Document:

JVWEB, INC.
                      2000 NON-QUALIFIED STOCK OPTION PLAN

1.   NAME AND PURPOSES OF THE PLAN

         (a)      The plan set forth herein shall be known as "JVWeb,  Inc. 2000
Non-Qualified  Stock Option Plan" (the "Plan").

         (b)      The purposes of the Plan are to:

                  (i)      Encourage  selected  employees,  directors and
                           consultants to improve operations   and   increase
                           profits  of  JVWeb,   Inc.,  a  Delaware
                           corporation (the "Company");

                  (ii)     Encourage selected  employees,  directors and
                           consultants to accept or continue  employment or
                           association with the Company or its Affiliates
                           (as defined below); and

                  (iii)    Increase   the   interest  of   selected   employees,
                           directors and  consultants  in the Company's  welfare
                           through  participation  in the growth in value of the
                           common stock of the Company (the "Common Stock").

         (c) The  options  granted  pursuant  to this Plan are not  intended  to
qualify as  "incentive  stock  options"  under  Section  422(b) of the  Internal
Revenue Code of 1986, as amended (the "Code"),  and the  provisions of this Plan
need not be construed in a manner  consistent with the requirements of that Code
section.

2.   ELIGIBLE PERSONS AND CERTAIN DEFINITIONS

         Any consultant,  non-employee  director,  or full-time  employee of the
Company or of any Affiliate selected by the Administrator (as defined herein) in
its sole discretion is eligible to receive a grant of an option pursuant to this
Plan (an "Option").  The term  "Affiliate" as used in the Plan means a parent or
subsidiary  corporation  as  defined  in the  applicable  provisions  (currently
Sections 424(e) and (f), respectively) of the Code. The term "employee" includes
an officer or director who is an employee of the Company.  The term "consultant"
includes  persons employed by, or otherwise  affiliated with, a consultant.  The
term  "Optionee"  shall  refer to a person in whose  favor an Option is  granted
pursuant to this Plan. The term  "Acquired  Shares" shall refer to the shares of
Common Stock acquired by an Optionee pursuant to an exercise of an Option.

3.   STOCK SUBJECT TO THIS PLAN

         The total  number of shares of Common  Stock  that may be issued  under
Options  granted  pursuant  to this Plan shall not exceed  5.0  million.  Shares
covered by any Option that expires  unexercised shall become available again for
grants under the Plan.

<PAGE>

4.   ADMINISTRATION

         (a) This Plan shall be  administered  by the Board of  Directors of the
Company (the  "Board") or by a committee of at least two Board  members to which
administration  of the Plan,  or of part of the Plan,  is  delegated  (in either
case, the "Administrator").

         (b) Subject to the other  provisions  of this Plan,  the  Administrator
shall have the  authority,  in its  discretion:  (i) to grant  Options;  (ii) to
determine  the Fair  Market  Value of the  Common  Stock  subject  to Options in
accordance  with Section 6.11 hereof;  (iii) to determine the exercise  price of
Options granted; (iv) to determine the persons to whom, and the time or times at
which,  Options  shall be  granted,  and the  number of shares  subject  to each
Option; (v) to interpret this Plan; (vi) to prescribe,  amend, and rescind rules
and  regulations  relating  to this  Plan;  (vii) to  determine  the  terms  and
provisions of each Option granted  (which need not be identical),  including but
not limited to, the time or times at which Options shall be exercisable;  (viii)
with the consent of the Optionee,  to modify or amend any Option;  (ix) to defer
(with the consent of the  Optionee)  the  exercise  date of any  Option;  (x) to
authorize  any  person  to  execute  on  behalf of the  Company  any  instrument
evidencing  the grant of an  Option;  and (xi) to make all other  determinations
deemed  necessary  or  advisable  for  the  administration  of  this  Plan.  The
Administrator  may  delegate  nondiscretionary  administrative  duties  to  such
employees of the Company as it deems proper.

         (c)      All  questions  of  interpretation,  implementation,  and
application  of  this  Plan  shall  be determined by the Administrator.  Such
determinations shall be final and binding on all persons.

         (d) With  respect  to persons  subject to Section 16 of the  Securities
Exchange Act of 1934,  as amended (the  "Exchange  Act"),  if any,  transactions
under this Plan are intended to comply with the  applicable  conditions  of Rule
16b-3,  or any successor rule thereto.  To the extent any provision of this Plan
or action by the  Administrator  fails to so comply, it shall be deemed null and
void, to the extent permitted by law and deemed advisable by the  Administrator.
Notwithstanding  the above, it shall be the responsibility of such persons,  not
of the Company or the Administrator,  to comply with the requirements of Section
16 of the Exchange Act; and neither the Company nor the  Administrator  shall be
liable if this Plan or any transaction  under this Plan fails to comply with the
applicable  conditions  of Rule 16b-3 or any successor  rule thereto,  or if any
such person incurs any liability under Section 16 of the Exchange Act.

5.   GRANTING OF OPTIONS; OPTION AGREEMENT

         (a) No Options  shall be  granted  under this Plan after ten years from
the date of adoption of this Plan by the Board.

         (b) Each Option shall be evidenced by a written stock option  agreement
(an "Option  Agreement"),  in form satisfactory to the Company,  executed by the
Company and the person to whom such Option is granted;  provided,  however, that
the failure by the Company,  the Optionee,  or both to execute such an agreement
shall not  invalidate  the granting of an Option,  although the exercise of each
Option shall be subject to Section 6.3.

         (c) The  Administrator may approve the grant of Options under this Plan
to persons who are expected to become employees, directors or consultants of the
Company,  but  are  not  employees,  directors  or  consultants  at the  date of
approval.

6.   TERMS AND CONDITIONS OF OPTIONS

         Each Option  granted  under this Plan shall be subject to the following
terms and conditions:

         6.1 Changes in Capital Structure. Subject to Section 6.2, if the Common
Stock is  changed  by  reason  of a stock  split,  reverse  stock  split,  stock
dividend,  or  recapitalization,  combination or  reclassification,  appropriate
adjustments  shall be made by the  Administrator  in (a) the number and class of
shares of Common Stock  subject to this Plan and each Option  outstanding  under
this Plan,  and (b) the exercise  price of each  outstanding  Option;  provided,
however,  that the Company shall not be required to issue fractional shares as a
result  of any such  adjustments.  Each  such  adjustment  shall be  subject  to
approval by the Administrator in its sole discretion.

         6.2      Corporate Transactions.

         (a) In the event of (i) a dissolution  or  liquidation  of the Company,
(ii) a  merger  or  consolidation  in which  the  Company  is not the  surviving
corporation   (other  than  a  merger  or  consolidation   with  a  wholly-owned
subsidiary,  a reincorporation  of the Company in a different  jurisdiction,  or
other transaction in which there is no substantial change in the shareholders of
the Company or their relative stock holdings and the Options  granted under this
Plan  are  assumed,   converted  or  replaced  by  the  successor  or  acquiring
corporation, which assumption,  conversion or replacement will be binding on all
Optionees), (iii) a merger in which the Company is the surviving corporation but
after which the  shareholders  of the Company  immediately  prior to such merger
(other than any  shareholder  which merges with the Company in such  merger,  or
which owns or controls  another  corporation  which merges,  with the Company in
such merger) cease to own their shares or other equity interests in the Company,
or (iv) the sale of all or substantially  all of the assets of the Company,  any
or all  outstanding  Options  may  be  assumed,  converted  or  replaced  by the
successor or acquiring  corporation (if any),  which  assumption,  conversion or
replacement will be binding on all Optionees. In the alternative,  the successor
or  acquiring   corporation  may  substitute   equivalent   options  or  provide
substantially similar consideration to Optionees as was provided to shareholders
(after  taking  into  account  the  existing  provisions  of the  Options).  The
successor  or  acquiring  corporation  may also issue,  in place of  outstanding
Acquired  Shares,  substantially  similar  shares or other  property  subject to
repurchase  restrictions  and other provisions no less favorable to the Optionee
than  those  which  applied to the  Acquired  Shares  immediately  prior to such
transaction  described in this Section  6.2(a).  In the event such  successor or
acquiring  corporation  (if any)  does not  assume  or  substitute  Options,  as
provided above, pursuant to a transaction described in this Section 6.2(a), then
notwithstanding any other provision in this Plan to the contrary, the vesting of
such Options will  accelerate  and the Options will become  exercisable  in full
prior to the  consummation of such event at such times and on such conditions as
the Administrator determines, and if such Options are not exercised prior to the
consummation  of the  corporate  transaction,  they  shall  terminate  upon  the
consummation of such corporate transaction.

         (b)  Subject  to any  greater  rights  granted to  Optionees  under the
foregoing  provisions of this Section 6.2, in the event of the occurrence of any
transaction  described in Section 6.2(a) hereof, any outstanding Options will be
treated  as  provided   in  the   applicable   agreement   or  plan  of  merger,
consolidation, dissolution, liquidation or sale of assets.

         (c) The  Company,  from  time to time,  also may  substitute  or assume
outstanding  options granted by another  company,  whether in connection with an
acquisition of such other company or otherwise, by either (i) granting an Option
under this Plan in substitution of such other company's option, or (ii) assuming
such  option  as if it had been  granted  under  this  Plan if the terms of such
assumed  option  could be applied  to an Option  granted  under this Plan.  Such
substitution  or assumption will be permissible if the holder of the substituted
or assumed  option  would have been  eligible to be granted an Option under this
Plan if the other  company had applied the rules of this Plan to such grant.  In
the event the Company  assumes an option granted by another  company,  the terms
and  conditions of such Option will remain  unchanged  (except that the exercise
price and the number and nature of shares  issuable  upon  exercise  of any such
Option will be adjusted  appropriately  pursuant to Section 424(a) of the Code -
THE PRECEDING LANGUAGE TO BE CONFIRMED BY JOHN MALONE). In the event the Company
elects to grant a new Option rather than assuming an existing  option,  such new
Option may be granted with a similarly adjusted exercise price.

         6.3 Time of Option  Exercise.  Subject to Section  5,  Options  granted
under this Plan shall be exercisable (a) immediately as of the effective date of
the Option  Agreement  granting the Option,  or (b) in accordance with a vesting
schedule  attached to the Option  Agreement  and signed by  Optionee;  provided,
however,  that the right to exercise an Option must vest at the rate of at least
20% per year over five years from the date the Option was granted.  In any case,
no Option shall be exercisable until an Option Agreement in form satisfactory to
the Company is executed by the Company and the Optionee.

         6.4      Option Grant Date.  Except in the case of advance  approvals
described in Section 5(c), the date of grant of an Option under this Plan shall
be the date as of which the Administrator approves the grant.

         6.5  Nonassignability  of Option  Rights.  No Option granted under this
Plan shall be assignable  or otherwise  transferable  by the Optionee  except by
will  or by the  laws  of  descent  and  distribution.  During  the  life of the
Optionee, an Option shall be exercisable only by the Optionee.

         6.6 Payment.  Except as provided below, payment in full, in cash, shall
be made for all Common Stock purchased at the time written notice of exercise of
an Option is given to the Company,  and proceeds of any payment shall constitute
general funds of the Company. At the time an Option is granted or exercised, the
Administrator,  in the exercise of its absolute discretion after considering any
tax or accounting  consequences,  may authorize any one or more of the following
additional methods of payment:

         (a) Acceptance of the Optionee's full recourse  promissory note for all
or part of the exercise  price,  payable on such terms and bearing such interest
rate as determined by the  Administrator  (but in no event less than the minimum
interest rate specified under the Code at which no additional  interest would be
imputed),  which  promissory  note may be either  secured or  unsecured  in such
manner as the Administrator shall approve (including,  without limitation,  by a
security interest in the Acquired Shares); and

         (b)  Delivery by the  Optionee  of Common  Stock  already  owned by the
Optionee for all or part of the exercise  price,  provided the Fair Market Value
(determined  as set forth in Section  6.11) of such Common Stock is equal on the
date of exercise to the exercise  price, or such portion thereof as the Optionee
is authorized to pay by delivery of such stock;  provided,  however,  that if an
Optionee  has  exercised  any  portion of any Option  granted by the  Company by
delivery of Common Stock, the Optionee may not, within six months following such
exercise,  exercise  any Option  granted  under this Plan by  delivery of Common
Stock without the consent of the Administrator.

         6.7      Termination.

         (a) Subject to earlier  termination  pursuant to Section 6.2 hereof and
notwithstanding  the exercise periods set forth in the related Option Agreement,
exercise of an Option will always be subject to the following:

                  (i) If an Optionee is Terminated  for any reason except death,
         Disability  or Cause,  then an Optionee  may exercise  such  Optionee's
         Options,  only to the extent that such Options are  exercisable  on the
         Termination Date and such Options must be exercised by an Optionee,  if
         at all, within three (3) months after the  Termination  Date (or within
         such  shorter  time  period,  not less than  thirty (30) days after the
         Termination  Date,  or such longer time period not  exceeding  five (5)
         years  after  the  Termination   Date  as  may  be  determined  by  the
         Administrator),  but in any event, no later than the expiration date of
         the Options.

                  (ii) If an Optionee is Terminated  because of Optionee's death
         or  Disability  (or an  Optionee  dies  within  three (3) months  after
         Optionee's  Termination other than for Cause),  then Optionee's Options
         may be exercised,  only to the extent that such Options are exercisable
         by Optionee on the  Termination  Date and must be exercised by Optionee
         (or Optionee's legal representative or authorized assignee), if at all,
         within  twelve (12) months after the  Termination  Date (or within such
         shorter time period, not less than six (6) months after the Termination
         Date, or such longer time period not exceeding five (5) years after the
         Termination Date as may be determined by the Administrator), but in any
         event no later than the expiration date of the Options.

                  (iii) If an Optionee is terminated for Cause,  then Optionee's
         Options shall expire on such  Optionee's  Termination  Date, or at such
         later  time  and  on  such   conditions   as  are   determined  by  the
         Administrator.

         (b) "Termination" or "Terminated" means, for purposes of this Plan with
respect to an Optionee,  that the Optionee has for any reason  ceased to provide
services as an employee,  officer,  director or  consultant to the Company or an
Affiliate.  An Optionee will not be deemed to have ceased to provide services in
the case of (i) sick leave,  (ii)  military  leave,  or (iii) any other leave of
absence approved by the Administrator,  provided that such leave is for a period
of not more than ninety (90) days, unless  reinstatement  upon the expiration of
such leave is  guaranteed  by contract or statute or unless  provided  otherwise
pursuant to formal  policy  adopted  from time to time by the Company and issued
and promulgated in writing.  In the case of any Optionee on (i) sick leave, (ii)
military leave or (iii) an approved leave of absence, the Administrator may make
such  provisions  respecting  suspension  of  vesting  of the  Option  while the
Optionee is on leave from the Company or an Affiliate as the  Administrator  may
deem  appropriate,  except that in no event may an Option be exercised after the
expiration  of  the  term  set  forth  in  the  related  Option  Agreement.  The
Administrator  will have sole  discretion  to determine  whether an Optionee has
ceased to provide  services and the effective date on which the Optionee  ceased
to provide services (the "Termination Date").

         (c)      "Disability"  means  a  disability,   whether  temporary  or
permanent,  partial  or  total,  as determined by the Administrator.

         (d)  "Cause"  means  Termination  because of (i) any  willful  material
violation by the Optionee of any law or regulation applicable to the business of
the Company or an Affiliate,  the Optionee's conviction for or guilty plea to, a
felony or a crime involving  moral turpitude or any willful  perpetration by the
Optionee  of a common law fraud,  (ii) the  Optionee's  commission  of an act of
personal  dishonesty  which  involves a personal  profit in connection  with the
Company or any other  entity  having a business  relationship  with the Company,
(iii) any  material  breach by the  Optionee of any  material  provision  of any
agreement or understanding  between the Company or an Affiliate and the Optionee
regarding  the terms of the  Optionee's  service  as an  employee,  director  or
consultant to the Company or an Affiliate,  including  without  limitation,  the
willful and continued failure or refusal of the Optionee to perform the material
duties  required of such Optionee as an employee,  director or consultant of the
Company or an  Affiliate,  other than as a result of having a  Disability,  or a
breach of any applicable invention  assignment and confidentiality  agreement or
similar  agreement  between the Company or an Affiliate and the  Optionee,  (iv)
Optionee's  intentional disregard of the policies of the Company or an Affiliate
so as to cause loss,  damage or injury to the property,  reputation or employees
of the Company or an  Affiliate,  or (v) any other  misconduct  by the  Optionee
which is materially  injurious to the financial condition or business reputation
of, or is otherwise materially injurious to, the Company or an Affiliate.

         6.8 Repurchase of Stock.  At the discretion of the  Administrator,  the
Company may reserve to itself and/or its  assignee(s) in the Option  Agreement a
right to repurchase Acquired Shares held by a Optionee following such Optionee's
Termination  at any time within  ninety (90) days after  Optionee's  Termination
Date (or in the case of  securities  issued upon exercise of an Option after the
Optionee's  Termination  Date,  within  ninety  (90) days after the date of such
exercise) for cash and/or  cancellation of purchase money  indebtedness,  at the
Optionee's exercise price for the Acquired Shares,  provided, that such right to
repurchase  Acquired  Shares at the exercise price shall lapse at the rate of at
least twenty  percent  (20%) per year over five (5) years from the date of grant
of the Option.

         6.9      Withholding and Employment Taxes.

         (a) Whenever shares of Common Stock are to be issued in satisfaction of
Options  granted under this Plan,  the Company may require the Optionee to remit
to the  Company  an  amount  sufficient  to  satisfy  federal,  state  and local
withholding  tax  requirements  prior  to the  delivery  of any  certificate  or
certificates  for  such  shares.   Whenever,   under  this  Plan,   payments  in
satisfaction  of Options are to be made in cash,  such payment will be net of an
amount  sufficient  to  satisfy  federal,   state,  and  local  withholding  tax
requirements.

         (b) When,  under  applicable tax laws, an Optionee incurs tax liability
in connection  with the exercise or vesting of any Option that is subject to tax
withholding and the Optionee is obligated to pay the Company the amount required
to be withheld,  the Administrator may in its sole discretion allow the Optionee
to satisfy  the  minimum  withholding  tax  obligation  by  electing to have the
Company  withhold  from the shares to be issued that  number of shares  having a
Fair Market Value  (determined in accordance  with Section 6.11 hereof) equal to
the minimum  amount  required to be  withheld,  determined  on the date that the
amount of tax to be withheld is to be  determined.  All elections by an Optionee
to have shares  withheld for this purpose  will be made in  accordance  with the
requirements  established  by  the  Administrator  and be in  writing  in a form
acceptable to the Administrator.

