Document:

Exhibit 4.2

                                ESCROW AGREEMENT

      This Escrow Agreement (the "Agreement") is made by and between City
National Bank, a national banking association, with its principal office located
at 1950 Avenue of the Stars, 2nd Floor, Los Angeles, California 90067 (the
"Escrow Agent"), and SRKP 2, Inc., a Delaware corporation, with its principal
office located at 1900 Avenue of the Stars, Suite 310, Los Angeles, California
90067 (the "Issuer").

                              W I T N E S S E T H :

      WHEREAS, the Issuer has filed with the Securities and Exchange Commission
(the "Commission"), Washington, D.C., an SB-2 Registration Statement, as amended
(the "Registration Statement"), and related Prospectus, File No. 333-124164, in
connection with an initial public offering of the Issuer's securities,
comprising 700,000 shares of the Issuer's common stock to be sold at a price of
$0.17 per share (the "Securities");

      WHEREAS, the Issuer proposes to offer the Securities to the public on a
"best efforts, all or none" basis as set forth in the Registration Statement;

      WHEREAS, the Issuer proposes to establish an escrow account (the "Escrow
Account"), to which subscription funds which are received by the Escrow Agent in
connection with such public offering are to be credited, and the Escrow Agent is
willing to establish the Escrow Account on the terms and subject to the
conditions hereinafter set forth; and

      WHEREAS, the Escrow Agent will establish an Escrow Account into which the
subscription funds, which are received by the Escrow Agent and credited to the
Escrow Account, are to be deposited.

      NOW, THEREFORE, for and in consideration of the promises and mutual
covenants herein contained, and other valuable consideration, the parties hereto
hereby agree as follows:

1.0   The Registration Statement.

      1.1   The Issuer has filed the Registration Statement with the Commission
            and is included herein as Exhibit A to this Agreement, and is made a
            part hereof.

2.0   Establishment of the Escrow Account.

      2.1   The Issuer shall initially establish a non-interest bearing Escrow
            Account at the Escrow Agent. The purpose of the Escrow Account is
            for (a) the deposit of all subscription funds (checks or wire
            transfers) which are received by the Issuer from prospective
            purchasers of the Securities and are delivered by the Issuer to the
            Escrow Agent; (b) the holding of amounts of subscription funds which
            are collected through the banking system; and (c) the disbursement
            of collected funds, all as described herein. The Escrow Agent will
            hold all monies and other property in the Escrow Account free from
            any lien, claim or offset, except as set forth herein, and such
            monies and other property shall not become the property of the
            Company, nor subject to the debts thereof, unless the conditions set
            forth in these instructions to disbursement of such monies to the
            Company have been fully satisfied.
<PAGE>

      2.2   On or before the date of the initial deposit in the Escrow Account
            pursuant to this Agreement, the Issuer shall notify the Escrow Agent
            in writing of the effective date (the "Effective Date") of the
            Registration Statement, and the Escrow Agent shall not be required
            to accept any amounts for credit to the Escrow Account or for
            deposit in the Escrow Account prior to its receipt of such
            notification.

      2.3   The offering period (the "Offering Period"), which shall be deemed
            to commence on the Effective Date, shall be for a period of up to
            180 days. The Offering Period shall be less than 180 days if the
            Issuer sells all Securities for a total consideration of $119,000.
            The last day of the Offering Period, which is either 180 days from
            the Effective Date or the date on which the Issuer sells all
            Securities for a total consideration of $119,000, whichever occurs
            first, is also referred to herein as the "Termination Date." Except
            as provided in Section 4.3 hereof, after the Termination Date, the
            Issuer shall not deposit, and the Escrow Agent shall not accept, any
            additional amounts representing payments by prospective purchasers.

      2.4   If the Escrow Account remains open following the Termination Date in
            accordance with Article 4 below, the Fund (as defined in Section 3.5
            below) shall be placed in a money market investment account bearing
            interest at the Escrow Agent's then applicable rate; provided,
            however, that no interest shall accrue until the Escrow Agent has
            received an IRS Form W-9 completed and executed by the Company.

3.0   Deposits to the Escrow Account.

      3.1   The Issuer shall promptly deliver to the Escrow Agent all funds
            which it receives from prospective purchasers of the Securities,
            which funds shall be in the form of checks or wire transfers. Upon
            the Escrow Agent's receipt of such funds, they shall be credited to
            the Escrow Account. All checks delivered to the Escrow Agent shall
            be made payable to the "City National Bank/SRKP 2, Inc.'s Escrow
            Account." Any checks payable other than to the Escrow Agent as
            required hereby shall be returned to the prospective purchaser.

      3.2   Promptly after receiving subscription funds as described in Section
            3.1, the Escrow Agent shall deposit the same into the Escrow
            Account. Amounts of funds so deposited are hereinafter referred to
            as "Escrow Amounts." The Escrow Agent shall cause to process all
            Escrow Amounts for collection through the banking system.
            Simultaneously with each deposit to the Escrow Account, the Issuer
            shall inform the Escrow Agent in writing of the name, address and
            social security number of the prospective purchaser, the amount of
            Securities subscribed for by such purchaser, and the aggregate
            dollar amount of such subscription (collectively, the "Subscription
            Information").

                                  Page 2 of 10
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      3.3   The Escrow Agent shall not be required to accept for credit to the
            Escrow Account checks which are not accompanied by the appropriate
            Subscription Information. Wire transfers and cash representing
            payments by prospective purchasers shall not be deemed deposited in
            the Escrow Account until the Escrow Agent has received in writing
            the Subscription Information required with respect to such payments.

      3.4   The Escrow Agent shall not be required to accept in the Escrow
            Account any amounts representing payments by prospective purchasers,
            whether by check, or wire, except during the Escrow Agent's regular
            business hours.

      3.5   Only those Escrow Amounts, which have been deposited in the Escrow
            Account and which have cleared the banking system and have been
            collected by the Escrow Agent, are herein referred to as the "Fund."

      3.6   If the proposed offering is terminated before the Termination Date,
            the Escrow Agent shall refund any portion of the Fund prior to
            disbursement of the Fund in accordance with Article 4 hereof upon
            instructions in from the Issuer.

4.0   Disbursement from the Escrow Account.

      4.1   Subject to Section 4.3 below, if by the close of regular banking
            hours on the Termination Date the Escrow Agent determines that the
            amount in the Fund is less than $119,000, then the Escrow Agent
            shall promptly refund to each prospective purchaser the amount of
            payment received from such purchaser which is then held in the Fund
            or which thereafter clears the banking system, without interest
            thereon or deduction therefrom, by drawing checks on the Escrow
            Account for the amounts of such payments and mail them to the
            purchasers. In such event, the Escrow Agent shall promptly notify
            the Issuer of its distribution of the Fund. If the Fund is equal to
            $119,000, the Escrow Account shall remain open beyond the
            Termination Date in accordance with Section 4.2 below.

      4.2   If the Escrow Account remains open beyond the Termination Date, the
            Issuer must satisfy the following conditions:

      within five (5) business days after the effective date of the
post-effective amendment, the Issuer shall send by first class mail to each
purchaser of securities held in escrow, a copy of the prospectus contained in
the post-effective amendment and any amendment or supplement thereto;

      each purchaser shall have no fewer than twenty (20) business days and no
more than forty-five (45) business days from the effective date of the
post-effective amendment to notify the Issuer in writing that the purchaser
elects to remain an investor. If the Issuer has not received such written
notification by the forty-fifth (45th) business day following the Effective Date
of the post-effective amendment, funds and interest held in escrow shall be sent
by first class mail or other equally prompt means to the purchasers within five
(5) business days; an acquisition described in the post-effective amendment will
be consummated if a sufficient number of purchasers confirm their investment
with the Issuer; and if an acquisition has not been consummated by the Issuer
within eighteen (18) months after the Effective Date of the Registration
Statement, funds and interest held in escrow shall be returned by first class
mail to the purchasers with five (5) business days following that date. It shall
be the responsibility of the Issuer to notify the Escrow Agent if any of the
above conditions are not timely satisfied. Additionally, it shall be the
Issuer's responsibility to timely provide instructions to the Escrow Agent with
respect to interest calculations prior to release of funds and interest to the
purchasers in accordance with the terms of this Section 4.2.

