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                                                                   EXHIBIT 10.11

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"),
APPLICABLE STATE SECURITIES LAWS, OR APPLICABLE LAWS OF ANY FOREIGN
JURISDICTION. THIS WARRANT AND SUCH UNDERLYING SECURITIES HAVE BEEN ACQUIRED FOR
INVESTMENT AND NOT WITH A VIEW TO DISTRIBUTION OR RESALE, AND MAY NOT BE
OFFERED, SOLD, PLEDGED, HYPOTHECATED, RENOUNCED OR OTHERWISE TRANSFERRED IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND ANY
APPLICABLE STATE SECURITIES LAWS AND IN THE ABSENCE OF COMPLIANCE WITH
APPLICABLE LAWS OF ANY FOREIGN JURISDICTION, OR AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IN NOT REQUIRED AND SUCH
FOREIGN JURISDICTION LAWS HAVE BEEN SATISFIED.

                                 BUILDNET, INC.
                             STOCK PURCHASE WARRANT

         This Warrant is issued as of this 21st day of May 1999 (the "Effective
Date") by BuildNet, Inc., a North Carolina corporation (the "Company"), to GE
Capital Equity Investments, Inc., or permitted assigns (the "Holder").

         1. Issuance of Warrant; Term; Price.

                  1.1 Issuance. Subject to the terms and conditions set forth
herein, Company hereby grants to Holder the right to purchase up to 271,319
shares (which number of shares is subject to adjustment as described below) of
Company's Series B Preferred Stock (the "Warrant Stock"). This Warrant shall
become exercisable based on General Electric Company's operating unit, General
Electric Appliances ("GEA") meeting the milestones as set forth below. In all
cases, achievement of the milestones below will be based on GEA's active
participation in helping to promote the Company's electronic commerce
application and network (the "BuildNet System"). In order to meet the milestones
as set forth below, the Company acknowledges that GEA and the Company will work
together to bring the parties to contract, and it is not required that GEA alone
bring the party to contract, so long as GEA has an active role in introducing
the prospect (manufacturer, distributor or builder) to the Company and uses its
good faith efforts to provide reasonable assistance to Company personnel in
promoting, negotiating and/or closing the prospect's participation in the
BuildNet System.

         Commencing on the Commencement Date, as defined below, GEA will
commence sales and marketing efforts designed to increase participant enrollment
in the BuildNet System. "Commencement Date" means the date that GEA, in its good
faith reasonable judgment, (which shall not be unreasonably withheld) confirms
that the Company has provided it with sales and marketing materials sufficient
to allow GEA to solicit manufacturers, distributors and builders in a manner
reasonably likely to result in such persons agreeing to participate in the
BuildNet System. The parties agree that said sales and marketing materials will
be completed within ninety (90) days of the Effective Date, unless extended by
mutual consent. GEA agrees to use its

Portions of this exhibit marked by [*] have been omitted pursuant to a request
for confidential treatment.
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reasonable commercial efforts to help the Company prepare said materials. The
Warrant may be exercised for the following number of shares of Warrant Stock
based on GEA's achievement of the corresponding milestone(s).

                           (a) For every [*] identified in Exhibit A for which
the Initial Warrant Trigger has been satisfied during the first [*] months after
the Commencement Date, and for which the Final Warrant Trigger is satisfied, and
for every [*] identified in Exhibit A for which the Initial Warrant Trigger has
been satisfied during the next [*] months thereafter (months [*] after the
Commencement Date) and for which the Final Warrant Trigger has been satisfied,
the Warrant will become exercisable as to [*] shares of Warrant Stock.

                           (b) For every [*] identified in Exhibit A for which
the Initial Warrant Trigger has been satisfied during the first [*] months after
the Commencement Date, and for which the Final Warrant Trigger is satisfied, and
for every [*] identified in Exhibit A for which the Initial Warrant Trigger has
been satisfied during the next [*] months thereafter (months [*] after the
Commencement Date), and for which the Final Warrant Trigger has been satisfied,
the Warrant will become exercisable as to [*] shares of Warrant Stock.

                           (c) For every [*] identified on Exhibit A for which
the initial Warrant Trigger has been satisfied during the first [*] months after
the Commencement Date, and for which the Final Warrant Trigger is satisfied and
for every [*] for which the Initial Warrant Trigger has been satisfied during
the next [*] months thereafter (months [*] after the Commencement Date), and for
which the Final Warrant Trigger has been satisfied, the Warrants will become
exercisable as to [*] shares of Warrant Stock.

                           (d) For purposes of this section, "Initial Warrant
Trigger" means, with respect to any manufacturer, distributor or builder listed
on Exhibit A, that (i) such person was introduced to the Company by GEA or its
agents (whether such introduction was made prior to or after the Commencement
Date and regardless of whether the Company has previously been introduced to or
had discussions with such person prior to the Effective Date), (ii) following
such introduction, GEA has used its good faith reasonable efforts to assist the
Company in following up with such person in order to secure such person's
participation in the BuildNet System, and (iii) the Company and such person
enter into a non-binding letter of intent regarding the BuildNet System within
the 12 or 18 month period after the Commencement Date, as applicable. "Final
Warrant Trigger" means, with respect to any manufacturer, distributor or builder
listed on Exhibit A, that the Company and such person enter into a definitive
agreement regarding the BuildNet System within 6 months after execution of a
letter of intent. In the event the BuildNet System is not operational for a
given customer within said 6-month period, said period shall be extended until
the BuildNet System has been made operational.

                           (e) If GEA thereafter helps bring other participants
to the BuildNet System who meet the criteria used in creating Exhibit A, the
participants will, by mutual agreement of the Company and GEA (which agreement
shall not be unreasonably withheld) be counted toward the milestone goals
notwithstanding that the participants are not then on Exhibit

Portions of this exhibit marked by [*] have been omitted pursuant to a request
for confidential treatment.

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A. In addition, the Company and GEA may mutually agree to count toward the
milestone goals other participants brought by GEA who do not meet the criteria
used in creating Exhibit A.

                  1.2 Term. The shares of Warrant Stock issuable upon exercise
of this Warrant are hereinafter referred to as the "Shares." This Warrant shall
be exercisable at any time and from time to time from the date hereof until May
21, 2004.

