(INTERNET DIAMONDS LETTERHEAD)


September 7, 1999





Dear Bob,

On behalf of Internet Diamonds, Inc. (the "Company"), I am pleased to offer you
the position of Chief Operating Officer, reporting to Mark Vadon. The terms of
your relationship with the Company will be as indicated herein.

1.       Position. You will become Chief Operating Officer for the Company. As
         such, you will have responsibilities as determined by Mark Vadon. These
         responsibilities will include all information technology, call center,
         and fulfillment operations. In addition, you will be invited to attend
         meetings of the Board of Directors.

2.       Signing Bonus. You will be paid a signing bonus of $75,000, less
         payroll deductions and all required deductions.

3.       Base Salary. You will be paid a base salary of $16,667 per month, less
         payroll deductions and all required withholdings, which represents an
         annualized rate of $200,000. Your salary will be payable in accordance
         with the Company's standard payroll policies. In addition to your base
         salary, you will be eligible for an annual performance bonus. Your
         annual performance bonus will be guaranteed to be at least 25% of your
         base pay for your first three years of employment.

4.       Stock Options. We will recommend to the Board of Directors that you be
         granted an incentive stock option to purchase 560,000 shares of common
         stock of the Company (2.5% of outstanding shares). The exercise price
         will be the fair market value of the common stock as determined by the
         Board of Directors on the date of grant (approximately $0.50). One
         fourth (1/4) of the shares subject to such option will vest on the
         one-year anniversary of your hire date and one forty-eighth (1/48) of
         the shares subject to such option will vest each month thereafter as
         long as your employment continues with the Company. The Company's 1999
         Equity Incentive Plan, the Grant Notice and the Stock Option Agreement
         shall govern the terms of this option grant in all respects.

5.       Severance. If you are discharged by the Company without cause, you will
         vest in an additional number of option shares equal to the number in
         which you would have vested if your service had continued for an
         additional 6 months. In addition, you will continue to receive your
         base salary for 6 months.

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6.       Benefits. You will be eligible to receive healthcare and dental
         benefits, life and disability insurance and enrollment in the Company
         401k plan effective on the first of the month following your date of
         employment. You will also be given a paid parking space in the
         building.

7.       Relocation. The Company will pay for relocation expenses, including
         moving costs, airfare, temporary housing for up to 4 months, closing
         costs (not including commissions) for both the sale of your current
         home and the purchase of your new home, and one-half the commission for
         the sale of your current home.

8.       Standard Employee Agreement. Like all employees, you will be required
         to sign the Company's standard Employee Proprietary Information and
         Inventions Agreement relating to the protection of the Company's
         proprietary and confidential information and assignment of inventions.
         In addition, you will be required to abide by the company's strict
         policy that prohibits any new employee from using or bringing with him
         or her from any previous employer any confidential information, trade
         secrets, or proprietary materials or processes of such former employer.

9.       Federal Immigration Law. For purposes of federal immigration law, you
         will be required to provide to the Company documentary evidence of your
         identity and eligibility for employment in the United States. Such
         documentation must be provided to us within three (3) business days of
         your date of hire, or our employment relationship with you may be
         terminated. Documents that can satisfy these requirements are a United
         States passport or a valid driver's license and a social security card.

10.      At-Will Employment. Your employment is at will, as defined under
         applicable law. This means you may voluntarily quit for any reason
         whatsoever simply by notifying the Company. Likewise, the Company may
         terminate your employment at any time and for any reason whatsoever
         with or without cause or advance notice. This at-will employment
         relationship cannot be changed except in a writing signed by a Company
         officer.

11.      Entire Agreement. This Agreement, together with your Employee
         Proprietary Information and Inventions Agreement, constitutes the
         entire agreement between the parties and supersedes all other
         agreements or understandings. This agreement may be amended only by
         written agreement signed by you and the Company.

12.      Start Date. To be determined.

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Again, let me indicate how pleased we all are to extend this offer, and how much
we look forward to working together. Please indicate your acceptance by signing
and returning the enclosed copy of this letter. This offer is valid until
September 10, 1999 and will terminate if not accepted by such date.

Very truly yours,

INTERNET DIAMONDS, INC.

        /s/ Mark Vadon
-----------------------------------------------------



The foregoing terms and conditions are hereby accepted:

Signed:           /s/ Robert L. Paquin
        ---------------------------------------------
                     Robert L. Paquin

Dated:       September 8, 1999
       ----------------------------------------------


                                       3.

Source: OneCLE Business Contracts.