Document:

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                               SECURITY AGREEMENT

                  HomeSeekers.com, Incorporated, a Nevada corporation with its
principal offices at 6490 South McCarran Boulevard, Suite 28-D, Reno, Nevada,
89509 ("Debtor"), and Bradley Rotter, Trustee of the Bradley N Rotter Self
Employed Pension Plan and Trust, with its offices at 1700 Montgomery, Suite 250,
San Francisco, California 94111 ("Secured Party") agree, effective as of the
25th day of January, 2001, as follows:

1. BACKGROUND AND PURPOSE.

         1.1 Debtor has executed a promissory note payable to Secured Party in
the original principal amount of Five Hundred Thousand Dollars ($500,000) (the
"Note").

         1.2 To secure Debtor's obligations under the Note, and Debtor's
obligations under this Agreement, Debtor has agreed to grant to Secured Party
security interest as provided below.

         1.3 The parties desire to set forth more fully the terms of this
Agreement.

2. GRANT OF SECURITY INTEREST. To secure Debtor's Obligations (as defined in
Paragraph 3 below), Debtor grants to Secured Party a security interest in the
Collateral (as defined in Paragraph 4 below).

3. OBLIGATIONS. For purposes of this Agreement, "Obligations" means any and all
debts, obligations and liabilities of Debtor to Secured Party arising out of, or
relating in any way to the Note, and any obligations of Debtor to Secured Party
pursuant to this Agreement, whether or not existing or arising after the date of
this Agreement, voluntary or involuntary, jointly owned with others, direct or
indirect, or absolute or contingent, and whether or not from time to time
increased, decreased, extinguished, created, or incurred.

4. COLLATERAL. For purposes of this Agreement, "Collateral" means:

                  a. All stock certificates and other ownership interests in
Holloway Publications, Inc., an Indiana corporation and Realestateforms.com,
Incorporated, a Nevada corporation.

                  b. All accounts, accounts receivable, contract rights and
general intangibles of or concerning Holloway Publications, Inc. and
Realestateforms.com, Incorporated, a Nevada corporation, including, without
limitation, all forms of payment, all present and future incomes, rents,
revenues, issues and profits, goodwill, license and license rights, bailment or
leasehold interests, whether as lessor or lessee, all causes of action and
recoveries for any loss in value of the real estate of Debtor or items of
property described in this Agreement, rights of and to security agreements and
other contracts or assignments providing security to Debtor, book debts,

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credits, indemnities, warranties or guarantees payable to Debtor upon loss or
damage of property, invention, designs, design registrations, trademarks, trade
styles, trade name, know-how, powers, privileges, logos, franchise rights,
payments in kind, advertising and promotional materials, trade secrets, patents,
patent rights, copyrights, patent applications, tax refunds, customer lists,
business and accounting records, including all ledger account cards, computer
tapes and disks and other computer information, in all cases whether now owned
or hereafter created or acquired by Debtor or in which Debtor may now have or
may after the date of this Agreement acquire an interest;

                  c. All proceeds and products of any of the personal property
described above, in any form, including, without limitation, proceeds of any
insurance relating to such collateral or fire and builder's risk insurance and
unrenewed insurance premiums, proceeds constituting of any of the above types of
collateral, all awards made in eminent domain proceedings or purchased in lieu
of such eminent domain proceedings, and proceeds of any tort cause of action in
existence, now or after the date of this Agreement and all replacements,
substitutions, renewals, returns, additions, accessions, rents, royalties,
issues, documents of ownership, and receipts for any of the foregoing.

The term "Collateral" is subject to all licenses previously granted by Debtor
and to all pre-existing contractual obligations of Debtor.

5. REPRESENTATIONS AND WARRANTIES. As a material inducement to Secured Party
under this Agreement, Debtor represents and warrants that the following are and
shall remain true and correct, except as specifically set forth in a schedule of
exceptions attached to this Agreement:

         5.1 TITLE. Debtor is the owner of all right, title, and interest in the
Collateral free and clear of all liens, encumbrances, and security interests,
except the security interest created by this Agreement.

         5.2 TRUTH. All information that Debtor has provided to Secured Party
concerning the Collateral is true and correct.

         5.3 NO DEFENSES. No defenses, offsets, claims, or counterclaims exist
against Debtor that may be asserted against Secured Party in any proceeding to
enforce Secured Party's rights in the Collateral.

         5.4 NO CONFLICT. The execution, delivery, and performance of this
Agreement by Debtor is not in violation of any applicable law or regulation or
contractual obligation of Debtor.

