Document:

STOCK PURCHASE AGREEMENT

     THIS STOCK PURCHASE AGREEMENT  (hereinafter referred to as the "Agreement")
is made  and  entered  into  this  15th day of  January,  1999,  by and  between
Nickleby's.com,  Inc., a Colorado  corporation  (hereinafter  referred to as the
"Company"),  on the one hand,  and Nickleby's  Auction  Gallery Ltd., a Colorado
corporation  (hereinafter  referred  to as  "Nickleby's"),  and  Bruce A.  Capra
(hereinafter referred to as the "Seller"), on the other hand.

                                    RECITALS:

     WHEREAS,  the Company  desires to pay the sum of  $47,832.50 in cash to the
Seller,  and the Seller  desires to receive said cash sum from the  Company,  in
consideration  of the  exchange  therefor by the Seller of all 5,100  issued and
outstanding shares of common stock, no par value per share (hereinafter referred
to as the "Nickleby's  Common Shares"),  of Nickleby's which are owned of record
and  beneficially by the Seller,  on the terms and subject to the conditions set
forth herein;

     NOW,  THEREFORE,  in consideration of the foregoing premises and the mutual
covenants,  agreements,  representations  and warranties  contained herein,  the
parties hereto agree as follows:

                                    ARTICLE 1
                     PAYMENT OF CASH AND PURCHASE OF SHARES
                     --------------------------------------

     At the Closing, as defined and to be held in accordance with the provisions
of Article 2 below,  the Company  agrees to pay the sum of $47,832.50 in cash to
the Seller and the Seller  agrees to receive said cash sum from the Company.  In
consideration  for the  payment  of the  aforesaid  sum of  cash  to the  Seller
pursuant to the  provisions of this  Agreement,  at the Closing the Seller shall
sell, assign, transfer, convey and deliver to the Company the stock certificate,
duly  executed,  endorsed  and/or  authenticated  for  transfer to the  Company,
evidencing  5,100  Nickleby's  Common Shares owned of record and beneficially by
him.

                                    ARTICLE 2
                                     CLOSING
                                     -------

     The consummation of the sale,  assignment,  transfer and conveyance to, and
purchase  and  acquisition  by, the  Company  of the  Nickleby's  Common  Shares
(hereinafter  referred to as the "Closing") shall occur at the offices of Cudd &
Associates,  1120 Lincoln Street, Suite #1310,  Denver,  Colorado 80203, at 1:00
p.m., Mountain Standard Time, on January 28, 1998, or at such other place and/or
on such other date not later than  February 28,  1998,  as the parties may agree
upon in writing (hereinafter  referred to as the "Closing Date"). If the Closing
fails to occur by January 28,  1999,  or by such later date to which the Closing

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<PAGE>

may be extended as provided hereinabove, then this Agreement shall automatically
terminate,  all parties  shall pay their own  expenses  incurred  in  connection
herewith  and no party  hereto  shall have any  further  obligations  hereunder;
provided,  however,  that no such  termination  shall constitute a waiver by any
--------   -------
party or parties which is not in default of any of his, its or their  respective
representations,  warranties or covenants  herein, of any rights or remedies he,
it or they might have at law if any other party or parties are in default of any
of his, its or their respective  representations,  warranties or covenants under
this Agreement.

     At or prior to the Closing, as conditions thereto,

     (a)  The Company shall deliver, or cause to be delivered, to the Seller:

          (i)       A cashier's check in the amount of $47,832.50.

          (ii)      The   certified  resolutions  of  the   Company's  Board  of
Directors specified in Section 7.3 (a) below.

     (b)  The Seller shall deliver to the Company:

          (i)       The  stock  certificate evidencing  5,100  Nickleby's Common
Shares  owned of record and  beneficially  by the Seller  which are being  sold,
assigned,  transferred  and conveyed to the  Company,  duly  executed,  endorsed
and/or authenticated for transfer to the Company.

          (ii)      The  certified  resolutions  of  the  Board  of Directors of
Nickleby's specified in Section 7.4 (a) below.

          (iii)     The  certificates of Nickleby's specified in Section 7.4 (b)
and (c) below.

                                    ARTICLE 3
                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY
                  ---------------------------------------------

     The Company  hereby  represents  and  warrants to the Seller as follows (it
being  acknowledged  that the Seller is entering into this Agreement in material
reliance upon each of the following representations and warranties, and that the
truth and  accuracy of each of which  constitutes  a condition  precedent to the
obligations of the Seller hereunder):

     3.1  Organization  and Corporate  Power.  The Company is a corporation duly
          ----------------------------------
organized,  validly existing and in good standing under the laws of the State of
Colorado.

     3.2  Authorization.   The  Company  has  full  power,  legal  capacity  and
          -------------
authority  to  enter  into  this  Agreement  and  all  attendant  documents  and
instruments necessary to consummate the transactions herein contemplated; and to
perform all of the  obligations to be performed by the Company  hereunder.  This
Agreement and all other agreements,  documents and instruments to be executed in
connection  herewith  by the Company  have been  effectively  authorized  by all
necessary  action,  corporate or  otherwise,  on the part of the Company,  which

                                       -2-
<PAGE>

authorizations  remain in full force and effect and have been duly  executed and
delivered by the Company, and no other corporate  proceedings on the part of the
Company are required to authorize the execution and delivery of this  Agreement,
such  other   agreements,   documents  and  instruments  and  the   transactions
contemplated  hereby.  This Agreement and such other  agreements,  documents and
instruments  have been duly  executed and  delivered  by the Company  and/or its
executive officer(s);  constitute the legal, valid and binding obligation of the
Company;  and are  enforceable  with respect to the Company in  accordance  with
their  respective  terms,  except  as  enforcement  thereof  may be  limited  by
bankruptcy,  insolvency,  reorganization,   priority  or  other  laws  or  court
decisions  relating to or affecting  generally  the  enforcement  of  creditors'
rights or affecting  generally the availability of equitable  remedies.  Neither
the execution and delivery of this Agreement, the consummation by the Company of
any of the  transactions  contemplated  hereby nor the compliance by the Company
with any of the  provisions  hereof will (i) conflict with or result in a breach
of, violation of or default under any of the terms,  conditions or provisions of
any note, bond, mortgage,  indenture,  license, lease, credit agreement or other
agreement,  document,  instrument or obligation (including,  without limitation,
any of the  Company's  charter  documents) to which the Company is a party or by
which the Company or any of the assets or properties of the Company may be bound
or (ii)  violate any  judgment,  order,  injunction,  decree,  statute,  rule or
regulation  applicable  to the Company or any of the assets or properties of the
Company.  To the best  knowledge of the Company,  no  authorization,  consent or
approval of any public body or authority is necessary  for the  consummation  by
the Company of the transactions contemplated by this Agreement.

     3.3  Investment  Representation.   The executive  officers and directors of
          --------------------------
the Company have the knowledge and experience in business and financial  matters
to meaningfully evaluate the merits and risks of the purchase and acquisition of
the Nickleby's  Common Shares in exchange and  consideration  for the payment of
$47,832.50 in cash as contemplated  hereby. The executive officers and directors
of the Company shall  conduct an  independent  review of the  business,  assets,
properties,  books and  records of  Nickleby's  for the  purpose  of  satisfying
themselves as to the truth, accuracy and completeness of the representations and
warranties  made by  Nickleby's  and the  Seller.  The  executive  officers  and
directors of the Company  understand and acknowledge that the Nickleby's  Common
Shares  were  originally  issued  to the  Seller  and  will be  sold,  assigned,
transferred and conveyed to the Company in the transaction  contemplated  hereby
without registration or qualification or other filings being made under the U.S.
Securities Act of 1933, as amended,  or any applicable state securities or "Blue
Sky" law, in reliance upon specific  exemptions  therefrom,  and in  furtherance
thereof the Company  represents that the Nickleby's  Common Shares will be taken
and  received by the Company  for its  account for  investment,  with no present
intention  of a  distribution  or  disposition  thereof to others.  The  Company
further acknowledges and agrees that the certificate representing the Nickleby's
Common Shares sold,  assigned,  transferred and conveyed to the Company shall be
subject  to a  stop-transfer  order  and shall  bear a  restrictive  legend,  in
substantially the following form:

     "THE  SECURITIES  REPRESENTED  BY  THIS  CERTIFICATE  WERE  ISSUED  WITHOUT
     REGISTRATION  UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), ARE
     "RESTRICTED  SECURITIES,"  AND MAY NOT BE  SOLD,  TRANSFERRED  OR  ASSIGNED
     EXCEPT PURSUANT TO AN EFFECTIVE  REGISTRATION STATEMENT UNDER THE ACT OR IN

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<PAGE>

     A TRANSACTION WHICH, IN THE OPINION OF COUNSEL SATISFACTORY TO THE COMPANY,
     IS NOT REQUIRED TO BE REGISTERED UNDER THE ACT."

