Document:

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                                                                    Exhibit 10.4

                         PLEDGE AND SECURITY AGREEMENT
                         -----------------------------

          This PLEDGE AND SECURITY AGREEMENT (the "Agreement"), dated as of
December 21, 2001, is by and between Webb Interactive Services, Inc., a
         --
corporation organized and existing under the laws of Colorado (the "Pledgor")
and Jona, Inc.__________, a resident of the State of Wyoming (the "Pledgee").
    ----------                                       -------

                                   Recitals
                                   --------

          WHEREAS, the Pledgor has given a promissory note to Pledgee, of even
date herewith (the "Note");

          WHEREAS, as a condition to the consummation of the transactions
contemplated by the Note, the Pledgor has agreed to secure its obligations under
the Note by entering into this Agreement.

                                   Agreement
                                   ---------

          NOW, THEREFORE, the Pledgor and the Pledgee hereby agree as follows:

               XIX.    Pledge and Grant of Security Interest.
               ----    --------------------------------------

                            A.   For value received and to induce the Pledgee
          to extend a loan to the Pledgor, the Pledgor hereby pledges and
          assigns to the Pledgee and grants as security to the Pledgee for all
          present and future obligations, indebtedness and liabilities of all
          kinds of Pledgor to the Pledgee under the Note (the "Secured
          Obligations"), a first lien on, and security interest in, all its
          right, title and interest in and to the following:

                       iv.  1,200,000 shares of the Series C Convertible
                            ---------
          Preferred Stock of Jabber, Inc., a Delaware corporation (the "Pledged
          Subsidiary"), which are presently owned by the Pledgor (and all
          additional shares acquired by the Pledgor by stock dividend, stock
          split, distribution or otherwise with respect to the 1,200,000 shares
                                                               ---------
          of Series C Convertible Preferred Stock (all such shares of stock of
          the Pledged Subsidiary pledged hereunder being referred to
          collectively as the "Pledged Shares");

                       v.   all certificates representing any of the Pledged
          Shares, whether currently existing or hereafter issued; and

                       vi.  except as otherwise provided in Section 5 hereof,
                                                            ---------
          any and all dividends, cash, securities, instruments, warrants,
          options and

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          other property, proceeds and distributions from time to time received,
          receivable, paid or otherwise distributed in respect of, in
          substitution for, in addition to or in exchange for or evidencing any
          of the Pledged Shares and all proceeds thereof.

               (b)   The Pledged Shares, the certificates therefor, all
dividends, cash, securities, instruments, warrants, options and other property,
proceeds and distributions from time to time received, receivable, paid or
otherwise distributed in respect of, in substitution for, in addition to or in
exchange for or evidencing any of the Pledged Shares and all proceeds thereof
together with all other property, rights and interests described in this Section
                                                                         -------
1, whether now existing or hereafter acquired or obtained, are referred to
-
herein collectively as the "Collateral."

               XX.   Delivery of Pledged Share Certificates; Registry Notations.
                     ----------------------------------------------------------

                            A.   All certificates or instruments representing or
          evidencing the Pledged Shares referred to in Section 1 hereof have
                                                       ---------
          previously been delivered or are being delivered to the Pledgee
          concurrently with the execution of this Agreement, and are in suitable
          form for transfer by delivery, endorsed in blank or accompanied by
          duly executed undated instruments of transfer or assignments in blank,
          having attached thereto or to such certificates all requisite federal,
          state or provincial stock transfer tax stamps, all in form and
          substance satisfactory to the Pledgee.

                            B.   All necessary and appropriate entries,
          notations and written descriptions in the books or share registry of
          the Pledged Subsidiary evidencing and necessary or desirable to
          perfect the pledge of the Collateral pursuant hereto have been or will
          be made concurrently with the execution of this Agreement, and the
          Pledgor shall pay all requisite federal, state, provincial or other
          governmental fees or taxes therefor. The Pledgor shall forthwith take
          all other actions necessary, appropriate or desirable pursuant to
          applicable law to perfect the pledge of the Collateral.

               XXI.  Representations, Warranties, Covenants and Agreements of
               ----  --------------------------------------------------------
     the Pledgor.
     -----------

          The Pledgor represents, warrants, covenants and agrees that:

                            A.   The Pledged Shares have been duly authorized
          and are validly issued, fully paid and non-assessable.

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                            B.   Except for the security interests granted
          hereby, the Pledgor is, and as to Collateral acquired after the date
          hereof the Pledgor shall and will be at the time of acquisition, the
          record and beneficial owner and holder of the Collateral free from any
          adverse claim, security interest, pledge, encumbrance, lien, charge,
          or other right, title or interest of any person other than the
          Pledgee, and covenants that at all times the Collateral will be and
          remain free of all such adverse claims, security interests, pledges,
          encumbrances, liens, charges or other adverse interests by third
          parties. The Pledged Shares are free from and not otherwise subject to
          any voting agreements, voting trusts, proxies, options, preferential
          purchase rights or other right of any party to acquire all or any
          portion of the Pledged Shares.

                            C.   (i) The Pledgor has full power and lawful
          authority to enter into this Agreement and to pledge the Collateral to
          the Pledgee and to grant to the Pledgee a first and prior security
          interest therein as herein provided, all of which have been duly
          authorized by all necessary corporate action.

                     (ii)   The execution and delivery and the performance
          hereof are not in contravention of any charter, articles of
          incorporation or by-law provision, or of any Instrument or undertaking
          to which the Pledgor is a party or by which the Pledgor or its
          property is bound.

                     (iii)  This Agreement constitutes the valid and legally
          binding obligation of the Pledgor enforceable in accordance with its
          terms.

                     (iv)   The Pledgor will defend the Collateral against all
          claims and demands of all persons at any time claiming the same or any
          interest therein.  Any officer or representative acting for or on
          behalf of the Pledgor in connection with this Agreement or any aspect
          hereof, or entering into or executing this Agreement on behalf of the
          Pledgor, has been duly authorized to do so, and is fully empowered to
          act for and represent the Pledgor in connection with this Agreement
          and all matters related thereto or in connection therewith.

               (d)   (i)    Pledgor's principal place of business and chief
executive office is in Denver, Colorado.  Pledgor shall not change the location
of its principal place of business or chief executive office without twenty (20)
days prior written notice to the Pledgee.

                     (ii)   The preamble hereof states the correct legal name of
          the Pledgor and the Pledgor does not conduct business under any other
          name.  Pledgor shall not change its corporate name, nor do business
          under any name other than its current name, unless the Pledgor has
          delivered to

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          the Pledgee written notice of such other names at least 30 days prior
          to the date of first use thereof by the Pledgor.

               (e)   (i)    The Pledgor has not heretofore agreed to or signed
any pledge, charge, financing statement or security agreement which covers any
of the Collateral, and no such pledge, charge, financing statement or security
agreement is now on file in any public office and the Pledgor has not heretofore
filed or inserted any entries or notations in the books or share registry of the
Pledgor or the Pledgor evidencing any pledge of the Collateral (other than such
financing statements, security agreements and share registry notations, if any,
of which both written notice and true and correct copies have heretofore been
given by the Pledgor to the Pledgee).

                     (ii)   As long as any amount remains unpaid on any of the
          Secured Obligations or under any agreement entered into in connection
          with the Secured Obligations, except as expressly permitted by any
          such agreement, (A) the Pledgor will not enter into or execute any
          pledge, charge, security agreement or financing statement covering the
          Collateral, other than those pledges, charges, security agreements and
          financing statements in favor of the Pledgee hereunder, (B) the
          Pledgor shall not file or consent to the filing of any pledge,
          financing statement or statements (or any documents or papers filed as
          such) covering the Collateral, other than financing statements in
          favor of the Pledgee hereunder, unless in any case the prior written
          consent of the Pledgee shall have been obtained, and further (C) the
          Pledgor shall not insert, file or make any notations in the books or
          share registry of the Pledgor evidencing any pledge of the Collateral,
          other than such entries and notations in favor of the Pledgee
          hereunder.

                     (iii)  The Pledgor authorizes the Pledgee to file, in its
          discretion, in jurisdictions where this authorization will be given
          effect, a financing statement, personal property security act filing
          or other instrument for filing required by any jurisdiction applicable
          to the Collateral signed only by the Pledgee covering the Collateral,
          and hereby appoints the Pledgee as the Pledgor's attorney-in-fact to
          sign and file any such financing statements or other instruments
          covering the Collateral.  At the request of the Pledgee, the Pledgor
          will join the Pledgee in executing such Instruments as the Pledgee may
          determine from time to time to be necessary or desirable under
          provisions of any applicable Uniform Commercial Code, Personal
          Property Security Act or other applicable laws in effect where the
          Collateral is located or where the Pledgor conducts business; without
          limiting the generality of the foregoing, the Pledgor agrees to join
          the Pledgee, at the Pledgee's request, in executing one or more
          financing statements or other Instruments in form satisfactory to the
          Pledgee, and the Pledgor will pay the costs of filing or recording the
          same in all public offices at any time and from time to time whenever

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          filing or recording of any such financing statement or other
          Instrument is deemed by the Pledgee to be necessary or desirable.

                     XXII.  Rights of the Pledgee and the Pledgor Related to
                     -----  ------------------------------------------------
     Collateral.
     -----------

          The Pledgee may from time to time following the occurrence of an Event
of Default, as defined in the Note or the Purchase Agreement:

                                 A.   Transfer any of the Collateral into the
          name of the Pledgee or its nominee.

                                 B.   Notify parties obligated on any of the
          Collateral to make payment to the Pledgee of any amounts due or to
          become due thereunder.

                                 C.   Subject to compliance with federal and
          state securities laws, enforce collection of any of the Collateral by
          suit or otherwise; surrender, release or exchange all or any part
          thereof, or compromise or extend or renew for any period (whether or
          not longer than the original period) any obligation of any nature of
          any party with respect thereto; and exercise all other rights of the
          Pledgor in any of the Collateral, except as hereinafter provided with
          respect to income from or interest on the Collateral and except that,
          prior to an Event of Default, the Pledgor may exercise its voting and
          consensual rights with respect to any Collateral constituting voting
          securities.

                                 D.   Take possession or control of any proceeds
          of the Collateral.

          Until the occurrence of an Event of Default, the Pledgor shall have
the right to receive all income from or interest on the Collateral, and if the
Pledgee receives any such income or interest prior to the occurrence of an Event
of Default, the Pledgee shall pay the same promptly to the Pledgor, except that
in the case of securities or other property distributed by way of a dividend or
otherwise with respect to the Collateral, such securities or other property
shall be promptly delivered to the Pledgee to be held as Pledged Shares or other
Collateral hereunder.  Upon the occurrence of an Event of Default, the Pledgor
will not demand or receive any income from or interest on the Collateral, and if
the Pledgor receives any such income or interest without any demand by it, the
same shall be held by the Pledgor in trust for the Pledgee in the same medium in
which received, shall not be commingled with any assets of the Pledgor and shall
be delivered to the Pledgee in the form received, properly endorsed to permit
collection, not later than the next business day following the day of its
receipt.  The Pledgee may apply the net cash received from such income or
interest to payment of any of the Secured Obligations, provided that the Pledgee
shall account for and pay over to the Pledgor any such income or interest
remaining after payment in full of the Secured Obligations then outstanding.

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          So long as no Event of Default shall have occurred, the Pledgor shall
be entitled to exercise any and all voting and other consensual rights
pertaining to the Collateral or any part thereof for any purpose not
inconsistent with the terms of this Agreement or the Purchase Agreement;
provided, however, that the Pledgor shall not exercise or refrain from
--------  -------
exercising any such right if, in the Pledgee's judgment, such action would have
a material adverse effect on the value of the Collateral or any part thereof;
and, provided, further, that the Pledgor shall give the Pledgee at least five
     --------  -------
days' written notice of the manner in which it intends to exercise, or the
reasons for refraining from exercising, any such rights.

          The Pledgee shall never be under any obligation to collect, attempt to
collect, protect or enforce the Collateral or any security therefor, which the
Pledgor agrees and undertakes to do at the Pledgor's expense, but the Pledgee
may do so in its discretion at any time after the occurrence of an Event of
Default and at such time the Pledgee shall have the right to take any steps by
judicial process or otherwise as it may deem proper to effect the collection of
all or any portion of the Collateral or to protect or to enforce the Collateral
or any security therefor.  All expenses (including, without limitation,
reasonable attorneys' fees and expenses) incurred or paid by the Pledgee in
connection with or incident to any such collection or attempt to collect the
Collateral or actions to protect or enforce the Collateral or any security
therefor shall be borne by the Pledgor or reimbursed by the Pledgor to the
Pledgee upon demand.  The proceeds received by the Pledgee as a result of any
such actions in collecting or enforcing or protecting the Collateral shall be
utilized by the Pledgee in accordance with Section 10 hereof.
                                           ----------

               XXIII.  Further Assurances.
               ------  ------------------

          The Pledgor agrees to take such actions and to execute such stock or
bond powers or other Instruments and such other or different writings as the
Pledgee may reasonably request further to perfect, confirm and assure the
Pledgee's security interest in the Collateral and irrevocably authorizes the
Pledgee, as Pledgor's agent and attorney-in-fact, to assist the Pledgee's
realization thereon upon the occurrence of an Event of Default including,
without limitation, the right to receive, indorse, and collect all instruments
made payable to the Pledgor representing any dividend, interest payment or other
distribution in respect of the Pledged Shares or any part thereof.

               XXIV.   Events of Default.
               -----   -----------------

          The occurrence of an Event of Default under the Note shall constitute
an "Event of Default" hereunder.

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               XXV.    Rights and Remedies of the Pledgee Upon Default.
               ----    -----------------------------------------------

          If an Event of Default shall have occurred:

                                 A.   The Pledgee shall have and may, subject to
          compliance with federal and state securities laws, exercise with
          reference to the Collateral and the Secured Obligations any and all of
          the rights and remedies of a secured party under the Uniform
          Commercial Code ("UCC"), and as otherwise granted herein or under any
          other applicable law now or hereafter in effect executed by the
          Pledgor, including, without limitation, the right and power to sell,
          at public or private sale or sales, or otherwise dispose of, or
          otherwise utilize the Collateral and any part or parts thereof in any
          manner authorized or permitted under the UCC after default by a
          debtor, and to apply the proceeds thereof toward payment of any costs
          and expenses and attorneys' fees and expenses thereby incurred by the
          Pledgee and toward payment of the Secured Obligations in such order or
          manner as permitted by law. Specifically and without limiting the
          foregoing, the Pledgee shall have the right to take possession of all
          or any part of the Collateral, any certificate therefor or any
          security therefor and of all books, records, papers and documents of
          the Pledgor or in the Pledgor's possession or control relating to the
          Collateral which are not already in the Pledgee's possession, and for
          such purpose may enter upon any premises upon which any of the
          Collateral or any security therefor or any of said books, records,
          papers and documents are situated and remove the same therefrom
          without any liability for trespass or damages thereby occasioned. To
          the extent permitted by law, the Pledgor expressly waives any notice
          of sale or other disposition of the Collateral and all other rights or
          remedies of the Pledgor or formalities prescribed by law relative to
          sale or disposition of the Collateral or exercise of any other right
          or remedy of the Pledgee existing after default hereunder. The Pledgee
          shall have all other rights and remedies available, whether at law or
          in equity.