         5.5 FIRST PRIORITY LIEN. The liens granted to Secured Party under this
Agreement will constitute a first priority lien on the Collateral upon the
timely filing of a UCC-1 Financing Statement, subject to the release of such
collateral by William Tomerlin.

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         5.6 DUE AUTHORIZATION. Debtor has been duly authorized to execute and
deliver this Agreement, which is a valid and binding obligation by Debtor.

6. COVENANTS OF DEBTOR.

         6.1 PROTECTION OF SECURITY INTEREST. Contemporaneously with the
execution of this Agreement, Debtor shall properly execute and deliver to
Secured Party UCC-1 Financing Statements to enable Secured Party to perfect
Secured Party's security interest in the Collateral. Debtor agrees also to
execute, file, and record such other statements, notices, and agreements, take
such action and obtain such certificates and documents, in accordance with all
applicable laws, statutes, and regulations as may be necessary or advisable to
perfect, evidence, and continue Secured Party's security interest in the
Collateral.

         6.2 TRANSACTIONS INVOLVING COLLATERAL. Debtor shall not, without the
prior written consent of Secured Party, (a) sell, offer to sell, or otherwise
transfer the Collateral except in the ordinary course of business, or to pledge,
mortgage, encumber, or otherwise permit the Collateral to be subject to any
lien, security interest, or charge, other than the security interest created by
this Agreement.

         6.3 COMPLIANCE WITH LAWS. Debtor shall comply with all laws, statutes,
and regulations pertaining to the Collateral.

         6.4 TAXES, ASSESSMENTS, AND LIENS. Debtor shall pay when due all taxes,
assessments, and liens with regard to the Collateral.

7. AUTHORIZED ACTION BY SECURED PARTY. Debtor irrevocably appoints Secured Party
as Debtor's attorney in fact to do any act that Debtor is obligated to do
pursuant to this Agreement to preserve or protect the Collateral and to
preserve, protect, or establish Secured Party's lien on the Collateral. Debtor
further irrevocably appoints Secured Party to exercise such rights and powers as
Debtor might exercise with respect to the Collateral following an Event of
Default, as defined below. These powers shall include without limitation the
right to (a) collect by legal proceedings or otherwise, and endorse, receive,
and receipt all dividends, interest, payments, proceeds, and other sums and
property now or after the date of this Agreement payable on account of the
Collateral, (b) transfer the Collateral to Secured Party's own or Secured
Party's nominee's name, and (c) make any compromise or settlement and take any
action Secured Party deems advisable with respect to the Collateral. Debtor
agrees to reimburse Secured Party on demand for any costs and expenses,
including without limitation attorney fees, which Secured Party may incur while
acting as Debtor's attorney in fact under this Agreement, all of which costs and
expenses are included in the Obligations secured by this Agreement. Secured
Party shall have no obligation to act pursuant to this paragraph and shall not
be required to make any

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presentment, demand, or protest, or give any notice or take any action to
preserve any rights against any other person in connection with the
Collateral.

8. DEFAULTS AND REMEDIES.

         8.1 EVENT OF DEFAULT. Any of the following events or conditions shall
constitute an Event of Default by Debtor under this Agreement:

                  a. Default in payment of the obligations in accordance with
the terms of the Note;

                  b. Default in the performance of any Obligations or breach of
any agreement, representation, or warranty contained in this Agreement;

                  c. Any levy or proceeding against the Collateral or Debtor's
interest in the Collateral, except if Debtor is conducting appropriate
proceedings in good faith to contest the levy or proceeding; or

                  d. The filing of a petition by or against Debtor under the
provisions of the Bankruptcy Code.

         8.2 REMEDIES. Upon the occurrence of an Event of Default, Secured
Party:

                           a. Shall have and may exercise the right to sell or
otherwise dispose of all or a portion of the Collateral, and to apply the
proceeds of such sale or disposition in the order following to (i) the expenses
of selling or otherwise disposing of the Collateral and the reasonable
attorneys' fees and legal expenses incurred by the Secured Party; and (ii) the
satisfaction of the Obligations.

                           b. Shall have and may exercise all other rights and
remedies accorded to Secured Party by the Nevada Revised Statutes;

                           c. May declare all unperformed Obligations, in whole
or in party, of Debtor immediately due and payable without demand or notice; and

                           d. May require Debtor to take any and all action
necessary to make the Collateral available to Secured Party.

         8.3 REMEDIES CUMULATIVE. All of Secured Party's rights and remedies,
whether evidenced by this Agreement or by any other writing, shall be cumulative
and may be exercised singularly or concurrently. Election by Secured Party to
pursue any remedy shall not exclude pursuit of any other remedy.