     3.4  Disclosure.  Neither this Agreement, nor any  certificate,  exhibit or
          ----------
other written  document or statement,  furnished to the Seller by the Company in
connection with the transactions contemplated by this Agreement contains or will
contain any untrue statement of a material fact or omits or will omit to state a
material fact necessary to be stated in order to make the  statements  contained
herein or therein not misleading.

                                    ARTICLE 4
                  REPRESENTATIONS AND WARRANTIES OF THE SELLER
                  --------------------------------------------

     The Seller  hereby  represents  and  warrants to the Company as follows (it
being  acknowledged that the Company is entering into this Agreement in material
reliance upon each of the following representations and warranties, and that the
truth and  accuracy of each of which  constitutes  a condition  precedent to the
obligations of the Company hereunder):

     4.1  Authorization. The Seller has full power, legal capacity and authority
          -------------
to enter  into  this  Agreement  and all  attendant  documents  and  instruments
necessary to consummate the transactions herein  contemplated;  to sell, assign,
transfer,  convey and deliver the Nickleby's Common Shares to the Company and to
perform all of the obligations to be performed by him hereunder. All agreements,
documents and  instruments  to be executed in connection  herewith by Nickleby's
have  been  effectively  authorized  by  all  necessary  action,   corporate  or
otherwise, on the part of Nickleby's,  which authorizations remain in full force
and effect and have been duly executed and delivered by Nickleby's, and no other
corporate  proceedings  on the part of Nickleby's  are required to authorize the
execution  and delivery of such  agreements,  documents  and  instruments.  This
Agreement has been duly executed and  delivered by the Seller,  constitutes  the
legal,  valid and  binding  obligation  of the  Seller and is  enforceable  with
respect to the Seller in accordance with its terms, except as enforcement hereof
may be limited by bankruptcy, insolvency, reorganization, priority or other laws
or court  decisions  relating  to or  affecting  generally  the  enforcement  of
creditors' rights or affecting generally the availability of equitable remedies.
Neither the execution and delivery of this Agreement nor the consummation by the
Seller  and  Nickleby's  of any  of the  transactions  contemplated  hereby,  or
compliance by the Seller and Nickleby's with any of the provisions hereof,  will
(i) conflict with or result in a breach of, violation of or default under any of
the terms,  conditions  or provisions of any note,  bond,  mortgage,  indenture,
license,  lease,  credit agreement or other agreement,  document,  instrument or
obligation (including,  without limitation, any of Nickleby's charter documents)
to which either the Seller or  Nickleby's  are parties or by which the Seller or
Nickleby's or any of the assets or properties of the Seller or Nickleby's may be
bound or (ii) violate any judgment, order, injunction,  decree, statute, rule or
regulation applicable to either the Seller or Nickleby's or any of the assets or
properties of the Seller or Nickleby's.  To the best knowledge of the Seller and
Nickleby's,  no  authorization,  consent  or  approval  of any  public  body  or
authority is necessary for the  consummation by the Seller and Nickleby's of the
transactions contemplated by this Agreement.

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<PAGE>

     4.2  Ownership  of  Nickleby's.  The Seller  owns 5,100  Nickleby's  Common
          -------------------------
Shares,  constituting all of the issued and outstanding  shares of capital stock
of  Nickleby's,  free  and  clear of (i) any  lien,  charge,  mortgage,  pledge,
conditional sale agreement or other encumbrance of any kind or nature whatsoever
and (ii) any claim as to  ownership  thereof or any  rights,  powers or interest
therein by any third party,  whether legal or  beneficial,  and whether based on
contract,  proxy or other document or otherwise.  All of the  Nickleby's  Common
Shares have been duly  authorized  and  validly  issued and are  fully-paid  and
nonassessable.  Except  as set  forth  in  this  Section  4.2(a),  there  are no
warrants,  options,  calls,  commitments  or other rights to subscribe for or to
purchase from  Nickleby's  any capital  stock of  Nickleby's  or any  securities
convertible  into or exchangeable for any shares of capital stock of Nickleby's,
or any other  securities  or agreement  pursuant to which  Nickleby's  is or may
become  obligated  to  issue  any  shares  of its  capital  stock,  nor is there
outstanding any commitment, obligation or agreement on the part of Nickleby's to
repurchase,  redeem  or  otherwise  acquire  any of the  outstanding  shares  of
Nickleby's.

     4.3  Organization  and Corporate  Power.  Nickleby's is a corporation  duly
          ----------------------------------
organized,  validly existing and in good standing under the laws of the State of
Colorado, and is duly qualified and in good standing to do business as a foreign
corporation in each  jurisdiction  in which such  qualification  is required and
where the failure to be so qualified would have a materially adverse effect upon
Nickleby's.  Nickleby's  has all  requisite  corporate  power and  authority  to
conduct its  business as now being  conducted  and to own and lease the personal
property,  and to lease  the  real  property,  which  it now  owns  and  leases,
respectively.  The Articles of Incorporation of Nickleby's,  as amended to date,
certified by the  Secretary of State of Colorado,  and the Bylaws of  Nickleby's
certified by the  President  and the  Secretary of  Nickleby's,  which have been
delivered to the Company  prior to the execution  hereof,  are true and complete
copies thereof as in effect as of the date of this Agreement.

     4.4  Financial  Statements.  Attached  hereto  as  Exhibit  A is a true and
          ---------------------
complete  copy of the  unaudited  balance sheet of Nickleby's as of December 31,
1998 (the "Nickleby's Balance Sheet"),  which has been certified to by the chief
executive officer and the chief financial officer of Nickleby's.  The Nickleby's
Balance  Sheet (i) is derived  from the books and records of  Nickleby's,  which
books and records have been consistently  maintained in a manner which reflects,
and such  books and  records do fairly and  accurately  reflect,  the assets and
liabilities  of  Nickleby's,  (ii) fairly and  accurately  present the financial
condition  of  Nickleby's  on the date of such  statement,  and (iii)  have been
prepared  in  all  material  respects  in  accordance  with  generally  accepted
accounting principles consistently applied throughout the year involved.

     4.5  Subsidiaries.  Nickleby's  has no  subsidiaries  or  any  investments,
          ------------
directly or indirectly,  or other financial interest in any other corporation or
business organization,  joint venture or partnership of any kind whatsoever.  It
is understood and  acknowledged  by the Company,  however,  that the Seller owns
certain other business  organizations  and/or additional business enterprises in
formation or to be formed,  that the Seller may  hereafter  establish or acquire
additional  businesses  and  enterprises  and that no such  other or  additional
corporation,  business or enterprise is now a part of, or owned by, the Company,
nor shall the Company acquire any beneficial or equitable  interest in or to any

                                       -5-
<PAGE>

such other or additional corporation, business or enterprise as a consequence of
any of the transactions contemplated by this Agreement.

     4.6  Absence  of  Undisclosed  Liabilities.  Except  as and  to the  extent
          -------------------------------------
reflected or reserved against in the Nickleby's Balance Sheet, and as to matters
arising in the ordinary  course of the business of Nickleby's  since the date of
the Nickleby's Balance Sheet which are disclosed in Exhibit B hereto, Nickleby's
has no liability(s) or obligation(s) (whether accrued, to become due, contingent
or otherwise)  which  individually  or in the aggregate  could have a materially
adverse  affect on the business,  assets,  properties,  condition  (financial or
otherwise) or prospects of Nickleby's.

