Document:

EXHIBIT 4.2

                          SECURITIES PURCHASE AGREEMENT

                                 BY AND BETWEEN

                                  NUCLEUS, INC.

                                     AND THE

                                   PURCHASERS

                                  NAMED HEREIN

                                  JUNE 2, 1999

THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND
EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR
THE SECURITIES COMMISSION OF ANY STATE UNDER ANY STATE SECURITIES LAW. THEY ARE
BEING OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER REGULATION D
("REGULATION D") PROMULGATED UNDER THE ACT. THE SECURITIES MAY NOT BE OFFERED,
SOLD OR OTHERWISE TRANSFERRED UNLESS THE SECURITIES ARE REGISTERED UNDER THE ACT
AND APPLICABLE STATE SECURITIES LAWS, OR SUCH OFFERS, SALES AND TRANSFERS ARE
MADE PURSUANT TO AVAILABLE EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF
THOSE LAWS.

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                          SECURITIES PURCHASE AGREEMENT

     THIS SECURITIES PURCHASE AGREEMENT (the "Agreement" or the "Purchase
Agreement") is entered into as of June 2, 1999, by and between NUCLEUS, INC., a
Nevada corporation (the "Company"), and each of the undersigned (each a
"Purchaser" and collectively the "Purchasers").

                                R E C I T A L S:

     WHEREAS, the Company is offering (the "Offering") for sale in a private
placement pursuant to Section 4(2) of the Securities Act of 1933, as amended
(the "Act"), and Regulation D thereunder ("Regulation D"), shares of the
Company's Common Stock, par value $.001 per share (the "Common Stock"); and

     WHEREAS, each Purchaser wishes to subscribe for the number of shares of
Common Stock and warrants to purchase shares of Common Stock set forth opposite
each Purchaser's name on Schedule 1.1 hereto in accordance with the terms and
conditions of this Agreement.

     NOW, THEREFORE, for good and valuable consideration, the receipt of
which is hereby acknowledged, the parties hereto hereby agree as follows:

     1.   SUBSCRIPTION AND CLOSING

          1.1  PURCHASE. Subject to the terms and conditions of this
Agreement, the Purchasers hereby agree to purchase from the Company, and the
Company hereby agrees to issue and sell to the Purchasers, _______ shares of
Common Stock (the "Shares") for $____ per share, or an aggregate purchase price
of $_________. As additional consideration for the purchase of the Shares, the
Company grants to the Purchasers warrants to purchase _______ shares of Common
Stock (the "Warrants") upon the terms set forth in the form of warrant attached
as Exhibit A, which terms are incorporated herein by reference and made a part
hereof. The number of Shares and Warrants to be issued or granted to each
Purchaser, and the aggregate purchase price therefor to be paid by each
Purchaser, shall be as indicated on Schedule 1.1 hereto.

          1.2  PAYMENT OF PURCHASE PRICE AND DELIVERY OF SHARES AND
WARRANTS. Payment of the purchase price for the Shares by the Purchaser, and
delivery of the Shares and Warrants by the Company (the "Closing"), shall occur
upon the execution hereof or at such other date, time and place as the parties
shall mutually agree in writing. The purchase price for the Shares is payable by
wire transfer of immediately available funds. Certificates for the Shares and
Warrants will be issued in the name of Purchasers.

          1.3  MULTIPLE PURCHASES.  This Agreement may be executed by one or
more Purchasers. In the event this Agreement pertains to a purchase by a single
Purchaser, all references to the Purchasers or "each Purchaser" shall be deemed
to refer to such single Purchaser.

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     2.   REPRESENTATIONS, WARRANTIES AND COVENANTS OF COMPANY

     The Company represents and warrants to and covenants with the
Purchasers as follows:

          2.1  ORGANIZATION, GOOD STANDING, AND QUALIFICATION.

               (a)  The Company is a corporation duly organized,
          validly existing and in good standing under the laws of the State of
          Nevada and has all requisite corporate power and authority to carry on
          its business as now conducted and as proposed to be conducted. The
          Company is duly qualified to transact business and is in good standing
          in each jurisdiction in which the failure to so qualify would have a
          material adverse effect on the business or properties of the Company
          and its subsidiaries taken as a whole.

               (b) Each subsidiary of the Company is a corporation
          duly organized, validly existing and in good standing under the laws
          of its state of incorporation and has all requisite corporate power
          and authority to carry on its business as now conducted and as
          proposed to be conducted. Each such subsidiary is duly qualified to
          transact business and is in good standing in each jurisdiction in
          which the failure to so qualify would have a material adverse effect
          on the business or properties of such subsidiary.

          2.2  AUTHORIZATION. All corporate action on the part of the
Company, its officers, directors and shareholders necessary for the
authorization, execution and delivery of this Agreement, and the performance of
all obligations of the Company hereunder and the authorization, issuance and
delivery of the Shares, the Warrants and shares of Common Stock issuable upon
exercise of the Warrants (the "Warrant Shares," and together with the Shares and
Warrants, the "Securities"), has been taken.

          2.3  AGREEMENT. This Agreement has been duly executed and
delivered by the Company and, assuming due authorization, execution and delivery
of this Agreement by the Purchaser, is a valid and binding obligation of the
Company, enforceable against the Company in accordance with its terms.

          2.4  VALID ISSUANCE OF SHARES. When issued and delivered in
accordance with the terms of this Agreement, the Shares will be duly and validly
issued and outstanding, fully paid and non-assessable, free and clear of any
claims or pre-emptive rights, and (assuming the representations and warranties
of the Purchaser herein are true and correct in all material respects) will have
been issued in compliance with all applicable federal and state securities law.

          2.5  SEC REPORTS. The Company has timely filed all forms,
reports and documents with the Securities and Exchange Commission (the
"Commission") since January 1, 1998, required to be filed by it under the
Securities Exchange Act of 1934, as amended (the "1934 Act"), through the date
hereof (collectively, the "SEC Reports"). Such SEC Reports, at the time filed,
complied as to form in all material respects with the requirements of the 1934
Act.

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          2.6  CURRENT PUBLIC INFORMATION. The Company's Common Stock is
registered under Section 12(b) or 12(g) of the 1934 Act. The Company has
delivered to the Purchaser copies of the Company's most recent annual report on
Form 10-K/SB (the "Annual Report"), each Quarterly Report on Form 10-Q/SB since
the date of its Annual Report, the most recent proxy statement for its Annual
Meeting of Shareholders, and each interim report on Form 8-K filed by the
Company since the date of its Annual Report.

          2.7  NO CONFLICTS. The execution and delivery of this Agreement
and the consummation of the transactions contemplated hereby does not and will
not conflict with or result in a breach by the Company of any of the terms or
provisions of, or constitute a default under, the Certificate of Incorporation
or bylaws of the Company, or any indenture, mortgage, deed of trust or other
agreement or instrument to which the Company is a party or by which it or any of
its properties or assets are bound, or any existing applicable decree, judgment
or order of any court, federal or state regulatory body, administrative agency
or other governmental body having jurisdiction over the Company or any of its
properties or assets.