                                 B.   Upon notice by the Pledgee to the Pledgor,
          the Pledgee or its nominee or nominees shall have the sole and
          exclusive right to exercise all voting and consensual powers
          pertaining to the Collateral or any part thereof and may exercise such
          powers in such manner as the Pledgee may elect.

                                 C.   All dividends, payments of interest and
          other distributions of every character made upon or in respect of the
          Pledged Shares or any part thereof shall be deemed to be Collateral
          and shall be paid directly to and shall be held by the Pledgee as
          additional Collateral pledged under and subject to this Agreement.

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                                 D.   All rights to marshaling of assets of the
          Pledgor, including any such right with respect to the Collateral, are
          hereby waived by the Pledgor.

               XXVI.   Special Provisions for Pledged Shares.
               -----   -------------------------------------

          The Pledgor hereby acknowledges that the sale by the Pledgee of any of
the Pledged Shares pursuant to the terms hereof in compliance with federal and
applicable state or securities laws or the securities laws of any other
applicable jurisdiction exercising valid jurisdiction over the Pledged Shares
(as now in effect or as hereafter amended, or any similar statute hereafter
adopted with similar purpose or effect, the "Securities Laws") may require
strict limitations as to the manner in which the Pledgee or any subsequent
transferee of the Pledged Shares may dispose of such securities.  The Pledgor
understands that in order to protect the Pledgee's interest it may be necessary
to sell the Pledged Shares at a price less than the maximum price attainable if
a sale were delayed or were made in another manner, such as a public offering
requested under the Securities Laws.  The Pledgor has no and waives any
objection to a sale in such a manner.

               XXVII.  Application of Proceeds by the Pledgee.
               ------  --------------------------------------

          In the event the Pledgee sells or otherwise disposes of the Collateral
in the course of exercising the remedies provided for in Sections 8 or 9 hereof,
                                                         ----------    -
any amounts held, realized or received by the Pledgee pursuant to the provisions
hereof, including the proceeds of the sale of any of the Collateral or any part
thereof, shall be applied by the Pledgee first toward the payment of any costs
and expenses incurred by the Pledgee in enforcing this Agreement, then to any
amounts otherwise due hereunder or under the Guaranty, and then as provided in
the Purchase Agreement.  Any amounts and any Collateral remaining after such
application and after payment to the Pledgee of all of the Secured Obligations
in full shall be paid or delivered as required by law, or as a court of
competent jurisdiction may direct.

          The Pledgee shall be deemed to have exercised reasonable care in the
custody and preservation of the Collateral in its possession if the Collateral
is accorded treatment substantially equal to that which the Pledgee accords its
own property, it being understood that the Pledgee shall not have any
responsibility for (x) ascertaining or taking action with respect to calls,
conversions, exchanges, maturities, tenders or other matters relative to any
Collateral, whether or not the Pledgee has or is deemed to have knowledge of
such matters or (y) taking any necessary steps to preserve rights against any
parties with respect to any Collateral.

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               XXVIII. Absolute Interest.
               ------- -----------------

                                 A.   All rights of the Pledgee hereunder, and
          all obligations of the Pledgor hereunder, shall be absolute and
          unconditional irrespective of (i) any lack of validity or
          enforceability of any provision of the Note, any agreement with
          respect to the Secured Obligations or any other agreement or
          instrument relating to any of the foregoing, (ii) any change in the
          time, manner or place of payment of, or in any other term of, all or
          any of the Secured Obligations, or any other amendment or waiver of or
          any consent to any departure from the, (iii) any exchange, release or
          non-perfection of any Collateral or any other security for or
          Collateral securing the Secured Obligations, or any release or
          amendment or waiver of or any consent to or departure from any
          guarantee or any other security, for all or any of the Secured
          Obligations or (iv) any other circumstance which might constitute a
          defense available to, or a discharge of, the Pledgor in respect of the
          Secured Obligations or this Agreement.

                                 B.   The Pledgee is hereby subrogated to all of
          the Pledgor's interests, rights and remedies in respect to the
          Collateral and all security now or hereafter existing with respect
          thereto and all guaranties and endorsements thereof and with respect
          thereto.

               XXIX.   Termination.
               -----   -----------

          This Agreement and the security interests created hereunder shall
terminate when all the Secured Obligations have been indefeasibly paid in full,
at which time the Pledgee shall execute and deliver to the Pledgor all documents
which the Pledgor shall reasonably request to evidence termination of such
security interest and shall return physical possession of any Collateral then
held by the Pledgee to the Pledgor; provided, however, that all indemnities of
                                    --------  -------
the Pledgor contained in this Agreement shall survive, and remain in full force
and effect regardless of the termination of the security interest of this
Agreement.

               XXX.    Additional Information.
               ----    ----------------------

          The Pledgor agrees to furnish the Pledgee from time to time such
additional information and copies of such documents relating to this Agreement,
the Collateral, the Secured Obligations and the Pledgor's financial condition as
the Pledgee may reasonably request.

               XXXI.  Notices.
               -----  -------

Any communication, notice or demand to be given to a party hereunder shall be in
writing and delivered in person or duly sent by first class registered or
certified mail, return receipt requested, postage prepaid, to such party at the
address set forth on the signature page hereof.

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               XXXII.  Indemnity and Expenses.
               ------  ----------------------

          The Pledgor agrees to indemnify the Pledgee, and the officers,
directors, employees and agents of the Pledgee (with the foregoing referred to
collectively as the "Indemnified Parties"), for, and to hold each Indemnified
Party harmless against, any loss, liability, claim judgment, settlement,
compromise, obligation, damage or penalty of any kind or nature, including the
costs and expenses of the Indemnified Party incurred in defending itself against
any claim of liability in connection with or arising out of this Agreement,
unless arising from the gross negligence or willful misconduct of such
Indemnified Party.

               XXXIII. No Waiver; Cumulative Rights.
               ------- ----------------------------

          No failure on the part of the Pledgee to exercise, and no delay in
exercising, any right, remedy or power hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise by the Pledgee of any right,
remedy or power hereunder preclude any other or future exercise of any other
right, remedy or power.  Each and every right, remedy and power hereby granted
to the Pledgee or allowed it by law or other agreement shall be cumulative and
not exclusive of any other and may be exercised by the Pledgee from time to
time.

               XXXIV.  Governing Law; Consent to Jurisdiction.
               ------  --------------------------------------

          This Agreement shall be governed by and construed in accordance with
the laws of the State of Colorado, excluding the body of law relating to
conflict of laws.

               XXXV.  Execution in Counterparts.
               -----  -------------------------

          This Agreement may be executed in any number of counterparts, each of
which shall be an original, but such counterparts shall together constitute one
and the same agreement.  Each of the parties to this Agreement will be entitled
to rely upon delivery by facsimile machine of an executed copy of this Agreement
and acceptance of such facsimile copy will be legally effective to create a
valid and binding agreement between the parties in accordance with the terms
hereof.

               XXXVI.  Severability.
               ------  ------------

          If any one or more provisions of this Agreement should be declared
invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein shall not in any way
be affected, impaired or prejudiced thereby.

          IN WITNESS WHEREOF, the parties have caused this Pledge Agreement to
be duly executed as of the date first above written.

                                      185
<PAGE>

                                        PLEDGOR:

                                        WEBB INTERACTIVE SERVICES, INC.

                                        By:    /s/ William R. Cullen
                                               ---------------------
                                        Name:  William R. Cullen
                                        Title: CEO

                                                  1899 Wynkoop, Suite 600
                                                  Denver, CO 80202

                                        PLEDGEE:

                                        JONA, INC.

                                        By:    /s/ Neil A. McMurry
                                               -------------------
                                        Name:  Neil A. McMurry
                                        Title: President

                                             1701 East E. Street
                                             Casper, WY 82601

                                      186
<PAGE>

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES
LAWS OF ANY STATE, AND MAY NOT BE OFFERED OR SOLD UNLESS A REGISTRATION
STATEMENT UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS SHALL
HAVE BECOME EFFECTIVE WITH REGARD THERETO, OR AN EXEMPTION FROM REGISTRATION
UNDER SUCH LAWS IS AVAILABLE IN CONNECTION WITH SUCH OFFER OR SALE.

                                PROMISSORY NOTE

Date of Issuance:  December 21, 2001 (the "Date of Issuance")

Name of Holder:  Jona, Inc. (the "Holder")

Principal Amount:  $300,000 (the "Principal Amount")

     For good and valuable consideration received, Webb Interactive Services,
Inc., a Colorado corporation (the "Company"), promises to pay to the Holder the
Principal Amount, plus simple interest accrued on unpaid principal from the Date
of Issuance until paid at the rate of ten percent (10%) per annum (the "Base
Rate").

     The Company's obligations under this Note are secured by a Pledge and
Security Agreement as of even date herewith (the "Security Agreement.")

     The following is a statement of the rights of the Holder and the terms and
conditions to which this Note is subject:

1.   Payment.
     --------

     (a) Obligation.  Subject to acceleration and mandatory prepayment upon the
         ----------
occurrence of any Event of Default, the outstanding principal under this Note
and the accrued interest thereon will be due and payable on demand at any time
on or after April 30, 2002 (the "Demand Payment Date"). All payments of
principal and interest under this Note shall be payable in immediately available
funds to an account at a bank designated in writing by the Holder. In the
absence of any such written designation, any such principal or interest payment
shall be deemed made on the date a check in the applicable amount payable to the
order of Holder is received by the Holder at the address set forth below or such
other address as the Holder shall designate in writing.

     (b) Interest Payment.  The Company promises to pay interest on the
         ----------------
Principal Amount at the Base Rate. Interest on this Note shall accrue from and
including the date of issuance of this Note through and until repayment of the
principal and payment of all accrued interest in full and the accrued interest
shall be payable in full on the earlier to occur of the Demand Payment Date or
the date the Note is accelerated pursuant to Section 1(e).
                                             ------------

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     (c) Prepayment.  On ten (10) days' prior written notice to the Holder, the
         ----------
Company may prepay this Note in whole or in part at any time without penalty.
Prepayments will be applied to accrued but unpaid interest first and then to
unpaid principal.

     (d) Defaults.  An Event of Default shall occur if: (i) the Company shall
         --------
default in the payment of the principal of or any installment of interest on
this Note, when and as the same shall become due and payable, whether at
maturity, on demand, on a date fixed for payment thereof, at a date fixed for
prepayment, by acceleration or otherwise, (ii) the Company shall fail to perform
or observe any covenant, obligation or agreement contained herein and the
Company has not remedied such default within fifteen (15) days after notice of
default has been given by the Investor to the Company, (iii) an involuntary
proceeding shall be commenced or an involuntary petition shall be filed in a
court of competent jurisdiction seeking (a) relief in respect of the Company, or
of a substantial part of its property or assets, under Title 11 of the United
States Code, as now constituted or hereafter amended, or any other federal or
state bankruptcy, insolvency, receivership or similar law, (b) the appointment
of a receiver, trustee, custodian, sequestrator, conservator or similar official
for the Company, or for a substantial part of its property or assets, or (c) the
winding up or liquidation of the Company, and such proceeding or petition shall
continue undismissed for 60 days, or any order or decree approving or ordering
any of the foregoing shall be entered or (iv) the Company shall (a) voluntarily
commence any proceeding or file any petition seeking relief under Title 11 of
the United States Code, as now constituted or hereafter amended, or any other
federal or state bankruptcy, insolvency, receivership or similar law, (b)
consent to the institution of, or fail to contest in a timely and appropriate
manner, any proceeding or the filing of any petition described herein, (c) file
an answer admitting the material allegations of a petition filed against it in
any such proceeding, (e) make a general assignment for the benefit of creditors,
(f) become unable, admit in writing its inability or fail generally to pay its
debts as they become due, (g) suspend the operation of its business or (h) take
any action for the purpose of effecting any of the foregoing.

     (e) Acceleration.  If an Event of Default occurs under Section 1(d)(iii) or
         ------------
(iv), then the outstanding principal of and all accrued interest on this Note
shall automatically become immediately due and payable.  If an Event of Default
occurs under Section 1(d)(i) or (ii) and is continuing, the Holder, by written
notice to the Company, may declare the outstanding principal of and all accrued
interest on this Note immediately due and payable.  Upon such declaration, such
principal and interest shall become immediately due and payable. After April 30,
2002, if the default has not been cured or all amounts due paid to the Holder,
then all such principal, interest, fees and other amounts shall be immediately
due and payable and the Holder shall have all of its rights and remedies under
this Note and the Security Agreement.

     (f) Enforcement.  Upon the occurrence of any one or more Events of Default,
         -----------
the Holder may proceed to protect and enforce its rights hereunder by suit in
equity, action at law or by other appropriate proceeding, and the Holder may
pursue all of its

                                      188
<PAGE>

rights and remedies under this Note and the Security Agreement. The Holder shall
have all rights and remedies available at law or in equity. If an Event of
Default occurs, the Company will pay to the Holder such amounts as shall be
sufficient to cover the costs and expenses (including, without limitation,
reasonable attorneys' fees and expenses) of such Holder due to, or incurred as a
consequence of, such default.

2.   Governing Law.  This Note will be governed by and construed in accordance
     -------------
with the laws of the State of Colorado, excluding that body of law relating to
conflict of laws.

3.   Waiver.  The Company hereby waives diligence, presentment, demand, protest
     ------
and notice of dishonor.

4.   Collection Expenses.  If suit is brought for collection of this Note, the
     -------------------
Company shall pay all reasonable expenses, including reasonable fees and costs
of attorneys, incurred by the Holder in connection therewith whether or not such
suit is prosecuted to judgment.

     IN WITNESS WHEREOF, the Company has caused this Note to be issued as of the
date first written above.

                              WEBB INTERACTIVE SERVICES, INC.

                              By /s/ William R. Cullen
                                 --------------------------------

                              Its:  CEO
                                   ------------------------------

Holder's Address:

Jona, Inc.
------------------------
1701 East E Street
------------------------
Casper, WY   826-1
------------------------

                                      189
<PAGE>

THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR ANY STATE SECURITIES LAW, AND MAY NOT BE OFFERED FOR SALE, SOLD OR
TRANSFERRED UNLESS A REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE
SECURITIES LAWS SHALL BE EFFECTIVE WITH RESPECT THERETO, OR AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS IS
AVAILABLE IN CONNECTION WITH SUCH OFFER, SALE OR TRANSFER.

Warrant to Purchase                                Issue Date: December 21, 2001
60,000 Shares
------

                        WEBB INTERACTIVE SERVICES, INC.