         6.10     Other Provisions.  Each Option granted under this Plan may
contain such other terms,  provisions, and conditions not inconsistent with this
Plan as may be determined by the Administrator.

         6.11  Determination of Value. For purposes of the Plan, the Fair Market
Value of Common Stock or other  securities of the Company shall be determined as
follows:

         (a) If the Common  Stock is listed on or  included  in any  established
stock  exchange,  national  market  system  (including  without  limitation  the
National Market System of the National  Association of Securities Dealers,  Inc.
Automated  Quotation  System),  or other  recognized  trading market  (including
without limitation the OTC Bulletin Board or the National Quotation Bureau, Inc.
pink  sheets),  its Fair Market Value shall be the closing  sales price for such
stock or the closing bid if no sales were reported,  as quoted on such exchange,
system or market (or the most  prominent  thereof)  for the date the Fair Market
Value is to be determined (or if there are no sales for such date,  then for the
last preceding business day on which there were sales).

         (b) If the Common Stock is regularly quoted by a recognized  securities
dealer but selling  prices are not reported,  its Fair Market Value shall be the
means between the high bid and low asked prices for the Common Stock on the date
the Fair Market Value is to be determined  (or if there are no quoted prices for
the date of grant, then for the last preceding  business day on which there were
quoted prices).

         (c) In the absence of an established  market for the Common Stock,  the
Fair  Market  Value   thereof   shall  be   determined  in  good  faith  by  the
Administrator,  with reference to the Company's net worth,  prospective  earning
power,  dividend-paying  capacity,  and other  relevant  factors,  including the
goodwill of the Company,  the economic  outlook in the Company's  industry,  the
Company's  position in the industry and its management,  and the values of stock
of other corporations in the same or a similar line of business.

         6.12     Option  Term.  No Option  shall be  exercisable  more than ten
years after the date of grant,  or such lesser period of time as is set forth in
the Option Agreement.

         6.13 Exercise Price. Except as otherwise provided in this Section 6.13,
the exercise price of an Option shall equal the Fair Market Value (determined in
accordance  with Section  6.11) of the Common Stock subject to the Option on the
date of grant.  Notwithstanding the preceding,  the exercise price of any Option
granted  to any  person  who owns,  directly  or by  attribution  under the Code
currently  Section 424(d),  Common Stock possessing more than ten percent of the
total  combined  voting  power of all  classes of stock of the Company or of any
Affiliate (a "Ten Percent  Stockholder")  shall in no event be less than 110% of
the Fair Market Value (determined in accordance with Section 6.11) of the Common
Stock covered by the Option at the time the Option is granted.

         6.14  Escrow;  Pledge of Shares.  To  enforce  any  restrictions  on an
Optionee's  Acquired  Shares  (including,   without  limitation,  the  right  of
repurchase  provided  for in Section  6.8),  the  Administrator  may require the
Optionee to deposit all certificates  representing the Acquired Shares, together
with  stock   powers  or  other   instruments   of  transfer   approved  by  the
Administrator,  appropriately  endorsed  in blank,  with the Company or an agent
designated by the Company to hold in escrow until such  restrictions have lapsed
or terminated,  and the Administrator may cause a legend or legends  referencing
such  restrictions  to be  placed  on  the  certificates.  Any  Optionee  who is
permitted to execute a promissory note as partial or full  consideration for the
purchase  of shares of Common  Stock  under this Plan will be required to pledge
and  deposit  with  the  Company  all or  part of the  shares  so  purchased  as
collateral to secure the payment of  Optionee's  obligation to the Company under
the promissory note;  provided,  however,  that the Administrator may require or
accept other or  additional  forms of  collateral  to secure the payment of such
obligation  and, in any event,  the Company will have full recourse  against the
Optionee under the promissory note  notwithstanding any pledge of the Optionee's
Acquired  Shares  or other  collateral.  In  connection  with any  pledge of the
Acquired  Shares,  an Optionee will be required to execute and deliver a written
pledge  agreement  in such  form as the  Administrator  will  from  time to time
approve. Acquired Shares purchased with the promissory note may be released from
the pledge on a pro rata basis as the promissory  note is paid at the discretion
of the Administrator.

7.   MANNER OF EXERCISE

         (a) An Optionee wishing to exercise an Option shall give written notice
to the  Company at its  principal  executive  office,  to the  attention  of the
officer of the Company designated by the  Administrator,  accompanied by payment
of the exercise price as provided in Section 6.6. The date the Company  receives
written notice of an exercise  hereunder  accompanied by payment of the exercise
price will be considered as the date such Option was exercised.

         (b) Promptly  after receipt of written notice of exercise of an Option,
the Company  shall,  without  stock issue or transfer  taxes to the  Optionee or
other person entitled to exercise the Option, deliver to the Optionee or (if the
Acquired Shares are to be placed into escrow) to the escrow holder,  one or more
certificates  for the  requisite  number of  Acquired  Shares.  An  Optionee  or
permitted  transferee  of  an  Optionee  shall  not  have  any  privileges  as a
shareholder  with  respect to any shares of Common  Stock  covered by the Option
until the date of issuance (as evidenced by the  appropriate  entry on the books
of the Company or a duly authorized transfer agent) of such shares.

8.   EMPLOYMENT, DIRECTOR OR CONSULTING RELATIONSHIP

         Nothing in this Plan or any Option granted  thereunder  shall interfere
with or limit in any way the right of the Company or of any of its Affiliates to
terminate any Optionee's  employment,  director or consulting arrangement at any
time,  nor confer upon any  Optionee  any right to continue in the employ of, on
the Board of, or consult with, the Company or any of its Affiliates.

9.  CONDITIONS UPON ISSUANCE OF SHARES.

         Shares of Common Stock shall not be issued  pursuant to the exercise of
an Option  unless the  exercise of such Option and the  issuance and delivery of
such shares pursuant  thereto shall comply with all relevant  provisions of law,
including, without limitation, the Securities Act of 1933, as amended.

10.  NONEXCLUSIVITY OF THE PLAN.

         The  adoption  of the Plan  shall  not be  construed  as  creating  any
limitations  on  the  power  of  the  Company  to  adopt  such  other  incentive
arrangements  as it may  deem  desirable,  including,  without  limitation,  the
granting of stock options other than under the Plan.

11.      AMENDMENT OR TERMINATION OF PLAN

         The Board may (without  the  approval of any Optionee or the  Company's
shareholders) modify or amend this Plan in any respect; provided,  however, that
no modification or amendment of this Plan shall adversely  affect any previously
granted Options without the consent of the related  Optionee.  The Board may, at
any  time or from  time to time,  suspend  or  terminate  this  Plan;  provided,
however,  that no such action  shall  adversely  affect any  previously  granted
Options without the consent of the related Optionee.

12.  EFFECTIVE DATE OF PLAN

         This Plan is effective as of August  _____,  1999;  provided,  however,
that Options may be granted and  exercised  under this Plan only after there has
been compliance with all applicable federal and state securities laws. This Plan
shall remain in effect until terminated by the Board.

<PAGE>

                                                     JVWEB, INC.
                                        2000 NON-QUALIFIED STOCK OPTION PLAN
                                               STOCK OPTION AGREEMENT
                                               OPTION NO. ___________

         This Stock Option Agreement (this "Agreement") is made and entered into
as of the Date of Grant set forth  below (the  "Date of  Grant") by and  between
JVWeb,  Inc., a Delaware  corporation  (the  "Company"),  and the Optionee named
below ("Optionee"). Capitalized terms not defined herein shall have the meanings
ascribed to them in the  Company's  2000  Non-Qualified  Stock  Option Plan (the
"Plan").

OPTIONEE:                           CARLO PELLEGRINI
SOCIAL SECURITY NUMBER:             ###-##-####
ADDRESS:                            195 HIGH AVENUE, NYACK, NY  10960
TOTAL NUMBER OF OPTION SHARES:      1,000,000
EXERCISE PRICE PER SHARE:           $0.21
DATE OF GRANT:                              November 6, 1999
FIRST VESTING DATE:                         April 1, 2000
EXPIRATION DATE [unless earlier terminated under section 3 below]: April 1, 2004

         1. GRANT OF OPTION.  The  Company  hereby  grants to Optionee an option
(the  "Option")  to purchase  the total  number of shares of Common Stock of the
Company set forth above as Total Number of Option  Shares (the  "Shares") at the
Exercise Price Per Share set forth above (the "Exercise Price"),  subject to all
of the terms and conditions of this Agreement and the Plan.

         2.       EXERCISE PERIOD.

         2.1 Exercise Period of Option.  Unless otherwise  provided on a vesting
schedule  attached  hereto and signed by  Optionee,  this Option is  immediately
exercisable. However, if vesting schedule signed by Optionee is attached hereto,
this Option shall become  exercisable in accordance with such vesting  schedule.
In all cases,  the Shares issued upon exercise of this Option will be subject to
the restrictions on transfer and Repurchase Options set forth in Section 5 and 7
below.  Provided  Optionee  continues  to provide  services to the Company or an
Affiliate,  the Shares  issuable upon exercise of this Option (as opposed to the
Option itself) will become vested and free of the repurchase option provided for
in Section 7 hereof with respect to  twenty-five  percent (25%) of the Shares on
the First Vesting Date set forth above (the "First Vesting Date") and thereafter
at the end of each  full  succeeding  month  after  the  First  Vesting  Date an
additional 2.08333% of the Shares will become vested until the shares are vested
with respect to 100% of the Shares,  provided that if application of the vesting
percentage  causes a fractional  share,  such share shall be rounded down to the
nearest whole share. Notwithstanding any provision in the Plan or this Agreement
to the contrary,  Options for Unvested Shares (as defined in Section 2.2 of this
Agreement) will not be exercisable on or after Optionee's Termination Date.

         2.2 Vesting of Options. Shares that are vested pursuant to the schedule
set  forth in  Section  2.1 are  "Vested  Shares."  Shares  that are not  vested
pursuant  to the  schedule  set  forth in  Section  2.1 are  "Unvested  Shares."
Unvested Shares may not be sold or otherwise transferred by Optionee without the
Company's prior written consent.

<PAGE>

         2.3  Expiration.  This Option shall expire on the  Expiration  Date set
forth above and must be exercised,  if at all, on or before the Expiration Date,
unless earlier terminated under Section 3 below.

         3.       TERMINATION.

         3.1  Termination  for Any Reason Except Death,  Disability or Cause. If
Optionee is Terminated for any reason,  except death,  Disability or Cause, this
Option,  to the  extent  (and  only to the  extent)  that it is  exercisable  by
Optionee on the Termination Date, may be exercised by Optionee, if at all, as to
all or some of the Vested Shares calculated as of the Termination Date, no later
than three (3) months after the Termination Date, but in any event no later than
the Expiration Date.

         3.2  Termination  Because  of  Death  or  Disability.  If  Optionee  is
Terminated  because of death or  Disability  of Optionee (or the  Optionee  dies
within three (3) months after  Termination other than for Cause) this Option, to
the extent that it is  exercisable by Optionee on the  Termination  Date, may be
exercised by Optionee (or Optionee's legal representative), if at all, as to all
or some of the Vested  Shares  calculated as of the  Termination  Date, no later
than twelve (12) months after the  Termination  Date,  but in any event no later
than the Expiration Date.

         3.3 Termination  for Cause.  If Optionee is Terminated for Cause,  then
this Option will expire on  Optionee's  Termination  Date, or at such later time
and on such conditions as are determined by the Administrator.

         3.4 Obligation to Employ.  Nothing in the Plan or this Agreement  shall
confer on Optionee any right to continue in the employ of, or other relationship
with, the Company or any Affiliate, or limit in any way the right of the Company
or any Affiliate to terminate Optionee's employment or other relationship at any
time, with or without Cause.

         4.       MANNER OF EXERCISE.

         4.1 Stock Option Exercise Agreement.  To exercise this Option, Optionee
(or in the case of exercise after  Optionee's  death or  incapacity,  Optionee's
executor,  administrator,  heir or legatee,  as the case may be) must deliver to
the Company an executed  stock option  exercise  agreement in the form  attached
hereto as Exhibit A, or in such other  form as may be  approved  by the  Company
from time to time (the "Exercise Agreement"), which shall set forth, inter alia,
Optionee's  election  to  exercise  this  Option,  the  number of  Shares  being
purchased,  any  restrictions  imposed on the  Shares  and any  representations,
warranties and agreements regarding  Optionee's  investment intent and access to
information  as may be  required  by  the  Company  to  comply  with  applicable
securities laws. If someone other than Optionee exercises this Option, then such
person must submit documentation  reasonably acceptable to the Company that such
person has the right to exercise this Option.

         4.2  Limitations on Exercise.  This Option may not be exercised  unless
such exercise is in compliance with all applicable  federal and state securities
laws,  as they are in effect on the date of  exercise.  This  Option  may not be
exercised as to fewer than one hundred (100)  Shares,  unless it is exercised as
to all Shares as to which this Option is then exercisable.

         4.3  Payment.  The  Exercise  Agreement  shall be  accompanied  by full
payment of the Exercise Price for the Shares being purchased in cash (by check),
or where  permitted by law: (a) by surrender of shares of the  Company's  Common
Stock  that:  (1) either (A) have been owned by  Optionee  for more than six (6)
months  and have  been  paid for  within  the  meaning  of Rule  144  under  the
Securities  Act of 1933 (and, if such shares were  purchased from the Company by
use of a  promissory  note,  such note has been fully paid with  respect to such
shares) or (B) were  obtained by Optionee in the open public  market and (2) are
clear of all liens, claims, encumbrances or security interests; (b) by tender of
a cash downpayment equal (at a minimum) to the aggregate par value of the Shares
being acquired and of a full recourse promissory note with an original principal
amount equal to the aggregate  Exercise Price minus the downpayment made, having
such terms as may be approved  by the  Administrator  and bearing  interest at a
rate sufficient to avoid imputation of income under Sections 483 and 1274 of the
Code.

         4.4 Tax Withholding.  Prior to the issuance of the Shares upon exercise
of this Option,  Optionee must pay or provide for any applicable federal,  state
and local withholding  obligations of the Company. If the Administrator permits,
Optionee  may  provide for payment of  withholding  taxes upon  exercise of this
Option by  requesting  that the Company  retain  Shares with a Fair Market Value
equal to the minimum amount of taxes required to be withheld.  In such case, the
Company  shall issue the net number of Shares to the Optionee by  deducting  the
Shares retained from the Shares issuable upon exercise.

         4.5  Issuance  of Shares.  Provided  that the  Exercise  Agreement  and
payment are in form and substance  satisfactory to counsel for the Company,  the
Company shall issue the Shares  registered  in the name of Optionee,  Optionee's
authorized assignee, or Optionee's legal  representative,  and shall deliver, to
the  Optionee  or (if the  Shares  are to be placed  into  escrow) to the escrow
holder,  one or more  certificates  representing the Shares with the appropriate
legends affixed thereto.

         5.  COMPLIANCE WITH LAWS AND  REGULATIONS.  The exercise of this Option
and the issuance and  transfer of Shares shall be subject to  compliance  by the
Company  and  Optionee  with all  applicable  requirements  of federal and state
securities  laws and with all applicable  requirements  of any stock exchange on
which the  Company's  Common Stock may be listed at the time of such issuance or
transfer.

         6.  NONTRANSFERABILITY OF OPTION. This Option may not be transferred in
any manner other than by will or by the laws of descent and distribution and may
be exercised during the lifetime of Optionee only by Optionee or in the event of
Optionee's  incapacity,  by Optionee's legal  representative.  The terms of this
Option  shall be binding  upon the  executors,  administrators,  successors  and
assigns of Optionee.

         7. COMPANY'S REPURCHASE OPTION FOR UNVESTED SHARES. The Company, or its
assignee,  shall have the option to repurchase  Optionee's  Unvested  Shares (as
defined in Section 2.2 of this  Agreement) on the terms and conditions set forth
in the Exercise  Agreement  (the  "Repurchase  Option for  Unvested  Shares") if
Optionee  is  Terminated  for  any  reason,  or  no  reason,  including  without
limitation Optionee's death, Disability, voluntary resignation or termination by
the Company with or without Cause.  Notwithstanding  the foregoing,  the Company
shall retain the Repurchase Option for Unvested Shares only as to that number of
Unvested  Shares  (whether or not  exercised)  that exceeds the number of shares
which remain exercisable.

         8.       TAX  CONSEQUENCES.  Set forth below is a brief  summary as of
the Effective Date of the Plan of some of the federal and state tax consequences
of exercise  of this Option and  disposition  of the Shares.  THIS SUMMARY IS
NECESSARILY  INCOMPLETE,  AND THE TAX LAWS AND  REGULATIONS  ARE  SUBJECT TO
CHANGE.  OPTIONEE  SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THE OPTION OR
DISPOSING OF THE SHARES.

         8.1 Exercise of Option. There may be a regular federal and state income
tax  liability  upon the  exercise of this Option.  Optionee  will be treated as
having received compensation income (taxable at ordinary income tax rates) equal
to the excess,  if any,  of the Fair  Market  Value of the Shares on the date of
exercise over the Exercise Price. If Optionee is a current or former employee of
the  Company,   the  Company  may  be  required  to  withhold  from   Optionee's
compensation  or  collect  from  Optionee  and  pay  to  the  applicable  taxing
authorities an amount equal to a percentage of this  compensation  income at the
time of exercise.

