required to
                           register any Registrable Securities pursuant to this
                           Section 2(a) that are eligible for sale pursuant to
                           Rule 144 without regard to volume restrictions. All
                           registrations requested pursuant to the foregoing are
                           referred to herein as "Demand Registrations".

                                             (b) Number of Demand Registrations.
                           The Company shall be obligated to register
                           Registrable Securities pursuant to a Demand
                           Registration on as many occasions as may be
                           reasonably requested by the Majority Holders to
                           effect the sale of the Registrable Securities, not to
                           exceed one (1) Demand Registration in any period of
                           twelve (12) consecutive months.

                                             (c) Priority on Demand
                           Registrations. If a Demand Registration is an
                           Underwritten Offering the Holders of a majority of
                           the Registrable Securities to be included in such
                           offering shall be entitled to designate the lead
                           underwriter and the Company may designate one or more
                           co-managing underwriters. In such event, and if the
                           managing underwriters advise the Company and such
                           Holders in writing that in their opinion the amount
                           of Registrable Securities and other securities, if
                           any,

                                        3

<PAGE>

                           proposed to be sold in such Underwritten Offering (i)
                           creates a substantial risk that the price per share
                           in such registration will be materially and adversely
                           affected or (ii) exceeds the number of Registrable
                           Securities and other securities, if any, which can be
                           sold in such offering, and based on such
                           determination recommends inclusion in such
                           registration statement of fewer Registrable
                           Securities then proposed to be sold by the Holders,
                           then the number of Registrable Securities of the
                           Holders included in such registration statement shall
                           be reduced pro rata among such Holders (based upon
                           the number of Registrable Securities requested to be
                           included in the registration); provided, however,
                           that if securities are being offered for the account
                           of other persons or entities as well as the Company,
                           such reduction shall not represent a greater fraction
                           of the number of Registrable Securities intended to
                           be offered by the Holders than the fraction of
                           similar reductions imposed on such other persons or
                           entities (including the Company). No Holder may
                           participate in any Underwritten Offering hereunder
                           unless such Holder (a) agrees to sell its Registrable
                           Securities on the basis provided in any underwriting
                           agreements approved by the Persons entitled hereunder
                           to approve such arrangements and (b) completes and
                           executes all questionnaires, powers of attorney,
                           indemnities, underwriting agreements and other
                           documents required under the terms of such
                           arrangements.

                                             (d) Restrictions on Registration.
                           The Company may postpone for up to sixty (60) days
                           the filing or the effectiveness of a Demand
                           Registration if at the time of such request to
                           register the Registrable Securities the Company
                           furnishes to each Holder seeking to register such
                           Registrable Securities a certificate signed by a
                           senior executive officer of the Company stating that
                           the Company is engaged in any other activity which,
                           in the good faith determination of the Company's
                           Board of Directors, is a material non-public event
                           which would be adversely affected by the requested
                           registration to the material detriment of the
                           Company.

         3.       Piggy-Back Registrations.

                  (a) Right to Piggyback. Whenever the Company shall determine
to prepare and file with the Commission a registration statement relating to an
offering for its own account or the account of others under the Securities Act
of any of its equity securities, other than on Form S-4 or Form S-8 (each as
promulgated under the Securities Act) or their then equivalents relating to
equity securities to be issued solely in connection with any acquisition of any
entity or business or equity securities issuable in connection with stock option
or other employee benefit plans, the Company shall send to each Holder of
Registrable Securities written notice of such determination within two (2)
Business Days thereof and, if within twenty (20) days after receipt of such
notice, any such Holder shall so request in writing to participate in such
offering (which request shall specify the Registrable Securities intended to be
disposed of by the Holders), the Company will use its best efforts to effect the
registration under the Securities Act of all

                                        4

<PAGE>

Registrable Securities which the Company has been so requested to register by
the Holder, to the extent requisite to permit the disposition of the Registrable
Securities so to be registered; provided, that if at any time after giving
written notice of its intention to register any securities and prior to the
effective date of the registration statement filed in connection with such
registration, the Company shall determine for any reason not to register or to
delay registration of such securities, the Company may, at its election, give
written notice of such determination to such Holder and, thereupon, (i) in the
case of a determination not to register, shall be relieved of its obligation to
register any Registrable Securities in connection with such registration (but
not from its obligation to pay expenses in accordance with Section 6 hereof),
and (ii) in the case of a determination to delay registering, shall be permitted
to delay registering any Registrable Securities being registered pursuant to
this Section 3 for the same period as the delay in registering such other
securities.

