Document:

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Exhibit 10.16

                   RIGHT OF FIRST REFUSAL, CREDIT OF PAYMENTS
                          AND REVENUE SHARING AGREEMENT

         THIS RIGHT OF FIRST REFUSAL, CREDIT OF PAYMENTS AND REVENUE SHARING
AGREEMENT (this "AGREEMENT") is made and entered into effective as of April 17,
2002 (the "EFFECTIVE DATE"), by and among New Visual Corporation, a Utah
corporation ("NVC"), Adaptive Networks, Inc., a Massachusetts corporation
("ANI") and certain stockholders of ANI named below (the "ANI STOCKHOLDERS").
Each of the foregoing is referred to as a "PARTY," and collectively all are
referred to as the "PARTIES."

                                R E C I T A L S:

         A. ANI and NVC have entered or will enter into a Development and
License Agreement, to be effective as of the Effective Date (the "DEVELOPMENT
AND LICENSE AGREEMENT").

         B. Pursuant to the Development and License Agreement, NVC has agreed to
pay certain fees and royalties to ANI. In addition, prior to the date hereof,
NVC has made Prior Advances (as such term is defined below) to ANI in the
aggregate amount of $1,311,000.

         C. As additional consideration for NVC's entry into the Development and
License Agreement, and in consideration of its extension of the Prior Advances
(as defined below) to ANI, ANI desires to grant to NVC a right of first refusal
to purchase the business of ANI as provided herein.

         D. ANI further desires to grant to NVC the right to apply all of the
NVC Payments (as defined below) to the purchase price for ANI as provided in
Section 3.1 herein, or to the purchase price for common stock of ANI as provided
in Section 3.2 herein.

         E. ANI further desires to distribute a portion of its Adjusted
Operating Income (as defined below) to NVC as provided herein.

         In order to effect the foregoing, the Parties agree as set forth below.
The recitals to this Agreement and definitions set forth below shall be
considered an integral part of this Agreement.

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

         1.1 "ACQUIRING PERSON(S)" has the meaning set forth in Section 2.1
hereof.

         1.2 "ADJUSTED OPERATING INCOME" means, for any period, ANI's operating
income for such period determined in accordance with United States generally
accepted accounting principles ("GAAP"), consistently applied, adjusted for
purposes of this Agreement as follows (i) Gross Revenues for the purpose of the
determination of operating income shall not include any amounts received by ANI
from NVC pursuant to the Development and License Agreement; (ii) selling,

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general and administrative expenses for any such period shall not, for the
purpose of such determination, exceed (A) $1,998,000 in 2003, and $3,603,000 in
2004; and (B) for any period after December 31, 2004, 15% of ANI's Gross
Revenues (including for this purpose any amounts received by ANI from NVC
pursuant to the Development and License Agreement for such period) for such
period; and (iii) research and development expenses for any such period shall
not, for the purpose of such determination, exceed (A) $4,516,000 in 2003 and
$5,934,000 in 2004; and (B) for any period after December 31, 2004, 20% of ANI's
Gross Revenues (including for this purpose any amounts received by ANI from NVC
pursuant to the Development and License Agreement for such period) for such
period.

         1.3 "AFFILIATE" means, with respect to any Person, any Person that
directly, or indirectly through one or many intermediaries, controls or is
controlled by, or is under common control with, such Person.

         1.4 "ANI STOCKHOLDERS" means Michael Propp and David Propp.

         1.5 "APPRAISED VALUE" means, as to any Non-Monetary Consideration, the
fair market value of such Non-Monetary Consideration as mutually determined by
NVC and ANI, provided, however, that if NVC and ANI fail to agree on the
Appraised Value within 10 days of NVC's exercise of its Purchase Option, then
"APPRAISED VALUE" shall mean the fair market value of such Non-Monetary
Consideration as determined by an Independent Financial Expert or Independent
Financial Experts pursuant to the procedures set forth in Section 2.3 herein.

         1.6 "DEVELOPMENT AND LICENSE AGREEMENT" means the Development and
License Agreement entered into between ANI and NVC, to be effective as of the
Effective Date.

         1.7 "DEVELOPMENT AND LICENSE FEES" means those fees set forth in
Sections 5.1 and 5.2 of the Development and License Agreement, including the
Prior Advances.

         1.8 "DISPOSITION" and "DISPOSITION NOTICE" have the meanings set forth
in Section 2.1 hereof.

         1.9 "FIRST REFUSAL PERIOD" has the meaning set forth in Section 2.4
hereof.

         1.10 "GROSS REVENUES" means, for any period, all amounts recognized as
revenue during such period, determined in accordance with GAAP, consistently
applied.

         1.11 "INDEPENDENT FINANCIAL EXPERT" means any reputable investment
bank, accounting firm, or appraiser that is experienced in making determinations
such as the Appraised Value and does not (and whose directors, officers,
employees, Affiliates and stockholders do not) have a material direct or
indirect financial interest in NVC or ANI or any of their respective Affiliates.

         1.12 "NON-MONETARY CONSIDERATION" shall have the meaning set forth in
Section 2.2 hereof.

         1.13 "NVC PAYMENTS" means, as of any time, the Development and License
Fees paid by NVC up to and including such time.

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         1.14 "NVC PURCHASE" has the meaning set forth in Section 2.1 hereof.

         1.15 "OFFERED ASSETS" has the meaning set forth in Section 2.1 hereof.

         1.16 "OFFERED SECURITIES" has the meaning set forth in Section 2.1
hereof.

         1.17 "OTHER NVC ACQUISITION" has the meaning set forth in Section 3.1
hereof.

         1.18 "PERSON" means any corporation, association, group, partnership,
other entity or individual.

         1.19 "PRIOR ADVANCES" means, as of the Effective Date, the aggregate
sum of $1,311,000, which each party hereto acknowledges has been previously paid
to ANI by NVC.

         1.20 "PROPOSED CONSIDERATION" has the meaning set forth in Section 2.1
hereof.

         1.21 "PURCHASE OPTION" has the meaning set forth in Section 2.1 hereof.

2.  RIGHT OF FIRST REFUSAL

         2.1 RECEIPT OF OFFER; DISPOSITION NOTICE; PURCHASE OFFER. During the
First Refusal Period if ANI or the ANI Stockholders receive, individually or
collectively, an offer from any Person, or group of Persons affiliated with one
another or acting together with respect to such offer, offering to acquire, in a
single transaction or group of related transactions: (i) all or substantially
all of ANI's assets and properties (the "OFFERED ASSETS"), (ii) equity or debt
securities of ANI (the "OFFERED SECURITIES") that would (or could upon exercise,
exchange or conversion) result in such Person, group of Persons or their
Affiliates owning more than 50% of the outstanding equity securities of ANI; or
(iii) the business of ANI by means of a merger, consolidation, share exchange,
or other business combination or similar transaction, in which 50% or more of
the outstanding shares of ANI are to be exchanged for cash, notes, securities or
any other consideration issued, or caused to be issued, by the acquiring company
or its subsidiary (each of the foregoing (i), (ii) and (iii), a "DISPOSITION"),
and such Disposition has either been determined by ANI's Board of Directors to
be an offer which, but for the obligations of ANI under this Section 2, the
Board of Directors would accept and recommend to its stockholders for approval
or acceptance or, in the case of an offer to the ANI Stockholders directly, such
ANI Stockholders desire to accept, then, before acceptance of such offer, ANI
and/or the ANI Stockholders, as applicable, shall give NVC written notice (a
"DISPOSITION NOTICE") of the proposed Disposition which shall include: (a) the
name(s) and address(es) of the proposed transferee or acquirer, or group of
transferees or acquirers (the "ACQUIRING PERSON(S)"), (b) a description of the
Offered Assets and liabilities to be assumed by the Acquiring Person(s), if
applicable, pursuant to the proposed Disposition, or the Offered Securities to
be purchased, if applicable, (c) the proposed consideration to be received
pursuant to the proposed Disposition (in its form as consideration proposed to
be paid by such Acquiring Person(s), the "PROPOSED CONSIDERATION") and the
timing and manner of payment thereof, and (d) the other material terms and
conditions of the proposed Disposition. By giving such Disposition Notice, ANI
and/or the ANI Stockholders, as applicable, shall be deemed to have granted to

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NVC the option (a "PURCHASE OPTION") to purchase the Offered Assets or Offered
Securities or effect a Disposition of the type described in clause (iii) above,
as applicable, and assume the liabilities, that are described in the Disposition
Notice at a price equal to the same consideration (subject to paragraph 2.2
below) and on the same payment terms and conditions as are set forth in the
Disposition Notice (collectively, an "NVC PURCHASE"). NVC shall have 10 days
from its receipt of the Disposition Notice to exercise its Purchase Option.
NVC's notice of exercise shall include a description of the consideration, which
in any event shall be subject to meeting the requirements set forth in Section
2.2 below, to be paid by NVC pursuant to the proposed NVC Purchase (the "NVC
CONSIDERATION").