         8.2  Disposition of Shares.  The following tax  consequences  may apply
upon  disposition  of the Shares.  [JOHN MALONE TO GIVE TAX  TREATMENT FOR SALES
WITHIN 12 MONTHS  AFTER  EXERCISE]  If the Shares are held for more than  twelve
(12)  months  after  the date of the  transfer  of the  Shares  pursuant  to the
exercise of an Option,  any gain realized on  disposition  of the Shares will be
treated as a long-term  capital gain. The maximum  federal capital gain tax rate
is twenty  percent.  The Company may be  required  to withhold  from  Optionee's
compensation  or collect  from the  Optionee  and pay to the  applicable  taxing
authorities an amount equal to a percentage of this compensation  income.  [JOHN
MALONE TO CONFIRM PRECEDING SENTENCE]

         8.3  Section  83(b)  Election  for  Unvested  Shares.  With  respect to
Unvested Shares, which are subject to the Repurchase Option for Unvested Shares,
unless an election is filed by the Optionee  with the Internal  Revenue  Service
(and, if necessary, the proper state taxing authorities),  within 30 days of the
purchase of the Unvested  Shares,  electing  pursuant to Code Section 83(b) (and
similar  state tax  provisions,  if  applicable)  to be taxed  currently  on any
difference  between the  Exercise  Price of the  Unvested  Shares and their Fair
Market  Value on the date of  exercise,  there may be a  recognition  of taxable
income (including, where applicable,  alternative minimum taxable income) to the
Optionee,  measured  by the  excess,  if any,  of the Fair  Market  Value of the
Unvested Shares at the time they cease to be Unvested Shares,  over the Exercise
Price of the Unvested Shares.

         9.       PRIVILEGES OF STOCK  OWNERSHIP.  Optionee shall not have any
of the rights of a shareholder  with respect to any Shares until the Shares are
issued to Optionee.

         10.      INTERPRETATION.  Any dispute  regarding the  interpretation of
this Agreement shall be submitted by Optionee or the Company to the
Administrator  for review. The resolution of such a dispute by the Administrator
shall be final and binding on the Company and Optionee.

         11. ENTIRE  AGREEMENT.  The Plan is  incorporated  herein by reference.
This Agreement and the Plan  constitute the complete and exclusive  statement of
the parties  regarding its subject matter and  supersedes  all prior  proposals,
representations,  communications, and agreements of the parties, whether oral or
written regarding the grant of stock options or issuances of shares to Optionee.

         12.  NOTICES.  Any  notice  required  to be given or  delivered  to the
Company under the terms of this  Agreement  shall be in writing and addressed to
the  President of the Company at its  principal  corporate  offices.  Any notice
required to be given or delivered to Optionee  shall be in writing and addressed
to  Optionee  at the address  indicated  above or to such other  address as such
party may  designate in writing  from time to time to the  Company.  All notices
shall be deemed to have been given or delivered upon:  personal delivery;  three
(3) days after deposit in the United States mail by certified or registered mail
(return receipt  requested);  one (1) business day after deposit with any return
receipt express courier (prepaid); or one (1) business day after transmission by
facsimile, rapifax or telecopier.

         13.  SUCCESSORS  AND ASSIGNS.  The Company may assign any of its rights
under this  Agreement,  including  its  rights to  repurchase  Shares  under the
Repurchase Option. This Agreement shall be binding upon and inure to the benefit
of the successors  and assigns of the Company.  Subject to the  restrictions  on
transfer set forth  herein,  this  Agreement  shall be binding upon Optionee and
Optionee's heirs, executors, administrators,  legal representatives,  successors
and assigns.

         14. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE  WITH THE LAWS OF THE  STATE OF  TEXAS AS SUCH  LAWS ARE  APPLIED  TO
AGREEMENTS  BETWEEN TEXAS  RESIDENTS  ENTERED INTO AND TO BE PERFORMED  ENTIRELY
WITHIN TEXAS. IF ANY PROVISION OF THIS AGREEMENT IS DETERMINED BY A COURT OF LAW
TO BE ILLEGAL OR  UNENFORCEABLE,  THEN SUCH  PROVISION  WILL BE  ENFORCED TO THE
MAXIMUM EXTENT POSSIBLE AND THE OTHER PROVISIONS WILL REMAIN FULLY EFFECTIVE AND
ENFORCEABLE.

         16. ACCEPTANCE.  Optionee hereby acknowledges  receipt of a copy of the
Plan and  this  Agreement.  Optionee  has read and  understands  the  terms  and
provisions  thereof,  and  accepts  this  Option  subject  to all the  terms and
conditions of the Plan and this Agreement.  Optionee acknowledges that there may
be adverse tax  consequences  upon exercise of this Option or disposition of the
Shares and that Optionee  should consult a tax adviser prior to such exercise or
disposition.

         IN WITNESS  WHEREOF,  the  Company  has  caused  this  Agreement  to be
executed in duplicate  by its duly  authorized  representative  and Optionee has
executed this Agreement in duplicate as of the Date of Grant.

                                            OPTIONEE

By:_________________________________        ____________________________________
Carlo Pellegrini                            (signature)

                                            Name: ______________________________
                                            Greg J. Micek, President JVWEB, INC.

<PAGE>

                                                     JVWEB, INC.
                                        2000 NON-QUALIFIED STOCK OPTION PLAN
                                           STOCK OPTION EXERCISE AGREEMENT
                                                  NO._____________

         This Exercise Agreement (this "Exercise Agreement") is made and entered
into as of  ______________,  19___ (the "Effective  Date") by and between JVWeb,
Inc., a Delaware corporation (the "Company"), and the Purchaser named below (the
"Purchaser").  Capitalized  terms not  defined  herein  shall have the  meanings
ascribed to them in the  Company's  2000  Non-Qualified  Stock  Option Plan (the
"Plan").

PURCHASER:
SOCIAL SECURITY NUMBER:
ADDRESS:
TOTAL NUMBER OF SHARES:
EXERCISE PRICE PER SHARE:
TOTAL EXERCISE PRICE:
OPTION NO. AND DATE OF GRANT:

         1.       EXERCISE OF OPTION.

         1.1  Exercise.  Pursuant to the  exercise of that  certain  option (the
"Option")  granted  to  Purchaser  under the Plan and  subject  to the terms and
conditions of this  Exercise  Agreement,  Purchaser  hereby  purchases  from the
Company,  and the Company hereby sells to Purchaser,  the Total Number of Shares
set forth above (the  "Acquired  Shares") of the  Company's  Common Stock at the
Total  Exercise Price set forth above (the  "Exercise  Price").  As used in this
Exercise  Agreement,  the term "Acquired  Shares" refers to the Acquired  Shares
purchased under this Exercise Agreement and includes all securities received (a)
in replacement  of the Acquired  Shares,  (b) as a result of stock  dividends or
stock  splits  with  respect  to the  Acquired  Shares,  and (c) all  securities
received  on  account  of the  Acquired  Shares in a  merger,  recapitalization,
reorganization or similar corporate transaction.

         1.2      Title to Shares. The exact spelling of the name(s) under which
Purchaser will take title to the
Acquired              Shares              is:               ___________________
___________________________________________.  Purchaser  desires  to take  title
to the Acquired Shares as follows:

         [_]      Individual, as separate property
         [_]      Husband and wife, as community property
         [_]      Joint Tenants

         [_]      Alone or with  spouse as  trustee(s)  of the  following  trust
                  (including date):________________________________________

                  ------------------------------------------------------
         [_]      Other;            please            specify:__________________
                  ------------------------------------------------------

<PAGE>

         1.3      Payment.  Purchaser  hereby delivers payment of the Exercise
Price in the manner permitted in the Option Agreement as follows (check and
complete as appropriate):

         [_]      in cash (by  check) in the  amount of  $________________,
                  receipt  of which is acknowledged by the Company;
         [_]      by tender of a Full Recourse  Promissory Note in the principal
                  amount of  $___________________,  having  such terms as may be
                  approved  by the  Committee  and  bearing  interest  at a rate
                  sufficient to avoid  imputation  of income under  Sections 483
                  and  1274  of the  Code  and  secured  by a  Pledge  Agreement
                  herewith.

         [_]      by surrender of  ___________________  shares of the  Company's
                  Common Stock, which  shares have a Fair Market  Value equal to
                  the  Exercise  Price and:  (1) either  (A) have been owned by
                  Optionee  for more than six (6) months and have been paid for
                  within the meaning of Rule 144 under the  Securities  Act of
                  1933 (and,  if such shares were  purchased  from the Company
                  by use of a  promissory note,  such note has been fully paid
                  with respect to such  shares) or (B) were obtained by Optione0
                  in the open public  market and (2) are clear of all liens,
                  claims, encumbrances or security interests

         2.       DELIVERY.

         2.1 Deliveries by Purchaser.  Purchaser  hereby delivers to the Company
(i) this  Exercise  Agreement,  (ii) three (3) copies of a blank Stock Power and
Assignment  Separate  from Stock  Certificate  in the form of Exhibit 1 attached
hereto (the "Stock Powers"),  executed by Purchaser (and Purchaser's  spouse, if
any), (iii) if Purchaser is married,  a Consent of Spouse in the form of Exhibit
2 attached hereto (the "Spouse Consent")  executed by Purchaser's  spouse,  (iv)
the  Exercise  Price and  payment  or other  provision  for any  applicable  tax
obligations  by delivery of cash of a Secured Full Recourse  Promissory  Note in
the form of  Exhibit 3 and (v) if a Secured  Full  Recourse  Promissory  Note is
being  delivered,  a Stock Pledge Agreement in the form of Exhibit 5 executed by
Purchaser (the "Pledge Agreement").

         2.2 Deliveries by the Company.  Upon its receipt of the Exercise Price,
payment  or other  provision  for any  applicable  tax  obligations  and all the
documents to be executed and delivered by Purchaser to the Company under Section
2.1, the Company will issue a duly executed  stock  certificate  evidencing  the
Acquired Shares in the name of Purchaser,  to be placed in escrow as provided in
Section 8 to secure  payment of  Optionee's  obligation to the Company under the
promissory note and until expiration or termination of the Company's  Repurchase
Option in Section 6.

         3.       REPRESENTATIONS  AND  WARRANTIES OF PURCHASER.  Purchaser
represents and warrants to the Company that:

         3.1 Agrees to Terms of the Plan.  Purchaser  has received a copy of the
Plan and the Option  Agreement,  has read and understands the terms of the Plan,
the Option  Agreement  and this  Exercise  Agreement,  and agrees to be bound by
their terms and conditions. Purchaser acknowledges that there may be adverse tax
consequences  upon exercise of the Option or disposition of the Acquired Shares,
and that  Purchaser  should  consult a tax  adviser  prior to such  exercise  or
disposition.

         3.2 Access to Information.  Purchaser has had access to all information
regarding  the  Company  and  its  present  and  prospective  business,  assets,
liabilities  and  financial  condition  that  Purchaser   reasonably   considers
important in making the decision to purchase the Acquired Shares,  and Purchaser
has had ample  opportunity  to ask  questions of the  Company's  representatives
concerning such matters and this investment.

         3.3 Understanding of Risks. Purchaser is fully aware of: (i) the highly
speculative nature of the investment in the Acquired Shares;  (ii) the financial
hazards  involved;  (iii) the lack of liquidity  of the Acquired  Shares and the
restrictions on transferability of the Acquired Shares (e.g., that Purchaser may
not be able to sell or dispose of the Acquired  Shares or use them as collateral
for loans);  (iv) the  qualifications  and  backgrounds of the management of the
Company;  and (v) the tax  consequences  of investment  in the Acquired  Shares.
Purchaser is capable of evaluating the merits and risks of this investment,  has
the ability to protect  Purchaser's  own  interests in this  transaction  and is
financially capable of bearing a total loss of this investment.

         4.  COMPLIANCE  WITH  SECURITIES   LAWS.   Purchaser   understands  and
acknowledges that,  notwithstanding  any other provision of the Option Agreement
to the contrary,  the exercise of any rights to purchase any Shares is expressly
conditioned  upon  compliance with the Securities Act of 1933 and all applicable
state securities laws.  Purchaser agrees to cooperate with the Company to ensure
compliance with such laws.

         5.       RESTRICTIONS ON TRANSFERS.

         5.1  Restriction  on Transfer.  Purchaser  shall not transfer,  assign,
grant a lien or security interest in, pledge, hypothecate, encumber or otherwise
dispose  of any of the  Acquired  Shares  which  are  subject  to the  Company's
Repurchase Option, except as permitted by this Exercise Agreement.

         5.2  Transferee  Obligations.  Each person  (other than the Company) to
whom the Acquired Shares are transferred  with the prior express written consent
of the Company must, as a condition  precedent to the validity of such transfer,
acknowledge  in  writing  to the  Company  that  such  person  is  bound  by the
provisions of this Exercise  Agreement and that the transferred  Acquired Shares
are subject to the Company's  Repurchase  Option  granted  hereunder to the same
extent such Acquired Shares would be so subject if retained by the Purchaser.

         6. COMPANY'S REPURCHASE OPTION FOR UNVESTED SHARES. The Company, or its
assignee,  shall have the option to repurchase  Purchaser's  Unvested Shares (as
defined in Section 2.2 of the Option  Agreement) on the terms and conditions set
forth in this Section (the "Repurchase Option for Unvested Shares") if Purchaser
is Terminated (as defined in the Plan) for any reason,  or no reason,  including
without  limitation  Purchaser's  death,  Disability  (as  defined in the Plan),
voluntary  resignation  or  termination  by the Company  with or without  Cause.
Notwithstanding  the foregoing,  the Company shall retain the Repurchase  Option
for Unvested  Shares only as to that number of Unvested  Shares  (whether or not
exercised) that exceeds the number of shares which remain exercisable.

         6.1  Termination  and  Termination  Date.  In case of any dispute as to
whether  Purchaser  is  Terminated,  the  Committee  shall  have  discretion  to
determine  whether  Purchaser has been Terminated and the effective date of such
Termination (the "Termination Date").

         6.2  Exercise of  Repurchase  Option for Unvested  Shares.  At any time
within ninety (90) days after the Purchaser's  Termination Date, the Company, or
its assignee,  may elect to repurchase the Purchaser's Unvested Shares by giving
Purchaser  written  notice of exercise  of the  Repurchase  Option for  Unvested
Shares.

         6.3 Calculation of Repurchase Price for Unvested Shares. The Company or
its  assignee  shall  have the  option to  repurchase  from  Purchaser  (or from
Purchaser's  personal  representative as the case may be) the Unvested Shares at
the Purchaser's Exercise Price,  proportionately adjusted for any stock split or
similar  change in the capital  structure of the Company as set forth in Section
2.2 of the Plan.

         6.4 Payment of Repurchase Price. The repurchase price shall be payable,
at the option of the Company or its assignee, by check or by cancellation of all
or a portion of any outstanding indebtedness of Purchaser to the Company or such
assignee,  or by any  combination  thereof.  The repurchase  price shall be paid
without interest within sixty (60) days after exercise of the Repurchase  Option
for Unvested Shares.

         6.5 Right of Termination Unaffected. Nothing in this Exercise Agreement
shall be  construed to limit or otherwise  affect in any manner  whatsoever  the
right  or power of the  Company  (or any  Affiliate)  to  terminate  Purchaser's
employment or other  relationship  with Company (or the  Affiliate) at any time,
for any reason or no reason, with or without Cause.

         7. RIGHTS AS  SHAREHOLDER.  Subject to the terms and conditions of this
Exercise  Agreement,  Purchaser  will have all of the rights of a shareholder of
the Company  with  respect to the  Acquired  Shares from and after the date that
Acquired Shares are issued to Purchaser until such time as Purchaser disposes of
the  Acquired  Shares or the  Company  and/or its  assignee(s)  exercise(s)  the
Repurchase  Option.  Upon an exercise of the Repurchase  Option,  Purchaser will
have no further rights as a holder of the Acquired Shares so purchased upon such
exercise,  except  the  right to  receive  payment  for the  Acquired  Shares so
purchased in accordance  with the  provisions of this  Exercise  Agreement,  and
Purchaser  will  promptly  surrender  the stock  certificate(s)  evidencing  the
Acquired Shares so purchased to the Company for transfer or cancellation.

         8. ESCROW.  As security for  Purchaser's  faithful  performance of this
Exercise Agreement,  Purchaser agrees that all stock certificates evidencing the
Acquired  Shares,  together  with the Stock Powers  executed by Purchaser and by
Purchaser's  spouse if any (with the date and  number of  Acquired  Shares  left
blank),  will be delivered to the President of the Company or other  designee of
the  Company   ("Escrow   Holder"),   who  is  hereby  appointed  to  hold  such
certificate(s)  and Stock  Powers in escrow and to take all such  actions and to
effectuate all such transfers  and/or releases of such Acquired Shares as are in
accordance with the terms of this Exercise Agreement.  Purchaser and the Company
agree  that  Escrow  Holder  will not be liable  to any  party to this  Exercise
Agreement  (or to any other  party) for any actions or omissions  unless  Escrow
Holder is grossly  negligent  or  intentionally  fraudulent  in carrying out the
duties of Escrow  Holder under this Exercise  Agreement.  Escrow Holder may rely
upon any letter, notice or other document executed by any signature purported to
be genuine and may rely on the advice of counsel and obey any order of any court
with respect to the transactions  contemplated by this Exercise Agreement.  If a
Full Recourse Promissory Note is not given in connection with the payment of the
Exercise Price, upon termination of the Repurchase Option provided, the Acquired
Shares shall be released  from escrow.  If a Full  Recourse  Promissory  Note is
given in connection with the payment of the Exercise Price,  upon termination of
the Repurchase Option provided, the Acquired Shares:

         [  ]     will be retained in escrow so long as they are subject to the
                  Pledge Agreement

         [        ] will be  released  from  escrow  on a pro rata  basis as the
                  original principal amount of Full Recourse  Promissory Note is
                  prepaid.

         9.       RESTRICTIVE LEGENDS AND STOP-TRANSFER ORDERS.

         9.1  Restrictive  Legends  and  Stop-Transfer  Instructions.  Purchaser
agrees that, to ensure compliance with the restrictions imposed by this Exercise
Agreement, the Company may place restrictive legends in appropriate forms on the
back of all certificates  representing Acquired Share, and the Company may issue
appropriate  "stop-transfer"  instructions to its transfer agent, if any, and if
the Company transfers its own securities,  it may make appropriate  notations to
the same effect in its own records.

         9.2  Refusal to  Transfer.  The  Company  will not be  required  (i) to
transfer  on its  books any  Acquired  Shares  that have been sold or  otherwise
transferred in violation of any of the provisions of this Exercise  Agreement or
(ii) to treat as owner of such Acquired  Shares,  or to accord the right to vote
or pay  dividends to any  purchaser or other  transferee  to whom such  Acquired
Shares have been so transferred.