                  (b) Priority on Piggy-Back Registration. The Company shall
include in such registration statement all or any part of such Registrable
Securities such Holder requests to be registered; provided, however, that the
Company shall not be required to register any Registrable Securities pursuant to
this Section 3(b) that are eligible for sale pursuant to Rule 144 without regard
to volume restrictions. In the case of an Underwritten Offering, if the managing
underwriters advise the Company and such Holders in writing that in their
opinion the amount of Registrable Securities proposed to be sold in such
Underwritten Offering (i) creates a substantial risk that the price per share in
such registration will be materially and adversely affected or (ii) exceeds the
number of Registrable Securities which can be sold in such offering, and based
on such determination recommends inclusion in such registration statement of
fewer Registrable Securities then proposed to be sold by the Holders, then (a)
the number of Registrable Securities of the Holders included in such
registration statement shall be reduced pro rata among such Holders (based upon
the number of Registrable Securities requested to be included in the
registration); provided, however, that if securities are being offered for the
account of other persons or entities as well as the Company, such reduction
shall not represent a greater fraction of the number of Registrable Securities
intended to be offered by the Holders than the fraction of similar reductions
imposed on such other persons or entities.

         4. Holdback Agreements. Each of the Holders of Registrable Securities
agrees not to effect any public sale or distribution of equity securities of the
Company, or any securities convertible into or exchangeable or exercisable for
such securities, during the seven (7) days prior to and the 90-day period
beginning on the effective date of any underwritten Demand Registration or any
underwritten Piggyback Registration (except in each case as part of such
Underwritten Registration), unless the underwriters managing the registered
public offering otherwise agree; provided, that all officers, directors and
employees of the Company holding at least 1% of the outstanding Common Stock
enter into similar agreements.

         5. Registration Procedures. Whenever the Holders of Registrable
Securities have requested that any shares of Registrable Securities be
registered pursuant to this Agreement, the Company shall use its best efforts to
effect the registration and the sale of such Registrable

                                        5

<PAGE>

Securities in accordance with the intended method of disposition thereof, and
pursuant thereto the Company shall as expeditiously as possible:

                  (a) Preparation of Registration Statement. Prepare and file
with the Commission a registration statement on the appropriate form under the
Securities Act, which form shall be available for the sale of such Registrable
Securities in accordance with the intended method or methods of distribution
thereof, and use is best efforts to cause such registration statement to become
effective as soon as commercially practicable, and remain effective for such
period as may be reasonably necessary to effect the sale of such securities, not
to exceed nine months (except in the case of a Shelf Registration);

                  (b) Amendments. Prepare and file with the Commission such
amendments and supplements to the Registration Statement and the Prospectus used
in connection therewith as may be necessary to comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by the
Registration Statement.

                  (c) Copies of Prospectus. Furnish such number of Prospectuses
and other documents incident thereto, including any amendment of or supplement
to the Prospectus, as a Holder from time to time may reasonably request.

                  (d) Registration. Provide a transfer agent and registrar for
all Common Stock registered pursuant to the Registration Statement and a CUSIP
number for all such Common Stock.

                  (e) Blue Sky. File the documents required of the Company and
otherwise use its best efforts promptly to obtain, if applicable, and maintain
requisite blue sky clearance in (A) all jurisdictions in which any of the
Acquired Securities are originally sold, and (B) all other states specified in
writing by a Holder, provided as to clause (B), however, that the Company shall
not be required to (i) qualify to do business or consent to service of process
in any state in which it is not now so qualified or has not so consented, (ii)
subject itself to general taxation in any such jurisdiction, (iii) file a
general consent to service of process in any such jurisdiction, (iv) provide any
undertakings that cause the Company undue expense or burden, or (v) make any
change in its charter or bylaws, which in each case the Board of Directors of
the Company determines to be contrary to the best interests of the Company and
its stockholders.

                  (f) Notification. As promptly as practicable after becoming
aware of such event, the Company shall notify each Holder of the happening of
any event, of which the Company has knowledge, as a result of which the
Prospectus included in a Registration Statement, as then in effect, includes an
untrue statement of a material fact or omission to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading (including without limitation any transfer of Registrable Securities
by a person named as a selling shareholder in a Registration Statement), and use
its best efforts promptly to prepare a supplement or amendment to such
Registration Statement to correct such untrue statement or omission, and deliver
such number of copies of such supplement or amendment to each Investor as such
Investor may reasonably request.