         2.2 PAYMENT OF CONSIDERATION. Any portion of the Proposed Consideration
proposed to be paid by the Acquiring Person(s) in cash shall be paid by NVC in
cash. In the event the Proposed Consideration includes any Non-Monetary
Consideration, NVC may pay such non-cash portion of the consideration in the
form of either (i) cash; or (ii) Non-Monetary Consideration which is of equal
value to the value of the Non-Monetary Consideration contained in the Proposed
Consideration, is of substantially the same quality and, in the case of
promissory notes and other deferred payment obligations, is of substantially
equivalent credit quality, as the Non-Monetary Consideration contained in the
Proposed Consideration and contains substantially the same mix of types of
Non-Monetary Consideration as is contained in the Proposed Consideration. For
purposes of this Section 2, the term "Non-Monetary Consideration" shall mean any
portion of the Proposed Consideration or NVC Consideration which is not cash.
Non-Monetary Consideration shall be valued at the Appraised Value thereof. In
determining the "quality" or "credit quality" of an item of Non-Monetary
Consideration for purposes of this Section 2.2, reference shall be made to
considerations such as (i) in the case of common stock or other securities,
whether there is a public market for such securities, the trading volume or lack
of trading volume of such securities, whether or not such securities are
registered for public sale, the size of the public float of such securities, the
market capitalization of the issuer of such securities, the analyst following of
the issuer of such securities, the credit worthiness of the issuer of such
securities, the size of the stockholder base of the issuer of such securities,
the volatility of the trading market for such securities, and whether or not
such securities are listed on a national exchange or the NASDAQ National Market;
and (ii) in the case of a promissory note or other deferred payment obligation,
the credit worthiness of the debtor, the cash and other resources of the debtor,
the debtor's other liabilities and obligations, and the condition and future
prospects of the debtor, and, in each case, such other considerations as are
relevant to such determination.

         2.3 DETERMINATION OF VALUE AND QUALITY; APPRAISAL PROCEDURE. If the
consideration set forth in the Disposition Notice includes Non-Monetary
Consideration and the parties fail to agree on the Appraised Value of such
Non-Monetary Consideration within 10 days of NVC's exercise of its Purchase
Option, the parties shall within 10 days submit such matter to the determination
of an Independent Financial Expert selected by NVC, such Independent Financial
Expert to be engaged with the understanding that such determination is required
from such Independent Financial Expert no later than 20 days following such
engagement. If the NVC Consideration includes Non-Monetary Consideration and the
parties fail to agree on the Appraised Value (including without limitation,
quality or credit quality, as applicable), of the Non-Monetary portion of the
NVC Consideration within ten days of NVC's exercise of its Purchase Option, the

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parties shall within 10 days submit such matter to the determination of an
Independent Financial Expert selected by NVC, such Independent Financial Expert
to be engaged with the understanding that such determination is required from
such Independent Financial Expert no later than 20 days following such
engagement. In either case, NVC shall within such 10-day period provide ANI with
prompt written notice of the name of the Independent Financial Expert selected
by NVC. If ANI disagrees with the selection of any such Independent Financial
Expert and ANI delivers a written notice to NVC objecting to such Independent
Financial Expert within 10 days of its receipt of written notice of the name of
such Independent Financial Expert, then the determination of Appraised Value or
quality or credit quality which such Independent Financial Expert was to
determine shall instead be determined by the average of three Independent
Financial Experts selected as follows within the next 10 days of ANI's delivery
of its notice (i) one Independent Financial Expert selected by NVC, (ii) one
Independent Financial Expert selected by ANI, and (iii) one Independent
Financial Expert selected by the two Independent Financial Experts selected
pursuant to (i) and (ii). In the event the determination of the Independent
Financial Expert(s) as to either Appraised Value or quality or credit quality of
the Non-Monetary portion of the NVC Consideration is less than the Proposed
Consideration, NVC may at its option withdraw its exercise of its Purchase
Option; provided that if NVC has not, within 10 days following such a
determination, modified the NVC Consideration to meet the requirements of
Section 2.2 herein, NVC shall be deemed to have withdrawn the exercise of its
Purchase Option. In either such case NVC shall have no obligation to effect an
NVC Purchase pursuant to its exercise of the Purchase Option, and ANI and/or the
ANI Stockholders may effect the Disposition to the party specified in the
Disposition Notice on terms no less favorable to ANI and/or the ANI
Stockholders, as applicable, than those set forth in the Disposition Notice as
adjusted for the lesser of the Appraised Value of the NVC Consideration or the
Proposed Consideration, at any time within 180 days following such withdrawal or
deemed withdrawal. If ANI and/or the ANI Stockholders, as applicable, fail to
conclude such sale within such 180-day period, the proposed Disposition shall
again become subject to the preferential right set forth in this Section 2. In
the event NVC's exercise of its Purchase Option is not withdrawn or deemed to be
withdrawn pursuant to the provisions of this Section 2.3, the parties will in
good faith negotiate and seek to enter into mutually acceptable definitive
documentation regarding an NVC Purchase on terms consistent with the Disposition
Notice. If the parties fail to enter into such definitive documentation within
30 days after the parties' agreement regarding, or the determination of,
Appraised Value and quality, NVC shall have no obligation to effect an NVC
Purchase pursuant to its exercise of the Purchase Option, and ANI and/or the ANI
Stockholders may effect the Disposition to the party specified in the
Disposition Notice on terms no less favorable to ANI and/or the ANI
Stockholders, as applicable, than those set forth in the Disposition Notice, at
any time within 180 days following the expiration of such 30-day period. If ANI
and/or the ANI Stockholders, as applicable, fail to conclude such sale within
such 180-day period, the proposed Disposition shall again become subject to the
preferential right set forth in this Section 2.

         2.4 EXPIRATION OF RIGHT. The First Refusal Period shall commence on the
date hereof and terminate nine months from the date hereof (the "TERMINATION
DATE"); provided, however, that

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                  (i) if, as of the Termination Date, ANI shall have received
any inquiry or proposal or request for information from any potential Acquiring
Person(s), which inquiry shall have advanced to such point that as of the
Termination Date the potential Acquiring Person(s) shall have entered into a
letter of intent with ANI or any ANI Stockholder, submitted a written letter
expressing interest, or commenced a due diligence investigation of ANI with
ANI's consent, or

                  (ii) if, as of the Termination Date, ANI shall have initiated
contact with or made, solicited or encouraged any inquiries or proposals from
any potential Acquiring Person(s);

and, as a result of (i) or (ii) above, ANI shall participate in discussions or
negotiations leading to an offer within the 90 day period immediately following
the Termination Date, such offer shall be subject to the provisions of this
Section 2 notwithstanding the expiration of the original First Refusal Period at
the time such offer is actually made. ANI agrees to use its best efforts to keep
NVC apprised of any potential Acquiring Persons, consistent with any
confidentiality obligations it may have with respect to such information.

         2.5 COST OF INDEPENDENT FINANCIAL EXPERT. The cost of the Independent
Financial Expert selected by NVC shall be paid by NVC, unless ANI accepts the
determination of NVC's Independent Financial Expert, in which event ANI shall
pay 1/2 of the cost of such expert. The cost of the Independent Financial
Expert, if any, selected by ANI, shall be paid by ANI. The cost of the
Independent Financial Expert, if any, mutually selected by the two Independent
Financial Experts appointed by each of NVC and ANI shall be paid 1/2 by NVC and
1/2 by ANI.