                       WARRANT TO PURCHASE COMMON STOCK

     THIS CERTIFIES that Jona, Inc. or any subsequent holder hereof (the
                         ----------
"Holder"), has the right to purchase from WEBB INTERACTIVE SERVICES, INC., a
 ------
Colorado corporation (the "Company"), up to 60,000 fully paid and nonassessable
                           -------          ------
shares of the Company's common stock, no par value (the "Common Stock"), subject
                                                         ------ -----

to adjustment as provided herein, at a price equal to the Exercise Price (as
defined below), at any time beginning on the date on which this Warrant is
issued (the "Issue Date") and ending at 5:00 p.m., eastern time, on the date
             ----------
that is the third (3rd) anniversary of the Issue Date (the "Expiration Date").
                                                            ----------------

     1. Exercise.

          (a)  Right to Exercise; Exercise Price. The Holder shall have the
               -----------------  --------------
right to exercise this Warrant at any time and from time to time during the
period beginning on the Issue Date and ending on the Expiration Date as to all
or any part of the shares of Common Stock covered hereby (the "Warrant Shares").
                                                               --------------
The "Exercise Price" payable by the Holder in connection with the exercise of
this Warrant shall initially be $2.50 per share, subject to adjustment for the
events specified in Section 6 below.

          (b)  Exercise Notice. In order to exercise this Warrant, the Holder
               ---------------
shall send by facsimile transmission, at any time prior to 7:00 p.m., eastern
time, on the Business Day (as defined below) on which the Holder wishes to
effect such exercise (the "Exercise Date"), to the Company a copy of the notice
                           -------------
of exercise in the form attached hereto as Exhibit A (the "Exercise Notice")
                                                           ---------------
stating the number of Warrant Shares as to which such exercise applies and the
calculation therefor. As used herein, "Business Day" shall mean any day on which
                                       ------------
the New York Stock Exchange (the "NYSE") and commercial banks in the city of New
                                  ----
York are open for business. The Holder shall thereafter deliver to the Company
the original Exercise Notice, the original Warrant and (unless a cashless
exercise is intended) the Exercise Price. In the case of a dispute as to

                                      190
<PAGE>

the calculation of the Exercise Price or the number of Warrant Shares issuable
hereunder (including without limitation the calculation of any adjustment to the
Exercise Price pursuant to Section 6 below), the Company shall promptly issue to
the Holder the number of Warrant Shares that are not disputed and shall submit
the disputed calculations to the Company's independent accountant within two (2)
Business Days following the Exercise Date. The Company shall cause such
accountant to calculate the Exercise Price and/or the number of Warrant Shares
issuable hereunder and to notify the Company and the Holder of the results in
writing no later than two Business Days following the day on which such
accountant received the disputed calculations. Such accountant's calculation
shall be deemed conclusive absent manifest error. The fees of any such
accountant shall be borne by the party whose calculations were most at variance
with those of such accountant.

          (c)  Early Expiration. In the event that following the first
               ----------------
anniversary of the Issue Date, the Closing Bid Price (as defined in the
Securities Purchase Agreement) of the Common Stock during any period of ten (10)
consecutive Trading Days is equal to or greater than twice the Exercise Price
then in effect (an "Expiration Trigger Event"), the Company may deliver to the
                    ------------------------
Holder, within five(5) business days following the occurrence of an Expiration
Trigger Event, a written notice to such effect (a "Expiration Notice") and this
                                                   -----------------
Warrant shall expire on the date (the "Early Expiration Date") which is thirty
                                       ---------------------
(30) Trading Days following the business day on which such Expiration Notice is
delivered to the Holder Notwithstanding the foregoing, the Holder may exercise
all or any part of this Warrant at the then effective Exercise Price by
delivering an Exercise Notice to the Company at any time prior to the Early
Expiration Date.

          (d)  Cancellation of Warrant. This Warrant shall be canceled upon its
               -----------------------
exercise and, if this Warrant is exercised in part, the Company shall, at the
time that it delivers Warrant Shares to the Holder pursuant to such exercise as
provided herein, issue a new warrant, and deliver to the Holder a certificate
representing such new warrant, with terms identical in all respects to this
Warrant (except that such new warrant shall be exercisable into the number of
shares of Common Stock with respect to which this Warrant shall remain
unexercised); provided, however, that the Holder shall be entitled to exercise
all or any portion of such new warrant at any time following the time at which
this Warrant is exercised, regardless of whether the Company has actually issued
such new warrant or delivered to the Holder a certificate therefor.

     2. Delivery of Warrant Shares Upon Exercise.

     Upon receipt of an Exercise Notice pursuant to paragraph 1 above, the
Company shall, (A) in the case of a Cashless Exercise (as defined below), no
later than the close of business on the third (3rd) Business Day following the
Exercise Date set forth in such Exercise Notice, (B) in the case of a Cash
Exercise (as defined below) no later than the close of business on the later to
occur of (i) the third (3rd) Business Day following the Exercise Date set forth
in such Exercise Notice and (ii) such later date on which the Company shall have
received payment of the Exercise Price, and (C) with respect to Warrant Shares
which are disputed as described in paragraph 1(b) above, and required to

                                      191
<PAGE>

be delivered by the Company pursuant to the accountant's calculations described
therein, the close of business on the third (3rd) Business Day following the
determination made pursuant to paragraph 1(b) (the "Delivery Date"), issue and
                                                    -------------
deliver or caused to be delivered to the Holder the number of Warrant Shares as
shall be determined as provided herein. The Company shall effect delivery of
Warrant Shares to the Holder by, as long as the Company's designated transfer
agent for the Common Stock (the "Transfer Agent") participates in the Depository
                                 --------------
Trust Company ("DTC") Fast Automated Securities Transfer program ("FAST"),
                ---                                                ----
crediting the account of the Holder or its nominee at DTC (as specified in the
applicable Exercise Notice) with the number of Warrant Shares required to be
delivered, no later than the close of business on such Delivery Date. In the
event that the Transfer Agent is not a participant in FAST, or if Warrant Shares
are not otherwise eligible for delivery through FAST, or if the Holder so
specifies in an Exercise Notice or otherwise in writing on or before the
Exercise Date, the Company shall effect delivery of Warrant Shares by delivering
to the Holder or its nominee physical certificates representing such Warrant
Shares, no later than the close of business on such Delivery Date. Warrant
Shares delivered to the Holder shall contain a restrictive indicating that the
Warrant Shares may not be sold except (i) pursuant to an effective registration
statement under the Securities Act of 1933, as amended, (ii) Rule 144 under the
Securities Act of 1933, as amended, or (iii) pursuant to Rule 144(k) under the
Securities Act of 1933, as amended, or any successor rule or provision.

     3. Failure to Deliver Warrant Shares.

     (a)  Exercise Default. In the event that, as a result of any action or
          ----------------
failure to act on the part of the Company (including without limitation a
failure by the Company to have a sufficient number of shares of Common Stock
authorized and reserved for issuance pursuant to exercise of the Warrants), the
Company does not deliver to a Holder certificates representing the number of
Warrant Shares specified in the applicable Exercise Notice on or before the
Delivery Date therefor and such failure continues for ten (10) Business Days (an
"Exercise Default"), the Company shall pay to the Holder payments ("Exercise
 ----------------                                                   --------
Default Payments") in the amount of (i) (N/365) multiplied by (ii) the aggregate
----------------                                ----------
Exercise Price for the Warrant Shares which are the subject of such Exercise
Default multiplied by (iii) the lower of twenty four percent (24%) and the
        ----------
maximum rate permitted by applicable law, where "N" equals the number of days
elapsed between the original Delivery Date for such Warrant Shares and the date
on which all of such Warrant Shares are issued and delivered to the Holder.
Amounts payable under this subparagraph 3(a) shall be paid to the Holder in
immediately available funds on or before the fifth (5th) Business Day of the
calendar month immediately following the calendar month in which such amount has
accrued.

     (b)  Buy-in. Nothing herein shall limit a Holder's right to pursue actual
          ------
damages for the Company's failure to issue and deliver Warrant Shares in
connection with an exercise on the applicable Delivery Date (including, without
limitation, damages relating to any purchase of shares of Common Stock by the
Holder to make delivery on a sale effected in anticipation of receiving Warrant
Shares upon exercise, such damages to be in an amount equal to (A) the aggregate
amount paid by the Holder for the shares of

                                      192
<PAGE>

Common Stock so purchased minus (B) the aggregate amount of net  proceeds, if
                          -----
any, received by the Holder from the sale of the Warrant Shares issued by the
Company pursuant to such exercise), and the Holder shall have the right to
pursue all remedies available to it at law or in equity (including, without
limitation, a decree of specific performance and/or injunctive relief).

     (c)  Reduction of Exercise Price. In the event that, as a result of any
          ---------------------------
action or failure to act on the part of the Company (including without
limitation a failure by the Company to have a sufficient number of shares of
Common Stock authorized and reserved for issuance pursuant to exercise of the
Warrants), a Holder has not received certificates representing the Warrant
Shares by the tenth (10th) Business Day following an Exercise Default, the
Holder may, upon written notice to the Company, regain on such Business Day the
rights of a Holder of this Warrant, or part thereof, with respect to the Warrant
Shares that are the subject of such Exercise Default, and the Exercise Price for
such Warrant Shares shall be reduced by one percent (1%) for each day beyond
such 10th Business Day in which the Exercise Default continues. In such event,
the Holder shall retain all of the Holder's rights and remedies with respect to
the Company's failure to deliver such Warrant Shares (including without
limitation the right to receive the cash payments specified in subparagraph 3(a)
above).

     (d)  Holder of Record. Each Holder shall, for all purposes, be deemed to
          ----------------
have become the holder of record of Warrant Shares on the Exercise Date of this
Warrant, irrespective of the date of delivery of such Warrant Shares. Nothing in
this Warrant shall be construed as conferring upon the Holder hereof any rights
as a stockholder of the Company prior to the Exercise Date.

     4. Exercise Limitations.

     Notwithstanding anything to the contrary contained herein, this Warrant
shall not be exercisable by the Holder to the extent (but only to the extent)
that, if exercisable by the Holder, the Holder would be the beneficial owner of
more than 4.99%  of the shares of Common Stock. For the purposes of this Section
4, beneficial ownership and all determinations and calculations shall be
determined in accordance with Section 13(d) of the Securities Exchange Act of
1934, as amended, and all applicable rules and regulations thereunder. For
clarification, it is expressly a term of this security that the limitations
contained in this Section 4 shall apply to each successive Holder.  The
restriction contained in this Section 4 may not be altered, amended, deleted or
changed in any manner whatsoever unless the holders of a majority of the
outstanding shares of Common Stock and the Holder hereof approve such
alteration, amendment, deletion or change.

     5. Payment of the Exercise Price.

     The Holder may pay the Exercise Price in either of the following forms or,
at the election of Holder, a combination thereof:

          (a) Cash Exercise: by delivery of immediately available funds.

                                      193
<PAGE>

          (b) Cashless Exercise: by surrender of this Warrant to the Company
together with a notice of cashless exercise, in which event the Company shall
issue to the Holder the number of Warrant Shares determined as follows:

          X      =    Y  x   (A -- B)
                      ---------------
                            A

where:    X = the number of Warrants Shares to be issued to the Holder.

          Y = the number of Warrant Shares with respect to which this Warrant is
              being exercised.

          A = the average of the Closing Trade Prices (as defined in the
              Securities Purchase Agreement) of the Common Stock for the five
              (5) Trading Days immediately prior to for (but not including) the
              Exercise Price;

          B = the Exercise Price;

provided, however, that the Holder may exercise this Warrant pursuant to a
Cashless Exercise only if, on the Exercise Date, the resale of Warrant Shares is
not covered by an effective registration statement under the Securities Act of
1933, as amended, that is available to the Holder on such date.

     For purposes of Rule 144 under the Securities Act of 1933, as amended, it
is intended, understood and acknowledged that the Warrant Shares issued in a
cashless exercise transaction shall be deemed to have been acquired by the
Holder, and the holding period for the Warrant Shares shall be deemed to have
been commenced, on the Issue Date.

     6. Anti-Dilution Adjustments; Distributions; Other Events.

     The Exercise Price and the number of Warrant Shares issuable hereunder
shall be subject to adjustment from time to time as provided in this Section 6.
In the event that any adjustment of the Exercise Price or number of Warrant
Shares as required herein results in a fraction of a cent or fraction of a
share, as applicable, such exercise Price or number of Warrant Shares shall be
rounded up or down to the nearest cent or share, as applicable.

     (a) Issuance of Other Securities.  If, at any time before the exercise of
         ----------------------------
this Warrant, the Company shall issue any Common Stock, whether upon the
exercise of rights, warrants, securities convertible or exercisable into Common
Stock or otherwise, at a price that is lower than the Exercise Price in effect,
such Exercise Price shall be reduced to such lower price.  Further, if the
Company shall issue any securities which are

                                      194
<PAGE>

convertible into or exchangeable for Common Stock or represent the right to
purchase Common Stock with a fixed conversion or exercise price less than the
Exercise Price then in effect, the Exercise Price shall be reduced to such lower
price. No adjustment to the Exercise Price will be made (i) upon the exercise or
conversion of any warrants, options or convertible securities issued and
outstanding on the date hereof in accordance with the terms of such securities
as of such date; (ii) upon the grant or exercise of any stock or options which
may hereafter be granted or exercised under any employee, consultant or director
benefit plan of the Company now existing or to be implemented in the future, so
long as the issuance of such stock or options is approved by majority of non-
employee members of the Board of Directors of the Company or a majority of the
members of a committee of non-employee directors established for such purpose.

     (b)  Subdivision or Combination of Common Stock. If the Company, at any
          ------------------------------------------
time after the initial issuance of this Warrant, subdivides (by any stock split,
stock dividend, recapitalization, reorganization, reclassification or otherwise)
its shares of Common Stock into a greater number of shares, then after the date
of record for effecting such subdivision, the Exercise Price in effect
immediately prior to such subdivision will be proportionately reduced. If the
Company, at any time after the initial issuance of this Warrant, combines (by
reverse stock split, recapitalization, reorganization, reclassification or
otherwise) its shares of Common Stock into a smaller number of shares, then,
after the date of record for effecting such combination, the Exercise Price in
effect immediately prior to such combination will be proportionally increased.
In the event of any adjustment to the Exercise Price arising from an event
specified in this paragraph (c), the number of shares of Common Stock into which
this Warrant is exercisable will be proportionately increased or reduced, as the
case may be.

     (c)  Distributions. If the Company or any of its subsidiaries shall at any
          -------------
time distribute to holders of Common Stock (or to a holder, other than the
Company, of the common stock of any such subsidiary) cash, evidences of
indebtedness or other securities or assets (other than cash dividends or
distributions payable out of earned surplus or net profits for the current or
the immediately preceding year) including any dividend or distribution in shares
of capital stock of a subsidiary of the Company (collectively, a "Distribution")
                                                                  ------------
then, in any such case, the Holder of this Warrant shall be entitled to receive,
at the same time as such assets are received by a holder of such stock, an
amount and type of such Distribution as though such Holder were a holder on the
record date therefor of a number of shares of Common Stock into which this
Warrant is exercisable as of such record date (such number of shares to be
determined at the Exercise Price then in effect and without regard to any
limitation on exercise of this Warrant that may exist pursuant to the terms
hereof or otherwise).