                  1.3. Exercise Price. The exercise price (the "Warrant Price")
per share for which all or any of the Shares may be purchased pursuant to the
terms of this Warrant shall be equal to [*].

         2. Adjustment of Warrant Price, Number and Kind of Shares. The Warrant
Price and the number and kind of securities issuable upon the exercise of this
Warrant shall be subject to adjustment from time to time and the Company agrees
to provide notice upon the happening of certain events as follows.

                  2.1 Dividends in Stock Adjustment. In case at any time or from
time to time on or after the date hereof the holders of the Warrant Stock of the
Company (or any shares of stock or other securities at the time receivable upon
the exercise of this Warrant) shall have received, or, on or after the record
date fixed for the determination of eligible shareholders, shall have become
entitled to receive, without payment therefor, other or additional securities or
other property (other than cash) of the Company by way of dividend or
distribution, then and in each case, the holder of this Warrant shall, upon the
exercise hereof, be entitled to receive, in addition to the number of shares of
Warrant Stock receivable thereupon, and without payment of any additional
consideration therefor, the amount of such other or additional securities or
other property (other than cash) of the Company which such holder would hold on
the date of such exercise had it been the holder of record of such Warrant Stock
on the date hereof and had thereafter, during the period from the date hereof to
and including the date of such exercise, retained such shares and/or all other
additional securities or other property receivable by it as aforesaid during
such period, giving effect to all adjustments called for during such period by
this subsection 2.1 and subsections 2.2 and 2.3 of this Section 2.

                  2.2. Reorganization, Reclassification, Merger, Consolidation
or Disposition of Assets. In case the Company shall reorganize its capital,
reclassify its capital stock, consolidate or merge with or into another
corporation (where the Company is not the surviving corporation or where there
is a change in or distribution with respect to the Series B Preferred Stock or
the Common Stock of the Company), or sell, transfer or otherwise dispose of all
or substantially all its property, assets or business to another corporation
and, pursuant to the terms of such reorganization, reclassification, merger,
consolidation or disposition of assets, shares of common stock of the successor
or acquiring corporation, or any cash, shares of stock or other securities or
property of any nature whatsoever (including warrants or other subscription or
purchase rights) in addition to or in lieu of common stock of the successor or
acquiring corporation ("Other Property"), are to be received by or distributed
to the holders of the Series B Preferred Stock or Common Stock of the Company,
then Holder shall have the right thereafter to receive, upon exercise of this
Warrant and payment of the Warrant Price then in effect, the number of shares of

Portions of this exhibit marked by [*] have been omitted pursuant to a request
for confidential treatment.

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common stock of the successor or acquiring corporation or of the Company, if it
is the surviving corporation, and Other Property receivable upon or as a result
of such reorganization, reclassification, merger, consolidation or disposition
of assets to which the holder would have been entitled upon such consummation of
such event if such holder had exercised this Warrant immediately prior to such
event. In case of any such reorganization, reclassification, merger,
consolidation or disposition of assets, the successor or acquiring corporation
(if other than the Company) shall expressly assume the due and punctual
observance and performance of each and every covenant and condition of this
Warrant to be performed and observed by the Company and all the obligations and
liabilities hereunder, subject to such modifications as may be deemed
appropriate (as determined by resolution of the Board of Directors of the
Company) in order to provide for adjustments of the Warrant Price and the number
and kind of securities issuable upon the exercise of this Warrant which shall be
as nearly equivalent as practicable to the adjustments provided for in this
Section 2. For purposes of this Section 2.2, "common stock of the successor or
acquiring corporation" shall include stock of such corporation of any class
which is not preferred as to dividends or assets over any other class of stock
of such corporation and which is not subject to redemption and shall also
include any evidences of indebtedness, shares of stock or other securities which
are convertible into or exchangeable for any such stock, either immediately or
upon the arrival of a specified date or the happening of a specified event and
any warrants or other rights to subscribe for or purchase any such stock. The
foregoing provisions of this Section 2.2 shall similarly apply to successive
reorganizations, reclassifications, mergers, consolidations or disposition of
assets.

                  2.3 Stock Splits and Reverse Stock Splits. If at any time on
or after the date hereof the Company shall subdivide its outstanding shares of
Warrant Stock into a greater number of shares, the Warrant Price in effect
immediately prior to such subdivision shall thereby be proportionately reduced
and the number of shares receivable upon exercise of this Warrant shall thereby
be proportionately increased; and, conversely, if at any time on or after the
date hereof the outstanding number of shares of Warrant Stock shall be combined
into a smaller number of shares, the Warrant Price in effect immediately prior
to such combination shall thereby be proportionately increased and the number of
shares receivable upon exercise of this Warrant shall thereby be proportionately
decreased.

                  2.4 Conversion or Redemption of Warrant Stock. If at the time
of any exercise of this Warrant there are no other shares of Warrant Stock
outstanding (such shares having been converted or redeemed), this Warrant shall
be exercisable for Common Stock instead of Warrant Stock in the same amounts,
for the same prices and on the same terms, and all references herein to "Warrant
Stock" shall be changed to refer to "Common Stock."

         3. No Fractional Shares. No fractional shares of Warrant Stock will be
issued in connection with any subscription hereunder. In lieu of any fractional
shares that would otherwise be issuable, the Company shall pay cash equal to the
product of such fraction multiplied by the fair market value of one share of
Warrant Stock on the date of exercise, as determined in good faith by the
Company's Board of Directors.

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         4. No Shareholder Rights. This Warrant as such shall not entitle its
holder to any of the rights of a shareholder of the Company until the holder has
exercised this Warrant in accordance with Section 6 or Section 7 hereof.

         5. Reservation of Stock. The Company covenants that during the period
this Warrant is exercisable, the Company will reserve from its authorized and
unissued Warrant Stock a sufficient number of shares to provide for the issuance
of Warrant Stock upon the exercise of this Warrant. The Company agrees that its
issuance of this Warrant shall constitute full authority to its officers who are
charged with the duty of executing stock certificates to execute and issue the
necessary certificates for shares of Warrant Stock upon the exercise of this
Warrant.