3.  CREDIT FOR NVC PAYMENTS.

         3.1 CREDIT UPON NVC ACQUISITION OF ANI. If NVC shall at any time other
than pursuant to an exercise of its Purchase Option acquire: (i) all or
substantially all of ANI's assets or properties, or (ii) equity or debt
securities of ANI that would (or could upon exercise, exchange or conversion)
result in NVC owning more than 50% of the outstanding equity securities of ANI,
or (iii) the business of ANI by means of a merger, consolidation, share exchange
or other business combination or similar transaction in which 50% or more of the
outstanding shares of ANI are to be exchanged for cash, notes, securities or
other consideration issued or caused to be issued by NVC or its Affiliates (each
of the foregoing (i), (ii) and (iii), an "OTHER NVC ACQUISITION"), then the
amount of all NVC Payments made through the closing date for the Other NVC
Acquisition shall be credited as already paid by NVC. The amount of such NVC
Payments shall therefore be deducted from the aggregate consideration to be paid
by NVC in connection with such purchase. Unless NVC shall otherwise elect, the
amount of such payments shall first be deducted from the amount of any cash
component of the consideration to be paid by NVC, and thereafter, any excess
shall be deducted from such component or components of the consideration to be
paid by NVC as NVC shall elect. In the event that NVC shall exercise this right,
ANI and NVC agree that the license granted pursuant to Section 3 of the
Development and License Agreement shall be deemed terminated, the rights of NVC
pursuant to Section 4.2 of the Development and License Agreement shall
automatically be assigned to ANI and the Parties shall have no further
obligations with respect to such provisions. This Section 3.1 and the rights and
obligations of the parties hereunder shall terminate on the date that is one
year from the Effective Date.

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         3.2 CREDIT FOR PURCHASE OF ANI COMMON STOCK; TERMINATION OF LICENSE .
ANI hereby grants NVC the right at any time during the First Refusal Period to
purchase Common Stock of ANI at a purchase price of $881.72 per share with the
NVC Payments then credited to NVC. NVC may exercise this right only with respect
to the full amount of the NVC Payments as at the time of exercise and not in
part. NVC shall be entitled to that number of shares which results from dividing
the aggregate amount in NVC Payments made up to the date of purchase of such
shares by the $881.72 per share price. In the event that NVC shall exercise this
right, ANI and NVC agree that the license granted pursuant to Section 3 of the
Development and License Agreement shall be deemed terminated, the rights of NVC
pursuant to Section 4.2 of the Development and License Agreement shall
automatically be assigned to ANI and the Parties shall have no further
obligations with respect to such provisions.

4.       DISTRIBUTIONS  FROM ANI.

         4.1. DISTRIBUTIONS. For each fiscal quarter of ANI commencing on
January 1, 2003 and ending with the fiscal quarter ended December 31, 2008 (the
"FINAL DISTRIBUTION QUARTER"), NVC shall be entitled to distributions out of the
Adjusted Operating Income of ANI until NVC shall have received distributions
pursuant to this Section 4.1; provided, however, that the maximum aggregate
amount to be paid pursuant to this Section 4.1 shall be $1,000,000. For each
such quarter, NVC shall be entitled to a distribution from ANI equal to 10% of
ANI's Adjusted Operating Income for such quarter. ANI shall provide to NVC
within forty (40) days after the end of each of the first three quarters of each
such year and eighty (80) days after the end of the final quarter of each such
year up to the Final Distribution Quarter a report setting forth (i) its Gross
Revenues with respect to such quarter, (ii) the amounts received by it from NVC
during such quarter pursuant to the Development and License Agreement, (iii) its
Adjusted Operating Income with respect to such quarter, and (iv) its
expenditures for selling, general and administrative expenses and research and
development during such quarter. Such report shall be accompanied by payment to
NVC equal to 10% of ANI's Adjusted Operating Income for such quarter. All
payments shall be made by check or wire transfer in US Dollars to such address
or bank account as may be designated by NVC from time to time.

         4.2. BOOKS AND RECORDS. ANI shall keep complete and accurate books and
records of all Gross Revenues and Adjusted Operating Income, which may be
inspected by NVC from time to time upon reasonable notice. If any such
inspection discloses underpayments of distributions required by this section for
any period inspected, ANI shall pay such amount promptly with interest from the
date initially due at a rate of 1.5% per month (or, if less, the highest amount
permitted by law). If the additional amount determined to be due to NVC with
respect to any quarter following an inspection exceeds 5% of the amount timely
paid for such quarter, then in addition to the amount of such underpayment and
interest, ANI shall reimburse NVC for the reasonable cost of its inspection or
audit of ANI's books and records.

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         4.3. TERMINATION. The rights granted in this Section shall terminate in
the event that NVC shall exercise its rights pursuant to Section 3 above to have
the amount of the NVC Payments credited to the purchase of ANI or ANI shares.

5.  AMENDMENTS; WAIVERS.

         No modifications or amendments to this Agreement shall be valid unless
in writing and signed by and on behalf of ANI, NVC and, if such amendment would
affect the obligations of an ANI Stockholder, such Stockholder. No waiver shall
be valid unless signed and delivered by the party to be charged.

6.  ENTIRE AGREEMENT.

         This Agreement and the Development and License Agreement constitute the
entire agreement between the Parties hereto with respect to the subject matter
hereof. There are no agreements, understandings, covenants, conditions or
undertakings, oral or written, express or implied, concerning such subject
matter that are not merged herein or superseded hereby.

7.  SEVERABILITY.

         Whenever possible, each provision of this Agreement will be interpreted
in such manner as to be effective and valid under applicable law. If any
provision of this Agreement is invalid or unenforceable, the remaining
provisions shall be fully enforceable and the invalid or unenforceable provision
shall be automatically replaced by a provision that is as similar as possible in
terms to such invalid or unenforceable provision, but is valid and enforceable.

8.  GOVERNING LAW.

         This Agreement shall be governed by and construed in accordance with
the laws of The Commonwealth of Massachusetts without regard to its conflict of
laws principles.

9. BINDING EFFECT.

         This Agreement and the rights and obligations of the parties hereunder
shall inure to the benefit of, and be binding upon, their respective successors,
assigns and legal representatives, but shall not otherwise be for the benefit of
any third party.

10.  NOTICES.

         Any notice required or permitted by any provision of this Agreement
shall be given in writing and shall be delivered personally or by courier, or by
registered or certified mail, postage prepaid, addressed: if to ANI or NVC, to
the address for such party given in the Development and License Agreement and,
if to any ANI Stockholder, to the address given for such Stockholder on the
signature page hereto. Notices that are mailed shall be deemed received five (5)
days after deposit in the United States mail. Notices sent by courier or
overnight delivery shall be deemed received two (2) days after they have been so
sent.

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11.  FURTHER INSTRUMENTS AND ACTIONS.

           The parties agree to execute such further instruments and to take
such further action as may reasonably be necessary to carry out the intent of
this Agreement.

12.  COUNTERPARTS.

         This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

13.  MEDIATION AND ARBITRATION.

       Any and all claims, disputes or controversies between the parties arising
under or in connection with this Agreement which have not been settled or
resolved among the parties over a period of thirty (30) days (a "DISPUTE"),
shall be settled and resolved as follows:

         (a) Either party, upon concluding that the parties are unable or
         unlikely to resolve a Dispute by good faith negotiation, may initiate
         mediation pursuant to the Commercial Mediation Rules then in force of
         the American Arbitration Association (the "AAA") by providing notice
         thereof to the other party, stating in reasonable detail the nature of
         such dispute, with two copies thereof to the AAA.

         (b) If the representatives of the parties have not been able to resolve
         the Dispute within the earlier of fifteen (15) days after the first
         such mediation hearing and within sixty (60) days after the notice of
         the Dispute, then either party may require, by a written request to the
         AAA (with Notice to the other party containing a copy of such request)
         that the Dispute be settled by binding arbitration in accordance with
         the Commercial Arbitration Rules then in force of the AAA. The
         arbitration shall be before a panel of three arbitrators, each such
         arbitrator to have substantial experience in the matters that are the
         subject of the Dispute and to have relevant industry background and
         experience. Nothing contained in this Section 13 shall be construed to
         limit or preclude a party from bringing any action in any court of
         competent jurisdiction for injunctive or other provisional relief to
         compel the other parties to comply with its obligations hereunder
         during the pendency of the arbitration proceedings. The arbitrator
         shall have no power to alter, amend, revoke or suspend any of the
         provisions of this Agreement. Each of the parties shall bear its own
         and its representative's expenses and all other expenses in connection
         with the arbitration proceedings shall be borne by the parties as may
         be determined by the Commercial Arbitration Rules, provided however
         that the arbitrator may in its sole discretion assess any or all of the
         expenses against any party or parties as deemed equitable by the
         arbitrator. Except to the extent required by law, neither party to this
         Agreement, arbitrator, representative, counsel or witness shall
         disclose or confirm to any person not present at the arbitration
         hearings any information about the hearings, including the names of the
         parties and arbitrator, the nature and amount of the claims, the
         financial condition of any party, the expected date of hearing or the
         award made.