          2.8  COMPLIANCE WITH LAWS. As of the date hereof, the conduct
of the business of the Company complies in all material respects with all
statutes, laws, regulations, ordinances, rules, judgments, orders or decrees
applicable thereto, except for non -compliance which would not have a material
adverse effect on the business, properties, condition (financial or otherwise),
results of operations or prospects of the Company (a "Material Adverse Effect").
The Company has not received notice of any alleged violation of any statute,
law, regulation, ordinance, rule, judgment, order or decree from any
governmental authority, which would have a Material Adverse Effect.

          2.9  LITIGATION. Except as disclosed in the SEC Reports, there
is no action, suit or proceeding before or by any court or governmental agency
or body, domestic or foreign, now pending or, to the knowledge of the Company,
threatened, against or affecting the Company, or any of its properties, which
could reasonably be expected to result in any material adverse change in the
business, properties, results of operations, condition (financial or otherwise),
or prospects of the Company, or which could reasonably be expected to materially
and adversely affect the properties or assets of the Company or which could
reasonably be expected to interfere with the Company's ability to consummate the
transactions contemplated by this Agreement.

          2.10 PRIOR PRIVATE PLACEMENTS. The offer and sale of the
Securities are exempt from registration under Section 5 of the Act. Neither the
Company nor any person acting on its behalf has taken or will take any action
(including, without limitation, any offering of any securities of the Company
under circumstances which would require the integration of such offering with
the offering of the Securities) which would subject the offering or issuance or
sale of the Securities to the registration requirements of Section 5 of the Act.

          2.11 COMMISSIONS.  Except for a fee payable by the Company to ________
for services rendered to the Company in the amount of $_______, no person, firm
or corporation will be entitled to receive any brokerage fee, commission or
other similar payment from the Company

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in connection with the consummation of the transactions contemplated hereby and
the Company shall not make any such payment to any person, firm or corporation.

     3.   REPRESENTATIONS AND WARRANTIES OF PURCHASERS; ACCESS TO INFORMATION;
INDEPENDENT INFORMATION; INDEPENDENT INVESTIGATION

     Each Purchaser represents and warrants to the Company as follows:

          3.1  INDEPENDENT INVESTIGATION. Each Purchaser, in offering to
purchase the Securities hereunder, has, prior to the date hereof, been given
access to and the opportunity to examine all books, records and material
contracts and documents of the Company and to meet with and ask questions of the
Company's management. In making its investment decision to purchase the
Securities, no Purchaser is relying on any oral or written representations or
assurances from the Company or any other person or any representation of the
Company or any other person other than as set forth in this Agreement, the SEC
Reports or in a document executed by a duly authorized representative of the
Company making reference to this Agreement. Each Purchaser has such experience
in business and financial matters that it is capable of evaluating the risk of
its investment and determining the suitability of its investment. Each Purchaser
is a sophisticated investor, as defined in Rule 506(b)(2)(ii) of Regulation D
under the Act, and an "accredited investor" as defined in Rule 501 of Regulation
D under the Act.

          3.2  ECONOMIC RISK. Each Purchaser understands and acknowledges
that an investment in the Securities involves a high degree of risk, including a
possible total loss of investment. Each Purchaser represents that it is able to
bear the economic risk of an investment in the Securities.

          3.3  NO GOVERNMENT RECOMMENDATION OR APPROVAL. Each Purchaser
understands that no federal or state agency or similar agency of any other
country has passed upon or made any recommendation or endorsement of the
Company, this transaction or the subscription of the Securities.

          3.4  NO REGISTRATION. Each Purchaser understands that the
Securities have not been registered under the Act and are being offered and sold
pursuant to an exemption from registration contained in the Act based in part
upon the representations of the Purchasers contained herein. The Shares and
Warrant Shares do, however, carry certain registration rights as set forth in
the Registration Rights Agreement dated the date hereof and executed by the
parties hereto in connection herewith (the "Registration Rights Agreement").

          3.5  NO PUBLIC SOLICITATION.  Without conducting any independent
investigation, no Purchaser knows of any public solicitation or advertisement of
an offer in connection with the proposed issuance and sale of the Securities.

          3.6  INVESTMENT INTENT.  Each Purchaser is acquiring the Securities
for its own account, for investment and not with a view to the distribution
thereof. Each Purchaser understands that except as set forth in the Registration
Rights Agreement, the Company has no present intention

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of registering any such sale of the Securities. Each Purchaser represents and
warrants to the Company that it has made no predetermined arrangements to sell
the Securities (other than the registration provisions contained in the
Registration Rights Agreement, which pertain only to a potential method of
disposing of the Shares and Warrant Shares).

          3.7  INCORPORATION AND AUTHORITY. Each Purchaser has the full
power and authority to execute, deliver and perform this Agreement and to
perform its obligations hereunder. The Agreement has been duly approved by all
necessary action of each Purchaser, including any necessary shareholder
approval, has been executed by persons duly authorized by each Purchaser, and
constitutes a valid and legally binding obligation of each Purchaser,
enforceable in accordance with its terms.

          3.8  NO RELIANCE ON TAX ADVICE. Each Purchaser has reviewed
with its own tax advisors the foreign, federal, state and local tax consequences
of this investment, where applicable, and the transactions contemplated by this
Agreement. Each Purchaser is relying solely on such advisors and not on any
statements or representations of the Company or any of its agents and
understands that each Purchaser (and not the Company) shall be responsible for
its own income tax liability that may arise as a result of this investment or
the transactions contemplated by this Agreement.

          3.9  INDEPENDENT LEGAL ADVICE. Each Purchaser acknowledges that
it has had the opportunity to review this Agreement and the transactions
contemplated by this Agreement with its own legal counsel. The Purchaser is
relying solely on such counsel and not on any statements or representations of
the Company or any of its agents for legal advice with respect to this
investment or the transactions contemplated by this Agreement, except for the
representations, warranties and covenants set forth herein.

     4.   LEGENDS; SUBSEQUENT TRANSFER OF SECURITIES

          4.1  LEGENDS. The certificate(s) representing the Securities
shall bear a legend substantially as set forth on the cover page of this
Agreement and any other legend, if such legend or legends are reasonably
required to comply with state, federal or foreign law.

     5.   COVENANTS OF THE COMPANY

          5.1  USE OF PROCEEDS. The Company shall use the net proceeds
from the sale of the Securities for general corporate purposes, including
acquisition or merger consideration with respect to any acquisition that may be
consummated by the Company.

          5.2  REGISTRATION RIGHTS. The Company will grant the Purchasers
registration rights covering the Shares and Warrant Shares as set forth in the
Registration Rights Agreement. In the event the registration statement
contemplated by the Registration Rights Agreement is not declared effective by
the Commission within ninety days (90) following the Closing contemplated
herein, the Company shall pay to the Purchasers, as liquidated damages and not
as a penalty, the aggregate sum of $1,393 for each day the registration
statement has not been declared effective

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following such ninety (90) day period. Any liquidated damages shall be paid in
cash by the Company on a pro rata basis to the Purchasers on the last day of
each calendar month in which a payment obligation arises.