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9. WAIVER OF HEARING. Debtor expressly waives any constitutional or other right
to a judicial hearing prior to the time Secured Party takes possession or
disposes of the Collateral upon an Event of Default as provided in Paragraph 8
above.

10. ESCROW. The parties may convey all or a portion of the Collateral to an
escrow officer mutually agreed-upon by the parties (the "Escrow Officer")
pursuant to mutually agreeable escrow instructions that require the Escrow
Officer to sell the portion of the Collateral conveyed into escrow and to use
the proceeds of such sale(s) to satisfy the Obligations.

11. ADDITIONAL DOCUMENTATION; COOPERATION. Each party shall, upon the request of
the other, execute, acknowledge, and deliver to the other any instrument that
may be required to accomplish the intent of this Agreement. Each party agrees to
cooperate to effectuate the intent of this Agreement and shall take all
appropriate action necessary or useful in doing so.

12. NONRESPONSIBILITY OF SECURED PARTY. Secured Party is not responsible for the
preservation or exercise of any rights to, or granted by, any Collateral and is
not responsible for insuring any such Collateral or for the wear, destruction
(partial or total), or depreciation of Collateral in its possession.

13. MISCELLANEOUS.

         13.1 NOTICES. All notices, requests, consents and other communications
which are required or permitted hereunder shall be in writing and shall be
delivered personally, sent by facsimile transmission, or mailed by certified or
registered mail, postage prepaid, return-receipt requested (in which case it
shall be deemed given three (3) business days after mailing) to the addresses
listed in the preamble of this Agreement.

         13.2 ENTIRE AGREEMENT. This Agreement, together with the Note contains
the entire understanding of the parties in respect of its subject matter and
supersedes all prior agreements and understandings (oral or written) between or
among the parties with respect to such subject matter.

         13.3 ASSIGNMENT. The rights and obligations of this Agreement shall
bind and inure to the benefit of the parties and their respective successors and
assigns.

         13.4 COUNTERPARTS; FACSIMILE. This Agreement may be executed in several
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument. Executed copies of this
Agreement of this Agreement may be delivered by facsimile, and delivery of
executed facsimile copies to the parties and their counsel shall be deemed to be
a delivery of a duplicate original and sufficient delivery to result in entry to
this Agreement by the transmitting party.

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         13.5 GOVERNING LAW, JURISDICTION AND WAIVER OF VENUE. This Agreement
shall be governed by and construed in accordance with the laws of the State of
Nevada regardless of the fact that any of the parties hereto may be or may
become a resident of a different country, state, or jurisdiction. Any suit,
action, or proceeding arising out of, or with respect to, this Agreement shall
be filed in a court of competent jurisdiction within the County of Washoe, State
of Nevada or in the U.S. District Court for the District of Nevada, Northern
Division. The parties hereby consent to the personal jurisdiction of such courts
within the County of Washoe, State of Nevada and the U.S. District Court for the
District of Nevada, Northern Division. The parties hereby waive any objections
to venue in such courts with Washoe County, State of Nevada and the U.S.
District Court for the District of Nevada, Northern Division.

         13.6 ATTORNEYS' FEES. If any action at law or in equity is necessary to
enforce or interpret the terms of this Agreement, the prevailing party shall be
entitled to receive from the other its reasonable attorneys' fees, costs, and
necessary disbursements in addition to any other relief to which such party may
be entitled.

         13.7 SEVERABILITY. In case any provision of this Agreement shall, for
any reason, be held to be invalid, unenforceable, or illegal, such provision
shall be severed from this Agreement, and such invalidity, unenforceable or
illegality shall not affect any other provisions of this Agreement.

         13.8 WAIVER. Secured Party shall not be deemed to have waived any
rights under this Agreement unless such waiver is in writing and signed by
secured Party. No delay or omission on the part of Secured Party in exercising
any right shall operate as a waiver of such right or any other right.

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

                                    SECURED PARTY

                                    By: /s/ Bradley Rotter
                                        --------------------------------------
                                       Name:  Bradley Rotter
                                       Title: Trustee

                                    HOMESEEKERS.COM, INCORPORATED, a
                                    Nevada corporation

                                    By: /s/ Dennis P. Gauger
                                       --------------------------------------
                                       Name: Dennis P. Gauger
                                       Title: Chief Financial Officer<PAGE>

         THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
         1933 OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD OR OFFERED FOR
         SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE
         SECURITIES UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR
         AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH
         REGISTRATION IS NOT REQUIRED OR UNLESS THE COMPANY RECEIVES EVIDENCE
         SATISFACTORY TO THE COMPANY THAT SUCH SECURITIES WERE SOLD PURSUANT TO
         AND IN COMPLIANCE WITH RULE 144 OR RULE 144A.