                             SIGNATURE PAGE FOLLOWS

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         IN WITNESS WHEREOF, the Parties hereto have executed this RIGHT OF
FIRST REFUSAL, CREDIT OF PAYMENTS AND REVENUE SHARING AGREEMENT to be effective
as of the Effective Date.

NEW VISUAL CORPORATION                               ADAPTIVE NETWORKS, INC.

By:  /S/  C. RICH WILSON III                         By:  /S/ MICHAEL PROPP

Name:  C. Rich Wilson                                Name:  Michael Propp

Title:  V.P. Bus. Dev., Corp. Sec.                   Title:  President

ANI STOCKHOLDERS

/S/ Illegible
Name: David Propp
Address

/S/ MICHAEL PROPP
Name: Michael Propp
Address:

                                       10<PAGE>

EXHIBIT 10.17

          RECEIVABLE PURCHASE AND STOCK TRANSFER RESTRICTION AGREEMENT

         This Receivable Purchase and Stock Transfer Restriction Agreement
("AGREEMENT") is made as of April 17, 2002 to be effective as of the Effective
Date, as defined below, by and among New Visual Corporation, a Utah corporation
("NVC"), Zaiq Technologies, Inc., a Delaware corporation ("ZAIQ"), and Adaptive
Networks, Inc., a Massachusetts corporation ("ANI"). NVC, ZAIQ and ANI are each
referred to as a "PARTY" and collectively referred to as the "PARTIES."

                              PRELIMINARY STATEMENT

         As of the Effective Date, ANI has accumulated indebtedness to ZAIQ that
is represented by a receivable of ZAIQ, payable by ANI. ZAIQ desires to sell,
and NVC desires to purchase the ANI receivable from ZAIQ, for a purchase price
consisting of $250,000 in cash and 3,192 shares of Series B Preferred Stock, par
value $.01 per share, of NVC (the "PREFERRED STOCK") in accordance with the
terms and subject to the conditions set forth herein. This Agreement shall not
apply to indebtedness of any kind owed by ANI to ZAIQ in respect of any period
from and after the Effective Date, or the respective rights and obligations of
ANI and ZAIQ in connection with products and services provided by ZAIQ to ANI
from and after the Effective Date. ZAIQ and NVC further desire to agree to
certain restrictions on the transfer of the Securities (as defined below) to be
issued to ZAIQ.

                                    AGREEMENT

         The Parties, intending to be legally bound, agree as follows:

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

         1.1 "ADVERSE CLAIM" means a lien, security interest or other charge or
encumbrance, claim or any other type of preferential arrangement.

         1.2 "COMMON STOCK" shall refer to the Common Stock of NVC, par value
$.001.

         1.3 "CONVERSION STOCK" shall refer to the Common Stock into which the
Preferred Stock is convertible pursuant to the Designation.

         1.4 "DESIGNATION" shall refer to the designation of the rights,
preferences and privileges of the Series B Preferred Stock of NVC as filed with
the Utah Department of Commerce, Division of Corporations and Commercial Code,
and substantially in the form attached as Exhibit A hereto.

                                       1
<PAGE>

         1.5 "EFFECTIVE DATE" shall mean the Effective Date of that certain
Development and License Agreement entered into or to be entered into between NVC
and ANI and of this Agreement and the Related Documents. As of the Effective
Date, the closing of the transactions contemplated by the Development and
License Agreement and the transactions contemplated hereby shall have occurred,
or shall be occurring, and each such closing shall be conditioned upon the
completion of the other, and both such closings shall, when completed, be deemed
simultaneous.

         1.6 "FAIR MARKET VALUE PER SHARE" of a share of Common Stock shall mean
an amount determined as follows:

                           (i) If the Common Stock is traded on a stock
         exchange, an amount equal to the average of the daily closing selling
         prices of the Common Stock on the stock exchange reasonably determined
         by the Board of Directors to be the primary market for the Common Stock
         over the ten (10) trading day period ending on the date prior to the
         date of the event giving rise to the need to determine such Fair Market
         Value, as such prices are officially quoted in the composite tape of
         transactions on such exchange;

                           (ii) If the Common Stock is traded over-the-counter,
         an amount equal to the average of the daily closing selling prices (or,
         if such information is not available, the average of the daily closing
         bid and asked prices) of the Common Stock over the ten (10) trading day
         period ending on the date prior to the date of the event giving rise to
         the need to determine such Fair Market Value, as such prices are
         reported by the National Association of Securities Dealers through its
         NASDAQ system or any successor system; and

                  (iii) If no determination can be made on the basis set forth
         in either (i) or (ii) above, the Fair Market Value Per Share shall be
         an amount determined in good faith by the Board of Directors of NVC as
         of the date of the event giving rise to the need for such
         determination.

         The Fair Market Value Per Share of any share of Preferred Stock shall
mean the aggregate Fair Market Value of the shares of Conversion Stock issuable
upon conversion of such share of Preferred Stock.

         1.7 "PREFERRED STOCK" shall refer to the Series B Preferred Stock, par
value $.01 of NVC.

         1.8 "RECEIVABLE" means any indebtedness and other obligations owed to
ZAIQ by ANI or any right of ZAIQ to payment from or on behalf of ANI, whether
constituting an account, chattel paper, instrument or general intangible,
arising in connection with the sale of goods or the rendering of services by
ZAIQ prior to the Effective Date and includes, without limitation, the
obligation to pay any finance charges, fees and other charges with respect
thereto.

                                       2
<PAGE>

         1.9 "REGISTRATION RIGHTS AGREEMENT" means that certain Registration
Rights Agreement entered into as of the Effective Date by and between ZAIQ and
NVC, substantially in the form of Exhibit B hereto.

         1.10 "RELATED DOCUMENTS means this Agreement, the Designation, the
Registration Rights Agreement and any other agreement, instrument, certificate
or other document entered into in connection herewith or therewith or relating
to the transactions contemplated hereby and thereby.

         1.11 "RELATED SECURITY" means, with respect to the Receivable:

                  (i) all security interests or liens and property subject
         thereto from time to time purporting to secure payment of such
         Receivable, together with all UCC financing statements or similar
         filings relating thereto; and

                  (ii) all guaranties, indemnities, insurance and other
         agreements or arrangements of whatever character from time to time
         supporting or securing payment of such Receivable or otherwise relating
         to such Receivable, whether pursuant to any contract or agreement
         related to such Receivable or otherwise.

         The parties agree that under no circumstances will ANI warrants that
         have been or may in the future be issued to ZAIQ ever be considered to
         be "Related Security" hereunder.

         1.12 "SECURITIES" shall refer to the Preferred Stock and the Conversion
Stock.

2.       PURCHASE AND SALE OF RECEIVABLE

         2.1. SALE OF RECEIVABLE. Subject to the terms and conditions set forth
in this Agreement, including the delivery of the Purchase Price, as set forth
below, as of the Effective Date, ZAIQ does hereby sell, convey, assign and
deliver to NVC, its successors and assigns, without set off, all of ZAIQ's
right, title and interest in and to the Receivable and any Related Security, on
an as is, where is basis, without recourse, and without representation or
warranty of any kind, other than as may be expressly set forth herein. NVC will
not have any claim, cause of action or right of offset against ZAIQ arising out
of a past, present or future dispute between ANI and ZAIQ relating to any
products or services provided to ANI by ZAIQ related to the Receivable,
including without limitation disputes as to the quality, value or effectiveness
of such products or services; provided, however, that nothing herein shall
affect ZAIQ's obligations to ANI respecting such products and services, as set
forth in the Services Agreement between ZAIQ and ANI, dated as of November 1,
2000 (the "Services Agreement"), or ANI's obligations to ZAIQ thereunder (except
with respect to the discharge of the Receivable in accordance with this
Agreement)

                                       3
<PAGE>

         2.2. COLLECTIONS. ZAIQ constitutes and appoints NVC the true and lawful
agent and attorney in fact of ZAIQ, with full power of substitution and
resubstitution, in whole or in part, in the name and stead of ZAIQ but on behalf
and for the benefit of NVC and its successors and assigns, from time to time:

                  (a) to demand, receive and collect any and all of the
Receivable or any Related Security and to give receipts and releases for and
with respect to the same, or any part thereof;

                  (b) to institute and prosecute, in its own name, any and all
proceedings at law, in equity or otherwise, which NVC or its successors and
assigns may deem proper to collect or reduce to possession any of the Receivable
or any Related Security and to collect or enforce any claim or right of any kind
hereby assigned or transferred, or intended so to be; and

                  (c) to do all things legally permissible, required, or
reasonably deemed by NVC to be required, to recover and collect the Receivable
or any Related Security.