         6. Exercise of Warrant. This Warrant may be exercised by Holder by the
surrender of this Warrant at the principal office of the Company, accompanied by
payment in full of the purchase price of the Shares purchased thereby, as
described above. This Warrant shall be deemed to have been exercised immediately
prior to the close of business on the date of its surrender for exercise as
provided above, and the person or entity entitled to receive the Shares or other
securities issuable upon such exercise shall be treated for all purposes as the
holder of such shares of record as of the close of business on such date. As
promptly as practicable, the Company shall issue and deliver to the person or
entity entitled to receive the same a certificate or certificates for the number
of full shares of Warrant Stock issuable upon such exercise, together with cash
in lieu of any fraction of a share as provided above. The shares of Warrant
Stock issuable upon exercise hereof shall, upon their issuance, be fully paid
and nonassessable.

         7. Right to Convert Warrant for Warrant Stock.

                  7.1 Right to Convert. In addition to and without limiting the
rights of the Holder under the terms of this Warrant, the Holder shall have the
right to convert this Warrant or any portion hereof (the "Conversion Right")
into shares of Warrant Stock as provided in this Section 7, subject to the
restrictions set forth in subsection 7.3 hereof. Upon exercise of the Conversion
Right with respect to a particular number of shares subject to this Warrant (the
"Converted Warrant Shares"), the Company shall deliver to the Holder (without
payment by the Holder of any cash or other consideration) that number of shares
of Warrant Stock equal to the quotient obtained by dividing (x) the value of
this Warrant (or the specified portion hereof) on the Conversion Date (as
defined in subsection 7.2 hereof ), which value shall be determined by
subtracting (A) the aggregate Warrant Price of the Converted Warrant Shares
immediately prior to the exercise of the Conversion Right from (B) the aggregate
fair market value of the Converted Warrant Shares issuable upon exercise of this
Warrant (or the specified portion hereof) on the Conversion Date (as herein
defined) by (y) the fair market value of one share of Warrant Stock on the
Conversion Date (as herein defined). No fractional shares shall be issuable upon
exercise of the Conversion Right, and if the number of shares to be issued
determined in accordance with the foregoing formula is other than a whole
number, the Company shall pay to the Holder an amount in cash equal to the fair
market value of the resulting fractional share on the Conversion Date (as herein
defined).

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                  7.2 Method of Exercise. The Conversion Right may be exercised
by the Holder by the surrender of this Warrant at the principal office of the
Company together with a written statement specifying that the Holder thereby
intends to exercise the Conversion Right and indicating the number of shares
subject to this Warrant that are being surrendered (referred to in subsection
7.1 hereof as the Converted Warrant Shares) in exercise of the Conversion Right.
Such conversion shall be effective immediately upon surrender of this Warrant
(the "Conversion Date"). Certificates for the shares of Warrant Stock issuable
upon exercise of the Conversion Right (or any other securities deliverable in
lieu thereof under subsection 2.1) shall be issued as of the Conversion Date and
shall be delivered to the Holder immediately following the Conversion Date.

                  7.3 Restrictions on Conversion Right. In the event that, in
connection with or following a public offering of the Company's Common Stock,
the Conversion Right contained herein would, at any time this Warrant remains
outstanding, be deemed by the Company' s independent certified public
accountants to trigger a charge to the Company's earnings for financial
reporting purposes, then the Conversion Right as specified in section 7.1 shall
automatically terminate upon the Company's written notice to the Holder of such
adverse accounting treatment.

                  7.4 Determination of Fair Market Value. For purposes of this
Section 7, fair market value of a share of Warrant Stock as of a particular date
(the "Determination Date") shall mean:

                           (a) In the case of a public offering, the initial
"Price to Public" specified in the final prospectus with respect to such
offering if the Holder elects to exercise its Warrants at that time. If the
Holder elects to exercise its warrants in whole or in part after a public
offering, the fair market value of a share of Warrant Stock shall be the last
closing price per share on such date;

                           (b) In the case of an acquisition of a controlling
interest (51% or more) of BuildNet stock, the effective per share consideration
to be received in an Acquisition by holders of the Warrant Stock, which price
shall be as specified in the agreement entered into with respect to such
Acquisition and determined assuming receipt of the aggregate exercise price of
all outstanding warrants to purchase Warrant Stock (the "Outstanding Warrants"),
or if no such price is set forth in the agreement concerning the Acquisition,
then as determined in good faith by the Company's Board of Directors upon a
review of relevant factors, including the aggregate exercise price of all
Outstanding Warrants; or

                           (c) In any other case, the price determined in good
faith by the Company's Board of Directors.

         8. Certificate of Adjustment. Whenever the Warrant Price or number or
type of securities issuable upon exercise of this Warrant is adjusted, as herein
provided, the Company shall promptly deliver to the record holder of this
Warrant a certificate of an officer of the Company

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setting forth the nature of such adjustment and a brief statement of the facts
requiring such adjustment.

         9. Notice of Proposed Transfers. Prior to any proposed transfer of this
Warrant or the shares of Warrant Stock received on the exercise of this Warrant
(the "Securities"), unless there is in effect a registration statement under the
Securities Act of 1933, as amended (the "Securities Act"), covering the proposed
transfer, the Holder thereof shall give written notice to the Company of such
Holder's intention to effect such transfer. Each such notice shall describe the
manner and circumstances of the proposed transfer in sufficient detail, and
shall, if the Company so requests, be accompanied (except in transactions in
compliance with Rule 144) by either (i) a written opinion of legal counsel who
shall be reasonably satisfactory to the Company addressed to the Company and
reasonably satisfactory in form and substance to the Company's counsel, to the
effect that the proposed transfer of the Securities may be effected without
registration under the Securities Act, or (ii) a "no action" letter from the
Securities Exchange Commission (the "Commission") to the effect that the
transfer of such Securities without registration will not result in a
recommendation by the staff of the Commission that action be taken with respect
thereto, whereupon the Holder of the Securities shall be entitled to transfer
the Securities in accordance with the terms of the notice delivered by the
Holder to the Company; provided, however, no such registration statement or
opinion of counsel shall be necessary for a transfer by a Holder to any
affiliate of such Holder, or a transfer by a Holder which is a partnership to a
partner of such partnership or a retired partner of such partnership who retires
after the date hereof, or to the estate of any such partner or retired partner
or the transfer by gift, will or intestate succession of any partner to his
spouse or lineal descendants or ancestors, if the transferee agrees in writing
to be subject to the terms hereof to the same extent as if such transferee were
the original Holder hereunder. Each certificate evidencing the Securities
transferred as above provided shall bear the appropriate restrictive legend set
forth above, except that such certificate shall not bear such restrictive legend
if in the opinion of counsel for the Company such legend is not required in
order to establish compliance with any provisions of the Securities Act.

