Document:

Exhibit 10.13
                          SECURITIES PURCHASE AGREEMENT

         THIS  SECURITIES  PURCHASE  AGREEMENT (this  "Agreement"),  dated as of
March 19,  2001,  by and among  NEXLAND,  INC.,  a  Delaware  corporation,  with
headquarters  located at 1101  Brickel  Avenue,  North  Tower 2nd Floor,  Miami,
Florida  33131 (the  "Company"),  and the Buyers  listed on  Schedule I attached
hereto (individually, a "Buyer" or collectively "Buyers" ).

                                   WITNESSETH:

         WHEREAS, the Company and the Buyer(s) are executing and delivering this
Agreement in reliance upon an exemption from securities registration pursuant to
Section 4(2) and/or Rule 506 of Regulation D ("Regulation  D") as promulgated by
the U.S. Securities and Exchange Commission (the "SEC") under the Securities Act
of 1933, as amended (the "1933 Act");

         WHEREAS,  the parties  desire  that,  upon the terms and subject to the
conditions  contained herein,  the Company shall issue and sell to the Buyer(s),
as  provided  herein,  and the  Buyer(s)  shall  purchase  Two Hundred and Fifty
Thousand  Dollars   ($250,000)  of  convertible   debentures  (the  "Convertible
Debentures"),  which shall be  convertible  into shares of the Company's  common
stock, (the "Common Stock") (as converted, the "Conversion Shares"), for a total
purchase  price of Two  Hundred  and  Fifty  Thousand  Dollars  ($250,000)  (the
"Purchase  Price") in the  respective  amounts set forth  opposite each Buyer(s)
name on Schedule I ( the "Subscription Amount"); and

         WHEREAS,  contemporaneously  with the  execution  and  delivery of this
Agreement, the parties hereto are executing and delivering a Registration Rights
Agreement   substantially  in  the  form  attached  hereto  as  Exhibit  A  (the
"Registration  Rights  Agreement")  pursuant  to which the Company has agreed to
provide  certain  registration  rights  under  the  1933 Act and the  rules  and
regulations promulgated there under, and applicable state securities laws; and

         WHEREAS,  the Convertible  Debentures are being offered through The May
Davis Group, Inc. (the "Placement  Agent"), as the Company's exclusive placement
agent for the offering; and

         WHEREAS,  the  aggregate  proceeds  of  the  sale  of  the  Convertible
Debentures  contemplated hereby shall be held in escrow pursuant to the terms of
an escrow agreement  substantially in the form of the Escrow Agreement  attached
hereto as Exhibit B.

         NOW,  THEREFORE,  in  consideration  of the mutual  covenants and other
agreements  contained in this Agreement the Company and the Buyer(s)hereby agree
as follows:

<PAGE>

         1.       PURCHASE AND SALE OF CONVERTIBLE DEBENTURES.

                  (a)  Purchase  of  Convertible  Debentures.   Subject  to  the
         satisfaction (or waiver) of the terms and conditions of this Agreement,
         each Buyer agrees,  severally  and not jointly,  to purchase at Closing
         (as defined  herein below) and the Company  agrees to sell and issue to
         each  Buyer,  severally  and  not  jointly,  at  Closing,   Convertible
         Debentures in amounts  corresponding  with the Subscription  Amount set
         forth  opposite each Buyer's name on Schedule I hereto.  Upon execution
         hereof by a Buyer,  the Buyer  shall  wire  transfer  the  Subscription
         Amount set forth opposite his name on Schedule I in same-day funds or a
         check  payable  to "First  Union  National  Bank,  as Escrow  Agent for
         Nexland,  Inc./ The May Davis Group,  Inc.", which Subscription  Amount
         shall be held in escrow  pursuant to the terms of the Escrow  Agreement
         (as  hereinafter  defined)  and  disbursed  in  accordance   therewith.
         Notwithstanding  the foregoing,  a Buyer may withdraw his  Subscription
         Amount and terminate  this Agreement as to such Buyer at any time after
         the execution hereof and prior to Closing (as hereinafter defined).

                  (b) Closing Date.  The closing of the purchase and sale of the
         Convertible  Debentures (the "Closing")  shall take place at 10:00 a.m.
         Eastern  Standard  Time on the  fifth  business  day  ("Closing  Date")
         following the date hereof,  subject to notification of satisfaction (or
         waiver) of the  conditions to the Closing set forth in Sections 6 and 7
         below (or such later date as is  mutually  agreed to by the Company and
         the Buyers). The Closing shall occur on the Closing Date at the offices
         of Butler  Gonzalez,  LLP, 1000 Stuyvesant  Avenue,  Suite 6, Union, NJ
         07083 (or such other place as is mutually  agreed to by the Company and
         the Buyers).

                  (c)  Escrow  Arrangements;  Form of  Payment.  Upon  execution
         hereof by Buyer(s) and pending Closing,  the aggregate  proceeds of the
         sale of the Convertible  Debentures to Buyer(s)  pursuant hereto,  plus
         the fees and expenses of the Placement  Agent,  shall be deposited in a
         non-interest  bearing escrow account with First Union National Bank, as
         escrow  agent  ("Escrow  Agent"),  pursuant  to the  terms of an escrow
         agreement between the Company, the Placement Agent and the Escrow Agent
         in the form  attached  hereto as  Exhibit B (the  "Escrow  Agreement").
         Subject  to the  satisfaction  of the  terms  and  conditions  of  this
         Agreement,  on the Closing Date,  (i) the Escrow Agent shall deliver to
         the Company in accordance  with the terms of the Escrow  Agreement such
         aggregate  gross proceeds for the  Convertible  Debentures to be issued
         and sold to such Buyer(s) at the Closing minus the fees and expenses of
         the Placement Agent, by wire transfer of immediately available funds in
         accordance with the Company's written wire  instructions,  and (ii) the
         Company shall deliver to each Buyer,  Convertible Debentures which such
         Buyer(s) is purchasing in amounts indicated  opposite such Buyer's name
         on Schedule I, duly executed on behalf of the Company.

         2.       BUYER'S REPRESENTATIONS AND WARRANTEES.

                  Each Buyer represents and warrants, severally and not jointly,
that:

                                       2
<PAGE>

                  (a)   INVESTMENT   PURPOSE.   Each  Buyer  is  acquiring   the
         Convertible Debentures and, upon conversion of Convertible  Debentures,
         the Buyer will acquire the Conversion Shares then issuable, for its own
         account for investment only and not with a view towards,  or for resale
         in connection  with, the public sale or  distribution  thereof,  except
         pursuant to sales registered or exempted under the 1933 Act;  provided,
         however, that by making the representations herein, such Buyer reserves
         the right to dispose of the Conversion Shares at any time in accordance
         with or pursuant to an effective  registration  statement covering such
         Conversion Shares or an available exemption under the 1933 Act.

                  (b)   ACCREDITED  BUYER STATUS.  Each Buyer is an  "Accredited
         Buyer" as that term is defined in Rule 501(a)(3) of Regulation D.

                  (c) RELIANCE ON EXEMPTIONS.  Each Buyer  understands  that the
         Convertible  Debentures are being offered and sold to it in reliance on
         specific exemptions from the registration requirements of United States
         federal  and state  securities  laws and that the Company is relying in
         part upon the truth and accuracy of, and such Buyer's  compliance with,
         the  representations,   warranties,  agreements,   acknowledgments  and
         understandings of such Buyer set forth herein in order to determine the
         availability  of such  exemptions and the  eligibility of such Buyer to
         acquire such securities.

                  (d) INFORMATION.  Each Buyer and its advisors (and his or, its
         counsel),  if any, have been furnished  with all materials  relating to
         the business, finances and operations of the Company and information he
         deemed material to making an informed investment decision regarding his
         purchase of the Convertible Debentures and the Conversion Shares, which
         have been requested by such Buyer. Each Buyer and its advisors, if any,
         have been afforded the  opportunity to ask questions of the Company and
         its  management.  Neither such  inquiries  nor any other due  diligence
         investigations  conducted by such Buyer or its advisors, if any, or its
         representatives  shall  modify,  amend or affect such Buyer's  right to
         rely on the  Company's  representations  and  warranties  contained  in
         Section 3 below.  Each Buyer  understands  that its  investment  in the
         Convertible Debentures and the Conversion Shares involves a high degree
         of risk.  Each Buyer is in a position  regarding  the  Company,  which,
         based upon  employment,  family  relationship  or  economic  bargaining
         power,  enabled and enables such Buyer to obtain  information  from the
         Company in order to evaluate  the merits and risks of this  investment.
         Each Buyer has sought such accounting,  legal and tax advice, as it has
         considered  necessary  to make an  informed  investment  decision  with
         respect  to its  acquisition  of the  Convertible  Debentures  and  the
         Conversion Shares.

                  (e) NO GOVERNMENTAL  REVIEW.  Such Buyer  understands  that no
         United  States  federal  or state  agency  or any other  government  or
         governmental  agency  has  passed  on or  made  any  recommendation  or
         endorsement of the Convertible  Debentures or the Conversion Shares, or
         the  fairness  or  suitability  of the  investment  in the  Convertible
         Debentures or the Conversion  Shares,  nor have such authorities passed
         upon  or  endorsed  the  merits  of the  offering  of  the  Convertible
         Debentures or the Conversion Shares.

                                       3
<PAGE>

                  (f) TRANSFER OR RESALE.  Such Buyer understands that except as
         provided in the  Registration  Rights  Agreement:  (i) the  Convertible
         Debentures  have not been and are not being  registered  under the 1933
         Act or any state  securities  laws,  and may not be  offered  for sale,
         sold,  assigned  or  transferred  unless  (A)  subsequently  registered
         thereunder,  or (B) such Buyer shall have  delivered  to the Company an
         opinion of counsel, in a generally  acceptable form, to the effect that
         such  securities  to be  sold,  assigned  or  transferred  may be sold,
         assigned or transferred pursuant to an exemption from such registration
         requirements; (ii) any sale of such securities made in reliance on Rule
         144 under the 1933 Act (or a successor  rule thereto)  ("Rule 144") may
         be made only in accordance  with the terms of Rule 144 and further,  if
         Rule  144 is not  applicable,  any  resale  of  such  securities  under
         circumstances  in which the seller (or the person through whom the sale
         is made) may be deemed to be an underwriter (as that term is defined in
         the 1933 Act) may require  compliance  with some other  exemption under
         the 1933 Act or the rules and  regulations of the SEC there under;  and
         (iii) neither the Company nor any other person is under any  obligation
         to register such securities  under the 1933 Act or any state securities
         laws or to comply with the terms and conditions of any exemption  there
         under.   The  Company   reserves  the  right  to  place  stop  transfer
         instructions  against the shares and  certificates  for the  Conversion
         Shares.

                  (g) LEGENDS.  Such Buyer  understands that the certificates or
         other  instruments  representing the Convertible  Debentures and or the
         Conversion Shares shall bear a restrictive  legend in substantially the
         following  form  (and a stop  transfer  order  may  be  placed  against
         transfer of such stock certificates):

                    THE  SECURITIES  REPRESENTED  BY THIS  CERTIFICATE
                    HAVE NOT BEEN REGISTERED  UNDER THE SECURITIES ACT
                    OF  1933,   AS  AMENDED,   OR   APPLICABLE   STATE
                    SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED
                    SOLELY FOR INVESTMENT PURPOSES AND NOT WITH A VIEW
                    TOWARD  RESALE  AND MAY NOT BE  OFFERED  FOR SALE,
                    SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN
                    EFFECTIVE    REGISTRATION    STATEMENT   FOR   THE
                    SECURITIES  UNDER THE  SECURITIES  ACT OF 1933, AS
                    AMENDED,  OR APPLICABLE  STATE SECURITIES LAWS, OR
                    AN OPINION OF COUNSEL,  IN A GENERALLY  ACCEPTABLE
                    FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID
                    ACT OR APPLICABLE STATE SECURITIES LAWS.

         The legend set forth above shall be removed and the Company shall issue
         a  certificate  without  such  legend to the  holder of the  Conversion
         Shares upon which it is stamped, if, unless otherwise required by state
         securities  laws, (i) in connection with a sale  transaction,  provided
         the  Conversion  Shares  are  registered  under the 1933 Act or (ii) in
         connection  with a sale  transaction,  such holder provides the Company

                                  4
<PAGE>

         with an opinion of counsel,  in form  acceptable to the Company and its
         counsel,  to the effect that a public sale,  assignment  or transfer of
         the Conversion Shares may be made without  registration  under the 1933
         Act.

                  (h) Authorization,  Enforcement.  This Agreement has been duly
         and validly authorized,  executed and delivered on behalf of such Buyer
         and is a valid and  binding  agreement  of such  Buyer  enforceable  in
         accordance with its terms, except as such enforceability may be limited
         by general principles of equity or applicable  bankruptcy,  insolvency,
         reorganization, moratorium, liquidation and other similar laws relating
         to, or affecting  generally,  the enforcement of applicable  creditors'
         rights and remedies.

