Document:

EXHIBIT 4.2

                                                                       EXHIBIT A

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISIBLE
HAVE  BEEN  REGISTERED  WITH  THE  SECURITIES  AND  EXCHANGE  COMMISSION  OR THE
SECURITIES   COMMISSION  OF  ANY  STATE  IN  RELIANCE  UPON  AN  EXEMPTION  FROM
REGISTRATION  UNDER THE  SECURITIES  ACT OF 1933,  AS AMENDED  (THE  "SECURITIES
ACT"),  AND,  ACCORDINGLY,  MAY NOT BE OFFERED  OR SOLD  EXCEPT  PURSUANT  TO AN
EFFECTIVE  REGISTRATION  STATEMENT  UNDER THE  SECURITIES  ACT OR PURSUANT TO AN
AVAILABLE  EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE  REGISTRATION
REQUIREMENTS  OF THE  SECURITIES  ACT AND IN ACCORDANCE  WITH  APPLICABLE  STATE
SECURITIES  LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH  EFFECT,  THE  SUBSTANCE  OF WHICH SHALL BE  REASONABLY  ACCEPTABLE  TO THE
COMPANY.  THIS  SECURITY  MAY BE PLEDGED IN  CONNECTION  WITH A BONA FIDE MARGIN
ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

Original Issue Date: May 2, 2005

                                                                   $3,000,000.00

                     11% SENIOR SECURED NOTE DUE MAY 2, 2008

      THIS NOTE is one of a series of duly  authorized  and  issued  11%  Senior
Secured  Notes of Knockout  Holdings,  Inc.,  a Delaware  corporation,  having a
principal place of business at 100 W. Whitehall Ave.,  Northlake,  IL 60164-2349
(the "Company"), designated as its 11% Senior Secured Note, due May 2, 2008 (the
"Note(s)").

      FOR VALUE RECEIVED, the Company promises to pay to DCOFI MASTER LDC or its
registered  assigns (the  "Holder"),  the  principal sum of $3,000,000 on May 2,
2008 or such earlier date as the Notes are required or permitted to be repaid as
provided  hereunder (the "Maturity Date"),  and to pay interest to the Holder on
the aggregate then outstanding  principal amount of this Note in accordance with
the  provisions  hereof.  This  Note  is  subject  to the  following  additional
provisions:

      Section 1. Definitions.  For the purposes hereof, in addition to the terms
defined  elsewhere in this Note:  (a)  capitalized  terms not otherwise  defined
herein have the meanings given to such terms in the Purchase Agreement,  and (b)
the following terms shall have the following meanings:

            "Alternate  Consideration"  shall  have  the  meaning  set  forth in
      Section 5(c).

            "Business  Day"  means any day except  Saturday,  Sunday and any day
      which shall be a federal  legal  holiday in the United  States or a day on
      which  banking  institutions  in the State of New York are  authorized  or
      required by law or other government action to close.

            "Change of Control  Transaction"  means the occurrence of any of (i)
      an  acquisition  after the date hereof by an individual or legal entity or
      "group" (as described in Rule 13d-5(b)(1)  promulgated  under the Exchange
      Act) of effective  control (whether through legal or beneficial  ownership

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      of capital stock of the Company, by contract or otherwise) of in excess of
      33% of the voting securities of the Company,  or (ii) a replacement at one
      time or within a one-year  period of more than  one-half of the members of
      the  Company's  board of directors  which is not approved by a majority of
      those  individuals  who are members of the board of  directors on the date
      hereof (or by those individuals who are serving as members of the board of
      directors  on any date  whose  nomination  to the board of  directors  was
      approved by a majority of the  members of the board of  directors  who are
      members on the date  hereof),  or (iii) the execution by the Company of an
      agreement  to which  the  Company  is a party  or by  which  it is  bound,
      providing for any of the events set forth above in (i) or (ii).

            "Common  Stock" means the common  stock,  par value  $0.001,  of the
      Company and stock of any other class into which such shares may  hereafter
      have been reclassified or changed.

            "Equity  Conditions" shall mean, during the period in question,  (i)
      the Company shall have duly honored all redemptions scheduled to occur, if
      any, (ii) all liquidated damages and other amounts owing in respect of the
      Notes  shall  have been paid;  (iii)  there is an  effective  Registration
      Statement  pursuant  to which  the  Holder is  permitted  to  utilize  the
      prospectus thereunder to resell all of the shares issuable pursuant to the
      Transaction  Documents (and the Company believes, in good faith, that such
      effectiveness  will continue  uninterrupted  for the foreseeable  future),
      (iv) the  Common  Stock is trading  on the  Trading  Market and all of the
      shares  issuable  pursuant  to the  Transaction  Documents  are listed for
      trading on a Trading Market (and the Company believes, in good faith, that
      trading  of  the  Common   Stock  on  a  Trading   Market  will   continue
      uninterrupted  for the  foreseeable  future),  (v)  there is a  sufficient
      number of  authorized  but unissued  and  otherwise  unreserved  shares of
      Common  Stock for the issuance of all of the shares  issuable  pursuant to
      the Transaction Documents, (vi) there is then existing no Event of Default
      or event  which,  with the passage of time or the giving of notice,  would
      constitute an Event of Default, (vii) all of the shares issued or issuable
      pursuant to the transaction proposed would not violate the limitations set
      forth in  Section  4, and  (viii) no public  announcement  of a pending or
      proposed  Fundamental  Transaction,   Change  of  Control  Transaction  or
      acquisition transaction has occurred that has not been consummated.

            "Escrow  Agreement" shall mean the escrow agreement,  in the form of
      Exhibit E attached to the Purchase Agreement.

            "Event of Default" shall have the meaning set forth in Section 8.

            "Exchange  Act"  means  the  Securities  Exchange  Act of  1934,  as
      amended.

            "Fundamental  Transaction"  shall  have  the  meaning  set  forth in
      Section 5(c) hereof.

            "Interest  Conversion  Rate" means 85% the  average  VWAP for the 20
      days immediately prior to the applicable Interest Payment Date.

            "Late Fees" shall have the meaning set forth in the second paragraph
      to this Note.

            "Mandatory  Prepayment  Amount"  shall  equal the sum of 115% of the
      principal  amount of the Notes  outstanding,  plus all  accrued and unpaid
      interest thereon.

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            "Monthly  Redemption" shall mean the redemption of the Note pursuant
      to Section 6(a) hereof.

            "Monthly  Redemption Amount" shall mean, as to a Monthly Redemption,
      1/21st the original principal amount in the aggregate among all Holders.

            "Monthly  Redemption  Date"  means  the first  Business  Day of each
      month,  commencing 15 months after the Original Issue Date and ending upon
      the full redemption of this Note.

            "Original  Issue Date" shall mean the date of the first  issuance of
      the Notes regardless of the number of transfers of any Note and regardless
      of the number of instruments which may be issued to evidence such Note.

            "Person"  means  a  corporation,   an  association,  a  partnership,
      organization,  a  business,  an  individual,  a  government  or  political
      subdivision thereof or a governmental agency.

            "Prepayment  Amount"  for any Notes  shall  equal the sum of (i) (A)
      108% of the principal amount of Notes to be prepaid,  plus all accrued and
      unpaid interest  thereon if such  prepayment  shall occur on or before one
      year from the date hereof, or (B) 105% of the principal amount of Notes to
      be  prepaid,  plus  all  accrued  and  unpaid  interest  thereon  if  such
      prepayment  shall  occur after one year but before two years from the date
      hereof,  or (C) 102% of the  principal  amount of the Notes to be prepaid,
      plus all  accrued and unpaid  interest  thereon if such  prepayment  shall
      occur  after two years but before  three years from the date  hereof,  and
      (ii) all other  amounts,  costs,  expenses and  liquidated  damages due in
      respect of such Notes.

            "Purchase Agreement" means the Securities Purchase Agreement,  dated
      as of May 2,  2005,  to which the  Company  and the  original  Holder  are
      parties,  as  amended,  modified  or  supplemented  from  time  to time in
      accordance with its terms.

            "Securities  Act" means the Securities Act of 1933, as amended,  and
      the rules and regulations promulgated thereunder.

            "Subsidiary"  shall  have  the  meaning  given  to such  term in the
      Purchase Agreement.

            "Trading  Day" means a day on which the Common  Stock is traded on a
      Trading Market.

            "Trading  Market" means the following  markets or exchanges on which
      the Common  Stock is listed or quoted for trading on the date in question:
      the Nasdaq  SmallCap  Market,  the American Stock  Exchange,  the New York
      Stock Exchange, the Nasdaq National Market or the OTC Bulletin Board.

            "Transaction  Documents"  shall  have the  meaning  set forth in the
      Purchase Agreement.

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            "VWAP" means, for any date, the price determined by the first of the
      following clauses that applies:  (a) if the Common Stock is then listed or
      quoted on a Trading Market, the daily volume weighted average price of the
      Common Stock for such date (or the nearest  preceding date) on the primary
      Trading  Market  on which  the  Common  Stock is then  listed or quoted as
      reported by  Bloomberg  Financial  L.P.  (based on a Trading Day from 9:30
      a.m. EST to 4:02 p.m.  Eastern  Time) using the VAP  function;  (b) if the
      Common  Stock is not then  listed or quoted on the  Trading  Market and if
      prices  for the  Common  Stock  are then  reported  in the  "Pink  Sheets"
      published by the Pink  Sheets,  LLC (or a similar  organization  or agency
      succeeding  to its  functions  of reporting  prices),  the most recent bid
      price  per  share of the  Common  Stock so  reported;  or (c) in all other
      cases, the fair market value of a share of Common Stock as determined by a
      nationally  recognized-independent  appraiser  selected  in good  faith by
      Purchasers  holding a  majority  of the  principal  amount  of Notes  then
      outstanding.