         2.3 [RESERVED]

         2.4 DELIVERIES. As of the Effective Date ZAIQ will deliver to NVC all
documents evidencing or relating to the Receivable and all goods or other
property constituting any Related Security and all documents evidencing or
relating to any Related Security that are in the possession of ZAIQ, other than
proprietary documents of ZAIQ. ZAIQ will also deliver to NVC an opinion of
counsel to ZAIQ, dated as of the Effective Date, in form and substance
reasonably satisfactory to NVC and counsel to NVC.

         2.5 PARTIES ACKNOWLEDGEMENT OF SUBSTITUTION. ANI hereby acknowledges in
whole the transactions contemplated hereby, including the substitution of NVC as
the obligee in respect of the Receivable, and the discharge of its obligation to
ZAIQ in connection with the Receivable and the substitution therefor of its
obligation to NVC. ANI covenants to make all future payments with respect to the
Receivable to NVC. The Parties agree and acknowledge that from and after the
Effective Date, ANI's obligations to ZAIQ with respect to the Receivable will
cease, and ZAIQ will have no rights or recourse to ANI in respect of the
Receivable whatsoever. ZAIQ acknowledges that ANI has paid in full for, and that
ZAIQ has no ownership interest in, any products or services provided to ANI by
ZAIQ related to the Receivable. All ZAIQ's rights in the Receivable shall be
fully transferred to NVC. Except for claims, demands and liabilities arising out
of ZAIQ's obligations, if any, to ANI pursuant to the Services Agreement,
including, without limitation, any such arising out of products or services
provided by ZAIQ pursuant thereto, ANI hereby releases and discharges ZAIQ from
any claims, demands or liabilities which ANI had, may have had or now has
against ZAIQ, if any, from the beginning of the world to the date hereof.

         2.6 PARTIES ACKNOWLEDGEMENT OF AMOUNT. The Parties hereto hereby
acknowledge that as of the Effective Date the aggregate amount of the Receivable
is $3,442,000.

                                       4
<PAGE>

         2.7. FURTHER ASSURANCES. ZAIQ from time to time hereafter and without
further consideration, upon request of NVC, covenants and agrees to execute and
deliver all such other and additional instruments and other documents, and to
take all other actions, as may be reasonably necessary to more effectively
grant, convey, and assign all of the Receivable hereby granted, conveyed and
assigned, or intended so to be, and which are reasonably necessary or desirable
to facilitate the recognition of the transferred ownership of the Receivable.
Such separate instruments and documents (a) shall evidence the conveyance and
assignment of the applicable Receivable herein made and shall not constitute an
additional conveyance or assignment of the Receivable, (b) are not intended to
modify, and shall not modify, any of the terms, covenants and conditions herein
set forth, and (c) shall be deemed to contain all of the terms and provisions
hereof, as fully and to all intents and purposes as though the same were set
forth at length therein.

3.       PAYMENT OF PURCHASE PRICE

         3.1 PURCHASE PRICE - CASH AND PREFERRED STOCK. In full payment of the
purchase price for the Receivable (the "PURCHASE PRICE"), NVC shall pay to ZAIQ
the sum in cash of $250,000 (the "CASH COMPONENT") and issue and deliver to ZAIQ
3,192 shares of Preferred Stock (the "SHARES").

         3.2 DELIVERIES. The Cash Component shall be payable in two installments
of which $100,000 shall be payable on the Effective Date and $150,000 shall be
payable within forty-five days of the Effective Date. As of the Effective Date,
NVC shall deliver to ZAIQ one or more stock certificates representing the
Shares. NVC will also deliver to ZAIQ an opinion of counsel to NVC, dated as of
the Effective Date, in form and substance reasonably satisfactory to ZAIQ and
counsel to ZAIQ.

4.       REPRESENTATIONS AND WARRANTIES OF ZAIQ

         ZAIQ represents and warrants to NVC the following:

         4.1 CORPORATE STATUS AND GOOD STANDING. ZAIQ is a corporation duly
organized, validly existing, and in good standing under the laws of Delaware.

         4.2 AUTHORIZATION OF TRANSACTION. ZAIQ has full power and authority to
execute and deliver this Agreement and the other Related Documents and to
perform its obligations hereunder and thereunder. The execution and delivery of
this Agreement and the other Related Documents by ZAIQ and the consummation by
ZAIQ of the transactions contemplated hereby and thereby have been duly and
validly authorized by all necessary corporate action. This Agreement and the
other Related Documents constitute the valid and legally binding obligations of
ZAIQ, enforceable in accordance with their terms and conditions, except as
enforceability may be limited by general equitable principles, bankruptcy,
insolvency, reorganization, moratorium or other laws affecting creditors' rights
generally.

                                       5
<PAGE>

         4.3 CONSENTS AND APPROVALS. ZAIQ need not give any notice to, make any
filing with, or obtain any authorization, consent, or approval of any government
or governmental agency in order to consummate the transactions contemplated by
this Agreement and the other Related Documents.

         4.4 NON-CONTRAVENTION. Neither the execution and the delivery of this
Agreement and the other Related Documents, nor the consummation of the
transactions contemplated hereby and thereby will violate in any material
respect any constitution, statute, regulation, rule, injunction, judgment,
order, decree, ruling, charge, or other restriction of any government,
governmental agency, or court to which ZAIQ is subject or any provision of its
certificate of incorporation or bylaws. Except as obtained prior to the
execution of this Agreement and the other Related Documents and delivered to
NVC, no approval, waiver or consent by ZAIQ under any instrument, contract or
agreement to which ZAIQ is a party is necessary to consummate the transactions
contemplated hereby and thereby.

         4.5 NO DEFENSE. Except as set forth on Exhibit C, the Receivable
represents all indebtedness to ZAIQ of ANI for products or services through the
Effective Date.

         4.6 TITLE. ZAIQ is the legal and beneficial owner of the Receivable and
any Related Security, free and clear of any Adverse Claim of any party. Upon
purchase, NVC shall acquire a valid and enforceable undivided ownership interest
in the Receivable, free and clear of any Adverse Claim of any party. ZAIQ has
not sold or otherwise transferred any interest in the Receivable or any Related
Security prior to the date hereof. Except with respect to the existing liens of
Silicon Valley Bank, ZAIQ has not granted to any party any security interest in
its own assets which could constitute an Adverse Claim on the Receivable or any
Related Security prior to the date hereof. Except with respect to the existing
liens of Silicon Valley Bank, no effective financing statement or similar
instrument covering the Receivable or any Related Security or collections and
other proceeds with respect thereto is on file in any recording office.

         4.7 NO ACTIONS. There is no pending or threatened action or proceeding
affecting ZAIQ before any governmental authority or arbitrator which could
reasonably be expected to adversely affect the ability of ZAIQ to perform its
obligations under the Agreement or the other Related Documents or the
collectibility of the Receivable, or which affects or purports to affect the
legality, validity or enforceability of the Agreement or the other Related
Documents.

         4.8 PURCHASE FOR ENTIRELY OWN ACCOUNT. ZAIQ hereby confirms that the
Securities to be received by ZAIQ will be acquired for investment for ZAIQ's own
account, not as a nominee or agent, and not with a view to the resale or
distribution of any part thereof, and that ZAIQ has no present intention of
selling, granting any participation in or otherwise distributing the same. By
executing this Agreement and the other Related Documents, ZAIQ further
represents that ZAIQ does not have any contract, undertaking, agreement or
arrangement with any person to sell, transfer or grant participations to such
person or to any third person, with respect to any of the Securities.