                                        6
<PAGE>

                  (g) Stop Orders; Suspensions. The Company shall use its best
efforts to prevent the issuance of any stop order or other suspension of
effectiveness of a Registration Statement, and, if such an order is issued, to
obtain the withdrawal of such order at the earliest practicable moment
(including in each case by amending or supplementing such Registration
Statement) and to notify each Holder who holds Registrable Securities being sold
(or, in the event of an underwritten offering, the managing underwriters) of the
issuance of such order and the resolution thereof (and if such Registration
Statement is supplemented or amended, deliver such number of copies of such
supplement or amendment to each Investor as such Investor may reasonably
request).

                  (h) Listing. (i) Cause all Registrable Securities relating to
such Registration Statement to be listed or authorized for quotation on each
securities exchange or automated quotation system on which similar securities
issued by the Company are then listed or quoted and, if no similar securities
issued by the Company are then listed or quoted, cause the original listing or
quotation of such Registrable Securities, (ii) maintain such listing of all such
Registrable Securities, (iii) provide the Holders evidence of such listing, (iv)
refrain from taking any action which may result in the delisting or suspension
of the Common Stock with respect to such listing and (v) pay all fees and
expenses in connection with satisfying its obligations hereunder.

                  (i) Certain Agreements. Enter into such customary agreements
(including, if there is an underwriter, underwriting agreements in customary
form including, without limitation, the requirement to obtain an opinion of
counsel to the company and a "comfort letter" from the independent public
accountants to the Company in the usual and customary form for such an
underwritten offering).

                  (j) Due Diligence. Make available for inspection by any seller
of Registrable Securities, any underwriter participating in any disposition
pursuant to such Registration Statement and any attorney, accountant or other
agent retained by any such seller or underwriter, all financial and other
records, pertinent corporate documents and properties of the Company that is
customary, and cause the Company's officers, directors, employees and
independent accountants to supply all information reasonably requested by any
such seller, underwriter, attorney, accountant or agent in connection with such
Registration Statement

                  (k) Responses to the Commission. The Company agrees to respond
fully and completely to any and all comments on a Registration Statement
received from the Commission staff as promptly as possible but in no event later
than ten (10) Business Days of the receipt of such comments, regardless of
whether such comments are in oral or written form.

                  (l) Confirmation of Effectiveness. Within two (2) Business
Days after a Registration Statement which covers applicable Registrable
Securities is ordered effective by the Commission, the Company shall deliver,
and shall cause legal counsel for the Company to deliver, to the transfer agent
for such Registrable Securities (with copies to the Holders whose Registrable
Securities are included in such Registration Statement) confirmation that such
Registration Statement has been declared effective by the Commission in the form
attached hereto as Exhibit A.

                                        7

<PAGE>

                  (m) Earnings Statement. Comply in all material respects with
all applicable rules and regulations of the Commission and make generally
available to its securityholders earning statements satisfying the provisions of
Section 11(a) of the Securities Act and Rule 158.

                  (n) Cooperation. Cooperate, and cause the Company's officers,
directors, employees and independent accountants to cooperate, with the selling
holders of Registrable Securities and the managing underwriters, if any, in the
sale of the Registrable Securities and take any actions necessary to promote,
facilitate or effectuate such sale.

                  (o) Best Efforts. Otherwise use its best efforts to take all
steps necessary to effect the registration of the Registrable Securities.

         6. Obligations of the Holders. In connection with the registration of
the Registrable Securities, the Holders shall have the following obligations:

                  (a) It shall be a condition precedent to the obligations of
the Company to complete the registration pursuant to this Agreement with respect
to the Registrable Securities of a particular Holder that such Holder shall
furnish to the Company such information regarding itself, the Registrable
Securities held by it and the intended method of disposition of the Registrable
Securities held by it as shall be reasonably required to effect the registration
of such Registrable Securities and shall execute such documents in connection
with such registration as the Company may reasonably request. At least five (5)
Business Days prior to the first anticipated filing date of the Registration
Statement, the Company shall notify each Holder of the information the Company
requires from each such Holder.

                  (b) Each Holder, by such Holder's acceptance of the
Registrable Securities, agrees to cooperate with the Company as reasonably
requested by the Company in connection with the preparation and filing of the
Registration Statement hereunder, unless such Holder has notified the Company in
writing of such Holder's election to exclude all of such Holder's Registrable
Securities from the Registration Statement.

                  (c) In the event Holders holding a majority in interest of the
Registrable Securities being offered determine to engage the services of an
underwriter, each Holder agrees to enter into and perform such Holder's
obligations under an underwriting agreement, in usual and customary form,
including, without limitation, customary indemnification and contribution
obligations, with the managing underwriter of such offering and take such other
actions as are reasonably required in order to expedite or facilitate the
disposition of the Registrable Securities, unless such Holder has notified the
Company in writing of such Holder's election not to participate in such
underwritten distribution.