      Section 2. Interest and Prepayments.

            a)    Payment of  Interest in Cash or Kind.  The  Company  shall pay
      interest to the Holder on the aggregate then outstanding  principal amount
      of this Note at the rate of 11% per annum,  payable  quarterly in arrears,
      beginning on the first such date after the Original  Issue Date and on the
      Maturity  Date (except  that, if any such date is not a Business Day, then
      such payment shall be due on the next succeeding Business Day) and on each
      Monthly  Redemption Date (as to that principal amount then being redeemed)
      (each  such date,  an  "Interest  Payment  Date"),  in cash.  The first 15
      months'  interest  shall be held in  escrow  pursuant  to the terms of the
      Escrow  Agreement.  After the  expiration  of 15 months from the  Original
      Issue  Date,  the  Company  shall have the option to pay the  interest  in
      shares of Common  Stock at the Interest  Conversion  Rate,  or cash,  or a
      combination thereof; provided,  however, payment in shares of Common Stock
      may only  occur if during  the 20 Trading  Days  immediately  prior to the
      applicable  Interest  Payment Date all of the Equity  Conditions have been
      met,  the  payment in shares of Common  Stock  would not exceed 25% of the
      trading  volume for any of the  previous  10 Trading  Days and the Company
      shall  have  given  the  Holder  notice  in  accordance  with  the  notice
      requirements set forth below.

            b)    Company's  Election to Pay  Interest  in Kind.  Subject to the
      terms and  conditions  herein,  after the expiration of 15 months from the
      Original Issue Date hereof, the decision whether to pay interest hereunder
      in  shares  of  Common  Stock or cash  shall be at the  discretion  of the
      Company.  Not less than 10  Trading  Days prior to each  Interest  Payment
      Date,  the Company  shall  provide the Holder with  written  notice of its
      election  to pay  interest  hereunder  either  in cash or shares of Common
      Stock (the Company may indicate in such notice that the election contained
      in such notice shall continue for later periods until revised).  Within 10
      Trading Days prior to an Interest  Payment Date,  the  Company's  election
      (whether  specific to an Interest  Payment  Date or  continuous)  shall be
      irrevocable   as  to  such   Interest   Payment   Date.   Subject  to  the
      aforementioned  conditions,  failure to timely provide such written notice
      shall be deemed an  election  by the  Company to pay the  interest on such
      Interest Payment Date in cash.

            c)    Interest  Calculations.  Interest  shall be  calculated on the
      basis of a 360-day year and shall accrue daily  commencing on the Original
      Issue Date until payment in full of the principal  sum,  together with all
      accrued  and  unpaid  interest  and other  amounts  which may  become  due
      hereunder, has been made. Interest hereunder will be paid to the Person in
      whose name this Note is registered on the records of the Company regarding

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      registration  and  transfers  of Notes  (the "Note  Register").  Except as
      otherwise  provided  herein,  if at any time  the  Company  pays  interest
      partially  in cash and  partially  in shares of  Common  Stock,  then such
      payment  shall be  distributed  ratably  among the Holders  based upon the
      principal amount of Notes held by each Holder.

            d)    Late Fee. All overdue  accrued and unpaid  interest to be paid
      hereunder  shall  entail a late fee at the rate of 20% per  annum (or such
      lower maximum amount of interest  permitted to be charged under applicable
      law) ("Late Fee") which will accrue daily,  from the date such interest is
      due hereunder  through and including the date of payment.  Notwithstanding
      anything to the contrary contained herein, if on any Interest Payment Date
      the Company has elected to pay interest in Common Stock and is not able to
      pay accrued  interest in the form of Common Stock because it does not then
      satisfy the  conditions  for payment in the form of Common Stock set forth
      above,  then,  at the  option  of the  Holder,  the  Company,  in  lieu of
      delivering  either  shares of Common  Stock  pursuant to this Section 2 or
      paying the regularly  scheduled  cash  interest  payment,  shall  deliver,
      within three  Trading Days of each  applicable  Interest  Payment Date, an
      amount  in cash  equal to the  product  of the  number of shares of Common
      Stock  otherwise  deliverable to the Holder in connection with the payment
      of interest due on such Interest  Payment Date and the highest VWAP during
      the  period  commencing  on the  Interest  Payment  Date and ending on the
      Trading Day prior to the date such payment is made.

            e)    Optional  Prepayment.  The  Company  shall  have the  right to
      prepay, in cash, all or a portion of the Notes for an amount equal to such
      percentage of the principal amount to be repaid as set forth in (i), (ii),
      and (iii) below, plus all accrued and unpaid interest thereon:

                  (i)   In the event  that the Notes are  prepaid on or prior to
      one year from the date hereof, the prepayment shall be 108%.

                  (ii)  In the event that the Notes are  prepaid  after one year
      but on or before two years from the date hereof,  the prepayment  shall be
      105%.

                  (iii) In the event that the Notes are prepaid  after two years
      but on or before three years from the date hereof, the prepayment shall be
      102%.

      Section 3. Registration of Transfers and Exchanges.

            a)    Different  Denominations.  This  Note is  exchangeable  for an
      equal  aggregate  principal  amount  of  Notes  of  different   authorized
      denominations,  as  requested  by the  Holder  surrendering  the same.  No
      service charge will be made for such registration of transfer or exchange.

            b)    Investment Representations.  This Note has been issued subject
      to certain investment  representations of the original Holder set forth in
      the  Purchase  Agreement  and  may be  transferred  or  exchanged  only in
      compliance  with the Purchase  Agreement and applicable  federal and state
      securities laws and regulations.

            c)    Reliance on Note  Register.  Prior to due  presentment  to the
      Company  for  transfer  of this  Note,  the  Company  and any agent of the
      Company may treat the Person in whose name this Note is duly registered on
      the Note Register as the owner hereof for the purpose of receiving payment
      as herein provided and for all other purposes, whether or not this Note is
      overdue,  and  neither the Company nor any such agent shall be affected by
      notice to the contrary.

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      Section 4. Share Issuance Limitations; Holder's Restriction on Shares. The
Company's right to pay interest or a monthly  redemption through the issuance of
shares of Common  Stock  pursuant  to Sections  2(a),  (b),  and 6(a),  shall be
limited  to the  extent  that  after the  issuance  of such  shares,  the Holder
(together with the Holder's affiliates) would beneficially own in excess of 9.9%
of the number of shares of the Common Stock  outstanding  immediately after such
issuance.  Except as set forth in the preceding  sentence,  for purposes of this
Section 4,  beneficial  ownership shall be calculated in accordance with Section
13(d) of the Exchange  Act. For purposes of this Section 4, in  determining  the
number of outstanding  shares of Common Stock, the Holder may rely on the number
of  outstanding  shares of Common Stock as reflected in (x) the  Company's  most
recent Form 10-QSB or Form 10-KSB,  as the case may be, (y) a more recent public
announcement  by the  Company  or (z) any  other  notice by the  Company  or the
Company's  Transfer  Agent  setting  forth the number of shares of Common  Stock
outstanding.  Upon the written or oral request of the Holder,  the Company shall
within two Trading Days  confirm  orally and in writing to the Holder 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 or its
affiliates  since  the date as of which  such  number of  outstanding  shares of
Common Stock was reported. The provisions of this Section 4 may be waived by the
Holder upon, at the election of the Holder,  not less than 61 days' prior notice
to the Company,  and the  provisions  of this Section 4 shall  continue to apply
until such 61st day (or such later date, as determined by the Holder,  as may be
specified in such notice of waiver).

      Section 5. Certain Adjustments.

            a)    Stock Dividends and Stock Splits. If the Company,  at any time
      while the  Notes  are  outstanding:  (A)  shall  pay a stock  dividend  or
      otherwise make a  distribution  or  distributions  on shares of its Common
      Stock or any other  equity  or equity  equivalent  securities  payable  in
      shares of Common Stock, (B) subdivide  outstanding  shares of Common Stock
      into a larger number of shares,  (C) combine  (including by way of reverse
      stock split)  outstanding  shares of Common Stock into a smaller number of
      shares, or (D) issue by reclassification of shares of the Common Stock any
      shares of capital stock of the Company,  then the Warrant  Shares shall be
      adjusted  accordingly.  Any adjustment made pursuant to this Section shall
      become effective  immediately  after the record date for the determination
      of  stockholders  entitled to receive such  dividend or  distribution  and
      shall become effective immediately after the effective date in the case of
      a subdivision, combination or re-classification.

            b)    Calculations.  All calculations  under this Section 5 shall be
      made to the nearest  cent or the nearest  1/100th of a share,  as the case
      may be. The number of shares of Common Stock outstanding at any given time
      shall  not  include  shares of  Common  Stock  owned or held by or for the
      account of the Company,  and the  description of any such shares of Common
      Stock shall be considered one issue or sale of Common Stock.  For purposes
      of this  Section  4, the  number of shares  of Common  Stock  deemed to be
      issued and  outstanding  as of a given date shall be the sum of the number
      of shares of Common Stock (excluding  treasury shares,  if any) issued and
      outstanding.

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            c)    Fundamental  Transaction.  If, at any time  while this Note is
      outstanding,  (A) the Company effects any sale of all or substantially all
      of its assets in one or a series of related  transactions,  (B) any tender
      offer or exchange  offer  (whether  by the  Company or another  Person) is
      completed  pursuant  to which  holders of Common  Stock are  permitted  to
      tender or exchange their shares for other securities, cash or property, or
      (C) the Company  effects any  reclassification  of the Common Stock or any
      compulsory   share  exchange   pursuant  to  which  the  Common  Stock  is
      effectively  converted  into or exchanged  for other  securities,  cash or
      property  (in any such  case,  a  "Fundamental  Transaction"),  then  upon
      issuance  of the  Warrant  Shares,  the  Holder  shall  have the  right to
      receive,  for each  Underlying  Share that would have been issuable absent
      such Fundamental Transaction, the same kind and amount of securities, cash
      or property as it would have been entitled to receive upon the  occurrence
      of such Fundamental  Transaction if it had been, immediately prior to such
      Fundamental  Transaction,  the  holder of one share of Common  Stock  (the
      "Alternate  Consideration").  If  holders  of  Common  Stock are given any
      choice  as to  the  securities,  cash  or  property  to be  received  in a
      Fundamental Transaction, then the Holder shall be given the same choice as
      to the  Alternate  Consideration  it receives upon issuance of the Warrant
      Shares following such Fundamental Transaction.  To the extent necessary to
      effectuate  the  foregoing  provisions,  any  successor  to the Company or
      surviving entity in such Fundamental Transaction shall issue to the Holder
      a new note  consistent  with the  foregoing  provisions.  The terms of any
      agreement  pursuant to which a Fundamental  Transaction  is effected shall
      include terms  requiring any such successor or surviving  entity to comply
      with the  provisions of this paragraph (c) and insuring that this Note (or
      any  such  replacement  security)  will be  similarly  adjusted  upon  any
      subsequent transaction analogous to a Fundamental Transaction.

      Section 6. Monthly Redemption

            a)    Monthly  Redemption.  On each  Monthly  Redemption  Date,  the
      Company  shall  redeem  each  Holder's  Pro Rata  Portion  of the  Monthly
      Redemption  Amount  plus  accrued  but  unpaid  interest,  the  sum of all
      liquidated  damages  and any other  amounts  then owing to such  Holder in
      respect of the Note. For purposes of this  subsection 6(a) only, "Pro Rata
      Portion"  is the  ratio of (x) the  principal  amount  of this Note on the
      Original  Issue Date to (y) the sum of the  aggregate  original  principal
      amounts of the Notes issued to all Holders.  If any Holder shall no longer
      hold Notes,  then the Pro Rata Portion  shall be  recalculated  to exclude
      such  Holder's  principal  amount  from  clause (y) above and the  Monthly
      Redemption Amount shall be allocated pro-rata among the remaining Holders.
      The Monthly Redemption Amount due on each Monthly Redemption Date shall be
      paid in cash; provided,  however, as to any Monthly Redemption and upon 10
      Trading  Days'  prior  written  irrevocable  notice,  in  lieu  of a  cash
      redemption  payment,  the  Company  may  elect  to pay  100% of a  Monthly
      Redemption in shares of Common Stock based on a conversion  price equal to
      85% of the average of the 20 consecutive  VWAPs  immediately  prior to the
      applicable  Monthly  Redemption  Date (subject to adjustment for any stock
      dividend,  stock split, stock combination or other similar event affecting
      the Common Stock during such 20 Trading Day  period);  provided,  however,
      that the Company may not pay the  Monthly  Redemption  Amount in shares of
      Common  Stock  unless,  on the Monthly  Redemption  Date and during the 20
      Trading Day period  immediately prior to the Monthly  Redemption Date, the
      Equity  Conditions have been satisfied and the payment in shares of Common
      Stock would not exceed 25% of the trading  volume for any of the  previous
      10 Trading Days.