                                       6
<PAGE>

         4.9 DISCLOSURE OF INFORMATION. ZAIQ has had an opportunity to review
NVC's filings under the Securities Act and the Securities Exchange Act of 1934,
as amended, and has received all the information it considers necessary or
appropriate for deciding whether to purchase the Securities. ZAIQ further
represents that it has had an opportunity to ask questions and receive answers
from NVC regarding such filings, the terms and conditions of the offering of the
Securities and the business, properties, prospects and financial condition of
NVC.

         4.10 INVESTMENT EXPERIENCE. ZAIQ acknowledges that it can bear the
economic risk of its investment, and has such knowledge and experience in
financial or business matters that it is capable of evaluating the merits and
risks of the investment in the Securities.

         4.11 RESIDENCE; ACCREDITED INVESTOR. ZAIQ's principal residence is the
State of Massachusetts. ZAIQ is a corporation not formed for the specific
purpose of acquiring the Securities, with total assets in excess of $5,000,000.

         4.12 RESTRICTED SECURITIES. ZAIQ understands that the Securities it is
purchasing are characterized as "restricted securities" under the federal
securities laws inasmuch as they are being acquired from NVC in a transaction
not involving a public offering and that under such laws and applicable
regulations such Securities may be resold without registration under the
Securities Act (as defined in Section 5.6) only in certain limited
circumstances. In this connection, ZAIQ represents that it is familiar with Rule
144 promulgated by the SEC (as defined in Section 5.6) as presently in effect,
and understands the resale limitations imposed thereby and by the Securities
Act, including without limitation the Rule 144 condition that current
information about NVC be available to the public.

         4.13 LEGENDS. It is understood that the certificates evidencing the
Securities will bear a legend, the text of which will be substantially
equivalent to the following legend:

         "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
         REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
         "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED,
         SOLD, PLEDGED OR OTHERWISE TRANSFERRED OR DISPOSED OF UNLESS AND UNTIL
         SUCH SECURITIES ARE REGISTERED UNDER THE SECURITIES ACT AND APPLICABLE
         STATE SECURITIES LAWS OR AN EXEMPTION FROM SUCH REGISTRATION IS
         AVAILABLE. EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT THE
         COMPANY WILL NOT RECOGNIZE ANY TRANSFER OF THE SECURITIES REPRESENTED
         BY THIS CERTIFICATE IN THE ABSENCE OF AN OPINION OF LEGAL COUNSEL
         REASONABLY SATISFACTORY TO THE COMPANY STATING THAT AN EXEMPTION FROM
         SUCH REGISTRATION IS AVAILABLE.

                                       7
<PAGE>

         THE CORPORATION WILL FURNISH TO THE HOLDER OF THIS CERTIFICATE WITHOUT
         CHARGE ON WRITTEN REQUEST TO THE CORPORATION AT ITS PRINCIPAL PLACE OF
         BUSINESS A FULL STATEMENT OF THE POWERS, DESIGNATIONS, PREFERENCES AND
         RELATIVE, PARTICIPATING, OPTIONAL OR OTHER SPECIAL RIGHTS OF EACH CLASS
         OF STOCK OR SERIES THEREOF WHICH THE COPORATION IS AUTHORIZED TO ISSUE
         AND THE QUALIFCATIONS, LIMITATIONS OR RESTRICTIONS OF SUCH PREFERENCES
         AND/OR RIGHTS. SUCH FULL STATEMENT IS SET FORTH IN THE CORPORATION'S
         ARTICLES OF INCORPORATION, AS AMENDED OR RESTATED, ON FILE IN THE STATE
         OF UTAH.

         THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE FURTHER SUBJECT TO
         CERTAIN TRANSFER RESTRICTIONS THAT ARE SET FORTH IN A "RECEIVABLES
         PURCHASE AND STOCK TRANSFER RESTRICTION AGREEMENT," A COPY OF WHICH IS
         AVAILABLE FROM THE COMPANY UPON REQUEST. THE COMPANY WILL NOT RECOGNIZE
         ANY TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IN A
         MANNER THAT CONFLICTS WITH THIS AGREEMENT."

         4.14 ADVISORS. ZAIQ acknowledges that it has had the opportunity to
review this Agreement and the other Related Documents and the transactions
contemplated by this Agreement and the other Related Documents with ZAIQ's own
legal counsel. ZAIQ is relying solely on its legal counsel and tax advisors and
not on any statements or representations of NVC or any of NVC's agents for legal
or tax advice with respect to this investment or the transactions contemplated
by this Agreement and the other Related Documents.

5.       REPRESENTATIONS AND WARRANTIES OF NVC

         NVC represents and warrants to ZAIQ the following:

         5.1 CORPORATE STATUS AND GOOD STANDING. NVC is a corporation duly
organized, validly existing, and in good standing under the laws of Utah.

         5.2 AUTHORIZATION OF TRANSACTION. NVC has full power and authority to
execute and deliver this Agreement and the other Related Documents and to
perform its obligations hereunder and thereunder. The execution and delivery of
this Agreement and the other Related Documents by NVC and the consummation by
NVC of the transactions contemplated hereby and thereby have been duly and
validly authorized by all necessary corporate action. This Agreement and the
other Related Documents constitute the valid and legally binding obligations of

                                       8
<PAGE>

NVC, enforceable in accordance with the terms and conditions herein, except as
enforceability may be limited by general equitable principles, bankruptcy,
insolvency, reorganization, moratorium or other laws affecting creditors' rights
generally.

         5.3 CONSENTS AND APPROVALS. NVC does not need to give any notice to,
make any filing with, or obtain any authorization, consent or approval of any
government or governmental agency in order to consummate the transactions
contemplated by this Agreement and the other Related Documents, other than (a)
the filing of the Designation with the appropriate office in the State of Utah;
(b) such filings as are required pursuant to applicable federal and state
securities laws and blue sky laws, which filings will be effected within the
required statutory period; and (c) such consents, approvals, orders or
authorizations the failure of which to be made or obtained would not have any
change or effect that is or is reasonably likely to be materially adverse to the
financial condition, business or results of operations of NVC or impair the
ability of NVC to perform its obligations in any material respect, or impair the
title or value of any consideration to be delivered to Zaiq hereunder or afford
to NVC or any third party the right to rescind or void this agreement.

         5.4 NON-CONTRAVENTION. Neither the execution and the delivery of this
Agreement and the other Related Documents nor the consummation of the
transactions contemplated hereby and thereby will violate in any material
respect any constitution, statute, regulation, rule, injunction, judgment,
order, decree, ruling, charge, or other restriction of any government,
governmental agency, or court to which NVC is subject or any provision of its
articles of incorporation or bylaws. Except as obtained prior to the Effective
Date of this Agreement and the other Related Documents, no approval, waiver or
consent by NVC under any instrument, contract or agreement to which NVC is a
party is necessary to consummate the transactions contemplated hereby and
thereby.

         5.5 VALIDITY OF ISSUANCE. As of the Effective Date, the Preferred Stock
is duly authorized and when issued, sold and delivered in accordance with the
terms of this Agreement for the consideration expressed herein, will be duly and
validly issued, fully paid and nonassessable and will have the rights,
preferences and privileges specified in the Designation. As of the Effective
Date, the Conversion Stock is duly authorized and has been reserved for issuance
upon conversion of the Preferred Stock, and, when issued upon conversion in
accordance with the terms of the Designation will be duly and validly issued,
fully paid and nonassessable.

         5.6 SEC FILINGS. NVC has filed all forms, reports, statements and other
documents (the "REPORTS") required to be filed by it with the Securities and
Exchange Commission ("SEC"). The Reports (a) were prepared in all material
respects in accordance with the Securities Act of 1933, as amended (the
"SECURITIES ACT") and the Securities Exchange Act of 1934, as amended (the
"EXCHANGE ACT"), as the case may be, and (b) did not at the time they were filed
(or, if amended or superseded by a filing prior to the Effective Date, then on
the date of such filing) contain any untrue statement of a material fact or omit

                                       9
<PAGE>

to state a material fact required to be stated therein or necessary in order to
make the statements therein, in the light of the circumstances under which they
were made, not misleading.

