Document:

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                                                                     Exhibit 4.3

         THE WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT
         (COLLECTIVELY, THE "SECURITIES") HAVE NOT BEEN REGISTERED UNDER THE
         SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE
         OF THE UNITED STATES (COLLECTIVELY, THE "ACTS"). THE SECURITIES MAY NOT
         BE SOLD, DISTRIBUTED, OFFERED, PLEDGED, ENCUMBERED, ASSIGNED OR
         OTHERWISE TRANSFERRED IN THE ABSENCE OF THE FOLLOWING: (1) AN EFFECTIVE
         REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE ACTS COVERING THE
         TRANSACTION, (2) THE COMPANY RECEIVES AN OPINION OF COUNSEL REASONABLY
         SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED
         UNDER THE ACTS, OR (3) THE COMPANY OTHERWISE SATISFIES ITSELF THAT
         REGISTRATION IS NOT REQUIRED UNDER THE ACTS.

WARRANT NO.: ________                                  NUMBER OF SHARES: 515,625
DATE OF ISSUANCE: FEBRUARY 4, 2004                       (SUBJECT TO ADJUSTMENT)

                             STOCK PURCHASE WARRANT

                          TO SUBSCRIBE FOR AND PURCHASE
                                 COMMON STOCK OF

                            DELPHAX TECHNOLOGIES INC.

                  THIS CERTIFIES THAT, for value received, Tate Capital Partners
Fund, LLC ("Investor"), or registered assigns, is entitled to subscribe for and
purchase from Delphax Technologies Inc. (the "Company"), a corporation organized
and existing under the laws of the State of Minnesota, at the price specified
below (subject to adjustment as noted below) at any time after August 5, 2004 to
and including February 4, 2008 (the "Expiration Date") (the "Share Number")
fully paid and nonassessable shares of common stock (the "Common Stock")
(subject to adjustment as noted below). This Warrant has been issued pursuant to
a Securities Purchase Agreement dated as of the date hereof by and among the
Investor, the other Investors named on the signature pages thereto and the
Company (the "Purchase Agreement"), pursuant to which, among other things, the
Company issued a 7% Convertible Subordinated Note in the original principal
amount of $3,000,000, dated as of the date hereof to the Investor (the
"Convertible Note").

                  The warrant purchase price (subject to adjustment as noted
below) shall be $3.51 per share ("Initial Exercise Price").

                  This Warrant is subject to the following provisions, terms and
conditions:

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                  1.       The rights represented by this Warrant may be
exercised by the holder hereof, in whole or in part, by written notice of
exercise delivered to the Company and by the surrender of this Warrant (properly
endorsed if required) at the principal office of the Company and upon payment to
it by wire transfer, certified check, bank draft or cash of the purchase price
for such shares or by cashless exercise pursuant to paragraph 10. The Company
agrees that the shares so purchased shall be and are deemed to be issued to the
holder hereof as the record owner of such shares as of the close of business on
the date on which this Warrant shall have been surrendered and payment made for
such shares as aforesaid. Subject to the provisions of the next succeeding
paragraph, certificates for the shares of stock so purchased, together with a
check in payment of any fractional share and, in the case of a partial exercise,
a new warrant evidencing the shares remaining subject to this Warrant, shall be
delivered to the holder hereof within a reasonable time, not exceeding 5
business days, after the rights represented by this Warrant shall have been so
exercised.

                  2.       Notwithstanding the foregoing, however, the Company
shall not be required to deliver any certificate for shares of stock upon
exercise of this Warrant except in accordance with the provisions, and subject
to the limitations, of paragraph 6 hereof.

                  3.       The Company represents and warrants that this Warrant
has been duly authorized by all necessary corporate action, has been duly
executed and delivered and is a legal and binding obligation of the Company. The
Company covenants and agrees that all shares which may be issued upon the
exercise of the rights represented by this Warrant according to the terms hereof
will, upon issuance, be duly authorized and issued, fully paid and
nonassessable. The Company further covenants and agrees that during the period
within which the rights represented by this Warrant may be exercised, the
Company will at all times have authorized, and reserved for the purpose of issue
or transfer upon exercise of the subscription rights evidenced by this Warrant,
a sufficient number of shares of its Common Stock to provide for the exercise of
the rights represented by this Warrant. The Company further covenants and agrees
that the Company will not, by amendment of its Articles of Incorporation or
through any reorganization, transfer of assets, consolidation, merger,
dissolution, issue or sale of securities or any other voluntary action, avoid or
seek to avoid the observance or performance of any of the terms of this Warrant,
but will at all times in good faith assist in the carrying out of all such items
and in the taking of all such action as may be necessary or appropriate in order
to protect the rights of the holder hereof against dilution or other impairment.
Without limiting the generality of the foregoing, the Company will not increase
the par value of any shares of stock receivable on the exercise of this Warrant
above the amount payable therefor on such exercise.

                  4.       The above provisions are, however, subject to the
following:

                  (a)      The Initial Exercise Price shall, from and after the
date of issuance of this Warrant, be subject to adjustment from time to time as
hereinafter provided. Upon each adjustment of the Initial Exercise Price, the
holder of this Warrant shall thereafter be entitled to purchase, at the Initial
Exercise Price resulting from such adjustment, the number of shares obtained by
multiplying the warrant purchase price in effect immediately prior to such
adjustment by the number of shares purchasable pursuant hereto immediately prior
to such

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<PAGE>

adjustment and dividing the product thereof by the warrant purchase price
resulting from such adjustment.

                  (b)      In case the Company shall (i) declare a dividend upon
the Common Stock payable in Common Stock (other than a dividend declared to
effect a subdivision of the outstanding shares of Common Stock, as described in
subparagraph (c) below) or any obligations or any shares of stock of the Company
which are convertible into or exchangeable for Common Stock (such obligations or
shares of stock being hereinafter referred to as "Convertible Securities"), or
in any rights or options to purchase any Common Stock or Convertible Securities,
or (ii) declare any other dividend or make any other distribution upon the
Common Stock payable otherwise than out of earnings or earned surplus, then
thereafter the holder of this Warrant upon the exercise hereof will be entitled
to receive the number of shares of Common Stock to which such holder shall be
entitled upon such exercise, and, in addition and without further payment
therefor, such number of shares of Common Stock, such that upon exercise hereof,
such holder would receive such number of shares of Common Stock as a result of
each dividend described in clause (i) above and each dividend or distribution
described in clause (ii) above which such holder would have received by way of
any such dividend or distribution if continuously since the record date for any
such dividend or distribution such holder (i) had been the record holder of the
number of shares of Common Stock then received, and (ii) had retained all
dividends or distributions in stock or securities (including Common Stock or
Convertible Securities, or in any rights or options to purchase any Common Stock
or Convertible Securities) payable in respect of such Common Stock or in respect
of any stock or securities paid as dividends or distributions and originating
directly or indirectly from such Common Stock. For the purposes of the
foregoing, a dividend or distribution other than in cash shall be considered
payable out of earnings or surplus only to the extent that such earnings or
surplus are charged an amount equal to the fair value of such dividend as
determined by the Board of Directors of the Company.

                  (c)      In case the Company shall at any time subdivide its
outstanding shares of Common Stock into a greater number of shares, the warrant
purchase price in effect immediately prior to such subdivision shall be
proportionately reduced, and conversely, in case the outstanding shares of
Common Stock of the Company shall be combined into a smaller number of shares,
the warrant purchase price in effect immediately prior to such combination shall
be proportionately increased.

                  (d)      If any capital reorganization or reclassification of
the capital stock of the Company, or consolidation or merger of the Company with
another corporation, or the sale of all or substantially all of its assets to
another corporation shall be effected in such a way that holders of Common Stock
shall be entitled to receive stock, securities or assets with respect to or in
exchange for Common Stock, then, as a condition of such reorganization,
reclassification, consolidation, merger or sale, lawful and adequate provision
shall be made whereby the holder hereof shall thereafter have the right to
purchase and receive, upon the basis and upon the terms and conditions specified
in this Warrant and in lieu of the shares of the Common Stock of the Company
immediately theretofore purchasable and receivable upon the exercise of the
rights represented hereby, such shares of stock, securities or assets as may be
issued or payable with

                                       3
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respect to or in exchange for a number of outstanding shares of such Common
Stock equal to the number of shares of such stock immediately theretofore
purchasable and receivable upon the exercise of the rights represented hereby
had such reorganization, reclassification, consolidation, merger or sale not
taken place, and in any such case appropriate provision shall be made with
respect to the rights and interests of the holder of this Warrant to the end
that the provisions hereof (including without limitation provisions for
adjustments of the warrant purchase price and of the number of shares
purchasable upon the exercise of this Warrant) shall thereafter be applicable,
as nearly as may be, in relation to any shares of stock, securities or assets
thereafter deliverable upon the exercise hereof. The Company shall not effect
any such consolidation, merger or sale, unless prior to the consummation thereof
the successor corporation (if other than the Company) resulting from such
consolidation or merger or the corporation purchasing such assets shall assume,
by written instrument executed and mailed to the registered holder hereof at the
last address of such holder appearing on the books of the Company, the
obligation to deliver to such holder such shares of stock, securities or assets
as, in accordance with the foregoing provisions, such holder may be entitled to
purchase.