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            b)    Redemption  Procedure.  The payment of cash and/or issuance of
      Common Stock, as the case may be, pursuant to a Monthly  Redemption  shall
      be made on the Monthly Redemption Date. If any portion of the cash payment
      for a  Monthly  Redemption  shall  not  be  paid  by  the  Company  by the
      respective due date,  interest shall accrue thereon at the rate of 20% per
      annum (or the maximum rate permitted by applicable law, whichever is less)
      until the payment of the Monthly Redemption Amount, plus all amounts owing
      thereon is paid in full.  Alternatively,  if any  portion  of the  Monthly
      Redemption  Amount remains unpaid after such date, the Holders  subject to
      such  redemption may elect,  by written notice to the Company given at any
      time thereafter, to invalidate ab initio such redemption,  notwithstanding
      anything herein contained to the contrary.

      Section  7.  Negative  Covenants.  So long as any  portion of this Note is
outstanding, the Company will not and will not permit any of its Subsidiaries to
directly or indirectly, without the prior written approval of the Holder:

            a)    enter  into,  create,  incur,  assume  or  suffer to exist any
      indebtedness  of any kind  other  than (i)  indebtedness  in the  ordinary
      course of business and in an amount less than $25,000,  (ii)  indebtedness
      the net proceeds from which is used to prepay the Note in full pursuant to
      Section 2(e);

            b)    enter into, create, incur, assume or suffer to exist any liens
      of any kind, on or with respect to any of its property or assets now owned
      or  hereafter  acquired or any  interest  therein or any income or profits
      therefrom other than in connection with (i)  indebtedness the net proceeds
      from which is used to prepay the Note in full pursuant to Section 2(e); c)
      amend its certificate of incorporation,  bylaws or other charter documents
      so as to adversely affect any rights of the Holder;

            d)    repay,  repurchase or offer to repay,  repurchase or otherwise
      acquire  any of  its  Common  Stock,  Preferred  Stock,  or  other  equity
      securities; or

            e)    enter into any agreement with respect to any of the foregoing.

      The Holders acknowledge that the Company intends to enter into a customary
      inventory  and  receivables  bank  financing  and  upon  receipt  of  such
      financing, the Holders and the Company will negotiate in good faith and in
      a timely manner in respect of making such modifications to the Transaction
      Documents as are necessary to permit such financing.

      Section 8. Events of Default.

            a)    "Event of Default", wherever used herein, means any one of the
      following events (whatever the reason and whether it shall be voluntary or
      involuntary  or effected by operation of law or pursuant to any  judgment,
      decree or order of any court,  or any  order,  rule or  regulation  of any
      administrative or governmental body):

                  i. any default in the payment of (A) the  principal  of amount
            of any Note, or (B) interest (including Late Fees) on, or damages in
            respect   of,  any  Note,   in  each  case  free  of  any  claim  of
            subordination,  as and when the same shall  become  due and  payable
            (whether on the Maturity Date or by acceleration or otherwise) which
            default,  solely in the case of an interest payment or other default
            under clause (B) above, is not cured, within 2 Trading Days;

                                       8
<PAGE>

                  ii. the  Company  shall  fail to observe or perform  any other
            covenant  or  agreement  contained  in this Note or any of the other
            Transaction  Documents  which  failure is not cured,  if possible to
            cure, within the earlier to occur of (A) 5 Trading Days after notice
            of such default sent by the Holder or by any other Holder and (B) 10
            Trading  Days after the Company  shall  become or should have become
            aware of such failure;

                  iii. a default or event of  default  (subject  to any grace or
            cure period  provided for in the applicable  agreement,  document or
            instrument)  shall occur under (A) any of the Transaction  Documents
            other than the Notes,  or (B) any other material  agreement,  lease,
            document or  instrument  to which the Company or any  Subsidiary  is
            bound;

                  iv. any  representation  or warranty made herein, in any other
            Transaction  Document,  in any written statement  pursuant hereto or
            thereto, or in any other report,  financial statement or certificate
            made or  delivered  to the Holder or any other holder of Notes shall
            be untrue or incorrect  in any material  respect as of the date when
            made or deemed made;

                  v. (i) the Company or any of its Subsidiaries  shall commence,
            or  there  shall  be  commenced  against  the  Company  or any  such
            Subsidiary,  a case under any  applicable  bankruptcy  or insolvency
            laws as now or hereafter in effect or any successor thereto,  or the
            Company or any Subsidiary  commences any other  proceeding under any
            reorganization,  arrangement, adjustment of debt, relief of debtors,
            dissolution,  insolvency  or  liquidation  or  similar  law  of  any
            jurisdiction  whether  now or  hereafter  in effect  relating to the
            Company or any Subsidiary thereof or (ii) there is commenced against
            the  Company  or  any  Subsidiary   thereof  any  such   bankruptcy,
            insolvency  or other  proceeding  which  remains  undismissed  for a
            period of 60 days; or (iii) the Company or any Subsidiary thereof is
            adjudicated  by a  court  of  competent  jurisdiction  insolvent  or
            bankrupt;  or any order of relief or other order  approving any such
            case or proceeding is entered; or (iv) the Company or any Subsidiary
            thereof  suffers any appointment of any custodian or the like for it
            or any substantial part of its property which continues undischarged
            or  unstayed  for a period  of 60 days;  or (v) the  Company  or any
            Subsidiary  thereof  makes a general  assignment  for the benefit of
            creditors;  or (vi) the  Company  shall fail to pay,  or shall state
            that it is  unable  to pay,  or shall be  unable  to pay,  its debts
            generally as they become due; or (vii) the Company or any Subsidiary
            thereof  shall  call a  meeting  of  its  creditors  with a view  to
            arranging a composition,  adjustment or  restructuring of its debts;
            or (viii) the Company or any Subsidiary  thereof shall by any act or
            failure to act  expressly  indicate  its consent to,  approval of or
            acquiescence in any of the foregoing; or (ix) any corporate or other
            action is taken by the  Company or any  Subsidiary  thereof  for the
            purpose of effecting any of the foregoing;

                  vi. the Company or any Subsidiary  shall default in any of its
            obligations under any mortgage,  credit agreement or other facility,
            indenture  agreement,  factoring agreement or other instrument under
            which  there may be  issued,  or by which  there may be  secured  or
            evidenced any indebtedness for borrowed money or money due under any

                                       9
<PAGE>

            long term  leasing or  factoring  arrangement  of the  Company in an
            amount exceeding  $50,000,  whether such  indebtedness now exists or
            shall  hereafter  be created and such  default  shall result in such
            indebtedness becoming or being declared due and payable prior to the
            date on which it would otherwise become due and payable;

                  vii. the Common  Stock shall not be eligible for  quotation on
            or quoted  for  trading  on a Trading  Market and shall not again be
            eligible  for and quoted or listed for trading  thereon  within five
            Trading Days;

                  viii.  the  Company  shall be a party to any Change of Control
            Transaction  or  Fundamental  Transaction,  shall  agree  to sell or
            dispose  of all or in  excess  of 33% of its  assets  in one or more
            transactions  (whether or not such sale would constitute a Change of
            Control  Transaction)  or shall redeem or repurchase  more than a de
            minimis  number of its  outstanding  shares of Common Stock or other
            equity  securities of the Company (other than  repurchases of shares
            of Common Stock or other equity securities of departing officers and
            directors of the Company; provided such repurchases shall not exceed
            $50,000, in the aggregate, for all officers and directors during the
            term of this Note);

            b)    Remedies  Upon  Event of  Default.  If any  Event  of  Default
      occurs, the full principal amount of this Note, together with interest and
      other amounts owing in respect thereof,  to the date of acceleration shall
      become, at the Holder's election, immediately due and payable in cash. The
      aggregate  amount  payable upon an Event of Default  shall be equal to the
      Mandatory Prepayment Amount. Commencing 5 days after the occurrence of any
      Event of Default that results in the eventual  acceleration  of this Note,
      the interest  rate on this Note shall accrue at the rate of 20% per annum,
      or such lower  maximum  amount of interest  permitted to be charged  under
      applicable law. All Notes for which the full Mandatory  Prepayment  Amount
      hereunder  shall have been paid in accordance  herewith  shall promptly be
      surrendered to or as directed by the Company.  The Holder need not provide
      and the Company hereby waives any  presentment,  demand,  protest or other
      notice of any kind, and the Holder may immediately and without  expiration
      of any  grace  period  enforce  any and  all of its  rights  and  remedies
      hereunder and all other  remedies  available to it under  applicable  law.
      Such declaration may be rescinded and annulled by Holder at any time prior
      to payment hereunder and the Holder shall have all rights as a Note holder
      until such time, if any, as the full payment under this Section shall have
      been  received by it. No such  rescission  or  annulment  shall affect any
      subsequent Event of Default or impair any right consequent thereon.

      Section 9. Miscellaneous.

            a)    Notices.  Any and  all  notices  or  other  communications  or
      deliveries to be provided by the Holders hereunder shall be in writing and
      delivered  personally,  by  facsimile,  sent  by a  nationally  recognized
      overnight  courier service,  addressed to the Company,  at the address set
      forth above,  facsimile number (708) 273-6901,  ATTN: OSCAR TURNER,  CHIEF
      FINANCIAL  OFFICER,  or such  other  address  or  facsimile  number as the
      Company may specify for such  purposes by notice to the Holders  delivered
      in  accordance   with  this   Section.   Any  and  all  notices  or  other
      communications or deliveries to be provided by the Company hereunder shall
      be in writing and delivered personally, by facsimile, sent by a nationally
      recognized  overnight  courier  service  addressed  to each  Holder at the
      facsimile  telephone  number or address of such  Holder  appearing  on the
      books of the Company,  or if no such facsimile telephone number or address
      appears,  at the principal place of business of the Holder.  Any notice or

                                       10
<PAGE>

      other  communication  or  deliveries  hereunder  shall be deemed given and
      effective on the earliest of (i) the date of transmission,  if such notice
      or  communication  is delivered via  facsimile at the facsimile  telephone
      number  specified in this Section prior to 5:30 p.m. (New York City time),
      (ii)  the  date  after  the  date  of  transmission,  if  such  notice  or
      communication is delivered via facsimile at the facsimile telephone number
      specified in this Section later than 5:30 p.m. (New York City time) on any
      date and earlier than 11:59 p.m. (New York City time) on such date,  (iii)
      the  second  Business  Day  following  the  date  of  mailing,  if sent by
      nationally  recognized  overnight  courier  service,  or (iv) upon  actual
      receipt by the party to whom such notice is required to be given.