                          HOMESEEKERS.COM, INCORPORATED

                              Common Stock Warrant
                             Expiring March 15, 2004

                                                                  March 15, 2001
         No.  121

         HOMESEEKERS.COM, INCORPORATED, a Nevada corporation (herein, together
with its successors and assigns, the "Company"), for value received, hereby
certifies that Bradley Rotter, Trustee of the Bradley N. Rotter Self Employment
Pension Plan and Trust (the "holder") or registered assigns, is entitled to
purchase from the Company, at any time or from time to time prior to 5:00 p.m.,
Eastern time, on March 15, 2004, 375,000 duly authorized, validly issued, fully
paid and nonassessable shares of Common Stock, par value $.001 per share, as
constituted on March 15, 2001 (the "Common Stock"), of the Company at a purchase
price of $ .1875 per share (the "Warrant Price"), all subject to the terms,
conditions and adjustments set forth below in this Warrant.

         1. EXERCISE OF WARRANT.

         1.1 MANNER OF EXERCISE. This Warrant may be exercised by the holder
hereof, in whole or in part, during normal business hours on any Business Day by
surrender of this Warrant to the Company at the office of the Company maintained
pursuant to Section 7.2(a), accompanied by a subscription in substantially the
form annexed hereto duly executed by such holder and (i) by payment in cash or
by certified or official bank check payable to the order of the Company or by
wire transfer in the amount obtained by multiplying (a) the number of shares of
Common Stock (without giving effect to any adjustment therein) designated in
such subscription by (b) the then applicable Warrant Price (as defined in
Section 2.1(e)), (ii) by instructing the Company to withhold and cancel a number
of shares of Common Stock then issuable upon exercise of this Warrant with
respect to which the excess of the fair market value of the shares of Common
Stock (as determined by the Board of Directors of the Company) over

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the Warrant Price for such canceled shares is at least equal to the Warrant
Price for the shares being purchased, or (iii) by any combination of the
foregoing, whereupon such holder shall be entitled to receive the number of
duly authorized, validly issued, fully paid and nonassessable shares of
Common Stock (or Other Securities) determined as provided in Section 2.

         1.2 WHEN EXERCISE EFFECTIVE. Each exercise of this Warrant shall be
deemed to have been effected immediately prior to the close of business on the
Business Day on which this Warrant shall have been surrendered to the Company as
provided in Section 1.1, and at such time the Person or Persons in whose name or
names any certificate or certificates for shares of Common Stock (or Other
Securities) shall be issuable upon such exercise as provided in Section 1.3
shall be deemed to have become the holder or holders of record thereof.

         1.3 DELIVERY OF STOCK CERTIFICATES, ETC. As soon as practicable after
the exercise of this Warrant, in whole or in part, and in any event within five
Business Days thereafter, the Company at its expense (including the payment by
it of any applicable issuance taxes) will cause to be issued in the name of and
delivered to the holder hereof or, subject to Section 6, as such holder (upon
payment by such holder of any applicable transfer taxes) may direct,

                  (a) a certificate or certificates for the number of duly
         authorized, validly issued, fully paid and nonassessable shares of
         Common Stock (or Other Securities) to which such holder shall be
         entitled upon such exercise plus, in lieu of any fractional share to
         which such holder would otherwise be entitled, cash in an amount equal
         to the same fraction of the Market Price per share on the Business Day
         next preceding the date of such exercise, and

                  (b) in case such exercise is in part only, a new Warrant or
         Warrants of like tenor, calling in the aggregate on the face or faces
         thereof for issuance of the number of shares of Common Stock equal
         (without giving effect to any adjustment therein) to the number of such
         shares called for on the face of this Warrant minus the number of such
         shares so designated by such holder upon such exercise as provided in
         Section 1.1.

         2. CERTAIN ADJUSTMENTS TO WARRANT.

         2.1 ADJUSTMENT FOR DIVIDENDS, DISTRIBUTIONS, SUBDIVISIONS, COMBINATIONS
OR CONSOLIDATION OF COMMON STOCK.

         2.1.1. STOCK DIVIDENDS, DISTRIBUTIONS OR SUBDIVISIONS. In the event the
Company shall issue additional shares of Common Stock in a stock dividend, stock
distribution or subdivision, the Warrant Price in effect immediately prior to
such stock dividend, stock distribution or subdivision shall, concurrently with
the effectiveness of such stock dividend, stock distribution or subdivision, be
proportionately decreased.