                  (i)  Receipt of  Documents.  Such Buyer and his or its counsel
         has received and read in their  entirety:  (i) this  Agreement and each
         representation,   warranty   and  covenant   set  forth   herein,   the
         Registration Rights Agreement,  and the Escrow Agreement;  (ii) all due
         diligence  and other  information  necessary to verify the accuracy and
         completeness of such representations,  warranties and covenants;  (iii)
         the Company's  Form 10-KSB for the fiscal year ended December 31, 1999;
         (iv) the Company's  Form 10-QSB for the fiscal  quarter March 31, 2000,
         June 30, 2000, and September 30, 2000; and (v) answers to all questions
         the Buyer  submitted  to the Company  regarding  an  investment  in the
         Company; and the Buyer has relied on the information  contained therein
         and has not been furnished any other documents, literature,  memorandum
         or prospectus.

                  (j) Due  Formation  of  Corporate  and  Other  Buyers.  If the
         Buyer(s) is a corporation,  trust,  partnership or other entity that is
         not an individual person, it has been formed and validly exists and has
         not  been  organized  for  the  specific   purpose  of  purchasing  the
         Convertible Debentures and is not prohibited from doing so.

                  (k) Due  Authorization of Fiduciary Buyers. If the Buyer(s) is
         purchasing  the  Convertible  Debentures  in a fiduciary  capacity  for
         another person or entity, including, without limitation, a corporation,
         partnership,  trust or any other  entity,  the  Buyer(s)  has been duly
         authorized  and  empowered  to execute  this  Agreement  and such other
         person  fulfills all the  requirements  for purchase of the Convertible
         Debentures and agrees to be bound by the obligations,  representations,
         warranties,  and  covenants  contained  herein.  Upon  request  of  the
         Company, the Buyer(s) will provide true, complete and current copies of
         all relevant documents creating the Buyers,  authorizing its investment
         in the Company and/or evidencing the satisfaction of the foregoing.

                  (l) Further Representations by Foreign Buyers. If the Buyer(s)
         is not a U.S. Person (as defined below),  such Buyer hereby  represents
         that such  Buyer(s) is satisfied as to full  observance  of the laws of
         such  Buyer's   jurisdiction  in  connection  with  any  invitation  to
         subscribe for the securities or any use of this  Agreement,  including:
         (i)  the  legal  requirements  of  such  Buyer's  jurisdiction  for the
         purchase  of the  securities,  (ii) any foreign  exchange  restrictions
         applicable to such purchase,  (iii) any  governmental or other consents
         that may need to be  obtained,  and (iv) the  income  tax and other tax
         consequences,  if any, which may be relevant to the purchase,  holding,
         redemption,   sale,  or  transfer  of  the  securities.   Such  Buyer's
         subscription  and payment for, and such  Buyer's  continued  beneficial

                                       5
<PAGE>

         ownership of, the securities will not violate any applicable securities
         or other laws of such Buyer's  jurisdiction.  The term "U.S. Person" as
         used  herein  shall mean any person who is a citizen or resident of the
         United States or Canada, or any state, territory or possession thereof,
         including,  but not limited to, any estate of any such  person,  or any
         corporation,  partnership,  trust or other  entity  created or existing
         under the laws thereof, or any entity controlled or owned by any of the
         foregoing.

(m)     No Legal Advice From the Company.  Each Buyer acknowledges,  that it had
        the   opportunity  to  review  this   Agreement  and  the   transactions
        contemplated  by this  Agreement  with his or its own legal  counsel and
        investment  and tax  advisors.  Each  Buyer is  relying  solely  on such
        counsel and advisors and not on any statements or representations of the
        Company  or any of its  representatives  or  agents  for  legal,  tax or
        investment  advice with  respect to this  investment,  the  transactions
        contemplated   by  this  Agreement  or  the   securities   laws  of  any
        jurisdiction.

                  3.       REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

         The Company represents and warrants to each of the Buyers that:

                  (a)  ORGANIZATION  AND  QUALIFICATION.  The  Company  and  its
         subsidiaries  are  corporations  duly organized and validly existing in
         good  standing  under the laws of the  jurisdiction  in which  they are
         incorporated,  and  have the  requisite  corporate  power to own  their
         properties and to carry on their business as now being conducted.  Each
         of the  Company and its  subsidiaries  is duly  qualified  as a foreign
         corporation   to  do  business  and  is  in  good   standing  in  every
         jurisdiction in which the nature of the business  conducted by it makes
         such qualification necessary,  except to the extent that the failure to
         be so  qualified  or be in good  standing  would  not  have a  material
         adverse effect on the Company and its subsidiaries taken as a whole.

                  (b)   AUTHORIZATION,   ENFORCEMENT,   COMPLIANCE   WITH  OTHER
         INSTRUMENTS.  (i) The Company  has the  requisite  corporate  power and
         authority to enter into and perform this  Agreement,  the  Registration
         Rights  Agreement  and  any  related  agreements,   and  to  issue  the
         Convertible Debentures and the Conversion Shares in accordance with the
         terms  hereof and  thereof,  (ii) the  execution  and  delivery of this
         Agreement, the Registration Rights Agreement and any related agreements
         by  the  Company  and  the  consummation  by  it  of  the  transactions
         contemplated hereby and thereby,  including,  without  limitation,  the
         issuance of the  Convertible  Debentures the Conversion  Shares and the
         reservation  for  issuance and the  issuance of the  Conversion  Shares
         issuable upon conversion or exercise thereof, have been duly authorized
         by  the  Company's  Board  of  Directors  and  no  further  consent  or
         authorization is required by the Company, its Board of Directors or its
         stockholders,   (iii)  this  Agreement  and  the  Registration   Rights
         Agreement  and any  related  agreements  have  been duly  executed  and
         delivered by the Company, (iv) this Agreement,  the Registration Rights
         Agreement and any related  agreements  constitute the valid and binding
         obligations  of  the  Company   enforceable   against  the  Company  in
         accordance  with  their  terms,  except as such  enforceability  may be
         limited  by  general  principles  of equity or  applicable  bankruptcy,

                                       6
<PAGE>

         insolvency,  reorganization,  moratorium,  liquidation  or similar laws
         relating to, or affecting  generally,  the  enforcement  of  creditors'
         rights and remedies.

                  (c)  CAPITALIZATION.  As of the date  hereof,  the  authorized
         capital  stock of the Company  consists of  50,000,000shares  of Common
         Stock,  par value  $0.0001  per share,  of which as of March 19,  2001,
         36,027,378 shares were issued and outstanding.  All of such outstanding
         shares have been validly  issued and are fully paid and  nonassessable.
         Except as disclosed in the SEC  Documents  (as defined in Section 3(f))
         as amended,  no shares of Common Stock are subject to preemptive rights
         or any other similar  rights or any liens or  encumbrances  suffered or
         permitted by the Company. Except as disclosed in the SEC Documents , as
         of the date of this  Agreement,  (i) there are no outstanding  options,
         warrants,  scrip,  rights to subscribe to, calls or  commitments of any
         character  whatsoever  relating to, or securities or rights convertible
         into,  any  shares  of  capital  stock  of  the  Company  or any of its
         subsidiaries, or contracts, commitments, understandings or arrangements
         by which the Company or any of its  subsidiaries is or may become bound
         to issue  additional  shares of capital  stock of the Company or any of
         its subsidiaries or options,  warrants,  scrip, rights to subscribe to,
         calls or  commitments  of any  character  whatsoever  relating  to,  or
         securities or rights  convertible  into, any shares of capital stock of
         the Company or any of its  subsidiaries,  (ii) there are no outstanding
         debt securities and (iii) there are no agreements or arrangements under
         which the Company or any of its  subsidiaries  is obligated to register
         the sale of any of their securities under the 1933 Act (except pursuant
         to the  Registration  Rights  Agreement).  There are no  securities  or
         instruments containing anti-dilution or similar provisions that will be
         triggered by the issuance of the Convertible Debentures as described in
         this Agreement. The Company has furnished to the Buyer true and correct
         copies of the Company's Certificate of Incorporation, as amended and as
         in effect on the date hereof (the "Certificate of Incorporation"),  and
         the Company's By-laws, as in effect on the date hereof (the "By-laws"),
         and the terms of all securities  convertible  into or  exercisable  for
         Common Stock and the material  rights of the holders thereof in respect
         thereto other than stock options issued to employees and consultants.

                  (d) ISSUANCE OF  SECURITIES.  The  Convertible  Debentures are
         duly authorized and, upon issuance in accordance with the terms hereof,
         shall be duly issued,  fully paid and nonassessable,  are free from all
         taxes,  liens  and  charges  with  respect  to the issue  thereof.  The
         Conversion   Shares   issuable  upon   conversion  of  the  Convertible
         Debentures  have been duly  authorized and reserved for issuance.  Upon
         conversion or exercise in accordance  with the  Convertible  Debentures
         the   Conversion   Shares   will  be  duly   issued,   fully  paid  and
         nonassessable.

                  (e) NO CONFLICTS.  Except as disclosed in SEC  Documents,  the
         execution,  delivery and  performance  of this Agreement by the Company
         and the  consummation by the Company of the  transactions  contemplated
         hereby  will  not (i)  result  in a  violation  of the  Certificate  of
         Incorporation,  any  certificate  of  designations  of any  outstanding
         series  of  preferred  stock  of the  Company  or the  By-laws  or (ii)
         conflict with or constitute a default (or an event which with notice or
         lapse of time or both would become a default)  under, or give to others

                                       7
<PAGE>

         any rights of termination,  amendment, acceleration or cancellation of,
         any  agreement,  indenture or instrument to which the Company or any of
         its subsidiaries is a party, or result in a violation of any law, rule,
         regulation,  order,  judgment  or decree  (including  federal and state
         securities  laws and  regulations  and the rules and regulations of The
         National Association of Securities Dealers, Inc., OTC Bulletin Board on
         which the Common Stock is quoted)  applicable  to the Company or any of
         its  subsidiaries  or by which any  property or asset of the Company or
         any of its  subsidiaries  is bound or affected.  Except as disclosed in
         the SEC  Documents,  neither  the Company  nor its  subsidiaries  is in
         violation  of any  term  of or in  default  under  its  Certificate  of
         Incorporation  or By-laws or their  organizational  charter or by-laws,
         respectively,   or  any   material   contract,   agreement,   mortgage,
         indebtedness,  indenture,  instrument, judgment, decree or order or any
         statute,   rule  or  regulation   applicable  to  the  Company  or  its
         subsidiaries.  The business of the Company and its  subsidiaries is not
         being  conducted,  and  shall  not be  conducted  in  violation  of any
         material law,  ordinance,  or regulation  of any  governmental  entity.
         Except as  specifically  contemplated by this Agreement and as required
         under  the 1933  Act and any  applicable  state  securities  laws,  the
         Company is not required to obtain any consent,  authorization  or order
         of, or make any filing or registration  with, any court or governmental
         agency  in order  for it to  execute,  deliver  or  perform  any of its
         obligations under or contemplated by this Agreement or the Registration
         Rights Agreement in accordance with the terms hereof or thereof. Except
         as  disclosed  in the  SEC  Documents,  all  consents,  authorizations,
         orders,  filings  and  registrations  which the  Company is required to
         obtain  pursuant  to the  preceding  sentence  have  been  obtained  or
         effected  on  or  prior  to  the  date  hereof.  The  Company  and  its
         subsidiaries are unaware of any facts or circumstance, which might give
         rise to any of the foregoing.

                  (f) SEC  DOCUMENTS:  FINANCIAL  STATEMENTS.  Since  January 1,
         2000, the Company has filed all reports,  schedules,  forms, statements
         and other  documents  required  to be filed by it with the SEC under of
         the  Securities  Exchange Act of 1934, as amended (the "1934 Act") (all
         of the  foregoing  filed prior to the date hereof or amended  after the
         date hereof and all exhibits included therein and financial  statements
         and schedules thereto and documents  incorporated by reference therein,
         being hereinafter referred to as the "SEC Documents").  The Company has
         delivered  to the Buyers or their  representatives,  or made  available
         through the SEC's  website at  http://www.sec.gov.,  true and  complete
         copies  of  the  SEC  Documents.  As of  their  respective  dates,  the
         financial statements of the Company disclosed in the SEC Documents (the
         "Financial  Statements")  complied as to form in all material  respects
         with  applicable  accounting  requirements  and the published rules and
         regulations of the SEC with respect thereto.  Such financial statements
         have been prepared in accordance  with  generally  accepted  accounting
         principles,  consistently applied,  during the periods involved (except
         (i) as may be otherwise  indicated in such Financial  Statements or the
         notes thereto, or (ii) in the case of unaudited interim statements,  to
         the extent they may exclude  footnotes  or may be  condensed or summary
         statements)  and fairly present in all material  respects the financial
         position of the Company as of the dates  thereof and the results of its
         operations and cash flows for the periods then ended  (subject,  in the

                                       8
<PAGE>

         case of unaudited statements, to normal year-end audit adjustments). No
         other information  provided by or on behalf of the Company to the Buyer
         which  is  not  included  in  the  SEC  Documents,  including,  without
         limitation,  information  referred  to in Section  2(d) and (i) of this
         Agreement, contains any untrue statement of a material fact or omits to
         state  any  material  fact  necessary  in order to make the  statements
         therein,  in the light of the circumstances under which they were made,
         not misleading.