                                  Page 3 of 10
<PAGE>

      Funds held in the Escrow Account may be released to the Issuer and
Securities may be delivered to the purchasers only at the same time as or after:

      the Escrow Agent has received a signed representation from the Issuer that
the requirements of paragraphs (e)(1) and (e)(2) of Rule 419 have been met; and

      the Escrow Agent has received a signed representation from the Issuer that
the requirements of paragraph (e)(2)(iii) of Rule 419 have been met.

      The Issuer shall be liable for any misrepresentations made to the Escrow
Agent with respect to this Section 4.2 and the Issuer agrees to indemnify the
Escrow Agent for any claims made by purchasers with respect to this Section 4.2
in accordance with Article 5 below; provided, however, the Issuer shall not be
responsible for the Escrow Agent's failure to timely release funds and interest
to the purchasers upon receipt of instructions from the Issuer.

      4.3   If the Escrow Agent has on hand at the close of business on the
            Termination Date any uncollected amounts which when added to the
            Fund would raise the amount in the Fund to the minimum offering
            amount, and result in the Fund representing the sale of the minimum
            offering amount, consisting of the number of business days set forth
            in the Registration Statement, shall be utilized to allow such
            uncollected funds to clear the banking system.

      4.4   Upon disbursement of the Fund pursuant to the terms of this Article
            4, the Escrow Agent shall be relieved of all further obligations and
            released from all liability under this Agreement. It is expressly
            agreed and understood that in no event shall the aggregate amount of
            payments made by the Escrow Agent exceed the amount of the Fund.

5.0   Rights, Duties And Responsibilities of the Escrow Agent; Indemnification.

      5.1   The Escrow Agent shall notify the Issuer on a regular basis of the
            escrow amounts which have been deposited in the Escrow Account and
            of the amounts, constituting the Fund, which have cleared the
            banking system and have been collected by the Escrow Agent.

      5.2   The Escrow Agent shall not be responsible for or be required to
            enforce any of the terms or conditions of the Agreement with respect
            to the Issuer.

                                  Page 4 of 10
<PAGE>

      5.3   The Escrow Agent shall not be required to accept from the Issuer any
            subscription information pertaining to prospective purchasers unless
            such Subscription Information is accompanied by checks or wire
            transfers meeting the requirement of Section 3.1, nor shall the
            Escrow Agent be required to keep records of any information with
            respect to payments deposited by the Issuer, except as to the amount
            of such payments; however, the Escrow Agent shall notify the Issuer
            within a reasonable time of any discrepancy between the amount set
            forth in any subscription information and the amount delivered to
            the Escrow Agent therewith. Such amount need not be accepted for
            deposit in the Escrow Agent until such discrepancy has been
            resolved.

      5.4   The Escrow Agent shall be under no duty or responsibility to enforce
            collection of any check delivered to it hereunder. The Escrow Agent,
            within a reasonable time, shall return to the Issuer any check
            received which is dishonored, together with the Subscription
            Information which accompanied such check.

      5.5   The Escrow Agent shall be entitled to rely upon the accuracy, act in
            reliance upon the contents, and assume the genuineness of any
            notice, instruction, certificate, signature, instrument or other
            document which is given to the Escrow Agent by the Issuer pursuant
            to this Agreement without the necessity of the Escrow Agent
            verifying the truth or accuracy thereof. The Escrow Agent shall not
            be obligated to make any inquiry as to the authority, capacity,
            existence or identity of any person purporting to give any such
            notice or instructions or to execute any such certificate,
            instrument or other document.

      5.6   If the Escrow Agent is uncertain as to its duties or rights
            hereunder or shall receive instructions with respect to the Escrow
            Account, the escrow amounts of the Fund which, in its sole
            determination, are in conflict either with other instructions
            received by it or with any provision of this Agreement, it shall be
            entitled to hold the escrow amounts, the Fund or a portion thereof,
            in the Escrow Account pending the resolution of such uncertainty to
            the Escrow Agent's sole satisfaction, by final judgment of a court
            of competent jurisdiction or otherwise; or the Escrow Agent, at its
            sole option, may deposit with the clerk of a court of competent
            jurisdiction in a proceeding to which all parties in interest are
            joined. Upon the deposit by the Escrow Agent of the Fund with the
            clerk of any court, the Escrow Agent shall be relieved of all
            further obligations and released from all liability hereunder.

      5.7   The Escrow Agent shall not be liable for any action taken or omitted
            hereunder, or for the misconduct of any employee, agent or attorney
            appointed by it, except in the case of willful misconduct or gross
            negligence. The Escrow Agent shall be entitled to consult with
            counsel of its own choosing and shall not be liable for any action
            taken, suffered or omitted by it in accordance with the advice of
            such counsel.

      5.8   The Escrow Agent shall have no responsibility at any time to
            ascertain whether or not any security interest exists in the escrow
            amounts, the Fund or any part thereof or to file any financing
            statement under the Uniform Commercial Code with respect to the Fund
            or any part thereof.

                                  Page 5 of 10
<PAGE>

      5.9   The Issuer agrees to indemnify the Escrow Agent and its officers,
            directors, employees, agents, and shareholders (jointly and
            severally, the "Indemnitees") against, and hold them harmless of and
            from, any and all losses, liabilities, costs, damages, and expenses,
            including, but not limited to, reasonable fees and disbursements for
            counsel of its own choosing (collectively, "Liabilities"), that the
            Indemnitees may suffer or incur and which arise out of or relate to
            this Agreement or any transaction to which this Agreement relates,
            unless such Liability is the result of the willful misconduct or
            gross negligence of the Indemnitees.

      5.10  If the indemnification provided for in this Section 5 is applicable
            but is held to be unavailable, the Issuer shall contribute such
            amounts as are just and equitable to pay or to reimburse the
            Indemnitees for the aggregate of any and all Liabilities actually
            incurred by the Indemnitees as a result of or in connection with any
            amount paid in settlement of any action, claim, or proceeding
            arising out of or relating in any way to any actions or omissions of
            the Issuer.

      5.11  The provisions of this Section 5 shal1 survive any termination of
            this Agreement, whether by disbursement of the Fund, resignation of
            the Escrow Agent, or otherwise.

6.0   Interpleader.

      6.1   In the event conflicting demands are made or notices served upon the
            Escrow Agent with respect to the Escrow Account, the Escrow Agent
            shall have the absolute right at its election to do either or both
            of the following: (a) Withhold and stop all further proceedings in,
            and performance of, this escrow or (b) File a suit in interpleader
            and obtain an order from the court requiring the parties to litigate
            their several claims and rights among themselves. In the event such
            interpleader suit is brought, the Escrow Agent shall be fully
            released from any obligation to perform any further duties imposed
            upon it hereunder, and the Company shall pay the Escrow Agent all
            costs, expenses and reasonable attorney's fees expended or incurred
            by Escrow Holder (or allocable to its in-house counsel), the amount
            thereof to be fixed and a judgment thereof to be rendered by the
            court in such suit.