          5.3  VALID ISSUANCE OF WARRANT SHARES. When issued and
delivered in accordance with the Warrant, the Warrant Shares will be duly and
validly issued, fully paid and non-assessable, free and clear of any claims or
pre-emptive rights and will have been issued in compliance with all applicable
federal and state securities laws.

     6.   COVENANTS OF THE PURCHASERS

          6.1  NO SALE IN VIOLATION OF THE ACT. Each Purchaser further
covenants that it will not make any sale, transfer or other disposition of the
Securities in violation of the Act or the rules and regulations of the
Commission promulgated thereunder. Each Purchaser acknowledges and agrees that
the Securities may and will only be resold (i) pursuant to a Registration
Statement under the Act; or (ii) pursuant to an exemption from registration
under the Act.

     7.   CONDITIONS TO CLOSING; DELIVERIES AT CLOSING

          7.1  CONDITIONS TO PURCHASERS' OBLIGATIONS TO CLOSE.  The obligations
of the Purchasers to purchase the Shares and the Warrants offered hereunder are
conditioned on the fulfillment or waiver of the following:

               (a)  the execution and delivery of this Agreement, the
                    Warrant and the Registration Rights Agreement by the
                    Company; and

               (b)  all the representations and warranties of the
                    Company in this Agreement as of the date hereof shall be
                    true and correct at the Closing as if made on such date, and
                    the Company shall have performed all actions required
                    hereunder.

          7.2  CONDITIONS TO THE COMPANY'S OBLIGATION TO CLOSE.  The obligation
of the Company to sell the Shares offered hereunder are conditioned on the
fulfillment or waiver of the following:

               (a)  the execution and delivery of this Agreement and the
                    Registration Rights Agreement by the Purchasers; and

               (b)  all the representations and warranties of the
                    Purchasers made in this Agreement as of the date hereof
                    shall be true and correct at the Closing as if made on such
                    date, and the Purchasers shall have performed all actions
                    required hereunder.

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     8.   GOVERNING LAW

     This Agreement shall be governed by and construed in accordance with
the laws of the State of Illinois, applicable to agreements made in and wholly
to be performed in that jurisdiction without regards to the choice of law rules
of such state, except for matters arising under the Act or the 1934 Act which
matters shall be construed and interpreted in accordance with such laws. Any
action brought to enforce, or otherwise arising out of, this Agreement shall be
heard and determined in either a federal or state court sitting in the County of
Cook, State of Illinois.

     9.   ENTIRE AGREEMENT; AMENDMENT

     This Agreement, the Registration Rights Agreement, and any other
document delivered pursuant hereto constitute the full and entire understanding
and agreement between the parties with regard to the subjects hereof and
thereof, and no party shall be liable or bound to any other party in any manner
by any warranties, representations or covenants except as specifically set forth
herein or therein. Except as expressly provided herein, neither this Agreement
nor any term hereof may be amended, waived, discharged or terminated other than
by a written instrument signed by the party against whom enforcement of any such
amendment, waiver, discharge or termination is sought.

     10.  NOTICES, ETC.

     Any notice, demand or request required or permitted to be given by
either the Company or any Purchaser pursuant to the terms of this Agreement
shall be in writing and shall be deemed given when delivered personally or by
facsimile, with a hard copy to follow by two day courier addressed to the
parties at the addresses of the parties set forth at the end of this Agreement
or such other address as a party may request by notifying the other in writing.

     11.  CONFIDENTIALITY

     Each Purchaser will keep confidential all non-public information
regarding the Company that each receives from the Company unless disclosure of
such information is compelled by a court or other administrative body or
otherwise necessary, in the opinion of Purchasers' counsel, to comply with
applicable law. Neither party shall disclose any information regarding any of
the transactions contemplated hereby without the prior consent of the other
party, unless such disclosure is required in filings made with the Commission.
The Company and its officers and directors have not provided the Purchasers with
any material non-public information.

     12.  COUNTERPARTS

     This Agreement may be executed in any number of counterparts, each of
which shall be enforceable against the parties actually executing such
counterparts, and all of which together shall constitute one instrument. A
facsimile transmission of a signature hereto shall be valid as if an original
and binding on all parties.

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     13.  SEVERABILITY

     In the event that any provision of this Agreement becomes or is
declared by a court of competent jurisdiction to be illegal, unenforceable or
void, this Agreement shall continue in full force and effect without said
provision; provided that no such severability shall be effective if it
materially changes the economic benefit of this Agreement to any party.

     14.  TITLES AND SUBTITLES

     The titles and subtitles used in this Agreement are used for
convenience only and are not to be considered in construing or interpreting this
Agreement.

     15.  PARTIES IN INTEREST CITED

     This Agreement may not be transferred, assigned, pledged or
hypothecated by any party hereto, other than by operation of law. This Agreement
shall be binding upon, and shall inure to the benefit of, the parties hereto and
their respective heirs, executors, administrators, successors and permitted
assigns. All representations, warranties, covenants and agreements of each party
hereto shall survive the Closing contemplated herein for a period of two (2)
years.

     The undersigned Purchasers acknowledge that this subscription shall not
be effective unless executed by the Company as indicated below.

                            [Signature page follows]

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     IN WITNESS WHEREOF, the parties have executed this Agreement on the
date first written above.

COMPANY:                                          PURCHASERS:

NUCLEUS, INC.                                     _________________________

150 North Michigan Avenue                         _________________________
Suite 3610
Chicago, IL 60601                                 _________________________

By:_____________________________                  _________________________
     John C.  Paulsen, President

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                                  SCHEDULE 1.1

                                   PURCHASERS

                     No. of Shares of
                          Common           No. of Warrants        Aggregate
       Name           Stock Purchased         Granted          Purchase Price
       ----           ---------------         -------          --------------

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                                    EXHIBIT A

                                                                  WARRANT NO.___

THE WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE
NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR THE SECURITIES COMMISSION OF
ANY STATE UNDER ANY STATE SECURITIES LAW. THE SECURITIES MAY NOT BE OFFERED,
SOLD OR OTHERWISE TRANSFERRED UNLESS THE SECURITIES ARE REGISTERED UNDER THE ACT
AND APPLICABLE STATE SECURITIES LAWS, OR SUCH OFFERS, SALES AND TRANSFERS ARE
MADE PURSUANT TO AVAILABLE EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF
THOSE LAWS.

                               WARRANT TO PURCHASE
                            SHARES OF COMMON STOCK OF
                                  NUCLEUS, INC.

                                                         _____________ ___, 1999

     This certifies that, for value received pursuant to that certain
Securities Purchase Agreement, dated as of ________, 1999, by and among Nucleus,
Inc., _______________________ and certain other purchasers, _____________ (the
"Warrant Holder"), is entitled to purchase from Nucleus, Inc., a Nevada
corporation (the "Company"), at any time prior to 5:00 p.m. Chicago time on the
second anniversary of the date hereof (the "Expiration Date") _______________
( ) fully paid and non-assessable shares of the Company's Common Stock, par
value $.001 per share (the "Common Stock;" the Common Stock purchasable upon
exercise of this Warrant is herein called the "Common Shares"), at a price per
share of Four and 75/100 Dollars ($4.75) (the "Exercise Price"). The number of
Common Shares purchasable hereunder and the Exercise Price are subject to
adjustment as provided below.