         10. Replacement of Warrants. Upon receipt by the Company of evidence
reasonably satisfactory to the Company of the loss, theft, destruction or
mutilation of the Warrant, and in the case of any such loss, theft or
destruction of the Warrant, on delivery of an indemnity agreement or security
reasonably satisfactory in form and amount to the Company, and reimbursement to
the Company of all reasonable expenses incidental thereto, and upon surrender
and cancellation of the Warrant if mutilated, the Company will execute and
deliver, in lieu thereof, a new Warrant of like tenor.

         11. Miscellaneous. This Warrant shall be governed by the laws of the
State of New York The headings in this Warrant are for purposes of convenience
of reference only, and shall not be deemed to constitute a part hereof. The
invalidity or unenforceability of any provision hereof shall in no way affect
the validity or enforceability of any other provisions. All notices and other
communications from the Company to the holder of this Warrant shall be delivered
personally or mailed by first class mail, postage prepaid, to the address
furnished to the Company in writing by the last holder of this Warrant who shall
have furnished an address to the Company in writing, and if mailed shall be
deemed given three days after deposit in the U.S. Mail.

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         12. Taxes. The Company shall pay all issue taxes and other governmental
charges (but not including any income taxes of a Holder) that may be imposed in
respect of the issuance or delivery of the Shares or any portion thereof.

         13. Amendment. Any term of this Warrant may be amended with the written
consent of the Company and the Holder. Any amendment effected in accordance with
this Section 13 shall be binding upon the Holder of this Warrant, each future
holder of such Warrant, and the Company.

         14. No Impairment. The Company shall not by any action, including,
without limitation, amending its Articles of Incorporation or comparable
governing instruments or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms of this Warrant, but will at all times in good faith assist in the
carrying out of all such terms and in the taking of all such actions as may be
necessary or appropriate to protect the rights of Holder against impairment.
Without limiting the generality of the foregoing, the Company will (a) not
increase the par value of any shares of Series B Preferred Stock or Common Stock
receivable upon the exercise of this Warrant above the amount payable therefor
upon such exercise immediately prior to such increase in par value, (b) 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 Series B
Preferred Stock or Common Stock upon the exercise of this Warrant, and (c) use
its best efforts to obtain all such authorizations, exemptions or consents from
any public regulatory body having jurisdiction thereof as may be necessary to
enable the Company to perform its obligations under this Warrant.

                  Upon the request of Holder, the Company will at any time
during the period this Warrant is outstanding acknowledge in writing, in form
reasonably satisfactory to Holder, the continuing validity of this Warrant and
the obligations of the Company hereunder.

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         IN WITNESS WHEREOF, the undersigned officer of the Company has set his
hands as of the date first above written.

                                             BUILDNET, INC.

                                             By: /s/ Keith T. Brown
                                                 -------------------------------
                                                 Keith T. Brown, President

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                                    EXHIBIT A

                  TOP MANUFACTURERS, DISTRIBUTORS AND BUILDERS

                            ************************

                                       [*]

Portions of this exhibit marked by [*] have been omitted pursuant to a request
for confidential treatment.<PAGE>   1

                                                                   EXHIBIT 10.12

                FORM OF BUILDNET, INC. FOUNDING MEMBER AGREEMENT

         This FOUNDING MEMBER AGREEMENT (the "Agreement") is dated as of the
____ day of _____1999 (the "Effective Date"), by and between BuildNet, Inc., a
North Carolina corporation, with its principal place of business at 4815 Emperor
Drive, Suite 214, Morrisville, North Carolina 27560 ("BuildNet"), and
__________________________corporation, by and through its General Electric
Appliances operating unit having a place of business at
_________________("Company").

                                    RECITALS

         WHEREAS, BuildNet operates an Internet-based service for processing and
supporting electronic commerce transactions between suppliers and buyers of
building related goods and services (the "BuildNet System"); and

         WHEREAS, BuildNet desires to establish one primary sponsor in each
major product category included in the BuildNet System (a "Founding Member"),
which will be accorded advantaged status over preferred and standard members
("Members") on the BuildNet System; and

         WHEREAS, Company is the manufacturer of building products, materials
and/or supplies and desires to become a Founding Member with respect to the
products (the "Products") and the Major Product Category as set forth on Exhibit
A attached hereto;

         NOW, THEREFORE, in consideration of the mutual promises and covenants
herein contained and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties, intending to be
bound, hereby agree as follows.

Appointment of Founding Member. BuildNet hereby appoints Company as the
exclusive Founding Member for the Major Product Category as set forth on Exhibit
A attached hereto, and Company shall make available for purchase through the
BuildNet System, the Products. During the term of this Agreement, BuildNet shall
not allow any other Member to offer for sale through the BuildNet System the
Products (or products that compete therewith) on the same set of advantaged
terms accorded a Founding Member.

Electronic Commerce Services. In a timely manner, BuildNet shall provide the
following electronic commerce services to Company.

         (a) BuildNet shall make available to Company the necessary BuildNet
System software to create and publish Product catalogs through the BuildNet
System. This software will provide a standard set of capabilities for Founding
Members needed to display all relevant Product Information and interface the
transactions facilitated through the BuildNet System with Company's internal
business systems. The BuildNet System will provide basic customer interaction
capabilities to conduct standard commerce transactions including new builder
sign-

<PAGE>   2

up, price quotes, payment services, new orders, back order notification,
advanced ship notice communications and purchase order modifications.