         2.1.2. COMBINATIONS OR CONSOLIDATIONS. In the event the outstanding
shares of Common Stock shall be combined or consolidated, by reclassification or
otherwise, into a lesser number of shares of Common Stock, the Warrant Price in
effect immediately prior to such combination or consolidation shall,
concurrently with the effectiveness of such combination or consolidation, be
proportionately increased.

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         2.2 ADJUSTMENT FOR MERGER OR REORGANIZATION, ETC. Subject to the
provisions of Section 13, in case of any consolidation or merger of the Company
with or into another Company or the conveyance of all, or substantially all, of
the assets of the Company to another corporation, this Warrant shall thereafter
be exercisable to purchase the number of shares of stock or other securities or
property to which a holder of the number of shares of Common Stock of the
Company deliverable upon exercise of this Warrant would have been entitled upon
such consolidation, merger or conveyance; and, in any such case, appropriate
adjustment (as determined by the Board of Directors) shall be made in the
application of the provisions herein set forth with respect to the rights and
interest thereafter of the holder of this Warrant to the end that the provisions
set forth in Section 2.1 and this Section 2.2 (including provisions with respect
to changes in and other adjustments of the Warrant Price) shall thereafter be
applicable, as nearly as reasonably may be, in relation to any shares of stock
or other property thereafter deliverable upon the exercise of this Warrant.

         3. NO DILUTION OR IMPAIRMENT. The Company (a) will not permit the par
value of any shares of stock receivable upon the exercise of any Warrant to
exceed the amount payable therefor upon such exercise, (b) will take all such
action as may be necessary or appropriate in order that the Company may validly
and legally issue fully paid and nonassessable shares of stock on the exercise
of the Warrants from time to time outstanding, and (c) will not take any action
that results in any adjustment of the Warrant Price if the total number of
shares of Common Stock (or Other Securities) issuable after such action, upon
the exercise of all of the Warrants, would exceed the total number of shares of
Common Stock (or Other Securities) then authorized by the Company's certificate
of incorporation and available for the purpose of issuance upon such exercise.

         4. REPORT AS TO ADJUSTMENTS. In each case of any adjustment or
readjustment in the shares of Common Stock (or Other Securities) issuable upon
the exercise or conversion of any Warrant, the Company at its expense will
promptly compute such adjustment or readjustment in accordance with the terms of
this Warrant and prepare a report setting forth such adjustment or readjustment
and showing in detail the method of calculation thereof and the facts upon which
such adjustment or readjustment is based, including a statement of the Warrant
Price in effect immediately prior to such issuance or sale and as adjusted and
readjusted (if required by Section 2) on account thereof. The Company will
forthwith (and in any event not later than 20 days following the occurrence of
the event requiring such adjustment) furnish a copy of each such report to each
holder of a Warrant, and will, upon the written request at any time of any
holder of a Warrant, furnish to such holder a like report setting forth the
Warrant Price at the time in effect and showing how it was calculated. The
Company also will keep copies of all such reports at its principal office and at
the office or agency required to be maintained by it pursuant to Section 7.2(a),
and will cause the same to be available for inspection at each such office
during normal business hours by any holder of a Warrant or any prospective
purchaser of a Warrant designated by the holder thereof.

         5. RESTRICTIONS ON TRANSFER.

         5.1 RESTRICTIVE LEGENDS. Except as otherwise permitted by this Section
5, each Warrant originally issued, each Warrant issued upon direct or indirect
transfer or in substitution for any Warrant pursuant to Section 7, each
certificate for Common Stock (or Other Securities) issued upon the exercise of
any Warrant, and each certificate issued upon the direct or indirect

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transfer of any such Common Stock (or Other Securities), shall be stamped or
otherwise imprinted with a legend in substantially the following form:

         THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
         1933 OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD OR OFFERED FOR
         SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE
         SECURITIES UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR
         AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH
         REGISTRATION IS NOT REQUIRED OR UNLESS THE COMPANY RECEIVES EVIDENCE
         SATISFACTORY TO THE COMPANY THAT SUCH SECURITIES WERE SOLD PURSUANT TO
         AND IN COMPLIANCE WITH RULE 144 OR RULE 144A.