            b)    Absolute  Obligation.  Except as expressly provided herein, no
      provision  of this  Note  shall  alter or  impair  the  obligation  of the
      Company,  which is absolute and  unconditional,  to pay the  principal of,
      interest and liquidated damages (if any) on, this Note at the time, place,
      and rate, and in the coin or currency,  herein prescribed.  This Note is a
      direct debt obligation of the Company. This Note ranks pari passu with all
      other Notes now or hereafter issued under the terms set forth herein

            c)    Lost or Mutilated Note. If this Note shall be mutilated, lost,
      stolen or destroyed,  the Company  shall execute and deliver,  in exchange
      and substitution for and upon cancellation of a mutilated Note, or in lieu
      of or in substitution for a lost, stolen or destroyed Note, a new Note for
      the principal amount of this Note so mutilated,  lost, stolen or destroyed
      but only upon receipt of evidence of such loss,  theft or  destruction  of
      such Note, and of the ownership hereof, and indemnity,  if requested,  all
      reasonably satisfactory to the Company.

            d)    Security  Interest.  This Note is a direct debt  obligation of
      the  Company  and,  pursuant  to the  Security  Agreement  is secured by a
      perfected  security  interest  in all of the assets of the Company for the
      benefit of the Holders.  The Holder  agrees that it will  subordinate  its
      perfected  security  interest to any security  interest in connection with
      inventory and receivables bank financing that the Company obtains.

            e)    Governing  Law. All  questions  concerning  the  construction,
      validity, enforcement and interpretation of this Note shall be governed by
      and  construed  and enforced in  accordance  with the internal laws of the
      State of New York,  without  regard to the  principles of conflicts of law
      thereof.  Each party  agrees  that all legal  proceedings  concerning  the
      interpretations,  enforcement and defense of the transactions contemplated
      by any of the  Transaction  Documents  (whether  brought  against  a party
      hereto or its respective affiliates,  directors,  officers,  shareholders,
      employees or agents)  shall be  commenced in the state and federal  courts
      sitting  in the City of New  York,  Borough  of  Manhattan  (the "New York
      Courts").  Each party hereto hereby  irrevocably  submits to the exclusive
      jurisdiction  of the New York Courts for the  adjudication  of any dispute
      hereunder or in connection  herewith or with any transaction  contemplated
      hereby or discussed  herein  (including with respect to the enforcement of
      any of the Transaction  Documents),  and hereby  irrevocably  waives,  and
      agrees not to assert in any suit, action or proceeding,  any claim that it
      is not personally  subject to the  jurisdiction of any such court, or such
      New York Courts are improper or  inconvenient  venue for such  proceeding.
      Each party  hereby  irrevocably  waives  personal  service of process  and
      consents to process being served in any such suit, action or proceeding by
      mailing a copy  thereof via  registered  or  certified  mail or  overnight
      delivery  (with  evidence  of  delivery)  to such party at the  address in
      effect for  notices to it under  this Note and  agrees  that such  service
      shall  constitute  good and  sufficient  service  of  process  and  notice
      thereof.  Nothing contained herein shall be deemed to limit in any way any
      right to serve  process in any manner  permitted by law. Each party hereto
      hereby  irrevocably  waives, to the fullest extent permitted by applicable
      law,  any and all right to trial by jury in any legal  proceeding  arising

                                       11
<PAGE>

      out of or relating to this Note or the transactions  contemplated  hereby.
      If either  party  shall  commence an action or  proceeding  to enforce any
      provisions  of this  Note,  then the  prevailing  party in such  action or
      proceeding  shall be reimbursed by the other party for its attorneys  fees
      and other costs and expenses incurred with the investigation,  preparation
      and prosecution of such action or proceeding.

            f)    Waiver. Any waiver by the Company or the Holder of a breach of
      any  provision  of this Note shall not operate as or be  construed to be a
      waiver of any other breach of such provision or of any breach of any other
      provision of this Note. The failure of the Company or the Holder to insist
      upon strict  adherence  to any term of this Note on one or more  occasions
      shall  not be  considered  a waiver  or  deprive  that  party of the right
      thereafter to insist upon strict  adherence to that term or any other term
      of this Note. Any waiver must be in writing.

            g)    Severability.  If any  provision  of  this  Note  is  invalid,
      illegal or unenforceable, the balance of this Note shall remain in effect,
      and if any provision is  inapplicable  to any person or  circumstance,  it
      shall   nevertheless   remain   applicable   to  all  other   persons  and
      circumstances.  If it shall be found  that any  interest  or other  amount
      deemed interest due hereunder  violates  applicable laws governing  usury,
      the  applicable  rate of interest due  hereunder  shall  automatically  be
      lowered to equal the  maximum  permitted  rate of  interest.  The  Company
      covenants  (to the extent that it may lawfully do so) that it shall not at
      any time insist upon, plead, or in any manner whatsoever claim or take the
      benefit or  advantage  of, any stay,  extension  or usury law or other law
      which would prohibit or forgive the Company from paying all or any portion
      of the  principal  of or  interest  on this Note as  contemplated  herein,
      wherever  enacted,  now or at any time  hereafter  in force,  or which may
      affect the covenants or the performance of this indenture, and the Company
      (to the extent it may lawfully do so) hereby expressly waives all benefits
      or advantage of any such law, and covenants that it will not, by resort to
      any such law,  hinder,  delay or impeded the execution of any power herein
      granted to the Holder,  but will suffer and permit the  execution of every
      such as though no such law has been enacted.

            h)    Next  Business Day.  Whenever any payment or other  obligation
      hereunder  shall be due on a day other than a Business  Day,  such payment
      shall be made on the next succeeding Business Day.

            i)    Headings.  The headings  contained  herein are for convenience
      only,  do not  constitute  a part of this  Note and shall not be deemed to
      limit or affect any of the provisions hereof.

                              *********************

                                       12
<PAGE>

      IN WITNESS  WHEREOF,  the Company has caused this Note to be duly executed
by a duly authorized officer as of the date first above indicated.

                                              KNOCKOUT HOLDINGS, INC.

                                              /s/ Oscar Turner
                                              ----------------------------------
                                              Oscar Turner,
                                              Chief Financial Officer

                                       13EXHIBIT 4.3

                                                                       EXHIBIT B

                          REGISTRATION RIGHTS AGREEMENT

      This Registration  Rights Agreement (this "Agreement") is made and entered
into as of May 2, 2005, among Knockout  Holdings,  Inc., a Delaware  corporation
(the "Company"),  and the purchasers  signatory hereto (each such purchaser is a
"Purchaser" and all such purchasers are, collectively, the "Purchasers").

      This  Agreement is made  pursuant to the  Securities  Purchase  Agreement,
dated as of the date hereof among the Company and the Purchasers  (the "Purchase
Agreement").

      The Company and the Purchasers hereby agree as follows:

      1.    Definitions

      CAPITALIZED  TERMS USED AND NOT OTHERWISE  DEFINED HEREIN THAT ARE DEFINED
IN THE  PURCHASE  AGREEMENT  SHALL  HAVE THE  MEANINGS  GIVEN  SUCH TERMS IN THE
PURCHASE  AGREEMENT.  As used in this Agreement,  the following terms shall have
the following meanings:

            "Advice" shall have the meaning set forth in Section 6(d).

            "Effectiveness Date" means, with respect to the initial Registration
      Statement required to be filed hereunder,  the 90th calendar day (or 120th
      calendar  day, if the statement is reviewed by the  Commission)  following
      the  date  hereof  and,  with  respect  to  any  additional   Registration
      Statements  which may be  required  pursuant  to  Section  3(c),  the 90th
      calendar day (or 120th  calendar  day, if the statement is reviewed by the
      Commission)  following  the date on which  the  Company  first  knows,  or
      reasonably should have known, that such additional  Registration Statement
      is  required  hereunder;  provided,  however,  in the event the Company is
      notified by the Commission that one of the above  Registration  Statements
      will not be  reviewed  or is no  longer  subject  to  further  review  and
      comments,  the Effectiveness Date as to such Registration  Statement shall
      be the fifth  Trading  Day  following  the date on which the Company is so
      notified if such date precedes the dates required above.

            "Effectiveness  Period"  shall have the meaning set forth in Section
      2(a).

            "Event" shall have the meaning set forth in Section 2(b).

            "Event Date" shall have the meaning set forth in Section 2(b).

            "Filing  Date"  means,  with  respect  to the  initial  Registration
      Statement  required  hereunder,  the 15th  calendar day following the date
      hereof and, with respect to any additional  Registration  Statements which
      may be required  pursuant to Section 3(c), the 15th day following the date
      on which the Company  first knows,  or  reasonably  should have known that
      such additional Registration Statement is required hereunder.

                                       1
<PAGE>

            "Holder" or "Holders"  means the holder or holders,  as the case may
      be, from time to time of Registrable Securities.

            "Indemnified  Party"  shall  have the  meaning  set forth in Section
      5(c).

            "Indemnifying  Party"  shall have the  meaning  set forth in Section
      5(c).

            "Losses" shall have the meaning set forth in Section 5(a).

            "Proceeding"  means  an  action,   claim,  suit,   investigation  or
      proceeding  (including,  without  limitation,  an investigation or partial
      proceeding, such as a deposition), whether commenced or threatened.

            "Prospectus"  means  the  prospectus   included  in  a  Registration
      Statement (including,  without limitation,  a prospectus that includes any
      information  previously  omitted  from a  prospectus  filed  as part of an
      effective  registration  statement in reliance upon Rule 430A  promulgated
      under the Securities  Act), as amended or  supplemented  by any prospectus
      supplement,  with  respect to the terms of the  offering of any portion of
      the Registrable  Securities covered by a Registration  Statement,  and all
      other   amendments   and   supplements   to  the   Prospectus,   including
      post-effective  amendments,  and all material incorporated by reference or
      deemed to be incorporated by reference in such Prospectus.

            "Registrable Securities" means (i) all of the shares of Common Stock
      issuable  as  interest  on the Notes  assuming  all  permissible  interest
      payments  are made in shares of Common  Stock and the Notes are held until
      maturity,  (ii) all shares issuable as amortization  payments on the Notes
      assuming  all  permissible  amortization  payments  are made in  shares of
      Common  Stock and the Notes are held  until  maturity,  (iii) all  Warrant
      Shares,  (iv) any  securities  issued or  issuable  upon any stock  split,
      dividend  or other  distribution  recapitalization  or similar  event with
      respect  to the  foregoing  and  (v) any  additional  shares  issuable  in
      connection with any anti-dilution provisions in the Notes or the Warrants.

            "Registration  Statement" means the registration statements required
      to  be  filed  hereunder  and  any  additional   registration   statements
      contemplated  by Section 3(c),  including  (in each case) the  Prospectus,
      amendments and supplements to such  registration  statement or Prospectus,
      including pre- and post-effective  amendments,  all exhibits thereto,  and
      all material  incorporated  by reference or deemed to be  incorporated  by
      reference in such registration statement.

            "Rule 415" means Rule 415 promulgated by the Commission  pursuant to
      the Securities  Act, as such Rule may be amended from time to time, or any
      similar rule or  regulation  hereafter  adopted by the  Commission  having
      substantially the same purpose and effect as such Rule.

            "Rule 424" means Rule 424 promulgated by the Commission  pursuant to
      the Securities  Act, as such Rule may be amended from time to time, or any
      similar rule or  regulation  hereafter  adopted by the  Commission  having
      substantially the same purpose and effect as such Rule.