     (d)  Additional Shares, Securities or Assets.  In the event that at any
          -----------------  --------------------
time, as a result of an adjustment made pursuant to this Section 6, the Holder
of this Warrant shall, upon exercise of this Warrant, become entitled to receive
securities or assets (other than Common Stock) then, wherever appropriate, all
references herein to shares of Common Stock shall be deemed to refer to and
include such shares and/or other securities or assets; and thereafter the number
of such shares and/or other securities or assets shall be subject

                                      195
<PAGE>

to adjustment from time to time in a manner and upon terms as nearly equivalent
as practicable to the provisions of this Section 6.

     (e)  Special Adjustment and Notice of Adjustment.  Upon the occurrence of
          -------------------------------------------
any event which requires any adjustment of the Exercise Price, then, and in each
such case, the Company shall give notice thereof to the Holder, which notice
shall state the Exercise Price resulting from such adjustment and the increase
or decrease in the number of Warrant Shares purchasable at such price upon
exercise, setting forth in reasonable detail the method of calculation and the
facts upon which such calculation is based.  Such calculation shall be certified
by the chief financial officer of the Company.  If the Company takes any actions
(including under or by virtue of this Section 6) which would have a dilutive
effect on the Holder or which would materially and adversely affect the Holder
with respect to its investment in the Warrant, and if the provisions of  this
Section 6, are not strictly applicable to such actions or, if applicable to such
actions, would not operate to equitably protect the Holder against such actions,
then the Company shall promptly upon notice from Holder appoint its independent
certified public accountants to determine as promptly as practicable an
appropriate adjustment to the terms hereof, including without limitation
adjustments to the Exercise Price, or another appropriate action to so equitably
protect such Holder and prevent any such dilution and any such material adverse
effect, as the case may be.  Following such determination, the Company shall
forthwith make the adjustments or take the other actions described therein.

     (f)  Other Notices.  In case at any time:
          -------------

          (i)   the Company shall declare any dividend upon the Common Stock
payable in shares of stock of any class or make any other distribution to the
holders of the Common Stock;

          (ii)  the Company shall offer for subscription pro rata to the holders
of the Common Stock any additional shares of stock of any class or other rights;

          (iii) there shall be any capital reorganization of the Company, or
reclassification of the Common Stock, or consolidation or merger of the Company
with or into, or sale of all or substantially all of its assets to, another
corporation or entity; or

          (iv)  there shall be a voluntary or involuntary dissolution,
liquidation or winding-up of the Company;

then, in each such case, the Company shall give to the Holder (a) notice of the
date on which the books of the Company shall close or a record shall be taken
for determining the holders of Common Stock entitled to receive any such
dividend, distribution, or subscription rights or for determining the holders of
Common Stock entitled to vote in respect of any such reorganization,
reclassification, consolidation, merger, sale, dissolution, liquidation or
winding-up and (b) in the case of any such reorganization, reclassification,
consolidation, merger, sale, dissolution, liquidation or winding-up, notice of
the date (or, if not then known, a reasonable approximation thereof by the
Company)

                                      196
<PAGE>

when the same shall take place. Such notice shall also specify the date on which
the holders of Common Stock shall be entitled to receive such dividend,
distribution, or subscription rights or to exchange their Common Stock for stock
or other securities or property deliverable upon such reorganization,
reclassification, consolidation, merger, sale, dissolution, liquidation, or
winding-up, as the case may be. Such notice shall be given at least thirty (30)
days prior to the record date or the date on which the Company's books are
closed in respect thereto, but in no event earlier than public announcement of
such proposed transaction or event. Failure to give any such notice or any
defect therein shall not affect the validity of the proceedings referred to in
clauses (i), (ii), (iii) and (iv) above.

     7. Fractional Interests.

     No fractional shares or scrip representing fractional shares shall be
issuable upon the exercise of this Warrant, but on exercise of this Warrant, the
Holder hereof may purchase only a whole number of shares of Common Stock. If, on
exercise of this Warrant, the Holder hereof would be entitled to a fractional
share of Common Stock or a right to acquire a fractional share of Common Stock,
such fractional share shall be disregarded and the number of shares of Common
Stock issuable upon exercise shall be rounded up or down to the nearest whole
number of shares of Common Stock.

     8. Transfer of this Warrant.

     The Holder may sell, transfer, assign, pledge or otherwise dispose of this
Warrant, in whole or in part, as long as such sale or other disposition is made
pursuant to an effective registration statement or an exemption to the
registration requirements of the Securities Act of 1933, as amended, and
applicable state laws. Upon such transfer or other disposition, the Holder shall
deliver a written notice to Company, substantially in the form of the Transfer
Notice attached hereto as Exhibit B (the "Transfer Notice"), indicating the
                                          ---------------
person or persons to whom this Warrant shall be transferred and, if less than
all of this Warrant is transferred or this Warrant is transferred in parts, the
number of Warrant Shares to be covered by the part of this Warrant to be
transferred to each such person. Within three (3) Business Days of receiving a
Transfer Notice and the original of this Warrant, the Company shall deliver to
the each transferee designated by the Holder a Warrant or Warrants of like tenor
and terms for the appropriate number of Warrant Shares. Notwithstanding the
foregoing, no Holder may knowingly and voluntarily sell this Warrant (or any
portion thereof) to an entity that is a competitor of the Company.

     9. Benefits of this Warrant.

       Nothing in this Warrant shall be construed to confer upon any person
other than the Holder of this Warrant any legal or equitable right, remedy or
claim under this Warrant and this Warrant shall be for the sole and exclusive
benefit of the Holder of this Warrant.

                                      197
<PAGE>

     10. Loss, theft, destruction or mutilation of Warrant.

       Upon receipt by the Company of evidence of the loss, theft, destruction
or mutilation of this Warrant, and (in the case of loss, theft or destruction)
of indemnity or security reasonably satisfactory to the Company, and upon
surrender of this Warrant, if mutilated, the Company shall execute and deliver a
new Warrant of like tenor and date.

     11. Notice or Demands.

       Except as otherwise provided herein, any notice, demand or request
required or permitted to be given pursuant to the terms of this Warrant shall be
in writing and shall be deemed given (i) when delivered personally or by
verifiable facsimile transmission (with an original to follow) on or before 5:00
p.m., eastern time, on a Business Day or, if such day is not a Business Day, on
the next succeeding Business Day, (ii) on the next Business Day after timely
delivery to a nationally-recognized overnight courier and (iii) on the Business
Day actually received if deposited in the U.S. mail (certified or registered
mail, return receipt requested, postage prepaid), addressed as follows:

If to the Company:

       WEBB Interactive Services, Inc.
       1899 Wynkoop, Suite 600
       Denver, Colorado 80202
       Telecopy:  (303)295-3584
       Attention:  William Cullen

and if to the Holder, to such address as shall be designated by the Holder in
writing to the Company.

     12. Applicable Law.

       This Warrant is issued under and shall for all purposes be governed by
and construed in accordance with the laws of the state of Colorado, without
giving effect to conflict of law provisions thereof.

     IN WITNESS WHEREOF, the undersigned has executed this Warrant as of the
21/st/ day of December, 2001.
------

                                             WEBB INTERACTIVE SERVICES, INC.

                                             By:  /s/ William R. Cullen
                                                 ----------------------
                                                 Name:  William R. Cullen
                                                 Title: CEO

                                      198
<PAGE>

EXHIBIT A
---------

                                EXERCISE NOTICE

     The undersigned Holder hereby irrevocably exercises the right to purchase
________ of the shares of Common Stock ("Warrant Shares") of WEBB INTERACTIVE
                                         --------------
SERVICES, INC. evidenced by the attached Warrant (the "Warrant"). Capitalized
                                                       -------
terms used herein and not otherwise defined shall have the respective meanings
set forth in the Warrant. Unless otherwise specified in writing to the Company,
the undersigned represents to the Company that the shares of Common Stock
covered by this notice have been or will be sold pursuant to the terms of an
effective registration statement.

     1. Form of Exercise Price. The Holder intends that payment of the
Exercise Price shall be made as:

          ______ a Cash Exercise with respect to _________________ Warrant
Shares; and/or

          ______ a Cashless Exercise with respect to _________________ Warrant
Shares.

     2. Payment of Exercise Price. In the event that the Holder has elected a
Cash Exercise with respect to some or all of the Warrant Shares to be issued
pursuant hereto, the Holder shall pay the sum of $________________ to the
Company in accordance with the terms of the Warrant.

     3. Delivery of Warrant Shares. The Company shall deliver to the Holder
_____________ Warrant Shares in accordance with the terms of the Warrant.

Date: ______________________

____________________________________
      Name of Registered Holder

By:_______________________________
   Name:
   Title:

                                      199
<PAGE>

EXHIBIT B
---------

                                TRANSFER NOTICE

     FOR VALUE RECEIVED, the undersigned Holder of the attached Warrant hereby
sells, assigns and transfers unto the person or persons named below the right to
purchase ______ shares of the Common Stock of WEBB INTERACTIVE SERVICES, INC.
evidenced by the attached Warrant.

Date: ______________________

____________________________________
     Name of Registered Holder

By:    _______________________________
Name:
Title:

Transferee Name and Address:

____________________________________

____________________________________

____________________________________

                                      200<PAGE>

                                                                    EXHIBIT 10.3

                            Asset Purchase Agreement

                                     Between

                    INTERNATIONAL MANUFACTURERS GATEWAY, INC.
                             a Delaware corporation,

                                       and

                                   DTOMI, INC.
                              a Nevada corporation,

                                     DATED:

                                January 14, 2002

<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<S>                                                                                                  <C>

1.       Definitions................................................................................  1

2.       Purchase and Sale of Assets................................................................  4

         2.1      Purchase and Sale.................................................................  4
         2.2      Purchased  Assets.................................................................  4
         2.3      Excluded Assets...................................................................  4
         2.4      Assumption of Certain Liabilities.................................................  4
         2.5      Excluded Liabilities..............................................................  4

3.       Purchase Price and Payment.................................................................  4

         3.1      Purchase Price....................................................................  4
         3.2      Tax and Accounting Consequences...................................................  5
         3.3      Price Reduction Upon Certain Events...............................................  5

4.       Pre-Closing Matters........................................................................  5

         4.1      Operation of Purchased Assets.....................................................  5
         4.2      Consents .........................................................................  6
         4.3      Notification of Certain Events....................................................  6
         4.4      Access to Information.............................................................  7
         4.5      Public Announcements..............................................................  7

5.       Conditions to Closing......................................................................  7

         5.1      Transferor's Conditions...........................................................  7
         5.2      Acquiror's Conditions.............................................................  8

6.       Closing....................................................................................  9

         6.1      Time and Place of Closing.........................................................  9
         6.2      Closing Deliveries................................................................  9
         6.3      Closing Costs..................................................................... 10
         6.4      Possession........................................................................ 10

7.       Representations and Warranties............................................................. 10

         7.1      Transferor's Representations and Warranties ...................................... 10
         7.2      Acquiror's Representations and Warranties......................................... 13
</TABLE>

                                       i

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<TABLE>
<S>                                                                                                               <C>
8.       Additional Covenants....................................................................................  14

         8.1      Covenants by Each Party........................................................................  14
         8.2      Idemnification.................................................................................  14
         8.3      Retention of and Access to Books and Records...................................................  14

9.       Termination.............................................................................................  14

         9.1      Termination Events.............................................................................  14
         9.2      Effect of Termination..........................................................................  15

10.      Default; Remedies.......................................................................................  15

         10.1     Time of Essence................................................................................  15
         10.2     Remedies.......................................................................................  15

11.      Construction and Interpretation.........................................................................  15

12.      Miscellaneous Provisions................................................................................  16

         12.1     Survival of Covenants..........................................................................  16
         12.2     Expenses.......................................................................................  16
         12.3     Binding Effect.................................................................................  16
         12.4     Assignment.....................................................................................  16
         12.5     Notices........................................................................................  16
         12.6     Waiver.........................................................................................  17
         12.7     Amendment......................................................................................  17
         12.8     Severability...................................................................................  17
         12.9     Integration....................................................................................  17
         12.10    Governing Law..................................................................................  18
         12.11    Arbitration....................................................................................  18
         12.12    Execution......................................................................................  18
         12.13    Incorporation of Recitals, Exhibits, and Schedules...................... ......................  18
         12.14    Further Assurances.............................................................................  18
         12.15    No Third Party Beneficiaries ..................................................................  19
</TABLE>

                                       ii

<PAGE>

                            ASSET PURCHASE AGREEMENT

     THIS ASSET PURCHASE AGREEMENT (this "Agreement") is made and entered into
                                          ---------
as of January 14, 2002 (the "Effective Date") by and between International
                             --------------
Manufacturers Gateway, Inc., a Delaware corporation ("IMG")("Transferor") and
                                                      ---    ----------
Dtomi, Inc., a Nevada corporation ("Dtomi")("Acquiror").
                                    -----    --------

                                    RECITALS

     A.   IMG is a technology company utilizing proprietary database algorithms
to compile and sell marketing information to sales and marketing professionals
(the "Business").
      --------

     B.   Transferor wishes to sell to Acquiror certain assets as described in
Section 2.2 associated with Transferor's Business and Acquiror wishes to
purchase such assets from Transferor, in each case on the terms and conditions
set forth in this Agreement (this term and all other capitalized terms used
herein having the respective meanings set forth in this Agreement).

                                   AGREEMENTS

     In consideration of the foregoing, the mutual covenants of the parties set
forth in this Agreement, and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties, intending to be
legally bound, agree as follows:

     1.   Definitions. As used in this Agreement, the following terms have the
          -----------
respective meanings set forth below:

          "Agreement" shall mean this Asset Purchase Agreement.
           ---------

          "Acquiror" shall have the meaning set forth in the preamble to this
           --------
Agreement.

          "Acquiror's Knowledge" shall mean that any of the officers or
           --------------------
directors of Acquiror are actually aware of a particular fact or other matter.

          "Assumed Liabilities" shall have the meaning set forth in Section 2.4.
           -------------------

          "Best Efforts" shall mean the efforts that a prudent Person who wishes
           ------------
to achieve a result would use in similar circumstances to achieve such result as
expeditiously as reasonably possible.

          "Bill of Sale" shall mean the document described in Section 6.2.1(a).
           ------------

          "Books and Records" shall mean all books and records of Transferor
           -----------------
that are necessary to conduct the Business, the ownership, use, and operation of
the Purchased Assets, or the payment or performance of the Assumed Liabilities,
including any such records maintained on computer and all related computer
software.