     4.7  Absence  of  Certain  Developments.  Since the date of the  Nickleby's
          ----------------------------------
Balance Sheet,  there has been (i) no materially adverse change in the condition
(financial  or   otherwise)  of  Nickleby's  or  in  the  assets,   liabilities,
properties,  business,  operations  or  prospects  of the  corporation;  (ii) no
declaration, setting aside or payment of any dividend or other distribution with
respect  to the  Nickleby's  Common  Shares  or  redemption,  purchase  or other
acquisition  of  any   Nickleby's   Common  Shares  or  any  split-up  or  other
recapitalization  relative  to  any  Nickleby's  Common  Shares  or  any  action
authorizing or obligating Nickleby's to do any of the foregoing;  (iii) no loss,
destruction or damage to any material  property or asset of Nickleby's,  whether
or not insured; (iv) no acquisition or disposition of assets (or any contract or
arrangement therefor), or any other transaction by Nickleby's otherwise than for
fair  value  and in the  ordinary  course  of  business;  (v)  no  discharge  or
satisfaction  by  Nickleby's  of any  lien  or  encumbrance  or  payment  of any
obligation or liability  (absolute or contingent) other than current liabilities
shown on the Nickleby's Balance Sheet, or current liabilities incurred since the
date thereof in the ordinary  course of business;  (vi) no sale,  assignment  or
transfer by  Nickleby's  of any of the tangible or  intangible  assets of either
corporation,  cancellation by Nickleby's of any debts, claims or obligations, or
mortgage,  pledge,  satisfaction  of any  assets to any lien,  charge,  security
interest or other  encumbrance  or waiver by  Nickleby's  of any rights of value
which,  in any such case, is material to the business of Nickleby's  (whether or
not in the  ordinary  course of  business);  (vii) no payment of any bonus to or
change in the  compensation of any director,  officer or employee of Nickleby's,
whether directly or by means of any bonus,  pension plan, contract or commitment
and no change in  employee  compensation,  whether  directly  or by means of any
bonus,  pension plan,  contract or  commitment;  (viii) no write-off or material
reduction in the  carrying  value of any asset which is material to the business
of  Nickleby's;  (ix) no  disposition  or lapse of rights  as to any  intangible
property  which is  material  to the  business  of  Nickleby's;  (x)  except for
ordinary  travel  advances,  no loans or extensions  of credit to  shareholders,
officers,  directors  or  employees  of  Nickleby's;  (xi)  no  entry  into  any
commitment or  transaction by Nickleby's  (including,  without  limitation,  any
borrowing or capital  expenditure)  involving an amount in excess of  $1,000.00;
(xii) no issuance of any capital  stock,  or of any other  security  convertible
into any of the capital stock, of Nickleby's;  or (xiii) any agreement to do any
of the things described in this Section 4.7.

     4.8  Real Property.  Except as may be set forth on  Exhibit  B,  Nickleby's
          -------------
neither owns, leases nor occupies any real property.

                                       -6-
<PAGE>

     4.9  Tangible  Personal  Property.  Exhibit B sets forth a complete list of
          ----------------------------
all items of tangible  personal  property owned or leased and used by Nickleby's
in the  current  conduct  of its  business.  Except as set forth on  Exhibit  B,
Nickleby's has, and at the Closing will have, good and marketable  title to, and
be in  possession  of,  all  such  items  of  personal  property  owned  by said
corporation,  free and clear of all title defects, mortgages,  pledges, security
interests,  conditional  sales agreements,  liens,  restrictions or encumbrances
whatsoever.  Included on Exhibit B is a list of all outstanding equipment leases
and maintenance  agreements to which  Nickleby's is a party as lessee,  with the
identities of the other parties to all such leases and agreements shown thereon.
All leases of  tangible  personal  property to which  Nickleby's  is a party and
which  are  material  to the  business  of  Nickleby's  are fully  effective  in
accordance with their respective  terms, and there exists no default on the part
of Nickleby's or termination  thereof,  except as may be set forth on Exhibit B.
Each  item  of  capital  equipment  which  is  used in the  current  conduct  of
Nickleby's  business is, and on the Closing Date will be, in good  operating and
usable condition and repair, ordinary wear and tear excepted, and is and will be
suitable for use in the ordinary  course of Nickleby's  business and fit for its
intended purposes, except as may be set forth on Exhibit B.

     4.10  Tax Matters.  Nickleby's has, since the inception of the corporation,
           -----------
duly filed all  Federal,  state,  county and local tax returns  required to have
been filed by the corporation in those jurisdictions where the nature or conduct
of the business of the corporation requires such filing and where the failure to
so file would be materially  adverse to the corporation.  Copies of all such tax
returns have been  furnished to the Company prior to the execution  hereof.  All
Federal, state, county and local taxes, including but not limited to those taxes
due with respect to  Nickleby's  properties,  income,  gross  receipts,  excise,
occupation,  franchise,  permit, licenses,  sales, payroll and inventory due and
payable as of the Closing by Nickleby's have been paid. No amount is required to
be reflected in the Nickleby's Balance Sheet as a liability or reserve for taxes
which are due but not yet payable are  sufficient for the payment of all accrued
and unpaid taxes of the types referred to hereinabove.

     4.11  Contracts and Commitments.   Nickleby's  has no contract,  agreement,
           -------------------------
obligation or commitment,  written or verbal, express or implied, which involves
a commitment  or liability in excess of $1,000.00 or for a term of more than six
months,  and no union  contracts,  employee or consulting  contracts,  financing
agreements, debtor or creditor arrangements, licenses, franchise, manufacturing,
distributorship  or  dealership  agreements,  leases or  bonus,  health or stock
option plans,  except as described on Exhibit B. True and complete copies of all
such contracts and other agreements listed on Exhibit B have been made available
to the Company prior to the execution hereof.  Neither Nickleby's nor the Seller
has any  knowledge  of any  circumstances  which  would  affect the  validity or
enforceability  of any of such contracts and other agreements in accordance with
their respective terms. Nickleby's and the Seller have performed and complied in
all material  respects with all obligations  required to be performed by them to
date under, and are not in default (without giving effect to any required notice
or grace period) under, or in breach of, the terms,  conditions or provisions of
any of such contracts and other agreements.  The validity and  enforceability of
any  contract or other  agreement  described  herein  shall not in any manner be
affected by the  execution  and delivery of this  Agreement  without any further
action.

                                       -7-
<PAGE>

     4.12  Patents,  Trade  Secrets  and  Customer  Lists.    Nickleby's  has no
           ----------------------------------------------
patents,  applications  for patents,  trademarks,  applications  for trademarks,
trade names,  licenses or service  marks  relating to the business of Nickleby's
except as set forth on Exhibit B hereto, nor does any present or former officer,
director  or  employee  of  Nickleby's  own any patent  rights  relating  to any
products  manufactured,  rented or sold by  Nickleby's.  Except as  disclosed on
Exhibit B, Nickleby's has the  unrestricted  right to use, free and clear of any
claims or rights of others, all trade secrets,  customer lists and manufacturing
and secret  processes  reasonably  necessary to the manufacture and marketing of
all products  made or proposed to be made by  Nickleby's,  and the continued use
thereof after the Closing by Nickleby's will not conflict with, infringe upon or
otherwise  violate  any  rights of  others.  Except as set forth on  Exhibit  B,
Nickleby's  has used or is making use of any  confidential  information or trade
secrets of any present or past employee of Nickleby's.

     4.13   No Pending  Material Litigation or Proceedings.  Except as disclosed
            ----------------------------------------------
on Exhibit B, there are no actions,  suits or proceedings  pending or threatened
against or affecting Nickleby's  (including actions,  suits or proceedings where
liabilities  may be  adequately  covered  by  insurance)  at law or in equity or
before or by any Federal,  state,  municipal or other  governmental  department,
commission,  court,  board,  bureau,  agency  or  instrumentality,  domestic  or
foreign,  or  affecting  any of the  officers  or  directors  of  Nickleby's  in
connection with the business,  operations or affairs of Nickleby's,  which might
result in any adverse  change in the business,  properties or assets,  or in the
condition  (financial or otherwise)  of  Nickleby's,  or which might prevent the
sale of the  Nickleby's  Common  Shares  pursuant to this  Agreement.  Except as
disclosed on Exhibit B,  Nickleby's has not, during the three (3) years prior to
the Closing Date,  been threatened  with any action,  suit,  proceeding or claim
(including  actions,  suits,  proceedings or claims where its liabilities may be
adequately covered by insurance) for personal injuries allegedly attributable to
products sold or services performed by Nickleby's  asserting a particular defect
or hazardous  property in any of  Nickleby's  respective  products,  services or
business practices or methods,  nor has Nickleby's been a party to or threatened
with  proceedings  brought by or before any  Federal  or state  agency;  and the
Company has no knowledge of any defect or hazardous  property  claimed or actual
in any such product,  service or business practice or method.  Nickleby's is not
subject to any  voluntary  or  involuntary  proceeding  under the United  States
Bankruptcy Code and has not made an assignment for the benefit of creditors.

     4.14   Insurance.   Nickleby's maintains insurance with reputable insurance
            ---------
companies on such of  Nickleby's  equipment,  tools,  machinery,  inventory  and
properties  as are usually  insured by companies  similarly  situated and to the
extent  customarily  insured,  and  maintains  products and  personal  liability
insurance,  workers'  compensation  insurance and such other  insurance  against
hazards,  risks and  liability  to persons  and  property  as is  customary  for
companies  similarly   situated.   A  true  and  complete  listing  and  general
description  of each of Nickleby's  insurance  policies as currently in force is
set forth on  Exhibit B hereto.  All such  insurance  policies  are,  and at the
Closing shall be, in full force and effect.