         5.2 NOTICE OF PROPOSED TRANSFER; OPINIONS OF COUNSEL. Prior to any
transfer of any Restricted Securities that are not registered under an effective
registration statement under the Securities Act (other than a transfer pursuant
to Rule 144, Rule 144A or any comparable rule under such Act), the holder
thereof will give written notice to the Company of such holder's intention to
effect such transfer and to comply in all other respects with this Section 5.2.
Each such notice shall (a) describe the manner and circumstances of the proposed
transfer in sufficient detail to enable counsel to render the opinion referred
to below, and (b) designate counsel for the holder giving such notice, which
counsel shall be reasonably satisfactory to the Company. The holder giving such
notice will submit a copy thereof to the counsel designated in such notice. The
following provisions shall then apply:

                           (1) if in the written opinion of such counsel for the
         holder, obtained at the holder's sole cost and expense and a copy of
         which shall be delivered to the Company and shall be reasonably
         satisfactory in form, scope and substance to the Company, the proposed
         transfer may be effected without registration of such Restricted
         Securities under the Securities Act or applicable state securities
         laws, such holder shall thereupon be entitled to transfer such
         Restricted Securities in accordance with the terms of the notice
         delivered by such holder to the Company. Each Restricted Security or
         certificate, if any, issued upon or in connection with such transfer
         shall bear the appropriate restrictive legend set forth in Section 5.1
         unless, in the opinion of such counsel, such legend is no longer
         required to insure compliance with the Securities Act and applicable
         state securities laws; and

                           (2) if the opinion of such counsel rendered pursuant
         to the foregoing subdivision (1) is not to the effect that the proposed
         transfer may legally be effected without registration of such
         Restricted Securities under the Securities Act or applicable state
         securities laws (such opinion to state the basis of the legal
         conclusions reached therein), such holder shall not be entitled to
         transfer such Restricted Securities (other than a transfer pursuant to
         Rule 144, Rule 144A or any comparable rule under the Securities Act)
         until receipt by the Company of a further notice and a further opinion
         of counsel for such holder to the effect stated in subdivision (1)
         above or until registration of such Restricted Securities under the
         Securities Act and applicable state securities laws has become
         effective.

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         5.3 TERMINATION OF RESTRICTIONS. The restrictions imposed by this
Section 5 upon the transferability of Restricted Securities shall cease and
terminate as to any particular Restricted Securities when, in the opinion of
counsel for the Company, such restrictions are no longer required in order to
ensure compliance with the Securities Act. Whenever such restrictions shall
terminate as to any Restricted Securities, the holder thereof shall be entitled
to receive from the Company, without expense (other than transfer taxes, if
any), new securities of like tenor not bearing the applicable legend set forth
in Section 5.1.

         6. RESERVATION OF STOCK, ETC. The Company will at all times reserve and
keep available, solely for issuance and delivery upon the exercise of this
Warrant, the number of shares of Common Stock (or Other Securities) from time to
time issuable upon the exercise of all Warrants at the time outstanding. All
such securities shall be duly authorized and, when issued upon such exercise,
shall be validly issued and, in the case of shares, fully paid and nonassessable
with no liability on the part of the holders thereof.

         7. OWNERSHIP TRANSFER AND SUBSTITUTION OF WARRANTS.

         7.1 OWNERSHIP OF WARRANTS. The Company may treat the Person in whose
name any Warrant is registered on the register kept at the principal office of
the Company as the owner and holder thereof for all purposes, notwithstanding
any notice to the contrary, except that, if and when any Warrant is properly
assigned in blank, the Company may (but shall not be obligated to) treat the
bearer thereof as the owner of such Warrant for all purposes, notwithstanding
any notice to the contrary. Subject to Section 5, a Warrant, if properly
assigned, may be exercised by a new holder without first having a new Warrant
issued.

         7.2 OFFICE; TRANSFER AND EXCHANGE OF WARRANTS. (a) The Company will
maintain its principal office in Reno, Nevada or at such other location as it
designates in a written notice delivered to each registered holder of a Warrant
prior to any change of such location, and all notices, presentations and demands
in respect of this Warrant may be made upon it at such location. The Company may
designate from time to time by notice to the registered holder of this Warrant
an office or agency of the Company where such notices, presentations and demands
in respect of this Warrant may be made in lieu of the Company's principal
office.

                  (b) Upon the surrender of any Warrant, properly endorsed, for
         registration of transfer or for exchange at the principal office of the
         Company or the office of the Company maintained pursuant to Section
         7.2(a), the Company at its expense will (subject to compliance with
         Section 5, if applicable) execute and deliver to or upon the order of
         the holder thereof a new Warrant or Warrants of like tenor, in the name
         of such holder or as such holder (upon payment by such holder of any
         applicable transfer taxes) may direct, calling in the aggregate on the
         face or faces thereof for the number of shares of Common Stock called
         for on the face or faces of the Warrant or Warrants so surrendered.