                  (g)  10(b)-5.  The SEC  Documents  do not  include  any untrue
         statements  of material  fact,  nor do they omit to state any  material
         fact  required to be stated  therein  necessary to make the  statements
         made,  in light of the  circumstances  under which they were made,  not
         misleading.

                  (h)  ABSENCE OF  LITIGATION.  Except as  disclosed  in the SEC
         Documents,   there  is  no  action,   suit,   proceeding,   inquiry  or
         investigation before or by any court, public board,  government agency,
         self-regulatory  organization  or body pending against or affecting the
         Company, the Common Stock or any of the Company's subsidiaries, wherein
         an  unfavorable  decision,  ruling or finding would (i) have a material
         adverse effect on the transactions  contemplated  hereby (ii) adversely
         affect the validity or  enforceability  of, or the authority or ability
         of the Company to perform its obligations  under, this Agreement or any
         of the  documents  contemplated  herein,  or (iii)  except as expressly
         disclosed in the SEC Documents,  have a material  adverse effect on the
         business,  operations,  properties,  financial  condition or results of
         operation of the Company and its subsidiaries taken as a whole.

                  (i)   ACKNOWLEDGMENT   REGARDING   BUYER'S   PURCHASE  OF  THE
         CONVERTIBLE  DEBENTURES.  The Company  acknowledges and agrees that the
         Buyer(s) is acting solely in the capacity of an arm's length  purchaser
         with  respect  to  this  Agreement  and the  transactions  contemplated
         hereby.  The  Company  further  acknowledges  that the  Buyer(s) is not
         acting as a financial  advisor or  fiduciary  of the Company (or in any
         similar  capacity) with respect to this Agreement and the  transactions
         contemplated  hereby and any  advice  given by the  Buyer(s)  or any of
         their  respective  representatives  or agents in  connection  with this
         Agreement and the transactions contemplated hereby is merely incidental
         to  such  Buyer's  purchase  of  the  Convertible   Debentures  or  the
         Conversion Shares. The Company further represents to the Buyer that the
         Company's  decision to enter into this  Agreement has been based solely
         on the independent evaluation by the Company and its representatives.

                  (j) NO GENERAL  SOLICITATION.  Neither the Company, nor any of
         its  affiliates,  nor any  person  acting on its or their  behalf,  has
         engaged in any form of  general  solicitation  or  general  advertising
         (within the meaning of  Regulation D under the 1933 Act) in  connection
         with the offer or sale of the Convertible  Debentures or the Conversion
         Shares.

                  (k) NO INTEGRATED  OFFERING.  Neither the Company,  nor any of
         its  affiliates,  nor any  person  acting on its or their  behalf  has,

                                       9
<PAGE>

         directly  or  indirectly,  made any offers or sales of any  security or
         solicited  any offers to buy any  security,  under  circumstances  that
         would  require  registration  of  the  Convertible  Debentures  or  the
         Conversion  Shares  under the 1933 Act or cause  this  offering  of the
         Convertible  Debentures or the Conversion  Shares to be integrated with
         prior offerings by the Company for purposes of the 1933 Act.

                  (l)  EMPLOYEE  RELATIONS.  Neither  the Company nor any of its
         subsidiaries  is involved in any labor dispute nor, to the knowledge of
         the Company or any of its subsidiaries, is any such dispute threatened.
         None of the Company's or its  subsidiaries'  employees is a member of a
         union and the Company and its subsidiaries believe that their relations
         with their employees are good.

                  (m)  INTELLECTUAL   PROPERTY  RIGHTS.   The  Company  and  its
         subsidiaries  own or possess  adequate  rights or  licenses  to use all
         trademarks,  trade names,  service marks,  service mark  registrations,
         service  names,  patents,   patent  rights,   copyrights,   inventions,
         licenses,  approvals,  governmental  authorizations,  trade secrets and
         rights  necessary  to  conduct  their  respective   businesses  as  now
         conducted.  The Company and its  subsidiaries do not have any knowledge
         of any  infringement  by the Company or its  subsidiaries of trademark,
         trade name rights,  patents,  patent  rights,  copyrights,  inventions,
         licenses,  service names,  service marks,  service mark  registrations,
         trade secret or other similar  rights of others,  and, to the knowledge
         of the Company there is no claim,  action or  proceeding  being made or
         brought  against,  or to  the  Company's  knowledge,  being  threatened
         against,  the Company or its subsidiaries  regarding  trademark,  trade
         name, patents, patent rights,  invention,  copyright,  license, service
         names, service marks, service mark registrations, trade secret or other
         infringement;  and the Company and its  subsidiaries are unaware of any
         facts or circumstances which might give rise to any of the foregoing.

                  (n)  ENVIRONMENTAL  LAWS. The Company and its subsidiaries are
         (i) in compliance with any and all applicable foreign,  federal,  state
         and local laws and  regulations  relating  to the  protection  of human
         health and safety,  the environment or hazardous or toxic substances or
         wastes,  pollutants or contaminants  ("Environmental  Laws"), (ii) have
         received  all  permits,  licenses or other  approvals  required of them
         under  applicable   Environmental  Laws  to  conduct  their  respective
         businesses and (iii) are in compliance with all terms and conditions of
         any such permit, license or approval.

                  (o) TITLE.  Any real property and facilities  held under lease
         by the  Company  and its  subsidiaries  are held by them  under  valid,
         subsisting  and  enforceable  leases  with such  exceptions  as are not
         material and do not interfere with the use made and proposed to be made
         of such property and buildings by the Company and its subsidiaries.

                  (p) INSURANCE.  The Company and each of its  subsidiaries  are
         insured by insurers of recognized financial responsibility against such
         losses  and risks and in such  amounts  as  management  of the  Company
         believes to be prudent and  customary  in the  businesses  in which the
         Company and its subsidiaries  are engaged.  Neither the Company nor any
         such  subsidiary  has been  refused any  insurance  coverage  sought or

                                       10
<PAGE>

         applied for and neither  the  Company nor any such  subsidiary  has any
         reason  to  believe  that it will  not be able to  renew  its  existing
         insurance  coverage  as and when  such  coverage  expires  or to obtain
         similar  coverage from similar insurers as may be necessary to continue
         its business at a cost that would not materially  and adversely  affect
         the  condition,  financial or otherwise,  or the earnings,  business or
         operations of the Company and its subsidiaries, taken as a whole.

                  (q)  REGULATORY  PERMITS.  The  Company  and its  subsidiaries
         possess all material certificates, authorizations and permits issued by
         the  appropriate  federal,  state  or  foreign  regulatory  authorities
         necessary  to conduct  their  respective  businesses,  and  neither the
         Company nor any such  subsidiary has received any notice of proceedings
         relating to the  revocation or  modification  of any such  certificate,
         authorization or permit.

                  (r) INTERNAL ACCOUNTING CONTROLS.  The Company and each of its
         subsidiaries   maintain  a  system  of  internal   accounting  controls
         sufficient to provide  reasonable  assurance that (i)  transactions are
         executed  in   accordance   with   management's   general  or  specific
         authorizations,  (ii)  transactions are recorded as necessary to permit
         preparation  of  financial  statements  in  conformity  with  generally
         accepted  accounting  principles and to maintain asset  accountability,
         and (iii) the recorded amounts for assets is compared with the existing
         assets at  reasonable  intervals and  appropriate  action is taken with
         respect to any differences.

                  (r) NO MATERIAL ADVERSE BREACHES,  ETC. Except as set forth in
         the SEC Documents,  neither the Company nor any of its  subsidiaries is
         subject to any charter,  corporate or other legal  restriction,  or any
         judgment,  decree,  order,  rule or regulation which in the judgment of
         the  Company's  officers  has or is  expected  in the  future to have a
         material  adverse  effect  on  the  business,  properties,  operations,
         financial condition,  results of operations or prospects of the Company
         or its subsidiaries. Neither the Company nor any of its subsidiaries is
         in breach of any contract or agreement which breach, in the judgment of
         the Company's  officers,  has or is expected to have a material adverse
         effect on the business,  properties,  operations,  financial condition,
         results of operations or prospects of the Company or its subsidiaries.

                  (s) TAX STATUS.  The Company and each of its  subsidiaries has
         made or filed all federal and state  income and all other tax  returns,
         reports and  declarations  required by any  jurisdiction to which it is
         subject and (unless and only to the extent that the Company and each of
         its  subsidiaries  has set  aside on its  books  provisions  reasonably
         adequate for the payment of all unpaid and  unreported  taxes) has paid
         all taxes and  other  governmental  assessments  and  charges  that are
         material  in amount,  shown or  determined  to be due on such  returns,
         reports and  declarations,  except those being  contested in good faith
         and has set aside on its books  provision  reasonably  adequate for the
         payment of all taxes for  periods  subsequent  to the  periods to which
         such returns,  reports or declarations apply. There are no unpaid taxes
         in any material amount claimed to be due by the taxing authority of any
         jurisdiction,  and the officers of the Company know of no basis for any
         such claim.

                                       11
<PAGE>

                  (t)  CERTAIN  TRANSACTIONS.  Except  as set  forth  in the SEC
         Documents  and except for arm's length  transactions  pursuant to which
         the Company  makes  payments in the  ordinary  course of business  upon
         terms no less  favorable  than the  Company  could  obtain  from  third
         parties and other than the grant of stock options  disclosed in the SEC
         Documents, none of the officers, directors, or employees of the Company
         is presently a party to any  transaction  with the Company  (other than
         for services as  employees,  officers  and  directors),  including  any
         contract,  agreement or other arrangement  providing for the furnishing
         of services to or by, providing for rental of real or personal property
         to or from,  or  otherwise  requiring  payments to or from any officer,
         director or such  employee or, to the  knowledge  of the  Company,  any
         corporation,  partnership,  trust or other entity in which any officer,
         director,  or any such  employee  has a  substantial  interest or is an
         officer, director, trustee or partner.

                  (u) FEES AND  RIGHTS  OF FIRST  REFUSAL.  The  Company  is not
         obligated to offer the securities offered hereunder on a right of first
         refusal  basis or otherwise  to any third  parties  including,  but not
         limited   to,   current  or  former   shareholders   of  the   Company,
         underwriters, brokers, agents or other third parties.

                  4.       COVENANTS.
                           ---------

                  (a) Best Efforts. Each party shall use its best efforts timely
         to satisfy each of the  conditions to be satisfied by it as provided in
         Sections 6 and 7 of this Agreement.

                  (b) Form D. The Company  agrees to file a Form D with  respect
         to the Conversion  Shares as required under Regulation D and to provide
         a copy thereof to each Buyer  promptly  after such filing.  The Company
         shall,  on or before the Closing Date,  take such action as the Company
         shall  reasonably  determine  is  necessary  to qualify the  Conversion
         Shares,  or obtain an exemption for the  Conversion  Shares for sale to
         the Buyers at the Closing  pursuant to this Agreement under  applicable
         securities or "Blue Sky" laws of the states of the United  States,  and
         shall provide  evidence of any such action so taken to the Buyers on or
         prior to the Closing Date.

                  (c) Reporting Status.  Until the earlier of (i) the date as of
         which the  Investor(s)  (as that term is  defined  in the  Registration
         Rights  Agreement)  may  sell  all of  the  Conversion  Shares  without
         restriction  pursuant to Rule 144(k) promulgated under the 1933 Act (or
         successor  thereto),  or (ii) the date on which (A) the Buyer(s)  shall
         have sold all the  Conversion  Shares  and (B) none of the  Convertible
         Debentures are outstanding  (the  "Registration  Period"),  the Company
         shall  use its  commercially  reasonable  efforts  to file in a  timely
         manner all reports  required  to be filed with the SEC  pursuant to the
         1934 Act and the  regulations  of the SEC there under,  and the Company
         shall not  terminate  its status as an issuer  required to file reports
         under the 1934 Act even if the 1934 Act or the  rules  and  regulations
         there under would otherwise permit such termination.

                                       12
<PAGE>

                  (d) Use of Proceeds.  The Company  will use the proceeds  from
         the sale of the Convertible Debentures for general corporate purposes.

                  (e)  Reservation of Shares.  The Company shall take all action
         reasonably necessary to at all times have authorized,  and reserved for
         the purpose of issuance, such number of shares of Common Stock as shall
         be necessary to effect the issuance of the Conversion Shares. If at any
         time the Company does not have available such shares of Common Stock as
         shall from time to time be sufficient  to effect the  conversion of all
         of the  Conversion  Shares of the Company shall call and hold a special
         meeting of the shareholders  within sixty (60) days of such occurrence,
         for the sole purpose of increasing the number of shares authorized. The
         Company's  management  shall  recommend to the  shareholders to vote in
         favor of  increasing  the number of shares of Common Stock  authorized.
         Management shall also vote all of its shares in favor of increasing the
         number of authorized shares of Common Stock.