     If the Expiration Date shall be a holiday in the State of Illinois or a
day on which banks are authorized to close in the State of Illinois, then the
Expiration Date shall be the next following day which in the State of Illinois
is not a holiday or a day on which banks are authorized to close. If this
Warrant is not exercised at or before 5:00 p.m. Illinois time, on the Expiration
Date, it shall become void, and all rights hereunder shall thereupon cease.

     1.   EXERCISE; FRACTIONAL SHARES.

          (a)  The Warrant Holder may exercise this Warrant, in whole or
in part, upon surrender of this Warrant with the Exercise Form hereon duly
executed, to the Company at Nucleus Inc., 150 North Michigan Avenue, Chicago,
Illinois 60601, or at such other address as the Company may designate by notice
given to the Warrant Holder in accordance with the terms hereof, together with
payment in full of the Exercise Price in lawful money of the United States, by
wire transfer of immediately available funds or certified check or bank draft
payable in United States Dollars to the

                                       A-1

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order of the Company, for each Common Share to be purchased and upon compliance
with and subject to the conditions set forth herein.

          (b)  Upon surrender of this Warrant with the Exercise Form duly
executed and accompanied by payment of the aggregate Exercise Price for the
number of Common Shares for which this Warrant is then being exercised, the
Company will cause to be issued certificates for the total number of Common
Shares for which this Warrant is being exercised as are required for delivery,
within fifteen (15) days of such exercise, to the Warrant Holder, and the
Company shall thereupon deliver such certificates to the Warrant Holder. This
Warrant shall be deemed to have been exercised in whole or in part immediately
prior to the close of business on the date this Warrant is surrendered and
payment is made as provided herein.

          (c)  The Company shall not be required to issue any fractional
Common Shares in connection with the exercise of this Warrant. In any case where
the Warrant Holder would be entitled under the terms of this Warrant to receive
a fraction of a Common Share upon the exercise of this Warrant, the Company
shall, upon the exercise of this Warrant and receipt of the Exercise Price,
issue the largest number of whole shares purchasable upon exercise of this
Warrant unless the Company has subdivided the shares of Common Stock. The
Company shall not be required to make any cash or other adjustment in respect of
such fraction of a Common Share to which the Warrant Holder would otherwise be
entitled and the Warrant Holder, by the acceptance of this Warrant, expressly
waives his right to receive a certificate of any fraction of a Common Share upon
the exercise hereof.

     2.   ADJUSTMENT.

          (a)  If prior to the exercise of this Warrant, the Company
shall have effected one or more stock split-ups or other subdivisions or
combinations of Common Stock, the number of Common Shares subject to this
Warrant shall (i) be proportionately increased if a net increase shall have been
effected (in the case of split-up in or subdivision of) the number of shares of
Common Stock; or (ii) be proportionately reduced if a net reduction (in the case
of a combination) shall have been effected in the number of shares in Common
Stock. Upon the occurrence of an event described in this subparagraph (a), the
Exercise Price shall be subject to a proportionate reduction under clause (i) or
a proportionate increase under clause (ii), as the case may be.

          (b)  In case of any capital reorganization of the Company or of
any reclassification of the Common Stock, or the consolidation or merger of the
Company with any other corporation or entity, after such capital reorganization,
reclassification, or consolidation, this Warrant will be exercisable, upon the
terms and conditions specified in this Warrant, for the number of shares of
Common Stock or other securities or property which the Warrant Holder would have
been entitled to receive upon the capital reorganization, reclassification,
consolidation or merger if this Warrant had been exercised immediately before
the first such capital reorganization, reclassification, or consolidation or
immediately before the effective date of such merger. The subdivision or
combination of Common Shares at any time outstanding into a greater or lesser
number of Common Shares shall not be deemed to be a reclassification of the
Common Shares of the Company for the purposes of this paragraph.

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          (c)  Whenever the number of Common Shares are adjusted, the
Company shall compute the adjusted number and the resulting adjustment to the
Exercise Price and shall prepare a certificate signed by its President or a
Vice-President setting forth the adjustment and the facts requiring the
adjustment and upon which the calculation is based, and that certificate shall
forthwith be mailed to the Warrant Holder.

          (d)  The form of Warrant need not be changed because of any
change in the number of Common Shares purchasable upon exercise of this Warrant
and Warrants issued after such change may state the same Exercise Price and the
same number of Common Shares as are stated in the form of Warrant initially
issued.

     3.   COMPANY COVENANTS.

          (a)  The Company covenants and agrees that at all times it
shall reserve and keep available for the exercise of this Warrant such number of
authorized Common Stock as are sufficient to permit the exercise in full of this
Warrant.

          (b)  The Company covenants that all Common Shares issued on
exercise of this Warrant will be validly issued, fully paid, nonassessable and
free of preemptive rights.

     4.   REGISTRATION RIGHTS.

     The Common Shares that may be issued to the Warrant Holder upon
exercise of the Warrant are entitled to the registration rights set forth in the
Registration Rights Agreement of even date herewith between the Company and the
Warrant Holder.

     5.   MISCELLANEOUS.

          (a)  The Warrant Holder, as such, shall not be entitled to any
rights, including, without limitation, voting rights, as a shareholder of the
Company, until this Warrant shall have been exercised as provided herein.

          (b)  If this Warrant is lost, stolen, mutilated or destroyed,
the Company may, on such terms as to indemnity or otherwise as it may in its
discretion impose (which shall, in the case of a mutilated Warrant, include the
surrender thereof), issue a new Warrant of like denomination and tenor as, and
in substitution for, this Warrant.

          (c)  Prior to due presentment for registration of transfer of
this Warrant, the Company may deem and treat the Warrant Holder as the absolute
owner of this Warrant (notwithstanding any notation of ownership or other
writing hereon) for the purpose of any exercise hereof and for all other
purposes and the Company shall not be affected by any notice to the contrary.

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<PAGE>

          (d)  This Warrant and the Common Shares may not be sold,
transferred, assigned, hypothecated or otherwise disposed of except to an entity
or person, who (i) in the opinion of counsel reasonably satisfactory to the
Company, is a person to whom this Warrant or Common Shares may legally be
transferred without registration under any federal or state securities law or
regulation, and (ii) who agrees to comply with the provisions of this Warrant
with respect to any further resale or disposition of such securities.

          (e)  All of the Company's covenants and provisions of this
Warrant shall bind and inure to the benefit of its successors and assigns
hereunder.