                                        1

<PAGE>

          "Breach" shall mean any material inaccuracy in or material breach of,
           ------
or any material failure to perform or comply with, any representation, warranty,
covenant, obligation, or other provision of this Agreement or any document
delivered pursuant to this Agreement.

          "Business" shall have the meaning set forth in the Recitals.
           --------

          "Business Day" shall mean any day other than a Saturday, Sunday, or
           ------------
other day on which commercial banks in Seattle, Washington are authorized or
required by applicable Legal Requirements to be closed.

          "Closing" shall mean the closing of this transaction, at which the
           -------
events set forth in Section 6.2 shall occur.

          "Closing Date" shall mean the date on which the Closing occurs.
           ------------

          "Common Stock" shall have the meaning set forth in Section 3.1.
           ------------

          "Consent" shall mean any approval, consent, ratification, waiver, or
           -------
other authorization, including any Governmental Authorization.

          "Contract" shall mean any agreement, contract, lease, obligation,
           --------
promise, or understanding, whether written or oral and whether express or
implied, that is legally binding.

          "Damages" shall have the meaning set forth in Section 8.2.
           -------

          "Effective Date" shall have the meaning set forth in the preamble to
           --------------
this Agreement.

          "Excluded Assets" shall have the meaning set forth in Section 2.3.
           ---------------

          "Governmental Authority" shall mean any national, federal, state,
           ----------------------
provincial, county, municipal, or local government, foreign or domestic, or the
government of any political subdivision of the any of the foregoing, or any
entity, authority, agency, ministry, or other similar body exercising executive,
legislative, judicial, regulatory, or administrative authority or functions of
or pertaining to the government, including any quasi-governmental entity
established to perform any such functions.

          "Governmental Authorization" shall mean any Consent, license, permit,
           --------------------------
     waiver, or other authorization issued, granted, given, or otherwise made
     available by or under the authority of any Governmental Authority or
     pursuant to any Legal Requirement.

          "Intellectual Property" shall mean (a) all inventions (whether
           ---------------------
patentable or unpatentable and whether or not reduced to practice), all
improvements thereto, and all patents, patent applications, and patent
disclosures, together with all reissuances, continuations,
continuations-in-part, revisions, extensions, and reexaminations thereof, (b)
all trademarks, service marks, trade dress, logos, trade names, and corporate
names, together with all translations, adaptation, derivations, and combinations
thereof and including all goodwill associated therewith, and all applications,
registrations, and renewals in connection therewith, (c)

                                        2

<PAGE>

all copyrightable works, all copyrights, and all applications, registrations,
and renewals in connection therewith, (d) all mask works and all applications,
registrations, and renewals in connection therewith, (e) all trade secrets and
confidential business information (including ideas, research and development,
know-how, formulas, compositions, manufacturing and production processes and
techniques, technical data, designs, drawings, specifications, customer and
supplier lists, pricing and cost information, and business and marketing plans
and proposals), (f) all computer software (including data and related
documentation) and (g) all other proprietary rights.

          "Legal Requirement" shall mean any federal, state, local, municipal,
           -----------------
foreign, international, multinational, or other administrative order,
constitution, law, ordinance, principle of common law, regulation, rule,
statute, or treaty.

          "Lien" shall mean a monetary encumbrance against a Purchased Asset.
           ----

          "Ordinary Course of Business" shall mean any action taken by a Person
           ---------------------------
if, and only if, such action is consistent with the past practices of such
Person and is taken in the ordinary course of the normal day-to-day operations
of such Person.

          "Organizational Documents" shall mean (i) the articles or certificate
           ------------------------
of incorporation and the bylaws of a corporation, (ii) the partnership agreement
and any statement of partnership of a general partnership, (iii) the limited
partnership agreement and certificate of limited partnership of a limited
partnership, (iv) any charter, operating agreement, or similar document adopted
or filed in connection with the creation, formation, or organization of a
Person, and (v) any amendment to any of the foregoing.

          "Permitted Encumbrances" shall mean those encumbrances incurred in the
           --------- ------------
ordinary course of business or otherwise in existence as of the Closing Date.

          "Person" shall mean an individual, partnership, corporation, limited
           ------
liability company, joint stock company, trust, unincorporated organization or
association, joint venture, or other organization, whether or not a legal
entity, or a Governmental Authority.

          "Possession Date" shall mean 12:01 a.m., on the day following the
           ---------------
Closing Date.

          "Proceeding" shall mean any action, arbitration, audit, hearing,
           ----------
litigation, or suit (whether civil, criminal, administrative, investigative, or
informal) commenced, brought, conducted, or heard by or before, or otherwise
involving, any Governmental Authority, arbitrator, or mediator.

          "Purchase Price" shall have the meaning set forth in Section 3.1.
           --------------

          "Purchased Assets" shall have the meaning set forth in Section 2.2.
           ----------------

          "Representative" shall mean, with respect to a particular Person, any
           --------------
director, officer, employee, agent, consultant, advisor, or other representative
of or to such Person, including such Person's attorneys, accountants, and
financial advisors.

                                        3

<PAGE>

          "Transferor" shall have the meaning set forth in the preamble to this
           ----------
Agreement.

          "Transferor Shareholders" shall have the meaning set forth in Section
           -----------------------
3.2.

          "Transferor's Knowledge" shall mean that any of the officers or
           ----------------------
directors of Transferor are actually aware of a particular fact or other matter.

          "Tax" shall mean any tax (including any income tax, capital gains tax,
           ---
value-added tax, sales tax, excise tax, property tax, gift tax, or estate tax),
levy, assessment, tariff, duty (including any customs duty), deficiency, or
other fee, and any related charge or amount (including any fine, penalty,
interest, or addition to tax), imposed, assessed, or collected by or under the
authority of any Governmental Authority or payable pursuant to any tax-sharing
agreement or other Contract relating to the sharing or payment of any such tax,
levy, assessment, tariff, duty, deficiency, or fee

     2.   Purchase and Sale of Assets.

          2.1  Purchase and Sale. Transferor agrees to transfer the Purchased
               -----------------
Assets to Acquiror, and Acquiror agrees to acquire the Purchased Assets from
Transferor, in each case for the price and on the terms and conditions set forth
in this Agreement. Upon payment of the Purchase Price as described in Section 3
hereof and the satisfaction of the other terms of this Agreement, Transferor
shall sell, transfer, assign and deliver the Purchased Assets to Acquiror on the
Closing Date free and clear of any and all liens, encumbrances, security
interests or obligations, except for Permitted Encumbrances.

          2.2  Purchased Assets. The assets to be sold by Transferor to Acquiror
               ----------------
pursuant to this Agreement (the "Purchased Assets") shall be all of the
                                 --------- ------
Transferor's assets described on Exhibit A attached hereto, with the exception
                                 ---------
of the Excluded Assets described in Section 2.3.

          2.3  Excluded Assets. All assets of Transferor not specifically
               ---------------
included in the Purchased Assets (the "Excluded Assets") shall not be acquired
                                       ---------------
by Acquiror pursuant to this Agreement.

          2.4  Assumption of Certain Liabilities. Acquiror shall at Closing
               ---------------------------------
assume the liabilities of Transferor described on Exhibit B (the "Assumed
                                                  ---------       -------
Liabilities"), but excluding any other liabilities of Transferor whatsoever.
-----------

          Excluded Liabilities. Acquiror shall not assume any of the liabilities
          --------------------
of Transferor not identified in Section 2.4 above. Without limiting the
generality of the foregoing, Acquiror shall not assume any liabilities
attributable to any of the Excluded Assets.

     3.   Purchase Price and Payment.
          --------------------------

          3.1  Purchase Price. In consideration of (i) the sale, transfer and
               --------------
conveyance to Acquiror of the Purchased Assets, Acquiror shall, at the Closing,
transfer to Transferor Nine Million Six Hundred Seventy-Three Thousand Seven
Hundred Ninety-Four (9,673,794) shares of Dtomi common stock (the "Common
                                                                   ------
Stock") owned by Acquiror (the "Shares"). The number
-----                           ------

                                        4

<PAGE>

of Shares to be transferred to Transferor shall be appropriately adjusted to
reflect the effect of any stock split, reverse split, stock dividend,
reorganization, recapitalization or other like change with respect to
Transferor's common stock occurring after the Effective Date and prior to
Closing, so as to provide Transferor the same economic effect as contemplated by
this Agreement prior to such stock split, reverse split, stock dividend,
reorganization, recapitalization, or like change. The consideration described in
this Section 3.1 is herein referred to as the "Purchase Price."
                                               --------------

          3.2  Tax and Accounting Consequences. As a result of the transfer of
               -------------------------------
the Shares to Transferor, in accordance with the terms and conditions set forth
in this Agreement, there may be certain Tax and accounting consequences to the
shareholders of the Transferor (the "Transferor Shareholders"), who will be the
                                     -----------------------
ultimate recipients of the Shares.

ACQUIROR MAKES NO REPRESENTATIONS OR WARRANTIES OF ANY KIND, NOR ARE ANY
INTENDED OR SHOULD ANY BE INFERRED, REGARDING THE ECONOMIC RETURN OR THE TAX
CONSEQUENCES TO THE TRANSFEROR SHAREHOLDERS WHO WILL ACQUIRE THE SHARES.
ACQUIROR, THEREFORE, RECOMMENDS THAT THE TRANSFEROR SHAREHOLDERS CONSULT THEIR
OWN ATTORNEYS, ACCOUNTANTS AND FINANCIAL ADVISORS ABOUT THE LEGAL AND TAX
CONSEQUENCES AND THE FINANCIAL RISKS AND MERITS OF RECEIVING THE SHARES.

          3.3  Price Reduction Upon Certain Events. In the event of any damage
               -----------------------------------
to or destruction or condemnation of any of the Purchased Assets (excluding
damage or destruction caused by Acquiror or any of its affiliates), any taking
of any of the Purchased Assets by eminent domain or any material adverse change
to the Transferor's business, operations or financial condition between the
Effective Date and the Closing Date, Acquiror shall have the right, by notice
given to Transferor within five (5) days of such event (but in any case prior to
the Closing Date), to terminate this Agreement. If Acquiror does not elect to
terminate this Agreement, the Purchase Price shall be reduced by an amount equal
to the resulting reduction in the value of the Purchased Assets, which shall be
attributed to the Transferor whose respective Purchased Assets were so damaged,
destroyed or condemned. Transferor shall be entitled to retain any insurance
proceeds or condemnation awards paid or payable on account of such damage or
destruction or such taking. Transferor and Acquiror agree to negotiate in good
faith regarding the reduction in value resulting from any damage to or
destruction or condemnation of the Purchased Assets.

          3.4  Escrow. The Shares shall be subject to the terms and conditions
               ------
     of an Escrow Agreement attached hereto as Exhibit D (the "Escrow
                                               ---------       ------
     Agreement").
     ---------

   4.     Pre-Closing Matters.
          -------------------

          4.1  Operation of Purchased Assets. Between the Effective Date and the
               -----------------------------
Closing Date, Transferor, with respect to the Business, shall:

               4.1.1 Conduct the Business and operate and maintain the Purchased
Assets in the Ordinary Course of Business;

                                        5

<PAGE>

               4.1.2 Not sell, lease, or otherwise transfer or dispose of any
Purchased Assets, or any interest therein, other than transfers and dispositions
made in the Ordinary Course of Business or transfers and dispositions otherwise
authorized by its President;

               4.1.3 Not permit or allow any Purchased Assets to become subject
to any additional Lien (other than Permitted Encumbrances);

               4.1.4 Maintain the levels of inventories and supplies in the
Business at customary levels; and

               4.1.5 Use its Best Efforts to maintain the relations and goodwill
with suppliers, customers, and others having business relationships with
Transferor in connection with the Business.

          4.2  Consents.
               --------

               4.2.1 Schedule 4.2.1 to this Agreement sets forth a complete and
                     --------------
accurate list of all Consents to transfer required under (i) all material
Contracts (a) to which Transferor is a party and which relate to Transferor's
Business or the ownership, use, or operation of the Purchased Assets, or (b) by
which any of the Purchased Assets is bound; and (ii) all material Governmental
Authorizations that are held by Transferor and relate to Transferor's Business
or the ownership, use or operation of the Purchased Assets. Acquiror and
Transferor shall use their respective Best Efforts, each at its own expense, to
obtain all such Consents as soon as practicable after the Effective Date. In the
event any such Consent is not obtained by the Closing Date, Transferor agrees to
continue to use its Best Efforts thereafter, in cooperation with Acquiror, to
obtain such Consent as soon as practicable.

               4.2.2 Acquiror shall provide all cooperation reasonably requested
by Transferor in connection with obtaining the Consents described on Schedule
                                                                     --------
4.2.1, including the provision of any information relating to Acquiror that may
-----
be requested by the Person from whom any such Consent is required.

          4.3  Notification of Certain Events.
               ------------------------------

               4.3.1 By Transferor. Between the Effective Date and the Closing
                     -------------
Date, Transferor shall give prompt notice to Acquiror in the event Transferor
becomes aware of (i) any fact or condition that causes or constitutes a Breach
of any representation or warranty of Transferor set forth herein as of the
Effective Date, (ii) any fact or condition that would cause or constitute a
Breach of any such representation or warranty had such representation or
warranty been made as of the time of occurrence or discovery of such fact or
condition, (iii) the occurrence of any Breach of any covenant of Transferor in
this Agreement, or (iv) the occurrence of any event that Transferor believes
will make the satisfaction of any of the conditions set forth in Section 5
impossible or unlikely. In the event that any fact or condition of the type
described in the foregoing clause (i) or (ii) would have required any change in
any of the Schedules or Exhibits to this Agreement if such fact or condition had
occurred or been known as of the Effective Date, Transferor shall promptly
deliver to Acquiror a supplement to such Schedule or Exhibit specifying the
necessary change.

                                        6

<PAGE>

               4.3.2 By Acquiror. Between the Effective Date and the Closing
                     -----------
Date, Acquiror shall give prompt notice to Transferor in the event Acquiror
becomes aware of (i) any fact or condition that causes or constitutes a Breach
of any representation or warranty of Acquiror set forth herein as of the
Effective Date, (ii) any fact or condition that would cause or constitute a
Breach of any such representation or warranty had such representation or
warranty been made as of the time of occurrence or discovery of such fact or
condition, (iii) the occurrence of any Breach of any covenant of Acquiror in
this Agreement, or (iv) the occurrence of any event that Acquiror believes will
make the satisfaction of any of the conditions set forth in Section 5 impossible
or unlikely. In the event that any fact or condition of the type described in
the foregoing clause (i) or (ii) would have required any change in any of the
Schedules or Exhibits to this Agreement if such fact or condition had occurred
or been known as of the Effective Date, Acquiror shall promptly deliver to
Transferor a supplement to such Schedule or Exhibit specifying the necessary
change.

               4.3.3 No Effect on Remedies. The delivery of a notice or
                     ---------------------
supplement pursuant to Sections 4.3.1 and 4.3.2 shall have no effect on the
remedies of any party hereunder.