                  (f) Listings or Quotation.  The Company shall promptly  secure
         the listing or quotation of the  Conversion  Shares upon each  national
         securities  exchange,  automated  quotation system or  Over-The-Counter
         Bulletin  Board or other  market,  if any,  upon which shares of Common
         Stock  are then  listed  or  quoted  (subject  to  official  notice  of
         issuance)  and shall use its best efforts to  maintain,  so long as any
         other  shares of Common  Stock shall be so listed,  such listing of all
         Conversion  Shares from time to time  issuable  under the terms of this
         Agreement.  The Company shall maintain the Common Stock's authorization
         for quotation in the over-the counter market

                  (g) Expenses.  Each of the Company and the Buyer(s)  shall pay
         all costs and expenses  incurred by such party in  connection  with the
         negotiation, investigation, preparation, execution and delivery of this
         Agreement and the Registration Rights Agreement. The costs and expenses
         of the Placement Agent and its counsel as well as the issuer's  counsel
         shall be paid for by the  Company  at Closing  in  accordance  with the
         terms of the  Placement  Agent  Agreement  between  the Company and the
         Placement Agent, dated March 19, 2001.

                  (h)  Corporate  Existence.  So long as any of the  Convertible
         Debentures  remain  outstanding,  the  Company  shall not  directly  or
         indirectly  consummate  any  merger,   reorganization,   restructuring,
         consolidation, sale of all or substantially all of the Company's assets
         or  any  similar   transaction  or  related   transactions  (each  such
         transaction, a "Sale of the Company") unless, prior to the consummation
         of a Sale of the Company,  the Company makes  appropriate  provision to
         insure that, upon the consummation of such Sale of the Company, each of
         the holders of the  Convertible  Debentures  will  thereafter  have the
         right to acquire and receive such shares of stock, securities or assets
         as may be issued or  payable  with  respect to or in  exchange  for the
         number of shares of Common Stock immediately theretofore acquirable and
         receivable upon the conversion of such holder's Convertible  Debentures
         had such Sale of the Company  not taken  place.  In any such case,  the
         Company will make  appropriate  provision with respect to such holders'

                                       13
<PAGE>

         rights and interests to insure that the provisions of this Section 4(h)
         will thereafter be applicable to the Convertible Debentures.

                  (i) TRANSACTIONS  WITH AFFILIATES.  So long as any Convertible
         Debentures are outstanding, the Company shall not, and shall cause each
         of its subsidiaries not to, enter into, amend, modify or supplement, or
         permit any  subsidiary to enter into,  amend,  modify or supplement any
         agreement,  transaction,  commitment, or arrangement with any of its or
         any  subsidiary's  officers,  directors,  person who were  officers  or
         directors at any time during the  previous two (2) years,  stockholders
         who  beneficially own five percent (5%) or more of the Common Stock, or
         Affiliates (as defined below) or with any individual  related by blood,
         marriage,  or  adoption  to any such  individual  or with any entity in
         which any such entity or  individual  owns a five  percent (5%) or more
         beneficial interest (each a "Related Party"),  except for (a) customary
         employment  arrangements  and benefit  programs on reasonable terms and
         customary  agreements  with Daniel  Sulton or his  Affiliates,  (b) any
         investment  in  an  Affiliate  of  the  Company,   (c)  any  agreement,
         transaction,  commitment,  or arrangement  on an  arms-length  basis on
         terms no less  favorable  than terms which  would have been  obtainable
         from a  person  other  than  such  Related  Party,  (d)  any  agreement
         transaction, commitment, or arrangement which is approved by a majority
         of the disinterested directors of the Company, for purposes hereof, any
         director who is also an officer of the Company or any subsidiary of the
         Company shall not be a disinterested  director with respect to any such
         agreement,  transaction,  commitment,  or arrangement.  "Affiliate" for
         purposes  hereof means,  with respect to any person or entity,  another
         person or entity that,  directly or  indirectly,  (i) has a ten percent
         (10%) or more equity  interest  in that person or entity,  (ii) has ten
         percent  (10%) or more  common  ownership  with that  person or entity,
         (iii)  controls that person or entity,  or (iv) shares  common  control
         with that person or entity. "Control" or "controls" for purposes hereof
         means  that a person or entity has the power,  direct or  indirect,  to
         conduct or govern the policies of another person or entity.

                  (j) Transfer Agent. The Company  covenants and agrees that, in
         the event that the  Company's  agency  relationship  with the  transfer
         agent should be terminated  for any reason prior to a date which is two
         (2) years after the Closing Date, the Company shall immediately appoint
         a new transfer  agent and shall require that the transfer agent execute
         and agree to be bound by the terms of the Irrevocable  Instructions (as
         defined herein) to Transfer Agent.

         5.       TRANSFER AGENT INSTRUCTIONS.
                  ---------------------------

                  The Company shall issue  irrevocable  instructions in the form
         attached   hereto  as  Exhibit  D  to  its  transfer   agent  to  issue
         certificates,  registered in the name of the Buyer(s) or its respective
         nominee(s),  for the  Conversion  Shares  representing  such amounts of
         Convertible  Debentures as specified  from time to time by the Buyer(s)
         to the Company  upon  conversion  of the  Convertible  Debentures  (the
         "Irrevocable  Transfer Agent  Instructions").  Prior to registration of
         the Conversion Shares under the 1933 Act, all such  certificates  shall

                                       14
<PAGE>

         bear  the  restrictive   legend  specified  in  Section  2(g)  of  this
         Agreement.  The Company  warrants  that no  instruction  other than the
         Irrevocable Transfer Agent Instructions  referred to in this Section 5,
         and stop  transfer  instructions  to give effect to Section 2(f) hereof
         (in the case of the  Conversion  Shares prior to  registration  of such
         shares under the 1933 Act) will be given by the Company to its transfer
         agent  and  that  the  Conversion  Shares  shall  otherwise  be  freely
         transferable  on the books and  records  of the  Company  as and to the
         extent  provided  in  this  Agreement  and  the   Registration   Rights
         Agreement.  Nothing  in  this  Section  5 shall  affect  in any way the
         Buyer's  obligations  and  agreement  to  comply  with  all  applicable
         securities  laws upon  resale of  Conversion  Shares.  If the  Buyer(s)
         provides   the  Company   with  an  opinion  of   counsel,   reasonably
         satisfactory in form, and substance to the Company,  that  registration
         of a resale  by the  Buyer(s)  of any of the  Conversion  Shares is not
         required  under the 1933 Act, the Company  shall permit the transfer of
         the Conversion Shares promptly instruct its transfer agent to issue one
         or  more  certificates  in  such  name  and in  such  denominations  as
         specified by the Buyer. The Company acknowledges that a breach by it of
         its obligations  hereunder will cause  irreparable harm to the Buyer by
         vitiating  the  intent  and  purpose  of the  transaction  contemplated
         hereby.  Accordingly,  the Company  acknowledges that the remedy at law
         for a breach of its obligations under this Section 5 will be inadequate
         and  agrees,  in the  event of a breach  or  threatened  breach  by the
         Company of the provisions of this Section 5, that the Buyer(s) shall be
         entitled, in addition to all other available remedies, to an injunction
         restraining any breach and requiring  immediate  issuance and transfer,
         without the necessity of showing  economic loss and without any bond or
         other security being required.

         6.       CONDITIONS TO THE COMPANY'S OBLIGATION TO SELL.
                  ----------------------------------------------

                  The obligation of the Company  hereunder to issue and sell the
         Convertible Debentures to the Buyer(s) at the Closing is subject to the
         satisfaction,  at or before the Closing  Date, of each of the following
         conditions,  provided that these  conditions are for the Company's sole
         benefit  and may be  waived  by the  Company  at any  time in its  sole
         discretion:

                  (a) Each Buyer  shall have  executed  this  Agreement  and the
         Registration Rights Agreement and delivered the same to the Company.

                  (b) The Buyer(s)  shall have delivered to the Escrow Agent the
         Purchase Price for Convertible  Debentures in respective amounts as set
         forth next to each Buyer as outlined on Schedule I attached  hereto and
         the Escrow Agent shall have delivered such funds to the Company by wire
         transfer  of  immediately  available  U.S.  funds  pursuant to the wire
         instructions provided by the Company.

                  (c) The  representations  and warranties of the Buyer(s) shall
         be true and correct in all  material  respects as of the date when made
         and as of the  Closing  Date as though  made at that time  (except  for
         representations  and warranties that speak as of a specific date),  and
         the  Buyer(s)  shall have  performed,  satisfied  and  complied  in all

                                       15
<PAGE>

         material  respects  with  the  covenants,   agreements  and  conditions
         required by this Agreement to be performed,  satisfied or complied with
         by the Buyer(s) at or prior to the Closing Date.

         7.       CONDITIONS TO THE BUYER'S OBLIGATION TO PURCHASE.
                  ------------------------------------------------

                  The  obligation  of the  Buyer(s)  hereunder  to purchase  the
         Convertible  Debentures at the Closing is subject to the  satisfaction,
         at or before the Closing  Date,  of each of the  following  conditions,
         provided that these conditions are for the Buyer's sole benefit and may
         be waived by the Buyer(s) at any time in its sole discretion:

                  (a) The Company  shall have  executed  this  Agreement and the
         Registration Rights Agreement, and delivered the same to the Buyer(s).

                  (b) The Common Stock shall be authorized  for quotation on The
         National  Association of Securities  Dealers,  Inc. OTC Bulletin Board,
         trading  in the  Common  Stock  shall not have been  suspended  for any
         reason and all of the Conversion Shares issuable upon conversion of the
         Convertible  Debentures  shall be approved  for listing or quotation on
         The  National  Association  of  Securities  Dealers,  Inc. OTC Bulletin
         Board.

                  (c) The representations and warranties of the Company shall be
         true and correct in all  material  respects  (except to the extent that
         any of such  representations  and warranties is already qualified as to
         materiality in Section 3 above, in which case, such representations and
         warranties shall be true and correct without further  qualification) as
         of the date when made and as of the Closing Date as though made at that
         time  (except for  representations  and  warranties  that speak as of a
         specific  date) and the Company  shall have  performed,  satisfied  and
         complied in all material  respects with the  covenants,  agreements and
         conditions  required by this  Agreement to be  performed,  satisfied or
         complied with by the Company at or prior to the Closing Date. The Buyer
         shall have  received a  certificate,  executed by the  President of the
         Company,  dated as of the Closing Date, to the foregoing  effect and as
         to such  other  matters  as may be  reasonably  requested  by the Buyer
         including,  without  limitation  an  update  as  of  the  Closing  Date
         regarding the representation contained in Section 3(c) above.

                  (e) The  Company  shall have  executed  and  delivered  to the
         Buyer(s) the Convertible Debentures in the respective amounts set forth
         opposite each Buyer(s) name on Schedule I attached hereto.

                  (f) As of the Closing  Date,  the Company  shall have reserved
         out of its authorized and unissued Common Stock, solely for the purpose
         of effecting the conversion of the  Convertible  Debentures , shares of
         Common Stock to effect the  conversion  of all of the  Conversion  then
         outstanding.

                                       16
<PAGE>

                  (g) The Irrevocable  Transfer Agent Instructions,  in form and
         substance  satisfactory to the Buyer,  shall have been delivered to and
         acknowledged in writing by the Company's transfer agent.

         8.       INDEMNIFICATION.
                  ---------------

                  (a) In consideration of the Buyer's  execution and delivery of
         this  Agreement  and  acquiring  the  Convertible  Debentures  and  the
         Conversion  Shares  hereunder,  and in addition to all of the Company's
         other  obligations  under this  Agreement,  the Company  shall  defend,
         protect, indemnify and hold harmless the Buyer(s) and each other holder
         of the  Convertible  Debentures and the Conversion  Shares,  and all of
         their officers,  directors,  employees and agents  (including,  without
         limitation,   those  retained  in  connection  with  the   transactions
         contemplated by this Agreement) (collectively, the "Buyer Indemnitees")
         from and against any and all actions,  causes of action, suits, claims,
         losses, costs,  penalties,  fees, liabilities and damages, and expenses
         in  connection  therewith  (irrespective  of  whether  any  such  Buyer
         Indemnitee is a party to the action for which indemnification hereunder
         is sought), and including reasonable  attorneys' fees and disbursements
         (the "Indemnified  Liabilities"),  incurred by the Buyer Indemnitees or
         any of them as a result of, or arising  out of, or  relating to (a) any
         misrepresentation  or breach of any  representation or warranty made by
         the  Company  in this  Agreement,  the  Convertible  Debentures  or the
         Registration  Rights Agreement or any other certificate,  instrument or
         document  contemplated  hereby  or  thereby,  (b)  any  breach  of  any
         covenant,  agreement  or  obligation  of the Company  contained in this
         Agreement,   or  the   Registration   Rights  Agreement  or  any  other
         certificate,  instrument or document contemplated hereby or thereby, or
         (c) any cause of action,  suit or claim  brought or made  against  such
         Indemnitee  and  arising  out  of  or  resulting  from  the  execution,
         delivery,  performance  or  enforcement  of this Agreement or any other
         instrument,  document or agreement  executed  pursuant hereto by any of
         the Indemnities, any transaction financed or to be financed in whole or
         in part,  directly or indirectly,  with the proceeds of the issuance of
         the Convertible  Debentures or the status of the Buyer or holder of the
         Convertible Debentures the Conversion Shares, as a Buyer of Convertible
         Debentures in the Company. To the extent that the foregoing undertaking
         by the Company may be unenforceable  for any reason,  the Company shall
         make the maximum  contribution to the payment and  satisfaction of each
         of the Indemnified  Liabilities,  which is permissible under applicable
         law.