         7.3 REPLACEMENT OF WARRANTS. Upon receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of any
Warrant (which may be a written statement as to such loss, theft, destruction or
mutilation) and (a) in the case of such loss, theft or destruction of any
Warrant, upon delivery of indemnity reasonably satisfactory to the Company in
form and amount, or (b) in the case of any such mutilation, upon surrender of
such Warrant for cancellation at the office of the Company maintained pursuant
to Section 7.2(a) or the principal

                                       5
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office of the Company, the Company at its expense will execute and deliver,
in lieu thereof, a new Warrant of like tenor.

         8. DEFINITIONS. As used herein, unless the context otherwise requires,
the following terms have the following respective meanings:

         "BUSINESS DAY" shall mean any day other than a Saturday, Sunday or any
other day on which U.S. Federal Reserve member banks are not open for business
in New York, New York.

         "COMMISSION" shall mean the Securities and Exchange Commission or any
other Federal agency at the time administering the Securities Act.

         "COMPANY" shall have the meaning specified in the opening paragraphs of
this Warrant, including any corporation that shall succeed to or assume the
obligations of the Company hereunder in compliance with Section 2.2.

         "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, or any
similar Federal statute, and the rules and regulations of the Commission
thereunder, all as the same shall be in effect at the time.

         "MARKET PRICE" shall mean, per share of Common Stock that the holders
of this Warrant shall be entitled to receive upon exercise thereof, on any date
specified herein, (a) the last sale price on such date of such Common Stock or,
if no such sale takes place on such date, the average of the closing bid and
asked prices thereof on such date, in each case as officially reported on the
principal national securities exchange on which such Common Stock is then listed
or admitted to trading, or (b) if such Common Stock is not then listed or
admitted to trading on any national securities exchange but is designated as a
national market system security by the National Association of Securities
Dealers, Inc., the last trading price of such Common Stock on such date, or (c)
if there shall have been no trading on such date or if such Common Stock is not
so designated, the average of the reported closing bid and asked prices of such
Common Stock on such date as shown by The Nasdaq Stock Market, Inc. and reported
by any member firm of the New York Stock Exchange selected by the Company, or
(d) if none of (a), (b) or (c) is applicable, a price per share thereof equal to
the fair value thereof determined in good faith by a resolution of the Board of
Directors of the Company as of a date that is within 15 days of the date as of
which the determination is to be made.

         "OTHER SECURITIES" shall mean any stock (other than Common Stock) and
other securities of the Company or any other Person (corporate or otherwise)
that the holder of this Warrant at any time shall be entitled to receive, or
shall have received, upon the exercise of this Warrant, in lieu of or in
addition to Common Stock, or that at any time shall be issuable or shall have
been issued in exchange for or in replacement of Common Stock or Other
Securities pursuant to Section 2 or otherwise.

         "PERSON" shall mean a corporation, an association, a partnership, an
organization or business, an individual, a government or political subdivision
thereof or a governmental agency.

         "RESTRICTED SECURITIES" shall mean (a) any Warrant bearing the
applicable legend set forth in Section 5.1, (b) any shares of Common Stock (or
Other Securities) issued upon any exercise of this Warrant that are evidenced by
a certificate or certificates bearing the applicable legend set

                                       6
<PAGE>

forth in such Section and (c) any shares of Common Stock (or Other
Securities) issued subsequent to any exercise of this Warrant as a dividend
or other distribution with respect to, or resulting from a subdivision of the
outstanding shares of Common Stock (or Other Securities) into a greater
number of shares by reclassification, stock splits or otherwise, or in
exchange for or in replacement of the Common Stock (or Other Securities)
issued upon such exercise, which are evidenced by a certificate or
certificates bearing the applicable legend set forth in such section.

         "SECURITIES ACT" shall mean the Securities Act of 1933, or any similar
Federal statute, and the rules and regulations of the Commission thereunder, all
as the same shall be in effect at the time.

         "WARRANT" shall have the meaning specified in the opening paragraphs of
this Warrant.

         "WARRANT PRICE" shall have the meaning specified in the opening
paragraphs of this Warrant.