     4.15   Arrangements  with  Personnel.   Except  as  set forth on  Exhibit B
            -----------------------------
hereto,  no stockholder,  director,  officer or employee is presently a party to
any transaction with Nickleby's, including without limitation any contract, loan
or other  agreement or arrangement  providing for the furnishing of services by,
the rental of real or personal property from or to, or otherwise requiring loans

                                       -8-
<PAGE>

or payments to, any such stockholder,  director,  officer or employee, or to any
member  of  the  family  of  any  of  the  foregoing,  or  to  any  corporation,
partnership,  trust or other entity in which any stockholder,  director, officer
or  employee  or any  member  of the  family  of any of them  has a  substantial
interest or is an officer, director,  trustee, partner or employee. There is set
forth on Exhibit B a list showing (i) the name,  title,  date and amount of last
compensation  increase,  and aggregate  compensation,  including amounts paid or
accrued pursuant to any bonus,  pension,  profit sharing,  commission,  deferred
compensation  or other  plans or  arrangements  in effect as of the date of this
Agreement,  of each officer,  employee,  agent or contractor of Nickleby's whose
salary and other  compensation,  in the aggregate,  received from  Nickleby's or
accrued is at an annual  rate (or  aggregated  for the most  recently  completed
fiscal  year) in  excess  of  $1,000.00,  as well as any  employment  agreements
relating to any such persons; (ii) all powers of attorney from Nickleby's to any
person or entity;  (iii) the name of each person or entity  authorized to borrow
money or incur or  guarantee  indebtedness  on  behalf of  Nickleby's;  (iv) all
safes,  vaults and safe deposit  boxes  maintained by or on behalf of Nickleby's
and the names of all persons authorized to have access thereto; and (v) all bank
and  savings  accounts  of  Nickleby's  and the  names  of all  persons  who are
authorized  signatories  with respect to such accounts,  the capacities in which
they are authorized and the terms of their authorizations.

     4.16  Labor  Relations.  Nickleby's has no obligations under any collective
           ----------------
bargaining  agreement or other contract with a labor union, under any employment
contract or consulting  agreement or under any  executive's  compensation  plan,
agreement  or  arrangement,  nor is any union,  labor  organization  or group of
employees of  Nickleby's  presently  seeking the right to enter into  collective
bargaining with Nickleby's on behalf of any of the employees of the corporation,
except as set forth on Exhibit B. The  Company  has  furnished  to the Company a
copy of all written personnel policies,  including without limitation  vacation,
severance,  bonus, pension, profit sharing and commissions policies,  applicable
to any of Nickleby's employees.

     4.17  Compliance  with Laws.  Nickleby's  holds all  licenses,  franchises,
           ---------------------
permits and  authorizations  necessary for the lawful conduct of its business as
presently  conducted,  and has  complied  with all  applicable  statutes,  laws,
ordinances,  rules and  regulations  of all  governmental  bodies,  agencies and
subdivisions having,  asserting or claiming  jurisdiction over said corporation,
with respect to any part of the conduct of the business and corporate affairs of
the corporation.

     4.18  Relationships  with Customers and Suppliers.  No present  customer or
           -------------------------------------------
substantial  supplier to  Nickleby's  has indicated an intention to terminate or
materially  and  adversely  alter  its  existing   business   relationship  with
Nickleby's,  and the  Company  has no reason to believe  that any of  Nickleby's
present customers or substantial suppliers intends to do so.

     4.21  Disclosure.  Neither this Agreement, nor any certificate,  exhibit or
           ----------
other written  document or statement,  furnished to the Company by the Seller or
Nickleby's in connection  with the  transactions  contemplated by this Agreement
contains or will  contain any untrue  statement  of a material  fact or omits or
will omit to state a material  fact  necessary to be stated in order to make the
statements contained herein or therein not misleading.

                                       -9-
<PAGE>

                                    ARTICLE 5
            OBLIGATIONS OF NICKLEBY'S AND THE SELLER PRIOR TO CLOSING
            ---------------------------------------------------------

     Nickleby's  and the Seller hereby,  severally and not jointly,  covenant to
and agree with the Company that between the date hereof and the Closing:

     5.1  Access to Properties and Records.
          --------------------------------

     (a)  The  Seller  shall  cause  Nickleby's  to  give  to  the  Company, its
executive  officers and  directors  and their  authorized  representatives  full
access,  during  reasonable  business  hours,  in such a manner as not unduly to
disrupt normal business activities, to any and all of the premises,  properties,
contracts,  books,  records  and  affairs  of  Nickleby's,  and will  cause  the
executive  officers of  Nickleby's  to furnish any and all data and  information
pertaining  to the  businesses  of  Nickleby's  that the Company,  the executive
officers and directors of the Company and their authorized  representatives  may
from time to time reasonably require.

     (b)  Unless and until the transactions  contemplated by this Agreement have
been  consummated,  the Company,  the  executive  officers and  directors of the
Company and their  representatives  shall hold in confidence all  information so
obtained and if the  transactions  contemplated  hereby are not consummated will
return all documents hereinabove referred to and obtained from Nickleby's or the
executive   officers  and   directors  of   Nickleby's.   Such   obligation   of
confidentiality  shall not extend to any information which is shown to have been
previously  (i) known to the Company or the executive  officers and directors of
the Company;  (ii) generally known to others engaged in the trade or business of
Nickleby's;  (iii) part of public  knowledge  or  literature;  or (iv)  lawfully
received by the Company,  the executive officers and directors of the Company or
their authorized representatives from a third party.

     5.2  Corporate Existence, Rights and Franchises.  The Seller shall take all
          ------------------------------------------
necessary  actions to cause  Nickleby's to maintain in full force and effect the
corporate existence,  rights, franchises and good standing of said corporations.
No  change  shall  be  made  in the  Articles  of  Incorporation  or  Bylaws  of
Nickleby's.

     5.3  Insurance.  The  Seller  shall  take all  necessary  actions  to cause
          ---------
Nickleby's to maintain in force all of its existing insurance policies,  subject
only to variations in amounts  required by the ordinary  operation of Nickleby's
business.

     5.4  Conduct  of  Business  in  the  Ordinary Course.  The Seller shall not
          -----------------------------------------------
permit  to be done  any act  which  would  result  in the  breach  of any of the
covenants of the Seller or Nickleby's  contained herein or which would cause the
representations  and warranties of the Seller or Nickleby's  contained herein to
become  untrue  or  inaccurate  as of any date  subsequent  to the date  hereof.
Without  limiting the  generality  of the  foregoing,  the Seller shall take all
necessary actions to cause Nickleby's to (i) operate its business  diligently in
the  ordinary  course of  business  as an ongoing  concern and will use its best
efforts to preserve  intact  Nickleby's  organization  and operations at current
levels,  to retain the services of Nickleby's  present employees and to preserve
Nickleby's  relationships  with its  suppliers  and  customers and others having

                                      -10-
<PAGE>

business  relationships  with  Nickleby's;   (ii)  maintain  in  good  operating
condition,  ordinary  wear and  tear  excepted,  all of  Nickleby's  assets  and
properties which are in such condition as of the date hereof; (iii) maintain the
books,  accounts and records of  Nickleby's  in the usual,  regular and ordinary
manner on a basis consistent with past practice in recent periods;  (iv) refrain
from  entering  into  any  contract,  agreement,  sales  order,  lease,  capital
expenditure  or other  commitment of a value in excess of $1,000.00  (other than
purchases of raw  materials  and sales of  inventory  in the ordinary  course of
business),  or from  modifying,  amending,  canceling or terminating any of such
contracts, agreements, leases or other commitments presently in force, except as
expressly  contemplated  by this  Agreement,  without the prior  approval of the
Company  (which  approval  shall not be  unreasonably  withheld and which may be
verbal to be followed  by written  confirmation);  (v)  refrain  from paying any
bonus to any  employee,  officer or director  and from  declaring  or paying any
dividend, or making any other distribution in respect of, or from redeeming, the
Nickleby's  Common  Shares;  and (vi) refrain from issuing any capital  stock of
Nickleby's or any other securities convertible into such capital stock.