          4.4  Access to Information. Between the Effective Date and the Closing
               ---------------------
Date, Transferor shall, upon reasonable notice from Acquiror, (i) give Acquiror
and its representatives access (during normal business hours), in a manner so as
not to interfere with Transferor's normal operations and subject to reasonable
restrictions imposed by any such representative, to all key employees and to the
Purchased Assets, including the Books and Records relating thereto, and (ii)
cause its representatives to make available to Acquiror for the purpose of
making copies thereof such financial and operating data and other information
with respect to the Business and the Purchased Assets as Acquiror may reasonably
request.

          4.5  Public Announcements. Except as otherwise required by applicable
               --------------------
Legal Requirements, any public announcement or similar publicity with respect to
this Agreement or this transaction shall be issued, if at all, only with such
contents, at such time and in such manner as the parties may agree. If a party
believes that it is required by applicable Legal Requirements to make any such
public announcement, it shall first provide to the other party the content of
the proposed announcement, the reasons such announcement is required to be made,
and the time and place that the announcement will be made.

     5.   Conditions to Closing.
          ---------------------

          5.1  Transferor's Conditions. Transferor's obligation to close this
               -----------------------
transaction shall be subject to and contingent upon the satisfaction (or waiver
by Transferor in writing in its sole discretion) of each of the following
conditions:

               5.1.1 All representations and warranties of Acquiror set forth in
this Agreement and each such representation and warranty shall have been
accurate in all respects as of the Effective Date and shall be accurate in all
respects as of the Closing Date, as if made on the Closing Date.

               5.2.2 (i) All of the covenants and obligations that Acquiror is
obligated to perform or comply with pursuant to this Agreement prior to or at
the Closing and each such

                                        7

<PAGE>

covenant and obligation (considered individually) shall have been performed and
complied with in all respects; and (ii) Acquiror shall have made the deliveries
of documents required to be made pursuant to Section 6.2.2; provided, however,
                                                            --------  -------
that with respect to the covenants and obligations described in this Section
5.1.2, a failure of the foregoing condition shall not be deemed to have occurred
unless (a) Transferor has given Acquiror notice specifying the nature of any
Breach of such covenants or obligations in reasonable detail, and (b) either (y)
Acquiror has failed to cure such Breach within ten (10) Business Days after such
notice is given, or (z) if such Breach cannot be cured solely by the payment of
money and cannot reasonably be cured within ten (10) Business Days despite the
exercise of Best Efforts, Acquiror has failed to commence curative action within
ten (10) Business Days after such notice is given or thereafter fails to
complete the cure of such Breach as soon as practicable.

          5.2  Acquiror's Conditions. Acquiror's obligation to close this
               ---------------------
transaction shall be subject to and contingent upon the satisfaction (or waiver
by Acquiror in its sole discretion) of each of the following conditions:

               5.2.1 All representations and warranties of Transferor set forth
in this Agreement shall have been accurate as of the Effective Date and shall be
accurate as of the Closing Date, as if made on the Closing Date.

               5.2.2 All of the covenants and obligations that Transferor are
obligated to perform or comply with pursuant to this Agreement prior to or at
the Closing shall have been performed and complied with; and (ii) Transferor
shall have made the deliveries of documents required to be made pursuant to
Section 6.2.1.

               5.2.3 To the extent, if any, that Acquiror is required to obtain
any Governmental Authorizations that relate to the Businesses or the ownership,
use, and operation of the Purchased Assets, Acquiror shall have obtained such
Governmental Authorizations and such Governmental Authorizations shall be in
full force and effect as of the Closing Date or subject to issuance to Acquiror
upon consummation of this transaction.

               5.2.4 As of the Closing Date, there shall not be in effect any
legal requirement or any injunction or other order that prohibits the transfer
of any portion of the Purchased Assets by Transferor to Acquiror.

               5.2.5 Between the Effective Date and the Closing Date, there
shall have been no damage to or destruction of any of the Purchased Assets
(excluding damage or destruction (i) caused by Acquiror or any of its
affiliates; or (ii) that does not have a material adverse effect on the
Businesses), nor any taking of any material portion of the Purchased Assets by
eminent domain.

               5.2.6 Since the Effective Date, there shall not have been
commenced or threatened against Acquiror or Transferor or any related person of
Acquiror or Transferor any proceeding (i) seeking damages or other relief in
connection with, any aspect of this transaction, or (ii) that could reasonably
be expected to have the effect of preventing this transaction or making this
transaction illegal.

                                        8

<PAGE>

               5.2.7 Transferor shall have executed all documents necessary to
transfer and assign any of the Transferor's Intellectual Property which is being
transferred pursuant to this Agreement.

               5.2.8 Transferor shall have executed the Escrow Agreement, on
terms and conditions acceptable to Acquiror.

               5.2.9 Transferor shall have delivered to Acquiror a true and
complete listing of the Purchased Assets, which listing shall be acceptable to
Acquiror.

               5.2.10 Transferor shall have delivered to Acquiror a true and
complete listing of the Assumed Liabilities, including evidence of the
liabilities acceptable to Acquiror.

               5.2.11 Transferor shall have delivered to Acquiror a true and
complete listing of all Consents.

     6.   Closing.
          -------

          6.1  Time and Place of Closing. The Closing shall take place at the
               -------------------------
offices of The Otto Law Group, PLLC, 900 Fourth Avenue, Suite 3140, Seattle,
Washington, or at such other location as the parties may mutually agree. Subject
to the provisions of Section 7, the Closing shall take place commencing at 10:00
a.m. (Pacific Standard Time) on January __, 2002, unless Transferor, in its sole
discretion, determines that shareholder approval of the transactions
contemplated by this Agreement is necessary or desirable, in which case Closing
shall take place on January __, 2002 or, in either case, on such other date as
is mutually acceptable to the parties.

          6.2  Closing Deliveries.
               ------------------

               6.2.1 At the Closing, Transferor shall deliver, or cause to be
delivered, to Acquiror:

               (a) A fully executed Bill of Sale and Assignment and Assumption
          in the form of Exhibit C to this Agreement (the "Bill of Sale")
                         ---------                         ------------
          conveying to Acquiror all personal property to be acquired by Acquiror
          pursuant to this Agreement and providing for (i) the assignment to
          Acquiror of the contract rights, and all other intangible personal
          property included in the Purchased Assets and (ii) Acquiror's
          assumption of the Assumed Liabilities;

               (b) A duly authorized and executed Escrow Agreement required by
          Section 3.4;

               (c) A Certificate of an officer of Transferor certifying to the
          attached resolutions of the board of directors and shareholders, if
          the board of directors deems it necessary, of Transferor authorizing
          this transaction;

               (d) A Certificate of an authorized officer of the Transferor
          certifying as to the accuracy of the Transferor's representations and
          warranties under Section 7.1;

                                        9

<PAGE>

                (e)   All Consents necessary to permit Transferor to transfer
           the Purchased Assets to Acquiror;

                (f)   All necessary documents to transfer and assign any
           Intellectual Property which is being transferred pursuant to this
           Agreement;

                (g)   A true and complete listing of the Purchased Assets; and

                (h)   A true and complete listing of the Assumed Liabilities.

                (i)   A true and complete listing of all Consents required by
           Section 4.2.1.

                6.2.2 At the Closing, Acquiror shall deliver, or cause to be
delivered, to Transferor:

                (a)   A counterpart copy of the Bill of Sale, executed by
           Acquiror;

                (b)   A counterpart copy of the Escrow Agreement, executed by
           Acquiror;

                (c)   A Certificate of an authorized officer of Acquiror
           certifying attached resolutions of the boards of directors and
           shareholders of Acquiror authorizing this transaction;

                (d)   A Certificate of an authorized officer of the Acquiror
           certifying as to the accuracy of the Acquiror's representations and
           warranties under Section 7.2;

                (e)   A Certificate of an authorized officer of the Acquiror
           certifying the number of shares that Transferor shall be entitled to
           in accordance with the terms and conditions of this Agreement; and

                (f)   A counterpart copy of necessary documents to transfer and
           assign any Intellectual Property which is being transferred pursuant
           to this Agreement.

           6.3  Closing Costs. Transferor and Acquiror shall each pay one-half
                -------------
(1/2) of the following costs associated with the Closing: (i) recording fees
with respect to the assignment of any Intellectual Property and (ii) all sales
and excise taxes due in connection with this transaction.

           6.4  Possession. Acquiror shall be entitled to possession of the
                ----------
Purchased Assets on the Possession Date as that term is defined in Section 1.

       7.  Representations and Warranties.
           ------------------------------

           7.1  Transferor's Representations and Warranties. Transferor
                -------------------------------------------
represents and warrants to Acquiror as follows:

                                       10

<PAGE>

               7.1.1 Organization and Good Standing. Transferor is a
                     ------------------------------
corporation, duly formed, validly existing and in good standing under the laws
of the State of Delaware.

               7.1.2 Title to Purchased Assets. Transferor has good and
                     -------------------------
marketable title to the Purchased Assets, free and clear of all mortgages,
pledges, liens, encumbrances, security interests, equities, charges and
restrictions of any nature whatsoever, except such Permitted Encumbrances, as
that term is defined in Section 1. By virtue of the deliveries made at the
Closing, Acquiror will obtain good and marketable title to the Purchased Assets,
free and clear of all liens, mortgages, pledges, encumbrances, security
interests, equities, charges and restrictions of any nature whatsoever, except
any Permitted Encumbrances.

               7.1.3 Authority; No Conflict.
                     ----------------------

               (a) This Agreement constitutes the legal, valid, and binding
           obligation of Transferor, enforceable against Transferor in
           accordance with its terms. Upon its execution and delivery by
           Transferor at the Closing, the Transferor's closing documents will
           constitute the legal, valid, and binding obligations of Transferor,
           enforceable against Transferor in accordance with its respective
           terms. Transferor has full corporate power, authority, and capacity
           to execute and deliver this Agreement and Transferor's closing
           documents and to perform its obligations hereunder and thereunder.
           Without limiting the generality of the foregoing, the Boards of
           Directors, and shareholders, if the Boards of Directors deems it
           necessary, of Transferor has approved this Agreement and the
           transactions contemplated hereby.

               (b) Neither the execution and delivery of this Agreement, nor the
           performance of any of Transferor's obligations hereunder, nor the
           consummation of the transactions contemplated by this Agreement will,
           directly or indirectly (with or without notice, lapse of time, or
           both), (i) contravene, conflict with or result in a violation of any
           provision of Transferor's Organizational Documents or any resolution
           adopted by the Boards of Directors or shareholders of Transferor;
           (ii) contravene, conflict with, or result in a violation of, or give
           any Governmental Authority or other person the right to challenge
           this transaction or to exercise any remedy or obtain any relief
           under, any legal requirement or any order to which Transferor or any
           of the Purchased Assets is subject; (iii) contravene, conflict with,
           or result in a violation of any of the terms or requirements of any
           governmental authorization; (iv) contravene, conflict with, or result
           in a violation or breach of any provision of, or give any person the
           right to declare a default or exercise any remedy under, or to
           accelerate the maturity or performance of, or to cancel, terminate,
           or modify, any Contract; or (v) result in the imposition or creation
           of any lien upon or with respect to any of the Purchased Assets;
           except, in the case of clauses (i), (ii) and (iii) above, for
           contraventions, conflicts or violations which do not have a material
           adverse effect on the ability of Transferor

               (c) to consummate the transactions contemplated hereby.

                                       11

<PAGE>

               (d) Transferor represents and warrants that it is not and will
           not be required to give any notice to, make any filing with, or
           obtain any material Consent from any person in connection with the
           execution and delivery of this Agreement, the performance of its
           obligations hereunder, or the consummation of this transaction, other
           than the Consents described on Schedule 4.2.1. except, for Consents,
                                          --------------
           the failure of which to obtain would not have a material adverse
           effect on the ability of the Transferor to consummate the
           transactions contemplated hereby.

               7.1.4 Books and Records. The Books and Records are complete and
                     -----------------
correct in all material respects and have been maintained in accordance with
sound business practices.

               7.1.5 Possession of Purchased Assets. The Purchased Assets are
                     ------------------------------
assets of the Transferor as of the Effective Date and are in Transferor's
possession as of the Effective Date, and that Transferor has all requisite title
or license to convey the Purchased Assets to Acquiror as contemplated by the
Agreement.

               7.1.6 No Material Adverse Changes. There have been no material
                     ---------------------------
adverse changes to Transferor's business, operations or financial condition
other than as disclosed in filings heretofore made with the Securities and
Exchange Commission.

               7.1.7 Certain Proceedings. No proceeding is pending or, to
                     -------------------
Transferor's Knowledge, has been threatened against Transferor that challenges,
or could reasonably be expected to have the effect of preventing, making
illegal, or otherwise materially interfering with, this transaction.

               7.1.8 Assumed Liabilities.
                     -------------------

               (a) The individuals and/or entities, as the case may be, listed
           in Exhibit B as having certain debts owed to such individual and/or
              ---------
           entity by the Transferor have agreed to convert all or a portion of
           the debt owed to such individual and/or entity by Transferor in the
           amounts set forth in Exhibit B into certain shares of the Acquiror's
                                ---------
           Common Stock in accordance with the following formula:

                             No. Shares    =     Total Debt
                                                 -----------
                                                    0.40

               (b) Acquiror shall not assume certain of the Transferor's
           liabilities in the amount of One Hundred Ninety-Two Thousand Four
           Hundred Sixty-Four Dollars and Twenty Nine Cents ($192,464.29)(the
           "Unassumed Liabilities") as set forth in Exhibit B. The Transferor
            ---------------------                   ---------
           hereby acknowledges and agrees that all the obligations with respect
           to the Unassumed Liabilities shall remain with the Transferor."

                                       12

<PAGE>

          7.2  Acquiror's Representations and Warranties. Acquiror represents
               -----------------------------------------
and warrants to Transferor as follows:

               7.2.1 Organization and Good Standing. Acquiror is a corporation
                     ------------------------------
duly incorporated, validly existing and in good standing under the laws of the
State of Nevada.

               7.2.2 Authority; No Conflict.
                     ----------------------

               (a)   This Agreement constitutes the legal, valid, and binding
           obligation of Acquiror, enforceable against Acquiror in accordance
           with its terms. Upon their execution and delivery by Acquiror at the
           Closing, the Acquiror's closing documents will constitute the legal,
           valid, and binding obligations of Acquiror, enforceable against
           Acquiror in accordance with their respective terms. Acquiror has full
           corporate power, authority, and capacity to execute and deliver this
           Agreement and the Acquiror's closing documents and to perform its
           obligations hereunder and thereunder. Without limiting the generality
           of the foregoing, the Board of Directors of the Acquiror has approved
           this Agreement and the transactions contemplated hereby.