         5.7 CAPITALIZATION. As of the date hereof, the authorized capital stock
of NVC consists of (a) 100,000,000 shares of Common Stock and (b) 15,000,000
shares of preferred stock, par value $0.01 per share, of which 100,000 shares
have been designated Series A Junior Participating Preferred Stock (the "SERIES
A PREFERRED STOCK") and of which, as of the Effective Date, 4000 shares shall
have been designated Series B Preferred Stock. As of April 8, 2002, 45,209,452
shares of Common Stock and no shares of Series A Preferred Stock were
outstanding. As of April 8, 2002, there were outstanding options granted by NVC
exercisable for 5,748,750 shares of Common Stock, outstanding warrants granted
by NVC exercisable for 3,935,818 shares of Common Stock, and securities issued
by NVC convertible into 1,246,875 shares of Common Stock. Except as specifically
set forth above, NVC had no other securities issued or outstanding as of April
8, 2002.

6.       OBSERVER RIGHTS

         6.1 RIGHT TO OBSERVER ON BOARD. For so long as ZAIQ shall continue to
hold at least one half of the 3192 shares of Series B Preferred Stock originally
issued to it pursuant to this Agreement (as such number may be adjusted in the
event of any stock split or other subdivision, reverse stock split or other
combination, stock dividend or other recapitalization of the Series B Preferred
Stock), ZAIQ shall be entitled to designate one individual reasonably acceptable
to NVC to attend all meetings of NVC's Board of Directors (including without
limitation all regular and/or special meetings, including all telephonic and/or
videophonic meetings) in a nonvoting observer capacity, and to receive all
proposed written consents to action at the same time such materials are provided
to NVC's Board of Directors. Such observer shall be given copies of all notices,
minutes, consents, proposed consents and other materials that NVC provides to
its directors at the same time such materials are provided to such directors;
provided, however, that such representative shall agree to hold in confidence
(unless and until such information is disclosed by the company or otherwise
becomes known to persons outside of NVC through no fault of such representative
or of ZAIQ, and further provided that such representative will be entitled to
share such information with ZAIQ's board of directors and management) and trust
and to act in a fiduciary manner with respect to all information so provided;
and provided further that NVC reserves the right to withhold any information and
to exclude such representative from any meeting or portion thereof if access to
such information or attendance at such meeting: (I) in the good faith judgment
of the Board could adversely affect the attorney-client privilege between NVC
and its outside counsel or cause the Board to breach its fiduciary duties, or
(II) in the good faith judgment of the Board would result in disclosure of trade
secrets to such nonvoting representative, unless such representative executes a
non-disclosure agreement reasonably satisfactory to NVC, or (III) in the good
faith judgment of the Board involves a conflict of interest due to ZAIQ's or the
nonvoting representative's relationships with NVC or its affiliates. ZAIQ and
such representative agrees to abide by NVC's insider trading policies applicable
to directors generally, and acknowledges that conversion of the Series B
Preferred Stock may not be permissible while ZAIQ or such representative is in
possession of material, non-public information of NVC.

                                       10
<PAGE>

         6.2 MEMBER OF ADVISORY BOARD. For so long as ZAIQ shall continue to
hold at least one half of the 3192 shares of Series B Preferred Stock originally
issued to it pursuant to this Agreement (as such number may be adjusted in the
event of any stock split or other subdivision, reverse stock split or other
combination, stock dividend or other recapitalization of the Series B Preferred
Stock), ZAIQ shall be entitled to designate one individual reasonably acceptable
to NVC to be appointed by NVC to serve as an Advisory Director of NVC, which
Advisory Director shall have responsibilities determined as set forth in Section
3.5 of NVC's Bylaws.

7.       RESTRICTIONS ON TRANSFER OF SECURITIES

         7.1 NO TRANSFER IN VIOLATION OF THIS SECTION 7. Except as provided in
this Section 7, ZAIQ will not sell, assign, transfer, pledge, hypothecate or
otherwise encumber or dispose of (collectively referred to as a "TRANSFER") all
or any part of or any interest in the Securities now or hereafter owned or held
by it. Any sale, assignment, transfer, pledge, hypothecation or other
encumbrance or disposition of Securities not made in conformance with this
Section 7 shall be null and void, shall not be recorded on the books of NVC and
shall not be recognized by NVC. NVC may require, as a condition to recognizing
the validity of any Transfer to a transferee permitted by this Section 7 (a
"PERMITTED TRANSFEREE"), that such Permitted Transferee execute a written
document agreeing to be bound by the provisions regarding Transfers contained in
this Section 7, provided, however, that this requirement shall not apply to
Permitted Transferees purchasing shares in a transaction meeting the manner of
sale requirements of paragraphs (f) and (g) of Rule 144 under the Securities
Act. Any Transfer of Securities to NVC pursuant to the Designation, or
otherwise, shall be deemed to be in compliance with this Section 7 and shall not
be subject to the restrictions set forth in Section 7.4.

         7.2 TRANSFERS PURSUANT TO REGISTRATION OR EXEMPTION. In addition to the
restrictions set forth in Sections 7.3 and 7.4 below, no Transfer of Securities
may be made unless such Transfer is (a) in a sale pursuant to an effective
registration statement under the Securities Act and applicable state securities
laws or (b) in a sale pursuant to an exemption from such registration
requirements; provided, however, that NVC may require the transferor to provide
NVC with an opinion of counsel, which counsel shall be reasonably satisfactory
to NVC, to the effect that such Transfer is so exempt.

         7.3      RIGHT OF FIRST REFUSAL.

                  (a) TRANSFER NOTICE. If at any time ZAIQ proposes (x) to
         transfer Securities to one or more third parties pursuant to an
         understanding with such third parties or (y) to transfer Securities in
         a public sale, then ZAIQ shall give NVC written notice of ZAIQ's
         intention to make the Transfer (the "TRANSFER NOTICE"), which Transfer
         Notice shall include (i) a description of the Securities to be
         transferred ("OFFERED SHARES"), (ii) if such Transfer is described in
         clause (x) above, the identity of the prospective transferee(s) and

                                       11
<PAGE>

         (iii) the consideration and the material terms and conditions upon
         which the proposed Transfer is to be made. In connection with any
         Transfer described in clause (x) above, the Transfer Notice shall
         certify that ZAIQ has received a firm offer from the prospective
         transferee(s) and in good faith believes a binding agreement for the
         Transfer is obtainable on the terms set forth in the Transfer Notice,
         and shall also include a copy of any written proposal, term sheet or
         letter of intent or other agreement relating to the proposed Transfer.
         The Transfer Notice shall be delivered to NVC at least fourteen (14)
         days prior to the date ZAIQ proposes to consummate the proposed
         Transfer.

                  (b) NVC'S OPTION. NVC shall have an option for a period of
         fourteen (14) days from receipt of the Transfer Notice to elect to
         purchase the Offered Shares (I) in the case of a proposed Transfer
         described in clause (x) of paragraph (a) above, at the same price and
         subject to the same material terms and conditions as described in the
         Transfer Notice and (II) in the case of a proposed Transfer described
         in clause (y) of paragraph (a) above, at the Fair Market Value Per
         Share. NVC may exercise such purchase option and, thereby, purchase all
         or a portion of the Offered Shares by notifying ZAIQ in writing before
         expiration of such fourteen (14) day period as to the number of such
         Offered Shares which it wishes to purchase. If NVC gives ZAIQ notice
         that it desires to purchase such Offered Shares, then payment for the
         Offered Shares shall be made in cash (subject to subsection 7.3(c)
         below) against delivery of the Offered Shares to be purchased, at a
         place agreed upon between the parties and at the time of the scheduled
         closing therefor, unless the value of the purchase price has not been
         determined pursuant to paragraph (c) below.

                  (c) VALUATION OF PROPERTY. Should any portion of the purchase
         price specified in the Transfer Notice be payable in cash, evidences of
         indebtedness or securities of any entity, NVC shall have the right to
         pay such portion of the purchase price in cash, at the agreed to or
         appraised value as set forth below. Should any portion of the purchase
         price specified in the Transfer Notice be payable in property other
         than cash, evidences of indebtedness or securities of any entity, NVC
         shall have the right to pay such portion of the purchase price in the
         form of cash or in the form of equivalent property of NVC (which shall
         not include securities of NVC, unless NVC and ZAIQ otherwise agree)
         equal in amount to the value of such property (with the concept of
         equivalency to include, without limitation, equivalency of liquidity).
         If ZAIQ and NVC cannot agree on the values of any evidences of
         indebtedness, securities of any entity, or property offered as
         consideration in the Transfer Notice or on the values of any NVC
         property offered in lieu thereof, within ten (10) days after NVC's
         receipt of the Transfer Notice, the valuations shall be made by an
         appraiser of recognized standing selected by ZAIQ and NVC or, if they
         cannot agree on an appraiser within ten (10) days after NVC's receipt
         of the Transfer Notice, each shall select an appraiser of recognized
         standing and the two appraisers shall designate a third appraiser of
         recognized standing, whose appraisal shall be determinative of such
         values. The cost of such appraisal shall be shared equally by ZAIQ and
         NVC. If the time for the closing of NVC's purchase has expired but for
         the determination of the value of the purchase price offered by the
         prospective transferee(s) and any property offered by NVC, then such
         closing shall be held on or prior to the fifth business day after such
         valuations shall have been made pursuant to this subsection.