7.0   Amendment; Resignation.

      7.1   This Agreement may be altered or amended only with the written
            consent of the parties hereto. The Escrow Agent may resign for any
            reason upon fourteen (14) days' written notice to the Issuer. Should
            the Escrow Agent resign as herein provided, it shall not be required
            to accept any deposit, make any disbursement or otherwise dispose of
            the escrow amounts, but its only duty shall be to hold the escrow
            accounts until they clear the banking system and the Fund for a
            period of not more than five (5) business days following the
            effective date of such resignation, at which time (a) if a successor
            escrow agent shall have been appointed and written notice thereof
            shall have been given to the resigning escrow agent by the Issuer
            and such successor escrow agent, then the resigning escrow agent
            shall pay over to the successor escrow agent the Fund, less any
            portion thereof previously paid out in accordance with this
            Agreement; or (b) if the resigning escrow agent shall not have
            received written notice signed by the Issuer and a successor escrow
            agent, then the resigning escrow agent shall promptly refund the
            amount in the Fund to each prospective purchaser, without interest
            thereon or deduction therefrom, and the resigning escrow agent shall
            promptly notify the Issuer of its liquidation and distribution of
            the Fund; whereupon, in either case, the Escrow Agent shall be
            relieved of all further obligations and released from all liability
            under this Agreement. Without limiting the provisions of Section 9.1
            hereof, the resigning escrow agent shall be entitled to be
            reimbursed by the Issuer for any expenses incurred in connection
            with its resignation, transfer of the Fund to a successor escrow
            agent or distribution of the Fund pursuant to this Section 7.1.

                                  Page 6 of 10
<PAGE>

8.0   Representations and Warranties.

      8.1   The Issuer represents and warrants to the Escrow Agent that no party
            other than the parties hereto and the prospective purchasers have,
            or shall have, any claim or security interest in the Fund or any
            part thereof.

      8.2   No financing statement under the Uniform Commercial Code is on file
            in any jurisdiction claiming a security interest in or describing
            the Fund or any part thereof.

      8.3   The Subscription Information submitted with each deposit shall, at
            the time of submission and at the time of the disbursement of the
            Fund, be deemed a representation and warranty that such deposit
            represents a bona fide payment by the purchaser described therein
            for the amount of Securities set forth in such Subscription
            Information.

      8.4   All of the information contained in the Registration Statement is,
            as of the date hereof, and will be, at the time of any disbursement
            of the Fund, true and correct.

9.0   Fees and Expenses.

      9.1   The Escrow Agent shall be entitled to an acceptance fee of $2,000
            and an annual administrative fee of $2,000, payable upon the
            execution of this Agreement. In addition, the Issuer agrees to
            reimburse the Escrow Agent for any reasonable fees and expenses
            incurred in connection with this Agreement, which shall be in
            accordance with the fee schedule set forth on Exhibit B hereto.

                                  Page 7 of 10
<PAGE>

10.0  Governing Law and Assignment.

      10.1  This Agreement shall be construed in accordance with and governed by
            the laws of the State of California shall be binding upon the
            parties hereto and their respective successors and assigns;
            provided, however, that any assignment or transfer by any party of
            its rights under this Agreement or with respect to the Fund shall be
            void as against the Escrow Agent unless (a) written notice thereof
            shall be given to the Escrow Agent; and (b) the Escrow Agent shall
            have consented in writing to such assignment or transfer.

11.0  Notices.

      11.1  All notices required to be given in connection with this Agreement
            shall be sent by registered or certified mail, return receipt
            requested, or by hand delivery with receipt acknowledged, or by
            Express Mail service offered by the United States Post Office to the
            parties at the following addresses (or at such other address for a
            party as shall be specified by like notice):

            (a) if to the Escrow Agent:

                  City National Bank
                  1950 Avenue of the Stars, 2nd Floor,
                  Los Angeles, California 90067
                  Telephone: (310) 282-2921
                  Facsilile: (310) 282-2936
                  Attn:  Sue Behning

            (b) if to the Issuer:

                  SRKP 2, Inc.
                  1900 Avenue of the Stars, Suite 310,
                  Los Angeles, California 90067
                  Telephone: (310) 203-2902
                  Facsilile: (310) 472-0578
                  Attn:  Richard Rappaport

12.0  Severability.

      12.1  If any provision of this Agreement or the application thereof to any
            person or circumstance shall be determined to be invalid or
            unenforceable, the remaining provisions of this Agreement or the
            application of such provision to persons of circumstances other than
            those to which it is held invalid or unenforceable shall not be
            affected thereby and shall be valid and enforceable to the fullest
            extent permitted by law.

13.0  Execution in Several Counterparts; Entire Agreement.

      13.1  This Agreement may be executed in several counterparts or by
            separate instruments, all of such counterparts and instruments shall
            constitute one agreement, binding on all of the parties hereto.

                                  Page 8 of 10
<PAGE>

      13.2  This Agreement constitutes the entire agreement between the parties
            hereto with respect to the subject matter hereof and supersedes all
            prior agreements and understandings, written or oral, of the parties
            in connection therewith.

                                  Page 9 of 10
<PAGE>

      IN WITNESS WHEREOF, the undersigned parties have executed this Agreement
upon proper legal authority as of the 26 day of May, 2005.

                                      City National Bank, a national banking
                                      association

                                      By: /s/ Sue Behning
                                          -------------------------------------
                                          __________________, its Trust Officer

                                      SRKP 2, Inc., a Delaware corporation

                                      By: /s/ Richard Rappaport
                                          --------------------------------------
                                          Richard Rappaport, its Chief Executive
                                          Officer

                                  Page 10 of 10Exhibit 4.3

                          REGISTRATION RIGHTS AGREEMENT

      This Registration Rights Agreement ("Agreement") is entered into as of the
10th day of March, 2005, by and among SRKP 2, Inc., a Delaware corporation (the
"Company"), and the undersigned parties listed under Investor on the signature
page hereto (each, an "Investor" and collectively, the "Investors").

      The Investors currently hold all of the issued and outstanding securities
of the Company; and

      The Investors and the Company desire to enter into this Agreement to
provide the Investors with certain rights relating to the registration of shares
of Common Stock (as defined below) held by them.

      NOW, THEREFORE, in consideration of the mutual covenants and agreements
set forth herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

1.    DEFINITIONS. The following capitalized terms used herein have the
      following meanings:

      "Agreement" means this Agreement, as amended, restated, supplemented, or
otherwise modified from time to time.

      "Commission" means the Securities and Exchange Commission, or any other
federal agency then administering the Securities Act or the Exchange Act.

      "Common Stock" means the common stock, par value $0.001 per share, of the
Company.

      "Company" is defined in the preamble to this Agreement.

      "Demand Registration" is defined in Section 2.1.1.

      "Demanding Holder" is defined in Section 2.1.1.

      "Exchange Act" means the Securities Exchange Act of 1934, as amended, and
the rules and regulations of the Commission promulgated thereunder, all as the
same shall be in effect at the time.

      "Form S-3" is defined in Section 2.3.

      "Indemnified Party" is defined in Section 4.3.

      "Indemnifying Party" is defined in Section 4.3.

      "Investor" is defined in the preamble to this Agreement.

      "Investor Indemnified Party" is defined in Section 4.1.

      "IPO" is defined as the Company's initial public offering of its
securities in ___________, 2005, pursuant to a Registration Statement on Form
SB-2, as amended.

      "Maximum Number of Shares" is defined in Section 2.1.4.

      "Notices" is defined in Section 6.3.

      "Piggy-Back Registration" is defined in Section 2.2.1.

                                       1
<PAGE>

      "Prospectus" means the Company's prospectus relating to the IPO.

      "Register," "registered" and "registration" mean a registration effected
by preparing and filing a registration statement or similar document in
compliance with the requirements of the Securities Act, and the applicable rules
and regulations promulgated thereunder, and such registration statement becoming
effective.