          (f)  Any notice or demand pursuant to this Warrant to be given
or made by the Warrant Holder to or on behalf of the Company shall be
sufficiently given or made when delivered or sent by registered or certified
mail, postage prepaid, return receipt requested, and addressed, until another
address is designated in writing by the Company, as follows:

                      Nucleus, Inc.
                      150 N. Michigan Avenue
                      Chicago, Illinois 60601
                      Attention:  John C. Paulsen, President

          (g)  The section headings contained herein are for reference
purposes only and shall not in any way affect the meaning or interpretation of
this Warrant.

          (h)  The validity, interpretation and performance of this Warrant
shall be governed by the laws of the State of Illinois.

                                       A-4

<PAGE>

     IN WITNESS WHEREOF, this Warrant has been duly executed by the Company
this ___ day of ___________________, 1999.

                                                NUCLEUS, INC.

                                                By:  ___________________________
                                                     John C. Paulsen, President

                                       A-5

<PAGE>

                                  EXERCISE FORM
                                  -------------
                 (To be Executed by A Warrant Holder Who Desires
                  To Exercise The Warrant In Whole Or In Part)

                                                       ___________________, 19__

Nucleus, Inc.
150 N. Michigan Avenue
Chicago, Illinois 60601

Undersigned:

                  (                              )
                  Please insert Tax Identification
                  Number Warrant Holder

hereby irrevocably elects to exercise the right of purchase represented by the
within Warrant for, and to purchase thereunder, Nucleus, Inc. _________ shares
of Common Stock, no par value $.001 per share, of Nucleus, Inc. ("Common
Shares") provided for therein (or, if adjusted pursuant to Section 3 of the
Warrant, such number of shares calculated pursuant to Section 3 thereof) and
tenders payment herewith to the order of Nucleus, Inc. in the amount of the
product of the Exercise Price, as that term is defined in the Warrant, times the
number of Common Shares purchased. The undersigned requests that certificates
for such Common Shares be issued as follows:

Name:               ____________________________

Address:            ____________________________

Deliver to:         ____________________________

Address:            ____________________________

Tax Identification
Number:             ____________________________

Signature:          ____________________________

Date:               ____________________________

NOTE: THE SIGNATURE OF THIS EXERCISE MUST CORRESPOND WITH THE NAME AS WRITTEN
UPON THE FACE OF THIS WARRANTY IN EVERY PARTICULAR, WITHOUT ALTERATION OR
ENLARGEMENT OR ANY CHANGE WHATSOEVER.

                                       A-6EXHIBIT 4.3

                          REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT (the "Agreement") is entered into as
of June 2, 1999, by and among NUCLEUS, INC, a Nevada corporation (the
"Company"), and the undersigned investors (each of the undersigned being
singularly referred to as an "Investor" and collectively as the "Investors").

                                R E C I T A L S:

     WHEREAS, pursuant to a Securities Purchase Agreement dated the date
hereof (the "Purchase Agreement") by and between the Company and the Investors,
the Company has agreed to sell and the Investors have agreed to purchase an
aggregate of __________ shares of the Company's Common Stock, par value $.001
per share (the "Common Stock") and warrants to purchase _______ shares of Common
Stock (the "Warrants"); and

     WHEREAS, pursuant to the terms of, and in partial consideration for,
the Investors' agreement to enter into the Purchase Agreement, the Company has
agreed to provide the Investors with certain registration rights with respect to
the shares of Common Stock acquired under the Purchase Agreement and the Common
Stock issuable upon exercise of the Warrants (the "Shares");

     NOW THEREFORE, in consideration of the mutual promises,
representations, warranties, covenants and conditions set forth in the Purchase
Agreement and this Registration Rights Agreement, the Company and the Investors
agree as follows:

                                   AGREEMENT:

1.   CERTAIN DEFINITIONS.  As used in this Agreement, the following terms shall
have the following respective meanings:

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

     "Common Stock" shall mean the Company's Common Stock, par value $.001
per share.

     "Other Registrable Shares" shall mean those shares (which includes
shares of Common Stock issuable upon exercise of the warrants) of Common Stock
heretofore or hereafter issued pursuant to one or more agreements granting the
purchasers of such securities the right to have the Company register such
securities or include such securities in any other registration of the Company's
equity securities.

     "Registrable Shares" shall mean (i) the Shares (which shall include the
shares of Common Stock issuable upon exercise of the Warrants), and (ii) any
Common Stock of the Company issued or issuable in respect of the Shares or upon
any stock split, stock dividend, recapitalization or similar

<PAGE>

event; provided, however, that Registrable Shares or other securities shall no
longer be treated as Registrable Shares if (A) they have been sold to or through
a broker or dealer or underwriter in a public distribution or a public
securities transaction, (B) they have been sold in a transaction exempt from the
registration and prospectus delivery requirements of the Securities Act so that
all transfer restrictions and restrictive legends with respect thereto are
removed upon consummation of such sale, or (C) the Shares are available for sale
under the Securities Act (including Rule 144), in the opinion of counsel to the
Company, without compliance with the registration and prospectus delivery
requirements of the Securities Act so that all transfer restrictions and
restrictive legends with respect thereto may be removed upon the consummation of
such sale.

     The terms "register," "registered" and "registration" shall refer to a
registration effected by preparing and filing a registration statement in
compliance with the Securities Act and applicable rules and regulations
thereunder, and the declaration or ordering of the effectiveness of such
registration statement.

     "Registration Expenses" shall mean all expenses incurred by the Company
in compliance with Section 2 hereof, including, without limitation all
registration and filing fees, printing expenses, fees and disbursements of
counsel for the Company, blue sky fees and expenses, reasonable fees and
disbursements (not to exceed $10,000) of one counsel for the Investors and any
selling holders of Other Registrable Shares for a limited "due diligence"
examination of the Company incident to such registration (but excluding the
compensation of regular employees of the Company, which shall be paid in any
event by the Company, and excluding all underwriting discounts and selling
commissions applicable to the sale of the Registrable Shares or Other
Registrable Shares).

     "Registration Statement" shall mean the registration statement filed
with the Commission by the Company at the request of the Investor covering the
Shares pursuant to this Agreement.

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

     "Selling Expenses" shall mean all underwriting discounts and selling
commissions applicable to the sale of Registrable Shares and all fees and
disbursements of one counsel for the Investors and selling holders of Other
Registrable Shares (other than the fees and disbursements of such counsel
included in Registration Expenses).

     "Warrants" shall mean the warrants to purchase shares of Common Stock
granted to the Investors pursuant to the Purchase Agreement.