                  (b) In consideration  of the Company's  execution and delivery
         of  this  Agreement,  and in  addition  to all  of  the  Buyer's  other
         obligations  under this  Agreement,  the Buyer shall  defend,  protect,
         indemnify  and hold  harmless  the  Company  and all of it's  officers,
         directors,  employees and agents (including,  without limitation, those
         retained  in  connection  with the  transactions  contemplated  by this
         Agreement)  (collectively,  the "Company Indemnitees") from and against
         any and all Indemnified  Liabilities incurred by the Indemnitees or any
         of them as a result  of,  or  arising  out of, or  relating  to (a) any
         misrepresentation  or breach of any  representation or warranty made by
         the Buyer(s) in this Agreement,  the Registration Rights Agreement,  or
         any  other  instrument  or  document  contemplated  hereby  or  thereby

                                       17
<PAGE>

         executed by the Buyer,  (b) any breach of any  covenant,  agreement  or
         obligation   of  the  Buyer(s)   contained  in  this   Agreement,   the
         Registration  Rights Agreement or any other certificate,  instrument or
         document  contemplated  hereby or thereby executed by the Buyer, or (c)
         any cause of action, suit or claim brought or made against such Company
         Indemnitee  based on material  misrepresentations  or due to a material
         breach and arising out of or resulting  from the  execution,  delivery,
         performance or enforcement of this Agreement,  the Registration  Rights
         Agreement,  or any other  instrument,  document or  agreement  executed
         pursuant hereto by any of the Company  Indemnities.  To the extent that
         the foregoing  undertaking by each Buyer may be  unenforceable  for any
         reason,  each Buyer shall make the maximum  contribution to the payment
         and  satisfaction  of each of the  Indemnified  Liabilities,  which  is
         permissible under applicable law.

         9.       GOVERNING LAW: MISCELLANEOUS.
                  ----------------------------

                  (a)  GOVERNING  LAW. This  Agreement  shall be governed by and
         interpreted  in  accordance  with  the  laws of the  State  of New York
         without  regard to the  principles  of  conflict  of laws.  The parties
         further  agree that any action  between them shall be heard in New York
         City, New York, and expressly  consent to the jurisdiction and venue of
         the Supreme Court of New York and the United States  District Court for
         the  Southern  District of New York for the  adjudication  of any civil
         action asserted pursuant to this Paragraph.

                  (b)  COUNTERPARTS.  This  Agreement  may be executed in two or
         more identical  counterparts,  all of which shall be considered one and
         the same agreement and shall become  effective when  counterparts  have
         been  signed by each party and  delivered  to the other  party.  In the
         event any signature  page is delivered by facsimile  transmission,  the
         party  using such means of  delivery  shall  cause four (4)  additional
         original  executed  signature  pages to be physically  delivered to the
         other party within five (5) days of the execution and delivery hereof

                  (c)  HEADINGS.   The  headings  of  this   Agreement  are  for
         convenience  of  reference  and shall  not form part of, or affect  the
         interpretation of, this Agreement.

                  (d) SEVERABILITY.  If any provision of this Agreement shall be
         invalid  or  unenforceable  in any  jurisdiction,  such  invalidity  or
         unenforceability shall not affect the validity or enforceability of the
         remainder  of this  Agreement in that  jurisdiction  or the validity or
         enforceability  of  any  provision  of  this  Agreement  in  any  other
         jurisdiction.

                  (e) ENTIRE AGREEMENT,  AMENDMENTS.  This Agreement  supersedes
         all other prior oral or written  agreements  between the Buyer(s),  the
         Company,  their  affiliates  and  persons  acting on their  behalf with
         respect to the matters  discussed  herein,  and this  Agreement and the
         instruments  referenced herein contain the entire  understanding of the

                                       18
<PAGE>

         parties  with  respect to the matters  covered  herein and therein and,
         except as specifically set forth herein or therein, neither the Company
         nor  any  Buyer  makes  any  representation,   warranty,   covenant  or
         undertaking  with  respect  to  such  matters.  No  provision  of  this
         Agreement  may be waived or  amended  other  than by an  instrument  in
         writing signed by the party to be charged with enforcement.

                  (f)  NOTICES.  Any  notices,   consents,   waivers,  or  other
         communications  required  or  permitted  to be given under the terms of
         this  Agreement  must be in  writing  and will be  deemed  to have been
         delivered  (i) upon  receipt,  when  delivered  personally;  (ii)  upon
         confirmation of receipt, when sent by facsimile, ; (iii) three (3) days
         after being sent by U.S. certified mail, return receipt  requested,  or
         (iv) one (1) day after deposit with a nationally  recognized  overnight
         delivery  service,  in each  case  properly  addressed  to the party to
         receive  the  same.  The  addresses  and  facsimile  numbers  for  such
         communications shall be:

         If to the Company, to:               Nexland, Inc.
                                              1101 Brickell Avenue
                                              North Tower, 2nd Floor
                                              Miami, Florida  33131
                                              Attention: Gregory S. Levine
                                                         President
                                              Telephone: (305) 358-7771
                                              Facsimile: (305) 358-3151

         With a copy to:                      Kirkpatrick & Lockhart LLP
                                              201 South Biscayne Blvd. -
                                              Suite 2000
                                              Miami, Fl 33131
                                              Attention: Clayton E. Parker, Esq.
                                              Telephone: (305) 539-3300
                                              Facsimile: (305) 358-7095

         If to the Transfer Agent, to:        Jersey Transfer & Trust Company
                                              201 Bloomfield Avenue
                                              Verona, NJ 07044
                                              Telephone: (973) 239-2712
                                              Facsimile: (973) 239-2361
                                              Attention:  Jeff Manger

         If to the Investor:                  At the address listed on
                                              Schedule A.

                                       19
<PAGE>

                  If to the  Buyer(s),  to its address and  facsimile  number on
         Schedule I, with copies to the Buyer's counsel as set forth on Schedule
         I. Each party shall provide five (5) days' prior written  notice to the
         other party of any change in address or facsimile number.

                  (g)  SUCCESSORS AND ASSIGNS.  This Agreement  shall be binding
         upon and inure to the  benefit  of the  parties  and  their  respective
         successors and assigns.  Neither the Company nor any Buyer shall assign
         this Agreement or any rights or obligations hereunder without the prior
         written consent of the other party hereto.

                  (h) NO THIRD PARTY  BENEFICIARIES.  This Agreement is intended
         for the benefit of the parties  hereto and their  respective  permitted
         successors  and  assigns,  and is not for the  benefit  of, nor may any
         provision hereof be enforced by, any other person.

                  (i)  SURVIVAL.  Unless  this  Agreement  is  terminated  under
         Section 9(l), the representations and warranties of the Company and the
         Buyers  contained in Sections 2 and 3, the agreements and covenants set
         forth in Sections 4, 5 and 9, and the  indemnification  provisions  set
         forth in Section 8, shall  survive  the Closing for a period of one (1)
         year  following  the  date on  which  the  Convertible  Debentures  are
         converted in full. The Buyer(s)  shall be responsible  only for its own
         representations, warranties, agreements and covenants hereunder.

                  (j)  PUBLICITY.  The Company and the  Buyer(s)  shall have the
         right to approve, before issuance any press release or any other public
         statement with respect to the transactions  contemplated hereby made by
         any party;  provided,  however,  that the  Company  shall be  entitled,
         without the prior approval of the Buyer(s),  to issue any press release
         or other public disclosure with respect to such  transactions  required
         under  applicable  securities or other laws or regulations (the Company
         shall use its best efforts to consult the Buyer(s) in  connection  with
         any such press release or other public  disclosure prior to its release
         and  Buyer(s)  shall  be  provided  with a copy  thereof  upon  release
         thereof).

                  (k) FURTHER  ASSURANCES.  Each party shall do and perform,  or
         cause to be done and performed,  all such further acts and things,  and
         shall  execute  and deliver  all such other  agreements,  certificates,
         instruments and documents, as the other party may reasonably request in
         order to carry out the  intent  and  accomplish  the  purposes  of this
         Agreement and the consummation of the transactions contemplated hereby.

                  (1) Termination.  In the event that the Closing shall not have
         occurred with respect to the Buyers on or before five (5) business days
         from the date hereof due to the  Company's  or the  Buyer's  failure to
         satisfy  the  conditions  set forth in  Sections 6 and 7 above (and the
         non-breaching party's failure to waive such unsatisfied  condition(s)),
         the  non-breaching  party  shall  have the  option  to  terminate  this
         Agreement with respect to such breaching party at the close of business
         on such  date  without  liability  of any  party  to any  other  party;
         provided,  however,  that if this  Agreement is terminated  pursuant to
         this Section 9(l), the Company shall remain  obligated to reimburse the

                                       20
<PAGE>

         Buyer(s) for the expenses described in Section 4(g) above.

                  (m) Finder.  The Company  acknowledges that it has engaged The
         May Davis Group,  Inc., as the placement  agent in connection  with the
         sale of the  Convertible  Debentures.  The Company shall be responsible
         for the  payment of any  placement  agent fees  (which  includes  cash)
         relating to or arising out of the transactions  contemplated hereby and
         from the proceeds thereof.

                  (n) No  Strict  Construction.   The  language  used   in  this
         Agreement  will be deemed to be the  language  chosen by the parties to
         express their mutual intent,  and no rules of strict  construction will
         be applied against any party.

                    [REMAINDER PAGE INTENTIONALLY LEFT BLANK]

                                       21
<PAGE>

         IN WITNESS  WHEREOF,  the  Buyers  and the  Company  have  caused  this
Securities  Purchase  Agreement to be duly executed as of the date first written
above.

                                     NEXLAND, INC.

                                     By: /s/ Gregory S. Levine
                                        -------------------------------
                                        Name:  Gregory S. Levine
                                        Title: President

                                     By:
                                        -------------------------------
                                        Name:
                                             --------------------------
                                        Title:
                                              -------------------------

                                       22

<PAGE>

                                   SCHEDULE I
                               SCHEDULE OF BUYERS

--------------------------------------------------------------------------------
                                                         Amount of
  Name            Address/Facsimile Number of Buyer    Subscription
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------Exhibit 10.14
                          REGISTRATION RIGHTS AGREEMENT

      THIS REGISTRATION RIGHTS AGREEMENT (this  "AGREEMENT"),  dated as of March
19, 2001, by and among NEXLAND, INC., a Delaware corporation, with its principal
office located at 1101 Brickel  Avenue,  North Tower 2nd Floor,  Miami,  Florida
33131 (the  "COMPANY"),  and the undersigned  investors (each, an "INVESTOR" and
collectively, the "INVESTORS").

      WHEREAS:

      A. In connection with the Securities  Purchase  Agreement by and among the
parties hereto of even date herewith (the "SECURITIES PURCHASE Agreement"),  the
Company  has  agreed,  upon the  terms  and  subject  to the  conditions  of the
Securities Purchase Agreement, to issue and sell to the Investors that number of
shares of the Company's  common stock,  par value $0.0001 per share (the "COMMON
STOCK"), which can be purchased pursuant to the terms of the Securities Purchase
Agreement  for an  aggregate  purchase  price of Two Hundred and Fifty  Thousand
Dollars ($250,000).  Capitalized terms not defined herein shall have the meaning
ascribed to them in the Securities Purchase Agreement.

      B. To induce the Investors to execute and deliver the Securities  Purchase
Agreement,  the Company has agreed to provide certain  registration rights under
the  Securities  Act of 1933, as amended,  and the rules and  regulations  there
under, or any similar  successor  statute  (collectively,  the "1933 ACT"),  and
applicable state securities laws.

      NOW, THEREFORE,  in consideration of the premises and the mutual covenants
contained  herein and other good and  valuable  consideration,  the  receipt and
sufficiency  of which are hereby  acknowledged,  the Company  and the  Investors
hereby agree as follows:

      1.    DEFINITIONS.
            -----------

            As used in this  Agreement,  the  following  terms  shall  have  the
following meanings:

            a. "INVESTOR"  means  an  Investor  and any  transferee  or assignee
thereof to whom an Investor  assigns  its rights  under this  Agreement  and who
agrees to become bound by the  provisions of this  Agreement in accordance  with
Section 9.

            b. "PERSON" means a corporation,  a limited  liability  company,  an
association,  a partnership,  an  organization,  a business,  an  individual,  a
governmental or political subdivision thereof or a governmental agency.

            c. "REGISTER,"   "REGISTERED,"  and   "REGISTRATION"   refer   to  a
registration   effected  by  preparing  and  filing  one  or  more  Registration
Statements  (as defined  below) in compliance  with the 1933 Act and pursuant to
Rule 415  under  the 1933  Act or any  successor  rule  providing  for  offering
securities on a continuous or delayed basis ("RULE 415"), and the declaration or
ordering of effectiveness of such Registration Statement(s) by the United States

<PAGE>

Securities and Exchange Commission (the "SEC").

            d. "REGISTRABLE  SECURITIES"  means  the  shares   of  Common  Stock
issuable to Investors pursuant to the Securities Purchase Agreement.

            e.  "REGISTRATION STATEMENT"  means  a registration  statement under
the 1933 Act which covers the Registrable Securities.