                                       2
<PAGE>

      2.    Registration

            (a)   The  Company  shall  prepare  and file with the  Commission  a
Registration Statement covering the resale of 125% of the Registrable Securities
for an  offering to be made on a  continuous  basis  pursuant  to Rule 415.  The
Registration  Statement shall be on Form SB-2 (except if the Company is not then
eligible to register  for resale the  Registrable  Securities  on Form SB-2,  in
which case such registration shall be on another  appropriate form in accordance
herewith)  and  shall  contain  (unless  otherwise   directed  by  the  Holders)
substantially the "Plan of Distribution"  attached hereto as Annex A. Subject to
the terms of this Agreement, the Company shall use its best efforts to cause the
Registration  Statement to be declared  effective  under the  Securities  Act as
promptly as  possible  after the filing  thereof,  but in any event prior to the
applicable  Effectiveness  Date,  and  shall use its best  efforts  to keep such
Registration Statement continuously effective under the Securities Act until all
Registrable  Securities covered by such Registration Statement have been sold or
may be sold without volume restrictions pursuant to Rule 144(k) as determined by
the counsel to the Company  pursuant to a written opinion letter to such effect,
addressed  and  acceptable  to the  Company's  transfer  agent and the  affected
Holders (the "Effectiveness  Period").  The Company shall immediately notify the
Holders via facsimile of the effectiveness of the Registration  Statement on the
same day that the Company receives  notification of the  effectiveness  from the
Commission.  Failure  to so  notify  the  Holder  within 1  Trading  Day of such
notification shall be deemed an Event under Section 2(b).

            (b)   If: (i) a  Registration  Statement is not filed on or prior to
its Filing Date (if the Company files a Registration Statement without affording
the  Holders  the  opportunity  to review and comment on the same as required by
Section  3(a),  the Company  shall not be deemed to have  satisfied  this clause
(i)),  or (ii) the  Company  fails to file with the  Commission  a  request  for
acceleration in accordance  with Rule 461 promulgated  under the Securities Act,
within five Trading Days of the date that the Company is notified  (orally or in
writing,  whichever is earlier) by the Commission that a Registration  Statement
will not be "reviewed," or not subject to further review;  or (iii) prior to its
Effectiveness  Date,  the Company  fails to file a  pre-effective  amendment and
otherwise  respond in writing to comments  made by the  Commission in respect of
such  Registration  Statement  within 30  calendar  days  after the  receipt  of
comments by or notice from the  Commission  that such  amendment  is required in
order  for a  Registration  Statement  to  be  declared  effective;  or  (iv)  a
Registration  Statement  filed or required to be filed hereunder is not declared
effective  by the  Commission  by its  Effectiveness  Date;  or  (v)  after  the
Effectiveness  Date, a  Registration  Statement  ceases for any reason to remain
continuously effective as to all Registrable Securities for which it is required
to be  effective,  or the Holders are not  permitted  to utilize the  Prospectus
therein to resell such Registrable  Securities for 10 consecutive  calendar days
but no more than an  aggregate of 15 calendar  days during any  12-month  period
(which need not be  consecutive  Trading Days) (any such failure or breach being
referred to as an "Event",  and for  purposes of clause (ii) or (iv) the date on
which such Event  occurs,  or for purposes of clause (ii) the date on which such
five  Trading Day period is  exceeded,  or for purposes of clause (iii) the date
which such 10 calendar day period is exceeded, or for purposes of clause (v) the
date on which such 10 or 15 calendar  day  period,  as  applicable,  is exceeded
being  referred to as "Event  Date"),  then in addition to any other  rights the
Holders may have hereunder or under  applicable law, on each such Event Date and
on each monthly  anniversary  of each such Event Date (if the  applicable  Event
shall not have been cured by such date) until the applicable Event is cured, the
Company  shall  pay to each  Holder an amount  in cash,  as  partial  liquidated
damages and not as a penalty,  equal to 1.5% of the outstanding principal of the
Notes for any  Registrable  Securities then held by such Holder for the first 30
days (or part  thereof)  after  the 90th  day,  and an  additional  1.5% for any
subsequent 30-day period (or part thereof),  thereafter. If the Company fails to
pay any partial liquidated damages pursuant to this Section in full within seven
days after the date payable,  the Company will pay interest thereon at a rate of
20% per annum (or such lesser  maximum  amount that is  permitted  to be paid by
applicable  law) to the  Holder,  accruing  daily  from  the date  such  partial
liquidated  damages are due until such amounts,  plus all such interest thereon,
are paid in full. The partial  liquidated  damages  pursuant to the terms hereof
shall  apply on a daily  pro-rata  basis for any portion of a month prior to the
cure of an Event.

                                       3
<PAGE>

      3.    Registration Procedures

      In connection with the Company's registration  obligations hereunder,  the
Company shall:

            (a)   Not less than five  Trading  Days  prior to the filing of each
Registration  Statement or any related Prospectus or any amendment or supplement
thereto  (including  any  document  that would be  incorporated  or deemed to be
incorporated  therein by  reference),  the  Company  shall,  (i) furnish to each
Holder copies of all such documents proposed to be filed, which documents (other
than those  incorporated  or deemed to be  incorporated  by  reference)  will be
subject  to the  review  of such  Holders,  and  (ii)  cause  its  officers  and
directors,  counsel and independent  certified public  accountants to respond to
such inquiries as shall be necessary,  in the  reasonable  opinion of respective
counsel  to  conduct  a  reasonable  investigation  within  the  meaning  of the
Securities  Act. The Company  shall not file the  Registration  Statement or any
such Prospectus or any amendments or supplements thereto to which the Holders of
a majority of the Registrable  Securities shall reasonably object in good faith,
provided  that,  the Company is notified of such  objection  in writing no later
than 5 Trading  Days after the  Holders  have been so  furnished  copies of such
documents.   Each   Holder   agrees  to  furnish  to  the  Company  a  completed
Questionnaire  in the form  attached  to this  Agreement  as Annex B (a "Selling
Holder  Questionnaire")  not less than two Trading Days prior to the Filing Date
or by the end of the fourth  Trading Day following the date on which such Holder
receives draft materials in accordance with this Section.

            (b)   (i)  Prepare  and file with the  Commission  such  amendments,
including  post-effective  amendments,  to  a  Registration  Statement  and  the
Prospectus  used  in  connection  therewith  as  may  be  necessary  to  keep  a
Registration  Statement  continuously effective as to the applicable Registrable
Securities for the Effectiveness Period and prepare and file with the Commission
such  additional  Registration  Statements in order to register for resale under
the Securities  Act all of the  Registrable  Securities;  (ii) cause the related
Prospectus to be amended or supplemented by any required  Prospectus  supplement
(subject to the terms of this  Agreement),  and as so supplemented or amended to
be filed pursuant to Rule 424; (iii) respond as promptly as reasonably  possible
to any comments  received  from the  Commission  with respect to a  Registration
Statement  or any  amendment  thereto  and as promptly  as  reasonably  possible
provide the Holders true and complete copies of all  correspondence  from and to
the  Commission  relating to a  Registration  Statement;  and (iv) comply in all
material respects with the provisions of the Securities Act and the Exchange Act
with  respect to the  disposition  of all  Registrable  Securities  covered by a
Registration  Statement during the applicable  period in accordance  (subject to
the terms of this  Agreement)  with the intended  methods of  disposition by the
Holders  thereof set forth in such  Registration  Statement  as so amended or in
such Prospectus as so supplemented.

            (c)   If during the Effectiveness  Period, the number of Registrable
Securities  at any time exceeds 90% of the number of shares of Common Stock then
registered in a Registration  Statement,  then the Company shall file as soon as
reasonably  practicable but in any case prior to the applicable  Filing Date, an
additional Registration Statement covering the resale by the Holders of not less
than 125% of the number of such Registrable Securities.

                                       4
<PAGE>

            (d)   Notify the Holders of Registrable Securities to be sold (which
notice shall, pursuant to clauses (ii) through (vi) hereof, be accompanied by an
instruction  to suspend the use of the  Prospectus  until the requisite  changes
have been made) as promptly as reasonably  possible  (and, in the case of (i)(A)
below,  not less than five Trading Days prior to such filing) and (if  requested
by any such Person) confirm such notice in writing no later than one Trading Day
following  the day (i)(A) when a  Prospectus  or any  Prospectus  supplement  or
post-effective  amendment to a  Registration  Statement is proposed to be filed;
(B) when the Commission notifies the Company whether there will be a "review" of
such Registration  Statement and whenever the Commission  comments in writing on
such Registration  Statement (the Company shall provide true and complete copies
thereof and all written responses thereto to each of the Holders);  and (C) with
respect to a Registration  Statement or any post-effective  amendment,  when the
same has become  effective;  (ii) of any request by the  Commission or any other
Federal or state  governmental  authority  for  amendments or  supplements  to a
Registration Statement or Prospectus or for additional information; (iii) of the
issuance by the Commission or any other federal or state governmental  authority
of any stop order  suspending  the  effectiveness  of a  Registration  Statement
covering  any or all of the  Registrable  Securities  or the  initiation  of any
Proceedings  for  that  purpose;  (iv)  of the  receipt  by the  Company  of any
notification  with respect to the suspension of the  qualification  or exemption
from  qualification  of  any of  the  Registrable  Securities  for  sale  in any
jurisdiction,  or the  initiation  or  threatening  of any  Proceeding  for such
purpose;  (v) of the  occurrence  of any event or passage of time that makes the
financial  statements  included  in  a  Registration  Statement  ineligible  for
inclusion  therein  or  any  statement  made  in  a  Registration  Statement  or
Prospectus or any document  incorporated or deemed to be incorporated therein by
reference  untrue in any material  respect or that  requires any  revisions to a
Registration Statement,  Prospectus or other documents so that, in the case of a
Registration  Statement  or the  Prospectus,  as the  case  may be,  it will not
contain any 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,
in light of the  circumstances  under which they were made, not misleading;  and
(vi) the  occurrence  or existence  of any pending  corporate  development  with
respect to the Company that the Company  believes  may be material and that,  in
the  determination  of the  Company,  makes it not in the best  interest  of the
Company  to  allow  continued  availability  of the  Registration  Statement  or
Prospectus;  provided  that  any  and  all  of  such  information  shall  remain
confidential  to each Holder until such  information  otherwise  becomes public,
unless  disclosure  by  a  Holder  is  required  by  law;   provided,   further,
notwithstanding  each Holder's agreement to keep such information  confidential,
the Holders  make no  acknowledgement  that any such  information  is  material,
non-public information.

            (e)   Use its best  efforts to avoid the issuance of, or, if issued,
obtain  the  withdrawal  of (i) any  order  suspending  the  effectiveness  of a
Registration  Statement,  or  (ii)  any  suspension  of  the  qualification  (or
exemption from  qualification) of any of the Registrable  Securities for sale in
any jurisdiction, at the earliest practicable moment.

            (f)   Furnish to each Holder, without charge, at least one conformed
copy of each such Registration  Statement and each amendment thereto,  including
financial statements and schedules,  all documents  incorporated or deemed to be
incorporated  therein by reference to the extent  requested by such Person,  and
all exhibits to the extent requested by such Person  (including those previously
furnished  or  incorporated  by  reference)  promptly  after the  filing of such
documents with the Commission.