                  (d) Each Holder agrees that, upon receipt of any notice from
the Company of the happening of any event of the kind described in Sections 5(f)
or 5(g), such Holder will immediately discontinue disposition of Registrable
Securities pursuant to the Registration Statement covering such Registrable
Securities until such Holder's receipt of the copies of the supplemented or
amended prospectus contemplated by Sections 5(f) or 5(g) and, if so directed

                                        8

<PAGE>

by the Company, such Holder shall deliver to the Company (at the expense of the
Company) or destroy (and deliver to the Company a certificate of destruction)
all copies in such Holder's possession, of the prospectus covering such
Registrable Securities current at the time of receipt of such notice.

                  (e) No Holder may participate in any underwritten distribution
hereunder unless such Holder (i) agrees to sell such Holder's Registrable
Securities on the basis provided in any underwriting arrangements in usual and
customary form entered into by the Company, (ii) completes and executes all
questionnaires, powers of attorney, indemnities, underwriting agreements and
other documents reasonably required under the terms of such underwriting
arrangements, and (iii) agrees to pay its pro rata share of all underwriting
discounts and commissions and any expenses in excess of those payable by the
Company pursuant to Section 5 below.

                  (f) Each Holder agrees that all resales of Registrable
Securities that are covered by an effective Registration Statement shall be made
only in compliance with applicable provisions of the Securities Act and
applicable state law, including without limitation Regulation M under the
Securities Act.

                                        9

<PAGE>

         7.       Registration Expenses

                           All fees and expenses incident to the performance of
or compliance with this Agreement by the Company shall be borne by the Company,
whether or not pursuant to an Underwritten Offering and whether or not the
Registration Statement is filed or becomes effective and whether or not any
Registrable Securities are sold pursuant to the Registration Statement. The fees
and expenses referred to in the foregoing sentence shall include, without
limitation, (i) all registration and filing fees (including, without limitation,
reasonable fees and expenses (A) with respect to filings required to be made
with the securities exchange or market on which Registrable Securities are
required hereunder to be listed or quoted and (B) in compliance with state
securities or Blue Sky laws (including, without limitation, fees and
disbursements of counsel for the Holders in connection with Blue Sky
qualifications of the Registrable Securities and determination of the
eligibility of the Registrable Securities for investment under the laws of such
jurisdictions as the managing underwriters, if any, or the Holders of a majority
of Registrable Securities may designate)), (ii) printing expenses (including,
without limitation, expenses of printing certificates for Registrable Securities
and of printing prospectuses if the printing of prospectuses is requested by the
managing underwriters, if any, or by the Holders of a majority of the
Registrable Securities included in the Registration Statement), (iii) messenger,
telephone and delivery expenses, (iv) fees and disbursements of counsel for the
Company and one (1) Special Counsel for the Holders (not to exceed $10,000 with
respect to any Demand Registration and $5,000 with respect to any "piggy-back"
registration, (v) Securities Act liability insurance, if the Company so desires
such insurance and (vi) reasonable fees and expenses of all other Persons
retained by the Company in connection with the consummation of the transactions
contemplated by this Agreement. In addition, the Company shall be responsible
for all of its internal expenses incurred in connection with the consummation of
the transactions contemplated by this Agreement (including, without limitation,
all salaries and expenses of its officers and employees performing legal or
accounting duties), the expense of any annual audit, and the fees and expenses
incurred in connection with the listing of the Registrable Securities on any
securities exchange as required hereunder.

         8.       Indemnification

                  (a) Indemnification by the Company. The Company shall,
notwithstanding any termination of this Agreement, indemnify and hold harmless
each Holder, the officers, directors, agents (including any underwriters
retained by such Holder in connection with the offer and sale of Registrable
Securities), investment advisors and employees of each of them, each Person who
controls any such Holder (within the meaning of Section 15 of the Securities Act
or Section 20 of the Exchange Act) and the officers, directors, agents and
employees of each such controlling Person, to the fullest extent permitted by
applicable law, from and against any and all joint or several losses, claims,
damages, liabilities, costs (including, without limitation, costs of preparation
and attorneys' fees) and expenses (collectively, together with actions,
proceedings or inquiries by any regulatory or self-regulatory organization,
whether commenced or threatened, "Losses"), as incurred, arising out of or
relating to (i) any untrue or alleged untrue statement of a material fact
contained in the Registration Statement, any Prospectus or any form of
prospectus or in any amendment or supplement thereto or in any preliminary
Prospectus, or