      "Registrable Securities" means all of the shares of Common Stock held by
Investors. Registrable Securities includes shares of capital stock or other
securities of the Company issued as a dividend or other distribution with
respect to or in exchange for or in replacement of such shares of Common Stock.
As to any particular Registrable Securities, such securities shall cease to be
Registrable Securities when: (a) a Registration Statement with respect to the
sale of such securities shall have become effective under the Securities Act and
such securities shall have been sold, transferred, disposed of or exchanged in
accordance with such Registration Statement; (b) such securities shall have been
otherwise transferred, new certificates for them not bearing a legend
restricting further transfer shall have been delivered by the Company and
subsequent public distribution of them shall not require registration under the
Securities Act; (c) such securities shall have ceased to be outstanding; or (d)
the Securities and Exchange Commission makes a definitive determination to the
Company that the Registrable Securities are salable under Rule 144(k).

      "Registration Statement" means a registration statement filed by the
Company with the Commission in compliance with the Securities Act and the rules
and regulations promulgated thereunder for a public offering and sale of Common
Stock (other than a registration statement on Form S-4 or Form S-8, or its
successor, or any registration statement covering only securities proposed to be
issued in exchange for securities or assets of another entity).

      "Release Date" means the date upon which the Company consummates a
"business combination" with a "target business" as contemplated in the Company's
prospectus relating to its IPO.

      "Securities Act" means the Securities Act of 1933, as amended, and the
rules and regulations of the Commission promulgated thereunder, all as the same
shall be in effect at the time.

      "Underwriter" means a securities dealer who purchases any Registrable
Securities as principal in an underwritten offering and not as part of such
dealer's market-making activities.

2.    REGISTRATION RIGHTS.

      2.1 Demand Registration.

            2.1.1 Request for Registration. At any time and from time to time on
or after a date which is six (6) months following the Release Date, the holders
of a majority-in-interest of the Registrable Securities held by the Investors or
the transferees of the Investors, may make a written demand for registration
under the Securities Act of all or part of their Registrable Securities (a
"Demand Registration"). Any demand for a Demand Registration shall specify the
number of shares of Registrable Securities proposed to be sold and the intended
method(s) of distribution thereof. The Company will notify all holders of
Registrable Securities of the demand, and each holder of Registrable Securities
who wishes to include all or a portion of such holder's Registrable Securities
in the Demand Registration (each such holder including shares of Registrable
Securities in such registration, a "Demanding Holder") shall so notify the
Company within fifteen (15) days after the receipt by the holder of the notice
from the Company. Upon any such request, the Demanding Holders shall be entitled
to have their Registrable Securities included in the Demand Registration,
subject to Section 2.1.4 and the provisos set forth in Section 3.1.1. The
Company shall not be obligated to effect more than an aggregate of two (2)
Demand Registrations under this Section 2.1.1 in respect of Registrable
Securities.

            2.1.2 Effective Registration. A registration will not count as a
Demand Registration until the Registration Statement filed with the Commission
with respect to such Demand Registration has been declared effective and the
Company has complied with all of its obligations under this Agreement with
respect thereto; provided, however, that if, after such Registration Statement
has been declared effective, the offering of Registrable Securities pursuant to
a Demand Registration is interfered with by any stop order or injunction of the
Commission or any other governmental agency or court, the Registration Statement
with respect to such Demand Registration will be deemed not to have been
declared effective, unless and until, (i) such stop order or injunction is
removed, rescinded or otherwise terminated, and (ii) a majority-in-interest of
the Demanding Holders thereafter elect to continue the offering; provided,
further, that the Company shall not be obligated to file a second Registration
Statement until a Registration Statement that has been filed is counted as a
Demand Registration or is terminated.

                                       2
<PAGE>

            2.1.3 Underwritten Offering. If a majority-in-interest of the
Demanding Holders so elect and such holders so advise the Company as part of
their written demand for a Demand Registration, the offering of such Registrable
Securities pursuant to such Demand Registration shall be in the form of an
underwritten offering. In such event, the right of any holder to include its
Registrable Securities in such registration shall be conditioned upon such
holder's participation in such underwriting and the inclusion of such holder's
Registrable Securities in the underwriting to the extent provided herein. All
Demanding Holders proposing to distribute their securities through such
underwriting shall enter into an underwriting agreement in customary form with
the Underwriter or Underwriters selected for such underwriting by a
majority-in-interest of the holders initiating the Demand Registration.

            2.1.4 Reduction of Offering. If the managing Underwriter or
Underwriters for a Demand Registration that is to be an underwritten offering
advises the Company and the Demanding Holders in writing that the dollar amount
or number of shares of Registrable Securities which the Demanding Holders desire
to sell, taken together with all other shares of Common Stock or other
securities which the Company desires to sell and the shares of Common Stock, if
any, as to which registration has been requested pursuant to written contractual
piggy-back registration rights held by other stockholders of the Company who
desire to sell, exceeds the maximum dollar amount or maximum number of shares
that can be sold in such offering without adversely affecting the proposed
offering price, the timing, the distribution method, or the probability of
success of such offering (such maximum dollar amount or maximum number of
shares, as applicable, the "Maximum Number of Shares"), then the Company shall
include in such registration: (i) first, the Registrable Securities as to which
Demand Registration has been requested by the Demanding Holders (pro rata in
accordance with the number of shares of Registrable Securities which such
Demanding Holder has requested be included in such registration, regardless of
the number of shares of Registrable Securities held by each Demanding Holder)
that can be sold without exceeding the Maximum Number of Shares; (ii) second, to
the extent that the Maximum Number of Shares has not been reached under the
foregoing clause (i), the shares of Common Stock or other securities that the
Company desires to sell that can be sold without exceeding the Maximum Number of
Shares; (iii) third, to the extent that the Maximum Number of Shares has not
been reached under the foregoing clauses (i) and (ii), the shares of Common
Stock for the account of other persons that the Company is obligated to register
pursuant to written contractual arrangements with such persons and that can be
sold without exceeding the Maximum Number of Shares; and (v) fourth, to the
extent that the Maximum Number of Shares have not been reached under the
foregoing clauses (i), (ii), and (iii), the shares of Common Stock that other
stockholders desire to sell that can be sold without exceeding the Maximum
Number of Shares.

            2.1.5 Withdrawal. If a majority-in-interest of the Demanding Holders
disapprove of the terms of any underwriting or are not entitled to include all
of their Registrable Securities in any offering, such majority-in-interest of
the Demanding Holders may elect to withdraw from such offering by giving written
notice to the Company and the Underwriter or Underwriters of their request to
withdraw prior to the effectiveness of the Registration Statement filed with the
Commission with respect to such Demand Registration. If the majority-in-interest
of the Demanding Holders withdraws from a proposed offering relating to a Demand
Registration, then such registration shall not count as a Demand Registration
provided for in Section 2.1.1.

      2.2 Piggy-Back Registration.

            2.2.1 Piggy-Back Rights. If at any time on or after a date which is
six (6) months following the Release Date the Company proposes to file a
Registration Statement under the Securities Act with respect to an offering of
equity securities, or securities or other obligations exercisable or
exchangeable for, or convertible into, equity securities, by the Company for its
own account or for stockholders of the Company for their account (or by the
Company and by stockholders of the Company including, without limitation,
pursuant to Section 2.1), other than a Registration Statement (i) filed in
connection with any employee stock option or other benefit plan, (ii) for an
exchange offer or offering of securities solely to the Company's existing
stockholders, (iii) for an offering of debt that is convertible into equity
securities of the Company or (iv) for a dividend reinvestment plan, then the
Company shall (x) give written notice of such proposed filing to the holders of
Registrable Securities as soon as practicable but in no event less than ten (10)
days before the anticipated filing date, which notice shall describe the amount
and type of securities to be included in such offering, the intended method(s)
of distribution, and the name of the proposed managing Underwriter or
Underwriters, if any, of the offering, and (y) offer to the holders of
Registrable Securities in such notice the opportunity to register the sale of
such number of shares of Registrable Securities as such holders may request in
writing within five (5) days following receipt of such notice (a "Piggy-Back
Registration"). The Company shall cause such Registrable Securities to be
included in such registration and shall use its best efforts to cause the
managing Underwriter or Underwriters of a proposed underwritten offering to
permit the Registrable Securities requested to be included in a Piggy-Back
Registration to be included on the same terms and conditions as any similar
securities of the Company and to permit the sale or other disposition of such
Registrable Securities in accordance with the intended method(s) of distribution
thereof. All holders of Registrable Securities proposing to distribute their
securities through a Piggy-Back Registration that involves an Underwriter or
Underwriters shall enter into an underwriting agreement in customary Form with
the Underwriter or Underwriters selected for such Piggy-Back Registration.