                  (e)      Upon any adjustment of the warrant purchase price,
then and in each such case the Company shall give written notice thereof, by
first-class mail, postage prepaid, addressed to the registered holder of this
Warrant at the address of such holder as shown on the books of the Company,
which notice shall state the warrant purchase price resulting from such
adjustment and the increase or decrease, if any, in the number of shares
purchasable at such price upon the exercise of this Warrant, setting forth in
reasonable detail the method of calculation and the facts upon which such
calculation is based.

                  (f)      In case any time:

                           (1)      the Company shall declare any cash dividend
         on its capital stock at a rate in excess of the rate of the last cash
         dividend theretofore paid;

                           (2)      the Company shall pay any dividend payable
         in stock upon its capital stock or make any distribution (other than
         regular cash dividends) to the holders of its capital stock;

                           (3)      the Company shall offer for subscription pro
         rata to the holders of its capital stock any additional shares of stock
         of any class or other rights;

                           (4)      there shall be any capital reorganization,
         or reclassification of the capital stock of the Company, or
         consolidation or merger of the Company with, or sale of all or
         substantially all of its assets to, another corporation; or

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

                                       4
<PAGE>

then, in any one or more of said cases, the Company shall give written notice,
by first-class mail, postage prepaid, addressed to the registered holder of this
Warrant at the address of such holder as shown on the books of the Company, of
the date on which (aa) the books of the Company shall close or a record shall be
taken for such dividend, distribution or subscription rights, or (bb) such
reorganization, reclassification, consolidation, merger, sale, dissolution,
liquidation or winding up, or conversion or redemption shall, or is expected to,
take place, as the case may be. Such notice shall also specify the date as of
which the holders of capital stock of record shall participate in such dividend,
distribution or subscription rights, or shall be entitled to exchange their
capital stock for securities or other property deliverable upon such
reorganization, reclassification, consolidation, merger, sale, dissolution,
liquidation or winding up, or conversion or redemption, as the case may be. Such
written notice shall be given at least 20 days prior to the action in question
and not less than 20 days prior to the record date or the date on which the
Company's transfer books are closed in respect thereto.

                  (g)      If any event occurs as to which in the opinion of the
Board of Directors of the Company the other provisions of this paragraph 4 are
not strictly applicable or if strictly applicable would not fairly protect the
purchase rights of the holder of this Warrant or of Common Stock in accordance
with the essential intent and principles of such provisions, then the Board of
Directors shall make an adjustment in the application of such provisions, in
accordance with such essential intent and principles, so as to protect such
purchase rights as aforesaid.

                  (h)      No fractional shares of Common Stock shall be issued
upon the exercise of this Warrant, but, instead of any fraction of a share which
would otherwise be issuable, the Company shall pay a cash adjustment (which may
be effected as a reduction of the amount to be paid by the holder hereof upon
such exercise) in respect of such fraction in an amount equal to the same
fraction of the Market Price per share of Common Stock as of the close of
business on the date of the notice required by paragraph l above. "Market Price"
shall mean, if the Common Stock is traded on a securities exchange or on the
NASDAQ National Market System, the average of the closing prices of the Common
Stock on such exchange or the NASDAQ National Market System on the 20 trading
days ending on the trading day prior to the date of determination, or, if the
Common Stock is otherwise traded in the over-the-counter market, the average of
the closing bid prices on the 20 trading days ending on the trading day prior to
the date of determination. If at any time the Common Stock is not traded on an
exchange or the NASDAQ National Market System, or otherwise traded in the
over-the-counter market, the Market Price shall be deemed to be the higher of
(i) the book value thereof as determined by any firm of independent public
accountants of recognized standing selected by the Board of Directors of the
Company as of the last day of any month ending within 60 days preceding the date
as of which the determination is to be made, or (ii) the fair value thereof
determined in good faith by the Board of Directors of the Company as of a date
which is within 15 days of the date as of which the determination is to be made.

                  (i)      Notwithstanding anything to the contrary contained in
this Warrant, the payment of the PIK Interest Shares (as defined in the Purchase
Agreement) by the Company to holders of the Company's 7% convertible
subordinated notes issued pursuant to the Purchase Agreement shall not trigger
any of the anti-dilution provisions specified under this paragraph 4.

                                       5
<PAGE>

                  5.       This Warrant shall not entitle the holder hereof to
any voting rights or other rights as a shareholder of the Company.

                  6.       The holder of this Warrant, by acceptance hereof,
agrees to give written notice to the Company before transferring this Warrant or
transferring any Common Stock issuable or issued upon the exercise hereof (if
and only if there is no effective Registration Statement) of such holder's
intention to do so, describing briefly the manner of any proposed transfer of
this Warrant or such holder's intention as to the disposition to be made of
shares of Common Stock issuable or issued upon the exercise hereof. If
applicable, such holder shall also provide the Company with an opinion of
counsel satisfactory to the Company to the effect that the proposed transfer of
this Warrant or disposition of shares may be effected without registration or
qualification (under any federal or state law) of this Warrant or the shares of
Common Stock issuable or issued upon the exercise hereof. Upon receipt of such
written notice and opinion (if applicable) by the Company, such holder shall be
entitled to transfer this Warrant, or to exercise this Warrant in accordance
with its terms and dispose of the shares received upon such exercise or to
dispose of shares of Common Stock received upon the previous exercise of this
Warrant, all in accordance with the terms of the notice delivered by such holder
to the Company, provided that an appropriate legend respecting the aforesaid
restrictions on transfer and disposition may be endorsed on this Warrant or the
certificates for such shares.

                  7.       Subject to the provisions of paragraph 6 hereof, this
Warrant and all rights hereunder are transferable, in whole or in part, at the
principal office of the Company by the holder hereof in person or by duly
authorized attorney, upon surrender of this Warrant properly endorsed. Each
taker and holder of this Warrant, by taking or holding the same, consents and
agrees that the bearer of this Warrant, when endorsed, may be treated by the
Company and all other persons dealing with this Warrant as the absolute owner
hereof for any purpose and as the person entitled to exercise the rights
represented by this Warrant, or to the transfer hereof on the books of the
Company, any notice to the contrary notwithstanding; but until such transfer on
such books, the Company may treat the registered holder hereof as the owner for
all purposes.

                  8.       This Warrant is exchangeable, upon the surrender
hereof by the holder hereof at the principal office of the Company, for new
Warrants of like tenor representing in the aggregate the right to subscribe for
and purchase the number of shares which may be subscribed for and purchased
hereunder, each of such new Warrants to represent the right to subscribe for and
purchase such number of shares as shall be designated by said holder hereof at
the time of such surrender.

                  9.       The Company covenants and agrees that the holder
hereof shall have the rights of an Investor under the Purchase Agreement and
Registration Rights Agreement, each dated as of the date hereof among the
Company and the Investors named on the signature pages thereto.

                  10. (a)  In addition to and without limiting the rights of the
holder of this Warrant under the terms of this Warrant, the holder of this
Warrant shall have the right (the "Conversion

                                       6
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Right") to convert this Warrant or any portion thereof into shares of Common
Stock as provided in this paragraph 10 at any time or from time to time prior to
its expiration. Upon exercise of the Conversion Right with respect to a
particular number of shares subject to this Warrant (the "Converted Warrant
Shares"), the Company shall deliver to the holder of this Warrant, without
payment by the holder of any exercise price or any cash or other consideration,
that number of shares of Common Stock equal to the quotient obtained by dividing
the Net Value (as hereinafter defined) of the Converted Warrant Shares by the
fair market value (as defined in paragraph (c) below) of a single share of
Common Stock, determined in each case as of the Conversion Date (as hereinafter
defined). The "Net Value" of the Converted Warrant Shares shall be determined by
subtracting the aggregate warrant purchase price of the Converted Warrant Shares
from the aggregate fair market value of the Converted Warrant Shares.
Notwithstanding anything in this paragraph 10 to the contrary, the Conversion
Right cannot be exercised with respect to a number of Converted Warrant Shares
having a Net Value below $100. No fractional shares shall be issuable upon
exercise of the Conversion Right, and if the number of shares to be issued in
accordance with the foregoing formula is other than a whole number, the Company
shall pay to the holder of this Warrant an amount in cash equal to the fair
market value of the resulting fractional share.