            (g)   Promptly  deliver  to each  Holder,  without  charge,  as many
copies of the Prospectus or Prospectuses (including each form of prospectus) and
each amendment or supplement  thereto as such Persons may reasonably  request in
connection with resales by the Holder of Registrable Securities.  Subject to the
terms  of  this  Agreement,  the  Company  hereby  consents  to the  use of such
Prospectus  and each  amendment  or  supplement  thereto by each of the  selling
Holders in connection with the offering and sale of the  Registrable  Securities
covered by such Prospectus and any amendment or supplement thereto, except after
the giving on any notice pursuant to Section 3(d).

                                       5
<PAGE>

            (h)   Prior to any resale of Registrable Securities by a Holder, use
its commercially reasonable efforts to register or qualify or cooperate with the
selling  Holders  in  connection  with the  registration  or  qualification  (or
exemption from the Registration or qualification) of such Registrable Securities
for the  resale  by the  Holder  under the  securities  or Blue Sky laws of such
jurisdictions  within the United  States as any Holder  reasonably  requests  in
writing,  to keep each  registration or qualification  (or exemption  therefrom)
effective  during the  Effectiveness  Period and to do any and all other acts or
things reasonably  necessary to enable the disposition in such  jurisdictions of
the Registrable  Securities  covered by each Registration  Statement;  provided,
that the Company  shall not be required to qualify  generally  to do business in
any jurisdiction  where it is not then so qualified,  subject the Company to any
material tax in any such jurisdiction  where it is not then so subject or file a
general consent to service of process in any such jurisdiction.

            (i)   If  requested by the  Holders,  cooperate  with the Holders to
facilitate  the timely  preparation  and delivery of  certificates  representing
Registrable   Securities  to  be  delivered  to  a  transferee   pursuant  to  a
Registration  Statement,  which  certificates  shall  be  free,  to  the  extent
permitted by the Purchase Agreement,  of all restrictive  legends, and to enable
such Registrable  Securities to be in such  denominations and registered in such
names as any such Holders may request.

            (j)   Upon the occurrence of any event  contemplated by this Section
3, as  promptly  as  reasonably  possible  under the  circumstances  taking into
account the Company's good faith  assessment of any adverse  consequences to the
Company and its stockholders of the premature  disclosure of such event, prepare
a  supplement  or  amendment,   including  a  post-effective   amendment,  to  a
Registration Statement or a supplement to the related Prospectus or any document
incorporated  or deemed to be  incorporated  therein by reference,  and file any
other required document so that, as thereafter delivered, neither a Registration
Statement  nor such  Prospectus  will contain an untrue  statement of a material
fact or omit to state a material fact required to be stated therein or necessary
to make the statements  therein,  in light of the circumstances under which they
were made,  not  misleading.  If the Company  notifies the Holders in accordance
with  clauses  (ii)  through (v) of Section 3(d) above to suspend the use of any
Prospectus  until the requisite  changes to such Prospectus have been made, then
the Holders shall suspend use of such Prospectus.  The Company will use its best
efforts to ensure that the use of the  Prospectus  may be resumed as promptly as
is  practicable.  The Company shall be entitled to exercise its right under this
Section  3(j) to  suspend  the  availability  of a  Registration  Statement  and
Prospectus,  subject to the payment of partial  liquidated  damages  pursuant to
Section 2(b),  for a period not to exceed 60 days (which need not be consecutive
days) in any 12 month period.

            (k)   Comply  with  all  applicable  rules  and  regulations  of the
Commission.

            (l)   The Company may require each selling  Holder to furnish to the
Company a  certified  statement  as to the  number  of  shares  of Common  Stock
beneficially owned by such Holder and, if required by the Commission, the person
thereof  that has voting and  dispositive  control  over the Shares.  During any
periods  that the  Company  is unable  to meet its  obligations  hereunder  with
respect to the  registration  of the Registrable  Securities  solely because any
Holder  fails to furnish  such  information  within  three  Trading  Days of the
Company's  request,  any liquidated damages that are accruing at such time as to
such Holder only shall be tolled and any Event that may  otherwise  occur solely
because of such delay  shall be  suspended  as to such Holder  only,  until such
information is delivered to the Company.

                                       6
<PAGE>

      4.    Registration  Expenses.  All  fees  and  expenses  incident  to  the
performance  of or compliance  with this Agreement by the Company shall be borne
by the Company  whether or not any  Registrable  Securities are sold pursuant to
the Registration  Statement.  The fees and expenses referred to in the foregoing
sentence shall include, without limitation, (i) all registration and filing fees
(including,  without  limitation,  fees and expenses (A) with respect to filings
required  to be made with the Trading  Market on which the Common  Stock is then
listed for trading,  and (B) in compliance with applicable  state  securities or
Blue Sky laws reasonably agreed to by the Company in writing (including, without
limitation, fees and disbursements of counsel for the Company in connection with
Blue  Sky  qualifications  or  exemptions  of  the  Registrable  Securities  and
determination  of the eligibility of the  Registrable  Securities for investment
under the laws of such jurisdictions as requested by the Holders), (ii) printing
expenses (including,  without limitation,  expenses of printing certificates for
Registrable   Securities  and  of  printing  prospectuses  if  the  printing  of
prospectuses  is  reasonably  requested  by the  holders  of a  majority  of the
Registrable Securities included in a Registration  Statement),  (iii) messenger,
telephone and delivery expenses,  (iv) fees and disbursements of counsel for the
Company, (v) Securities Act liability insurance,  if the Company so desires such
insurance,  and (vi) fees and  expenses  of all other  Persons  retained  by the
Company in connection with the consummation of the transactions  contemplated by
this  Agreement.  In addition,  the Company shall be responsible  for all of its
internal   expenses   incurred  in  connection  with  the  consummation  of  the
transactions contemplated by this Agreement (including,  without limitation, all
salaries  and  expenses  of its  officers  and  employees  performing  legal  or
accounting  duties),  the expense of any annual  audit and the fees and expenses
incurred in  connection  with the listing of the  Registrable  Securities on any
securities  exchange  as  required  hereunder.  In no event shall the Company be
responsible  for any  broker or  similar  commissions  or,  except to the extent
provided for in the Transaction Documents,  any legal fees or other costs of the
Holders.

      5.    Indemnification

            (a)   Indemnification   by   the   Company.   The   Company   shall,
notwithstanding  any termination of this Agreement,  indemnify and hold harmless
each Holder,  the officers,  directors,  agents,  brokers (including brokers who
offer and sell  Registrable  Securities  as principal as a result of a pledge or
any failure to perform under a margin call of Common Stock), investment advisors
and employees of each of them,  each Person who controls any such Holder (within
the meaning of Section 15 of the  Securities  Act or Section 20 of the  Exchange
Act) and the officers,  directors, agents and employees of each such controlling
Person,  to the fullest extent permitted by applicable law, from and against any
and  all  losses,  claims,  damages,  liabilities,   costs  (including,  without
limitation,  reasonable attorneys' fees) and expenses (collectively,  "Losses"),
as  incurred,  arising  out of or  relating  to any  untrue  or  alleged  untrue
statement  of a  material  fact  contained  in  a  Registration  Statement,  any
Prospectus or any form of  prospectus or in any amendment or supplement  thereto
or in any preliminary prospectus,  or arising out of or relating to any omission
or  alleged  omission  of a  material  fact  required  to be stated  therein  or
necessary to make the statements  therein (in the case of any Prospectus or form
of prospectus or supplement  thereto,  in light of the circumstances under which
they were made) not  misleading,  except to the extent,  but only to the extent,
that (i) such untrue  statements or omissions are based solely upon  information
regarding  such  Holder  furnished  in  writing to the  Company  by such  Holder
expressly  for use therein,  or to the extent that such  information  relates to
such Holder or such Holder's  proposed  method of  distribution  of  Registrable
Securities  and was  reviewed and  expressly  approved in writing by such Holder
expressly for use in a Registration  Statement,  such Prospectus or such form of

                                       7
<PAGE>

Prospectus or in any amendment or supplement  thereto (it being  understood that
the Holder has approved  Annex A hereto for this purpose) or (ii) in the case of
an occurrence of an event of the type  specified in Section  3(d)(ii)-(vi),  the
use by such Holder of an outdated or defective  Prospectus after the Company has
notified such Holder in writing that the Prospectus is outdated or defective and
prior to the receipt by such Holder of the Advice  contemplated in Section 6(d).
The Company  shall  notify the Holders  promptly of the  institution,  threat or
assertion of any Proceeding  arising from or in connection with the transactions
contemplated by this Agreement of which the Company is aware.

            (b)   Indemnification by Holders.  Each Holder shall,  severally and
not jointly,  indemnify and hold harmless the Company, its directors,  officers,
agents and employees,  each Person who controls the Company  (within the meaning
of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the
directors,  officers,  agents or employees of such controlling  Persons,  to the
fullest  extent  permitted by applicable  law,  from and against all Losses,  as
incurred,  to the extent  arising out of or based solely upon: (x) such Holder's
failure to comply with the prospectus  delivery  requirements  of the Securities
Act or (y) any untrue or alleged  untrue  statement of a material fact contained
in any Registration Statement, any Prospectus,  or any form of prospectus, or in
any amendment or supplement thereto or in any preliminary prospectus, or arising
out of or  relating  to any  omission  or alleged  omission  of a material  fact
required to be stated  therein or necessary to make the  statements  therein not
misleading (i) to the extent, but only to the extent, that such untrue statement
or omission is  contained  in any  information  so  furnished in writing by such
Holder to the Company specifically for inclusion in such Registration  Statement
or such  Prospectus  or (ii) to the extent  that (1) such untrue  statements  or
omissions are based solely upon  information  regarding such Holder furnished in
writing to the  Company by such  Holder  expressly  for use  therein,  or to the
extent that such  information  relates to such Holder or such Holder's  proposed
method of distribution of Registrable  Securities and was reviewed and expressly
approved  in  writing  by such  Holder  expressly  for  use in the  Registration
Statement (it being  understood  that the Holder has approved Annex A hereto for
this purpose), such Prospectus or such form of Prospectus or in any amendment or
supplement  thereto or (2) in the case of an  occurrence of an event of the type
specified  in Section  3(d)(ii)-(vi),  the use by such  Holder of an outdated or
defective  Prospectus after the Company has notified such Holder in writing that
the  Prospectus is outdated or defective and prior to the receipt by such Holder
of the Advice  contemplated  in Section 6(d). In no event shall the liability of
any selling Holder  hereunder be greater in amount than the dollar amount of the
net proceeds received by such Holder upon the sale of the Registrable Securities
giving rise to such indemnification obligation.