                                       3
<PAGE>

            2.2.2 Reduction of Offering. If the managing Underwriter or
Underwriters for a Piggy-Back Registration that is to be an underwritten
offering advises the Company and the holders of Registrable Securities in
writing that the dollar amount or number of shares of Common Stock which the
Company desires to sell, taken together with shares of Common Stock, if any, as
to which registration has been demanded pursuant to written contractual
arrangements with persons other than the holders of Registrable Securities
hereunder, the Registrable Securities as to which registration has been
requested under this Section 2.2, and the shares of Common Stock, if any, as to
which registration has been requested pursuant to the written contractual
piggy-back registration rights of other stockholders of the Company, exceeds the
Maximum Number of Shares, then the Company shall include in any such
registration:

            (i) If the registration is undertaken for the Company's account: (A)
      first, the shares of Common Stock or other securities that the Company
      desires to sell that can be sold without exceeding the Maximum Number of
      Shares; (B) second, to the extent that the Maximum Number of Shares has
      not been reached under the foregoing clause (A), the shares of Common
      Stock, if any, including the Registrable Securities, as to which
      registration has been requested pursuant to written contractual piggy-back
      registration rights of security holders (pro rata in accordance with the
      number of shares of Common Stock which each such person has actually
      requested to be included in such registration, regardless of the number of
      shares of Common Stock with respect to which such persons have the right
      to request such inclusion) that can be sold without exceeding the Maximum
      Number of Shares; and

            (ii) If the registration is a "demand" registration undertaken at
      the demand of persons other than the holders of Registrable Securities
      pursuant to written contractual arrangements with such persons, (A) first,
      the shares of Common Stock for the account of the demanding persons that
      can be sold without exceeding the Maximum Number of Shares; (B) second, to
      the extent that the Maximum Number of Shares has not been reached under
      the foregoing clause (A), the shares of Common Stock or other securities
      that the Company desires to sell that can be sold without exceeding the
      Maximum Number of Shares; and (C) third, to the extent that the Maximum
      Number of Shares has not been reached under the foregoing clauses (A) and
      (B), the Registrable Securities as to which registration has been
      requested under this Section 2.2 (pro rata in accordance with the number
      of shares of Registrable Securities held by each such holder); and (D)
      fourth, to the extent that the Maximum Number of Shares has not been
      reached under the foregoing clauses (A), (B) and (C), the shares of Common
      Stock, if any, as to which registration has been requested pursuant to
      written contractual piggy-back registration rights which such other
      stockholders desire to sell that can be sold without exceeding the Maximum
      Number of Shares.

            2.2.3 Withdrawal. Any holder of Registrable Securities may elect to
withdraw such holder's request for inclusion of Registrable Securities in any
Piggy-Back Registration by giving written notice to the Company of such request
to withdraw prior to the effectiveness of the Registration Statement. The
Company may also elect to withdraw a registration statement at any time prior to
the effectiveness of the Registration Statement. Notwithstanding any such
withdrawal, the Company shall pay all expenses incurred by the holders of
Registrable Securities in connection with such Piggy-Back Registration as
provided in Section 3.3.

                                       4
<PAGE>

      2.3 Registrations on Form S-3. The holders of Registrable Securities may
at any time and from time to time, request in writing that the Company register
the resale of any or all of such Registrable Securities on Form S-3 or any
similar short-Form registration which may be available at such time ("Form
S-3"); provided, however, that the Company shall not be obligated to effect such
request through an underwritten offering. Upon receipt of such written request,
the Company will promptly give written notice of the proposed registration to
all other holders of Registrable Securities, and, as soon as practicable
thereafter, effect the registration of all or such portion of such holder's or
holders' Registrable Securities as are specified in such request, together with
all or such portion of the Registrable Securities of any other holder or holders
joining in such request as are specified in a written request given within
fifteen (15) days after receipt of such written notice from the Company;
provided, however, that the Company shall not be obligated to effect any such
registration pursuant to this Section 2.3: (i) if Form S-3 is not available for
such offering; or (ii) if the holders of the Registrable Securities, together
with the holders of any other securities of the Company entitled to inclusion in
such registration, propose to sell Registrable Securities and such other
securities (if any) at any aggregate price to the public of less than $500,000.
Registrations effected pursuant to this Section 2.3 shall not be counted as
Demand Registrations effected pursuant to Section 2.1.

3.    REGISTRATION PROCEDURES.

      3.1 Filings; Information. Whenever the Company is required to effect the
registration of any Registrable Securities pursuant to Section 2, the Company
shall use its best efforts to effect the registration and sale of such
Registrable Securities in accordance with the intended method(s) of distribution
thereof as expeditiously as practicable, and in connection with any such
request:

            3.1.1 Filing Registration Statement. The Company shall, as
expeditiously as possible and in any event within sixty (60) days after receipt
of a request for a Demand Registration pursuant to Section 2.1, prepare and file
with the Commission a Registration Statement on any form for which the Company
then qualifies or which counsel for the Company shall deem appropriate and which
form shall be available for the sale of all Registrable Securities to be
registered thereunder in accordance with the intended method(s) of distribution
thereof, and shall use its best efforts to cause such Registration Statement to
become and remain effective for the period required by Section 3.1.3; provided,
however, that the Company shall have the right to defer any Demand Registration
for up to thirty (30) days, and any Piggy-Back Registration for such period as
may be applicable to deferment of any demand registration to which such
Piggy-Back Registration relates, in each case if the Company shall furnish to
the holders a certificate signed by the Chief Executive Officer of the Company
stating that, in the good faith judgment of the Board of Directors of the
Company, it would be materially detrimental to the Company and its stockholders
for such Registration Statement to be effected at such time; provided further,
however, that the Company shall not have the right to exercise the right set
forth in the immediately preceding proviso more than once in any 365-day period
in respect of a Demand Registration hereunder.

            3.1.2 Copies. The Company shall, prior to filing a Registration
Statement or prospectus, or any amendment or supplement thereto, furnish without
charge to the holders of Registrable Securities included in such registration,
and such holders' legal counsel, copies of such Registration Statement as
proposed to be filed, each amendment and supplement to such Registration
Statement (in each case including all exhibits thereto and documents
incorporated by reference therein), the prospectus included in such Registration
Statement (including each preliminary prospectus), and such other documents as
the holders of Registrable Securities included in such registration or legal
counsel for any such holders may request in order to facilitate the disposition
of the Registrable Securities owned by such holders.

            3.1.3 Amendments and Supplements. The Company shall prepare and file
with the Commission such amendments, including post-effective amendments, and
supplements to such Registration Statement and the prospectus used in connection
therewith as may be necessary to keep such Registration Statement effective and
in compliance with the provisions of the Securities Act until all Registrable
Securities and other securities covered by such Registration Statement have been
disposed of in accordance with the intended method(s) of distribution set forth
in such Registration Statement (which period shall not exceed the sum of one
hundred eighty (180) days plus any period during which any such disposition is
interfered with by any stop order or injunction of the Commission or any
governmental agency or court) or such securities have been withdrawn.