                  (b)      For purposes of this paragraph 10, the "fair market
value" of a share of Common Stock as of a particular date shall be its Market
Price, calculated as described in paragraph 4(f) hereof (assuming for this
purpose that references to "date of determination" (or words of similar import)
in paragraph 4(f) shall be deemed references to "Conversion Date").

                  11.      No holder of this Warrant shall have the right to
exercise this Warrant, to the extent that after giving effect to such exercise,
such holder (together with such holder's affiliates) would beneficially own in
excess of 4.99% of the shares of the Common Stock outstanding immediately after
giving effect to such exercise. For purposes of the foregoing sentence, the
aggregate number of shares of Common Stock beneficially owned by such holder and
its affiliates shall include the number of shares of Common Stock issuable upon
exercise of this Warrant with respect to which the determination of such
sentence is being made, but shall exclude shares of Common Stock which would be
issuable upon (i) exercise of the remaining, unexercised portion of this Warrant
beneficially owned by such holder and its affiliates and (ii) exercise or
conversion of the unexercised or unconverted portion of any other securities of
the Company beneficially owned by such holder and its affiliates (including,
without limitation, any convertible notes or convertible preferred stock or
warrants) subject to a limitation on conversion or exercise analogous to the
limitation contained herein. Except as set forth in the preceding sentence, for
purposes of this paragraph, beneficial ownership shall be calculated in
accordance with Section 13(d) of the Securities Exchange Act of 1934, as
amended. For purposes of this Warrant, in determining the number of outstanding
shares of Common Stock, a holder may rely on the number of outstanding shares of
Common Stock as reflected in (1) the Company's most recent Quarterly Report on
Form 10-Q, Annual Report on Form 10-K or other public filing with the SEC, as
the case may be, (2) a more recent public announcement by the Company or (3) any
other notice by the Company or its transfer agent setting forth the number of
shares of Common Stock outstanding. For any reason at any time, upon the written
or oral request of the holder of this Warrant, the Company shall, within three
(3) business days, confirm orally or in writing to

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<PAGE>

the holder of this Warrant the number of shares of Common Stock then
outstanding. In any case, the number of outstanding shares of Common Stock shall
be determined after giving effect to the conversion or exercise of securities of
the Company by the holder of this Warrant and its affiliates since the date as
of which such number of outstanding shares of Common Stock was reported. The
restriction described in this paragraph 11 may be revoked upon 60 days prior
written notice by the holder hereof to the Company.

                  12.      All questions concerning this Warrant will be
governed and interpreted and enforced in accordance with the internal law, not
the law of conflicts, of the State of Minnesota.

                  13.      If this Warrant is lost, stolen, mutilated or
destroyed, the Company may, upon the making of an affidavit of the fact that the
person claiming the Warrant to be lost, stolen, mutilated or destroyed and on
such terms as to indemnity or otherwise as the Company may reasonably impose
(which shall, in the case of a mutilated Warrant, include the surrender
thereof), issue a new Warrant of like denomination and tenor as the Warrant so
lost, stolen, mutilated or destroyed.

                  14.      Receipt of this Warrant by the holder hereof shall
constitute acceptance of and agreement to all of the terms and conditions
contained herein.

                            [signature page follows]

                                       8
<PAGE>

         IN WITNESS WHEREOF, Delphax Technologies Inc. has caused this Warrant
to be signed by its duly authorized officer and this Warrant to be dated as of
the date first written above.

                                              DELPHAX TECHNOLOGIES INC.

                                              By /s/ Robert M. Barniskis
                                                 -------------------------------
                                                 Robert M. Barniskis

                                              Its VICE PRESIDENT,CHIEF FINANCIAL
                                                  OFFICE AND SECRETARY

                                       9
<PAGE>

                                SUBSCRIPTION FORM

           To be Executed by the Holder of this Warrant if such Holder
              Desires to Exercise this Warrant in Whole or in Part:

To:  Delphax Technologies Inc. (the "Company")

         The undersigned ___________________________________

                     Please insert Social Security or other
                        identifying number of Subscriber:

hereby irrevocably elects to exercise the right of purchase represented by this
Warrant for, and to purchase thereunder, ___________ shares of the Common Stock
(the "Common Stock") provided for therein and [CIRCLE EITHER (A) OR (B)] (a)
tenders payment herewith to the order of the Company in the amount of
$___________, such payment being made as provided on the face of this Warrant;
or (b) hereby exercises the Conversion Right as to the number of shares of
Common Stock set forth above in accordance with paragraph 10 of the Warrant.

         By delivering this exercise notice, the undersigned owner represents
and warrants ("X" next to applicable provision):

[__]     1.       that it does not now, nor after giving effect to this exercise
                  will it, beneficially own in excess of 4.99% of the
                  outstanding shares of Common Stock of the Company, calculated
                  pursuant to the provisions of Paragraph 11 of the Warrant; or

[__]     2.       that it has provided, at least 60 days prior to the date of
                  this notice of exercise, notice to the Company of its
                  revocation of the application of Paragraph 11 of the Warrant.

                  The undersigned requests that certificates for such shares of
Common Stock be issued as follows:

Name: __________________________________________________________________________

Address: _______________________________________________________________________

Deliver to: ____________________________________________________________________

Address: _______________________________________________________________________

                                       10
<PAGE>

and, if such number of shares of Common Stock shall not be all the shares of
Common Stock purchasable hereunder, that a new Warrant for the balance remaining
of the shares of Common Stock purchasable under this Warrant be registered in
the name of, and delivered to, the undersigned at the address stated above.

Dated:

                                              Signature ________________________
                                                   Note: The signature on this
                                                   Subscription Form must
                                                   correspond with the name as
                                                   written upon the face of this
                                                   Warrant in every particular,
                                                   without alteration or
                                                   enlargement or any change
                                                   whatever.

                                       11
<PAGE>

                               FORM OF ASSIGNMENT
                       (To Be Signed Only Upon Assignment)

                  FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto this Warrant, and appoints_______________________________________
to transfer this Warrant on the books of the Company with the full power of
substitution in the premises.

Dated: ________________

In the presence of:

_______________________

                                             ___________________________________

                                             (Signature  must  conform in all
                                             respects  to the name of the holder
                                             as  specified  on the  face  of
                                             this  Warrant  without alteration,
                                             enlargement  or any  change
                                             whatsoever, and the signature must
                                             be guaranteed in the usual manner)

                                       12<PAGE>

                                                                     Exhibit 4.4

                          REGISTRATION RIGHTS AGREEMENT

         This REGISTRATION RIGHTS AGREEMENT, dated as of February 4, 2004 (this
"AGREEMENT"), is made by and among Delphax Technologies Inc., a Minnesota
corporation, with headquarters located at 12500 Whitewater Drive, Minnetonka,
Minnesota 55343 (the "COMPANY"), and the investors named on the signature pages
hereto (the "Investors").

         RECITALS:

         A.       In connection with the Securities Purchase Agreement dated as
of the date hereof by and among the Investors and the Company (the "PURCHASE
AGREEMENT"), the Company has agreed, upon the terms and subject to the
conditions of the Purchase Agreement, to issue and sell to the Investors
$3,000,000 in aggregate principal of its 7% Convertible Subordinated Notes (the
"CONVERTIBLE NOTES"), which is convertible into shares of the Company's common
stock, par value $.10 per share (the "COMMON STOCK"), and to issue to the
Investors stock purchase warrants (the "WARRANTS") to purchase additional shares
of Common Stock (the shares of Common Stock issued or issuable with respect to
(i) the Convertible Notes (including the PIK Interest Shares, as defined in the
Purchase Agreement) and (ii) the Warrants are hereinafter collectively referred
to as the "COMMON SHARES").

         B.       In order to induce the Investors to execute and deliver the
Purchase Agreement, the Company has agreed to provide certain registration
rights under the Securities Act and applicable state securities laws with
respect to the Common Shares.

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

                                    ARTICLE I
                                   DEFINITIONS

         Capitalized terms used and not otherwise defined herein have the
respective meanings given them set forth in the Purchase Agreement. In addition,
as used in this Agreement, the following terms have the following meanings:

         1.1      "COMMON SHARES" means the shares of Common Stock issued or
issuable with respect to the Convertible Notes (including the PIK Interest
Shares, as defined in the Purchase Agreement) and the Warrants.