2.   REQUESTED REGISTRATION.

     (A)  REQUEST FOR REGISTRATION. The Investors hereby request, and the
Company hereby agrees, that (A) within thirty (30) days of the date hereof, the
Company shall cause to be filed with the Commission a Registration Statement on
Form S-1, Form SB-2 or such other form as is then appropriate for use by the
Company under the Securities Act and (B) the Company shall use its best

                                        2

<PAGE>

efforts to cause the Registration Statement to be declared effective by the
Commission (including, without limitation, undertaking the actions described in
Section 4), no later than ninety days (90) days following the date hereof so as
to permit or facilitate the sale and distribution of the Registrable Shares; and
(C) the Company shall cause such Registration Statement to remain effective for
a period of two (2) years (subject to the right of the Company to suspend the
effectiveness thereof for not more than an aggregate of ninety (90) days at no
cost to the Company). In the event the Registration Statement is not declared
effective by the Commission within ninety days (90) following the Closing (as
defined in the Purchase Agreement), the Company shall pay to the Investors, as
liquidated damages and not as a penalty, the aggregate sum of $1,393 for each
day the Registration Statement has not been declared effective following such
ninety (90) day period. Any liquidated damages shall be paid by the Company to
Investors on a pro rata basis on the last day of each calendar month in which a
payment obligation arises.

     The Registration Statement filed pursuant to the request of the
Investors hereunder may, subject to the provisions of Section 2.2(b) below,
include Other Registrable Shares, or other securities of the Company which are
held by officers or directors of the Company, and may include securities of the
Company being sold for the account of the Company.

     (B)  UNDERWRITING. If the Investors intend to distribute the Shares by
means of an underwriting, it shall so advise the Company. The right of any
holder of Other Registrable Shares to have such shares included in the
registration shall be conditioned upon such holder's participation in such
underwriting and the inclusion of such holder's Other Registrable Shares in such
underwriting (unless otherwise mutually agreed by the Investor and such holder
with respect to such participation and inclusion) to the extent provided herein.

          (i) If the Company shall request inclusion in any registration
     pursuant to Section 2 of securities being sold for its own account, or if
     officers or directors of the Company holding other securities of the
     Company or holders of Other Registrable Shares, shall request inclusion in
     any registration pursuant to Section 2, the Investors shall, on behalf of
     all holders of Other Registrable Shares, offer to include Other Registrable
     Shares and the securities of the Company, and such officers and directors
     in the underwriting and may condition such offer on their acceptance of the
     further applicable provisions of this Agreement. The Company shall
     (together with all holders of Other Registrable Shares and officers and
     directors proposing to distribute their securities through such
     underwriting) enter into an underwriting agreement in customary form with
     the underwriter or representative of the underwriters selected for such
     underwriting by the Company, which underwriter(s) shall be reasonably
     acceptable to the Investors.

          (ii) Notwithstanding any other provision of this Section 2, if
     the representative of the underwriters advises the Company in writing that
     marketing factors require a limitation on the number of shares to be
     underwritten, the Company shall so advise the Investors and all holders of
     Other Registrable Shares and other shareholders whose securities would
     otherwise be underwritten pursuant to such registration, and the number of
     Other Registrable Shares and other securities that may be included in the
     registration and underwriting shall be allocated in the following manner:
     the securities to be offered by the

                                        3

<PAGE>

     Company and the securities of the Company held by officers and directors of
     the Company shall be excluded from such registration and underwriting to
     the extent required by such limitation, and, if a limitation on the number
     of shares is still required, the Other Registrable Shares shall be excluded
     pro rata with Registrable Shares, unless another method of determining such
     exclusion is specified in the agreements governing the Other Registrable
     Shares, according to the relative number of Other Registrable Shares
     requested to be included in such registration and underwriting, from such
     registration and underwriting to the extent required by such limitation,
     and, if a limitation on the number of shares is still required, the number
     of Registrable Shares that may be included in the registration and
     underwriting shall be allocated among all holders of Registrable Shares in
     proportion, as nearly as practicable, to the respective amounts of
     Registrable Shares which they had requested to be included in such
     registration at the time of filing the registration statement. No
     Registrable Shares or any other securities excluded from the underwriting
     by reason of the underwriter's marketing limitation shall also be included
     in such registration.

          (iii)     If the Company or any officer, director or holder of
     Other Registrable Shares who has requested inclusion in such registration
     and underwriting as provided above disapproves of the terms of the
     underwriting, such person may elect to withdraw therefrom by written notice
     to the Company, the underwriter and the Investors. The securities so
     withdrawn shall also be withdrawn from registration.

3.   EXPENSES OF REGISTRATION. The Company shall bear all Registration Expenses
incurred in connection with any registration, qualification or compliance of the
Registrable Shares pursuant to this Agreement. All Selling Expenses shall be
borne by the holders of the securities so registered pro rata on the basis of
the number of their shares so registered.

4.   REGISTRATION PROCEDURES.  Pursuant to this Agreement, the Company will keep
the Investors advised in writing as to the initiation of a registration under
this Agreement and as to the completion thereof. At its expense, the Company
will:

          (a)  Use reasonable efforts to keep such registration effective
     for a period of two (2) years (subject to the right of the Company to
     suspend the effectiveness thereof for not more than an aggregate of ninety
     (90) days during such two (2) year period) or until the Investors have
     completed the distribution described in the registration statement relating
     thereto or until the securities registered cease to be Registrable Shares,
     whichever first occurs;

          (b)  Prepare and file with the Commission such amendments and
     supplements to such registration statement and the prospectus used in
     connection with such registration statement as may be necessary to comply
     with the provisions of the Securities Act with respect to the disposition
     of securities covered by such registration statement;

          (c)  Furnish such number of prospectuses and other documents
     incidental thereto, including any amendment of or supplement to the
     prospectus, as the Investors from time to time may reasonably request;

                                        4

<PAGE>

          (d)  Use reasonable efforts to (i) register and qualify the
     Registrable Shares covered by the Registration Statement under such other
     securities or blue sky laws of such jurisdictions as the Investors
     reasonably request, (ii) prepare and file in those jurisdictions such
     amendments (including post-effective amendments) and supplements, (iii)
     take such other actions as may be necessary to maintain such registrations
     and qualifications in effect until such date set forth in clause (a) above
     and (iv) take all other actions reasonably necessary or advisable to
     qualify the Registrable Shares for sale in such jurisdictions; provided,
     however, that the Company shall not be required in connection therewith or
     as a condition thereto to (1) qualify to do business in any jurisdiction
     where it would not otherwise be required to qualify but for this Section
     4(d), (2) subject itself to general taxation in any such jurisdiction, (3)
     file a general consent to service of process in any such jurisdiction, (4)
     provide any undertakings that cause more than nominal expense or burden to
     the Company or (5) make any change in its charter or by-laws, which in each
     case the Board of Directors of the Company determines to be contrary to the
     best interests of the Company and its stockholders;

          (e)  In the event the Investors select underwriters for the
     offering, enter into and perform its obligations under an underwriting
     agreement, in usual and customary form, including, without limitation,
     customary indemnification and contribution obligations, with the managing
     underwriter of such offering;

          (f)  As promptly as practicable after becoming aware of such
     event, notify the Investors of the happening of any event of which the
     Company has knowledge, as a result of which the prospectus included in the
     Registration Statement, as then in effect, includes an untrue statement of
     a material fact or omits 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, and use its best
     efforts promptly to prepare a supplement or amendment to the Registration
     Statement to correct such untrue statement or omission, and deliver a
     number of copies of such supplement or amendment to the Investors as they
     may reasonably request;