            (c)   Conduct  of  Indemnification  Proceedings.  If any  Proceeding
shall be brought or asserted against any Person entitled to indemnity  hereunder
(an  "Indemnified  Party"),  such  Indemnified  Party shall promptly  notify the
Person from whom indemnity is sought (the "Indemnifying  Party") in writing, and
the  Indemnifying  Party  shall  have the right to assume the  defense  thereof,
including the employment of counsel  reasonably  satisfactory to the Indemnified
Party and the  payment of all fees and  expenses  incurred  in  connection  with
defense  thereof;  provided,  that the failure of any Indemnified  Party to give
such notice  shall not  relieve the  Indemnifying  Party of its  obligations  or
liabilities pursuant to this Agreement,  except (and only) to the extent that it
shall  be  finally  determined  by a  court  of  competent  jurisdiction  (which
determination  is not  subject to appeal or further  review)  that such  failure
shall have prejudiced the Indemnifying Party.

                                       8
<PAGE>

            An Indemnified Party shall have the right to employ separate counsel
in any such Proceeding and to participate in the defense  thereof,  but the fees
and expenses of such counsel shall be at the expense of such  Indemnified  Party
or Parties unless:  (1) the Indemnifying Party has agreed in writing to pay such
fees and  expenses;  (2) the  Indemnifying  Party shall have failed  promptly to
assume  the  defense  of  such  Proceeding  and  to  employ  counsel  reasonably
satisfactory to such Indemnified Party in any such Proceeding;  or (3) the named
parties to any such Proceeding  (including any impleaded  parties)  include both
such Indemnified  Party and the Indemnifying  Party, and such Indemnified  Party
shall reasonably believe that a material conflict of interest is likely to exist
if  the  same  counsel  were  to  represent  such  Indemnified   Party  and  the
Indemnifying  Party (in which  case,  if such  Indemnified  Party  notifies  the
Indemnifying  Party in writing that it elects to employ separate  counsel at the
expense of the Indemnifying  Party,  the  Indemnifying  Party shall not have the
right to assume the defense  thereof and the reasonable fees and expenses of one
separate  counsel  shall  be at the  expense  of the  Indemnifying  Party).  The
Indemnifying Party shall not be liable for any settlement of any such Proceeding
effected  without its written  consent,  which consent shall not be unreasonably
withheld.  No Indemnifying Party shall, without the prior written consent of the
Indemnified Party, effect any settlement of any pending Proceeding in respect of
which any  Indemnified  Party is a party,  unless  such  settlement  includes an
unconditional  release of such  Indemnified  Party from all  liability on claims
that are the subject matter of such Proceeding.

            Subject  to the terms of this  Agreement,  all  reasonable  fees and
expenses of the Indemnified Party (including reasonable fees and expenses to the
extent  incurred in connection  with  investigating  or preparing to defend such
Proceeding in a manner not inconsistent  with this Section) shall be paid to the
Indemnified  Party,  as  incurred,  within ten  Trading  Days of written  notice
thereof to the Indemnifying  Party;  provided,  that the Indemnified Party shall
promptly  reimburse  the  Indemnifying  Party for that  portion of such fees and
expenses  applicable  to such  actions for which such  Indemnified  Party is not
entitled to indemnification hereunder, determined based upon the relative faults
of the parties.

            (d)   Contribution.  If a claim for  indemnification  under  Section
5(a) or 5(b) is unavailable to an Indemnified  Party (by reason of public policy
or  otherwise),  then each  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  Losses,  in  such  proportion  as is
appropriate  to  reflect  the  relative  fault  of the  Indemnifying  Party  and
Indemnified  Party in connection with the actions,  statements or omissions that
resulted in such Losses as well as any other relevant equitable  considerations.
The relative fault of such  Indemnifying  Party and  Indemnified  Party shall be
determined by reference to, among other things,  whether any action in question,
including any untrue or alleged untrue  statement of a material fact or omission
or alleged omission of a material fact, has been taken or made by, or relates to
information  supplied by, such Indemnifying  Party or Indemnified Party, and the
parties'  relative intent,  knowledge,  access to information and opportunity to
correct or prevent  such  action,  statement  or  omission.  The amount  paid or
payable by a party as a result of any Losses shall be deemed to include, subject
to the  limitations set forth in this  Agreement,  any reasonable  attorneys' or
other reasonable fees or expenses  incurred by such party in connection with any
Proceeding to the extent such party would have been indemnified for such fees or
expenses if the  indemnification  provided for in this Section was  available to
such party in accordance with its terms.

            The parties  hereto agree that it would not be just and equitable if
contribution  pursuant  to  this  Section  5(d)  were  determined  by  pro  rata
allocation or by any other method of allocation  that does not take into account
the equitable considerations referred to in the immediately preceding paragraph.
Notwithstanding the provisions of this Section 5(d), no Holder shall be required
to contribute, in the aggregate, any amount in excess of the amount by which the
proceeds  actually  received  by such  Holder  from the sale of the  Registrable
Securities subject to the Proceeding exceeds the amount of any damages that such
Holder has  otherwise  been  required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission, except in the case of fraud by
such Holder.

                                       9
<PAGE>

            The indemnity and contribution  agreements contained in this Section
are in addition to any liability that the  Indemnifying  Parties may have to the
Indemnified Parties.

      6.    Miscellaneous

            (a)   Remedies.  In the  event of a breach  by the  Company  or by a
Holder,  of any of their  obligations  under this Agreement,  each Holder or the
Company,  as the case may be, in  addition to being  entitled  to  exercise  all
rights granted by law and under this Agreement,  including  recovery of damages,
will be entitled to specific performance of its rights under this Agreement. The
Company and each Holder agree that monetary  damages would not provide  adequate
compensation  for any losses  incurred by reason of a breach by it of any of the
provisions of this Agreement and hereby further agrees that, in the event of any
action for specific  performance  in respect of such breach,  it shall waive the
defense that a remedy at law would be adequate.

            (b)   No Piggyback on Registrations. Except as set forth on Schedule
6(i),  neither  the  Company  nor any of its  security  holders  (other than the
Holders in such capacity pursuant hereto) may include  securities of the Company
in the  Registration  Statement  other  than the  Registrable  Securities.  Each
Purchaser  acknowledges and agrees that the Company may, in its sole discretion,
file one  registration  statement to fulfill its  obligations  to the Purchasers
hereunder.  The Company shall not file any other  registration  statements until
the initial  Registration  Statement required hereunder is declared effective by
the  Commission,  provided that this Section 6(b) shall not prohibit the Company
from filing amendments to registration statements already filed.

            (c)   Compliance.  Each  Holder  covenants  and agrees  that it will
comply  with the  prospectus  delivery  requirements  of the  Securities  Act as
applicable to it in connection with sales of Registrable  Securities pursuant to
the Registration Statement.

            (d)   Discontinued   Disposition.   Each   Holder   agrees   by  its
acquisition of such  Registrable  Securities that, upon receipt of a notice from
the  Company of the  occurrence  of any event of the kind  described  in Section
3(d),  such Holder will forthwith  discontinue  disposition of such  Registrable
Securities  under a Registration  Statement  until such Holder's  receipt of the
copies of the supplemented  Prospectus and/or amended Registration Statement, or
until it is advised in writing (the "Advice") by the Company that the use of the
applicable  Prospectus may be resumed,  and, in either case, has received copies
of any additional or supplemental  filings that are incorporated or deemed to be
incorporated  by reference in such  Prospectus or  Registration  Statement.  The
Company will use its best efforts to ensure that the use of the  Prospectus  may
be resumed as promptly as it  practicable.  The Company agrees and  acknowledges
that any  periods  during  which  the  Holder is  required  to  discontinue  the
disposition  of the  Registrable  Securities  hereunder  shall be subject to the
provisions of Section 2(b).

            (e)   Piggy-Back   Registrations.   If  at  any  time   during   the
Effectiveness Period there is not an effective  Registration  Statement covering
all of the Registrable Securities and the Company shall determine to prepare and
file with the  Commission a registration  statement  relating to an offering for
its own account or the account of others under the  Securities Act of any of its
equity securities, other than on Form S-4 or Form S-8 (each as promulgated under
the Securities Act) or their then equivalents  relating to equity  securities to
be issued solely in connection with any acquisition of any entity or business or

                                       10
<PAGE>

equity securities issuable in connection with the stock option or other employee
benefit  plans,  then the Company shall send to each Holder a written  notice of
such  determination  and, if within  fifteen days after the date of such notice,
any such Holder shall so request in writing,  the Company  shall include in such
registration  statement  all or any  part of such  Registrable  Securities  such
holder  requests to be  registered;  provided,  that,  the Company  shall not be
required to register any  Registrable  Securities  pursuant to this Section 6(e)
that are  eligible  for resale  pursuant  to Rule 144(k)  promulgated  under the
Securities  Act  or  that  are  the  subject  of a then  effective  Registration
Statement.

            (f)   Amendments  and Waivers.  The  provisions  of this  Agreement,
including  the  provisions  of this  sentence,  may not be amended,  modified or
supplemented,  and waivers or consents to departures from the provisions  hereof
may not be given,  unless the same shall be in writing and signed by the Company
and each Holder of the then outstanding Registrable Securities.  Notwithstanding
the  foregoing,  a waiver or consent to depart from the  provisions  hereof with
respect to a matter that relates  exclusively  to the rights of Holders and that
does not directly or indirectly  affect the rights of other Holders may be given
by Holders of all of the Registrable  Securities to which such waiver or consent
relates;  provided,  however,  that the  provisions  of this sentence may not be
amended,  modified,  or supplemented except in accordance with the provisions of
the immediately preceding sentence.

            (g)   Notices.  Any and  all  notices  or  other  communications  or
deliveries  required or permitted to be provided hereunder shall be delivered as
set forth in the Purchase Agreement.

            (h)   Successors  and  Assigns.  This  Agreement  shall inure to the
benefit of and be binding upon the successors  and permitted  assigns of each of
the parties and shall inure to the benefit of each  Holder.  The Company may not
assign its rights or obligations  hereunder without the prior written consent of
all of the Holders of the then-outstanding  Registrable Securities.  Each Holder
may assign their respective rights hereunder in the manner and to the Persons as
permitted under the Purchase Agreement.

            (i)   No Inconsistent Agreements. Neither the Company nor any of its
subsidiaries has entered, as of the date hereof, nor shall the Company or any of
its  subsidiaries,  on or  after  the  date of this  Agreement,  enter  into any
agreement  with  respect  to its  securities,  that  would  have the  effect  of
impairing  the rights  granted to the  Holders in this  Agreement  or  otherwise
conflicts  with the  provisions  hereof.  Except as set forth on Schedule  6(i),
neither the Company nor any of its subsidiaries has previously  entered into any
agreement granting any registration rights with respect to any of its securities
to any Person that have not been satisfied in full.

            (j)   Execution and Counterparts.  This Agreement may be executed in
any number of counterparts, each of which when so executed shall be deemed to be
an original and, all of which taken together  shall  constitute one and the same
Agreement.   In  the  event  that  any   signature  is  delivered  by  facsimile
transmission,  such  signature  shall create a valid  binding  obligation of the
party  executing  (or on whose behalf such  signature is executed) the same with
the same  force and  effect as if such  facsimile  signature  were the  original
thereof.

            (k)   Governing  Law. All  questions  concerning  the  construction,
validity,  enforcement and  interpretation of this Agreement shall be determined
with the provisions of the Purchase Agreement.