         1.2      "INVESTORS" means the investors named on the signature pages
hereto and any of their transferees or assignees who agree to become bound by
the provisions of this Agreement in accordance with Article IX hereof.

         1.3      "REGISTRABLE SECURITIES" means the Common Shares (without
regard to any limitations on conversion or exercise) and any shares of capital
stock issued or issuable from

<PAGE>

time to time (with any adjustments) in exchange for or otherwise with respect to
the Convertible Notes, Warrants or Common Shares.

         1.4      "REGISTRATION PERIOD" means the period between the date of
this Agreement and the earlier of (i) the date on which all of the Registrable
Securities have been sold and no further Registrable Securities may be issued in
the future, or (ii) the date on which all the Registrable Securities (in the
opinion of the Investors' counsel) may be immediately sold without registration
and without restriction (including without limitation as to volume by each
holder thereof) as to the number of Registrable Securities to be sold, pursuant
to Rule 144 or otherwise.

         1.5      "REGISTRATION STATEMENT" means a Registration Statement of the
Company filed under the Securities Act.

         1.6      The terms "REGISTER," "REGISTERED," and "REGISTRATION" refer
to a registration effected by preparing and filing a Registration Statement or
statements in compliance with the Securities Act and pursuant to Rule 415 and
the declaration or ordering of effectiveness of such Registration Statement by
the SEC.

         1.7      "RULE 415" means Rule 415 under the Securities Act, or any
successor Rule providing for offering securities on a continuous basis, and
applicable rules and regulations thereunder.

                                   ARTICLE II
                                  REGISTRATION

         2.1      MANDATORY REGISTRATION.

         (a)      The Company will file with the SEC a Registration Statement on
Form S-3 registering the Registrable Securities and no other securities for
resale within 20 days after the Closing Date of the purchase of the Convertible
Notes under the Purchase Agreement. If Form S-3 is not available at that time,
then the Company will file a Registration Statement on such form as is then
available to effect a registration of the Registrable Securities within such
20-day period, subject to the consent of the Investors, which consent will not
be unreasonably withheld.

         (b)      To the extent allowable under the Securities Act and the rules
promulgated thereunder (including Rule 416), the Registration Statement will
include the Registrable Securities and such indeterminate number of additional
shares of Common Stock as may become issuable upon conversion of the Convertible
Notes and exercise of the Warrants (i) to prevent dilution resulting from stock
splits, stock dividends or similar transactions, or (ii) by reason of changes in
the conversion price of the Convertible Notes or the exercise price of the
Warrants in accordance with the terms thereof. The number of shares of
Registrable Securities initially included in the Registration Statement will be
no less than 125% of the aggregate number of Common Shares that are issuable
upon conversion of the Convertible Notes at the conversion price and exercise of
the Warrants at the exercise price.

                                       2
<PAGE>

         2.2      EFFECTIVENESS OF THE REGISTRATION STATEMENT.

         (a)      The Company will use its best efforts to cause the
Registration Statement contemplated by Section 2.1 to be declared effective by
the SEC as soon as practicable after filing, and in any event no later than the
120th day after the Closing Date (the "REQUIRED EFFECTIVE DATE"). If the SEC
takes the position that registration of the resale of the Registrable Securities
by the Investors is not available under applicable laws, rules and regulation
and that the Company must register the offering of the Registrable Securities as
a primary offering by the Company, the Company will file a Registration
Statement as a primary offering and will use its best efforts to cause the
Registration Statement to be declared effective by the SEC as soon as
practicable after filing, and in any event no later than the Required Effective
Date.

         (b)      The Company's best efforts will include, but not be limited
to, promptly responding to all comments received from the staff of the SEC. If
the Company receives notification from the SEC that the Registration Statement
will receive no action or review from the SEC, then the Company will cause the
Registration Statement to become effective within five business days after such
SEC notification.

         (c)      Once the Registration Statement is declared effective by the
SEC, the Company will cause the Registration Statement to remain effective
throughout the Registration Period, except as permitted under Section 3.1.

         2.3      PAYMENTS BY THE COMPANY. If (i) at any time after
effectiveness of the Registration Statement, sales cannot be made thereunder
during the Registration Period for any reason (including any suspension of the
use of the Registration Statement under Section 3.6 hereof) for a period of more
than 10 consecutive business days, or 30 days in the aggregate, during any
12-month period or (ii) the Common Stock is not listed or included for quotation
on Nasdaq, Nasdaq SmallCap, the NYSE or AMEX for more than an aggregate of 10
business days in any 12-month period, then the Company will thereafter make a
payment (by wire transfer or check) to each Investor as partial compensation for
such delay. The amount of the payment made to each Investor will be equal to 1%
of the Outstanding Principal Amount (as hereinafter defined) for the first month
that sales cannot be made under the effective Registration Statement or the
Common Stock is not listed or included for quotation on Nasdaq, Nasdaq SmallCap,
the NYSE or AMEX, and 2% of the Outstanding Principal Amount for each month
thereafter, continuing through the date that sales can be made under the
effective Registration Statement or the Common Stock is listed or included for
quotation on Nasdaq, Nasdaq SmallCap, the NYSE or AMEX. The term "OUTSTANDING
PRINCIPAL AMOUNT" for purposes of computing the amount of payment to be made to
an Investor under Section 2.3 and Section 2.4 shall mean the sum of (x) the
principal amount of the then-outstanding Convertible Notes held by such Investor
and (y) in the case of Registrable Securities issued upon conversion of the
Convertible Notes purchased by such Investor and not previously sold by such
Investor, the principal amount of the Convertible Notes from which such
Registrable Securities were converted. These payments will be prorated on a
daily basis for partial months and will be paid to each Investor by wire
transfer or check within five business days following the end of each month.

                                       3
<PAGE>

         2.4      EFFECT OF LATE REGISTRATION. If the Registration Statement
required pursuant to Section 2.1 above has not been declared effective by the
Required Effective Date due solely to the fault of the Company, which includes,
without limitation, the inability of the Company to utilize a particular
registration statement form that would provide for a shorter time to
effectiveness, the failure by the Company to file its reports required under the
Exchange Act and the Company's failure to fulfill its obligations under Section
2.1(a) and Section 2.2(b) (the "EFFECTIVENESS FAILURE"), then the Company shall
pay to each Investor, on each day of such Effectiveness Failure, an amount equal
to the product of (i) such Investor's Outstanding Principal Amount and (ii) the
quotient obtained by dividing 10% by 360 (the "LATE EFFECTIVENESS PAYMENTS").
The Late Effectiveness Payments will be paid to the Investors by wire transfer
or check within five business days after the earlier of (i) the end of each
month following the Required Effective Date or (ii) the effective date of the
Registration Statement. Nothing herein limits any Investor's right to pursue
actual damages for the Company's failure to file a Registration Statement or to
have it declared effective by the SEC on or prior to the Required Effective Date
in accordance with the terms of this Agreement.

         2.5      PIGGYBACK REGISTRATIONS.

                  (a)      If, at any time prior to the expiration of the
Registration Period, a Registration Statement is not effective with respect to
all of the Registrable Securities and the Company decides to register any of its
securities for its own account or for the account of others, then the Company
will promptly give the Investors written notice thereof and will use its best
efforts to include in such registration all or any part of the Registrable
Securities requested by such Investors to be included therein (excluding any
Registrable Securities previously included in a Registration Statement). This
requirement does not apply to Company registrations on Form S-4 or S-8 or their
equivalents relating to equity securities to be issued solely in connection with
an acquisition of any entity or business or equity securities issuable in
connection with stock option or other employee benefit plans. Each Investor must
give its request for registration under this paragraph to the Company in writing
within 15 days after receipt from the Company of notice of such pending
registration. If the registration for which the Company gives notice is a public
offering involving an underwriting, the Company will so advise the Investors as
part of the above-described written notice. In that event, if the managing
underwriter(s) of the public offering impose a limitation (which may be a
complete exclusion) on the number of shares of Common Stock that may be included
in the Registration Statement because, in such underwriter(s)' judgment, such
limitation would be necessary to effect an orderly public distribution or reduce
the number of securities which could be sold by the Company, then the Company
will be obligated to include only such limited portion, if any, of the
Registrable Securities with respect to which such Investors have requested
inclusion hereunder. Any exclusion of Registrable Securities will be made pro
rata among all holders of the Company's securities seeking to include shares of
Common Stock in proportion to the number of shares of Common Stock sought to be
included by those holders. However, the Company will not exclude any Registrable
Securities unless the Company has first excluded all outstanding securities the
holders of which are not entitled by right to inclusion of securities in such
Registration Statement or are not entitled pro rata inclusion with the
Registrable Securities. If any Investor or other person does not agree to the
terms of such underwriting or otherwise fails to comply with the terms of this
Agreement, such Investor or other person shall be excluded therefrom upon
written

                                       4
<PAGE>

notice from the Company or underwriter. Any Registrable Securities or other
securities excluded or withdrawn from such underwriting shall be withdrawn from
such registration.