                                       5
<PAGE>

            3.1.4 Notification. After the filing of a Registration Statement,
the Company shall promptly, and in no event more than two (2) business days
after such filing, notify the holders of Registrable Securities included in such
Registration Statement of such filing, and shall further notify such holders
promptly and confirm such advice in writing in all events within two (2)
business days of the occurrence of any of the following: (i) when such
Registration Statement becomes effective; (ii) when any post-effective amendment
to such Registration Statement becomes effective; (iii) the issuance or
threatened issuance by the Commission of any stop order (and the Company shall
take all actions required to prevent the entry of such stop order or to remove
it if entered); and (iv) any request by the Commission for any amendment or
supplement to such Registration Statement or any prospectus relating thereto or
for additional information or of the occurrence of an event requiring the
preparation of a supplement or amendment to such prospectus so that, as
thereafter delivered to the purchasers of the securities covered by such
Registration Statement, such prospectus will not contain an untrue statement of
a material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein not misleading, and promptly make
available to the holders of Registrable Securities included in such Registration
Statement any such supplement or amendment; except that before filing with the
Commission a Registration Statement or prospectus or any amendment or supplement
thereto, including documents incorporated by reference, the Company shall
furnish to the holders of Registrable Securities included in such Registration
Statement and to the legal counsel for any such holders, copies of all such
documents proposed to be filed sufficiently in advance of filing to provide such
holders and legal counsel with a reasonable opportunity to review such documents
and comment thereon, and the Company shall not file any Registration Statement
or prospectus or amendment or supplement thereto, including documents
incorporated by reference, to which such holders or their legal counsel shall
object.

            3.1.5 State Securities Laws Compliance. The Company shall use its
best efforts to (i) register or qualify the Registrable Securities covered by
the Registration Statement under such securities or "blue sky" laws of such
jurisdictions in the United States as the holders of Registrable Securities
included in such Registration Statement (in light of their intended plan of
distribution) may request and (ii) take such action necessary to cause such
Registrable Securities covered by the Registration Statement to be registered
with or approved by such other governmental authorities as may be necessary by
virtue of the business and operations of the Company and do any and all other
acts and things that may be necessary or advisable to enable the holders of
Registrable Securities included in such Registration Statement to consummate the
disposition of such Registrable Securities in such jurisdictions; provided,
however, that the Company shall not be required to qualify generally to do
business in any jurisdiction where it would not otherwise be required to qualify
but for this paragraph (e) or subject itself to taxation in any such
jurisdiction.

            3.1.6 Agreements for Disposition. The Company shall enter into
customary agreements (including, if applicable, an underwriting agreement in
customary form) and take such other actions as are reasonably required in order
to expedite or facilitate the disposition of such Registrable Securities. The
representations, warranties and covenants of the Company in any underwriting
agreement which are made to or for the benefit of any Underwriters, to the
extent applicable, shall also be made to and for the benefit of the holders of
Registrable Securities included in such registration statement. No holder of
Registrable Securities included in such registration statement shall be required
to make any representations or warranties in the underwriting agreement except,
if applicable, with respect to such holder's organization, good standing,
authority, title to Registrable Securities, lack of conflict of such sale with
such holder's material agreements and organizational documents, and with respect
to written information relating to such holder that such holder has furnished in
writing expressly for inclusion in such Registration Statement.

            3.1.7 Cooperation. The principal executive officer of the Company,
the principal financial officer of the Company, the principal accounting officer
of the Company and all other officers and members of the management of the
Company shall cooperate fully in any offering of Registrable Securities
hereunder, which cooperation shall include, without limitation, the preparation
of the Registration Statement with respect to such offering and all other
offering materials and related documents, and participation in meetings with
Underwriters, attorneys, accountants and potential investors.

            3.1.8 Records. The Company shall make available for inspection by
the holders of Registrable Securities included in such Registration Statement,
any Underwriter participating in any disposition pursuant to such registration
statement and any attorney, accountant or other professional retained by any
holder of Registrable Securities included in such Registration Statement or any
Underwriter, all financial and other records, pertinent corporate documents and
properties of the Company, as shall be necessary to enable them to exercise
their due diligence responsibility, and cause the Company's officers, directors
and employees to supply all information requested by any of them in connection
with such Registration Statement.

                                       6
<PAGE>

            3.1.9 Opinions and Comfort Letters. The Company shall furnish to
each holder of Registrable Securities included in any Registration Statement a
signed counterpart, addressed to such holder, of (i) any opinion of counsel to
the Company delivered to any Underwriter and (ii) any comfort letter from the
Company's independent public accountants delivered to any Underwriter. In the
event no legal opinion is delivered to any Underwriter, the Company shall
furnish to each holder of Registrable Securities included in such Registration
Statement, at any time that such holder elects to use a prospectus, an opinion
of counsel to the Company to the effect that the Registration Statement
containing such prospectus has been declared effective and that no stop order is
in effect.

            3.1.10 Earnings Statement. The Company shall comply with all
applicable rules and regulations of the Commission and the Securities Act, and
make available to its stockholders, as soon as practicable, an earnings
statement covering a period of twelve (12) months, beginning within three (3)
months after the effective date of the registration statement, which earnings
statement shall satisfy the provisions of Section 11(a) of the Securities Act
and Rule 158 thereunder.

            3.1.11 Listing. The Company shall use its best efforts to cause all
Registrable Securities included in any registration to be listed on such
exchanges or otherwise designated for trading in the same manner as similar
securities issued by the Company are then listed or designated or, if no such
similar securities are then listed or designated, in a manner satisfactory to
the holders of a majority of the Registrable Securities included in such
registration.

      3.2 Obligation to Suspend Distribution. Upon receipt of any notice from
the Company of the happening of any event of the kind described in Section
3.1.4(iv), or, in the case of a resale registration on Form S-3 pursuant to
Section 2.3 hereof, upon any suspension by the Company, pursuant to a written
insider trading compliance program adopted by the Company's Board of Directors,
of the ability of all "insiders" covered by such program to transact in the
Company's securities because of the existence of material non-public
information, each holder of Registrable Securities included in any registration
shall immediately discontinue disposition of such Registrable Securities
pursuant to the Registration Statement covering such Registrable Securities
until such holder receives the supplemented or amended prospectus contemplated
by Section 3.1.4(iv) or the restriction on the ability of "insiders" to transact
in the Company's securities is removed, as applicable, and, if so directed by
the Company, each such holder will deliver to the Company all copies, other than
permanent file copies then in such holder's possession, of the most recent
prospectus covering such Registrable Securities at the time of receipt of such
notice.

      3.3 Registration Expenses. The Company shall bear all costs and expenses
incurred in connection with any Demand Registration pursuant to Section 2.1, any
Piggy-Back Registration pursuant to Section 2.2, and any registration on Form
S-3 effected pursuant to Section 2.3, and all expenses incurred in performing or
complying with its other obligations under this Agreement, whether or not the
Registration Statement becomes effective, including, without limitation: (i) all
registration and filing fees; (ii) fees and expenses of compliance with
securities or "blue sky" laws (including fees and disbursements of counsel in
connection with blue sky qualifications of the Registrable Securities); (iii)
printing expenses; (iv) the Company's internal expenses (including, without
limitation, all salaries and expenses of its officers and employees); (v) the
fees and expenses incurred in connection with the listing of the Registrable
Securities as required by Section 3.1.11; (vi) National Association of
Securities Dealers, Inc. fees; (vii) fees and disbursements of counsel for the
Company and fees and expenses for independent certified public accountants
retained by the Company (including the expenses or costs associated with the
delivery of any opinions or comfort letters requested pursuant to Section
3.1.9); (viii) the fees and expenses of any special experts retained by the
Company in connection with such registration and (ix) the fees and expenses of
one legal counsel selected by the holders of a majority-in-interest of the
Registrable Securities included in such registration. The Company shall have no
obligation to pay any underwriting discounts or selling commissions attributable
to the Registrable Securities being sold by the holders thereof, which
underwriting discounts or selling commissions shall be borne by such holders.
Additionally, in an underwritten offering, all selling stockholders and the
Company shall bear the expenses of the underwriter pro rata in proportion to the
respective amount of shares each is selling in such offering.