         10. TAX CONSEQUENCES. Set forth below is a brief summary as of the date
the Plan was  adopted  by the  Board of some of the U.S.  Federal  and state tax
consequences of exercise of the Option and  disposition of the Acquired  Shares.
THIS SUMMARY IS NECESSARILY  INCOMPLETE,  AND THE TAX LAWS AND  REGULATIONS  ARE
SUBJECT TO CHANGE.  PURCHASER SHOULD CONSULT A TAX ADVISER BEFORE EXECUTING THIS
OPTION OR DISPOSING OF THE SHARES.  PURCHASER  UNDERSTANDS  THAT  PURCHASER  MAY
SUFFER  ADVERSE  TAX  CONSEQUENCES  AS  A  RESULT  OF  PURCHASER'S  PURCHASE  OR
DISPOSITION  OF THE SHARES.  PURCHASER  REPRESENTS  THAT PURCHASER HAS CONSULTED
WITH ANY TAX ADVISER  PURCHASER  DEEMS ADVISABLE IN CONNECTION WITH THE PURCHASE
OR  DISPOSITION  OF THE SHARES AND THAT  PURCHASER IS NOT RELYING ON THE COMPANY
FOR ANY TAX  ADVICE.  IN  PARTICULAR,  IF THE  UNVESTED  SHARES  ARE  SUBJECT TO
REPURCHASE BY THE COMPANY,  PURCHASER  REPRESENTS  THAT  PURCHASER HAS CONSULTED
WITH  PURCHASER'S  TAX ADVISER  CONCERNING THE  ADVISABILITY  OF FILING AN 83(b)
ELECTION WITH THE INTERNAL REVENUE SERVICE.

         10.1 Exercise of Option. There may be a regular U.S. Federal income tax
liability  and a state  income tax  liability  upon the  exercise of the Option.
Purchaser will be treated as having  received  compensation  income  (taxable at
ordinary income tax rates) equal to the excess, if any, of the Fair Market Value
of the  Acquired  Shares on the date of exercise  over the  Exercise  Price.  If
Purchaser  is a current or former  employee of the  Company,  the Company may be
required to withhold from Purchaser's compensation or collect from Purchaser and
pay to the applicable taxing authorities an amount equal to a percentage of this
compensation income at the time of exercise.

         10.2 Disposition of Acquired Shares. The following tax consequences may
apply  upon  disposition  of the  Acquired  Shares.  [JOHN  MALONE  TO GIVE  TAX
TREATMENT FOR SALES WITHIN 12 MONTHS AFTER  EXERCISE] If the Acquired Shares are
held for more than  twelve  (12)  months  after the date of the  transfer of the
Acquired  Shares  pursuant to the  exercise of an Option,  any gain  realized on
disposition of the Acquired Shares will be treated as a long-term  capital gain.
The maximum federal capital gain tax rate is twenty percent.  The Company may be
required to withhold from  Optionee's  compensation or collect from the Optionee
and pay to the applicable taxing  authorities an amount equal to a percentage of
this compensation income. [JOHN MALONE TO CONFIRM PRECEDING SENTENCE]

         10.3.  Section  83(b)  Election  for Unvested  Shares.  With respect to
Unvested Shares, which are subject to the Repurchase Option,  unless an election
is filed by the Purchaser with the Internal  Revenue Service (and, if necessary,
the proper  state  taxing  authorities),  within 30 days of the  purchase of the
Unvested Shares,  electing pursuant to Code Section 83(b) (and similar state tax
provisions,  if applicable) to be taxed currently on any difference  between the
Exercise Price of the Unvested Shares and their Fair Market Value on the date of
purchase,  there  may be a  recognition  of  taxable  income  (including,  where
applicable,  alternative  minimum taxable income) to the Purchaser,  measured by
the excess,  if any, of the Fair Market Value of the Unvested Shares at the time
they  cease to be  Unvested  Shares,  over the  Exercise  Price of the  Unvested
Shares.

         11. COMPLIANCE WITH LAWS AND REGULATIONS.  The issuance and transfer of
the Acquired  Shares will be subject to and  conditioned  upon compliance by the
Company  and  Purchaser  with all  applicable  state and U.S.  Federal  laws and
regulations  and with all  applicable  requirements  of any  stock  exchange  or
automated  quotation system on which the Company's Common Stock may be listed or
quoted at the time of such issuance or transfer.

         12.  SUCCESSORS  AND ASSIGNS.  The Company may assign any of its rights
under this  Exercise  Agreement,  including  its rights to  repurchase  Acquired
Shares under the Repurchase  Option.  This Exercise  Agreement  shall be binding
upon and inure to the  benefit of the  successors  and  assigns of the  Company.
Subject  to the  restrictions  on  transfer  herein  set  forth,  this  Exercise
Agreement  will be binding upon  Purchaser  and  Purchaser's  heirs,  executors,
administrators, legal representatives, successors and assigns.

         13.  GOVERNING  LAW;  SEVERABILITY.  THIS EXERCISE  AGREEMENT  SHALL BE
GOVERNED BY AND CONSTRUED IN  ACCORDANCE  WITH THE INTERNAL LAWS OF THE STATE OF
TEXAS AS SUCH LAWS ARE APPLIED TO  AGREEMENTS  BETWEEN TEXAS  RESIDENTS  ENTERED
INTO  AND TO BE  PERFORMED  ENTIRELY  WITHIN  TEXAS.  IF ANY  PROVISION  OF THIS
EXERCISE   AGREEMENT  IS  DETERMINED  BY  A  COURT  OF  LAW  TO  BE  ILLEGAL  OR
UNENFORCEABLE,  THEN SUCH  PROVISION  WILL BE  ENFORCED  TO THE  MAXIMUM  EXTENT
POSSIBLE AND THE OTHER PROVISIONS WILL REMAIN FULLY EFFECTIVE AND ENFORCEABLE.

         14.  NOTICES.  Any  notice  required  to be given or  delivered  to the
Company shall be in writing and addressed to the President of the Company at its
principal  corporate  offices.  Any notice  required to be given or delivered to
Purchaser  shall  be in  writing  and  addressed  to  Purchaser  at the  address
indicated  above or to such other  address as Purchaser may designate in writing
from time to time to the Company.  All notices shall be deemed effectively given
upon personal  delivery,  three (3) days after deposit in the United States mail
by certified or registered mail (return receipt requested), one (1) business day
after its deposit with any return receipt express courier (prepaid),  or one (1)
business day after transmission by rapifax or telecopier.

         15.      FURTHER  INSTRUMENTS.  The parties  agree to execute  such
further  instruments  and to take such further action as may be reasonably
necessary to carry out the purposes and intent of this Exercise Agreement.

         16.      HEADINGS.  The  captions  and  headings  of this  Exercise
Agreement  are  included  for ease of reference  only and will be disregarded in
interpreting  or construing  this Exercise  Agreement.  All references herein to
 Sections will refer to Sections of this Exercise Agreement.

         17. ENTIRE AGREEMENT.  The Plan, the Option Agreement and this Exercise
Agreement,  together with all of its Exhibits,  constitute the entire  agreement
and  understanding  of the parties  with  respect to the subject  matter of this
Exercise  Agreement,  and supersede  all prior  understandings  and  agreements,
whether oral or written, between the parties hereto with respect to the specific
subject matter hereof.

         IN WITNESS WHEREOF,  the Company has caused this Exercise  Agreement to
be executed in duplicate by its duly authorized representative and Purchaser has
executed this Exercise Agreement in duplicate as of the Effective Date.

JVWEB, INC.                                          PURCHASER

By:_________________________________        ___________________________________
        Greg J. Micek, President            Name: ______________________________

<PAGE>

                                                  LIST OF EXHIBITS

Exhibit 1:        Stock Power and Assignment Separate From Stock Certificate
Exhibit 2:        Spouse Consent
Exhibit 3:        Copy of Purchaser's Check And/or Secured Full Recourse
                  Promissory Note
Exhibit 4:        Section 83(b) Election
Exhibit 5:        Stock Pledge Agreement

<PAGE>

                                                     EXHIBIT 1

                                             STOCK POWER AND ASSIGNMENT
                                          SEPARATE FROM STOCK CERTIFICATE

         FOR VALUE  RECEIVED and pursuant to that certain Stock Option  Exercise
Agreement No. _____ dated as of _______________  _____,  ________ (the "Exercise
Agreement"),   the  undersigned   hereby  sells,   assigns  and  transfers  unto
____________________________________,  ___________________  shares of the Common
Stock of JVWeb,  Inc., a Delaware  corporation (the "Company"),  standing in the
undersigned's name on the books of the Company represented by Certificate No(s).
________ delivered herewith,  and does hereby irrevocably constitute and appoint
_______________________________________  as the undersigned's  attorney-in-fact,
with full  power of  substitution,  to  transfer  said stock on the books of the
Company.  THIS  ASSIGNMENT  MAY BE  USED  ONLY  AS  AUTHORIZED  BY THE  EXERCISE
AGREEMENT AND ANY EXHIBITS THERETO.

                                                                       PURCHASER

Dated: _______________ _____, _______       ____________________________________
(Signature)

                                             Name:______________________________

                                             -----------------------------------
(Spouse's Signature, if any)

                                            Spouse's Name) :____________________

INSTRUCTIONS:  Please do not fill in any blanks other than the  signature  line.
The  purpose  of this Stock  Power and  Assignment  is to enable the  Company to
acquire the shares upon a default  under  Purchaser's  Note and to exercise  its
"Repurchase  Option"  set  forth in the  Exercise  Agreement  without  requiring
additional signatures on the part of the Purchaser or Purchaser's Spouse.

<PAGE>

                                                     EXHIBIT 2

                                                   SPOUSE CONSENT

         The undersigned spouse of Purchaser has read,  understands,  and hereby
approves the Stock Option Exercise  Agreement  between Purchaser and the Company
(the "Exercise Agreement"). In consideration of the Company's granting my spouse
the right to purchase  the Shares as set forth in the  Exercise  Agreement,  the
undersigned  hereby agrees to be irrevocably bound by the Exercise Agreement and
further agrees that any community property interest I may have in the Shares and
any other property  pursuant to the Exercise  Agreement shall similarly be bound
by the Exercise  Agreement.  The  undersigned  hereby  appoints  Purchaser as my
attorney-in-fact  with respect to any  amendment or exercise of any rights under
the Exercise Agreement.

Date: _______________ _____, _______                ____________________________
                                                                (Signature)

                                             Name:______________________________

                                             Name of Purchaser:_________________

                                             Address:___________________________

                                               -------------------------------

<PAGE>

                                                     EXHIBIT 3

                                       SECURED FULL RECOURSE PROMISSORY NOTE

Houston, Texas     $__________________                 ____________ ___, _____

         1.  OBLIGATION.  In  exchange  for  the  issuance  to  the  undersigned
("Purchaser")  of  ______________________________  shares (the  "Shares") of the
Common Stock of JVWeb, Inc., a Delaware corporation (the "Company"),  receipt of
which is hereby  acknowledged,  Purchaser hereby promises to pay to the order of
the  Company  on or before  _______________  _____,  _______,  at the  Company's
principal  place of business at 5444  Westheimer,  Suite  2080,  Houston,  Texas
77056,  or at such other place as the Company may direct,  the  principal sum of
____________________   Dollars   ($_______________)   together   with   interest
compounded  semi-annually on the unpaid principal at the rate of  ______________
percent  (_____%),  which  rate is not less than the  minimum  rate  established
pursuant to Section 1274(d) of the Internal Revenue Code of 1986, as amended, on
the  earliest  date on which  there was a binding  contract  in writing  for the
purchase of the Shares; provided,  however, that the rate at which interest will
accrue on unpaid  principal  under this Note will not exceed  the  highest  rate
permitted by  applicable  law; and provided  further that interest on the unpaid
principal shall be due and payable on December 1 of each year.

         2. SECURITY.  Payment of this Note is secured by a security interest in
the Shares granted to the Company by Purchaser under a Stock Pledge Agreement of
even date herewith  between the Company and Purchaser (the "Pledge  Agreement").
This Note is being  tendered by Purchaser to the Company as part of the Exercise
Price of the Shares  pursuant to that certain  Stock Option  Exercise  Agreement
between  Purchaser  and the  Company of even date with this Note (the  "Exercise
Agreement").

         3. DEFAULT; ACCELERATION OF OBLIGATION.  Purchaser will be deemed to be
in default under this Note and the principal sum of this Note, together with all
interest accrued thereon,  will immediately  become due and payable in full: (a)
upon  Purchaser's  failure to make any payment when due under this Note;  (b) in
the  event   Purchaser  is  Terminated   (as  defined  in  the  Company's   2000
Non-Qualified Stock Option Plan) for any reason; (c) upon any transfer of any of
the Shares  (except a transfer  to, or  expressly  permitted  in writing by, the
Company);  (d) upon the  filing by or  against  Purchaser  of any  voluntary  or
involuntary  petition in  bankruptcy  or any  petition for relief under the U.S.
Federal bankruptcy code or any other state or U.S. Federal law for the relief of
debtors; or (e) upon the execution by Purchaser of an assignment for the benefit
of creditors or the  appointment  of a receiver,  custodian,  trustee or similar
party to take possession of Purchaser's assets or property.

         4. REMEDIES ON DEFAULT.  Upon any default of Purchaser under this Note,
the Company will have,  in addition to its rights and  remedies  under this Note
and the Pledge Agreement, full recourse against any real, personal,  tangible or
intangible assets of Purchaser,  and may pursue any legal or equitable  remedies
that are available to it.

         5.  PREPAYMENT.  Prepayment of principal and/or interest due under this
Note may be made at any time without penalty. Unless otherwise agreed in writing
by the Company,  all payments will be made in lawful tender of the United States
and will be applied first to the payment of accrued interest,  and the remaining
balance  of such  payment,  if any,  will  then be  applied  to the  payment  of
principal. If Purchaser prepays all or a portion of the principal amount of this
Note, the Shares paid for by the portion of principal so paid

         [  ]     shall  continue  to be held in pledge  under the Pledge
                  Agreement  to serve as independent collateral for the
                  outstanding portion of this Note

         [        ]  shall  be  released  from  pledge  and may be  returned  to
                  Purchaser  so long as the  Company  no longer has any right to
                  repurchase the Shares to be released.

         6.       GOVERNING LAW; WAIVER.  THE VALIDITY,  CONSTRUCTION AND
PERFORMANCE OF THIS NOTE WILL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF
TEXAS,  EXCLUDING THAT BODY OF LAW  PERTAINING TO CONFLICTS OF LAW.  PURCHASER
HEREBY WAIVES PRESENTMENT, NOTICE OF NON-PAYMENT, NOTICE OF DISHONOR, PROTEST,
DEMAND AND DILIGENCE.

         7.       ATTORNEYS'  FEES.  If suit is brought for  collection of this
Note,  Purchaser  agrees to pay all reasonable  expenses,  including  attorneys'
fees,  incurred by the holder in connection  therewith whether or not such suit
is prosecuted to judgment.

         IN WITNESS WHEREOF, Purchaser has executed this Note as of the date and
year first above written.

                                               ---------------------------------
                                                          (Signature)

                                            Name:______________________________

<PAGE>

                                                     EXHIBIT 4

[FOR REGULAR INCOME TAX - NONQUALIFIED  OPTIONS] [FOR AMT AND DISQUALIFYING
DISPOSITION PURPOSES - INCENTIVE STOCK OPTION]

ELECTION UNDER SECTION 83(B) OF THE INTERNAL REVENUE CODE

         The undersigned  Taxpayer  hereby elects,  pursuant to Section 83(b) of
the Internal Revenue Code of 1986, as amended, to include the excess, if any, of
the fair market  value of the property  described  below at the time of transfer
over the amount paid for such  property,  as  compensation  for  services in the
calculation of: (1) regular gross income; (2) alternative minimum taxable income
or (3) disqualifying disposition gross income, as the case may be.

1.       TAXPAYER'S NAME:___________________________________________________
         TAXPAYER'S ADDRESS: _______________________________________________
------------------------------------------------------------------------
         SOCIAL SECURITY NUMBER: __________________________________________

         2.       The   property   with   respect  to  which  the   election  is
made  is  described  as  follows: ___________________  shares of Common  Stock
of JVWeb,  Inc.,  a Delaware  corporation  (the  "Company"), which is Taxpayer's
employer or the corporation for whom the Taxpayer performs  services.  The
foregoing shares were issued upon exercise of an option.

         3.       The date on which the  shares  were  transferred  pursuant  to
the  exercise  of the  option  was _______________ ___, ____ and this election
is made for calendar year ________.

         4. The shares  received  upon exercise of the option are subject to the
following  restrictions:  The  Company  may  repurchase  all or a portion of the
shares at the Taxpayer's original purchase price under certain conditions at the
time of Taxpayer's termination of employment or services.

         5. The fair market value of the shares  (without regard to restrictions
other than restrictions which by their terms will never lapse) was $________ per
share at the time of exercise of the option.

         6.       The amount paid for such shares upon exercise of the option
was $____________ per share.

         7.       The Taxpayer has submitted a copy of this statement to the
Company.

         THIS ELECTION MUST BE FILED WITH THE INTERNAL  REVENUE SERVICE ("IRS"),
AT THE OFFICE WHERE THE TAXPAYER FILES ANNUAL INCOME TAX RETURNS, WITHIN 30 DAYS
AFTER  THE DATE OF  TRANSFER  OF THE  SHARES,  AND MUST  ALSO BE FILED  WITH THE
TAXPAYER'S  INCOME TAX RETURNS FOR THE CALENDAR  YEAR.  THE  ELECTION  CANNOT BE
REVOKED WITHOUT THE CONSENT OF THE IRS.

Dated: ____________ ___, _______            ____________________________________
                                                      Taxpayer's Signature

<PAGE>

                                                     EXHIBIT 5

                                               STOCK PLEDGE AGREEMENT

         THIS PLEDGE AGREEMENT ("Pledge  Agreement") is made and entered into as
of  _______________  _____,  _______  by and  between  JVWeb,  Inc.,  a Delaware
corporation (the "Company"), and _____________________________ ("Pledgor").

                                                  R E C I T A L S

         A. In exchange for Pledgor's Secured Full Recourse  Promissory Note and
Secured  Non-Recourse  Promissory Note to the Company of even date herewith (the
"Note"), the Company has issued and sold to Pledgor  ____________________ shares
of its Common Stock (the "Shares")  pursuant to the terms and conditions of that
Stock  Option  Exercise  Agreement  between the Company and Pledgor of even date
herewith (the "Exercise Agreement").