                  (b)      No right to registration of Registrable Securities
under this Section 2.5 limits in any way the registration required under Section
2.1 above. The obligations of the Company under this Section 2.5 expire upon the
earliest of (i) the effectiveness of the Registration Statement filed pursuant
to Section 2.1 above with respect to the Registrable Securities or the
respective portion thereof, (ii) after the Company has afforded the opportunity
for the Investors to exercise registration rights under this Section 2.5 for two
registrations (provided, however, that any Investor that has had any Registrable
Securities excluded from any Registration Statement in accordance with this
Section 2.5 may include in any additional Registration Statement filed by the
Company the Registrable Securities so excluded), or (iii) expiration of the
Registration Period.

                  (c)      The Company shall have the right to terminate or
withdraw any registration initiated by it under this Section 2.5 prior to the
effectiveness of such registration whether or not any Investor has elected to
include securities in such registration. The expenses of such withdrawn
registration shall be borne by the Company.

         2.6      ELIGIBILITY TO USE FORM S-3. The Company represents and
warrants that it meets the requirements for the use of Form S-3 for registration
of the resale by the Investors of the Registrable Securities. The Company will
file all reports required to be filed by the Company with the SEC in a timely
manner so as to preserve its eligibility for the use of Form S-3.

                                   ARTICLE III
                      ADDITIONAL OBLIGATIONS OF THE COMPANY

         3.1      CONTINUED EFFECTIVENESS OF REGISTRATION STATEMENT. The Company
will keep the Registration Statement covering the Registrable Securities
effective under Rule 415 at all times during the Registration Period. In the
event that the number of shares available under a Registration Statement filed
pursuant to this Agreement is insufficient to cover all of the Registrable
Securities issued or issuable upon conversion of (or otherwise pursuant to) the
Convertible Notes and upon exercise of (or otherwise pursuant to) the Warrants,
the Company will (if permitted) amend the Registration Statement or file a new
Registration Statement (on the short form available therefor, if applicable), or
both, so as to cover all of the Registrable Securities. The Company will file
such amendment or new Registration Statement as soon as practicable, but in no
event later than 20 business days after the necessity therefor arises (based
upon the market price of the Common Stock and other relevant factors on which
the Company reasonably elects to rely). The Company will use its best efforts to
cause such amendment or new Registration Statement to become effective as soon
as is practicable after the filing thereof, but in no event later than 90 days
after the date on which the Company reasonably first determines (or reasonably
should have determined) the need therefor.

         3.2      ACCURACY OF REGISTRATION STATEMENT. Any Registration Statement
(including any amendments or supplements thereto and prospectuses contained
therein) filed by the Company covering Registrable Securities will not contain
any untrue statement of a material fact or omit to

                                       5
<PAGE>

state a material fact required to be stated therein, or necessary to make the
statements therein, in light of the circumstances in which they were made, not
misleading. The Company will promptly prepare and file with the SEC such
amendments (including post-effective amendments) and supplements to the
Registration Statement and the prospectus used in connection with the
Registration Statement as may be necessary to permit sales pursuant to the
Registration Statement at all times during the Registration Period, and, during
such period, will comply with the provisions of the Securities Act with respect
to the disposition of all Registrable Securities of the Company covered by the
Registration Statement until the termination of the Registration Period, or if
earlier, until such time as all of such Registrable Securities have been
disposed of in accordance with the intended methods of disposition by the seller
or sellers thereof as set forth in the Registration Statement.

         3.3      FURNISHING DOCUMENTATION. The Company will furnish to each
Investor whose Registrable Securities are included in a Registration Statement,
and to its legal counsel, (a) promptly after each document is prepared and
publicly distributed, filed with the SEC or received by the Company, one copy of
any Registration Statement filed pursuant to this Agreement and any amendments
thereto, each preliminary prospectus and final prospectus and each amendment or
supplement thereto; and, in the case of a Registration Statement filed under
Section 2.1 above, each letter written by or on behalf of the Company to the SEC
and each item of correspondence from, or order issued by, the SEC or the staff
of the SEC, in each case relating to such Registration Statement (other than any
portion of any item thereof which contains information for which the Company has
sought confidential treatment); and (b) a number of copies of a prospectus,
including a preliminary prospectus (if any), and all amendments and supplements
thereto, and such other documents as the Investor may reasonably request in
order to facilitate the disposition of the Registrable Securities owned by the
Investor. The Company will promptly notify by facsimile each Investor whose
Registrable Securities are included in any Registration Statement of the
effectiveness of the Registration Statement and any post-effective amendment.

         3.4      ADDITIONAL OBLIGATIONS. The Company will use its best efforts
to (a) register and qualify the Registrable Securities covered by a Registration
Statement under such other securities or blue sky laws of such jurisdictions as
each Investor who holds (or has the right to hold) Registrable Securities being
offered reasonably requests, (b) prepare and file in those jurisdictions any
amendments (including post-effective amendments) and supplements to such
registrations and qualifications as may be necessary to maintain their
effectiveness during the Registration Period, (c) take any other actions
necessary to maintain such registrations and qualifications in effect at all
times during the Registration Period, and (d) take any other actions reasonably
necessary or advisable to qualify the Registrable Securities for sale in such
jurisdictions. Notwithstanding the foregoing, the Company is not required, in
connection such obligations, to (i) qualify to do business in any jurisdiction
where it would not otherwise be required to qualify but for this Section 3.4,
(ii) subject itself to general taxation in any such jurisdiction, (iii) file a
general consent to service of process in any such jurisdiction, (iv) provide any
undertakings that cause material expense or burden to the Company, or (v) make
any change in its charter or bylaws, 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.

                                       6
<PAGE>

         3.5      UNDERWRITTEN OFFERINGS. If the Investors who hold a majority
in interest of the Registrable Securities being offered in an offering pursuant
to a Registration Statement or any amendment or supplement thereto under this
Agreement select underwriters reasonably acceptable to the Company for such
offering, the Company will 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, but the Company will not be obligated to
pay any fees or expenses of such underwriters related to the offering.

         3.6      SUSPENSION OF REGISTRATION.

                  (a)      The Company will notify (by telephone and also by
facsimile and reputable overnight courier) each Investor who holds Registrable
Securities being sold pursuant to a Registration Statement 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. The Company will make
such notification as promptly as practicable after the Company becomes aware of
the event (but in no event will the Company disclose to any Investor any of the
facts or circumstances regarding the event), will promptly (but in no event more
than ten business days) prepare a supplement or amendment to the Registration
Statement to correct such untrue statement or omission, and will deliver a
number of copies of such supplement or amendment to each Investor as such
Investor may reasonably request. The Company will use its best efforts to keep
the length of any such suspension to as short a period as is practicable given
the then existing circumstances and may so defer or suspend the use of the
Registration Statement no more than two times in any 18-month period, and
provided, further, that, after deferring or suspending the use of the
Registration Statement, the Company may not again defer or suspend the use of
the Registration Statement until a period of thirty days has elapsed after
resumption of the use of the Registration Statement. Notwithstanding anything to
the contrary contained herein or in the Purchase Agreement, if the use of the
Registration Statement is suspended by the Company, the Company will promptly
give notice of the suspension to all Investors whose securities are covered by
the Registration Statement, and will promptly notify each such Investor as soon
as the use of the Registration Statement may be resumed. Notwithstanding
anything to the contrary contained herein or in the Purchase Agreement, the
Company will cause the Transfer Agent to deliver unlegended shares of Common
Stock to a transferee of an Investor in accordance with the terms of the
Purchase Agreement in connection with any sale of Registrable Securities with
respect to which such Investor has entered into a contract for sale prior to
receipt of notice of such suspension and for which such Investor has not yet
settled unless, in the opinion of Company's legal counsel, such delivery without
legends would be in violation of applicable securities laws and/or otherwise
subject the Company to liability.

                  (b)      Subject to the Company's rights under Section 3.1,
the Company will use its best efforts to prevent the issuance of any stop order
or other suspension of effectiveness of a Registration Statement and, if such an
order is issued, will use its best efforts to obtain the withdrawal of such
order at the earliest possible time and will promptly notify each Investor that

                                       7
<PAGE>

holds Registrable Securities being sold (or, in the event of an underwritten
offering, the managing underwriters) of the issuance of such order and the
resolution thereof.