         (b) BuildNet will maintain and present Company's Product information on
the BuildNet System, provided that Company shall pay all costs for any third
party software (including upgrades to such software) that is required to publish
and/or maintain Company's Product catalogs through the BuildNet System. There
will no storage or service charges for hosting or maintaining Company Product
information catalogs on the BuildNet System.

         (c) BuildNet will manage and distribute to end users of the BuildNet
System Company's Product catalog and upgrades thereto.

         (d) BuildNet will provide timely notice to Company of all upgrades and
changes to the BuildNet System, the transaction adapter software or Company's
electronic catalog that may cause changes to be made to Company's internal
electronic commerce systems.

         (e) BuildNet will maintain the BuildNet System and all software tools,
interfaces and transaction adapter software provided with the BuildNet System
and keep all e-commerce interfaces working properly.

         (f) BuildNet shall provide all required hardware and software to host
the BuildNet System, including telecommunications hardware and software.
BuildNet shall provide the telecommunications equipment and connections to allow
members to access the BuildNet System through the public Internet on a
twenty-four hours per day, seven days per week basis, except during scheduled
maintenance downtime. In addition, BuildNet or its agents shall keep backups of
the BuildNet System, check for errors in the accessibility of the BuildNet
System, and monitor connectivity of the BuildNet System to the Internet.
BuildNet will use commercially reasonable efforts to ensure that the speed and
functionality of the BuildNet System is consistent with industry best of breed
standards.

3. Marketing and Promotional Services. During the term of this Agreement,
Company shall have the right to hold itself out as a "Founding Member" of the
BuildNet System. As a Founding Member, Company shall be entitled to the
following benefits and services with respect to the Major Product Category.

         (a) Company shall receive preferred positioning and placement,
including first position for all relevant menus, lists and online catalog
presentations. Company shall receive preferred positioning on any user desktop
screens or interfaces provided by BuildNet including priority positioning on the
desktop within the applicable Major Product Category, and priority by each
individual product category within the Major Product Category.

         (b) The BuildNet System shall default to Company in each individual
product category within the Major Product Category for all plans, menus and
applications.

         (c) BuildNet shall provide reasonable assistance to Company with its
marketing efforts, including seminars and special promotional events. Company,
as a Founding Member

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shall receive preferential consideration over standard Members during any city
roll-out promotional events conducted by BuildNet.

         (d) BuildNet will provide Company prominent Founding Member visibility
in BuildNet on-line and print advertising and other sales and marketing
collateral material that promote the BuildNet System. As a Founding Member,
BuildNet will offer preferred advertising to the Company in the BuildNet System
web site design and on-line advertising, both within the Product Category and
within the BuildNet System generally at the then-current rates.

         (e) BuildNet will include Company's name and logo within the BuildNet
Industry Company Index section of the BuildNet System web site, located at
www.buildnet.net and any other indexes that are included on websites that are
part of the BuildNet System.

         (f) BuildNet will include a hypertext hot link(s) to Company's Internet
site(s) from the Industry Company Index of the BuildNet System web site(s).

         (g) No superceding ads or promotional hot links by non-Founding Members
will be placed on Founding Members webpages.

4. Other Services. BuildNet shall provide to Company services that are required
to integrate Company's Product data systems with the BuildNet System. These
services shall be provided pursuant to BuildNet's standard General Services
Agreement and shall include the provision of a basic template driven catalog of
Company's product data. This catalog will not implement any configuration or
rule driven processes.

5. Company's Duties. Company shall be responsible for providing to BuildNet in a
timely manner the Company Material as defined below, including all designs,
promotional materials, Company marks and logos, advertisements and other Company
material to be provided under the Agreement. All such materials are, and shall
remain, the exclusive property of Company and shall promptly be returned thereto
upon request.

6. Subscription and Transaction Fee. In consideration of its participation as a
Founding Member, Company shall pay to BuildNet an annual Founding Member
subscription fee of $__________. Payment for the first year shall be due upon
the Effective Date and thereafter on each annual anniversary of the Effective
Date. A transaction fee of (i) ____ percent ___% of the net invoice price of any
product or service ordered through the BuildNet System if the sale is to a
supplier, or (ii) a transaction fee of ______ percent ___% of the net invoice
price of any product or service ordered through the BuildNet System if the sale
is a direct shipment to the end user. Transaction fees shall be invoiced
electronically upon notice of shipment from Founding Members and payable within
thirty (30) days of invoice date. Any payments due hereunder not received within
thirty (30) days of the date due shall accrue interest from the date due until
the date paid at twelve percent (12%) per annum or, if less, the maximum per
annum rate permitted by law.

7. Term. The term of the Agreement shall be for a period of one (1) year,
commencing on the Effective Date. Thereafter the Agreement shall automatically
renew for additional one-year

                                       3
<PAGE>   4

terms upon receipt of the Annual Fee pursuant to Section 6 unless either party
provided written notice to the other of its intent not to renew not less than
sixty (60) days prior to the end of the then-current term. BuildNet reserves the
right to terminate this Agreement at any time that payment is not received
within thirty (30) days of the date such payment is due.

8. Representations and Warranties of BuildNet. BuildNet represents and warrants
as follows, as of the Effective Date and for the term of this Agreement:

         (a) The execution and delivery of this Agreement shall not conflict
with or result in a breach of the terms, conditions or provisions of, or give
rise to a right of termination under, or constitute a default under, or result
in any violation of, any agreement, contract, instrument, order, judgment,
decree, statute, law, rule or regulation to which BuildNet is subject. Neither
the execution and delivery of this Agreement nor the compliance with the terms
and provisions hereof shall result in any violation of any franchise,
certificate, license, permit, or other authorization necessary for the
ownership, maintenance and operation by BuildNet of the BuildNet System.

         (b) BuildNet owns, or has the right to use under valid and enforceable
agreements, all of the intellectual property rights related to the operation of
the BuildNet System. The operation of the BuildNet System as presently conducted
or proposed to be conducted by BuildNet does not infringe or violate any
intellectual property rights of any other person. BuildNet represents and
warrants to Company that (i) the technology as utilized by the BuildNet System,
and (ii) any material originated by BuildNet or provided to Company by BuildNet
(other than content originating with Company) ("BuildNet Material") which is
displayed on the BuildNet System shall not (A) violate any criminal laws or any
rights of any third parties, including, but not limited to, such violations as
infringement or misappropriation of intellectual property rights or other
proprietary or property right, false advertising, unfair competition,
defamation, invasion of privacy or rights of celebrity, violation of any
anti-discrimination law or regulation, or any other right of any person or (B)
contain any material that would constitute a criminal offense, give rise to
civil liability, or otherwise violate any applicable local, state or national
law.