      2.    REGISTRATION.
            ------------

            (a) Subject  to the  terms and  conditions  of this  Agreement,  the
Company  shall use its  commercially  reasonable  efforts to  prepare  and file,
within  forty-five (45) calendar days of the date hereof (the "SCHEDULED  FILING
DEADLINE"),  with the SEC a  registration  statement on Form S-1 or SB-2 (or, if
the  Company is then  eligible,  on Form S-3)  under the 1933 Act (the  "INITIAL
REGISTRATION  STATEMENT") for the  registration  for the resale by all Investors
who  purchased  Convertible  Debentures  pursuant  to  the  Securities  Purchase
Agreement  468,000  shares of Common Stock to be issued upon  conversion  of the
Convertible  Debentures  issued  pursuant to the Securities  Purchase  Agreement
dated March 19,  2001.  The Company  shall cause the  Registration  Statement to
remain  effective until all of the Registrable  Securities have been sold. Prior
to the filing of the  Registration  Statement  with the SEC , the Company  shall
furnish a copy of the Initial Registration Statement to Investors, the Placement
Agent,  the May Davis Group ("MAY  Davis")  and Butler  Gonzalez,  LLP for their
review and comment  together with a selling  shareholder  questionnaire  in form
prepared by the Company. The Investors,  May Davis and Butler Gonzalez LLP shall
furnish comments on the Initial  Registration  Statement and an executed selling
shareholder  questionnaire  to the Company within  twenty-four (24) hours of the
receipt thereof from the Company.

            (b) EFFECTIVENESS OF THE INITIAL REGISTRATION STATEMENT. The Company
shall  use  its  commercially   reasonable  efforts  (i)  to  have  the  Initial
Registration  Statement  declared effective by the SEC no later than ninety (90)
days after the date  hereof (the  "SCHEDULED  EFFECTIVE  DEADLINE")  and (ii) to
insure that the Initial Registration  Statement and any subsequent  Registration
Statement  remains in effect until all of the  Registrable  Securities have been
sold, subject to the terms and conditions of this Agreement.

            (c)  FAILURE  TO FILE OR OBTAIN  EFFECTIVENESS  OF THE  REGISTRATION
STATEMENT.

            If the Registration  Statement is not declared  effective by the SEC
on or  before  the  Scheduled  Effective  Date,  or if  after  the  Registration
Statement has been declared  effective by the SEC, sales cannot be made pursuant
to the  Registration  Statement  (whether  because  of a  failure  to  keep  the
Registration  Statement  effective,  failure to disclose such  information as is
necessary for sales to be made pursuant to the Registration  Statement,  failure
to register  sufficient  shares of Common Stock or  otherwise),  then as partial
relief for the damages to any holder of Registrable  Securities by reason of any
such  delay in or  reduction  of its  ability to sell the  underlying  shares of
Common Stock (which  remedy shall not be exclusive of any other  remedies at law
or in equity),  the Company  will pay as  liquidated  damages  (the  "LIQUIDATED

                                        2
<PAGE>

DAMAGES") to the holder a cash amount  within three (3) business days of the end
of  the  month  equal  to  two  percent  (2%)  of the  liquidated  value  of the
Convertible Debentures outstanding as Liquidated Damages.

            (d) LIQUIDATED  DAMAGES.   The  Company  and   the  Investor  hereto
acknowledge  and agree that the sums payable under  subsection  2(c) above shall
constitute liquidated damages and not penalties. The parties further acknowledge
that (i) the amount of loss or damages  likely to be incurred is incapable or is
difficult to precisely estimate,  (ii) the amounts specified in such subsections
bear  a   reasonable   relationship   to,   and  are  not   plainly  or  grossly
disproportionate  to the probable loss likely to be incurred in connection  with
any  failure  by the  Company  to  obtain or  maintain  the  effectiveness  of a
Registration  Statement,  (iii)  one of the  reasons  for  the  Company  and the
Investor  reaching an agreement as to such amounts was the  uncertainty and cost
of litigation regarding the question of actual damages, and (iv) the Company and
the Investor are  sophisticated  business  parties and have been  represented by
sophisticated  and able legal  counsel and  negotiated  this  Agreement at arm's
length.

      3.    RELATED OBLIGATIONS.
            -------------------

            a. The  Company  shall  keep the  Registration  Statement  effective
pursuant  to Rule 415 at all times  until the date on which the  Investor  shall
have sold all the Registrable  Securities covered by such Registration Statement
(the  "REGISTRATION  PERIOD"),   which  Registration  Statement  (including  any
amendments or supplements thereto and prospectuses  contained therein) shall not
contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein,  or necessary to make the statements  therein, in
light of the circumstances in which they were made, not misleading.

            b. The Company shall  prepare and file with the SEC such  amendments
(including   post-effective   amendments)  and  supplements  to  a  Registration
Statement  and  the  prospectus  used  in  connection  with  such   Registration
Statement,  which  prospectus  is to be filed  pursuant to Rule 424  promulgated
under the 1933 Act,  as may be  necessary  to keep such  Registration  Statement
effective at all times during the Registration  Period, and, during such period,
comply with the  provisions of the 1933 Act with respect to the  disposition  of
all Registrable Securities of the Company covered by such Registration Statement
until such time as all of such  Registrable  Securities shall have been disposed
of in  accordance  with the  intended  methods of  disposition  by the seller or
sellers  thereof  as set forth in such  Registration  Statement.  In the case of
amendments and supplements to a Registration  Statement which are required to be
filed  pursuant to this Agreement  (including  pursuant to this Section 3(b)) by
reason of the  Company's  filing a report on Form  10-KSB,  Form  10-QSB or Form
8-KSB or any  analogous  report under the  Securities  Exchange Act of 1934,  as
amended (the "1934 ACT"), the Company shall incorporate such report by reference
into the Registration Statement, if applicable, or shall file such amendments or
supplements  with the SEC on the same day on which the 1934 Act  report is filed
which  created  the  requirement  for the  Company  to amend or  supplement  the
Registration Statement.

                                       3
<PAGE>

            c. The Company  shall  furnish to each  Investor  whose  Registrable
Securities are included in any Registration  Statement,  without charge,  (i) at
least one (1) copy of such Registration  Statement as declared  effective by the
SEC and any amendment(s) thereto,  including financial statements and schedules,
all  documents  incorporated  therein  by  reference,   all  exhibits  and  each
preliminary prospectus, (ii) ten (10) copies of the final prospectus included in
such Registration  Statement and all amendments and supplements thereto (or such
other number of copies as such Investor may  reasonably  request) and (iii) such
other  documents as such  Investor may  reasonably  request from time to time in
order to facilitate the disposition of the Registrable  Securities owned by such
Investor.

            d. The  Company  shall  use its best  efforts  to (i)  register  and
qualify the  Registrable  Securities  covered by a Registration  Statement under
such other  securities  or "blue sky" laws of such  jurisdictions  in the United
States as any  Investor  reasonably  requests,  (ii)  prepare  and file in those
jurisdictions,   such  amendments  (including  post-effective   amendments)  and
supplements  to such  registrations  and  qualifications  as may be necessary to
maintain the effectiveness  thereof during the Registration  Period,  (iii) take
such other  actions as may be  necessary  to  maintain  such  registrations  and
qualifications in effect at all times during the Registration  Period,  and (iv)
take all  other  actions  reasonably  necessary  or  advisable  to  qualify  the
Registrable Securities for sale in such jurisdictions;  provided,  however, that
the  Company  shall not be required in  connection  therewith  or as a condition
thereto to (w) make any change to its certificate of  incorporation  or by-laws,
(x) qualify to do business in any  jurisdiction  where it would not otherwise be
required to qualify but for this  Section  3(d),  (y) subject  itself to general
taxation in any such  jurisdiction,  or (z) file a general consent to service of
process  in any such  jurisdiction.  The  Company  shall  promptly  notify  each
Investor who holds  Registrable  Securities of the receipt by the Company of any
notification with respect to the suspension of the registration or qualification
of any of the Registrable Securities for sale under the securities or "blue sky"
laws of any jurisdiction in the United States or its receipt of actual notice of
the initiation or threat of any proceeding for such purpose.

            e. As promptly as practicable  after becoming aware of such event or
development,  the Company shall notify each Investor in writing of the happening
of any event as a result  of which the  prospectus  included  in a  Registration
Statement, as then in effect, includes an untrue statement of a material fact or
omission to state a material fact required to be stated  therein or necessary to
make the statements therein, in light of the circumstances under which they were
made,  not  misleading  (provided that in no event shall such notice contain any
material, nonpublic information), and promptly prepare a supplement or amendment
to such Registration Statement to correct such untrue statement or omission, and
deliver ten (10) copies of such  supplement or amendment to each  Investor.  The
Company  shall  also  promptly  notify  each  Investor  in  writing  (i)  when a
prospectus or any  prospectus  supplement or  post-effective  amendment has been
filed,  and when a Registration  Statement or any  post-effective  amendment has
become effective  (notification of such effectiveness shall be delivered to each
Investor  by  facsimile  on the  same  day of such  effectiveness),  (ii) of any
request by the SEC for amendments or supplements to a Registration  Statement or

                                       4
<PAGE>

related prospectus or related information, and (iii) of the Company's reasonable
determination that a post-effective  amendment to a Registration Statement would
be appropriate.

            f. The Company shall use its best efforts to prevent the issuance of
any stop order or other suspension of effectiveness of a Registration Statement,
or the suspension of the qualification of any of the Registrable  Securities for
sale in any  jurisdiction  within the United  States of America  and, if such an
order or  suspension  is  issued,  to obtain  the  withdrawal  of such  order or
suspension at the earliest possible moment and to notify each Investor who holds
Registrable  Securities  being  sold  of the  issuance  of  such  order  and the
resolution  thereof or its receipt of actual notice of the  initiation or threat
of any proceeding for such purpose.

            g. At the  reasonable  request of any  Investor,  the Company  shall
furnish to such Investor,  on the date of the  effectiveness of the Registration
Statement  and  thereafter  from time to time on such dates as an  Investor  may
reasonably request (i) a letter, dated such date, from the Company's independent
certified  public  accountants in form and substance as is customarily  given by
independent  certified  public  accountants to  underwriters  in an underwritten
public  offering,  and  (ii) an  opinion,  dated  as of such  date,  of  counsel
representing the Company for purposes of such Registration  Statement,  in form,
scope and substance as is customarily given in an underwritten  public offering,
addressed to the Investors.

            h. The  Company  shall  make  available  for  inspection  by (i) any
Investor and (ii) one (1) firm of  accountants  or other agents  retained by the
Investors  (collectively,  the "INSPECTORS")  all pertinent  financial and other
records,  and  pertinent  corporate  documents  and  properties  of the  Company
(collectively,  the "RECORDS"),  as shall be reasonably deemed necessary by each
Inspector,  and cause the Company's officers,  directors and employees to supply
all information which any Inspector may reasonably request;  provided,  however,
that each Inspector  shall agree,  and each Investor  hereby agrees,  to hold in
strict  confidence and shall not make any disclosure  (except to an Investor) or
use any Record or other information  which the Company  determines in good faith
to be confidential,  and of which  determination the Inspectors are so notified,
unless (a) the  disclosure  of such  Records is  necessary to avoid or correct a
misstatement or omission in any Registration  Statement or is otherwise required
under the 1933 Act,  (b) the  release of such  Records is ordered  pursuant to a
final,  non-appealable  subpoena  or order  from a court or  government  body of
competent  jurisdiction,  or (c) the  information  in such Records has been made
generally  available to the public other than by disclosure in violation of this
or any other  agreement of which the Inspector  and the Investor has  knowledge.
Each  Investor  agrees that it shall,  upon  learning  that  disclosure  of such
Records  is  sought  in  or  by  a  court  or  governmental  body  of  competent
jurisdiction or through other means, give prompt notice to the Company and allow
the  Company,  at its  expense,  to  undertake  appropriate  action  to  prevent
disclosure  of,  or to  obtain  a  protective  order  for,  the  Records  deemed
confidential.

            i. The Company shall hold in confidence  and not make any disclosure
of  information  concerning  an  Investor  provided  to the  Company  unless (i)
disclosure  of such  information  is  necessary  to comply with federal or state
securities  laws, (ii) the disclosure of such  information is necessary to avoid
or correct a misstatement or omission in any Registration  Statement,  (iii) the

                                       5
<PAGE>

release of such  information  is ordered  pursuant to a subpoena or other final,
non-appealable   order  from  a  court  or   governmental   body  of   competent
jurisdiction,  or (iv) such information has been made generally available to the
public other than by  disclosure  in  violation  of this  Agreement or any other
agreement.  The Company agrees that it shall,  upon learning that  disclosure of
such  information  concerning  an  Investor  is  sought  in  or  by a  court  or
governmental body of competent  jurisdiction or through other means, give prompt
written  notice to such  Investor  and allow such  Investor,  at the  Investor's
expense, to undertake  appropriate action to prevent disclosure of, or to obtain
a protective order for, such information.