          (g)  As promptly as practicable after becoming aware of such
     event, notify the Investors (or, in the event of an underwritten offering,
     the managing underwriters) of the issuance by the Commission of any stop
     order or other suspension of effectiveness of the Registration Statement at
     the earliest possible time;

          (h)  Permit a single firm of counsel designated as selling
     stockholders' counsel to review the Registration Statement and all
     amendments and supplements thereto a reasonable period of time prior to
     their filing with the Commission, and shall not file any document in a form
     to which such counsel reasonably objects;

          (i)  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 Securities Act)

                                        5

<PAGE>

     covering a twelve-month period beginning not later than the first day of
     the Company's fiscal quarter next following the effective date of the
     Registration Statement;

          (j)  At the request of the underwriter in the event the sale of
     Registrable Shares is underwritten, furnish on the date that Registrable
     Shares are delivered to an underwriter for sale in connection with the
     Registration Statement (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, addressed to the
     underwriters; and (ii) an opinion, dated such date, from counsel
     representing the Company for purposes of such Registration Statement, in
     form and substance as is customarily given in an underwritten public
     offering, addressed to the underwriters and any selling stockholders;

          (k)  Make available for inspection by the Investors, any
     underwriter participating in any disposition pursuant to the Registration
     Statement, and any attorney, accountant or other agent retained by any such
     holder or underwriter (collectively, the "Inspectors"), all pertinent
     financial and other records, pertinent corporate documents and properties
     of the Company (collectively, the "Records"), as shall be reasonably
     necessary to enable each Inspector to exercise its due diligence
     responsibility, and cause the Company's officers, directors and employees
     to supply all information which any Inspector may reasonably request for
     purposes of such due diligence; provided, however, that each Inspector
     shall hold in confidence and shall not make any disclosure (except to the
     Investors or a holder of Other Registrable Shares) of 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 (i) the
     disclosure of such Records is necessary to avoid or correct a misstatement
     or omission in any Registration Statement, (ii) the release of such Records
     is ordered pursuant to a subpoena or other order from a court or government
     body of competent jurisdiction or (iii) 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. The Company shall not be required
     to disclose any confidential information in such Records to any Inspector
     until and unless such Inspector shall have entered into confidentiality
     agreements (in form and substance satisfactory to the Company) with the
     Company with respect thereto, substantially in the form of this Section
     4(k). The Investors agree that they 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. The Company shall hold in confidence and shall not
     make any disclosure of information concerning any Investor provided to the
     Company pursuant to Section 5(e) hereof 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 release
     of such information is ordered pursuant to a subpoena or other 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 or any other agreement. The Company agrees
     that it shall, upon learning

                                        6

<PAGE>

     that disclosure of such information concerning any Investor is sought in or
     by a court or governmental body of competent jurisdiction or through other
     means, give prompt notice to such Investor, at its expense, to undertake
     appropriate action to prevent disclosure of, or to obtain a protective
     order for, such information;

          (l)  Use its best efforts to (i) cause all the Registrable
     Shares covered by the Registration Statement to be listed on any national
     securities exchange on which shares of Common Stock are then listed if the
     listing of such Registrable Shares is then permitted under the rules of
     such exchange, (ii) secure designation of all the Registrable Shares
     covered by the Registration Statement as a National Association of
     Securities Dealers Automated Quotations System ("NASDAQ") "national market
     system security" within the meaning of Rule 11Aa2-1 of the Commission under
     the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and
     the quotation of the Registrable Shares on the NASDAQ National Market, if
     shares of Common Stock are then so quoted or eligible for quotation or
     (iii) if the Common Stock is not quoted on or eligible for quotation on the
     NASDAQ National Market, secure designation of the Registrable Shares on the
     NASDAQ Small Cap Market or the OTC Bulletin Board, where the Common Stock
     may then be quoted;

          (m)  Provide a transfer agent and registrar, which may be a
     single entity, for the Registrable Shares not later than the effective date
     of the Registration Statement and cause such transfer agent to act in
     accordance with this Agreement;

          (n)  Cooperate with the Investors and the managing underwriter
     or underwriters, if any, to facilitate the timely preparation and delivery
     of certificates (not bearing any restrictive legends) representing the
     Shares sold pursuant to the Registration Statement and enable such
     certificates to be in such denominations or amounts as the case may be, as
     the managing underwriter or underwriters, if any, or the Investors or may
     reasonably request and registered in such names as the managing underwriter
     or underwriters, if any, or the Investors may request; and

          (o)  Take all other reasonable actions necessary to expedite
     and facilitate disposition by the Investors of the Registrable Shares
     pursuant to the Registration Statement.

5.   INDEMNIFICATION.

     (a)  The Company will indemnify the Investors, each of their respective
officers, directors and partners, and each person controlling the Investor, with
respect to which registration has been effected pursuant to this Agreement, and
each underwriter, if any and each person who controls any underwriter, and their
respective counsel against all claims, losses, damages and liabilities (or
actions, proceedings or settlements in respect thereof) arising out of or based
on any untrue statement (or alleged untrue statement) of a material fact
contained in any prospectus, or other document incident to any such
registration, or based on any omission (or alleged omission) to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, or any violation by the Company of the Securities Act or
any rule or regulation thereunder applicable to the Company in connection with
any such registration and will reimburse the Investors, each of

                                        7

<PAGE>

their respective officers, directors and partners, and each person controlling
the Investors, each such underwriter and each person who controls any such
underwriter, for any legal and any other expenses as they are reasonably
incurred in connection with investigating and defending any such claim, loss,
damage, liability or action, provided, however, that the indemnity contained in
this Section 5(a) shall not apply to amounts paid in settlement of any such
claim, loss, damage, liability or action if such settlement is effected without
the consent of the Company; and provided further that the Company shall not be
liable in any such case to the extent that any such claim, loss, damage,
liability or expense arises out of or is based on any untrue statement or
omission based upon written information furnished to the Company by any Investor
or underwriter and stated to be specifically for use therein. The foregoing
indemnity agreement is further subject to the condition that insofar as it
relates to any untrue statement, alleged untrue statement, omission or alleged
omission made in a preliminary prospectus, such indemnity agreement shall not
inure to the benefit of the foregoing indemnified parties if copies of a final
prospectus correcting the misstatement, or alleged misstatement, omission or
alleged omission upon which such loss, liability, claim or damage is based is
timely delivered to such indemnified party and a copy thereof was not furnished
to the person asserting the loss, liability, claim or damage.