         B.       Pledgor  has  agreed  that  repayment  of the Note will be
secured  by the  pledge of the Shares pursuant to this Pledge Agreement.

         NOW, THEREFORE, the parties agree as follows:

         1. CREATION OF SECURITY INTEREST. Pursuant to the provisions of Chapter
9 of the Texas Business and Commerce Code, Pledgor hereby grants to the Company,
and the Company hereby  accepts,  a first and present  security  interest in the
Shares as  collateral  to secure the  payment  of  Pledgor's  obligation  to the
Company under the Note.  Pledgor  herewith  delivers to the Company Common Stock
certificate(s)  No(s).  _________,  representing  all the Shares,  together with
three stock powers for each  certificate  in the form  attached as an Exhibit to
the Exercise  Agreement,  duly executed (with the date and number of shares left
blank) by Pledgor and  Pledgor's  spouse,  if any.  For  purposes of this Pledge
Agreement,  the  Shares  pledged  to  the  Company  hereby,  together  with  any
additional  collateral  pledged  pursuant  to  Sections  5  and 6  hereof,  will
hereinafter be collectively referred to as the "Collateral." Pledgor agrees that
the  Collateral  pledged to the Company will be  deposited  with and held by the
Escrow Holder (as defined in the Exercise  Agreement) and that,  notwithstanding
anything to the contrary in the Exercise Agreement, for purposes of carrying out
the provisions of this Pledge  Agreement,  Escrow Holder will act solely for the
Company as its agent.

         2.  REPRESENTATIONS  AND  WARRANTIES.  Pledgor  hereby  represents  and
warrants to the Company that Pledgor has good title (both record and beneficial)
to the Collateral,  free and clear of all claims,  pledges,  security interests,
liens or encumbrances of every nature whatsoever, and that Pledgor has the right
to pledge and grant the Company the security interest in the Collateral  granted
under this Pledge  Agreement.  Pledgor  further  agrees  that,  until the entire
principal sum and all accrued interest due under the Note has been paid in full,
Purchaser  will not,  without the  Company's  prior written  consent,  (i) sell,
assign  or  transfer,  or  attempt  to  sell,  assign  or  transfer,  any of the
Collateral, or (ii) grant or create, or attempt to grant or create, any security
interest,  lien,  pledge,  claim or other encumbrance with respect to any of the
Collateral.

         3. RIGHTS ON DEFAULT.  In the event of default (as defined in the Note)
by Pledgor under the Note, the Company will have full power to sell,  assign and
deliver  the whole or any part of the  Collateral  at any  broker's  exchange or
elsewhere,  at public or private sale, at the option of the Company, in order to
satisfy  any part of the  obligations  of Pledgor now  existing  or  hereinafter
arising  under the Note.  On any such  sale,  the  Company  or its  assigns  may
purchase all or any part of the Collateral. In addition, at its sole option, the
Company may elect to retain all the Collateral in full satisfaction of Pledgor's
obligation  under the Note, in accordance with the provisions and procedures set
forth in Chapter 9 of the Texas Business and Commerce Code.

         4. ADDITIONAL REMEDIES.  The rights and remedies granted to the Company
herein upon default under the Note will be in addition to all the rights, powers
and remedies of the Company under  Chapter 9 of the Texas  Business and Commerce
Code and applicable law and such rights, powers and remedies will be exercisable
by the Company with respect to all of the  Collateral.  Pledgor  agrees that the
Company's reasonable expenses of holding the Collateral, preparing it for resale
or other  disposition,  and selling or otherwise  disposing  of the  Collateral,
including  attorneys' fees and other legal  expenses,  will be deducted from the
proceeds  of any sale or other  disposition  and will be included in the amounts
Pledgor must tender to redeem the Collateral. All rights, powers and remedies of
the Company will be cumulative and not  alternative.  Any forbearance or failure
or delay by the Company in exercising any right,  power or remedy hereunder will
not be deemed to be a waiver of any such  right,  power or remedy and any single
or  partial  exercise  of any such  right,  power or remedy  hereunder  will not
preclude the further exercise thereof.

         5. DIVIDENDS;  VOTING. All dividends hereinafter declared on or payable
with respect to the Collateral  during the term of this pledge  (excluding  only
ordinary cash dividends,  which will be payable to Pledgor so long as Pledgor is
not in default under the Note) will be  immediately  delivered to the Company to
be held in pledge  under this  Pledge  Agreement.  Notwithstanding  this  Pledge
Agreement,  so long as Pledgor  owns the Shares and is not in default  under the
Note,  Pledgor will be entitled to vote any shares  comprising  the  Collateral,
subject to any proxies granted by Pledgor.

         6. ADJUSTMENTS.  In the event that during the term of this pledge,  any
stock dividend,  reclassification,  readjustment, stock split or other change is
declared  or made with  respect to the  Collateral,  or if warrants or any other
rights, options or securities are issued in respect of the Collateral,  then all
new,  substituted  and/or additional shares or other securities issued by reason
of such change or by reason of the exercise of such warrants, rights, options or
securities,  will be  immediately  pledged  to the  Company to be held under the
terms of this  Pledge  Agreement  in the same manner as the  Collateral  is held
hereunder.

         7. RIGHTS UNDER EXERCISE AGREEMENT. Pledgor understands and agrees that
the Company's rights to repurchase the Collateral under the Exercise  Agreement,
if any, will continue for the periods and on the terms and conditions  specified
in the  Exercise  Agreement,  whether or not the Note has been paid  during such
period of time,  and that to the extent  that the Note is not paid  during  such
period of time,  the  repurchase by the Company of the Collateral may be made by
way of cancellation of all or any part of Pledgor's indebtedness under the Note.

         8.  REDELIVERY  OF  COLLATERAL.  Upon  payment  in full  of the  entire
principal  sum and all accrued  interest due under the Note,  and subject to the
terms and  conditions of the Exercise  Agreement,  the Company will  immediately
redeliver the Collateral to Pledgor and this Pledge  Agreement  will  terminate;
provided,  however,  that all rights of the Company to retain  possession of the
Shares  pursuant to the  Exercise  Agreement  will survive  termination  of this
Pledge Agreement.

         9.       SUCCESSORS  AND  ASSIGNS.  This  Pledge  Agreement  will inure
to the  benefit of the  respective heirs, personal representatives, successors
and assigns of the parties hereto.

         10. GOVERNING LAW; SEVERABILITY. THIS PLEDGE AGREEMENT WILL BE GOVERNED
BY AND  CONSTRUED IN  ACCORDANCE  WITH THE INTERNAL  LAWS OF THE STATE OF TEXAS,
EXCLUDING  THAT BODY OF LAW RELATING TO CONFLICTS OF LAW.  SHOULD ONE OR MORE OF
THE  PROVISIONS  OF THIS PLEDGE  AGREEMENT BE DETERMINED BY A COURT OF LAW TO BE
ILLEGAL  OR  UNENFORCEABLE,   THE  OTHER  PROVISIONS  NEVERTHELESS  WILL  REMAIN
EFFECTIVE AND WILL BE ENFORCEABLE.

         11. MODIFICATION;  ENTIRE AGREEMENT.  This Pledge Agreement will not be
amended  without  the  written  consent  of both  parties  hereto.  This  Pledge
Agreement constitutes the entire agreement of the parties hereto with respect to
the subject matter hereof and supersedes all prior agreements and understandings
related to such subject matter.

         IN WITNESS WHEREOF,  the parties hereto have executed this Stock Pledge
Agreement as of the date and year first above written.

JVWEB, INC.                                          PLEDGOR

By:_________________________________        ___________________________________
        Greg J. Micek, President            Name: ______________________________UTAH #2

                            ASSET PURCHASE AGREEMENT

                                 by and between

                              DTE KENTUCKY, L.L.C.

                                       and

                            COVOL TECHNOLOGIES, INC.

                             CARBON SYNFUEL, L.L.C.

                            SYNFUEL INVESTMENTS, INC.

                                December 23, 1999

** This Exhibit contains  confidential  material which has been omitted pursuant
to a Confidential  Treatment  Request.  The omitted  information  has been filed
separately with the Securities and Exchange Commission.

                                       i
<PAGE>

                               TABLE OF CONTENTS

                                                                            Page

ARTICLE I DEFINITIONS.........................................................1
         1.1. Affiliate.......................................................1
         1.2. Agreement.......................................................1
         1.3. As-Built Drawing................................................1
         1.4. Assets..........................................................1
         1.5. Assignment Agreement............................................1
         1.6. Bill of Sale....................................................2
         1.7. Books and Records...............................................2
         1.8. Buyer's Closing Certificate.....................................2
         1.9. Closing.........................................................2
         1.10. Closing Date...................................................2
         1.11. Code...........................................................2
         1.12. Confidentiality Agreement......................................2
         1.13. Contracts......................................................2
         1.14. Covol Process..................................................2
         1.15. Effective Time.................................................2
         1.16. Excluded Assets................................................2
         1.17. Facility.......................................................2
         1.18. Facility Site..................................................2
         1.19. Fixed Assets...................................................3
         1.20. GAAP...........................................................3
         1.21. Improvements...................................................3
         1.22. IRS............................................................3
         1.23. Knowledge of Buyer.............................................3
         1.24. Knowledge of Seller............................................3
         1.25. Law............................................................3
         1.26. Lease..........................................................3
         1.27. License and Binder Purchase Agreement..........................3
         1.28. Lien...........................................................3
         1.29. Loss...........................................................4
         1.30. Material Adverse Effect........................................4
         1.31. Opinion of Sellers' Counsel....................................4
         1.32. Permitted Liens................................................4
         1.33. Plans and Specifications.......................................4
         1.34. Product........................................................4
         1.35. Purchase Consideration.........................................4
         1.36. Required Consents..............................................4
         1.37. Section 29 Product.............................................4
         1.38. Sellers' Closing Certificate...................................4
         1.39. Sublease and License...........................................4
         1.40. Transaction Documents..........................................4

                                       ii
<PAGE>

ARTICLE II PURCHASE AND SALE..................................................5
         2.1. Purchase and Sale...............................................5
         2.2. Payment of the Purchase Consideration...........................5
         2.3. Deliveries at Closing...........................................5
         2.4. Allocation of Purchase Price....................................5
         2.5. No Assumption of Liabilities....................................6
         2.6. Sales Tax Exemption.............................................6

ARTICLE III REPRESENTATION AND WARRANTIES OF SELLERS..........................6
         3.1. Corporate Standing..............................................6
         3.2. Authorizations; Binding Agreements..............................6
         3.3. No Actions Affecting Enforcement of the Agreement and
                the other Transaction Documents...............................7
         3.4. Taxes...........................................................7
         3.5. Brokers or Finders Fees.........................................7
         3.6. No Imposition of Liens..........................................8
         3.7. Title to Assets.................................................8
         3.8. Condition of Assets.............................................8
         3.9. Pending Litigation..............................................8
         3.10. Compliance With Laws...........................................8
         3.11. Status of Contracts............................................8
         3.12. Consents.......................................................9
         3.13. Books and Records..............................................9
         3.14. Environmental Conditions.......................................9
         3.15. Liabilities...................................................10
         3.16. Agreements with Related Persons...............................10
         3.17. Adequacy of the Purchased Assets..............................10
         3.18. Production Capacity...........................................11
         3.19. Section 29 Issues.............................................11

ARTICLE IV REPRESENTATIONS AND WARRANTIES OF BUYER...........................11
         4.1. Organization and Standing......................................11
         4.2. Authorizations; Binding Agreements.............................11
         4.3. Brokers or Finders Fees........................................12
         4.4. No Action Affecting Enforcement of the Agreement and the
                other Transaction Documents..................................12

ARTICLE V CERTAIN UNDERSTANDINGS AND AGREEMENTS..............................12
         5.1. Best Efforts...................................................12
         5.2. Public Announcements...........................................12
         5.3. Confidentiality................................................12
         5.4. Taxes..........................................................13
         5.5. Private Letter Ruling Repurchase Option........................13
         5.6. Solvency Representations and Covenants.........................13
         5.7. Sublease and License...........................................14

                                      iii
<PAGE>

ARTICLE VI CONDITIONS PRECEDENT TO THE PAYMENT OBLIGATIONS OF BUYER..........14
         6.1. Compliance with Agreement......................................14
         6.2. Proceedings and Instruments Satisfactory.......................14
         6.3. No Litigation..................................................14
         6.4. Representations and Warranties.................................14
         6.5. Consents.......................................................15
         6.6. Tax Opinion....................................................15

ARTICLE VII CONDITIONS PRECEDENT TO THE OBLIGATIONS OF SELLERS...............15
         7.1. Compliance with Agreement......................................15
         7.2. Proceedings and Instruments Satisfactory.......................15
         7.3. No Litigation..................................................15
         7.4. Representations and Warranties.................................15
         7.5. Required Consents..............................................16

ARTICLE VIII INDEMNITIES AND ADDITIONAL COVENANTS............................16
         8.1. Sellers' Indemnity.............................................16
         8.2. Buyer's Indemnity..............................................17
         8.3. Bulk Sales Compliance..........................................18
         8.4. Additional Instruments.........................................18
         8.5. Access to Books, Records and Employees.........................19

ARTICLE IX TERMINATION.......................................................19
         9.1. Termination....................................................19
         9.2. Rights on Termination; Waiver..................................19

ARTICLE X MISCELLANEOUS......................................................20
         10.1. Entire Agreement; Amendment...................................20
         10.2. Expenses......................................................20
         10.3. Governing Law; Consent to Jurisdiction........................20
         10.4. Assignment....................................................21
         10.5. Notices.......................................................21
         10.6. Counterparts; Headings........................................22
         10.7. Interpretation................................................22
         10.8. Severability..................................................22
         10.9. No Reliance...................................................22
         10.10. Parties in Interest..........................................22
         10.11. Specific Performance.........................................23

                                       iv
<PAGE>

                             EXHIBITS AND SCHEDULES

SCHEDULE 1.13     Contracts
SCHEDULE 1.16     Excluded Assets
SCHEDULE 1.19     Fixed Assets
SCHEDULE 1.23     Knowledge of Buyer
SCHEDULE 1.24     Knowledge of Sellers

SCHEDULE 1.31     Opinion of Sellers' Counsel
SCHEDULE 1.32     Permitted Liens
SCHEDULE 1.36     Required Consents
SCHEDULE 3.3      Pending Actions
SCHEDULE 3.5      Brokers or Finders Fees of Sellers
SCHEDULE 3.7      Title
SCHEDULE 3.8      Condition of Assets
SCHEDULE 3.9      Pending Litigation
SCHEDULE 3.11     Status of Contracts
SCHEDULE 3.16     Agreements with Related Persons

EXHIBIT A          Assignment Agreement
EXHIBIT B          Bill of Sale
EXHIBIT C          Buyer's Closing Certificate
EXHIBIT D          Sellers' Closing Certificate

EXHIBIT E          License and Binder Purchase Agreement
EXHIBIT F          Allocation of Purchase Price

                                       v
<PAGE>

                            ASSET PURCHASE AGREEMENT

         ASSET PURCHASE AGREEMENT,  made as of December 23, 1999, by and between
DTE KENTUCKY,  L.L.C., a Delaware limited liability company ("Buyer"), and COVOL
TECHNOLOGIES,  INC., a Delaware  corporation;  CARBON  SYNFUEL,  L.L.C.,  a Utah
limited liability  company;  and SYNFUEL  INVESTMENTS,  INC., a Utah corporation
("Sellers").

                                    RECITALS

         WHEREAS,  Carbon  Synfuel,  L.L.C.  owns  the  Assets  comprised  of  a
processing  Facility to produce  solid  synthetic  fuel  pellets from coal fines
located near Price,  Utah and Carbon Synfuel,  L.L.C. is controlled by the other
Sellers; and

         WHEREAS,  Sellers  desire to sell the Assets and the Contracts to Buyer
and Buyer  desires to  purchase  the Assets from  Sellers,  all on the terms and
subject to the conditions set forth herein.

         NOW,  THEREFORE,  in  consideration  of the  Recitals and of the mutual
covenants,  conditions  and  agreements  set forth herein and for other good and
valuable  consideration,  the  receipt  and  sufficiency  of  which  are  hereby
acknowledged, it is hereby agreed that:

                                    ARTICLE I
                                   DEFINITIONS

         When  used in this  Agreement,  the  following  terms  shall  have  the
meanings specified:

                  1.1.  Affiliate shall mean, as to any person, any other person
or entity  that,  directly or  indirectly  through  one or more  intermediaries,
controls, is controlled by or is under common control with such person.

                  1.2.  Agreement shall mean this Purchase  Agreement,  together
with the Exhibits and Schedules attached hereto, as the same may be amended from
time to time in accordance with the terms hereof.

                  1.3. As-Built Drawing shall mean as-built drawings  reflecting
necessary revisions on the original tracings of the Plans and Specifications and
related  drawings  relating to the  Facility  necessary  to indicate  such field
changes as may have been found necessary to suit conditions at the Facility Site
and any other revisions made in the course of construction of the Facility.

                  1.4. Assets shall mean,  collectively,  the Improvements,  the
Books and Records,  and the Fixed Assets,  together with all goodwill associated
with the Facility.

                  1.5. Assignment  Agreement shall mean the Assignment Agreement
between  Sellers and Buyer  relating to the  Contracts  in the form of Exhibit A
attached hereto.

                                       1
<PAGE>

                  1.6.  Bill of Sale shall mean the Bill of Sale from Sellers to
Buyer relating to the Assets, in the form of Exhibit B attached hereto.

                  1.7.  Books  and  Records  shall  mean  original  or true  and
complete  copies of all of the books,  records,  files,  data and information of
Sellers  relating to the design,  construction and operation of the Facility and
operation of the business  prior to the  Effective  Time,  which are relevant to
Buyer's use of the Assets,  performance under the Contracts and operation of the
Facility and the Business after the Effective Time, including without limitation
Plans and  Specifications,  all  original  tracings of the related  drawings and
designs and the As-Built Drawings.

                  1.8. Buyer's Closing Certificate shall mean the certificate of
Buyer substantially in the form of Exhibit C attached hereto.

                  1.9.  Closing shall mean the meeting of the parties to be held
at 9:00 a.m.,  local  time,  on the  Closing  Date,  at the  offices of Hunton &
Williams,  Riverfront  Plaza,  East  Tower,  951  East  Byrd  Street,  Richmond,
Virginia,  or such other time and place as the  parties  may  mutually  agree in
writing.