                                    ARTICLE 6
                  CONDITIONS TO THE OBLIGATIONS OF THE PARTIES
                  --------------------------------------------

     The  respective  obligations  of  the  parties  hereto  to  consummate  the
transactions  contemplated  hereby  shall be subject to the  fulfillment,  at or
prior to the Closing, of the following conditions:

     6.1  Regulatory  Approvals.  There  shall  have been  obtained  any and all
          ---------------------
permits,  approvals  and  qualifications  of, and there  shall have been made or
completed  all  filings,   proceedings  and  waiting  periods  required  by  any
governmental  body,  agency or regulatory  authority  which,  in the  reasonable
opinion of counsel to the Company,  Nickleby's and the Seller,  are required for
the consummation of the transactions contemplated hereby.

     6.2  No  Action  or  Proceeding.   No claim, action, suit, investigation or
          --------------------------
other proceeding shall be pending or threatened before any court or governmental
agency which presents a substantial  risk of the restraint or prohibition of the
transactions contemplated by this Agreement or the obtaining of material damages
or other relief in connection therewith.

     6.3  Obligations   of  Nickleby's  and  the  Seller.   The  obligations  of
          ----------------------------------------------
Nickleby's and the Seller hereunder to consummate the transactions  contemplated
by this  Agreement  are  expressly  subject to the  satisfaction  of each of the
further  conditions  set  forth  below,  any or all of which  may be  waived  by
Nickleby's and the Seller,  jointly and  severally,  in whole or in part without
prior  notice;  provided,  however,  that no such  waiver of a  condition  shall
                --------   -------
constitute a waiver by Nickleby's or the Seller of any other condition or of any
of their rights or  remedies,  at law or in equity,  if the Company  shall be in
default or breach of any of its  representations,  warranties or covenants under
this Agreement:

     (a)  Nickleby's  and the Seller shall have received  copies of  resolutions
(certified  as of the date of the  Closing  as being in full force and effect by
the Board of Directors of the Company) duly adopted by the Board of Directors of

                                      -11-
<PAGE>

the Company  adopting and approving this  Agreement,  which shall be in form and
substance reasonably satisfactory to the Seller, Nickleby's and their counsel.

     6.4  Obligations  of the Company.  The obligations of the Company hereunder
          ---------------------------
to consummate  the  transactions  contemplated  by this  Agreement are expressly
subject to the  satisfaction of each of the further  conditions set forth below,
any or all of which  may be waived by the  Company  in whole or in part  without
prior  notice;  provided,  however,  that no such  waiver of a  condition  shall
constitute  a waiver  by the  Company  of any other  condition  or of any of its
rights or remedies, at law or in equity, if the Seller or Nickleby's shall be in
default or breach of any of their representations, warranties or covenants under
this Agreement:

     (a)  The Company shall have received copies of resolutions (certified as of
the date of the  Closing  as being  in full  force  and  effect  by  appropriate
officers of  Nickleby's)  duly adopted by the Board of  Directors of  Nickleby's
adopting and  approving  this  Agreement,  which shall be in form and  substance
reasonably satisfactory to the Company and its counsel.

     (b)  The Seller and Nickleby's  shall have  performed  the  agreements  and
covenants  required to be  performed by them under this  Agreement  prior to the
Closing,  and there shall have been no material  adverse change in the condition
(financial  or  otherwise),   assets,  liabilities,   earnings  or  business  of
Nickleby's since the date hereof, and the  representations and warranties of the
Seller  and  Nickleby's  contained  herein  shall,  except  as  contemplated  or
permitted by this Agreement or as qualified in a writing dated as of the Closing
Date delivered by the Seller and Nickleby's to the Company, with the approval of
the Company indicated thereon (which writing is to be attached hereto as Exhibit
C), be true in all material respects on and as of the Closing Date as if made on
and as of such date, and the Company shall have received a certificate, dated as
of the  Closing  Date,  signed  by the  chief  executive  officer  and the chief
financial  officer of Nickleby's and by the Seller,  reasonably  satisfactory to
the Company, to such effect.

     (c)  The Company  shall  have  received  a  certificate  of the  Seller and
Nickleby's,  reasonably  satisfactory  to the  Company,  to the effect  that the
Seller and Nickleby's have performed the agreements and covenants required to be
performed by them under this Agreement prior to the Closing, that there has been
no material  adverse change in the condition  (financial or otherwise),  assets,
liabilities,  earnings or business of Nickleby's since the date hereof, and that
the representations and warranties of the Seller and Nickleby's contained herein
continue to be true in all material respects on and as of the Closing Date as if
made on and as of  such  date,  except  as  contemplated  or  permitted  by this
Agreement or as qualified in Exhibit C.

                                    ARTICLE 7
                      ADDITIONAL AGREEMENTS OF THE PARTIES
                      ------------------------------------

     7.1  Taxes and Expenses.
          ------------------

     (a)  Except as otherwise expressly  provided in subsection (b)  immediately
below, the Company, on the one hand, and the Seller and Nickleby's, on the other
hand,  shall each pay all of their own  respective  taxes,  attorneys'  fees and
other  costs  and  expenses  payable  in  connection  with or as a result of the

                                      -12-
<PAGE>

transactions  contemplated  hereby and the  performance  and compliance with all
agreements  and  conditions  contained  in  this  Agreement  respectively  to be
performed or observed by each of them.

     (b)  The  Company shall pay  any and  all  Colorado  taxes, if  any,  which
become due on account of the sale, assignment, transfer, conveyance and delivery
of the Nickleby's Common Shares to the Company.

     7.2  Expiration of Representations and Warranties.  The representations and
          --------------------------------------------
warranties  of the  Seller  and  Nickleby's  contained  herein  and in any other
document  or  instrument  delivered  by or on  behalf  of  them,  as such may be
qualified in Exhibit C, shall survive the Closing and any investigations made by
or on behalf of the Company  prior  thereto,  and shall remain in full force and
effect for a period of three (3) years after the date of Closing (the  "Warranty
Period") and thereupon expire.

     7.3  Indemnification.  The Seller  hereby  agrees to indemnify and hold the
          ---------------
Company  harmless  with  respect  to  any  and  all  claims,  losses,   damages,
obligations, liabilities and expenses, including, without limitation, reasonable
legal and other costs and expenses of investigating and defending any actions or
threatened actions,  which the Company may incur or suffer following the Closing
by reason of any  breach of any of the  representations  and  warranties  of the
Seller or Nickleby's contained herein,  during the Warranty Period following the
Closing  during  which any such  representation  and warranty  shall  survive as
provided  herein,   provided  that  the  Company  complies  with  the  following
indemnification procedure:

          (i)       The  Company shall  give written  notice  to the Seller of a
     claim for  indemnification  within the Warranty Period;  which notice shall
     set forth the amount involved in the claim for  indemnification and contain
     a reasonably  thorough  description of the facts  constituting the basis of
     such claim.

          (ii)      The Seller shall have a period of  thirty (30) days from the
     receipt of the notice  referred to above to respond to the indemnity  claim
     to the satisfaction of the Company.

          (iii)     If  a third party claim is asserted which might result  in a
     claim for indemnification  hereunder,  all information within the Company's
     knowledge or control relevant and material to the defense of any such claim
     shall  promptly  be  made  available  to  the  Seller  and  his  authorized
     representatives,  and the Company shall otherwise cooperate with the Seller
     in the defense of the claim. The Company shall not settle or compromise any
     such claim  without  the prior  written  consent of the Seller  unless suit
     shall have been  instituted  against the Company and the Seller  shall have
     failed, after reasonable notice of institution of the suit, to take control
     of such suit as provided  below.  If the Seller  admits in writing  that he
     will be liable to the Company with respect to the full amount and as to all
     material elements of a third party claim alleging damages, should the third
     party prevail in such suit,  the Seller shall have the right to assume full
     control of the defense of such claim. Otherwise, the Company shall have and

                                      -13-
<PAGE>

     retain the right to control the defense of such claim, and the Seller shall
     be  entitled  to  participate  in the  defense  of such claim only with the
     Company's consent.

                                    ARTICLE 8
                                  MISCELLANEOUS
                                  -------------

     8.1  Other Documents.  Each of the parties hereto shall execute and deliver
          ---------------
such  other and  further  documents  and  instruments,  and take such  other and
further  actions,  as  may  be  reasonably  requested  of  him  or  it  for  the
implementation  and consummation of this Agreement and the  transactions  herein
contemplated.

     8.2  Parties  in  Interest.  This Agreement shall be binding upon and inure
          ---------------------
to the benefit of the parties hereto, and the heirs,  personal  representatives,
successors  and assigns of all of them,  but shall not confer,  expressly  or by
implication, any rights or remedies upon any other party.

     8.3  Governing  Law.  This  Agreement  is made and shall be governed in all
          --------------
respects,  including  validity,  interpretation  and effect,  by the laws of the
State of Colorado.