                                       10

<PAGE>

arising out of or relating to any omission or alleged omission of a material
fact required to be stated therein or necessary to make the statements therein
(in the case of any Prospectus or form of prospectus or supplement thereto, in
light of the circumstances under which they were made) not misleading, except to
the extent, but only to the extent, that such untrue statements or omissions are
based solely upon and in conformity with information regarding such Holder
furnished in writing to the Company by such Holder expressly for use therein,
which information was reasonably relied on by the Company for use therein or to
the extent that such information relates to such Holder or such Holder's
proposed method of distribution of Registrable Securities and was reviewed and
expressly approved in writing by such Holder expressly for use in the
Registration Statement, such Prospectus or such form of prospectus or in any
amendment or supplement thereto (provided that the Company amended any
disclosure with respect to the method of distribution upon written notice from
the Holders that such section of the Prospectus should be revised in any way) or
(ii) any violation or alleged violation by the Company of the Securities Act,
the Exchange Act, any other law, including, without limitation, any state
securities law, or any rule or regulation thereunder relating to the offer or
sale of Registrable Securities. The Company shall not, however, be liable for
any Losses to any Holder with respect to any untrue or alleged untrue statement
of material fact or omission or alleged omission of material fact if such
statement or omission was made in a preliminary Prospectus and such Holder did
not receive a copy of the final Prospectus (or any amendment or supplement
thereto) at or prior to the confirmation of the sale of the Registrable
Securities in any case where such delivery is required by the Securities Act and
the untrue or alleged untrue statement of material fact or omission or alleged
omission of material fact contained in such preliminary Prospectus was corrected
in the final Prospectus (or any amendment or supplement thereto), unless the
failure to deliver such final Prospectus (as amended or supplemented) was a
result of noncompliance by the Company with Section 5(c) of this Agreement. The
Company shall notify the Holders promptly of the institution, threat or
assertion of any Proceeding of which the Company is aware in connection with the
transactions contemplated by this Agreement.

                  (b) Indemnification by Holders. Each Holder shall, severally
and not jointly, indemnify and hold harmless the Company, the directors,
officers, agents and employees, each Person who controls the Company (within the
meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act),
and the directors, officers, agents or employees of such controlling Persons, to
the fullest extent permitted by applicable law, from and against all Losses, as
incurred, arising solely out of or based solely upon any untrue statement of a
material fact contained in the Registration Statement, any Prospectus, or any
form of prospectus, or arising solely out of or based solely upon any omission
of a material fact required to be stated therein or necessary to make the
statements therein not misleading to the extent, but only to the extent, that
such untrue statement or omission is contained in any information so furnished
in writing by such Holder to the Company specifically for inclusion in the
Registration Statement or such Prospectus and that such information was
reasonably relied upon by the Company for use in the Registration Statement,
such Prospectus or such form of prospectus or to the extent that such
information relates to such Holder or such Holder's proposed method of
distribution of Registrable Securities and was reviewed and expressly approved
in writing by such Holder expressly for use in the Registration Statement, such
Prospectus or such form of prospectus; provided, however, that the indemnity
agreement contained in this Section 7(b) shall not apply to amounts paid in
settlement of any Losses if such settlement is effected without the prior
written

                                       11

<PAGE>

consent of such Holder. In no event shall the liability of any selling Holder
hereunder be greater in amount than the dollar amount of the net proceeds
received by such Holder upon the sale of the Registrable Securities giving rise
to such indemnification obligation.

                  (c) Conduct of Indemnification Proceedings. If any Proceeding
shall be brought or asserted against any Person entitled to indemnity hereunder
(an "Indemnified Party"), such Indemnified Party promptly shall notify the
Person from whom indemnity is sought (the "Indemnifying Party") in writing, and
the Indemnifying Party shall assume the defense thereof, including the
employment of counsel reasonably satisfactory to the Indemnified Party and the
payment of all fees and expenses incurred in connection with defense thereof;
provided, however, that the failure of any Indemnified Party to give such notice
shall not relieve the Indemnifying Party of its obligations or liabilities
pursuant to this Agreement, except (and only) to the extent that it shall be
finally determined by a court of competent jurisdiction (which determination is
not subject to appeal or further review) that such failure shall have
proximately and materially adversely prejudiced the Indemnifying Party.