<PAGE>

            j. The Company  shall use its best  efforts  either to cause all the
Registrable  Securities covered by a Registration  Statement (i) to be listed on
each securities  exchange on which securities of the same class or series issued
by the Company  are then  listed,  if any,  if the  listing of such  Registrable
Securities  is then  permitted  under  the  rules of such  exchange  or (ii) the
inclusion for quotation on the National Association of Securities Dealers,  Inc.
OTC Bulletin Board for such  Registrable  Securities.  The Company shall pay all
fees and  expenses in  connection  with  satisfying  its  obligation  under this
Section 3(j).

            k.  The  Company  shall   cooperate  with  the  Investors  who  hold
Registrable  Securities  being  offered  and,  to  the  extent  applicable,   to
facilitate the timely  preparation and delivery of certificates (not bearing any
restrictive  legend)  representing  the  Registrable  Securities  to be  offered
pursuant to a Registration  Statement and enable such certificates to be in such
denominations  or amounts,  as the case may be, as the Investors may  reasonably
request and registered in such names as the Investors may request.

            l. The Company  shall use its best efforts to cause the  Registrable
Securities  covered by the  applicable  Registration  Statement to be registered
with or approved by such other  governmental  agencies or  authorities as may be
necessary to consummate the disposition of such Registrable Securities.

            m. The  Company  shall  make  generally  available  to its  security
holders  as soon as  practical,  but not later than  ninety  (90) days after the
close of the period covered  thereby,  an earnings  statement (in form complying
with the provisions of Rule 158 under the 1933 Act) covering a twelve (12) month
period  beginning not later than the first day of the Company's  fiscal  quarter
next following the effective date of the Registration Statement.

            n. The Company  shall  otherwise use its best efforts to comply with
all  applicable  rules  and  regulations  of the  SEC  in  connection  with  any
registration hereunder.

            o. Within two (2) business days after a Registration Statement which
covers Registrable Securities is ordered effective by the SEC, the Company shall
deliver,  and shall  cause legal  counsel  for the  Company to  deliver,  to the
transfer  agent for such  Registrable  Securities  (with copies to the Investors
whose  Registrable  Securities  are  included  in such  Registration  Statement)
confirmation that such Registration Statement has been declared effective by the
SEC in the form attached hereto as EXHIBIT A.

                                       6
<PAGE>

            p. The Company shall take all other reasonable  actions necessary to
expedite and facilitate  disposition by the Investors of Registrable  Securities
pursuant to a Registration Statement.

      4.    OBLIGATIONS OF THE INVESTORS.
            ----------------------------

            Each  Investor  agrees  that,  upon  receipt of any notice  from the
Company of the  happening of any event of the kind  described in Section 3(f) or
the  first  sentence  of  3(e),  such  Investor  will  immediately   discontinue
disposition of Registrable Securities pursuant to any Registration  Statement(s)
covering such Registrable Securities until such Investor's receipt of the copies
of the  supplemented  or amended  prospectus  contemplated  by  Section  3(e) or
receipt of notice that no supplement  or amendment is required.  Notwithstanding
anything to the contrary,  the Company shall cause its transfer agent to deliver
unlegended  certificates  for  shares  of  Common  Stock to a  transferee  of an
Investor in accordance  with the terms of the Securities  Purchase  Agreement in
connection  with any sale of  Registrable  Securities  with  respect to which an
Investor has entered into a contract for sale prior to the Investor's receipt of
a notice from the Company of the happening of any event of the kind described in
Section  3(f) or the first  sentence of 3(e) and for which the  Investor has not
yet settled.

      5.    EXPENSES OF REGISTRATION.
            ------------------------

            All expenses incurred in connection with  registrations,  filings or
qualifications pursuant to Sections 2 and 3, including,  without limitation, all
registration,  listing and qualifications fees,  printers,  legal and accounting
fees shall be paid by the Company.

      6.    INDEMNIFICATION.
            ---------------

            With  respect to  Registrable  Securities  which are  included  in a
Registration Statement under this Agreement:

            a. To the fullest  extent  permitted by law, the Company  will,  and
hereby does, indemnify,  hold harmless and defend each Investor,  the directors,
officers, partners,  employees, agents,  representatives of, and each Person, if
any, who  controls  any Investor  within the meaning of the 1933 Act or the 1934
Act (each,  an  "INDEMNIFIED  PERSON"),  against  any losses,  claims,  damages,
liabilities,  judgments, fines, penalties, charges, costs, reasonable attorneys'
fees,  amounts paid in settlement or expenses,  joint or several  (collectively,
"CLAIMS") incurred in investigating,  preparing or defending any action,  claim,
suit, inquiry,  proceeding,  investigation or appeal taken from the foregoing by
or before any court or governmental,  administrative or other regulatory agency,
body or the SEC,  whether  pending or threatened,  whether or not an indemnified
party is or may be a party thereto ("INDEMNIFIED DAMAGES"), to which any of them
may become subject  insofar as such Claims (or actions or  proceedings,  whether
commenced or threatened, in respect thereof) arise out of or are based upon: (i)
any  untrue  statement  or alleged  untrue  statement  of a  material  fact in a
Registration Statement or any post-effective  amendment thereto or in any filing
made in connection with the  qualification  of the offering under the securities
or other "blue sky" laws of any jurisdiction in which Registrable Securities are

                                       7
<PAGE>

offered  ("BLUE SKY  FILING"),  or the  omission or alleged  omission to state a
material fact required to be stated  therein or necessary to make the statements
therein not misleading; (ii) any untrue statement or alleged untrue statement of
a material fact contained in any final  prospectus (as amended or  supplemented,
if the Company files any amendment  thereof or supplement  thereto with the SEC)
or the omission or alleged omission to state therein any material fact necessary
to make the statements made therein,  in light of the circumstances  under which
the  statements  therein were made,  not  misleading;  or (iii) any violation or
alleged  violation  by the Company of the 1933 Act, the 1934 Act, any other law,
including,  without  limitation,  any  state  securities  law,  or any  rule  or
regulation  thereunder  relating  to  the  offer  or  sale  of  the  Registrable
Securities  pursuant to a  Registration  Statement (the matters in the foregoing
clauses (i) through (iii) being, collectively,  "VIOLATIONS"). The Company shall
reimburse  the  Investors  and each such  controlling  person  promptly  as such
expenses  are  incurred  and  are  due  and  payable,  for  any  legal  fees  or
disbursements or other reasonable  expenses  incurred by them in connection with
investigating  or  defending  any such  Claim.  Notwithstanding  anything to the
contrary  contained  herein,  the  indemnification  agreement  contained in this
Section 6(a):  (x) shall not apply to a Claim by an  Indemnified  Person arising
out of or based upon a Violation which occurs in reliance upon and in conformity
with information  furnished in writing to the Company by such Indemnified Person
expressly  for  use in  connection  with  the  preparation  of the  Registration
Statement or any such amendment thereof or supplement thereto;  (y) shall not be
available  to the extent  such Claim is based on a failure  of the  Investor  to
deliver  or to  cause to be  delivered  the  prospectus  made  available  by the
Company, if such prospectus was timely made available by the Company pursuant to
Section 3(e); and (z) shall not apply to amounts paid in settlement of any Claim
if such settlement is effected without the prior written consent of the Company,
which consent shall not be unreasonably withheld. Such indemnity shall remain in
full force and effect  regardless of any  investigation  made by or on behalf of
the  Indemnified  Person  and shall  survive  the  transfer  of the  Registrable
Securities by the Investors pursuant to Section 9.

            b. In connection with a Registration Statement, each Investor agrees
to severally and not jointly  indemnify,  hold harmless and defend,  to the same
extent and in the same manner as is set forth in Section 6(a), the Company, each
of its directors, each of its officers,  employees,  representatives,  or agents
and each Person, if any, who controls the Company within the meaning of the 1933
Act or the  1934  Act  (each  an  "INDEMNIFIED  Party"),  against  any  Claim or
Indemnified Damages to which any of them may become subject, under the 1933 Act,
the 1934 Act or otherwise,  insofar as such Claim or  Indemnified  Damages arise
out of or is based upon any Violation,  in each case to the extent,  and only to
the extent,  that such Violation  occurs in reliance upon and in conformity with
written information  furnished to the Company by such Investor expressly for use
in connection with such  Registration  Statement;  and, subject to Section 6(d),
such Investor will reimburse any legal or other expenses  reasonably incurred by
them in connection  with  investigating  or defending any such Claim;  provided,
however,  that the  indemnity  agreement  contained in this Section 6(b) and the
agreement with respect to contribution contained in Section 7 shall not apply to
amounts paid in settlement of any Claim if such  settlement is effected  without
the  prior  written  consent  of  such  Investor,  which  consent  shall  not be
unreasonably withheld;  provided,  further,  however, that the Investor shall be
liable under this  Section  6(b) for only that amount of a Claim or  Indemnified
Damages as does not exceed the net proceeds to such  Investor as a result of the
sale of Registrable  Securities  pursuant to such Registration  Statement.  Such

                                       8
<PAGE>

indemnity shall remain in full force and effect  regardless of any investigation
made by or on behalf of such Indemnified Party and shall survive the transfer of
the   Registrable   Securities   by  the   Investors   pursuant  to  Section  9.
Notwithstanding  anything to the contrary contained herein, the  indemnification
agreement  contained in this Section 6(b) with respect to any  prospectus  shall
not inure to the benefit of any  Indemnified  Party if the untrue  statement  or
omission of material fact contained in the prospectus was corrected and such new
prospectus  was delivered to each Investor  prior to such  Investor's use of the
prospectus to which the Claim relates.

            c. Promptly  after receipt by an  Indemnified  Person or Indemnified
Party  under  this  Section  6 of notice of the  commencement  of any  action or
proceeding  (including any governmental action or proceeding) involving a Claim,
such  Indemnified  Person or  Indemnified  Party  shall,  if a Claim in  respect
thereof is to be made  against  any  indemnifying  party  under this  Section 6,
deliver to the indemnifying party a written notice of the commencement  thereof,
and the  indemnifying  party shall have the right to participate in, and, to the
extent the indemnifying  party so desires,  jointly with any other  indemnifying
party similarly  noticed,  to assume control of the defense thereof with counsel
mutually  satisfactory to the indemnifying  party and the Indemnified  Person or
the  Indemnified  Party,  as  the  case  may  be;  provided,  however,  that  an
Indemnified  Person or Indemnified  Party shall have the right to retain its own
counsel  with the fees and  expenses  of not more than one (1)  counsel for such
Indemnified  Person or Indemnified  Party to be paid by the indemnifying  party,
if, in the reasonable opinion of counsel retained by the indemnifying party, the
representation  by such counsel of the Indemnified  Person or Indemnified  Party
and the  indemnifying  party would be  inappropriate  due to actual or potential
differing interests between such Indemnified Person or Indemnified Party and any
other party  represented by such counsel in such  proceeding.  In the case of an
Indemnified  Person,  legal  counsel  referred to in the  immediately  preceding
sentence  shall be selected by the  Investors  holding a majority in interest of
the Registrable  Securities included in the Registration  Statement to which the
Claim relates. The Indemnified Party or Indemnified Person shall cooperate fully
with the indemnifying party in connection with any negotiation or defense of any
such  action  or  claim by the  indemnifying  party  and  shall  furnish  to the
indemnifying party all information reasonably available to the Indemnified Party
or Indemnified  Person which relates to such action or claim.  The  indemnifying
party shall keep the Indemnified  Party or Indemnified  Person fully apprised at
all times as to the status of the defense or any  settlement  negotiations  with
respect thereto. No indemnifying party shall be liable for any settlement of any
action,  claim  or  proceeding  effected  without  its  prior  written  consent;
provided,  however, that the indemnifying party shall not unreasonably withhold,
delay or condition its consent.  No indemnifying party shall,  without the prior
written consent of the Indemnified Party or Indemnified Person, consent to entry
of any judgment or enter into any settlement or other  compromise which does not
include as an unconditional term thereof the giving by the claimant or plaintiff
to such Indemnified Party or Indemnified  Person of a release from all liability
in respect to such claim or litigation.  Following  indemnification  as provided
for hereunder,  the indemnifying  party shall be subrogated to all rights of the
Indemnified Party or Indemnified Person with respect to all third parties, firms
or corporations  relating to the matter for which indemnification has been made.
The  failure  to  deliver  written  notice to the  indemnifying  party  within a
reasonable  time of the  commencement  of any such action shall not relieve such
indemnifying  party of any liability to the  Indemnified  Person or  Indemnified
Party under this Section 6, except to the extent that the indemnifying  party is
prejudiced in its ability to defend such action.

                                       9
<PAGE>

            d. The  indemnification  required by this Section 6 shall be made by
periodic  payments of the amount thereof during the course of the  investigation
or defense, as and when bills are received or Indemnified Damages are incurred.

            e. The indemnity agreements contained herein shall be in addition to
(i) any cause of action or similar right of the Indemnified Party or Indemnified
Person against the  indemnifying  party or others,  and (ii) any liabilities the
indemnifying party may be subject to pursuant to the law.

      7.    CONTRIBUTION.
            ------------

            To the  extent  any  indemnification  by an  indemnifying  party  is
prohibited or limited by law, the indemnifying  party agrees to make the maximum
contribution  with respect to any amounts for which it would otherwise be liable
under Section 6 to the fullest extent permitted by law; provided, however, that:
(i) no seller of Registrable  Securities guilty of fraudulent  misrepresentation
(within  the  meaning of Section  11(f) of the 1933 Act)  shall be  entitled  to
contribution  from any seller of  Registrable  Securities  who was not guilty of
fraudulent misrepresentation; and (ii) contribution by any seller of Registrable
Securities shall be limited in amount to the net amount of proceeds  received by
such seller from the sale of such Registrable Securities.