     8.4  Notices.  All  notices,  requests or demands and other  communications
          -------
hereunder  must be in  writing  and  shall be  deemed  to have been duly made if
personally delivered or mailed, postage prepaid, to the parties as follows:

     (a)  If to the Company, to:

          Nickleby's.com, Inc.
          1422 Delgany Street, Suite #12
          Denver, Colorado 80202
          Attention:  Mr. Scott M. Thornock, President

          With copies to:

          Patricia Cudd, Esq.
          Cudd & Associates
          1120 Lincoln Street, Suite #1310
          Denver, Colorado 80203

     (b)  If to any of the Seller, to:

          Nickleby's Auction Gallery Ltd.
          6604 West 67th Avenue
          Arvada, Colorado  80003

          With copies to:

                                      -14-
<PAGE>

          Theodore H. Merriam, P.C.
          Abramovitz & Merriam
          1625 Broadway Street, Suite #770
          Denver, Colorado  80202

Any party  hereto may change his or its  address by written  notice to the other
parties given in accordance with this Section 8.4.

     8.5  Entire  Agreement.  This  Agreement  and the exhibits attached  hereto
          -----------------
contain the entire  agreement  between and among the parties and  supersede  all
prior agreements,  understandings and writings between or among the parties with
respect to the subject matter hereof and thereof. Each party hereto acknowledges
that  no  representations,   inducements,  promises  or  agreements,  verbal  or
otherwise,  have been made by any party,  or anyone  acting  with  authority  on
behalf of any party,  which are not embodied herein or in an exhibit hereto, and
that no other  agreement,  statement  or promise  may be relied upon or shall be
valid or binding.  Neither  this  Agreement  nor any term hereof may be changed,
waived,  discharged or terminated verbally. This Agreement may be amended or any
term hereof may be changed, waived,  discharged or terminated by an agreement in
writing signed by all parties hereto.

     8.6  No  Equitable Conversion.  Prior to the Closing, neither the execution
          ------------------------
of this Agreement nor the  performance of any provision  contained  herein shall
cause any party hereto to be or become liable in any respect for the  operations
of the business of any other party,  or the  condition of property  owned by any
other  party,  for  compliance  with  any  applicable   laws,   requirements  or
regulations of, or taxes,  assessments or other charges now or hereafter due to,
any  governmental  authority  or for any other  charges or  expenses  whatsoever
pertaining to the conduct of the business or the ownership,  title,  possession,
use or occupancy of any other party.

     8.7  Headings.  The captions and headings  used herein are for  convenience
          --------
only and shall not be construed as part of this Agreement.

     8.8  Attorneys' Fees.  In the event of any litigation  between or among the
          ---------------
parties  hereto,  the  non-prevailing  party or parties shall pay the reasonable
expenses,  including but not limited to the  attorneys'  fees, of the prevailing
party or parties in connection therewith.

     8.9  Counterparts.  This Agreement may be executed in counterparts, each of
          ------------
which  shall be  deemed  an  original  but all of  which  taken  together  shall
constitute but one and the same document.

     IN WITNESS  THEREOF,  the parties  hereto have duly  executed and delivered
this Agreement as of the day and year first above written.

THE COMPANY:                                     NICKLEBY'S:

NICKLEBYS.COM, INC.                              NICKLEBY'S AUCTION GALLERY LTD.

                                      -15-
<PAGE>

By: /s/ Scott M. Thornock                        By: /s/ Bruce A. Capra
    ----------------------------                     ---------------------------
    Scott M. Thornock, President                     Bruce A. Capra, President

THE SELLER:

By: /s/ Bruce A. Capra
    ----------------------------
    Bruce A. Capra, Individually

                                    EXHIBIT B

4.6  There is no response that is required to this Section.

                                      -16-
<PAGE>

                                    EXHIBIT C

7.2  There is no response that is required to this Section.

                                      -17-
<PAGE>NICKLEBYS.COM, INC.

                             STOCK OPTION AGREEMENT

     THIS STOCK  OPTION  AGREEMENT  (the  "Agreement")  is made and entered into
effective as of the 30th day of December,  1999,  by and between  Nicklebys.com,
Inc., a Colorado corporation (the "Company"),  899 Broadway, Suite #200, Denver,
Colorado 80203, and The Zueger Family Trust (the "Optionee"),  3177 South Parker
Road, Aurora, Colorado 80014.

     The Company  desires to provide the  Optionee  an  opportunity  to purchase
shares of its common stock,  $.0001 par value per share (the "Common Stock"), as
hereinafter provided.

     NOW, THEREFORE, in consideration of the mutual covenants and agreements set
forth herein, the receipt and sufficiency of which are hereby acknowledged,  the
parties hereto agree as follows:

     This Option and the Common Stock issuable upon exercise  hereof are subject
to the terms and conditions hereinafter set forth:

     1.   Definitions.  As  used in  this Agreement, the  following terms  shall
          -----------
mean:

          (a)  "Board" - the Board of Directors of the Company.

          (b)  "Common Stock" - the Common Stock, $.0001 par value per share, of
the Company.

          (c)  "Company"  -   Nicklebys.com, Inc.,  899  Broadway,  Suite  #200,
Denver, Colorado 80203.

          (d)  "Effective Date" - December 30, 1999.

          (e)  "Optionee" - The Zueger Family Trust.

          (g)  "Exercise Period" - from December 30, 1999, through and including
December 29, 2004.

          (h)  "Expiration Date" - December 29, 2004.

          (i)  "Option" - The right to  purchase  shares of Common  Stock of the
Company  as  provided  herein,  and  any options  delivered  in substitution  or
exchange therefor, as provided herein.

          (j)  "Purchase Price" - $.66 per share.

          (k)  "Shares" - 173,308 shares of Common Stock of the Company.

                                        1
<PAGE>

          (l)  "Subscription  and  Acknowledgment  Form" -  The form attached to
this Agreement as Exhibit "A."

     2.   Grant  of  Option.   Subject  to  the  terms  and  conditions  of this
          -----------------
Agreement,  the Company  hereby grants to the Optionee the right to purchase all
or any part of an aggregate of 173,308  shares of Common Stock of the Company at
the  Purchase  Price set forth in  Section 3 hereof and in  accordance  with the
schedule  set forth in  Section  5  hereof.  This  right to  purchase  Shares is
hereinafter referred to as the "Option."

     3.   Purchase  Price.   The purchase price of the shares of Common Stock of
          ---------------
the Company  issuable  pursuant to the exercise of this Option shall be $.66 per
Share (the "Purchase Price.")

     4.   Term of Option.   Notwithstanding  anything to the contrary  contained
          --------------
in this Agreement,  no option granted  hereunder shall be exercisable  after the
expiration of the Expiration Date.

     5.   Exercise.
          --------

          (a)  Time  of  Exercise.   This Option  may be exercised commencing on
               ------------------
the Effective  Date,  in whole or in part (but not as to a fractional  share) at
the  principal  executive  offices of the  Company,  at any time or from time to
time,  through and including  December 29, 2004;  provided,  however,  that this
Option shall expire and be null and void if not  exercised in the manner  herein
provided by 5:00 p.m., Mountain Standard Time, on December 29, 2004.

          (b)  Manner  of  Exercise.  This Option is exercisable at the Purchase
               --------------------
Price,  payable  in cash or by  cashier's  check  payable  to the  order  of the
Company,  subject to adjustment as provided in Section 6 hereof.  Upon surrender
of this  Option to the  Company  at its  principal  executive  offices  with the
annexed  Subscription  and  Acknowledgment  Form duly  executed,  together  with
payment of the  Purchase  Price for the  Shares  purchased  (and any  applicable
transfer taxes) at the Company's principal executive offices, the Optionee shall
be  entitled  to  receive  a  certificate  or  certificates  for the  Shares  so
purchased.  The Optionee hereby acknowledges and agrees to the taxable nature of
the event of the exercise of the Option and that the Optionee  will not hold the
Company responsible for the reporting or payment of such taxes.

          (c)  Delivery of Stock Certificates.  As soon as  practicable, but not
               ------------------------------
exceeding  five days after  complete  or partial  exercise of this  Option,  the
Company,  at its  expense,  shall cause to be issued in the name of the Optionee
(or  upon  payment  by  the  Optionee  of any  applicable  transfer  taxes,  the
Optionee's  assigns) a certificate or certificates  for the number of fully-paid
and  nonassessable  Shares to which the  Optionee  shall be  entitled  upon such
exercise,   together  with  such  other  stock  or  securities  or  property  or
combination  thereof to which the Optionee shall be entitled upon such exercise,
determined in accordance with Section 6 hereof.