                                       7
<PAGE>

      3.4 Information. The holders of Registrable Securities shall provide such
information as may reasonably be requested by the Company, or the managing
Underwriter, if any, in connection with the preparation of any Registration
Statement, including amendments and supplements thereto, in order to effect the
registration of any Registrable Securities under the Securities Act pursuant to
Section 2 and in connection with the Company's obligation to comply with federal
and applicable state securities laws.

4.    INDEMNIFICATION AND CONTRIBUTION.

      4.1 Indemnification by the Company. The Company agrees to indemnify and
hold harmless each Investor and each other holder of Registrable Securities, and
each of their respective officers, employees, affiliates, directors, partners,
members, attorneys and agents, and each person, if any, who controls an Investor
and each other holder of Registrable Securities (within the meaning of Section
15 of the Securities Act or Section 20 of the Exchange Act) (each, an "Investor
Indemnified Party"), from and against any expenses, losses, judgments, claims,
damages or liabilities, whether joint or several, arising out of or based upon
any untrue statement (or allegedly untrue statement) of a material fact
contained in any Registration Statement under which the sale of such Registrable
Securities was registered under the Securities Act, any preliminary prospectus,
final prospectus or summary prospectus contained in the Registration Statement,
or any amendment or supplement to such Registration Statement, or arising out of
or based upon any omission (or alleged omission) to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading, or any violation by the Company of the Securities Act or any rule or
regulation promulgated thereunder applicable to the Company and relating to
action or inaction required of the Company in connection with any such
registration; and the Company shall promptly reimburse the Investor Indemnified
Party for any legal and any other expenses reasonably incurred by such Investor
Indemnified Party in connection with investigating and defending any such
expense, loss, judgment, claim, damage, liability or action; provided, however,
that the Company will not be liable in any such case to the extent that any such
expense, loss, claim, damage or liability arises out of or is based upon any
untrue statement or allegedly untrue statement or omission or alleged omission
made in such Registration Statement, preliminary prospectus, final prospectus,
or summary prospectus, or any such amendment or supplement, in reliance upon and
in conformity with information furnished to the Company, in writing, by such
selling holder expressly for use therein. The Company also shall indemnify any
Underwriter of the Registrable Securities, their officers, affiliates,
directors, partners, members and agents and each person who controls such
Underwriter on substantially the same basis as that of the indemnification
provided above in this Section 4.1.

      4.2 Indemnification by Holders of Registrable Securities. Each selling
holder of Registrable Securities will, in the event that any registration is
being effected under the Securities Act pursuant to this Agreement of any
Registrable Securities held by such selling holder, indemnify and hold harmless
the Company, each of its directors and officers and each underwriter (if any),
and each other person, if any, who controls such selling holder or such
underwriter within the meaning of the Securities Act, against any losses,
claims, judgments, damages or liabilities, whether joint or several, insofar as
such losses, claims, judgments, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any untrue statement or allegedly untrue
statement of a material fact contained in any Registration Statement under which
the sale of such Registrable Securities was registered under the Securities Act,
any preliminary prospectus, final prospectus or summary prospectus contained in
the Registration Statement, or any amendment or supplement to the Registration
Statement, or arise out of or are based upon any omission or the alleged
omission to state a material fact required to be stated therein or necessary to
make the statement therein not misleading, if the statement or omission was made
in reliance upon and in conformity with information furnished in writing to the
Company by such selling holder expressly for use therein, and shall reimburse
the Company, its directors and officers, and each such controlling person for
any legal or other expenses reasonably incurred by any of them in connection
with investigation or defending any such loss, claim, damage, liability or
action. Each selling holder's indemnification obligations hereunder shall be
several and not joint and shall be limited to the amount of any net proceeds
actually received by such selling holder.

                                       8
<PAGE>

      4.3 Conduct of Indemnification Proceedings. Promptly after receipt by any
person of any notice of any loss, claim, damage or liability or any action in
respect of which indemnity may be sought pursuant to Section 4.1 or 4.2, such
person (the "Indemnified Party") shall, if a claim in respect thereof is to be
made against any other person for indemnification hereunder, notify such other
person (the "Indemnifying Party") in writing of the loss, claim, judgment,
damage, liability or action; provided, however, that the failure by the
Indemnified Party to notify the Indemnifying Party shall not relieve the
Indemnifying Party from any liability which the Indemnifying Party may have to
such Indemnified Party hereunder, except and solely to the extent the
Indemnifying Party is actually prejudiced by such failure. If the Indemnified
Party is seeking indemnification with respect to any claim or action brought
against the Indemnified Party, then the Indemnifying Party shall be entitled to
participate in such claim or action, and, to the extent that it wishes, jointly
with all other Indemnifying Parties, to assume control of the defense thereof
with counsel satisfactory to the Indemnified Party. After notice from the
Indemnifying Party to the Indemnified Party of its election to assume control of
the defense of such claim or action, the Indemnifying Party shall not be liable
to the Indemnified Party for any legal or other expenses subsequently incurred
by the Indemnified Party in connection with the defense thereof other than
reasonable costs of investigation; provided, however, that in any action in
which both the Indemnified Party and the Indemnifying Party are named as
defendants, the Indemnified Party shall have the right to employ separate
counsel (but no more than one such separate counsel) to represent the
Indemnified Party and its controlling persons who may be subject to liability
arising out of any claim in respect of which indemnity may be sought by the
Indemnified Party against the Indemnifying Party, with the fees and expenses of
such counsel to be paid by such Indemnifying Party if, based upon the written
opinion of counsel of such Indemnified Party, representation of both parties by
the same counsel would be inappropriate due to actual or potential differing
interests between them. No Indemnifying Party shall, without the prior written
consent of the Indemnified Party, consent to entry of judgment or effect any
settlement of any claim or pending or threatened proceeding in respect of which
the Indemnified Party is or could have been a party and indemnity could have
been sought hereunder by such Indemnified Party, unless such judgment or
settlement includes an unconditional release of such Indemnified Party from all
liability arising out of such claim or proceeding.

      4.4 Contribution.

            4.4.1 If the indemnification provided for in the foregoing Sections
4.1, 4.2 and 4.3 is unavailable to any Indemnified Party in respect of any loss,
claim, damage, liability or action referred to herein, then each such
Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall
contribute to the amount paid or payable by such Indemnified Party as a result
of such loss, claim, damage, liability or action in such proportion as is
appropriate to reflect the relative fault of the Indemnified Parties and the
Indemnifying Parties in connection with the actions or omissions which resulted
in such loss, claim, damage, liability or action, as well as any other relevant
equitable considerations. The relative fault of any Indemnified Party and any
Indemnifying Party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by such Indemnified Party or such Indemnifying Party and the parties'
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.

            4.4.2 The parties hereto agree that it would not be just and
equitable if contribution pursuant to this Section 4.4 were determined by pro
rata allocation or by any other method of allocation which does not take account
of the equitable considerations referred to in the immediately preceding Section
4.4.1. The amount paid or payable by an Indemnified Party as a result of any
loss, claim, damage, liability or action referred to in the immediately
preceding paragraph shall be deemed to include, subject to the limitations set
forth above, any legal or other expenses incurred by such Indemnified Party in
connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this Section 4.4, no holder of Registrable
Securities shall be required to contribute any amount in excess of the dollar
amount of the net proceeds (after payment of any underwriting fees, discounts,
commissions or taxes) actually received by such holder from the sale of
Registrable Securities which gave rise to such contribution obligation. No
person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation.

5.    UNDERWRITING AND DISTRIBUTION.

      5.1 Rule 144. The Company covenants that it shall file any reports
required to be filed by it under the Securities Act and the Exchange Act and
shall take such further action as the holders of Registrable Securities may
reasonably request, all to the extent required from time to time to enable such
holders to sell Registrable Securities without registration under the Securities
Act within the limitation of the exemptions provided by Rule 144 under the
Securities Act, as such Rules may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission.