                                       12
<PAGE>

                  (d) ZAIQ RIGHT TO SELL To the extent that NVC has not
         exercised its rights to purchase the Offered Shares within the time
         periods specified in this Section, ZAIQ shall have a period of
         forty-five (45) days from the expiration of such rights in which to
         sell the Offered Shares upon terms and conditions (including the
         purchase price) no more favorable than those specified in the Transfer
         Notice, and, if applicable, to the proposed transferee(s) identified in
         the Transfer Notice which transferee(s) prior to the completion of the
         sale, transfer, or assignment shall have executed documents assuming
         the obligations of ZAIQ under this Agreement with respect to the
         transferred securities.

         7.4 RESTRICTIONS ON NUMBER OF SECURITIES SOLD. ZAIQ agrees that it will
not at any time sell a number of shares of NVC Common Stock in any continuous
ninety-day period which would total a number of Securities in excess of one
percent 1% of the outstanding shares of Common Stock of NVC as of the date of
any such sale. For purposes of the foregoing calculation, a Transfer of shares
of Preferred Stock shall be deemed to constitute a Transfer of the number of
shares of Conversion Stock then issuable upon conversion of such shares of
Preferred Stock.

         7.5 LIMITATIONS ON RESTRICTIONS. Notwithstanding the provisions of
Section 7.3 and 7.4 of this Agreement, ZAIQ may sell or otherwise assign, with
or without consideration, Securities to any company controlling, controlled by
or under common control with ZAIQ (an "Affiliate"), provided that such
Affiliate, prior to the completion of the sale, transfer, or assignment shall
have executed documents assuming the obligations of ZAIQ under this Agreement
with respect to the transferred Securities.

8.       GENERAL PROVISIONS

         8.1 SURVIVAL. The warranties, representations and covenants of the
Parties contained in or made pursuant to this Agreement shall survive the
execution and delivery of this Agreement for 12 months.

         8.2 EXPENSES. Each of the Parties will bear its own costs and expenses
(including legal fees and expenses) incurred in connection with this Agreement
and the transactions contemplated hereby and thereby.

         8.3 FINDER. Each Party represents that it neither is nor will be
obligated for any finders' fee or commission in connection with this
transaction.

         8.4 ENTIRE AGREEMENT. This Agreement and the Related Documents
(including the documents referred to herein) constitute the entire agreement
among the Parties and supersedes any prior understandings, agreements, or
representations by or among the Parties, written or oral, to the extent they
relate in any way to the subject matter hereof.

                                       13
<PAGE>

         8.5 AMENDMENTS AND WAIVERS. No amendment of any provision of this
Agreement shall be valid unless the same shall be in writing and signed by the
Parties. No waiver by any Party of any default, misrepresentation, or breach of
warranty or covenant hereunder and thereunder, whether intentional or not, shall
be deemed to extend to any prior or subsequent default, misrepresentation, or
breach of warranty or covenant hereunder and thereunder or affect in any way any
rights arising by virtue of any prior or subsequent such occurrence.

         8.6 NOTICES. All notices, requests, demands, claims, and other
communications hereunder and thereunder will be in writing. Any notice, request,
demand, claim, or other communication hereunder and thereunder shall be deemed
duly given if (and then two business days after) it is sent by (a) confirmed
facsimile; (b) overnight delivery; or (c) registered or certified mail, return
receipt requested, postage prepaid, and addressed to the intended recipient as
set forth below:

      IF TO NVC:                           COPY TO:
      ---------                            -------

      New Visual Corporation               Baker & McKenzie
      5920 Friars Road, Suite 104          2001 Ross Avenue, Suite 2300
      San Diego, California  92108         Dallas, Texas  75201
      Attn: Ray Willenberg, Jr.            Attn: Lawrence B. Mandala
      Facsimile: (619)718-7446             Facsimile: (214) 978-3099

                                           COPY TO:
                                           -------
      IF TO ZAIQ:
      ----------
                                           James Lightman, Esq.
      Zaiq Technologies, Inc.              576 Dutton Road
      78 Dragon Court                      Sudbury, MA  01776
      Woburn, MA  01801                    Facsimile: ________________
      Attn: Richard McAndrew
      Facsimile: (781) 932-7488

      IF TO ANI:                           COPY TO:
      ----------                           -------

      Adaptive Networks, Inc.              Morse, Barnes-Brown & Pendleton, P.C.
      94 Wells Avenue                      Reservoir Place, 1601 Trapelo Road
      Newton, Massachusetts                Waltham, MA 02451
      Attn: Michael Propp                  Attn: Peter N. Barnes-Brown
      Facsimile: (617) 969-6898            Facsimile: (781) 622-5933

Any Party may send any notice, request, demand, claim, or other communication
hereunder and thereunder to the intended recipient at the address set forth
above using any other means (including personal delivery, expedited courier,
messenger service, telecopy, telex, ordinary mail, or electronic mail), but no
such notice, request, demand, claim, or other communication shall be deemed to

                                       14
<PAGE>

have been duly given unless and until it actually is received by the intended
recipient. Any Party may change the address to which notices, requests, demands,
claims, and other communications hereunder and thereunder are to be delivered by
giving the other Parties notice in the manner herein set forth.

         8.7 SUCCESSION AND ASSIGNMENT. This Agreement shall be binding upon and
inure to the benefit of the Parties named herein and their respective successors
and permitted assigns. No Party may assign either this Agreement or any of its
rights, interests, or obligations hereunder and thereunder without the prior
written approval of the other Parties.

         8.8 CHOICE OF LAW; SECTION HEADINGS. Whenever applicable, provisions of
this Agreement conferring rights or obligations upon ZAIQ as a holder of shares
of NVC and describing limitations on those rights or obligations shall be
governed by and construed or interpreted in accordance with the Utah Revised
Business Corporation Act, the regulations thereunder and interpretations
thereof. The remaining provisions of this Agreement shall be governed by and
construed in accordance with the domestic laws of the State of California
without giving effect to any choice or conflict of law provision or rule
(whether of the State of California or any other jurisdiction) that would cause
the application of the laws of any jurisdiction other than the State of
California. The section headings contained in this Agreement are for reference
purposes only and shall not affect the meaning or interpretation of this
Agreement.

         8.9 SEVERABILITY. Any term or provision of this Agreement that is
invalid or unenforceable in any situation in any jurisdiction shall not affect
the validity or enforceability of the remaining terms and provisions hereof or
the validity or enforceability of the offending term or provision in any other
situation or in any other jurisdiction.

         8.10 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original and all of which
together shall be deemed to be one and the same instrument.

         8.11 AUTHORSHIP. The Parties agree that the terms and language of this
Agreement were the result of negotiations between the Parties and, as a result,
there shall be no presumption that any ambiguities in this Agreement shall be
resolved against either Party. Any controversy over construction of this
Agreement shall be decided without regard to events of authorship or
negotiation.

         8.12 FURTHER ACTIONS. Upon the request of any Party, the other Party
will (a) furnish to the requesting Party any additional information, (b) execute
and deliver, at their own expense, any other documents and (c) take any other
actions as the requesting Party may reasonably require to more effectively carry
out the intent of this Agreement.

                                       15
<PAGE>

         The Parties have executed and delivered this Agreement to be effective
as of the Effective Date.

NEW VISUAL CORPORATION

By: /S/ RAY WILLENBERG, JR.
        Ray Willenberg, Jr.
        President and Chief Executive Officer

ZAIQ TECHNOLOGIES, INC.

By:  /S/ RICHARD. T. MC ANDREW
Name:    Richard T. Mc Andrew
Title:   Chairman

ADAPTIVE NETWORKS, INC.

By: /S/ MICHAEL PROPP
Name:   Michael Propp
Title:  President

                                       16

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