         3.7      REVIEW BY THE INVESTORS. The Company will permit each
Investor's legal counsel to review the Registration Statement and all amendments
and supplements thereto (as well as all requests for acceleration or
effectiveness thereof) a reasonable period of time prior to their filing with
the SEC, and will not file any document in a form to which such counsel
reasonably objects unless such counsel fails to notify the Company of his or her
objection within 3 business days after receipt of the proposed Registration
Statement, and unless otherwise required by law in the opinion of the Company's
counsel. The sections of any such Registration Statement including information
with respect to the Investors, the Investors' beneficial ownership of securities
of the Company or the Investors' intended method of disposition of Registrable
Securities must conform to the information provided to the Company by each of
the Investors.

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

         3.9      COMFORT LETTER; LEGAL OPINION. If the Investors request an
underwritten offering in accordance with Section 3.5 above, then, at the request
of the underwriters for the offering, on the date that Registrable Securities
are delivered to the underwriters for sale in connection with the Registration
Statement, the Company will furnish to the Investors and the underwriters (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 the Registration Statement, in
form and substance as is customarily given in an underwritten public offering,
addressed to the underwriters and Investors.

         3.10     DUE DILIGENCE; CONFIDENTIALITY.

                  (a)      The Company will make available for inspection by any
Investor whose Registrable Securities are being sold pursuant to a Registration
Statement, any underwriter participating in any disposition pursuant to the
Registration Statement, and any attorney or accountant retained by any such
Investor or underwriter (collectively, the "INSPECTORS"), all pertinent
financial and other records, pertinent corporate documents and properties of the
Company (collectively, the "RECORDS"), as each Inspector reasonably deems
necessary to enable the Inspector to exercise its due diligence responsibility
in connection with or related to the contemplated offering. The Company will
cause its officers, directors and employees to supply all information that any
Inspector may reasonably request for purposes of performing such due diligence.

                  (b)      Each Inspector will hold in confidence, and will not
make any disclosure (except to an Investor) of, any Records or other information
that the Company determines in

                                       8
<PAGE>

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, (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 (to the knowledge of the
relevant Inspector), (iv) the Records or other information was developed
independently by an Inspector without breach of this Agreement, (v) the
information was known to the Inspector before receipt of such information from
the Company, or (vi) the information was disclosed to the Inspector by a third
party not under an obligation of confidentiality. The Company is not required to
disclose any confidential information in the Records to any Inspector unless and
until such Inspector has entered into a confidentiality agreement (in form and
substance satisfactory to the Company) with the Company with respect thereto,
substantially in the form of this Section 3.10. Each Investor will, upon
learning that disclosure of Records containing confidential information 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
the Company's expense, to undertake appropriate action to prevent disclosure of,
or to obtain a protective order for, the Records deemed confidential. Nothing
herein will be deemed to limit the Investor's ability to sell Registrable
Securities in a manner that is otherwise consistent with applicable laws and
regulations.

                  (c)      The Company will hold in confidence, and will not
make any disclosure of, information concerning an Investor provided to the
Company under this Agreement unless (i) disclosure of such information is
necessary to comply with federal or state securities laws, or any exchange
listing or similar rules and regulations, (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, (iv) such information has been made generally available
to the public other than by disclosure in violation of this Agreement or any
other agreement or (v) such Investor consents to the form and content of any
such disclosure. If the Company learns that disclosure of such information
concerning an Investor is sought in or by a court or governmental body of
competent jurisdiction or through other means, the Company will give prompt
notice to such Investor prior to making such disclosure and allow such Investor,
at its expense, to undertake appropriate action to prevent disclosure of, or to
obtain a protective order for, such information.

         3.11     LISTING. The Company will (i) cause all of the Registrable
Securities covered by each Registration Statement to be listed on each national
securities exchange on which securities of the same class or series issued by
the Company are then listed, if any, if the listing of such Registrable
Securities is then permitted under the rules of such exchange, or (ii) to the
extent the securities of the same class or series are not then listed on a
national securities exchange, secure the designation and quotation of all of the
Registrable Securities covered by each Registration Statement on Nasdaq and,
without limiting the generality of the foregoing, arrange for at least two
market makers to register with the National Association of Securities Dealers,
Inc. as such with respect to such Registrable Securities.

                                       9
<PAGE>

         3.12     TRANSFER AGENT; REGISTRAR. The Company will provide a transfer
agent and registrar, which may be a single entity, for the Registrable
Securities not later than the effective date of the Registration Statement.

         3.13     SHARE CERTIFICATES. The Company will cooperate with the
Investors who hold Registrable Securities being sold and with the managing
underwriter(s), if any, to facilitate the timely preparation and delivery of
certificates (not bearing any restrictive legends) representing Registrable
Securities to be offered pursuant to a Registration Statement and will enable
such certificates to be in such denominations or amounts as the case may be, and
registered in such names as the Investors or the managing underwriter(s), if
any, may reasonably request, all in accordance with Article V of the Purchase
Agreement.

         3.14     PLAN OF DISTRIBUTION. Subject to Section 3.17 hereof, at the
request of an Investor holding an interest of the Registrable Securities
registered pursuant to a Registration Statement, the Company will promptly
prepare and file with the SEC such amendments (including post-effective
amendments) and supplements to the Registration Statement, and the prospectus
used in connection with the Registration Statement, as may be necessary in order
to change the plan of distribution set forth in such Registration Statement.

         3.15     SECURITIES LAWS COMPLIANCE. The Company will comply with all
applicable laws related to any Registration Statement relating to the sale of
Registrable Securities and to offering and sale of securities and with all
applicable rules and regulations of governmental authorities in connection
therewith (including, without limitation, the Securities Act, the Exchange Act
and the rules and regulations promulgated by the SEC).

         3.16     FURTHER ASSURANCES. The Company will take all other reasonable
actions as any Investor or the underwriters, if any, may reasonably request to
expedite and facilitate disposition by such Investor of the Registrable
Securities pursuant to the Registration Statement.

         3.17     NO ADDITIONAL SELLING SHAREHOLDERS. The Company will not, and
will not agree to, allow the holders of any securities of the Company to include
any of their securities in any Registration Statement under Section 2.1 hereof,
or any amendment or supplement thereto under Section 3.2 hereof, without the
consent of all of the holders of the Registrable Securities.

                                   ARTICLE IV
                          OBLIGATIONS OF THE INVESTORS

         4.1      INVESTOR INFORMATION. As a condition to the obligations of the
Company to complete any registration pursuant to this Agreement with respect to
the Registrable Securities of each Investor, such Investor will furnish to the
Company such information regarding itself, the Registrable Securities held by it
and the intended method of disposition of the Registrable Securities held by it
as is reasonably required by the Company to effect the registration of the
Registrable Securities. At least 10 business days prior to the first anticipated
filing date of a Registration Statement for any registration under this
Agreement, the Company will notify each Investor of the information the Company
requires from that Investor if the Investor elects to have any of its
Registrable Securities included in the Registration Statement. If, within three
business

                                       10
<PAGE>

days prior to the filing date, the Company has not received the requested
information from an Investor, then the Company may file the Registration
Statement without including Registrable Securities of that Investor. Any and all
information provided by the Investor pursuant to this Section 4.1 shall be true,
accurate, correct and complete in all material respects.

         4.2      FURTHER ASSURANCES. Each Investor will cooperate with the
Company, as reasonably requested by the Company, in connection with the
preparation and filing of any Registration Statement hereunder, unless such
Investor has notified the Company in writing of such Investor's election to
exclude all of such Investor's Registrable Securities from the Registration
Statement.

         4.3      SUSPENSION OF SALES. Upon receipt of any notice from the
Company of the happening of any event of the kind described in Section 3.6, each
Investor will immediately discontinue disposition of Registrable Securities
pursuant to the Registration Statement covering such Registrable Securities
until (i) it receives copies of a supplemented or amended prospectus
contemplated by Section 3.6 or (ii) the Company advises the Investor that a
suspension of sales under Section 3.6 has terminated. If so directed by the
Company, each Investor will deliver to the Company (at the expense of the
Company) or destroy (and deliver to the Company a certificate of destruction)
all copies in the Investor's possession (other than a limited number of file
copies) of the prospectus covering such Registrable Securities that is current
at the time of receipt of such notice.

         4.4      UNDERWRITTEN OFFERINGS.

                  (a)      If Investors holding a majority in interest of the
Registrable Securities being registered (with the approval of a majority in
interest of the Investors) to engage the services of an underwriter, each
Investor will enter into and perform such Investor's 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, and will take such other actions as are
reasonably required in order to expedite or facilitate the disposition of the
Registrable Securities, unless such Investor has notified the Company in writing
of such Investor's election to exclude all of its Registrable Securities from
such Registration Statement.