         (c) All computer systems, software, and hardware used in the operation
of the BuildNet System are able to accurately process date data, including,
calculating, comparing, and sequencing from, into and between the twentieth
century (through year 1999), the year 2000 and the twenty-first century,
including leap year calculations. BuildNet is taking all commercially reasonable
steps to assure that the BuildNet System is not adversely and materially
affected by Year 2000 or other date-related processing failures affecting the
performance of its suppliers and business partners.

         (d) The BuildNet System will comport with reasonable commercial or
industry standards, including standards for firewalls, antivirus protection, and
system security. In the event that Company notifies BuildNet that the BuildNet
System is failing to conform to the above warranties, BuildNet, without charge,
shall promptly and in no event more than thirty (30) days thereafter, repair or
replace the cause of such failure, provided however that if the BuildNet System
is not operational for more than three (3) days within any given month, any
additional non-operational days within that given month will be credited against
the Founding Member's future subscription fee on a pro rata daily basis.

                                       4
<PAGE>   5

9. Representations and Warranties of Company. Company represents and warrants as
follows, as of the Effective Date and for the term of this Agreement:

         (a) The execution and delivery of this Agreement shall not conflict
with or result in a breach of the terms, conditions or provisions of, or give
rise to a right of termination under, or constitute a default under, or result
in any violation of any agreement, contract, instrument, order, judgment,
decree, statute, law, rule or regulation to which Company is subject.

         (b) Company represents and warrants to BuildNet that any material
originated by Company or provided to BuildNet by Company (other than content
originating with BuildNet) ("Company Material") which is displayed on the
BuildNet System shall not (A) violate any criminal laws or any rights of any
third parties, including, but not limited to, such violations as infringement or
misappropriation of intellectual property rights or other proprietary or
property right, false advertising, unfair competition, defamation, invasion of
privacy or rights of celebrity, violation of any anti-discrimination law or
regulation, or any other right of any person or (B) contain any material that
would constitute a criminal offense, give rise to civil liability, or otherwise
violate any applicable local, state or national law.

10. Disclaimer. OTHER THAN AS EXPRESSLY SET FORTH IN THIS AGREEMENT, NO PARTY
HERETO MAKES ANY REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE BUILDNET
SYSTEM, THE BUILDNET MATERIAL, THE COMPANY MATERIAL, OR ANY OTHER TECHNOLOGY,
CONTENT, OR INTELLECTUAL PROPERTY RIGHTS, OR ANY OTHER INFORMATION, DATA,
PRODUCTS, SERVICES, ACCURACY OR RESULTS OF USE, RIGHTS OR OTHER SUBJECT MATTER
OF THIS AGREEMENT AND EACH PARTY HEREBY DISCLAIMS ALL IMPLIED WARRANTIES,
INCLUDING, WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE.

11. Indemnification.

         (a) Each of Company and BuildNet, respectively, shall defend, indemnify
and hold each other, and each other's Affiliates, partners, officers, employees,
directors, agents, consultants, contractors, representatives, successors and
assigns, as such, harmless from and against any third party claims, demands,
liabilities, actions, judgments and expenses, including attorneys fees,
("Losses") which arise out of or result from any claim that such party does not
have sufficient right, title or interest in any software, data, or any other
materials used or supplied by such party in performance of such party's
obligations under this Agreement that are subject to any intellectual property
rights (the "Protected Material") or that such Protected Material violates any
intellectual property right of any third party.

         (b) In the event that any such claim is made against either Company or
BuildNet, or in one of the parties' (the "Indemnifying Party") opinion is likely
to be made against the other party (the "Indemnified Party"), such Indemnifying
Party reserves the right, in its sole discretion, to avoid infringement by (i)
procuring for the Indemnified Party the right to use the subject Protected
Material, (ii) replacing the subject Protected Material with materials of equal
or superior content and functionality, or (iii) to modify the subject Protected
Material without materially and adversely affecting their content and
functionality.

                                       5
<PAGE>   6

         (c) Any party claiming indemnification pursuant to this Agreement shall
notify the indemnifying party within thirty (30) days after learning of the
occurrence of any event (including, without limitation, the commencement of any
audit by any taxing authority) that such party asserts is an indemnifiable event
pursuant to this Agreement. If such event involves the claim of any third party
and the indemnifying party confirms in writing its responsibility for such
liability, if established, the indemnifying party shall be entitled to
participate in and, to the extent it shall wish, assume control over (in which
case the indemnifying party shall assume all expense with respect to) the
defense, settlement, adjustment or compromise of such claim.

         (d) The indemnified party shall have the right to employ separate
counsel in any action or claim and to participate in the defense thereof at the
expense of the indemnifying party (i) if the retention of such counsel has been
specifically authorized by the indemnifying party, or (ii) if the counsel is
retained because the indemnifying party does not notify the indemnified party
within twenty (20) days after receipt of a claim notice that it elects to
undertake the defense thereof. The indemnified party shall have the right to
employ counsel at the indemnified party's own expense and to participate in such
action or claim, including settlement or trial, so long as such participation
does not substantially interfere in the indemnifying party's defense of such
claim or action.

         (e) The indemnifying party shall obtain the prior written approval of
the indemnified party, not to be unreasonably withheld, before entering into any
settlement, adjustment, or compromise of such claim or ceasing to defend against
such claim, if pursuant to or as a result of such settlement, adjustment,
compromise, or cessation, injunctive or other relief would be imposed against
the indemnified party.

         (f) If the indemnifying party does not assume control over the defense
of such claim as provided in herein, the indemnified party shall have the right
to defend the claim in such manner as it may deem appropriate at the cost and
expense of the indemnifying party, and with the consent of the indemnifying
party, not to be unreasonably withheld, to settle, adjust, or compromise such
claim. The indemnified party may settle, adjust, or compromise any such claim
without the consent of the indemnifying party if the indemnified party waives
indemnification for such claim.