      8.    REPORTS UNDER THE 1934 ACT.
            --------------------------

            With a view to making  available  to the  Investors  the benefits of
Rule 144 promulgated under the 1933 Act or any similar rule or regulation of the
SEC that may at any time permit the Investors to sell  securities of the Company
to the public without registration ("RULE 144") the Company agrees to:

            a.    make and keep public information  available,  as those terms
are understood and defined in Rule 144;

            b.  file  with the SEC in a timely  manner  all  reports  and  other
documents required of the Company under the 1933 Act and the 1934 Act so long as
the Company  remains  subject to such  requirements  (it being  understood  that
nothing herein shall limit the Company's  obligations  under Section 4(c) of the
Securities  Purchase  Agreement)  and the  filing  of  such  reports  and  other
documents as are required by the applicable provisions of Rule 144; and

            c.  furnish  to  each   Investor  so  long  as  such  Investor  owns
Registrable  Securities,  promptly upon request,  (i) a written statement by the
Company that it has complied  with the reporting  requirements  of Rule 144, the
1933 Act and the 1934 Act,  (ii) a copy of the most recent  annual or  quarterly
report of the  Company  and such other  reports  and  documents  so filed by the

                                       10
<PAGE>

Company,  and (iii) such other  information  as may be  reasonably  requested to
permit  the  Investors  to sell such  securities  pursuant  to Rule 144  without
registration.

      9.    ASSIGNMENT OF REGISTRATION RIGHTS.
            ---------------------------------

            The rights under this Agreement shall be automatically assignable by
the Investors to any transferee of all or any portion of Registrable  Securities
if: (i) the Investor agrees in writing with the transferee or assignee to assign
such rights,  and a copy of such  agreement is furnished to the Company within a
reasonable time after such assignment;  (ii) the Company is, within a reasonable
time after such transfer or assignment, furnished with written notice of (a) the
name and address of such  transferee or assignee,  and (b) the  securities  with
respect to which such  registration  rights are being  transferred  or assigned;
(iii) at or before the time the Company receives the written notice contemplated
by clause (ii) of this  sentence the  transferee  or assignee  agrees in writing
with the Company to be bound by all of the provisions contained herein; and (iv)
such  transfer   shall  have  been  made  in  accordance   with  the  applicable
requirements of the Securities Agreement.

      10.   AMENDMENT OF REGISTRATION RIGHTS.
            --------------------------------

            Provisions  of this  Agreement  may be  amended  and the  observance
thereof may be waived (either  generally or in a particular  instance and either
retroactively  or  prospectively),  only with the written consent of the Company
and  Investors  who then  hold at  least  two-thirds  (2/3)  of the  Registrable
Securities.  Any amendment or waiver effected in accordance with this Section 10
shall be binding upon each Investor and the Company.  No such amendment shall be
effective  to the extent that it applies to fewer than all of the holders of the
Registrable Securities.  No consideration shall be offered or paid to any Person
to amend or consent to a waiver or  modification of any provision of any of this
Agreement unless the same consideration also is offered to all of the parties to
this Agreement.

      11.   MISCELLANEOUS.
            -------------

            a. A Person  is  deemed  to be a holder  of  Registrable  Securities
whenever  such  Person  owns or is  deemed  to own of  record  such  Registrable
Securities.  If  the  Company  receives  conflicting  instructions,  notices  or
elections  from two (2) or more  Persons  with  respect to the same  Registrable
Securities,  the  Company  shall act upon the basis of  instructions,  notice or
election received from the registered owner of such Registrable Securities.

            b. Any notices,  consents,  waivers or other communications required
or  permitted to be given under the terms of this  Agreement  must be in writing
and will be deemed to have been  delivered:  (i) upon  receipt,  when  delivered
personally;  (ii) upon receipt, when sent by facsimile (provided confirmation of
transmission is mechanically or electronically generated and kept on file by the
sending  party);  or (iii) one (1) business day after  deposit with a nationally
recognized  overnight  delivery service,  in each case properly addressed to the
party to  receive  the  same.  The  addresses  and  facsimile  numbers  for such
communications shall be:

                                       11
<PAGE>

If to the Company, to:      Nexland, Inc.
                            1101 Brickell Avenue
                            North Tower, 2nd Floor
                            Miami, Florida 33131
                            Attention:  Gregory S. Levine
                                        President
                            Telephone: (305) 358-7771
                            Facsimile: (305) 358-3151

With a copy to:             Kirkpatrick & Lockhart LLP
                            201 South Biscayne Blvd. - Suite 2000
                            Miami, Fl 33131
                            Attention:  Clayton E. Parker, Esq.
                            Telephone: (305) 539-3300
                            Facsimile: (305) 358-7095

If to an  Investor,  to its  address  and  facsimile  number on the  Schedule of
Investors attached hereto, with copies to such Investor's representatives as set
forth on the  Schedule of Investors or to such other  address  and/or  facsimile
number and/or to the  attention of such other person as the recipient  party has
specified by written notice given to each other party five (5) days prior to the
effectiveness of such change.  Written  confirmation of receipt (A) given by the
recipient  of  such  notice,  consent,   waiver  or  other  communication,   (B)
mechanically  or  electronically  generated  by the sender's  facsimile  machine
containing the time, date,  recipient facsimile number and an image of the first
page of such  transmission  or (C)  provided by a courier or  overnight  courier
service shall be rebuttable  evidence of personal service,  receipt by facsimile
or receipt from a nationally recognized overnight delivery service in accordance
with clause (i), (ii) or (iii) above, respectively.

            c.  Failure of any party to exercise  any right or remedy under this
Agreement or otherwise,  or delay by a party in exercising such right or remedy,
shall not operate as a waiver thereof.

            d. The  corporate  laws of the State of  Delaware  shall  govern all
issues  concerning  the relative  rights of the Company and the Investors as its
stockholders.  All  other  questions  concerning  the  construction,   validity,
enforcement  and  interpretation  of this  Agreement  shall be  governed  by the
internal laws of the State of New York,  without  giving effect to any choice of
law or conflict of law  provision  or rule  (whether of the State of New York or
any other  jurisdiction)  that would  cause the  application  of the laws of any
jurisdiction  other than the State of New York.  Each party  hereby  irrevocably
submits  to the  non-exclusive  jurisdiction  of the  state and  federal  courts
sitting in the City of New York,  Borough of Manhattan,  for the adjudication of
any  dispute  hereunder  or in  connection  herewith  or  with  any  transaction
contemplated  hereby or discussed herein,  and hereby  irrevocably  waives,  and
agrees not to assert in any suit, action or proceeding, any claim that it is not
personally subject to the jurisdiction of any such court, that such suit, action
or  proceeding  is  brought in an  inconvenient  forum or that the venue of such
suit,  action or proceeding is improper.  Each party hereby  irrevocably  waives

                                       12
<PAGE>

personal  service of process and  consents to process  being  served in any such
suit,  action or  proceeding  by  mailing a copy  thereof  to such  party at the
address for such notices to it under this Agreement and agrees that such service
shall  constitute  good and  sufficient  service of process and notice  thereof.
Nothing  contained herein shall be deemed to limit in any way any right to serve
process in any manner permitted by law. If any provision of this Agreement shall
be  invalid  or   unenforceable   in  any   jurisdiction,   such  invalidity  or
unenforceability  shall  not  affect  the  validity  or  enforceability  of  the
remainder  of  this   Agreement  in  that   jurisdiction   or  the  validity  or
enforceability  of any  provision of this  Agreement in any other  jurisdiction.
EACH PARTY HEREBY  IRREVOCABLY  WAIVES ANY RIGHT IT MAY HAVE,  AND AGREES NOT TO
REQUEST,  A JURY  TRIAL FOR THE  ADJUDICATION  OF ANY  DISPUTE  HEREUNDER  OR IN
CONNECTION  HEREWITH  OR  ARISING  OUT OF  THIS  AGREEMENT  OR  ANY  TRANSACTION
CONTEMPLATED HEREBY.

            e. This Agreement,  the Securities Purchase Agreement and the Escrow
Agreement  executed  with First Union  National  Bank (the  "ESCROW  AGREEMENT")
constitute  the entire  agreement  among the parties  hereto with respect to the
subject  matter  hereof  and  thereof.  There  are  no  restrictions,  promises,
warranties or undertakings, other than those set forth or referred to herein and
therein.  This  Agreement,  the  Securities  Purchase  Agreement  and the Escrow
Agreement  supersede all prior agreements and  understandings  among the parties
hereto with respect to the subject matter hereof and thereof.

            f. Subject to the  requirements  of Section 9, this Agreement  shall
inure to the benefit of and be binding upon the permitted successors and assigns
of each of the parties hereto.

            g.    The  headings  in  this  Agreement  are for  convenience  of
reference only and shall not limit or otherwise affect the meaning hereof.

            h. This Agreement may be executed in identical counterparts, each of
which shall be deemed an original but all of which shall  constitute one and the
same agreement.  This Agreement,  once executed by a party,  may be delivered to
the other party hereto by  facsimile  transmission  of a copy of this  Agreement
bearing the signature of the party so delivering this Agreement.

            i.  Each  party  shall  do and  perform,  or  cause  to be done  and
performed,  all such further acts and things,  and shall execute and deliver all
such other  agreements,  certificates,  instruments and documents,  as the other
party may reasonably request in order to carry out the intent and accomplish the
purposes of this Agreement and the consummation of the transactions contemplated
hereby.

            j. All consents and other determinations to be made by the Investors
pursuant to this Agreement  shall be made,  unless  otherwise  specified in this
Agreement, by Investors holding a majority of the Registrable Securities.

                                       13
<PAGE>

            k. The  language  used in this  Agreement  will be  deemed to be the
language  chosen by the parties to express  their mutual  intent and no rules of
strict construction will be applied against any party.

            l. This  Agreement is intended for the benefit of the parties hereto
and  their  respective  permitted  successors  and  assigns,  and is not for the
benefit of, nor may any provision hereof be enforced by, any other Person.

                    [REMAINDER OF PAGE INTIONALLY LEFT BLANK]

                                       14
<PAGE>

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

                                    NEXLAND, INC.

                                    By:   /s/ Gregory S. Levine
                                          -----------------------------------
                                          Name: Gregory S. Levine
                                          Title:  President

                                    By:
                                          -----------------------------------
                                          Name:
                                          Title:

                                       15
<PAGE>

                              SCHEDULE OF INVESTORS

                       INVESTOR ADDRESS      INVESTOR'S REPRESENTATIVES' ADDRESS
   INVESTOR NAME     AND FACSIMILE NUMBER           AND FACSIMILE NUMBER
------------------ ----------------------- -------------------------------------

                                       16
<PAGE>

                                                                       EXHIBIT A

                         FORM OF NOTICE OF EFFECTIVENESS
                            OF REGISTRATION STATEMENT

[TRANSFER AGENT]
ATTN:
     -------------------

            Re:   NEXLAND, INCORPORATED

Ladies and Gentlemen:

      We are  counsel to  Nexland,  Incorporated,  a Delaware  corporation  (the
"COMPANY"),  and have  represented  the Company in connection  with that certain
Securities  Purchase  Agreement (the "PURCHASE  AGREEMENT")  entered into by and
among  the  Company  and  the  investors   named  therein   (collectively,   the
"INVESTORS") pursuant to which the Company issued to the Investors shares of its
Common Stock,  par value $0.01 per share (the "COMMON  STOCK").  Pursuant to the
Purchase  Agreement,  the Company  also has entered into a  Registration  Rights
Agreement with the Investors (the "REGISTRATION  RIGHTS AGREEMENT")  pursuant to
which the Company  agreed,  among other  things,  to  register  the  Registrable
Securities  (as  defined  in  the  Registration   Rights  Agreement)  under  the
Securities  Act of 1933,  as amended (the "1933 ACT").  In  connection  with the
Company's  obligations under the Registration Rights Agreement,  on ____________
____,  the Company filed a  Registration  Statement on Form  ________  (File No.
333-_____________)  (the  "REGISTRATION  STATEMENT")  with  the  Securities  and
Exchange  Commission (the "SEC") relating to the  Registrable  Securities  which
names each of the Investors as a selling stockholder there under.

      In connection with the foregoing, we advise you that a member of the SEC's
staff has advised us by  telephone  that the SEC has entered an order  declaring
the  Registration  Statement  effective  under  the 1933 Act at  [ENTER  TIME OF
EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS] and we have no knowledge,  after
telephonic  inquiry  of a  member  of the  SEC's  staff,  that  any  stop  order
suspending its  effectiveness  has been issued or that any  proceedings for that
purpose  are  pending  before,  or  threatened  by, the SEC and the  Registrable
Securities  are  available  for  resale  under  the  1933  Act  pursuant  to the
Registration Statement.

                                    Very truly yours,

                                    [ISSUER'S COUNSEL]

                                    By:
                                       ---------------------------------

cc:   [LIST NAMES OF INVESTORS]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00025-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00025-of-00352.parquet"}]]