                  An Indemnified Party shall have the right to employ separate
counsel in any such Proceeding and to participate in the defense thereof, but
the fees and expenses of such counsel shall be at the expense of such
Indemnified Party or Parties unless: (i) the Indemnifying Party has agreed in
writing to pay such fees and expenses, or (ii) the Indemnifying Party shall have
failed promptly to assume the defense of such Proceeding and to employ counsel
reasonably satisfactory to such Indemnified Party in any such Proceeding, or
(iii) the named parties to any such Proceeding (including any impleaded parties)
include both such Indemnified Party and the Indemnifying Party, and such
Indemnified Party shall have been advised by counsel that a conflict of interest
is likely to exist if the same counsel were to represent such Indemnified Party
and the Indemnifying Party (in which case, if such Indemnified Party notifies
the Indemnifying Party in writing that it elects to employ separate counsel at
the expense of the Indemnifying Party, the Indemnifying Party shall not have the
right to assume the defense thereof and such counsel shall be at the reasonable
expense of the Indemnifying Party). The Indemnifying Party shall not be liable
for any settlement of any such Proceeding effected without its written consent,
which consent shall not be unreasonably withheld. No Indemnifying Party shall,
without the prior written consent of the Indemnified Party, effect any
settlement of any pending Proceeding in respect of which any Indemnified Party
is a party, unless such settlement includes an unconditional release of such
Indemnified Party from all liability on claims that are the subject matter of
such Proceeding.

                  All fees and expenses of the Indemnified Party (including
reasonable fees and expenses to the extent incurred in connection with
investigating or preparing to defend such Proceeding in a manner not
inconsistent with this Section) shall be paid to the Indemnified Party, as
incurred, within ten (10) Business Days of written notice thereof to the
Indemnifying Party, which notice shall be delivered no more frequently than on a
monthly basis (regardless of whether it is ultimately determined that an
Indemnified Party is not entitled to indemnification hereunder; provided, that
the Indemnifying Party may require such Indemnified Party to undertake to
reimburse all such fees and expenses to the extent it is finally judicially
determined that such Indemnified Party is not entitled to indemnification
hereunder).

                                       12

<PAGE>

                  (d) Contribution. If a claim for indemnification under Section
7(a) or 7(b) is unavailable to an Indemnified Party because of a failure or
refusal of a court of competent jurisdiction to enforce such indemnification in
accordance with its terms (by reason of public policy or otherwise), then each
Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall
contribute to the amount paid or payable by such Indemnified Party as a result
of such Losses, in such proportion as is appropriate to reflect the relative
fault of the Indemnifying Party and Indemnified Party in connection with the
actions, statements or omissions that resulted in such Losses as well as any
other relevant equitable considerations. The relative fault of such Indemnifying
Party and Indemnified Party shall be determined by reference to, among other
things, whether any action in question, including any untrue or alleged untrue
statement of a material fact or omission or alleged omission of a material fact,
has been taken or made by, or relates to information supplied by, such
Indemnifying Party or Indemnified Party, and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
action, statement or omission. The amount paid or payable by a party as a result
of any Losses shall be deemed to include, subject to the limitations set forth
in Section 7(c), any reasonable attorneys' or other reasonable fees or expenses
incurred by such party in connection with any Proceeding to the extent such
party would have been indemnified for such fees or expenses if the
indemnification provided for in this Section was available to such party in
accordance with its terms. In no event shall any selling Holder be required to
contribute an amount under this Section 7(d) in excess of the net proceeds
received by such Holder upon sale of the Registrable Securities pursuant to the
Registration Statement giving rise to such contribution obligation.

                  The parties hereto agree that it would not be just and
equitable if contribution pursuant to this Section 7(d) were determined by pro
rata allocation or by any other method of allocation that does not take into
account the equitable considerations referred to in the immediately preceding
paragraph. No Person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to contribution from
any Person who was not guilty of such fraudulent misrepresentation.

                  The indemnity and contribution agreements contained in this
Section are in addition to any liability that the Indemnifying Parties may have
to the Indemnified Parties.

                  (a) Remedies. In the event of a breach by the Company or by a
Holder of any of their obligations under this Agreement, each Holder or the
Company, as the case may be, in addition to being entitled to exercise all
rights granted by law and under this Agreement, including recovery of damages,
will be entitled to specific performance of its rights under this Agreement. The
Company and each Holder agree that monetary damages would not provide adequate
compensation for any losses incurred by reason of a breach by it of any of the
provisions of this Agreement and hereby further agrees that, in the event of any
action for specific performance in respect of such breach, it shall waive the
defense that a remedy at law would be adequate.