12. Limitation of Damages and Liability. NOTWITHSTANDING ANYTHING TO THE
CONTRARY CONTAINED IN THIS AGREEMENT, NEITHER PARTY SHALL BE LIABLE TO THE OTHER
HEREUNDER FOR INDIRECT, INCIDENTAL, SPECIAL, OR CONSEQUENTIAL DAMAGES (INCLUDING
REASONABLE ATTORNEYS' FEES AND LOST PROFITS) THAT RESULT FROM OR ARE RELATED TO
THIS AGREEMENT, EVEN IF THE PARTY FROM WHOM INDEMNITY IS SOUGHT HAS BEEN
INFORMED OF THE POSSIBILITY OF SUCH DAMAGES. IN ANY EVENT OTHER THAN WITH
RESPECT TO INDEMNIFICATION OBLIGATIONS UNDER SECTION 11, BUILDNET'S AGGREGATE
LIABILITY TO COMPANY UNDER THIS AGREEMENT FOR DAMAGES, COSTS, AND EXPENSES SHALL
NOT EXCEED THE AMOUNT RECEIVED BY BUILDNET UNDER THIS AGREEMENT WITHIN TWELVE
MONTHS OF THE CAUSE OF ACTION GIVING RISE TO THE LIABILITY NOTHING IN THIS
SECTION SHALL LIMIT IN ANY MANNER EITHER PARTY'S RIGHTS TO SEEK INJUNCTIVE
RELIEF.

                                       6
<PAGE>   7

13. Confidentiality.

         (a) Definition. "Proprietary Information" of a party means: any
confidential, proprietary or trade secret information disclosed by a party that
is identified in writing as such at the time of its initial disclosure, or if
initially disclosed in intangible form, is reduced to tangible form and properly
identified as such within 30 days of initial unmarked disclosure, including
without limitation: (i) information disclosed by a party relating to product
development strategy and activity, corporate assessments and strategic plans,
financial and statistical information, accounting information, software,
systems, processes, formulae, inventions, discoveries, policies, guidelines,
procedures, practices, disputes or litigation; (ii) trade information relating
to such party's employees, contractors or customers which, if released, would
cause an unlawful or actionable invasion of privacy; and (iii) compilations or
summaries of information or data that is itself Proprietary Information. For
purposes of this Agreement, information shall be deemed to be disclosed by a
party if such information is disclosed by any of its officers, employees,
directors, consultants, agents, representatives or affiliates.

         (b) Protection. Except as provided herein, all Proprietary Information
disclosed by a party hereto to any other party hereto in the course of
performing under this Agreement or to which a party hereto gains access in
connection with this Agreement shall be deemed to be the property of the
disclosing party. The receiving party shall during the life of this Agreement:
(i) receive such Proprietary Information in confidence; (ii) during the life of
this Agreement and for two (2) years thereafter maintain the confidentiality of
such Proprietary Information and not disclose such Proprietary Information to
third parties (except for the receiving party's representatives, agents and
contractors who have a need to know, are under a duty of non-disclosure, and are
acting for the sole benefit of the receiving party), and shall accord such
Proprietary Information at least the same level of protection against
unauthorized use and disclosure as the receiving party customarily accords its
own information of a similar nature; (iii) use or permit the use of such
Proprietary Information solely in accordance with the terms of this Agreement;
and (iv) promptly notify the disclosing party in writing of any loss or
unauthorized use or disclosure of or access to the disclosing party's
Proprietary Information of which it becomes aware. The terms and conditions of
this Agreement (as well as all information regarding the negotiation of this
Agreement) shall be deemed to be the Proprietary Information of the parties
hereto. The parties hereto shall each abide by and reproduce and include any
restrictive legends or proprietary rights notices that appear in or on any
Proprietary Information of the other parties hereto that it is authorized to
reproduce. Each party shall also not remove, alter, cover or distort any
trademark, trade name, copyright or other proprietary rights notices, legends,
symbols or labels appearing in any Proprietary Information of any other party
hereto. Confidentiality obligations and restrictions arising under this Section
13 shall expire two (2) years after expiration or termination of this Agreement.

         (c) Exclusions. The restrictions on disclosure set forth above shall
not apply when, and to the extent that the Proprietary Information: (i) is or
becomes generally available to the public through no fault of the receiving
party; (ii) was previously rightfully known to the receiving party free of any
obligation to keep it confidential; (iii) is subsequently disclosed to the
receiving party by a third party who may rightfully transfer and disclose such
information without restriction and free of any obligation to keep it
confidential; (iv) is independently

                                       7
<PAGE>   8

developed by the receiving party or a third party without reference to the
disclosing party's Proprietary Information; or (v) is required to be disclosed
by the receiving party as a matter of law, provided that the receiving party
uses all reasonable efforts to provide the disclosing party with at least ten
(10) days' prior written notice of such disclosure and the receiving party
discloses only that portion of the Proprietary Information that is legally
required to be furnished pursuant to the opinion of legal counsel of the
receiving party.

         (d) Data Rights. Notwithstanding anything herein to the contrary,
Company hereby grants BuildNet the right to use all transaction data generated
by the BuildNet System in a aggregated form for forecasting or other commercial
purposes, including transactions that contain Company data, provided that no
Company identifying information is included in such data, and provided further
that the data may not be manipulated in any way to individually separate the
transactions that comprise the data or to identity Company as a participant in
the transactions comprising the data. Except as provided above, Assuming that
Company obtains appropriate customer authorization, Company will have the right
to use all data generated by and through its customers for the Products,
including Product transaction data (whether or not such transactions flow
through the BuildNet System) in any manner it deems appropriate.

         (e) Security. BuildNet will use commercially reasonable efforts to (i)
ensure the security of individual customer account, pricing, purchasing, and
credit information; and (ii) provide adequate security around the BuildNet
System and to protect proprietary system design, content, and functionality from
unauthorized use or access by third parties.