          (d)  Record  Date  of Transfer of Shares.  Irrespective of the date of
               -----------------------------------
issuance and delivery of certificates for any stock or securities  issuable upon
the  exercise  of  this  Option,   each  person   (including  a  corporation  or
partnership)  in whose name any such  certificate  is to be issued shall for all

                                        2
<PAGE>

purposes  be  deemed  to have  become  the owner of record of the stock or other
securities represented thereby immediately prior to the close of business on the
date on which a duly executed Subscription Form containing notice of exercise of
this Option and payment of the Purchase Price is received by the Company.

     6.   Adjustment of Purchase Price.
          ----------------------------

     The Purchase Price shall be subject to adjustment as follows:

          (a)  In  case  the Company shall  (i) pay a dividend  in shares of its
capital  stock (other than an issuance of shares of capital  stock to holders of
Common  Stock who have elected to receive a dividend in shares in lieu of cash),
(ii) subdivide its outstanding shares of Common Stock, (iii) reduce, consolidate
or combine  its  outstanding  shares of Common  Stock  into a smaller  number of
shares or (iv)  issue by  reclassification  of its  shares  of Common  Stock any
shares of the Company,  the Purchase Price in effect  immediately  prior thereto
shall be adjusted to that amount determined by multiplying the Purchase Price in
effect  immediately  prior to such date by a  fraction,  of which the  numerator
shall be the number of shares of Common  Stock  outstanding  on such date before
giving   effect  to  such   division,   subdivision,   reduction,   combination,
consolidation or stock dividend and of which the denominator shall be the number
of shares of Common Stock after giving effect thereto.  Such adjustment shall be
made  successively  whenever any such effective date or record date shall occur.
An  adjustment  made  pursuant to this  subsection  (a) shall  become  effective
retroactively  to the Effective  Date  immediately  after the record date in the
case of a dividend and shall become  effective  immediately  after the effective
date in the case of a  subdivision,  reduction,  consolidation,  combination  or
reclassification.

          (b)  In case  the Company  shall issue  rights or  options to  all  or
substantially  all  holders of its  Common  Stock  entitling  them (for a period
expiring within 45 days after the record date mentioned  below) to subscribe for
or purchase shares of Common Stock (or securities convertible into Common Stock)
at a price per share (the "Offering  Price") less than the Purchase Price at the
record date mentioned  below, the Purchase Price shall be determined by dividing
the Purchase Price in effect immediately prior to such issuance by a fraction of
which the numerator shall be the number of shares of Common Stock outstanding on
the date of  issuance of such  rights or options  plus the number of  additional
shares of Common Stock offered for  subscription  or purchase,  and of which the
denominator  shall be the number of shares of Common  Stock  outstanding  on the
date of issuance of such rights or options  plus the number of shares  which the
aggregate Offering Price of the total number of shares so offered would purchase
at such fair market value. Such adjustment shall be made whenever such rights or
options are issued, and shall become effective retroactively,  immediately after
the record date for the  determination of shareholders  entitled to receive such
rights or options.

          (c)  In case the  Company shall distribute to all or substantially all
holders of its Common Stock evidence of its indebtedness, shares of any class of
the Company's stock other than Common Stock or assets (excluding cash dividends)
or rights or options to  subscribe  for or  purchase  shares of Common  Stock or
securities  convertible  into  Common  Stock  (excluding  those  referred  to in
subsection  (b)  above),  then in each such  case the  Purchase  Price  shall be
determined by dividing the Purchase  Price in effect  immediately  prior to such

                                        3
<PAGE>

issuance by a fraction,  of which the numerator  shall be the Purchase  Price on
the date of such  distribution  and of which the denominator  shall be such fair
market value per share of the Common Stock,  less the then fair market value (as
determined  by the  Committee,  whose  determination  shall be  conclusive,  and
described  in a statement,  which will have the  applicable  resolutions  of the
Board of Directors  attached thereto,  filed with the Company) of the portion of
the assets or  evidences of  indebtedness  or shares so  distributed  or of such
subscription rights or options applicable to one share of the Common Stock. Such
adjustment shall be made whenever any such distribution is made and shall become
effective retroactively  immediately after the record date for the determination
of stockholders entitled to receive such distribution.

          (d)  If  the Common  Stock issuable  upon the conversion of the Option
shall be changed  into the same or a different  number of shares of any class or
classes  of  stock,  whether  by  capital  reorganization,  reclassification  or
otherwise  (other than a subdivision  or combination of shares or stock dividend
provided for above, or a reorganization, merger, consolidation or sale of assets
provided  for in this  Section 6),  then,  and in each such event,  the Optionee
shall have the right  thereafter to convert such Option into the kind and amount
of shares of Common Stock and other securities and property receivable upon such
reorganization, reclassification or other change by the holders of the number of
shares of Common  Stock into which such  Option  might have been  converted,  as
reasonably   determined   by  the   Committee,   immediately   prior   to   such
reorganization, reclassification or change, all subject to further adjustment as
provided herein.

          (e)  If at any time  or from  time to  tim  there  shall be a  capital
reorganization  of the Common  Stock  (other  than a  subdivision,  combination,
reclassification or exchange of shares provided for elsewhere in this Section 6)
or a merger or consolidation of the Company with or into another corporation, or
the sale of all or substantially  all of the Company's  properties and assets to
any other person  (except as provided for in Section  6(f)),  then, as a part of
such reorganization,  merger,  consolidation or sale, provision shall be made as
reasonably  determined by the Committee so that the Optionee shall thereafter be
entitled to receive  upon  conversion  of such  Option,  the number of shares of
stock or  other  securities  or  property  of the  Company  or of the  successor
corporation  resulting  from such merger or  consolidation  or sale,  to which a
holder of Common Stock  deliverable  upon conversion would have been entitled on
such capital reorganization, merger, consolidation or sale.

          (f)  The adjustments provided for in this Section 6 are cumulative and
shall apply to successive  divisions,  subdivisions,  reductions,  combinations,
consolidations,  issues,  distributions  or  other  events  contemplated  herein
resulting in any adjustment under the provisions of this Section; provided that,
notwithstanding  any other  provision  of this  Section,  no  adjustment  of the
Purchase  Price  shall be  required  unless  such  adjustment  would  require an
increase  or  decrease  of at least 1% in the  Purchase  Price  then in  effect;
provided,  however,  that any adjustments which by reason of this subsection (f)
are not  required to be made shall be carried  forward and taken into account in
any subsequent adjustment.

          (g)  Notwithstanding  Sections 6(b) and (c) above, no adjustment shall
be made  in the  Purchase  Price  if  provision  is made  for  the  Optionee  to
participate  in such  distribution  as if the Optionee had  converted all of the
principal  balance of the Option  into  shares of Common  Stock at the  Purchase
Price in effect immediately prior to such distribution.

                                        4
<PAGE>

          (h)  Upon  each adjustment  of the Purchase Price,  the Company  shall
give prompt written  notice thereof  addressed to the Optionee at the Optionee's
address as shown on the records of the  Company,  which  notice  shall state the
Purchase Price resulting from such  adjustment and the increase or decrease,  if
any, in the number of shares  issuable upon the  conversion  of such  Optionee's
Option,  setting forth in reasonable  detail the method of  calculation  and the
facts upon which such calculation is based.

          (i)  In the  event  of  any  question  arising  with  respect  to  the
adjustments  provided  for in Section  6, such  question  shall be  conclusively
determined by an opinion of independent  certified public accountants  appointed
by the Company (who may be the auditors of the  Company) and  acceptable  to the
Optionee.  Such  accountants  shall have access to all necessary  records of the
Company,  and such  determination  shall be  binding  upon the  Company  and the
Optionee.

          (j)  The  Company  may,  in   its  sole  discretion  and  without  any
obligation to do so, reduce the Purchase  Price then in effect by giving fifteen
days' written notice to the Optionee. The Company may limit such reduction as to
its  temporal  duration  or may  impose  other  conditions  thereto  in its sole
discretion.

     7.   Acceleration of Right to Exercise Options.   Notwithstanding  anything
          -----------------------------------------
to the contrary contained herein regarding the time for exercise of this Option,
the following provisions shall apply:

          (a)  Mergers and Reorganizations.   If the Company or its shareholders
               ---------------------------
enter into an agreement to dispose of all or substantially  all of the assets of
the Company by means of a sale,  merger or other  reorganization or liquidation,
or  otherwise  in a  transaction  in  which  the  Company  is not the  surviving
corporation,  this Option shall become  immediately  exercisable with respect to
the full number of Shares subject to the Option during the period  commencing as
of the date of the  agreement  to  dispose  of all or  substantially  all of the
assets or stock of the  Company  and ending  when the  disposition  of assets or
stock  contemplated  by the agreement is consummated or this Option is otherwise
terminated in  accordance  with its  provisions,  whichever  occurs first.  This
Option shall not become  immediately  exercisable,  however,  if the transaction
contemplated in the agreement is a merger or reorganization in which the Company
will survive.