                  (b)      Without limiting any Investor's rights under Section
2.1 hereof, no Investor may participate in any underwritten distribution
hereunder unless such Investor (a) agrees to sell such Investor's Registrable
Securities on the basis provided in any underwriting arrangements approved by
the Investors entitled hereunder to approve such arrangements, (b) completes and
executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents reasonably required under the terms of such
underwriting arrangements, and (c) agrees to pay its pro rata share of all
underwriting discounts and commissions and other fees and expenses of investment
bankers and any manager or managers of such underwriting, and legal expenses of
the underwriter, applicable with respect to its Registrable Securities, in each
case to the extent not payable by the Company under the terms of this Agreement.

                                       11
<PAGE>

                                    ARTICLE V
                            EXPENSES OF REGISTRATION

         The Company will bear all reasonable expenses, other than underwriting
discounts and commissions, incurred in connection with registrations, filings or
qualifications pursuant to Articles II and III of this Agreement, including,
without limitation, all registration, listing and qualifications fees, printers
and accounting fees, the fees and disbursements of counsel for the Company, and
the reasonable fees and disbursements of each Investor's legal counsel to review
the Registration Statement and all amendments and supplements thereto pursuant
to Section 3.7 hereof.

                                   ARTICLE VI
                                 INDEMNIFICATION

         In the event that any Registrable Securities are included in a
Registration Statement under this Agreement:

         6.1      To the extent permitted by law, the Company will indemnify and
hold harmless each Investor that holds such Registrable Securities, any
underwriter (as defined in the Securities Act) for the Investors, any directors,
officers or advisors of such Investor or such underwriter and any person who
controls such Investor or such underwriter within the meaning of the Securities
Act or the Exchange Act (each, an "INDEMNIFIED PERSON") against any losses,
claims, damages, expenses or liabilities (joint or several) (collectively, and
together with actions, proceedings or inquiries by any regulatory or
self-regulatory organization, whether commenced or threatened in respect
thereof, "CLAIMS") to which any of them become subject under the Securities Act,
the Exchange Act or otherwise, insofar as such Claims arise out of or are based
upon any of the following statements, omissions or violations in a Registration
Statement filed pursuant to this Agreement, any post-effective amendment thereof
or any prospectus included therein: (a) any untrue statement or alleged untrue
statement of a material fact contained in the Registration Statement or any
post-effective amendment thereof or the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, (b) any untrue statement or alleged untrue
statement of a material fact contained in the prospectus (as it may be amended
or supplemented) or the omission or alleged omission to state therein any
material fact necessary to make the statements made therein, in light of the
circumstances under which the statements therein were made, not misleading, or
(c) any violation or alleged violation by the Company of the Securities Act, the
Exchange Act or any other law, including without limitation any state securities
law or any rule or regulation thereunder (the matters in the foregoing clauses
(a) through (c) being, collectively, "VIOLATIONS"). Subject to the restrictions
set forth in Section 6.3 with respect to the number of legal counsel, the
Company will reimburse the Investors and each such underwriter or controlling
person and each such other Indemnified Person, promptly as such expenses are
incurred and are due and payable, for any legal fees or other reasonable
expenses incurred by them in connection with investigating or defending any
Claim. Notwithstanding anything to the contrary contained herein, the
indemnification agreement contained in this Section 6.1 (i) does not apply to
Claims arising out of or based upon a Violation that occurs in reliance upon and
in conformity with information furnished in writing to the Company by an
Indemnified Person expressly for use in connection

                                       12
<PAGE>

with the preparation of the Registration Statement or any such amendment thereof
or supplement thereto, if such prospectus was timely made available by the
Company pursuant to Section 3.3 hereof; and (ii) does not apply to amounts paid
in settlement of any Claim if such settlement is made without the prior written
consent of the Company, which consent will not be unreasonably withheld. This
indemnity obligation will remain in full force and effect regardless of any
investigation made by or on behalf of the Indemnified Persons and will survive
the transfer of the Registrable Securities by the Investors under Article IX of
this Agreement.

         6.2      In connection with any Registration Statement in which an
Investor is participating, each such Investor will indemnify and hold harmless,
to the same extent and in the same manner set forth in Section 6.1 above, the
Company, each of its directors, each of its officers who signs the Registration
Statement, each person, if any, who controls the Company within the meaning of
the Securities Act or the Exchange Act, and any other shareholder selling
securities pursuant to the Registration Statement and any of its directors and
officers and any person who controls such shareholder within the meaning of the
Securities Act or the Exchange Act (each an "INDEMNIFIED PERSON") against any
Claim to which any of them may become subject under the Securities Act, the
Exchange Act or otherwise, insofar as such Claim arises out of or is based upon
any Violation, in each case to the extent (and only to the extent) that such
Violation occurs in reliance upon and in conformity with written information
furnished to the Company by such Investor expressly for use in connection with
such Registration Statement. Subject to the restrictions set forth in Section
6.3, such Investor will promptly reimburse the Company and each such other
Indemnified Person, any legal or other expenses (promptly as such expenses are
incurred and due and payable) reasonably incurred by them in connection with
investigating or defending any such Claim. However, the indemnity agreement
contained in this Section 6.2 does not apply to amounts paid in settlement of
any Claim if such settlement is effected without the prior written consent of
such Investor, which consent will not be unreasonably withheld, and no Investor
will be liable under this Agreement (including this Section 6.2 and Article VII)
for the amount of any Claim that exceeds the net proceeds actually received by
such Investor as a result of the sale of Registrable Securities pursuant to such
Registration Statement. This indemnity will remain in full force and effect
regardless of any investigation made by or on behalf of an Indemnified Party and
will survive the transfer of the Registrable Securities by the Investors under
Article IX of this Agreement.

         6.3      Promptly after receipt by an Indemnified Person under this
Article VI of notice of the commencement of any action (including any
governmental action), such Indemnified Person will, if a Claim in respect
thereof is to be made against any indemnifying party under this Article VI,
deliver to the indemnifying party a written notice of the commencement thereof.
The indemnifying party may participate in, and, to the extent the indemnifying
party so desires, jointly with any other indemnifying party similarly given
notice, assume control of the defense thereof with counsel mutually satisfactory
to the indemnifying parties and the Indemnified Person. In that case, the
indemnifying party will diligently pursue such defense. If, in the reasonable
opinion of counsel retained by the indemnifying party, the representation by
such counsel of the Indemnified Person and the indemnifying party would be
inappropriate due to actual or potential conflicts of interest between the
Indemnified Person and any other party represented by such counsel in such
proceeding or the actual or potential defendants in, or targets of, any such
action including the Indemnified Person, and such Indemnified Person reasonably

                                       13
<PAGE>

determines that there may be legal defenses available to such Indemnified Person
that are different from or in addition to those available to the indemnifying
party, then the Indemnified Person is entitled to assume such defense and may
retain its own counsel, with the fees and expenses to be paid by the
indemnifying party (subject to the restrictions on settlement under Section 6.1
or Section 6.2, as applicable). The failure to deliver written notice to the
indemnifying party within a reasonable time of the commencement of any such
action does not relieve an indemnifying party of any liability to an Indemnified
Person under this Article VI, except to the extent that the indemnifying party
is prejudiced in its ability to defend such action. The indemnification required
by this Article VI will be made by periodic payments of the amount thereof
during the course of the investigation or defense, as such expense, loss, damage
or liability is incurred and is due and payable. Each Indemnified Person shall
furnish such information regarding itself or the claim in question as an
Indemnifying Person may reasonably request in writing and shall be reasonably
required in connection with the defense of such claim and litigation resulting
therefrom.

                                   ARTICLE VII
                                  CONTRIBUTION

         To the extent that any indemnification provided for herein is
prohibited or limited by law, the indemnifying party will make the maximum
contribution with respect to any amounts for which it would otherwise be liable
under Article VI to the fullest extent permitted by law. However, (a) no
contribution will be made under circumstances where the maker would not have
been liable for indemnification under the fault standards set forth in Article
VI, (b) no seller of Registrable Securities guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
will be entitled to contribution from any seller of Registrable Securities who
was not guilty of such fraudulent misrepresentation, and (c) contribution
(together with any indemnification or other obligations under this Agreement) by
any seller of Registrable Securities will be limited in amount to the net amount
of proceeds received by such seller from the sale of such Registrable
Securities.