                  1.10. Closing Date shall mean December 29, 1999, or such other
date as the parties may mutually agree in writing.

                  1.11.  Code shall mean the Internal  Revenue Code of 1986,  as
amended, and the regulations thereunder.

                  1.12.   Confidentiality   Agreement   shall  mean  the  Letter
Agreement,  dated  April 27,  1999,  between  Sellers  and DTE  Energy  Services
Company.

                  1.13.   Contracts  shall  mean  all  construction   agreements
relating to the Facility and the  Improvements,  or components  thereof,  all as
listed on  Schedule1.13  attached  hereto or as  otherwise  agreed upon by Buyer
prior to the Closing Date.

                  1.14. Covol Process shall mean Sellers' proprietary  synthetic
coal fuel production  process for  manufacturing  solid synthetic fuel from coal
fines  which is defined  in and is the  subject of the  Technology  License  and
Binder Supply Agreement.

                  1.15.  Effective Time shall mean 12:01 a.m.,  Eastern Time, on
the Closing Date.

                  1.16.  Excluded Assets shall mean the items listed on Schedule
1.16 attached

hereto

                  1.17.  Facility  shall mean the solid  synthetic  fuel  pellet
manufacturing Facility and related support Facility owned by Sellers and located
at the Facility Site.

                  1.18.  Facility  Site shall mean that  certain  parcel of land
located near Price,  Utah where the Facility is located as of the Effective Date
and which is the leased premises under the Lease.

                                       2
<PAGE>

                  1.19. Fixed Assets shall mean all tangible  personal  property
located at the Facility Site which  constitute  part of, or are otherwise  owned
and used by Sellers in the operation of, the Facility as of the Effective  Time,
including, but not limited to, all fixed assets, chattels, machinery, equipment,
computer  hardware,  fixtures,  furniture,   furnishings,   handling  equipment,
implements,  spare parts, tools and accessories of all kinds which are listed on
Schedule  1.19  attached  hereto;  provided,  however,  that Fixed  Assets shall
exclude (i) leased items of property and (ii) the Excluded Assets.

                  1.20. GAAP shall mean generally accepted accounting principles
of the United  States as applied  by Sellers in a manner  consistent  with prior
periods.

                  1.21.  Improvements  shall mean the structures,  buildings and
improvements  now standing on the  Facility  Site and  constituting  part of the
Facility,  and replacements thereof,  including,  without limitation,  all plant
equipment,  apparatus,  and machinery of every kind and nature forming a part of
such Facility, buildings, and improvements.

                  1.22. IRS shall mean the Internal Revenue Service.

                  1.23.  Knowledge  of Buyer  shall mean the  actual  knowledge,
after due inquiry, of any person listed on Schedule 1.23 attached hereto.

                  1.24.  Knowledge  of Seller  shall mean the actual  knowledge,
after due inquiry, of any person listed on Schedule 1.24 attached hereto.

                  1.25. Law shall mean any federal, state, local or other law or
governmental  requirement  of any kind,  and the rules,  regulations  and orders
promulgated thereunder.

                  1.26.  Lease shall mean that  certain  Lease  Agreement by and
between U.P.C.,  Inc. and Covol  Technologies,  Inc. dated December 23, 1996, as
amended by that certain Amendment to Lease Agreement dated as of April 2, 1997.

                  1.27.  License and Binder  Purchase  Agreement shall mean that
certain  License and Binder  Purchase  Agreement to be entered into by Buyer and
Sellers, relating to the licensing by the Buyer of Covol's proprietary synthetic
coal fuel extrusion,  pellet and briquette  production process for the Facility,
and substantially in the form of Exhibit E attached hereto.

                  1.28.  Lien shall mean any  interest in  property  securing an
obligation,  whether such interest is based on common law,  statute or contract,
and including any restriction on the use, voting, transfer, receipt of income or
other  exercise of any  attributes of ownership,  any security  interest or lien
arising  from  a  mortgage,  claims,  encumbrance,   pledge,  charge,  easement,
servitude,  security  agreement,  conditional  sale or trust receipt or a lease,
consignment  or bailment  for  security  purposes.  The term  "Lien"  shall also
include reservations,  exceptions, covenants, conditions,  restrictions, leases,
subleases,   licenses,   occupancy  agreements,   pledges,  equities,   charges,
assessments,  covenants, reservations, defects in title, encroachments and other
burdens,  and other title exceptions and encumbrances  affecting property of any
nature, whether accrued or unaccrued, or absolute or contingent.

                                       3
<PAGE>

                  1.29.  Loss  shall  have the  meaning  given  to such  term in
Section 8.1(a).

                  1.30.  Material  Adverse Effect shall mean a material  adverse
effect  on the  Assets  and  Contracts,  taken as a whole,  the  business  to be
conducted  by Buyer  with the Assets or the  maintenance  and  operation  of the
Facility.

                  1.31.  Opinion of Sellers'  Counsel  shall mean the opinion of
Pillsbury, Madison & Sutro, LLP, counsel of Sellers and Harlan Hatfield, general
counsel of Covol Technologies, Inc., substantially in the form of Schedule 1.31.

                  1.32.  Permitted  Liens shall mean Liens (but only for amounts
not yet due and payable) securing taxes,  assessments or governmental charges or
levies,  Liens of an immaterial nature which could not reasonably be expected to
have an adverse effect on the  maintenance  and operation of the Facility or the
good and marketable title of the Assets or the  enforceability of the Contracts,
and Liens disclosed on Schedule 1.32 attached hereto.

                  1.33.  Plans and  Specifications  shall have the meaning given
such terms in the Contracts.

                  1.34.  Product  shall  mean the solid  synthetic  fuel  pellet
product produced at the Facility using and pursuant to the Covol Process.

                  1.35.  Purchase  Consideration shall have the meaning given to
such term in Section 2.2 hereof.

                  1.36.  Required Consents shall mean those consents,  approvals
and waivers  required  from  parties to the  Contracts or under the Lease or any
subleases  or from  governmental  authorities  or other third  parties  that are
necessary or required in order to transfer the Assets and Contracts to Buyer and
otherwise give effect to the transactions  contemplated  herein (other than such
consents, the failure of which to obtain, taken as a whole, could not reasonably
be  expected  to have a  Material  Adverse  Effect)  and that  are  specifically
identified on Schedule 1.36 attached hereto.

                  1.37.   Section  29  Product   shall  mean  Product  which  is
reasonably  expected to constitute  "qualified  fuels"  pursuant to the terms of
Section  29(c)(1)(C)  of the Code  and  with  respect  to  which  Section  29 is
applicable pursuant to the terms of Sections 29(f) and 29(g) of the Code.

                  1.38.  Sellers' Closing Certificate shall mean the certificate
of Sellers substantially in the form of Exhibit D attached hereto.

                  1.39.  Sublease and License  shall have the meaning given such
term in Section 5.7.

                  1.40.  Transaction  Documents shall mean this  Agreement,  the
Bill of Sale,  the  Assignment  Agreement,  the  Sublease  and License and those
agreements  and  instruments to be executed and delivered as provided in Section
2.3.

                                       4
<PAGE>

                                   ARTICLE II
                                PURCHASE AND SALE

         2.1.     Purchase and Sale.

                  (a) Buyer and Sellers  hereby agree that at the  Closing,  and
upon all of the terms and subject to all of the  conditions  of this  Agreement,
Sellers  shall  sell,  convey,  transfer  and assign to Buyer,  and Buyer  shall
purchase  and accept  from  Sellers,  all of the  Assets,  free and clear of all
Liens.

                  (b) Buyer and Sellers  hereby agree that at the  Closing,  and
upon all of the terms and subject to all of the  conditions  of this  Agreement,
Sellers shall assign to Buyer the Contracts and all rights arising thereunder.

         2.2. Payment of the Purchase Consideration.

         In consideration of Sellers' sale, conveyance,  transfer,  delivery and
assignment of the Assets and  Contracts,  Buyer shall on the Closing Date make a
cash  payment to Sellers  in the  amount of **  Dollars  ($**),  payable by wire
transfer in readily  available  funds to First  Security  Bank;  Salt Lake City,
Utah; 18A 124 000012;  for the account of Covol  Technology;  Acct.  #0600019939
(the "Purchase Consideration").

         2.3. Deliveries at Closing.

                  (a) By Sellers to Buyer. At the Closing, Sellers shall deliver
the following items to Buyer, each properly executed and dated as of the Closing
Date by Sellers and in form and substance  reasonably  acceptable to Buyer:  the
Assignment Agreement,  the Bill of Sale, the Improvements Deed, the Sublease and
License, the License and Binder Purchase Supply Agreement, all Required Consents
applicable  to  Sellers,  the  Opinion of  Sellers'  Counsel,  Sellers'  Closing
Certificate, a subordination and nondisturbance agreement,  satisfactory in form
and substance to Buyer,  from all mortgagees and other parties with interests in
the  Facility  Site,  the Lease or the  Improvements  and a  certificate  of the
corporate secretary of Sellers as to such matters as may reasonably be requested
by Buyer.

                  (b) By Buyer to Sellers.  At the Closing,  Buyer shall deliver
the Purchase  Consideration  and the following  items to Sellers,  each properly
executed  and dated as of the  Closing  Date by Buyer and in form and  substance
reasonably  acceptable to Sellers:  the Assignment  Agreement,  the Sublease and
License,  the License  and Binder  Purchase  Agreement,  all  Required  Consents
applicable  to Buyer,  Buyer's  Closing  Certificate  and a  certificate  of the
corporate secretary (or equivalent  official) of Buyer as to such matters as may
reasonably be requested by Sellers.

         2.4. Allocation of Purchase Price.

         On the Closing Date,  or at a later time agreed to by the parties,  not
to exceed 30 days  following  the  Closing  Date,  the  purchase  price shall be
allocated  among the Assets and Contracts in accordance  with Exhibit F attached
hereto.  Such  allocation  shall be intended to comply with

                                       5
<PAGE>

the  requirements  of  Section  1060 of the Code,  and no party  shall  take any
position inconsistent with such allocation for income tax purposes,  except that
Buyer's  cost for the  Assets  and  Contracts  may  differ  from the  amount  so
allocated to the extent  necessary to reflect  Buyer's  capitalized  acquisition
costs other than the amount realized by Sellers.

         2.5. No Assumption of Liabilities.

         Buyer does not and will not assume any  liability or  obligation of any
kind  of  Sellers,  or any  obligation  relating  to the  use of the  Assets  or
performance by Sellers under the Contracts prior to the Effective Time,  whether
absolute or contingent,  accrued or unaccrued,  asserted or unasserted, known or
unknown, or otherwise.

         2.6. Sales Tax Exemption.

         To the extent applicable, at the Closing, Buyer will deliver to Sellers
appropriate  and  customary  sales tax  exemption  certificates  relating to the
transfer of the Assets and the assignment of the Contracts contemplated hereby.

                                   ARTICLE III
                    REPRESENTATION AND WARRANTIES OF SELLERS

         Sellers jointly and severally represent and warrant to Buyer that:

         3.1. Corporate Standing.

         Sellers are corporations or a limited  liability company duly organized
and validly  existing  and in good  standing  under the laws of their  states of
organization  as indicated  in the  introductory  paragraph  of this  agreement.
Sellers  have the power to own  their  property,  and to  execute,  deliver  and
perform this Agreement and each of the Transaction  Documents  applicable to it,
and to  carry  on  their  business  as now  being  conducted.  Sellers  are duly
qualified to do business in and are in good standing as foreign  corporations or
limited  liability  companies,  authorized to do business  under the laws of the
States of Utah.

         3.2. Authorizations; Binding Agreements.

         The execution, delivery and performance of this Agreement and the other
Transaction Documents by Sellers and each conveyance, assignment, agreement, and
other document  herein  contemplated  to be executed by Sellers,  have been duly
authorized by all necessary  corporate and limited  liability company action, as
the case may be. This  Agreement  and the other  Transaction  Documents  and the
conveyances, assignments, agreements, and other documents herein contemplated to
be executed,  delivered and performed by Sellers are, or will be upon execution,
legal,  valid and binding  obligations  of  Sellers,  duly  enforceable  against
Sellers in  accordance  with their terms  (subject,  however,  to the effects of
bankruptcy, insolvency,  reorganization,  moratorium, and similar laws from time
to time in effect relating to the rights and remedies of creditors as well as to
general  principles  of  equity).  This  Agreement  and  the  other  Transaction
Documents and the  conveyances,  assignments,  agreements,  and other  documents
herein  contemplated  to be executed,  delivered and performed by Sellers (i) do
not and will not result in

                                       6
<PAGE>

any  violation  of,  conflict with or default under the terms of any of Sellers'
organizational documents (nor, to the Knowledge of Sellers, does there exist any
condition  which upon the  passage of time or the giving of notice  would  cause
such  violation,  conflict or  default),  and (ii)  subject only to the Required
Consents,  do not and will not  result in any  violation  of,  conflict  with or
default  under  any  Contract  or any other  material  permit,  lease,  venture,
indenture, mortgage, agreement, contract, judgment, order or other obligation or
restriction  to which Sellers,  the Assets,  the Contracts or the conduct of the
maintenance  and operation of the Facility may be bound or  encumbered  (nor, to
the Knowledge of Sellers,  does there exist any condition which upon the passage
of time or the  giving  of  notice  would  cause  such  violation,  conflict  or
default).

         3.3. No Actions  Affecting  Enforcement  of the Agreement and the other
Transaction Documents.

         Except as set forth in Schedule 3.3,  there are no actions,  suits,  or
proceedings  pending,  or, to the  Knowledge  of  Sellers,  threatened,  against
Sellers in any court, or  administrative  governmental body or agency which will
affect in any  adverse  manner the  ability of Sellers to  execute,  deliver and
perform this Agreement and the other Transaction Documents.  Subject only to the
Required  Consents  and such  consents  which the  failure  to obtain  could not
reasonably be expected to have a Material  Adverse Effect,  Sellers has obtained
all  permits,  licenses,  franchises,  authorizations,   variances,  exemptions,
concessions,  leases, instruments, orders, consents or approvals of governmental
entities  and third  parties  necessary to  construct,  maintain and operate the
Facility  and to  execute,  deliver  and perform  this  Agreement  and the other
Transaction Documents.

         3.4. Taxes.

         All tax returns and reports  relating to the Assets,  the Contracts and
the conduct of the  construction,  maintenance  and  operation  of the  Facility
required by law (including all federal, state, and local property tax, severance
and  franchise  tax laws) to be filed by Sellers  prior to the Closing have been
timely filed or will be caused to be timely filed,  including  those tax returns
relating  to  periods  prior to  Closing  that are not yet due,  except for such
returns and reports  which the failure to file could not  reasonably be expected
to  have  a  material  adverse  effect  on  the  Assets,  the  Contracts  or the
maintenance  and  operation  of the  Facility.  All  taxes,  assessments,  fees,
interest,  penalties and other governmental  charges relating to the Assets, the
Contracts or the conduct of the  construction,  maintenance and operation of the
Facility  prior to Closing  have been paid when due and  payable or payment  has
been provided for, except for such taxes, assessments, fees, interest, penalties
and other governmental  charges which the failure to pay could not reasonably be
expected to have a material  adverse effect on the Assets,  the Contracts or the
construction, maintenance and operation of the Facility.

         3.5. Brokers or Finders Fees.

         Except  as set  forth in  Schedule  3.5,  there  are no  obligation  or
liability,  contingent  or  otherwise,  for brokers or finders  fees  created by
Sellers with respect to the matters provided for in this Agreement and the other
Transaction  Documents.  No  obligation or liability for brokers or

                                       7
<PAGE>

finders fees created by Sellers with respect to the matters provided for in this
Agreement and the other  Transaction  Documents shall be imposed upon Buyer, the
Assets or the Contracts.

         3.6. No Imposition of Liens.

         The execution, delivery and performance of this Agreement and the other
Transaction Documents by Sellers shall not result in the imposition of any Lien,
other than Permitted  Liens,  upon any of the Assets,  the Contracts or by which
the maintenance and operation of the Facility may be bound or encumbered.

         3.7. Title to Assets.

         Except as set forth on  Schedule  3.7,  as of the date  hereof,  Carbon
Synfuel, L.L.C. owns, and as of the Effective Time, it will own, good, valid and
marketable  title to all of the  Assets,  free and  clear of any and all  Liens,
except for Permitted Liens. As of the Effective Time and upon Buyer's payment of
the Purchase  Consideration pursuant hereto, good, valid and marketable title to
the Assets and holds a fully  enforceable  leasehold  interest  in the  Facility
Site,  free and clear of all Liens,  except for Permitted  Liens,  shall pass to
Buyer.

         3.8. Condition of Assets.

         Except as set forth on Schedule 3.8, as of the Closing Date,  the Fixed
Assets,  taken as a whole,  will be in good  operating  condition and repair and
substantially fit for the production of Section 29 Product at a rate of 360,0000
tons per year, and the Facility has been  constructed  in conformance  with that
degree of skill and judgment  normally  exercised by recognized  engineering and
construction  firms of similar size and  experience  to that of the  contractors
under the  Contracts,  and the Assets  comprising  the  Facility  conform to the
standards of material and  workmanship  prevailing in applicable  industries and
are free from material  defects in design,  material and  workmanship and are of
good quality.

         3.9. Pending Litigation.

         Except as  disclosed  on Schedule  3.9,  there are no  actions,  suits,
arbitrations or proceedings  currently  pending or, to the Knowledge of Sellers,
threatened  against the Assets or the  Contracts.  There are no  outstanding  or
unsatisfied judgments, orders or decrees to which Sellers are bound.

         3.10. Compliance With Laws.

         To the Knowledge of Sellers, Sellers are in compliance with all orders,
writs, injunctions,  decrees, judgments,  rulings, laws, rules or regulations of
any  governmental  entity to which  Sellers,  the  Assets or the  Contracts  are
subject,  the violation of which could reasonably be expected to have a Material
Adverse Effect.

         3.11. Status of Contracts.

                                       8
<PAGE>

         Schedule 1.12 is a true,  correct and complete list of all the material
contracts  entered into by Sellers relating  primarily to the Assets.  Except as
described in the Schedule  3.11,  the Contracts are valid and in good  standing,
and there is no violation of, conflict with or default under the Contracts,  the
consequence  of which could  reasonably  be expected to have a Material  Adverse
Effect. Sellers have not received any notice from any party to any Contract that
such party intends to terminate, cancel or refuse to renew the same or that such
party  intends to offset any amount due  thereunder or assert any defense to the
enforceability thereof.