          (b)  Change  in  Control.   In  the  event of  a change  in control or
               -------------------
threatened  change  in  control  of  the  Company,   this  Option  shall  become
immediately  exercisable.  The term  "change in  control,"  for purposes of this
Section,  shall  refer to the  acquisition  of 20 per cent or more of the voting
securities  of the Company by any person or by persons  acting as a group within
the  meaning of Section  13(d)(3) of the  Securities  Exchange  Act of 1934,  as
amended;  provided  that no change in  control or  threatened  change in control
shall be deemed to have  occurred if, prior to the  acquisition  of, or offer to
acquire,  20 per cent or more of the voting securities of the Company,  the full
Board of  Directors  shall  have  adopted  by not less  than  two-thirds  vote a
resolution  specifically  approving such acquisition or offer. The term "person"
refers,  for  purposes  of this  Section,  to an  individual  or a  corporation,
partnership,   trust,   association,   joint  venture,  pool,  syndicate,   sole

                                        5
<PAGE>

proprietorship,  unincorporated  organization  or any other  form of entity  not
specifically  listed herein.  Whether a change in control is threatened shall be
determined solely by the Committee.

     8.   Restrictions on Transfer.
          ------------------------

          (a)  This Option may  not be  sold, assigned, transferred, pledged  or
otherwise  disposed of or encumbered in any manner  otherwise  than by will, the
laws of descent and distribution,  or pursuant to a qualified domestic relations
order as defined by the Code; provided, however, that the Optionee may assign or
transfer  this Option to members of his  immediate  family or to a trust for the
benefit of such members of his immediate  family and, during the lifetime of the
Optionee,  this Option may be exercised only by the Optionee or assignee, as the
case may be, or his legally  authorized  representative.  The Optionee shall not
have any right to sell,  assign,  transfer,  pledge or  otherwise  dispose of or
encumber this Option, and any attempted transfer,  sale,  assignment,  pledge or
encumbrance shall have no effect on the Company.  The Company may also require a
Optionee to furnish  evidence  satisfactory to the Company,  including a written
and  signed  representation  letter  and  consent  to be bound  by any  transfer
restrictions  imposed by law, legend,  condition or otherwise.  The Shares shall
not be issued with respect to any Option unless the exercise of the Option shall
comply  with the  terms  and  conditions  of the  Consulting  Agreement  and all
relevant  provisions of federal and state law,  including without limitation the
Securities  Act of 1933,  as  amended,  the  rules and  regulations  promulgated
thereunder and the  requirements of any stock exchange upon which the Shares may
then be listed,  and shall be further subject to the approval of counsel for the
Company with respect to such compliance.

          (b)  The  Optionee,  by his  acceptance  hereof,  represents,  opines,
covenants  and agrees that (i) the  Optionee  has  knowledge of the business and
affairs of the Company,  and (ii) this Option is being  acquired for  investment
and not with a view to the  distribution  hereof and that,  absent an  effective
registration statement under the Securities Act of 1933, as amended (the "Act"),
covering  the  disposition  of this  Option,  it will not be sold,  transferred,
assigned,  hypothecated  or otherwise  disposed of without  first  providing the
Company  with an opinion of counsel  (which may be counsel  for the  Company) or
other evidence,  reasonably  acceptable to the Company,  to the effect that such
sale, transfer, assignment,  hypothecation or other disposal will be exempt from
the  registration and prospectus  delivery  requirements of the Act, as amended,
and the  registration  or  qualification  requirements  of any applicable  state
securities  laws.  The  Optionee  consents  to the making of a  notation  in the
Company's  records  or giving to any  transfer  agent of the  Option an order to
implement such restriction on transferability.

          This  Option  shall bear the following  legend or a  legend of similar
import; provided, however, that such legend shall be removed, or not placed upon
the Option if such legend is no longer  necessary to assure  compliance with the
Act:

     "THIS OPTION HAS NOT BEEN REGISTERED WITH THE UNITED STATES  SECURITIES AND
     EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE BECAUSE IT IS
     BELIEVED  TO BE EXEMPT  FROM  REGISTRATION  UNDER THE ACT.  THIS  OPTION IS

                                        6
<PAGE>

     "RESTRICTED" AND MAY NOT BE RESOLD OR TRANSFERRED EXCEPT AS PERMITTED UNDER
     THE ACT PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM."

     9.   Information to Optionee.  The Company  shall furnish to the Optionee a
          -----------------------
copy of the annual  report,  proxy  statements and all other reports sent to the
Company's  shareholders.  Upon written request, the Company shall furnish to the
Optionee  a copy of its  most  recent  Annual  Report  on Form  10-KSB  and each
quarterly  report to  shareholders  issued since the end of the  Company's  most
recent fiscal year.

     10.  Payment of Taxes.  All Shares  issued upon the exercise of this Option
          ----------------
shall be validly issued,  fully-paid and nonassessable and the Company shall pay
all taxes and other  governmental  charges  (other  than income tax) that may be
imposed in respect of the issue or delivery  thereof.  The Company  shall not be
required, however, to pay any tax or other charge imposed in connection with any
transfer  involved in the issue of any  certificate for Shares in any name other
than that of the Optionee  surrendered  in connection  with the purchase of such
Shares,  and in such case the Company  shall not be required to issue or deliver
any stock  certificate  until  such tax or other  charge has been paid or it has
been  established to the Company's  satisfaction  that no tax or other charge is
due.

     11.  Reservation  of  Common Stock.  The Company shall at all times reserve
          -----------------------------
and keep available out of its  authorized  but unissued  shares of Common Stock,
solely for the purpose of issuance upon the exercise of this Option, such number
of shares of Common  Stock as shall be issuable  upon the exercise  hereof.  The
Company  covenants and agrees that,  upon exercise of this Option and payment of
the  Purchase  Price  thereof,  all Shares of Common  Stock  issuable  upon such
exercise shall be duly and validly issued, fully-paid and nonassessable.

     12.  Notices  to  Optionee.  Nothing  contained  in this  Option  shall  be
          ---------------------
construed as conferring upon the Optionee hereof the right to vote or to consent
or to receive notice as a shareholder in respect of any meetings of shareholders
for the  election  of  directors  or any other  matter or as having  any  rights
whatsoever as a shareholder of the Company. All notices, requests,  consents and
other  communications  hereunder shall be in writing and shall be deemed to have
been duly made when delivered or mailed by registered or certified mail, postage
prepaid, return receipt requested:

          (a)  If to the   Optionee, to the address of such Optionee as shown on
the books of the Company; or

          (b)  If  to the  Company, to the  address  set forth  in  Section 1(b)
hereof.

     13.   Replacement   of   Option.    Upon  receipt  of  evidence  reasonably
           -------------------------
satisfactory to the Company of the ownership of and the loss, theft, destruction
or mutilation of this Option and (in case of loss,  theft or  destruction)  upon
delivery of an indemnity  agreement in an amount reasonably  satisfactory to the
Company,  or (in the case of mutilation)  upon surrender and cancellation of the
mutilated Option,  the Company will execute and deliver,  in lieu thereof, a new
Option of like tenor.

                                        7
<PAGE>

     14.  Successors.  All  the  covenants,   agreements,   representations  and
          ----------
warranties  contained  in this Option  shall bind the  parties  hereto and their
respective  heirs,  executors,  administrators,   distributees,  successors  and
assigns.

     15.  Change;  Waiver.   Neither  this  Option  nor any term  hereof  may be
          ---------------
changed, waived,  discharged or terminated verbally but only by an instrument in
writing  signed by the party against which  enforcement  of the change,  waiver,
discharge or termination is sought.

     16.  Headings.   The section  headings  in  this Option  are  inserted  for
          --------
purposes of convenience only and shall have no substantive effect.

     17.  Law  Governing.  This Option shall for all  purposes be  construed and
          --------------
enforced in accordance  with, and governed by, the internal laws of the State of
Colorado, without giving effect to principles of conflict of laws.

     IN WITNESS WHEREOF,  the Company has caused this Option to be signed by its
duly  authorized  officer and this Option to be dated as of the date first above
written.

                                     NICKLEBYS.COM, INC.

                                     By: /s/ Bruce A. Capra
                                         ---------------------------------------
                                         Bruce A. Capra, Chief Executive Officer

                                        8
<PAGE>

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