                                       13
<PAGE>

                  (b) Amendments and Waivers. The provisions of this Agreement,
including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given, unless the same shall be in writing and signed by the Company
and the Majority Holders; provided, however, that for the purposes of this
sentence, Registrable Securities that are owned, directly or indirectly, by the
Company, or an Affiliate of the Company are not deemed outstanding.
Notwithstanding the foregoing, a waiver or consent to depart from the provisions
hereof with respect to a matter that relates exclusively to the rights of
Holders and that does not directly or indirectly affect the rights of other
Holders may be given by the Majority Holders to which such waiver or consent
relates. Upon effectiveness of each such amendment or waiver, the Company shall
promptly give written notice thereof to the Holders who have not previously
consented thereto in writing.

                  (c) Notices. Any notice or other communication required or
permitted to be given hereunder shall be in writing and shall be deemed to have
been received (a) upon hand delivery (receipt acknowledged) or delivery by telex
(with correct answer back received), telecopy or facsimile (with transmission
confirmation report) at the address or number designated below (if received by
5:00 p.m. New York City time where such notice is to be received), or the first
Business Day following such delivery (if received after 5:00 p.m. New York City
time where such notice is to be received) or (b) on the first Business Day
following the date of mailing by a nationally recognized overnight courier
service, fully prepaid, addressed to such address, or upon actual receipt of
such mailing, whichever shall first occur. The addresses for such communications
are (i) if to the Company to Net Value Holdings, Inc., Two Penn Center Plaza,
Suite 605, Philadelphia, PA 19102 Attn: Mr. Andrew Panzo, President & CEO,
facsimile no.: (215) 564-3133, with copies to Klehr, Harrison, Harvey, Branzburg
& Ellers, 260 S. Broad Street, Philadelphia, PA 19102-5003, Attn: Lawrence D.
Rovin, Esq., facsimile no.: (215) 568-6603 and (ii) if to any Holder to the
address set forth on Schedule I hereto with copies to those specified on the
signature pages hereto or such other address as may be designated in writing
hereafter, in the same manner, by such Person.

                  (d) Successors and Assigns. This Agreement shall inure to the
benefit of and be binding upon the successors and permitted assigns of each of
the parties and shall inure to the benefit of each Holder. The Company may not
assign its rights or obligations hereunder without the prior written consent of
each Holder. Each Holder may assign its rights hereunder in the manner and to
the Persons as permitted under the Purchase Agreement. In addition, the rights
of each Holder hereunder, including the right to have the Company register for
resale Registrable Securities in accordance with the terms of this Agreement,
shall be automatically assignable by each Holder if: (i) the Holder agrees in
writing with the transferee or assignee to assign such rights, and a copy of
such agreement is furnished to the Company within a reasonable time after such
assignment, (ii) the Company is, within a reasonable time after such transfer or
assignment, furnished with written notice of (a) the name and address of such
transferee or assignee, and (b) the securities with respect to which such
registration rights are being transferred or assigned, (iii) following such
transfer or assignment the further disposition of such securities by the
transferee or assignees is restricted under the Securities Act and applicable
state securities laws, and (iv) at or before the time the Company receives the
written notice contemplated by clause (ii) of this Section, the transferee or
assignee agrees in writing with the Company to be bound by all of the

                                       14

<PAGE>

provisions of this Agreement. The rights to assignment shall apply to the
Holders (and to subsequent) successors and assigns.

                  (e) Counterparts. This Agreement may be executed in any number
of counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
Agreement. In the event that any signature is delivered by facsimile
transmission, such signature shall create a valid and binding obligation of the
party executing (or on whose behalf such signature is executed) the same with
the same force and effect as if such facsimile signature were the original
thereof.

                  (f) Governing Law. All questions concerning the construction,
validity, enforcement and interpretation of this Agreement shall be governed by
and construed in accordance with the laws of the Commonwealth of Massachusetts
applicable to agreements entered into and to be performed wholly within such
state.

                  (g) Cumulative Remedies. The remedies provided herein are
cumulative and not exclusive of any remedies provided by law.

                  (h) Severability. If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction to be
invalid, illegal, void or unenforceable, the remainder of the terms, provisions,
covenants and restrictions set forth herein shall remain in full force and
effect and shall in no way be affected, impaired or invalidated, and the parties
hereto shall use their reasonable efforts to find and employ an alternative
means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and
declared to be the intention of the parties that they would have executed the
remaining terms, provisions, covenants and restrictions without including any of
such that may be hereafter declared invalid, illegal, void or unenforceable.

                  (i) Headings. The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

                  (j) Shares Held by The Company and its Affiliates. Whenever
the consent or approval of Holders of a specified percentage of Registrable
Securities is required hereunder, Registrable Securities held by the Company or
its Affiliates (other than any Holder or transferees or successors or assigns
thereof if such Holder is deemed to be an Affiliate solely by reason of its
holdings of such Registrable Securities) shall not be counted in determining
whether such consent or approval was given by the Holders of such required
percentage.