     (b)  Each Investor will indemnify the Company, each of its directors and
officers and each underwriter, if any, of the Company's securities covered by
such a Registration Statement, each person who controls the Company or such
underwriter within the meaning of the Securities Act and the rules and
regulations thereunder and their respective counsel (collectively, the "Company,
Underwriters and Counsel") against all claims, losses, damages and liabilities
(or actions, proceedings or settlements in respect thereof) arising out of or
based on any untrue statement (or alleged untrue statement) of a material fact
relating to such Investor contained in any such registration statement,
prospectus, offering circular or other document, or any omission (or alleged
omission) to state therein a material fact required to be stated therein
relating to such Investor or necessary to make the statements therein relating
to such Investor not misleading or any violation by such Investor of any rule or
regulation promulgated under the Securities Act applicable to such Investor and
relating to action or inaction required of such Investor in connection with any
such registration; and will reimburse the Company, directors, officers,
partners, persons, underwriters or control persons for any legal or any other
expense reasonably incurred in connection with investigating or defending any
such claim, loss, damage, liability or action, in each case to the extent, but
only to the extent, that such untrue statement (or alleged untrue statement) or
omission (or alleged omission) relating to such Investor is made in such
registration statement, prospectus, offering circular or other document in
reliance upon and in conformity with written information furnished to the
Company by such Investor and stated to be specifically for use therein;
provided, however, that such indemnification obligations shall not apply if the
Company modifies or changes to a material extent written information furnished
by such Investor. Each Investor will indemnify the Company, Underwriters and
Counsel against all claims, losses, damages and liabilities (or actions,
proceedings or settlements in respect thereof), arising out of or based on any
sale of Registrable Shares made by such Investor following receipt by the
Investor of written notice from the Company, Underwriters or Counsel that the
registration statement filed with respect to such Registrable Shares contains an
untrue statement of material fact or omits to state a material fact necessary in
order to make the statements made therein, in light of the circumstances under
which they were made, not misleading. Notwithstanding the above, the
indemnification obligations of each

                                        8

<PAGE>

Investor shall be limited in amount to the net amount of proceeds received by
such Investor from the sale of such Registrable Shares.

     (c)  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 5 to the fullest extent permitted by law; provided, however, that
(a) no contribution shall be made under circumstances where the maker would not
have been liable for indemnification under the fault standards set forth in
Section 5, (b) no seller of Registrable Securities guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any seller of Registrable Shares who was
not guilty of such fraudulent misrepresentation and (c) contribution by any
seller of Registrable Shares shall be limited in amount to the net amount of
proceeds received by such seller from the sale of such Registrable Shares.

     (d)  Each party entitled to indemnification under this Section 5 (the
"Indemnified Party") shall give notice to the party required to provide
indemnification (the "Indemnifying Party") promptly after such Indemnified Party
has actual knowledge of any claim as to which indemnity may be sought and shall
permit the Indemnifying Party to assume the defense of any such claim or any
litigation resulting therefrom, provided that counsel for the Indemnifying
Party, who shall conduct the defense of such claim or any litigation resulting
therefrom, shall be approved by the Indemnified Party (whose approval shall not
unreasonably be withheld or delayed) and the Indemnified Party may participate
in such defense at such Indemnified Party's expense. No Indemnifying Party, in
the defense of any such claim or litigation, shall, except with the consent of
each Indemnified Party, consent to entry of any judgment or enter into any
settlement which does not include as an unconditional term thereof the giving by
the claimant or plaintiff to such Indemnified Party of a release from all
liability in respect to such claim or litigation. Each Indemnified Party shall
furnish such information regarding itself or the claim in question as an
Indemnifying Party may reasonably request in writing and as shall be reasonably
required in connection with defense of such claim and litigation resulting
therefrom.

6.   AGREEMENTS OF INVESTORS. The Investors shall furnish to the Company such
information regarding the Investors and the distribution proposed by the
Investors as the Company may reasonably request in writing and as shall be
reasonably required in connection with any registration referred to in this
Agreement.

7.   REPORTS UNDER EXCHANGE ACT. With a view to making available to the
Investors the benefits of Rule 144 promulgated under the Securities Act or any
other similar rule or regulation of the Commission that may at any time permit
the Investors to sell securities of the Company to the public without
registration and without imposing restrictions arising under the federal
securities laws on the purchases thereof ("Rule 144") the Company agrees to:

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

                                        9

<PAGE>

          (b)  file with the Commission in a timely manner, all reports and
     other documents required of the Company under the Securities Act and the
     Exchange Act; and

          (c)  furnish to the Investors so long as the Investors own
     Registrable Shares, promptly upon request, (i) a written statement by the
     Company that it has complied with the reporting requirements of Rule 144,
     the Securities Act and the Exchange 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 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.

8.   MISCELLANEOUS.

          A.   GOVERNING LAW.  This agreement shall be governed by and construed
in accordance with the laws of the State of Illinois without giving effect to
conflict of laws of such jurisdiction.

          B.   SUCCESSORS AND ASSIGNS.  Except as otherwise provided herein,
the provisions hereof shall inure to the benefit of, and be binding upon, the
successors, assigns, heirs, executors and administrators of the parties hereto.

          C.   ENTIRE AGREEMENT. This Agreement constitutes the full and entire
understanding and agreement between the parties with regard to the subject
matter hereof.

          D.   NOTICES, ETC. All notices and other communications required
or permitted hereunder shall be in writing and shall be mailed by first-class
mail, postage prepaid, or delivered by hand or by messenger or courier delivery
service, addressed (a) if to the Investors at such addresses as the Investors
shall have furnished to the Company in writing, or (b) if to the Company at 150
North Michigan Avenue, Suite 3610, Chicago, Illinois 60601, Attn: President, or
at such other address as the Company shall have furnished to Investor and each
such other holder in writing.

          E.   DELAYS OR OMISSIONS. No delay or omission to exercise any
right, power or remedy accruing to the Investor, upon any breach or default of
the Company under this Agreement, shall impair any such right, power or remedy
of the Investors nor shall it be construed to be a waiver of any such breach or
default, or an acquiescence therein, or of or in any similar breach or default
thereunder occurring, nor shall any waiver of any single breach or default be
deemed a waiver of any other breach or default thereafter occurring. Any waiver,
permit, consent or approval of any kind or character on the part of the
Investors of any breach or default under this Agreement, or any waiver on the
part of any party of any provisions of conditions of this Agreement, must be in
writing and shall be effective only to the extent specifically set forth in such
writing. All remedies, either under this Agreement, or by law or otherwise
afforded to the Investor, shall be cumulative and not alternative.

                                       10

<PAGE>

          F.   COUNTERPARTS.  This agreement may be executed in any number of
counterparts, each of which shall be enforceable against the parties actually
executing such counterparts, and all of which together shall constitute one
instrument.

          G.   SEVERABILITY.  In the case any provision of this Agreement shall
be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired
thereby.

          H.   AMENDMENTS.  The provisions of this Agreement may be amended at
any time and from time to time, and particular provisions of this Agreement may
be waived, with and only with an agreement or consent in writing signed by the
Company and by the Investors.

          I.   TERMINATION OF REGISTRATION RIGHTS.  This Agreement shall
terminate at such time as the Shares no longer constitute Registrable Shares.

                            [Signature page follows]

                                       11

<PAGE>

     The foregoing Registration Rights Agreement is hereby executed as of
the date first above written.

COMPANY:                                          INVESTORS:

NUCLEUS, INC.                                     _____________________________

By:_____________________________                  _____________________________
    John C. Paulsen, President
                                                  _____________________________

                                                  _____________________________

                                       12

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