         (f) Equitable Relief. The parties acknowledge that a breach of any
portion of this Article VII would cause the non-disclosing party irreparable
harm for which monetary damages would be inadequate. Accordingly, the
non-disclosing party shall be entitled to seek injunctive or other equitable
relief to remedy any threatened or actual breach of any portion of this Section
13 by the other party.

14. Trademarks.

         (a) Right to Use Company Trademarks, Tradenames and Logos. Company
hereby grants to BuildNet the nonexclusive right and license to use the Company
name, trade names, trademarks, logo and service marks (collectively referred to
as the "Company Marks") solely in connection with the use and promotion of the
BuildNet System. Either separately or in conjunction with any Company Mark,
BuildNet agrees to include any notices that Company may reasonably request when
using the Company Marks. BuildNet agrees that any use of the Company Marks shall
be subject to review and approval in advance by Company. Company shall retain
the right, in its sole discretion, to demand immediate modification, revision or
cessation of a Company Mark in the event that Company determines that the
Company Mark is being used improperly. Without limiting the generality of the
foregoing, BuildNet shall not use a Company Mark in a manner that, in Company's
determination, may cause embarrassment to Company or may damage Company's
reputation.

         (b) Ownership of Company Marks. All Company Marks shall remain the
exclusive property of Company.

                                       8
<PAGE>   9

         (c) Right to Use BuildNet Trademarks, Tradenames and Logos. BuildNet
hereby grants to Company the nonexclusive right and license to use the BuildNet
name, trade names, trademarks, logo and service marks (collectively referred to
as the "BuildNet Marks") solely in connection with the use and promotion of the
BuildNet System. Either separately or in conjunction with any BuildNet Mark,
Company agrees to include any notices that BuildNet may reasonably request when
using the BuildNet Marks. Company agrees that any use of the BuildNet Marks
shall be subject to review and approval in advance by BuildNet. BuildNet shall
retain the right, in its sole discretion, to demand immediate modification,
revision or cessation of a BuildNet Mark in the event that BuildNet determines
that the BuildNet Mark is being used improperly. Without limiting the generality
of the foregoing, Company shall not use a BuildNet Mark in a manner that, in
BuildNet's determination, may cause embarrassment to BuildNet or may damage
BuildNet's reputation.

         (d) Ownership of BuildNet Marks. All BuildNet Marks shall remain the
exclusive property of BuildNet.

15. Miscellaneous.

         (a) Notices. All notices and other communications required or permitted
under this Agreement shall be in writing to the addresses set forth above and
shall be deemed given when delivered personally, or five (5) days after being
deposited in the United States mail, return receipt requested and postage
prepaid, or on the next day when delivered via next day service by an overnight
courier with proof of receipt. Any party may change the address to which notices
hereunder are to be sent to it by giving written notice of such change of
address in the manner herein provided for giving notice.

         (b) No Joint Venture. Nothing contained in this Agreement shall be
construed so as to constitute either party as a partner or joint venturer or
agent of the other party, or to require either party to share profits, gains or
ownership interest in or from any property or activities. No party shall be
liable for the debts, accounts, obligations or other liabilities of the other
party, including without limitation, the other party's obligation to withhold
payroll and income taxes.

         (c) Entirety. This Agreement together with all exhibits that are
incorporated herein by reference, embodies the entire Agreement and except as
otherwise contemplated herein, supersedes all prior agreements, written and
oral, relating to the subject matter hereof.

         (d) Amendment. Amendments to this Agreement, including any exhibit
hereto, shall be enforceable only if they are in writing and are signed by
authorized representatives of both parties.

         (e) Waiver. The failure of any party hereto to enforce any provision of
this Agreement, or any right with respect thereto, or failure to exercise any
election provided for herein, shall in no way be considered a waiver of such
provision, right, or election, or in any way affect the validity of this
Agreement. The failure of any party hereto to enforce any provision, right or
election shall not prejudice such party from later enforcing or exercising that
provision, right, or election which it has under this Agreement.

                                       9
<PAGE>   10

         (f) Severability. In the event that any provision of the Agreement or
any part thereof is held by a court to be invalid, the remainder of this
Agreement shall be binding on the parties and construed as if the invalid
provisions or parts thereof have been deleted from this Agreement.

         (g) Assignment. Neither party may assign or subcontract its rights or
obligations under this Agreement, either in whole or in part, without the prior
written consent of the other party, which shall not be unreasonably withheld,
and any attempt to do so shall be void and of no effect.

         (h) Execution in Counterpart. This Agreement may be executed in any
number of counterparts, each of which shall be deemed an original.

         (i) Governing Law and Arbitration. This Agreement will be governed by
the laws of the State of North Carolina without regard to its conflicts of law
provisions. Any dispute or claim arising out of, or in connection with, this
Agreement shall be finally settled by binding arbitration in Raleigh, North
Carolina, in accordance with N.C. Gen. Stat. ss. 1-567.1 et seq. (the "Uniform
Arbitration Act") and the then-current rules and procedures of the American
Arbitration Association by one (1) arbitrator appointed by the American
Arbitration Association. The arbitrator shall apply the law of the State of
North Carolina, without reference to rules of conflict of law or statutory rules
of arbitration, to the merits of any dispute or claim. Judgment on the award
rendered by the arbitrator may be entered in any court of competent
jurisdiction. The parties agree that, any provision of applicable law
notwithstanding, they will not request, and the arbitrator shall have no
authority to award punitive or exemplary damages against any party.

         (j) Force Majeure. Except for the payment of money, failure of either
party to perform, in whole or in part, when due, if occasioned in whole or in
part by any act of God, act of governmental authority, fire, explosion, shortage
or failure of supply of materials or labor (including without limitation the
loss, illness, injury or incapacity of key employees), or any other occurrence,
act, course or thing beyond the reasonable control of that party, shall excuse
that party from its obligation to perform when due. The applicable party shall
have no obligations or liability in any amount arising out of or in connection
with such failure.

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

[                              ]         BUILDNET, INC.
By: ___________________________

Name:__________________________          By:_________________________

Title:_________________________

                                       10
<PAGE>   11

         EXHIBIT A

1. Description of Major Product Category.

2. Products to be provided by Company under the Major Product Category.

                                       11

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