                                       15

<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Registration Rights
Agreement as of the date first written above.

                                NET VALUE HOLDINGS, INC.

                                By:  /s/ Andrew P. Panzo
                                     -----------------------------------
                                     Name: Andrew P. Panzo
                                     Title: Chief Executive Officer

                                THE ALTAR ROCK FUND, L.P.

                                By:      Tudor Investment Corporation,
                                         as General Partner

                                By:  /s/ William T. Flaherty
                                     -----------------------------------
                                     Name: William T. Flaherty
                                     Title: Vice President

                                RAPTOR GLOBAL PORTFOLIO, LTD.

                                By:      Tudor Investment Corporation,
                                         as Investment Advisor

                                By:  /s/ William T. Flaherty
                                     -----------------------------------
                                     Name: William T. Flaherty
                                     Title: Vice-President

                                BROWN SIMPSON STRATEGIC GROWTH FUND,
                                LTD.

                                By:  Brown Simpson Asset Management, LLC

                                By:  /s/ Peter D. Greene
                                     -----------------------------------
                                     Name: Peter D. Greene
                                     Title: Managing Principal

<PAGE>

                                BROWN SIMPSON STRATEGIC GROWTH FUND,
                                L.P.

                                By:  Brown Simpson Capital, LLC
                                     its general partner

                                By: /s/ Peter D. Greene
                                     -----------------------------------
                                Name: Peter D. Greene
                                Title: Managing Principal

<PAGE>

                                   SCHEDULE I

Purchasers:
----------

THE ALTAR ROCK FUND, L.P.
40 Rowes Wharf, 2nd floor
Boston, MA 02110
Attention:  Eric Olander
Facsimile: (617) 737-0993

RAPTOR GLOBAL PORTFOLIO, LTD.
40 Rowes Wharf, 2nd floor
Boston, MA 02110
Attention:  Eric Olander
Facsimile: (617) 737-0993

BROWN SIMPSON STRATEGIC GROWTH FUND, L.P.
152 West 57th Street, 40th Floor
New York, New York 10019
Attention:  Peter D. Greene
Facsimile: (212) 247-1329

BROWN SIMPSON STRATEGIC GROWTH FUND, LTD.
152 West 57th Street, 40th Floor
New York, New York 10019
Attention:  Peter D. Greene
Facsimile: (212) 247-1329

<PAGE>
                                                                     EXHIBIT A

                         FORM OF NOTICE OF EFFECTIVENESS
                            OF REGISTRATION STATEMENT

[TRANSFER AGENT]
Attn.:

                  Re:      Net Value Holdings, Inc.

Ladies and Gentlemen:

         We are counsel to Net Value Holdings, Inc., a corporation organized
under the laws of Delaware (the "Company"), and have represented the Company in
connection with that certain Securities Purchase Agreement (the "Purchase
Agreement") entered into by and among the Company and the buyers named therein
(collectively, the "Holders") pursuant to which the Company was required to
issue to the Holders, under certain conditions, securities (the "Securities")
convertible into shares of the Company's common stock, par value $0.01 per share
(the "Common Stock"). Pursuant to the Purchase Agreement, the Company also has
entered into a Registration Rights Agreement with the Holders (the "Registration
Rights Agreement") pursuant to which the Company agreed, among other things, to
register the Registrable Securities (as defined in the Registration Rights
Agreement) under the Securities Act of 1933, as amended (the "1933 Act"). In
connection with the Company's obligations under the Registration Rights
Agreement, on _______________, 2000, the Company filed a Registration Statement
on Form S-3 (File No. _____________) (the "Registration Statement") with the
Securities and Exchange Commission (the "SEC") relating to the Registrable
Securities which names each of the Holders as a selling stockholder thereunder.

         In connection with the foregoing, we advise you that a member of the
SEC's staff has advised us by telephone that the SEC has entered an order
declaring the Registration Statement effective under the 1933 Act at [ENTER TIME
OF EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS] and we have no knowledge,
after telephonic inquiry of a member of the SEC's staff, that any stop order
suspending its effectiveness has been issued or that any proceedings for that
purpose are pending before, or threatened by, the SEC and the Registrable
Securities are available for resale under the 1933 Act pursuant to the
Registration Statement.

                                                             Very truly yours,
                                                             [ISSUER'S COUNSEL]

cc:      [LIST NAMES OF HOLDERS]

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