         9. REMEDIES. The Company stipulates that the remedies at law of the
holder of this Warrant in the event of any default or threatened default by the
Company in the performance of or compliance with any of the terms of this
Warrant are not and will not be adequate, and that, to the extent permitted by
applicable law, such terms may be specifically enforced by a decree for the
specific performance of any agreement contained herein or by an injunction
against a violation of any of the terms hereof or otherwise.

         10. NO RIGHTS OR LIABILITIES AS STOCKHOLDER. Nothing contained in this
Warrant shall be construed as conferring upon any holder hereof any rights as a
stockholder of the Company or as imposing any obligation on such holder to
purchase any securities or as imposing any liabilities on such holder as a
stockholder of the Company, whether such obligation or liabilities are asserted
by the Company or by creditors of the Company.

         11. NOTICES. All notices and other communications provided for herein
shall be delivered or mailed by first class mail, postage prepaid, addressed (a)
if to any holder of this Warrant, at the registered address of such holder as
set forth in the register kept by the Company, or (b) if to the Company, at its
principal office, 6490 South McCarran Boulevard, Suite 28, Reno, Nevada 89509,
or at the address of such other principal office of the Company as the Company
shall have furnished to each holder of this Warrant in writing, with a copy to
Jones, Day, Reavis & Pogue, 77 West Wacker Drive, Chicago, Illinois 60601, Attn:
Timothy J. Melton; PROVIDED, HOWEVER, that the exercise of any Warrant shall be
effective in the manner provided in Section 1.

         12. MISCELLANEOUS. This Warrant and any term hereof may be changed,
waived, discharged or terminated only by an instrument in writing signed by the
party against which enforcement of such change, waiver, discharge or termination
is sought. Any provision of this Warrant that shall be prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction. To the extent permitted by applicable law, the Company
waives any provision of law that shall render

                                       7
<PAGE>

any provision hereof prohibited or unenforceable in any respect. This Warrant
shall be governed by the substantive laws of the State of Nevada without
reference to the choice of law rules thereof. The headings of this Warrant
are inserted for convenience only and shall not be deemed to constitute a
part hereof.

                            [signature page follows]

                                       8
<PAGE>

         13. EXPIRATION. Subject to the provisions in Section 1.1 hereof, the
right to exercise this Warrant shall expire at 5:00 p.m., Eastern time, on the
date set forth on the first page hereof.

                                        HOMESEEKERS.COM INCORPORATED

                                  By: /s/ Dennis P. Gauger
                                     ---------------------------------
                                           Name:  Dennis P. Gauger
                                                  ------------------------------
                                           Title: Chief Financial Officer
                                                  ------------------------------

                                       9
<PAGE>

                              FORM OF SUBSCRIPTION

     THE EXERCISE OF THIS WARRANT IS SUBJECT TO, AND SHALL ONLY BE EFFECTIVE
       UPON, SATISFACTION OF ANY APPLICABLE REGULATORY FILING REQUIREMENTS
     SUCH AS THE PREMERGER NOTIFICATION AND REPORT FORM FILING REQUIREMENTS
         OF THE HART-SCOTT-RODINO ANTITRUST IMPROVEMENTS ACT OF 1976 AND
                   REGULATIONS PROMULGATED PURSUANT THERETO.

                 [To be executed only upon exercise of Warrant]

To HOMESEEKERS.COM INCORPORATED

         The undersigned registered holder of the attached Warrant hereby
irrevocably exercises such Warrant for, and purchases thereunder,____(1) shares
of Common Stock of HOMESEEKERS.COM INCORPORATED, and herewith makes payment as
follows (check as applicable): / / certified or official bank check in the
amount of $_________; / / wire transfer in the amount of $_________; and/or / /
cancellation of _______ shares of Common Stock otherwise issuable under the
Warrant. The undersigned requests that the certificates for such shares be
issued in the name of, and delivered to ______________________________, whose
address is_____________________________________________________________________.

Dated:_________________________

                              _________________________________________________
                              (Signature must conform in all respects to name of
                              holder as specified on the face of Warrant)

                              __________________________________________________
                              (Street Address)

                              __________________________________________________
                              (City)              (State)          (Zip Code)

____________________

(1    Insert here the number of shares called for on the face of this Warrant
      (or in the case of a partial exercise, the portion thereof as to which
      this Warrant is being exercised), in either case without making any
      adjustment for additional Common Stock or any other stock or other
      securities or property or cash that, pursuant to the adjustment
      provisions of this Warrant, may be delivered upon exercise. In the case
      of a partial exercise, a new Warrant or Warrants will be issued and
      delivered, representing the unexercised portion of the Warrant, to the
      holder surrendering the Warrant.

                                       10

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