               (b)   Neither the execution and delivery of this Agreement, nor
           the performance of any of Acquiror's obligations hereunder, nor the
           consummation of this transaction will, directly or indirectly (with
           or without notice, lapse of time, or both), (i) contravene, conflict
           with, or result in a violation of any provision of Acquiror's
           Organizational Documents or any resolution adopted by the Board of
           Directors or the shareholders of Acquiror; or (ii) give any Person
           the right to prevent or otherwise interfere with this transaction
           pursuant to any legal requirement or order to which Acquiror is
           subject or any Contract to which Acquiror is a party or by which it
           or any of its assets is bound.

               7.2.3 Certain Proceedings. No proceeding is pending or, to
                     -------------------
Acquiror's Knowledge, has been threatened against Acquiror that challenges, or
could reasonably be expected to have the effect of preventing, making illegal,
or otherwise materially interfering with, this transaction.

               7.2.4 Title to Shares. Acquiror owns the Shares free and clear of
                     ---------------
all liens and encumbrances whatsoever and that, upon the consummation of the
transactions set forth herein, Transferor will own the Shares free and clear of
all liens and encumbrances whatsoever.

     8.   Additional Covenants.
          --------------------

          8.1  Covenants by Each Party.
               -----------------------

               8.1.1 Cooperation. Each of the parties hereto shall cooperate
                     -----------
with the other parties in every reasonable way in carrying out the transactions
contemplated herein, and in delivering all documents and instruments deemed
reasonably necessary or useful by counsel for each party hereto.

                                       13

<PAGE>
               8.1.2 Expenses. Except as otherwise provided in this Agreement,
                     --------
all costs and expenses incurred in connection with this Agreement and the
transactions contemplated hereby shall be paid by the party incurring such costs
or expenses.

               8.1.3 Further Assurances. From time to time after the Closing,
                     ------------------
Transferor will, at its own expense, execute and deliver, or cause to be
executed and delivered, such documents to Acquiror as Acquiror may reasonably
request in order more effectively to vest in Acquiror good title to the
Purchased Assets and otherwise to consummate the transactions contemplated by
this Agreement, and from time to time after the Closing, Acquiror will, at its
own expense, execute and deliver such documents to Transferor as Transferor may
reasonably request in order more effectively to consummate the assumption of the
Assumed Liabilities by Acquiror and otherwise to consummate the transactions
contemplated by this Agreement.

           8.2 Indemnification.
               ---------------

               8.2.1 By Acquiror. In the event the Acquiror (i) breaches or is
                     -----------
deemed to have breached any of the representations and warranties contained in
this Agreement or (ii) fails to perform or comply with any of the covenants and
agreements set forth in this Agreement, then the Acquiror shall hold harmless,
indemnify and defend Transferor, and each of its directors, officers,
shareholders, attorneys, representatives and agents, from and against any
Damages incurred or paid by Transferor to the extent such Damages arise or
result from a breach by the Acquiror of any such representations and warranties
or a violation of any covenant in this Agreement.

               8.2.2 By Transferor. In the event Transferor (i) breaches or is
                     -------------
deemed to have breached any of the representations and warranties contained in
this Agreement or (ii) fails to perform or comply with any of the covenants and
agreements set forth in this Agreement, Transferor shall hold harmless,
indemnify and defend Acquiror, and each of its directors, officers,
shareholders, attorneys, representatives and agents, from and against any
Damages incurred or paid by the acquirer to the extent such Damages arise or
result from a breach by Transferor of any such representations or warranties or
a violation of any covenant in this Agreement. For purposes of this Section 8.2,
"Damages" shall mean any and all costs, losses, damages, liabilities, demands,
 -------
claims, suits, actions, judgments, causes of action, assessments or expenses,
including interest, penalties, fines and attorneys' fees and expenses incident
thereto, incurred in connection with any claim for indemnification arising out
of this Agreement, and any and all amounts paid in settlement of any such claim.

          8.3 Retention of and Access to Books and Records. Transferor agree to
              --------------------------------------------
retain the Books and Records for a period of five (5) years after the Closing
Date and to make them available to Acquiror for the purpose of making copies
thereof at Acquiror's expense of.

     9.   Termination.
          -----------

          9.1 Termination Events. Except as otherwise provided for, this
              ------------------
Agreement may, by notice given prior to or at the Closing (which notice shall
specify the grounds for termination), be terminated by mutual written agreement
of both Transferor and Acquiror.

                                       14

<PAGE>

          9.2  Effect of Termination. Each party's right of termination under
               ---------------------
Section 9.1 is in addition to any other rights it may have under this Agreement
or otherwise, and the exercise of a right of termination shall not constitute an
election of remedies. If this Agreement is terminated pursuant to Section 9.1,
all further obligations of the parties under this Agreement shall thereupon
terminate, except that Sections 10 and 12 shall survive; provided, however, that
                                                         --------  -------
if this Agreement is terminated by a party because of a material Breach of this
Agreement by any of the parties or because one or more of the conditions to the
terminating party's obligations under this Agreement is not satisfied as a
result of any party's failure to comply with its obligations under this
Agreement, the terminating party's right to pursue all legal remedies shall
survive such termination unimpaired.

     10.  Default; Remedies.
          -----------------

          10.1 Time of Essence. Time is of the essence of the parties'
               ---------------
obligations under this Agreement.

          10.2 Remedies. If any party fails to perform its obligations under
               --------
this Agreement, the other party shall be entitled to pursue all remedies
available at law or in equity, including, in the case of a failure to consummate
this transaction following satisfaction (or waiver) of the conditions set forth
in Section 6.2, as applicable, the remedy of specific performance; provided,
                                                                   --------
however, that except with respect to a failure to close this transaction as
-------
provided herein, a party shall not be in default hereunder unless (i) the
non-Breaching party has given the Breaching party notice specifying the nature
of the Breach in reasonable detail, and (ii) the Breaching party either (a) has
failed to cure such Breach within ten (10) Business Days after such notice is
given, or (b) if such Breach cannot be cured solely by the payment of money and
cannot reasonably be cured within ten (10) Business Days despite the exercise of
Best Efforts, has failed to commence curative action within ten (10) Business
Days after such notice is given or thereafter fails to complete the cure of such
Breach as soon as practicable.

     11.  Construction and Interpretation.
          -------------------------------

          11.1 The headings or titles of the sections of this Agreement are
intended for ease of reference only and shall have no effect whatsoever on the
construction or interpretation of any provision of this Agreement. References
herein to sections are to sections of this Agreement unless otherwise specified.

          11.2 Meanings of defined terms used in this Agreement are equally
applicable to singular and plural forms of the defined terms. The masculine
gender shall also include the feminine and neutral genders and vice versa.

          11.3 As used herein, (i) the term "party" refers to a party to this
Agreement, unless otherwise specified, (ii) the terms "hereof," "herein,"
"hereunder," and similar terms refer to this Agreement as a whole and not to any
particular provision of this Agreement, (iii) the term "this transaction" refers
to the transaction contemplated by this Agreement, (iv) the term "including" is
not limiting and means "including without limitation," (v) the term "documents"
includes all instruments, documents, agreements, certificates, indentures,
notices, and other

                                       15

<PAGE>

writings, however evidenced, and (vi) the term "property" includes any kind of
property or asset, real, personal, or mixed, tangible or intangible.

          11.4 In the event any period of time specified in this Agreement ends
on a day other than a Business Day, such period shall be extended to the next
following Business Day. In the computation of periods of time from a specified
date to a later specified date, the word "from" means "from and including," the
words "to" and "until" each mean "to but excluding," and the word "through"
means "to and including."

          11.5 This Agreement is the product of arm's length negotiations among,
and has been reviewed by counsel to the parties and is the product of all the
parties. Accordingly, this Agreement shall not be construed for or against any
party by reason of the authorship or alleged authorship of any provision hereof.

     12.  Miscellaneous Provisions.
          ------------------------

          12.1 Survival of Covenants. Each covenant or agreement of the parties
               ---------------------
set forth in this Agreement which by its terms expressly provides for
performance after the Closing Date shall survive the Closing and be fully
enforceable thereafter.

          12.2 Expenses. Except as otherwise provided, each party shall bear its
               --------
own expenses incurred in connection with the preparation, execution, and
performance of this Agreement and this transaction, including all fees and
expenses of its own Representatives or any other similar payment in connection
with this transaction.

          12.3 Binding Effect. The provisions of this Agreement shall be binding
               --------------
upon and inure to the benefit of the parties and, subject to the restrictions on
assignment set forth herein, their respective successors and assigns.

          12.4 Assignment. Neither party shall assign any of its rights or
               ----------
obligations under this Agreement without the prior written consent of the other
party. No assignment of this Agreement shall release the assigning party from
its obligations under this Agreement.

          12.5 Notices. All notices under this Agreement shall be in writing.
               -------
Notices may be (i) delivered personally, (ii) transmitted by facsimile, (iii)
delivered by a recognized national overnight delivery service, or (iv) mailed by
certified United States mail, postage prepaid and return receipt requested.
Notices to any party shall be directed to its address set forth below, or to
such other or additional address as any party may specify by notice to the other
party. Any notice delivered in accordance with this Section 13.5 shall be deemed
given when actually received or, if earlier, (a) in the case of any notice
transmitted by facsimile, on the date on which the transmitting party receives
confirmation of receipt by facsimile transmission, telephone, or otherwise, if
sent during the recipient's normal business hours or, if not, on the next
Business Day, (b) in the case of any notice delivered by a recognized national
overnight delivery service, on the next Business Day after delivery to the
service or, if different, on the day designated for delivery, or (c) in the case
of any notice mailed by certified U.S. mail, two (2) Business Days after deposit
therein.

                                       16

<PAGE>

               If to IMG               International Manufacturers Gateway, Inc.
                                       285B Lakeview Boulevard
                                       Cocoa, FL 32926
                                       Telephone No.: (321) 639-0914
                                       Facsimile No.: (321) 632-1401
                                       Attn: President

               With a copy to:         The Otto Law Group, PLLC
                                       900 Fourth Avenue, Suite 3140
                                       Seattle, WA 98164
                                       Telephone No.: (206) 262-9545
                                       Fax No.:  (206) 262-9513
                                       Attn: David M. Otto

               If to Dtomi:            Dtomi, Inc.
                                       200 9th Avenue North, Suite 210
                                       Safety Harbor, FL 34695
                                       Telephone No.: (727) 797-6664
                                       Facsimile No.: (727) 797-7770
                                       Attn: President

               With a copy to:         The Otto Law Group, PLLC
                                       900 Fourth Avenue, Suite 3140
                                       Seattle, WA 98164
                                       Telephone No.: (206) 262-9545
                                       Fax No.: (206) 262-9513
                                       Attn: David M. Otto

        12.6   Waiver. Any party's failure to exercise any right or remedy under
               ------
this Agreement, delay in exercising any such right or remedy, or partial
exercise of any such right or remedy shall not constitute a waiver of that or
any other right or remedy hereunder. A waiver of any Breach of any provision of
this Agreement shall not constitute a waiver of any succeeding Breach of such
provision or a waiver of such provision itself. No waiver of any provision of
this Agreement shall be binding on a party unless it is set forth in writing and
signed by such party.

        12.7   Amendment.  This Agreement may not be modified or amended except
               ---------
by the written agreement of the parties.

        12.8   Severability. If any provision of this Agreement is held invalid,
               ------------
illegal, or unenforceable, then (i) such provision shall be enforceable to the
fullest extent permitted by applicable law, and (ii) the validity and
enforceability of the other provisions of this Agreement shall not be affected
and all such provisions shall remain in full force and effect.

        12.9   Integration.  This Agreement,  including the Exhibits and
               -----------
Schedules hereto, contains the entire agreement and understanding of the parties
with respect to the subject matter hereof and supersedes all prior and
contemporaneous agreements with respect thereto. The

                                       17

<PAGE>

parties acknowledge and agree that there are no agreements or representations
relating to the subject matter of this Agreement, either written or oral,
express or implied, that are not set forth in this Agreement, in the Exhibits
and Schedules to this Agreement.

        12.10  Governing  Law. This Agreement  shall be governed by and
               --------------
construed in accordance with the laws of the State of Washington (without regard
to the principles thereof relating to conflicts of laws).

        12.11  Arbitration. All disputes or claims arising out of or relating to
               -----------
this Agreement, or the breach hereof, including disputes as to the validity
and/or enforceability of this Agreement or any portion thereof, and any claims
for indemnification under the provisions of this Agreement, shall be resolved by
arbitration conducted in Seattle, Washington. Any arbitration pursuant to this
Section 12.11 shall be conducted, upon the request of any party, before a single
arbitrator selected by the parties or, failing agreement on the choice of an
arbitrator within thirty (30) days of service of written demand for arbitration,
by an arbitrator designated by the Presiding Judge of the Superior Court for
King County, Washington. The arbitrator shall be a practicing attorney licensed
to practice in one or more of the fifty (50) states, with substantial experience
in commercial and/or commercial litigation matters, who has been in active
practice for at least ten (10) years. Such arbitration shall be conducted in
accordance with the laws of the State of Washington and pursuant to the
commercial arbitration rules of the American Arbitration Association (although
not under the auspices of the American Arbitration Association) and such of the
federal rules of civil procedure as the arbitrator may determine. The
arbitration shall be conducted within forty-five (45) days of the selection of
the arbitrator and the arbitrator shall render his or her decision within twenty
(20) days after conclusion of the arbitration. The prevailing party in the
arbitration shall be entitled as a part of the arbitration award to the costs
and expenses (including reasonable attorneys' fees and the fees of the
arbitrator) of investigating, preparing, and pursuing or defending the
arbitration claim as such costs and expenses are awarded by the arbitrator. The
duty to arbitrate shall survive a termination or cancellation of this Agreement
and shall be specifically enforceable under applicable federal law and the
prevailing arbitration law of the State of Washington. The decision of the
arbitrator shall be final and binding upon the parties and enforceable in any
court of competent jurisdiction.

        12.12  Execution. This Agreement may be executed in any number of
               ---------
counterparts, all of which together shall constitute one and the same agreement.
Each party may rely upon the signature of each other party on this Agreement
that is transmitted by facsimile as constituting a duly authorized, irrevocable,
actual, current delivery of this Agreement with the original ink signature of
the transmitting party.

        12.13  Incorporation of Recitals, Exhibits, and Schedules.  The Recitals
               --------------------------------------------------
to this Agreement and all Exhibits and Schedules to this Agreement are
incorporated herein by this reference.

        12.14  Further Assurances. Each party agrees to execute and deliver such
               ------------------
additional documents and instruments as may reasonably be required to effect
this transaction fully, so long as the terms thereof are consistent with the
terms of this Agreement.

                                       18

<PAGE>

        12.15  No Third Party Beneficiaries. This Agreement is made and entered
               ----------------------------
into for the sole protection and legal benefit of Transferor and Acquiror, and,
subject to the restrictions on assignment set forth herein, their respective
successors and assigns, and no other Person shall be a direct or indirect legal
beneficiary of, or have any direct or indirect cause of action or claim in
connection with, this Agreement.

                            [SIGNATURE PAGE FOLLOWS]

                                       19

<PAGE>

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective
Date.