         3.12. Consents.

         Schedule  1.36 is a true,  correct and  complete  list of all  Required
Consents.

         3.13. Books and Records.

         As of the Closing  Date,  the Books and Records  shall be complete  and
correct in all material respects.

         3.14. Environmental Conditions.

                  (a) Definitions. When used in this Section:

                           (i)  "Environmental  Laws" shall mean all  applicable
laws (including common law), rules, orders, regulations,  statutes,  ordinances,
codes,  decrees  and  requirements  of any  Governmental  Authority  regulating,
relating to or imposing liability  standards of conduct concerning any Hazardous
Materials or environmental protection.

                           (ii) "Governmental Authority" shall mean any federal,
state, local,  municipal or other governmental  department,  commission,  board,
bureau,   agency  or  instrumentality,   or  any  court,  in  each  case  having
jurisdiction over the applicable matter.

                           (iii)  "Hazardous  Materials"  shall  mean any  solid
waste,  petroleum or petroleum  product,  hazardous  material,  hazardous waste,
infectious  medical waste, or hazardous or toxic substance  defined or regulated
as such in any Environmental Law.

                  (b) Environmental  Representations  and Warranties.  Except as
set forth on Schedule 3.14 attached hereto:

                           (i)  Sellers   have  not  operated  the  Facility  or
conducted  business or other  activities at or from the Facility,  in connection
with the construction of the Facility or otherwise, in a manner that constituted
or constitutes a violation of any applicable Environmental Law;

                           (ii) There has been no  off-site  shipment or release
of any  Hazardous  Materials  by the Sellers on,  under,  at, from or in any way
affecting the Facility or any part thereof,  which off-site  shipment or release
gives rise to liabilities or obligations  under applicable  Environmental  Laws;
and

                                       9
<PAGE>

                           (iii) Sellers have not received any notices or claims
that  they are a  responsible  party in  connection  with  any  claim or  notice
asserted pursuant to 42 U.S.C. Section 9601 et seq., or any state superfund law,
in connection with the Facility.

                           (iv)  Seller  has  received  all  permits  as  may be
required under applicable  Environmental  Laws to operate the Facility as of the
Effective  Time,  and Seller is in compliance in all material  respects with the
terms and conditions of each such permits. Such permits shall be transferable to
Buyer and will be effective  immediately (or, subject to Section 5.1, as soon as
practicable) after the Closing.

         3.15. Liabilities.

         Except for liabilities underlying any Permitted Liens, the Sellers have
no  liabilities  which could  reasonably be expected to have a Material  Adverse
Effect  following  the  Closing,  nor has any  condition  existed  or any  event
occurred which could reasonably be expected to give rise to any such liability.

         3.16. Agreements with Related Persons.

         There are no contracts,  licenses,  agreements or arrangements with any
Affiliate of Sellers in connection with the construction, maintenance, ownership
and operation of the Facility, other than as disclosed on Schedule 3.16.

         3.17. Adequacy of the Purchased Assets.

         Except as  described  in  Schedule  3.8 the Assets  and the  Contracts,
together with (i) the technology and know-how being licensed to Buyer by Sellers
under the License and Binder Purchase Agreement,  (ii) the chemical binder to be
supplied to Buyer by Sellers  under the License and Binder  Purchase  Agreement,
and (iii) rights and assets  required for the  relocation of the Facility to the
site selected by Buyer  (including  but not limited to  relocation  construction
contracts,  feedstock raw materials,  applicable real property rights,  permits,
etc.) which Buyer may arrange for but which are not the subject of this Purchase
Agreement,  constitute  all of  the  assets  and  technology  rights  reasonably
expected to be necessary  for the  production  by Buyer of Section 29 Product at
the rate of 360,000 tons per year.

                                       10
<PAGE>

         3.18. Production Capacity.

         The  Facility  has a rated  capacity to produce  Product at the rate of
360,000 tons per year.

         3.19. Section 29 Issues.

         The  Facility was placed "in service" for purposes of the Code prior to
July 1, 1998  pursuant to a binding  contract  entered  into prior to January 1,
1997 and effective at all times thereafter through completion of construction.

                                   ARTICLE IV
                     REPRESENTATIONS AND WARRANTIES OF BUYER

         Buyer hereby represents and warrants to Sellers that:

         4.1. Organization and Standing.

         Buyer is a limited liability company duly organized,  validly existing,
and in good  standing  under the laws of the State of Delaware and has the power
to own its own property, and to execute,  deliver and perform this Agreement and
each of the  Transaction  Documents,  and to carry on its  business as now being
conducted.

         4.2. Authorizations; Binding Agreements.

         The  execution,  delivery,  and  performance  of this Agreement and the
other  Transaction  Documents  by  Buyer  and of  each  conveyance,  assignment,
agreement,  and other document herein  contemplated to be executed by Buyer have
been fully authorized by all necessary limited  liability  company action.  This
Agreement and the other Transaction Documents and the conveyances,  assignments,
agreements,  and other documents herein  contemplated to be executed,  delivered
and performed by Buyer are, or will be upon execution,  legal, valid and binding
obligations of Buyer,  duly  enforceable  against Buyer in accordance with their
terms   (subject,   however,   to  the   effects  of   bankruptcy,   insolvency,
reorganization,  moratorium,  and  similar  laws  from  time to  time in  effect
relating  to the  rights  and  remedies  of  creditors  as  well  as to  general
principles of equity).  This Agreement and the other  Transaction  Documents and
the   conveyances,   assignments,   agreements,   and  other  documents   herein
contemplated  to be executed,  delivered  and  performed by Buyer (i) do not and
will not result in any violation of, conflict with or default under the terms of
Buyer's  organizational  documents,  and  (ii)  subject  only  to  the  Required
Consents,  do not and will not  result in any  violation  of,  conflict  with or
default  under  any  material  permit,  lease,  venture,  indenture,   mortgage,
agreement, contract, judgment, order or other obligation or restriction to which
Buyer is bound (nor, to the  Knowledge of Buyer,  does there exist any condition
which  upon the  passage  of time or the  giving  of  notice  would  cause  such
violation, conflict or default).

                                       11
<PAGE>

         4.3. Brokers or Finders Fees.

         No  obligation or  liability,  contingent or otherwise,  for brokers or
finders fees  created by Buyer with respect to the matters  provided for in this
Agreement shall be imposed upon Sellers.

         4.4. No Action  Affecting  Enforcement  of the  Agreement and the other
Transaction Documents.

         There  are no  actions,  suits,  or  proceedings  pending,  or,  to the
Knowledge of Buyer,  threatened,  against Buyer in any court, or  administrative
governmental  body or agency which will affect in any adverse manner the ability
of  Buyer  to  execute,  deliver  and  perform  this  Agreement  and  the  other
Transaction Documents.

                                    ARTICLE V
                      CERTAIN UNDERSTANDINGS AND AGREEMENTS

         5.1. Best Efforts.

         Subject  to the  terms  and  conditions  herein  provided,  each of the
parties  hereto agrees to use its  commercially  reasonable  efforts to take, or
cause to be  taken,  all  action,  and to do,  or cause to be done,  all  things
necessary, proper and advisable under applicable Law, and to obtain the Required
Consents,   necessary  to  consummate  and  make   effective  the   transactions
contemplated by this Agreement. In case at any time after the Effective Time any
further  action is  necessary  or  desirable  to carry out the  purposes of this
Agreement,  the proper  officers and  directors of each party to this  Agreement
shall  take all such  necessary  action.  Buyer and  Sellers  will  execute  any
additional  instruments  necessary to consummate the  transactions  contemplated
hereby. To the extent that any permits referenced in Section 3.14(b)(iv) are not
transferred  at the  Closing  Date,  Sellers  will use  commercially  reasonable
efforts to cause such transfer to Buyer as soon as practicable after the Closing
Date.

         5.2. Public Announcements.

         Buyer and Sellers will consult with each other before issuing any press
release or otherwise  making any public statement with respect to this Agreement
and the  transactions  contemplated  herein,  and shall not issue any such press
release or make any such public  statement  prior to such  consultation or as to
which the other party reasonably objects, except as may be required by Law or by
obligations  pursuant  to any listing  agreement  with any  national  securities
exchange or inter-dealer quotation system.

         5.3. Confidentiality.

         Notwithstanding  the execution of this Agreement,  the  confidentiality
provisions  of the  Confidentiality  Agreement  shall  remain in full  force and
effect and shall survive the Closing.

                                       12
<PAGE>

         5.4. Taxes.

         Following  Closing,  Sellers  shall  timely  file all tax  returns  and
reports  relating  to  the  Assets,   the  Contracts  and  the  conduct  of  the
construction,  maintenance  and operation of the Facility prior to Closing which
have not  been  filed or were  not yet due to be  filed  prior to  Closing,  and
Sellers shall timely pay all taxes, assessments,  fees, interest,  penalties and
governmental charges relating to the Assets, the Contracts or the conduct of the
construction,  maintenance  and operation of the Facility prior to Closing which
have not been paid or were not yet due and payable prior to Closing.

         5.5. Private Letter Ruling Repurchase Option.

         Following Closing, Buyer plans to seek a Private Letter Ruling from the
IRS as to matters  relating to the Facility and Section 29 of the Code.  Sellers
shall  cooperate  with and assist Buyer,  as reasonably  requested by Buyer,  in
connection with seeking such Private Letter Ruling. In the event that Buyer does
seek such a Private  Letter Ruling and the IRS refuses or fails to issue it in a
form that is  satisfactory in the sole and absolute  discretion of Buyer,  Buyer
shall be entitled to elect (by giving  written notice to Sellers to such effect)
to terminate the obligation to make further royalty  payments under Section 3 of
the License and Binder Purchase Agreement and, in such event, Sellers shall have
the option to purchase,  within one year following  such notice,  the Assets and
Contracts (and assume obligations under the Contracts) from Buyer at the greater
of (i) the amount of Purchase  Consideration  theretofore paid by Buyer plus the
amount of any capital expenditures made by Buyer in connection with the Facility
and Assets  plus any  obligations  of Buyer in respect of the  Facility  and the
Assets  and  Contracts,  or (ii)  the  fair  market  value  of such  Assets  and
Contracts.

         5.6. Solvency Representations and Covenants.

         Each Seller  hereby  represents  and  warrants (as to itself only) that
prior to consummating the transactions  contemplated  herein,  (i) the aggregate
fair market value of such Seller's  assets exceeds the aggregate  amount of such
Seller's  liabilities,   including  contingent  liabilities  discounted  by  the
probability of their  occurrence,  (ii) such Seller is able to pay and is paying
its  debts  generally  as and when they  become  due in the  ordinary  course of
business,  (iii) such  Seller is  adequately  capitalized  for its  current  and
contemplated  business   undertakings,   and  (iv)  the  Purchase  Consideration
constitutes reasonably equivalent value and fair consideration for the Assets.

         Each  Seller   hereby   covenants   (as  to  itself  only)  that  after
consummating  the transaction  contemplated by the Purchase  Agreement,  (i) the
aggregate  fair market value of such  Seller's  assets will exceed the aggregate
amount of such Seller's liabilities, including contingent liabilities discounted
by the probability of their occurrence, (ii) such Seller will be able to pay and
will pay its debts  generally as and when they become due in the ordinary course
of  business,  and (iii) such  Seller will not be left with  unreasonably  small
capital for its then-current and contemplated business undertakings.

                                       13
<PAGE>

         5.7. Sublease and License.

         At, and as a condition to, the Closing, Buyer, Sellers and the landlord
under the Lease shall enter into a sublease,  license and consent agreement (the
"Sublease and License"), in form and substance to be agreed upon by the parties,
which  shall  provide  (i) for  Sellers to  sublease  the  portion of the leased
premises  under the Lease and grant those  rights  under the Lease to the extent
necessary to allow Buyer, without restriction,  to enter such premises, maintain
and operate the Facility and to remove the  Facility,  after which such sublease
shall  terminate,  (ii) for the granting of a license by the landlord  under the
Lease providing for the rights referenced in clause (i) above, and (iii) for the
consent  of the  landlord  under  the Lease to all of the  foregoing  and to the
ultimate  removal of the  Facility  from such  leased  premises  with no further
obligation on the part of Buyer. In addition,  Sellers shall assign to Buyer, to
the extent  assignable,  or  otherwise  shall assist  Buyer in  connection  with
obtaining, agreements providing for necessary utilities at such site and Sellers
shall  provide  necessary  security  services  relating to the  Facility and the
Facility Site during the period  following  the  Effective  Time and until Buyer
removes the Facility from the Facility Site.

                                   ARTICLE VI
            CONDITIONS PRECEDENT TO THE PAYMENT OBLIGATIONS OF BUYER

         Each and every  obligation of Buyer to be performed on the Closing Date
shall  be  subject  to  the  satisfaction,  prior  to or at the  Closing  of the
following express conditions precedent:

         6.1. Compliance with Agreement.

         Sellers shall have performed and complied in all material respects with
all of its  obligations  under  this  Agreement  which  are to be  performed  or
complied with by it prior to or on the Closing Date.

         6.2. Proceedings and Instruments Satisfactory.

         All  proceedings,  corporate  or  other,  to be  taken  by  Sellers  in
connection  with  the  transactions  contemplated  by  this  Agreement,  and all
documents  incident  thereto,  shall  be  reasonably  satisfactory  in form  and
substance to Buyer.

         6.3. No Litigation.

         No investigation, suit, action or other proceedings (including, without
limitation,  any petition  relating to any of the Sellers  under the  Bankruptcy
Code or similar  federal or state law) shall be threatened or pending before any
court or governmental agency that seeks restraint, prohibition, damages or other
relief in connection with this Agreement or the consummation of the transactions
contemplated hereby or in connection with obligations to creditors.

         6.4. Representations and Warranties.

         The  representations  and warranties  made by Sellers in this Agreement
shall be true and correct in all respects (as to representations  and warranties
qualified or limited by the term

                                       14
<PAGE>

"Material Adverse Effect," the word "material," or phrases of like import),  and
in all material respects (as to representations  and warranties not so qualified
or limited) as of the Closing Date with the same force and effect as though said
representations and warranties had been made on the Closing Date.

         6.5. Consents.

         All Required  Consents  applicable to Sellers shall have been obtained,
including  without  limitation  consents  relating  and required of the landlord
under the Lease pursuant to the Sublease and License.

         6.6. Tax Opinion.

         Buyer shall have  received an opinion of Hunton & Williams,  counsel to
Buyer,  in form and  substance  satisfactory  to Buyer,  with respect to matters
related to Section 29 of the Code.

                                   ARTICLE VII
               CONDITIONS PRECEDENT TO THE OBLIGATIONS OF SELLERS

         Each and every  obligation  of Sellers to be  performed  on the Closing
Date  shall be  subject to the  satisfaction  prior to or at the  Closing of the
following express conditions precedent:

         7.1. Compliance with Agreement.

         Buyer shall have  performed and complied in all material  respects with
all of its  obligations  under  this  Agreement  which  are to be  performed  or
complied with by it prior to or on the Closing Date.

         7.2. Proceedings and Instruments Satisfactory.

         All proceedings, corporate or other, to be taken by Buyer in connection
with the transactions contemplated by this Agreement, and all documents incident
thereto, shall be reasonably satisfactory in form and substance to Sellers.

         7.3. No Litigation.

         No investigation,  suit, action or other proceeding shall be threatened
or  pending  before  any court or  governmental  agency  that  seeks  restraint,
prohibition,  damages or other relief in connection  with this  Agreement or the
consummation of the transactions contemplated hereby.

         7.4. Representations and Warranties.

         The  representations  and  warranties  made by Buyer in this  Agreement
shall be true and correct in all respects (as to representations  and warranties
qualified or limited by the term "Material Adverse Effect," the word "material,"
or phrases of like import),  and in all material respects (as to representations
and warranties not so qualified or limited) as of the Closing Date

                                       15
<PAGE>

with the same force and effect as though such representations and warranties had
been made on the Closing Date.

         7.5. Required Consents.

         All Required Consents applicable to Buyer shall have been obtained.

                                  ARTICLE VIII
                      INDEMNITIES AND ADDITIONAL COVENANTS

         8.1. Sellers' Indemnity.

         (a) Sellers  hereby  jointly  and  severally  indemnify  and hold Buyer
harmless  from and  against,  and  agree to  defend  promptly  Buyer  from,  and
reimburse Buyer for, any and all losses, damages, costs, expenses,  liabilities,
obligations and claims of any kind, including, without limitation, environmental
liabilities  (whether involving personal injury or property damage),  reasonable
attorneys'  fees and other legal  costs and  expenses  (hereinafter  referred to
collectively as "Losses"), that Buyer and any Affiliate of Buyer may at any time
suffer or incur, or become subject to, as a result of or in connection with: (i)
any breach or inaccuracy of any of the  representations  and warranties  made by
Sellers in this  Agreement  or any other  agreement or  instrument  delivered by
Sellers  pursuant  hereto;  (ii) any  failure of Sellers to carry out,  perform,
satisfy  and  discharge  any  of  its   covenants,   agreements,   undertakings,
liabilities or  obligations  under this Agreement or under any of the agreements
and instruments delivered by Sellers pursuant to this Agreement; (iii) claims by
third parties (including governmental authorities) against Buyer relating to the
construction,  operation  and  ownership  by  Sellers  of  the  Assets  and  the
performance  by Sellers under the Contracts in each case under this clause (iii)
for the period prior to the Effective  Time;  (iv) any violations of, or failure
to operate in accordance  with,  necessary  permits prior to the Effective Time;
(v) except as otherwise  provided in the Sublease and License,  all  obligations
and  liabilities  under  the  Lease;  and  (vi)  any  and  all  liabilities  and
obligations of Sellers;

         (b) In the event a claim  against  Buyer  arises that Buyer  reasonably
believes  is  covered by the  indemnity  provisions  of  Section  8.1(a) of this
Agreement,  notice shall be given promptly by Buyer to Sellers containing detail
reasonably sufficient for Sellers to identify the nature and basis of the claim.
Provided  that  Sellers  admit in writing to Buyer that such claim is covered by
the indemnity provisions of Section 8.1(a) hereof,  Sellers shall have the right
to contest and defend by all  appropriate  legal  proceedings  such claim and to
control all  settlements  (unless  Buyer agrees to assume the cost of settlement
and to forgo such  indemnity)  and to select lead  counsel to defend any and all
such  claims at the sole cost and expense of Sellers;  provided,  however,  that
Sellers may not effect any settlement that could result in any cost,  expense or
liability  to Buyer  unless  Buyer  consents in writing to such  settlement  and
Sellers  agree  to  indemnify  Buyer  therefor.  Buyer  may  select  counsel  to
participate  with Sellers'  counsel in any such defense,  in which event Buyer's
counsel shall be at its own sole cost and expense.  In connection  with any such
claim,  action or  proceeding,  the parties shall  cooperate with each other and
provide  each  other  with  access  to  relevant  books  and  records  in  their
possession.