                                       9
<PAGE>

6.    MISCELLANEOUS.

      6.1 Other Registration Rights. The Company represents and warrants that no
person, other than a holder of the Registrable Securities, has any right to
require the Company to register any shares of the Company's capital stock for
sale or to include shares of the Company's capital stock in any registration
filed by the Company for the sale of shares of capital stock for its own account
or for the account of any other person.

      6.2 Assignment; No Third Party Beneficiaries. This Agreement and the
rights, duties and obligations of the Company hereunder may not be assigned or
delegated by the Company in whole or in part. This Agreement and the rights,
duties and obligations of the holders of Registrable Securities hereunder may be
freely assigned or delegated by such holder of Registrable Securities in
conjunction with and to the extent of any transfer of Registrable Securities by
any such holder. This Agreement and the provisions hereof shall be binding upon
and shall inure to the benefit of each of the parties and their respective
successors and the permitted assigns of the Investor or holder of Registrable
Securities or of any assignee of the Investor or holder of Registrable
Securities. This Agreement is not intended to confer any rights or benefits on
any persons that are not party hereto other than as expressly set forth in
Article 4 and this Section 6.2.

      6.3 Notices. All notices, demands, requests, consents, approvals or other
communications (collectively, "Notices") required or permitted to be given
hereunder or which are given with respect to this Agreement shall be in writing
and shall be personally served, delivered by reputable air courier service with
charges prepaid, or transmitted by hand delivery, telegram, telex or facsimile,
addressed as set forth below, or to such other address as such party shall have
specified most recently by written notice. Notice shall be deemed given on the
date of service or transmission if personally served or transmitted by telegram,
telex or facsimile; provided, that if such service or transmission is not on a
business day or is after normal business hours, then such notice shall be deemed
given on the next business day. Notice otherwise sent as provided herein shall
be deemed given on the next business day following timely delivery of such
notice to a reputable air courier service with an order for next-day delivery.

      To the Company:

            SRKP 2, Inc.
            1900 Avenue of the Stars, Suite 310
            Los Angeles, CA  90076
            Attention:  President

      with a copy to:

            Kirkpatrick & Lockhart Nicholson Graham LLP
            10100 Santa Monica Boulevard, 7th Floor
            Los Angeles, CA  90067
            Attn:  Thomas J. Poletti, Esq.

      To an Investor, to:

            Richard Rappaport
            c/o SRKP 2, Inc.
            1900 Avenue of the Stars, Suite 310
            Los Angeles, CA  90076

            The Amanda Rappaport Trust
            c/o SRKP 2, Inc.
            1900 Avenue of the Stars, Suite 310
            Los Angeles, CA  90076
            Attn:  Richard Rappaport, Trustee

                                       10
<PAGE>

            The Kailey Rappaport Trust
            c/o SRKP 2, Inc.
            1900 Avenue of the Stars, Suite 310
            Los Angeles, CA  90076
            Attn: Richard Rappaport Trustee

            Debbie Schwartzberg
            c/o SRKP 2, Inc.
            1900 Avenue of the Stars, Suite 310
            Los Angeles, CA  90076

            Glenn Krinsky
            c/o SRKP 2, Inc.
            1900 Avenue of the Stars, Suite 310
            Los Angeles, CA  90076

            Tony Pintsopoulos
            c/o SRKP 2, Inc.
            1900 Avenue of the Stars, Suite 310
            Los Angeles, CA  90076

            Charles Frisco
            c/o SRKP 2, Inc.
            1900 Avenue of the Stars, Suite 310
            Los Angeles, CA  90076

      6.4 Severability. This Agreement shall be deemed severable, and the
invalidity or unenforceability of any term or provision hereof shall not affect
the validity or enforceability of this Agreement or of any other term or
provision hereof. Furthermore, in lieu of any such invalid or unenforceable term
or provision, the parties hereto intend that there shall be added as a part of
this Agreement a provision as similar in terms to such invalid or unenforceable
provision as may be possible and be valid and enforceable.

      6.5 Counterparts. This Agreement may be executed in multiple counterparts,
each of which shall be deemed an original, and all of which taken together shall
constitute one (1) and the same instrument.

      6.6 Entire Agreement. This Agreement (including all agreements entered
into pursuant hereto and all certificates and instruments delivered pursuant
hereto and thereto) constitute the entire agreement of the parties with respect
to the subject matter hereof and supersede all prior and contemporaneous
agreements, representations, understandings, negotiations and discussions
between the parties, whether oral or written.

      6.7 Modifications and Amendments. No amendment, modification or
termination of this Agreement shall be binding upon any party unless executed in
writing by such party.

      6.8 Titles and Headings. Titles and headings of sections of this Agreement
are for convenience only and shall not affect the construction of any provision
of this Agreement.

      6.9 Waivers and Extensions. Any party to this Agreement may waive any
right, breach or default which such party has the right to waive, provided that
such waiver will not be effective against the waiving party unless it is in
writing, is signed by such party, and specifically refers to this Agreement.
Waivers may be made in advance or after the right waived has arisen or the
breach or default waived has occurred. Any waiver may be conditional. No waiver
of any breach of any agreement or provision herein contained shall be deemed a
waiver of any preceding or succeeding breach thereof nor of any other agreement
or provision herein contained. No waiver or extension of time for performance of
any obligations or acts shall be deemed a waiver or extension of the time for
performance of any other obligations or acts.

                                       11
<PAGE>

      6.10 Remedies Cumulative. In the event that the Company fails to observe
or perform any covenant or agreement to be observed or performed under this
Agreement, the Investor or any other holder of Registrable Securities may
proceed to protect and enforce its rights by suit in equity or action at law,
whether for specific performance of any term contained in this Agreement or for
an injunction against the breach of any such term or in aid of the exercise of
any power granted in this Agreement or to enforce any other legal or equitable
right, or to take any one or more of such actions, without being required to
post a bond. None of the rights, powers or remedies conferred under this
Agreement shall be mutually exclusive, and each such right, power or remedy
shall be cumulative and in addition to any other right, power or remedy, whether
conferred by this Agreement or now or hereafter available at law, in equity, by
statute or otherwise.

      6.11 Governing Law. This Agreement shall be governed by, interpreted
under, and construed in accordance with the internal laws of the State of
Delaware applicable to agreements made and to be performed within the State of
Delaware, without giving effect to any choice-of-law provisions thereof that
would compel the application of the substantive laws of any other jurisdiction.

      6.12 Waiver of Trial by Jury. Each party hereby irrevocably and
unconditionally waives the right to a trial by jury in any action, suit,
counterclaim or other proceeding (whether based on contract, tort or otherwise)
arising out of, connected with or relating to this Agreement, the transactions
contemplated hereby, or the actions of the Investor in the negotiation,
administration, performance or enforcement hereof.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       12
<PAGE>

      IN WITNESS WHEREOF, the parties have caused this Registration Rights
Agreement to be executed and delivered by their duly authorized representatives
as of the date first written above.

                                       SRKP 2, Inc.
                                       a Delaware corporation

                                       By: /s/ Richard Rappaport
                                           -------------------------------------
                                           Name:  Richard Rappaport
                                           Title: President

INVESTORS:

/s/ Richard Rappaport
--------------------------------
Richard Rappaport

/s/ Richard Rappaport
--------------------------------
The Amanda Rappaport Trust
Richard Rappaport, Trustee

/s/ Richard Rappaport
--------------------------------
The Kailey Rappaport Trust
Richard Rappaport, Trustee

/s/ Debbie Schwartzberg
--------------------------------
Debbie Schwartzberg

/s/ Glenn Krinsky
--------------------------------
Glenn Krinsky

/s/ Tony Pintsopoulos
--------------------------------
Tony Pintsopoulos

--------------------------------
Charles Frisco

                                       13

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