                                  ARTICLE VIII
                             EXCHANGE ACT REPORTING

         In order to make available to the Investors the benefits of Rule 144 or
any similar rule or regulation of the SEC that may at any time permit the
Investors to sell securities of the Company to the public without registration,
the Company will:

                  (a)      File with the SEC in a timely manner, and make and
keep available, all reports and other documents required of the Company under
the Securities Act and the Exchange Act so long as the Company remains subject
to such requirements (it being understood that nothing herein limits the
Company's obligations under Section 4.3 of the Purchase Agreement) and the
filing and availability of such reports and other documents is required for the
applicable provisions of Rule 144; and

                                       14
<PAGE>

                  (b)      Furnish to each Investor who so requests, so long as
such Investor holds Convertible Notes, Warrants or Registrable Securities,
promptly upon the Investor's 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 filed by the Company
with the SEC and (iii) such other information as may be reasonably requested to
permit the Investors to sell such securities pursuant to Rule 144 without
registration.

                                   ARTICLE IX
                        ASSIGNMENT OF REGISTRATION RIGHTS

         The rights of the Investors hereunder, including the right to have the
Company register Registrable Securities pursuant to this Agreement, will be
automatically assigned by the Investors to transferees or assignees of all or
any portion of the Convertible Notes, Warrants or Registrable Securities, but
only if (a) the Investor agrees in writing with the transferee or assignee to
assign such rights, and a copy of such agreement is furnished to the Company
within a reasonable time after such assignment, (b) the Company is, within a
reasonable time after such transfer or assignment, furnished with written notice
of the name and address of such transferee or assignee and the securities with
respect to which such registration rights are being transferred or assigned, (c)
after such transfer or assignment, the further disposition of such securities by
the transferee or assignee is restricted under the Securities Act and applicable
state securities laws, (d) at or before the time the Company received the
written notice contemplated by clause (b) of this sentence, the transferee or
assignee agrees in writing with the Company to be bound by all of the provisions
contained herein, (e) such transfer is made in accordance with the applicable
requirements of the Purchase Agreement or the Warrant, as the case may be, and
(f) the transferee is an "accredited investor" as that term is defined in Rule
501 of Regulation D. Any transferee or assignee of an Investor under this
Article IX shall be deemed an "Investor" for all purposes of this Agreement, and
shall be entitled to all rights of, and subject to all obligations (including
indemnification obligations) of, an Investor hereunder.

                                    ARTICLE X
                        AMENDMENT OF REGISTRATION RIGHTS

         This Agreement may be amended and the obligations hereunder may be
waived (either generally or in a particular instance, and either retroactively
or prospectively) only with the written consent of the Company and each Investor
(but not including any Investor who is not affected by such amendment or
waiver). Any amendment or waiver effected in accordance with this Article X is
binding upon each Investor (and each future holder of all such Registrable
Securities) and the Company. Notwithstanding the foregoing, no amendment or
waiver will retroactively affect any Investor without its consent, or will
prospectively adversely affect any Investor who no longer owns any Convertible
Notes, Warrants or Registrable Securities without its consent. Neither Article
VI nor Article VII hereof may be amended or waived in a manner adverse to an
Investor without its consent.

                                       15
<PAGE>

                                   ARTICLE XI
                                  MISCELLANEOUS

         11.1     CONFLICTING INSTRUCTIONS. A person or entity is deemed to be a
holder of Registrable Securities whenever such person or entity owns of record
such Registrable Securities. If the Company receives conflicting instructions,
notices or elections from two or more persons or entities with respect to the
same Registrable Securities, the Company will act upon the basis of
instructions, notice or election received from the registered owner of such
Registrable Securities.

         11.2     NOTICES. Any notices required or permitted to be given under
the terms of this Agreement will be given and deemed received as set forth in
the Purchase Agreement.

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

         11.4     GOVERNING LAW. This Agreement will be governed by and
interpreted in accordance with the laws of the State of Minnesota without regard
to the principles of conflict of laws. The parties hereto hereby submit to the
exclusive jurisdiction of the United States federal and state courts located in
the State of Minnesota with respect to any dispute arising under this Agreement,
the agreements entered into in connection herewith or the transactions
contemplated hereby or thereby.

         11.5     SEVERABILITY. If any provision of this Agreement is invalid or
unenforceable under any applicable statute or rule of law, then such provision
will be deemed modified in order to conform with such statute or rule of law.
Any provision hereof that may prove invalid or unenforceable under any law will
not affect the validity or enforceability of any other provision hereof.

         11.6     ENTIRE AGREEMENT. This Agreement, the Purchase Agreement and
the Warrants (including all schedules and exhibits thereto) constitute the
entire agreement among the parties hereto with respect to the subject matter
hereof and thereof. There are no restrictions, promises, warranties or
undertakings, other than those set forth or referred to herein or therein. This
Agreement supersedes all prior agreements and understandings among the parties
hereto with respect to the subject matter hereof.

         11.7     SUCCESSORS AND ASSIGNS. Subject to the requirements of Article
IX hereof, this Agreement inures to the benefit of and is binding upon the
successors and assigns of each of the parties hereto. Notwithstanding anything
to the contrary herein, including, without limitation, Article IX, the rights of
an Investor hereunder are assignable to and exercisable by a bona fide pledgee
of the Registrable Securities in connection with an Investor's margin or
brokerage accounts.

         11.8     USE OF PRONOUNS. All pronouns refer to the masculine, feminine
or neuter, singular or plural, as the context may require.

                                       16
<PAGE>

         11.9     HEADINGS. The headings of this Agreement are for convenience
of reference only, are not part of this Agreement and do not affect its
interpretation.

         11.10    COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which is deemed an original but all of which constitute
one and the same agreement. This Agreement, once executed by a party, may be
delivered to the other party hereto by facsimile transmission, and facsimile
signatures are binding on the parties hereto.

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

         11.12    CONSENTS. All consents and other determinations to be made by
the Investors pursuant to this Agreement will be made by the Investors holding a
majority in interest of the Registrable Securities, determined as if all
Convertible Notes and all Warrants then outstanding had been converted into or
exercised for Registrable Securities.

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

         11.14    NO THIRD-PARTY BENEFICIARIES. Other than as specifically
provided herein, this Agreement is intended to inure to the benefit of the
parties hereto only, and no other party shall have any rights, express or
implied, by reason of this Agreement.

         11.15    SATURDAYS, SUNDAYS, HOLIDAYS, ETC. If the last or appointed
day for the taking of any action required or permitted hereby shall be a
Saturday, Sunday, a nationally recognized holiday, or a state holiday in the
State of Minnesota, then such action may be taken on the next succeeding
business day.

         11.16    INDEPENDENT NATURE OF INVESTORS' OBLIGATIONS AND RIGHTS. The
obligations of each Investor under any of the Purchase Agreement, Convertible
Note, Warrant or this Agreement (collectively, the "Transaction Documents") are
several and not joint with the obligations of any other Investor, and no
Investor shall be responsible in any way for the performance of the obligations
of any other Investor under any Transaction Document. Nothing contained herein
or in any Transaction Document, and no action taken by any Investor pursuant
thereto, shall be deemed to constitute the Investors as a partnership, an
association, a joint venture or any other kind of entity, or create a
presumption that the Investors are in any way acting in concert or as a group
with respect to such obligations or the transactions contemplated by the
Transaction Document. Each Investor shall be entitled to independently protect
and enforce its rights, including without limitation the rights arising out of
this Agreement or out of the other Transaction Documents, and it shall not be
necessary for any other Investor to be joined as an additional party in any
proceeding for such purpose. The Company has elected to provide

                                       17
<PAGE>

all Investors with the same terms and Transaction Documents for the convenience
of the Company and not because it was required or requested to do so by the
Investors.

                            [signature pages follow]

                                       18
<PAGE>

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

                                              COMPANY:

                                              DELPHAX TECHNOLOGIES INC.

                                              By: /S/ ROBERT M. BARNISKIS
                                                 -------------------------------
                                                 Name: Robert M. Barniskis
                                                 Title: Vice President, Chief
                                                        Financial Officer and
                                                        Secretary

                       [Signatures continued on next page]

                                       19
<PAGE>

                                              INVESTOR:

                                              TATE CAPITAL PARTNERS FUND, LLC
                                              By Tate Capital Partners, LLC
                                              Its Managing Member
                                              By Tate Capital Management, LLC
                                              Its Managing Member

                                              By: /S/ KURTIS J. WINTERS
                                                 -------------------------------
                                                 Name: Kurtis J. Winters
                                                 Its: Managing Member

ADDRESS:

         Tate Capital Partners Fund, LLC
         3600 Minnesota Drive, Suite 525
         Minneapolis, MN 55435

                                       20

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