                                       16
<PAGE>

         (c) Sellers shall not be required to indemnify and hold harmless  Buyer
pursuant  to Section  8.1(a)(i)  hereof in respect  of the  representations  and
warranties  made by  Sellers  herein  unless  such right to  indemnification  is
asserted by Buyer  (whether or not such Losses have actually  been  incurred) by
notice to Sellers within 12 months after the Closing Date, with the exception of
(i) the representations and warranties set forth in Sections 3.4 and 3.19, which
must be asserted by Buyer within the  applicable  statute of  limitations or any
extensions thereof required by any applicable authority relating to the taxes or
assessments giving rise to the Loss, plus 60 days, (ii) the  representations and
warranties set forth in Section 3.10, which must be asserted by Buyer within the
applicable  statute of limitations  for the violation of the underlying law that
forms the basis of such  claim,  plus 60 days,  (iii)  the  representations  and
warranties  set forth in Sections 3.1, 3.2, and 3.8, which shall be without time
limitation,  and (iv) the  representations  and  warranties set forth in Section
3.14 hereof, which must be asserted within 24 months after the Closing Date.

         (d)  Notwithstanding  the  foregoing,  Sellers shall not be required to
indemnify Buyer under Section  8.1(a)(i) in respect of the  representations  and
warranties   made  by  Sellers  unless  the  amount  of  all  Losses  for  which
indemnification  is sought by Buyer  under  Section  8.1(a)(i)  exceeds,  in the
aggregate,  $250,000,  in which event,  Sellers' indemnity  obligation hereunder
would apply to all such Losses.  Sellers' aggregate  indemnification  obligation
pursuant  to  Section   8.1(a)(i)   shall  in  no  event   exceed  the  Purchase
Consideration described in Section 2.2 and paid to Sellers.

         (e) The  indemnification  provided in this Section 8.1,  including  the
limitations with respect  thereto,  shall be the exclusive remedy for Buyer with
respect to Losses as a result of or in connection with the matters  described in
Section 8.1(a)(i), notwithstanding any provisions in this Agreement or any other
such agreement or instrument to the contrary.

         8.2. Buyer's Indemnity.

         (a) Buyer  hereby  indemnifies  and  holds  Sellers  harmless  from and
against,  and agrees to defend promptly Sellers from and reimburse  Sellers for,
any and all  Losses  that  Sellers  may at any time  suffer or incur,  or become
subject to, as a result of or in connection  with:  (i) any breach or inaccuracy
of any of the  representations and warranties made by Buyer in this Agreement or
any other agreement or instrument  delivered by Buyer pursuant hereto;  (ii) any
failure  by  Buyer to carry  out,  perform,  satisfy  and  discharge  any of its
covenants,  agreements,  undertakings,  liabilities  or  obligations  under this
Agreement  or under any of the  agreements  and  instruments  delivered by Buyer
pursuant  to this  Agreement;  and  (iii)  claims  by third  parties  (including
governmental   authorities)  against  Sellers  relating  to  the  operation  and
ownership by Buyer of the Assets for the period following the Effective Time.

         (b) In the event a claim against  Sellers arises that is covered by the
indemnity  provisions  of Section 8.2 of this  Agreement,  notice shall be given
promptly by Sellers to Buyer containing detail  reasonably  sufficient for Buyer
to identify  the nature and basis of the claim.  Provided  that Buyer  admits in
writing to Sellers  that such claim is covered by the  indemnity  provisions  of
Section  8.2  hereof,  Buyer  shall have the right to contest  and defend by all
appropriate legal proceedings such claim and to control all settlements  (unless
Sellers agrees to

                                       17
<PAGE>

assume the cost of settlement  and to forgo such  indemnity)  and to select lead
counsel to defend any and all such claims at the sole cost and expense of Buyer;
provided, however, that Buyer may not effect any settlement that could result in
any cost,  expense or liability to Sellers unless Sellers consents in writing to
such  settlement  and Buyer agrees to indemnify  Sellers  therefor.  Sellers may
select counsel to participate with Buyer's counsel in any such defense, in which
event  Sellers'  counsel  shall be at the sole cost and expense of  Sellers.  In
connection  with any  such  claim,  action  or  proceeding,  the  parties  shall
cooperate  with each other and provide each other with access to relevant  books
and records in their possession.

         (c) Buyer shall not be required to indemnify and hold harmless  Sellers
pursuant  to Section  8.2(a)(i)  hereof in respect  of the  representations  and
warranties made by Buyer herein unless such right to indemnification is asserted
by Sellers (whether or not such Losses have actually been incurred) by notice to
the Buyer within 12 months  after the Closing  Date,  with the  exception of the
representations  and warranties set forth in Sections 4.1 and 4.2 hereof,  which
shall be without time limitation.

         (d)  Notwithstanding  the  foregoing,  Buyer  shall not be  required to
indemnify Sellers under Section 8.2(a)(i) in respect of the  representations and
warranties   made  by  Buyer   unless   the  amount  of  all  Losses  for  which
indemnification  is sought by Sellers under Section  8.2(a)(i)  exceeds,  in the
aggregate,  $250,000,  in which event,  Buyer's indemnity  obligation  hereunder
would apply to all such Losses.

         (e) The  indemnification  provided in this Section 8.2,  including  the
limitations with respect thereto, shall be the exclusive remedy for Sellers with
respect to Losses as a result of or in connection with the matters  described in
Section 8.2(a)(i), notwithstanding any provisions in this Agreement or any other
such agreement or instrument to the contrary.

         8.3. Bulk Sales Compliance.

         To the extent  applicable,  Buyer hereby  waives  compliance by Sellers
with the provisions of the bulk sales law of any U.S.  jurisdiction,  and in any
event,  Sellers covenants and agrees to pay and discharge when due all claims of
any  governmental  entities and creditors of Sellers and its  subsidiaries  that
could be asserted against Buyer by reason of such non-compliance. Sellers agrees
to  indemnify  and hold  Buyer  harmless  from and  against  and shall on demand
reimburse  Buyer for any and all Losses  suffered by Buyer by reason of Sellers'
failure to pay and discharge any such claims.

         8.4. Additional Instruments.

         At any time and from time to time after the Closing,  at either party's
request and without further consideration, Sellers or Buyer, as the case may be,
shall execute and deliver such other instruments of sale, transfer,  conveyance,
assignment and  confirmation  and take such other action as Sellers or Buyer may
reasonably  deem necessary or desirable in order to more  effectively  transfer,
convey,  and assign to Buyer,  and confirm  Buyer's title to and interest in and
responsibility  and liability for, the Assets and Contracts and the consummation
of the transactions  contemplated herein. Without limiting the generality of the
foregoing,  Sellers  will

                                       18
<PAGE>

cooperate with and assist Buyer in renewing, or transferring,  into Buyer's name
those Permits for which Buyer requests such  assistance  and  cooperation at the
appropriate time for such renewal or transfer as determined by Buyer.

         8.5. Access to Books, Records and Employees.

         From and after the  Closing  Date,  Buyer  will  authorize  and  permit
Sellers and its respective representatives to have access during normal business
hours, upon reasonable notice and for reasonable  purposes and in such manner as
will not unreasonably  interfere with the conduct of Buyer's business,  to Books
and Records  within the control of Buyer that relate to the  Facility.  From and
after  the  Closing  Date,  Sellers  will  authorize  and  permit  Buyer and its
representatives  to have access during normal  business  hours,  upon reasonable
notice and for reasonable  purposes and in such manner as will not  unreasonably
interfere  with the  conduct of  Sellers'  business,  to all books and  records,
files,  documents and other correspondence  related to the Facility prior to the
Effective  Time,  which are not included among the Books and Records.  Buyer and
Sellers  agree to  maintain  all  books,  records,  files,  documents  and other
correspondence related to the Facility prior to the Effective Time in accordance
with their  respective  normal  document  retention  practices after the Closing
Date.

                                   ARTICLE IX
                                   TERMINATION

         9.1.     Termination.

         This  Agreement may be  terminated  and the  transactions  contemplated
hereby may be abandoned as follows: (a) at any time prior to the Closing Date by
mutual written agreement of Sellers and Buyer; or (b) by either Sellers or Buyer
if the  Effective  Time shall not have  occurred on or before  January 15, 2000,
provided,  however,  that the right to terminate this Agreement pursuant to this
clause (b) shall not be  available  to any party  whose  failure to fulfill  any
obligation  under  this  Agreement  has been the cause of, or  resulted  in, the
failure of the Effective Time to occur prior to such date.

         9.2. Rights on Termination; Waiver.

         (a) If this  Agreement  is  terminated  pursuant  to Section  9.1,  all
further  obligations  of the parties under or pursuant to this  Agreement  shall
terminated.

         (b) If any of the  conditions set forth in Article VI of this Agreement
have not been satisfied,  Buyer may nevertheless  elect to waive such conditions
and proceed with the consummation of the transactions  contemplated  hereby.  If
any of the  conditions  set forth in Article VII of this Agreement have not been
satisfied,  Sellers may nevertheless  elect to waive such conditions and proceed
with the consummation of the transactions  contemplated  hereby. The election by
Buyer or Sellers to terminate this  Agreement  pursuant to Section 9.1 (b) shall
not in any way affect the rights of such party  against  the other party for any
breach or default under this Agreement.

                                       19
<PAGE>

                                    ARTICLE X
                                  MISCELLANEOUS

         10.1.    Entire Agreement; Amendment.

         This Agreement and the documents referred to herein and to be delivered
pursuant hereto constitute the entire agreement  between the parties  pertaining
to the  subject  matter  hereof,  and  supersede  all prior and  contemporaneous
agreements, understandings, negotiations and discussions of the parties, whether
oral  or  written,  and  there  are  no  warranties,  representations  or  other
agreements  between the parties in connection  with the subject  matter  hereof,
except as specifically  set forth herein or therein.  No amendment,  supplement,
modification,  waiver or termination  of this Agreement  shall be binding unless
executed  in writing by the party to be bound  thereby.  No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a waiver of any
other provision of this Agreement, whether or not similar, nor shall such waiver
constitute  a  continuing  waiver  unless  otherwise  expressly  provided.   The
representations  and  warranties  of each  party  hereto  shall be  deemed to be
material and to have been relied upon by the other party.  The  representations,
warranties, covenants and agreements of Sellers and Buyer contained herein shall
survive the execution and delivery of this  Agreement  and  consummation  of the
transactions  contemplated hereby and, as to the representations and warranties,
shall be effective  until the relevant time  limitation for making any indemnity
claim with respect to such  representations  and  warranties  under Sections and
shall  have  been  reached  and  no  longer.  All  agreements,   understandings,
representations,  warranties and covenants made by Sellers herein shall be joint
and several obligations of Sellers.

         10.2. Expenses.

         Except as otherwise  specifically  provided herein, each of the parties
hereto shall pay the fees and expenses of their respective counsel,  accountants
and other  experts  and the  other  expenses  incident  to the  negotiation  and
preparation of this Agreement and consummation of the transactions  contemplated
hereby.

         10.3. Governing Law; Consent to Jurisdiction.

         This Agreement shall be construed and interpreted according to the laws
of the State of New York,  without regard to the conflicts of law rules thereof;
provided,  however,  that Section 5-1401 of the New York General Obligations Law
shall apply to this Agreement.  Each of the parties hereto, in respect of itself
and its properties,  agrees to be subject to (and hereby irrevocably submits to)
the  nonexclusive  jurisdiction  of the  United  States  federal  court  for the
Southern  District of New York or New York state court sitting in the Borough of
Manhattan, New York, in respect of any suit, action or proceeding arising out of
or relating to this  Agreement  or the  transactions  contemplated  herein,  and
irrevocably  agrees  that all  claims in  respect  of any such  suit,  action or
proceeding  may be heard and  determined in any such court.  Each of the parties
hereto irrevocably  waives, to the fullest extent it may effectively do so under
applicable  Law,  any  objection  to the  laying of the venue of any such  suit,
action or proceeding brought in any such court and any claim that any such suit,
action  or  proceeding  brought  in  any  such  court  has  been  brought  in an
inconvenient  forum.  Either party hereto may make service on the other

                                       20
<PAGE>

party by sending or  delivering  a copy of the process to the party to be served
at the address and in the manner  provided  for the giving of notices in Section
hereof.  Nothing in this Section , however,  shall affect the right of any party
to bring any action or proceeding  arising out of or relating to this  Agreement
in any other court or to serve legal  process in any other  manner  permitted by
law or in equity.

         10.4. Assignment.

         This Agreement and each party's  respective rights hereunder may not be
assigned, by operation of law or otherwise, without the prior written consent of
the other party  provided,  however,  that Buyer may assign this Agreement to an
Affiliate of Buyer without the consent of Sellers.

         10.5. Notices.

         All  communications,  notices and disclosures  required or permitted by
this Agreement shall be in writing and shall be deemed to have been given at the
earlier  of the  date  (a)  when  delivered  personally  or by  messenger  or by
overnight delivery service to an officer of the other party, (b) five days after
being mailed by registered or certified  United  States mail,  postage  prepaid,
return  receipt  requested,  or (c) when received via  telecopy,  telex or other
electronic  transmission,  in all cases  addressed  to the person for whom it is
intended  at his  address  set forth  below or to such other  address as a party
shall have  designated  by notice in  writing  to the other  party in the manner
provided by this Section:

If to Buyer:      DTE Kentucky, L.L.C.
                  425 South Main Street
                  Suite 201
                  Ann Arbor, Michigan 48104
                  Fax: (734) 668-9739
                  Attn:  Manager of Assets

With a copy to:   DTE Energy Services             Hunton & Williams
                  425 South Main Street           Riverfront Plaza, East Tower
                  Suite 201                       951 East Byrd Street
                  Ann Arbor, Michigan 48104       Richmond, Virginia 23219
                  Fax: (734) 668-1028             Fax:  (804) 788-8218
                  Attn: General Counsel           Attn:  Kenneth J. Alcott, Esq.

If to Sellers:    Covol Technologies, Inc.
                  3280 North Frontage Road
                  Lehi, Utah 84043
                  Fax:  (801) 768-4483
                  Attn:  Brent M. Cook

                                     and

With a copy to:   Covol Technologies, Inc.        Pillsbury Madison & Sutro LLP
                  3280 North Frontage Road        235 Montgomery Street
                  Lehi, Utah 84043                San Francisco, CA 94104
                  Fax:  (801) 768-4483            Fax:  (415) 983-1200
                  Attn:  General Counsel          Attn:  Linda C. Williams, Esq.

                                       21
<PAGE>

         10.6. Counterparts; Headings.

         This Agreement may be executed in several  counterparts,  each of which
shall be deemed an original, but such counterparts shall together constitute but
one and the same  Agreement.  The Table of  Contents  and  Article  and  Section
headings in this  Agreement are inserted for  convenience  of reference only and
shall not constitute a part hereof.

         10.7. Interpretation.

         Unless the context requires otherwise, all words used in this Agreement
in the singular number shall extend to and include the plural,  all words in the
plural  number  shall  extend to and include the  singular  and all words in any
gender shall extend to and include all genders.  All  references  to  contracts,
agreements,  leases or other  understandings or arrangements shall refer to oral
as well as written matters.  The specificity of any  representation  or warranty
contained  herein  shall  not be deemed  to limit  the  generality  of any other
representation or warranty contained herein.

         10.8. Severability.

         If any provision,  clause or part of this Agreement, or the application
thereof under  certain  circumstances,  is held  invalid,  the remainder of this
Agreement,  or the  application  of such  provision,  clause or part under other
circumstances, shall not be affected thereby.

         10.9. No Reliance.

         No  third  party  is  entitled  to rely on any of the  representations,
warranties and agreements contained in this Agreement.  Buyer and Sellers assume
no liability to any third party because of any reliance on the  representations,
warranties  and  agreements  of Buyer or Sellers  contained  in this  Agreement.
Nothing contained in this Agreement shall be construed as creating a partnership
or joint venture or any agency  relationship  between the parties hereto, or any
other relationship other than buyer and Sellers as provided herein.

         10.10. Parties in Interest.

         This Agreement shall be binding upon and inure solely to the benefit of
each party  hereto,  and  nothing in this  Agreement,  express  or  implied,  is
intended  to or shall  confer  upon any other  person any  rights,  benefits  or
remedies of any nature whatsoever under or by reason of this Agreement.

         10.11. Specific Performance.

         The parties  hereto  agree that  irreparable  damage would occur in the
event any of the  provisions of this  Agreement were not performed in accordance
with the  terms  hereof  and that

                                       22
<PAGE>

the parties shall be entitled to specific  performance  of the terms hereof,  in
addition to any other remedy at law or equity.

                [Remainder of this page intentionally left blank]

                                       23
<PAGE>

         IN  WITNESS  WHEREOF,  each  party  hereto  has  caused  this  Purchase
Agreement to be executed in its name by a duly authorized  officer as of the day
and year first above written.

                                  DTE KENTUCKY, L.L.C.

                                  By: /Kent L. McCargar/
                                     ---------------------------------------
                                  Its:  Vice President and Chief Financial
                                        Officer

                                  COVOL TECHNOLOGIES, INC.

                                  By:  /Kirk A. Benson/
                                     ---------------------------------------
                                  Its: Chairman and Chief Executive Officer

                                  SYNFUEL INVESTMENTS, INC.

                                  By:  /Brent M. Cook/
                                     ---------------------------------------
                                  Its:     President

                                  CARBON SYNFUELS, L.L.C.

                                  By:      Covol Technologies, Inc.

                                  By:   /Brent M. Cook/
                                     ---------------------------------------
                                  Its:     President

                                       24

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