                  IMG:       INTERNATIONAL MANUFACTURERS
                             GATEWAY, INC.,
                             a Delaware corporation

                             By: /s/ R. Kevin Krause

                             Name: R. Kevin Krause

                             Its:     President

                  DTOMI:     DTOMI, INC,
                             a Nevada corporation

                             By: /s/ Richard Libutti

                             Name: Richard Libutti

                             Its:     President

                                       20

<PAGE>

                                    EXHIBIT A
                                    ---------
                                PURCHASED ASSETS
                                ----------------

The following are the assets owned by IMG, which under the terms and conditions
of this Agreement are being acquired by Dtomi.

     [to be finalized post closing  pursuant to Amendment No. 1 to the Asset
     Purchase  Agreement,  dated January 21, 2002, by and between Dtomi and IMG]

                                        1

<PAGE>

                                    EXHIBIT B
                                    ---------
                               ASSUMED LIABILITIES
                               -------------------

         The following liabilities of IMG, pursuant to the terms and conditions
of this Agreement, are being assumed by Dtomi:

         [to be finalized post closing  pursuant to Amendment No. 1 to the Asset
         Purchase  Agreement,  dated January 21, 2002, by and between Dtomi and
         IMG]

                                       1

<PAGE>

                                    EXHIBIT C
                                    ---------

                                  BILL OF SALE

                                       AND

                            ASSIGNMENT AND ASSUMPTION

     This Bill of Sale and Assignment and Assumption Agreement (this "Bill of
                                                                      -------
Sale"), dated January 14, 2002 (the "Effective Date") by and between
----                                 --------------
International Manufacturers Gateway, Inc., a Delaware corporation
("IMG")("Transferor"), and Dtomi, Inc., a Nevada corporation ("Dtomi" or
  ---    ----------                                            -----
"Acquiror").
 --------

                                    Recitals:
                                    --------

     A. IMG and Dtomi entered into that certain Asset Purchase Agreement, dated
January 14, 2002 (the "Agreement"), which provides, on the terms and conditions
                       ---------
set forth therein, for the transfer by Transferor and purchase by Acquiror of
certain assets of Transferor as set forth in the Agreement. Capitalized terms
used herein without definition shall have the meanings ascribed to them in the
Agreement.

     B. The assets being sold by Transferor and purchased by Acquiror include,
but are not limited to, certain of Transferor's tangible and intangible property
(the "Purchased Assets") as set forth in the Agreement.
      ----------------

     C. Acquiror desires to obtain all right, title and interest in and to any
and all of the Purchased Assets.

     D. This Bill of Sale is being executed and delivered in order to effect the
transfer of the Purchased Assets to Acquiror, as provided in the Agreement.

     NOW THEREFORE, for valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Transferor agree as follows:

     1. Assignment. Transferor hereby sells, grants, conveys, bargains,
        ----------
transfers, assigns and delivers to Acquiror, and to Acquiror's successors and
assigns, all of Transferor's rights, titles and interests, legal and equitable,
throughout the world, in and to the Purchased Assets, to have and to hold the
same forever. This is a transfer and conveyance by Transferor to Acquiror of
good and marketable title to the Purchased Assets, free and clear of all
encumbrances except as provided in the Agreement or on the Schedules thereto.
Subject to the conditions and limitations contained in the Agreement, Transferor
hereby covenants and agrees to warrant and defend title to the Purchased Assets
against any and all claims whatsoever to the extent represented and warranted to
in the Agreement.

     2. Assumption. Acquiror, in consideration of the assignment, hereby assumes
        ----------
and undertakes to discharge, as appropriate in accordance with their terms, all
of the Assumed

                                       1

<PAGE>

Liabilities except as otherwise set forth in the Agreement. Except as provided
for in this Paragraph 2, Acquiror is not hereby assuming, and the Acquiror shall
not assume or otherwise be obligated to pay, perform, satisfy or discharge, any
liabilities or obligations of Transferor or the Business.

     3. Further Assurances. Transferor agrees that it will, at Acquiror's
        ------------------
request at any time and from time to time after the date hereof and without
further consideration, do, execute, acknowledge and deliver or will cause to be
done, executed, acknowledged and delivered all such further acts, deeds,
assignments, transfers, conveyances, powers of attorney and other instruments
and assurances as may be considered by Acquiror, its successors and assigns, to
be necessary or proper to better effect the sale, conveyance, transfer,
assignment, assurance, confirmation and delivery of ownership of the Purchased
Assets to Acquiror, or to aid and assist in collecting and reducing to the
possession of Acquiror, any and all Purchased Assets.

     4. Amendment or Termination; Successors and Assigns. This Bill of Sale may
        ------------------------------------------------
not be amended or terminated except by a written instrument duly signed by each
of the parties hereto. This Bill of Sale shall inure to the benefit of, and be
binding upon, each of the parties hereto and their respective successors and
assigns.

     5. No Third Parties. Nothing in this Bill of Sale, expressed or implied, is
        ----------------
intended or shall be construed to confer upon or give to any person, firm or
corporation other than Acquiror and Transferor, their successors and assigns,
any remedy or claim under or by reason of this instrument or any term, covenant
or condition hereof, and all of the terms, covenants, conditions, promises and
agreements contained in this instrument shall be for the sole and exclusive
benefit of the Acquiror and Transferor, their successors and assigns.

     6. Construction. This Bill of Sale, being further documentation of a
        ------------
portion of the conveyances, transfers and assignments provided for in and by the
Agreement, neither supersedes, amends, or modifies any of the terms or
provisions of the Agreement nor does it expand upon or limit the rights,
obligations or warranties of the parties under the Agreement. In the event of a
conflict or ambiguity between the provisions of this Bill of Sale and the
Agreement, the provisions of the Agreement will be controlling.

     7. Governing Law. The rights and obligations of the parties under this Bill
        -------------
of Sale will be construed under and governed by the internal laws of the State
of Washington (regardless of its or any other jurisdiction's conflict-of-law
provisions).

     8. Counterparts. This Bill of Sale may be executed by facsimile in one or
        ------------
more counterparts and by facsimile, each of which shall be deemed an original
and all of which taken together shall constitute one and the same instrument.

                                       2

<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Bill of Sale as of
the Effective Date.

                  TRANSFEROR:            INTERNATIONAL MANUFACTURERS
                                         GATEWAY, INC.,
                                         a Delaware corporation

                                         By: /s/ R. Kevin Krause

                                         Name: R. Kevin Krause

                                         Its:     President

                  ACQUIROR:              DTOMI, INC,
                                         a Nevada corporation

                                         By: /s/ Richard Libutti

                                         Name: Richard Libutti

                                         Its:     President

                                       3

<PAGE>

                                    EXHIBIT D

                                ESCROW AGREEMENT

         This Escrow Agreement (this "Agreement") is entered into as of January
                                      ---------
14, 2002 (the "Effective Date") by and among Dtomi, Inc., a Nevada corporation
               --------------
("Dtomi"), International Manufacturers Gateway, Inc., a Delaware corporation
("IMG") and The Otto Law Group, PLLC, a Washington professional limited
  ---
liability company (the "Escrow Agent").
                        ------------

                                    RECITALS

         Dtomi and IMG are parties to that certain Asset Purchase Agreement
dated January 14, 2002 (the "Asset Purchase Agreement") pursuant to which IMG
                             ------------------------
will acquire Nine Million Six Hundred Seventy-Three Thousand Seven Hundred
Ninety-Four (9,673,794) shares of Dtomi common stock (the "Escrow Shares") in
                                                           -------------
exchange for transferring to Dtomi certain assets and certain liabilities of
IMG, which Escrow Shares shall be held subject to the terms and conditions of
this Agreement;

                                    AGREEMENT

         In consideration of the foregoing premises and the mutual and dependent
promises set forth in this Agreement, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties agree as follows:

1.       Delivery of Documents

Concurrent with the execution of this Agreement, and all documents in connection
with the closing of the Asset Purchase Agreement, the Escrow Shares shall be
delivered to the Escrow Agent. The Escrow Agent hereby agrees to hold all such
shares and other documents delivered by the parties to the Escrow Agent and to
only deal with the same in accordance with the terms of this Agreement.

2.       Capital Changes - IMG

IMG shall have all the rights of a stockholder with respect to the Escrow Shares
while such shares are held by the Escrow Agent in accordance with the terms of
this Agreement. In the event of any capital adjustment by Dtomi during the term
of this Agreement, any and all new, substituted or additional securities to
which IMG is entitled shall be immediately subject to the terms of this
Agreement and shall be included in the definition of Escrow Shares. IMG hereby
irrevocably instructs the Escrow Agent to instruct the transfer agent for Dtomi
to forward such substituted securities to the attention of the Escrow Agent.

                                       1

<PAGE>

3.       Instructions to Escrow Agent

The parties hereto jointly instruct the Escrow Agent as follows:

     (a) in the event that on or before February 15, 2002, the Asset Purchase
Agreement has closed (the "Asset Purchase Closing"), the Escrow Agent shall,
                           ----------------------
within thirty (30) days of the Asset Purchase Closing, instruct Dtomi's transfer
agent to deliver the appropriate Escrow Shares to IMG, who shall, in turn,
deliver such Escrow Shares in accordance with the attached Share Allocation
                                                           ----------------
Schedule.
--------

         or:

         (b) in the event that by February 15, 2001, the Asset Purchase Closing
has not occurred, the Escrow Agent shall immediately return the Escrow Shares to
Dtomi by overnight courier;

4.       Further Instructions

The instructions to the Escrow Agent may only be amended by further instructions
in writing executed and delivered to the Escrow Agent by all parties to this
Agreement. The Escrow Agent shall have no liability for any act or omission
hereunder while acting in good faith in the exercise of its own judgment.

5.       Ownership of Escrow Shares

Until such time as the Escrow Shares are transferred, pursuant to either Section
3(a) or 3(b), the Escrow Shares shall be owned by IMG and all voting authority
and power, with respect to the Escrow Shares, shall be, and remain, vested in
IMG.

6.       Notices

Any notice required or permitted to be given under this Agreement will be in
writing and may be given by delivering, sending by electronic facsimile
transmission or other means of electronic communication capable of producing a
printed copy, or sending by prepaid registered mail, the notice to the following
address or number:

              If to IMG:             International Manufacturers Gateway, Inc.
                                     285B Lakeview Boulevard
                                     Cocoa, FL 32926
                                     Telephone No.: (321) 639-0914
                                     Facsimile No.: (321) 453-6974

                                       2

<PAGE>
                    If to Dtomi:              Dtomi, Inc.
                                              200 9/th/ Avenue North, Suite 210
                                              Safety Harbor, FL 34695
                                              Telephone No.: (727) 797-6664
                                              Facsimile No.: (727) 797-7770
                                              Attn:  President

                    With a copy to:           The Otto Law Group, PLLC
                                              900 Fourth Avenue, Suite 3140
                                              Seattle, WA 98164
                                              Telephone No.:  (206) 262-9545
                                              Fax No.:  (206) 262-9513
                                              Attn:  David M. Otto

                    If to Escrow Agent:       The Otto Law Group, PLLC
                                              900 Fourth Avenue, Suite 3140
                                              Seattle, WA 98164
                                              Telephone No.:  (206) 262-9545
                                              Fax No.:  (206) 262-9513
                                              Attn:  David M. Otto

Any notice delivered or sent by electronic facsimile transmission or other means
of electronic communication capable of producing a printed copy on a business
day will be deemed conclusively to have been effectively given on the day the
notice was delivered, or the transmission was sent successfully to the number
set out above, as the case may be. Any notice sent by prepaid registered mail
will be deemed conclusively to have been effectively given on the third business
day after posting; but if at the time of posting or between the time of posting
and the third business day thereafter there is a strike, lockout, or other
labour disturbance affecting postal service, then the notice will not be
effectively given until actually delivered.

7.       Entire Agreement; Headings

This Agreement, together with the Asset Purchase Agreement, contains the entire
understanding and agreement of the parties with respect to the transactions
contemplated by this Agreement and supersedes, and may not be supplemented or
varied by, any prior oral or written understandings or agreements. The headings
in this Agreement are inserted for convenience of reference only and shall not
be a part of or control or affect the meaning of this Agreement.

8.       Assigns and Assignment

This Agreement shall extend to, inure to the benefit of and be binding upon all
of the parties and their respective permitted successors and assigns.

                                       3

<PAGE>

9.        Amendment and Waiver

This Agreement may be amended, modified, supplemented or altered only by a
writing duly executed by all parties hereto. No failure or delay by a party in
exercising any right, power or privilege under this Agreement shall operate as a
waiver, and no single or partial exercise shall preclude any right of further
exercise or the exercise of any other right, power or privilege. No waiver of
any right, power or privilege under this Agreement shall be effective unless set
forth in writing, executed by the party against whom the waiver is sought to be
enforced.

10.       Severability

If any term or other provision of this Agreement is invalid, illegal or
incapable of being enforced by any rule of law, or public policy, all other
conditions and provisions of this Agreement shall nevertheless remain in full
force and effect so long as the economic or legal substance of the transactions
contemplated by this Agreement is not affected in any manner adverse to any
party. Upon such determination that any term or other provision is invalid,
illegal or incapable of being enforced, the parties shall negotiate in good
faith to modify this Agreement so as to effect the original intent of the
parties as closely as possible in a mutually acceptable manner in order that the
transactions contemplated by this Agreement be consummated as originally
contemplated to the fullest extent possible.

11.       Governing Law

This Agreement shall be governed by and construed and enforced in accordance
with the laws of the State of Washington, as applied to contracts executed and
to be fully performed in Washington.

12.       Counterparts

This Agreement may be executed by the parties individually or in any
combination, in one (1) or more counterparts and by facsimile, each of which
shall be an original and all of which shall together constitute one (1) and the
same agreement.

                            [SIGNATURE PAGE FOLLOWS]

                                       4

<PAGE>

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective
Date.

                                            DTOMI, INC.

                                            /s/ Richard Libutti
                                            By: Richard Libutti
                                            Its: President

                                            INTERNATIONAL MANUFACTURERS
                                            GATEWAY, INC.

                                            /s/ R. Kevin Krause
                                            By: R. Kevin Krause
                                            Its: President

                                            THE OTTO LAW GROUP, PLLC

                                            /s/ David M. Otto
                                            By:  David M. Otto
                                            Its: President

                                        5

<PAGE>

                            SHARE ALLOCATION SCHEDULE
                            -------------------------

     The Escrow Shares shall be distributed in accordance with the following
schedule:

     [to be finalized post closing pursuant to Amendment No. 1 to the Asset
     Purchase Agreement, dated January 21, 2002, by and between Dtomi and IMG]

                                       6

<PAGE>

                                 SCHEDULE 4.2.1
                                 --------------
                                    CONSENTS
                                    --------

     [to be finalized post closing pursuant to Amendment No. 1 to the Asset
     Purchase Agreement, dated January 21, 2002, by and between Dtomi and IMG]

                                       1

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