                                       11
<PAGE>

            (l)   Cumulative   Remedies.   The  remedies   provided  herein  are
cumulative and not exclusive of any remedies provided by law.

            (m)   Severability.  If any term, provision, covenant or restriction
of this  Agreement is held by a court of competent  jurisdiction  to be invalid,
illegal,  void  or  unenforceable,  the  remainder  of  the  terms,  provisions,
covenants  and  restrictions  set forth  herein  shall  remain in full force and
effect and shall in no way be affected, impaired or invalidated, and the parties
hereto  shall use their  commercially  reasonable  efforts to find and employ an
alternative  means to achieve the same or substantially  the same result as that
contemplated  by such term,  provision,  covenant or  restriction.  It is hereby
stipulated  and declared to be the intention of the parties that they would have
executed the remaining terms,  provisions,  covenants and  restrictions  without
including any of such that may be hereafter declared invalid,  illegal,  void or
unenforceable.

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

            (o)   Independent  Nature of Holders'  Obligations  and Rights.  The
obligations  of each  Holder  hereunder  are  several  and not  joint  with  the
obligations of any other Holder hereunder, and no Holder shall be responsible in
any way for the  performance of the  obligations of any other Holder  hereunder.
Nothing contained herein or in any other agreement or document  delivered at any
closing, and no action taken by any Holder pursuant hereto or thereto,  shall be
deemed to  constitute  the Holders as a  partnership,  an  association,  a joint
venture or any other kind of entity,  or create a  presumption  that the Holders
are in any way  acting  in  concert  with  respect  to such  obligations  or the
transactions  contemplated by this  Agreement.  Each Holder shall be entitled to
protect and enforce its rights,  including without limitation the rights arising
out of this Agreement,  and it shall not be necessary for any other Holder to be
joined as an additional party in any proceeding for such purpose.

                              ********************

                                       12
<PAGE>

      IN WITNESS  WHEREOF,  the parties have executed this  Registration  Rights
Agreement as of the date first written above.

                                              KNOCKOUT HOLDINGS, INC.

                                              /s/ Oscar Turner
                                              ----------------------------------
                                              Oscar Turner,
                                              Chief Financial Officer

                       [SIGNATURE PAGE OF HOLDERS FOLLOWS]

                                       13
<PAGE>

              [SIGNATURE PAGE OF HOLDERS TO KNOCKOUT HOLDINGS RRA]

Name of Investing Entity:  DCOFI Master LDC
                           -----------------
Signature of Authorized Signatory of Investing Entity:  /s/ Richard Smithline
                                                       ----------------------
Name of Authorized Signatory: Richard Smithline
                              -----------------
Title of Authorized Signatory: Director
                               --------

                           [SIGNATURE PAGES CONTINUE]

                                       14
<PAGE>

                              Plan of Distribution

      Each Selling Stockholder (the "Selling  Stockholders") of the common stock
("Common  Stock")  of  Knockout  Holdings,  Inc.,  a Delaware  corporation  (the
"Company") and any of their pledgees,  assignees and successors-in-interest may,
from  time to time,  sell  any or all of their  shares  of  Common  Stock on the
Trading Market or any other stock exchange,  market or trading facility on which
the shares are traded or in private transactions. These sales may be at fixed or
negotiated  prices.  A  Selling  Stockholder  may  use  any  one or  more of the
following methods when selling shares:

      o     ordinary  brokerage  transactions  and  transactions  in  which  the
            broker-dealer solicits purchasers;

      o     block  trades in which the  broker-dealer  will  attempt to sell the
            shares as agent but may  position  and resell a portion of the block
            as principal to facilitate the transaction;

      o     purchases  by  a  broker-dealer  as  principal  and  resale  by  the
            broker-dealer for its account;

      o     an  exchange  distribution  in  accordance  with  the  rules  of the
            applicable exchange;

      o     privately negotiated transactions;

      o     settlement  of  short  sales  entered  into  after  the date of this
            prospectus;

      o     broker-dealers  may agree with the  Selling  Stockholders  to sell a
            specified number of such shares at a stipulated price per share;

      o     a combination of any such methods of sale;

      o     through  the  writing or  settlement  of  options  or other  hedging
            transactions, whether through an options exchange or otherwise; or

      o     any other method permitted pursuant to applicable law.

      The Selling  Stockholders  may also sell  shares  under Rule 144 under the
Securities Act of 1933, as amended (the "Securities Act"), if available,  rather
than under this prospectus.

      Broker-dealers  engaged by the Selling  Stockholders may arrange for other
brokers-dealers to participate in sales.  Broker-dealers may receive commissions
or discounts from the Selling  Stockholders  (or, if any  broker-dealer  acts as
agent  for the  purchaser  of  shares,  from the  purchaser)  in  amounts  to be
negotiated.  Each  Selling  Stockholder  does not expect these  commissions  and
discounts  relating  to its sales of shares to exceed what is  customary  in the
types of transactions involved.

      In connection with the sale of our common stock or interests therein,  the
Selling  Stockholders may enter into hedging transactions with broker-dealers or
other  financial  institutions,  which may in turn  engage in short sales of the
common stock in the course of hedging the  positions  they  assume.  The Selling
Stockholders  may also sell shares of our common  stock short and deliver  these
securities  to close out their  short  positions,  or loan or pledge  the common

                                       15
<PAGE>

stock to  broker-dealers  that in turn may sell these  securities.  The  Selling
Stockholders   may  also  enter   into   option  or  other   transactions   with
broker-dealers  or other  financial  institutions or the creation of one or more
derivative  securities which require the delivery to such broker-dealer or other
financial  institution of shares offered by this  prospectus,  which shares such
broker-dealer  or  other  financial  institution  may  resell  pursuant  to this
prospectus (as supplemented or amended to reflect such transaction).

      The  Selling  Stockholders  and any  broker-dealers  or  agents  that  are
involved  in selling  the shares may be deemed to be  "underwriters"  within the
meaning of the Securities Act in connection with such sales. In such event,  any
commissions  received  by such  broker-dealers  or agents  and any profit on the
resale  of the  shares  purchased  by  them  may be  deemed  to be  underwriting
commissions or discounts under the Securities Act. Each Selling  Stockholder has
informed  the  Company  that it does not have any  agreement  or  understanding,
directly or indirectly, with any person to distribute the Common Stock.

      The Company is required to pay certain fees and  expenses  incurred by the
Company  incident to the  registration of the shares.  The Company has agreed to
indemnify the Selling Stockholders against certain losses,  claims,  damages and
liabilities, including liabilities under the Securities Act.

      Because Selling Stockholders may be deemed to be "underwriters" within the
meaning of the Securities  Act, they will be subject to the prospectus  delivery
requirements of the Securities Act. In addition,  any securities covered by this
prospectus  which qualify for sale pursuant to Rule 144 under the Securities Act
may be sold under Rule 144 rather  than  under  this  prospectus.  Each  Selling
Stockholder  has  advised  us that they have not  entered  into any  agreements,
understandings or arrangements  with any underwriter or broker-dealer  regarding
the sale of the resale shares.  There is no underwriter or  coordinating  broker
acting in connection  with the proposed sale of the resale shares by the Selling
Stockholders.

      We agreed to keep this  prospectus  effective until the earlier of (i) the
date on which  the  shares  may be resold by the  Selling  Stockholders  without
registration  and  without  regard to any volume  limitations  by reason of Rule
144(e) under the  Securities Act or any other rule of similar effect or (ii) all
of the shares have been sold  pursuant to the  prospectus  or Rule 144 under the
Securities  Act or any other rule of similar  effect.  The resale shares will be
sold only through  registered or licensed  brokers or dealers if required  under
applicable  state securities  laws. In addition,  in certain states,  the resale
shares may not be sold unless they have been registered or qualified for sale in
the applicable  state or an exemption  from the  registration  or  qualification
requirement is available and is complied with.

      Under applicable rules and regulations  under the Exchange Act, any person
engaged in the distribution of the resale shares may not  simultaneously  engage
in market making activities with respect to our common stock for a period of two
business days prior to the commencement of the  distribution.  In addition,  the
Selling  Stockholders  will be subject to applicable  provisions of the Exchange
Act and the rules and regulations thereunder,  including Regulation M, which may
limit the timing of  purchases  and sales of shares of our  common  stock by the
Selling Stockholders or any other person. We will make copies of this prospectus
available  to the Selling  Stockholders  and have  informed  them of the need to
deliver a copy of this  prospectus to each  purchaser at or prior to the time of
the sale.

                                       16
<PAGE>

                                                                         ANNEX B

                             KNOCKOUT HOLDINGS, INC.

                 SELLING SECURITYHOLDER NOTICE AND QUESTIONNAIRE

      The undersigned  beneficial  owner of common stock,  par value $0.001 (the
"Common  Stock"),  of  Knockout  Holdings,  Inc.,  a Delaware  corporation  (the
"Company"),  (the  "Registrable  Securities")  understands  that the Company has
filed or  intends  to file with the  Securities  and  Exchange  Commission  (the
"Commission")  a  registration   statement  on  Form  SB-2  (the   "Registration
Statement") for the registration and resale under Rule 415 of the Securities Act
of 1933, as amended (the "Securities  Act"), of the Registrable  Securities,  in
accordance with the terms of the Registration Rights Agreement,  dated as of May
2,  2005 (the  "Registration  Rights  Agreement"),  among  the  Company  and the
Purchasers  named  therein.  A copy  of the  Registration  Rights  Agreement  is
available  from the Company  upon  request at the address set forth  below.  All
capitalized  terms not otherwise defined herein shall have the meanings ascribed
thereto in the Registration Rights Agreement.

      Certain   legal   consequences   arise  from  being  named  as  a  selling
securityholder  in  the  Registration  Statement  and  the  related  prospectus.
Accordingly, holders and beneficial owners of Registrable Securities are advised
to consult their own securities law counsel  regarding the consequences of being
named  or not  being  named  as a  selling  securityholder  in the  Registration
Statement and the related prospectus.

                                     NOTICE

      The  undersigned  beneficial  owner  (the  "Selling   Securityholder")  of
Registrable Securities hereby elects to include the Registrable Securities owned
by it and listed below in Item 3 (unless otherwise  specified under such Item 3)
in the Registration Statement.

      The undersigned  hereby provides the following  information to the Company
and represents and warrants that such information is accurate:

                                  QUESTIONNAIRE

1.    NAME.

      (a)   Full Legal Name of Selling Securityholder

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

      (b)   Full Legal Name of Registered  Holder (if not the same as (a) above)
            through  which  Registrable  Securities  Listed  in Item 3 below are
            held:

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

                                       17
<PAGE>

      (c)   Full Legal Name of Natural  Control  Person  (which  means a natural
            person who directly you indirectly alone or with others has power to
            vote or dispose of the securities covered by the questionnaire):

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

2.    ADDRESS FOR NOTICES TO SELLING SECURITYHOLDER:

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Telephone:
          ----------------------------------------------------------------------
Fax:
   -----------------------------------------------------------------------------
Contact Person:
              ------------------------------------------------------------------

3.    BENEFICIAL OWNERSHIP OF REGISTRABLE SECURITIES:

      (a)   Type and Principal  Amount of  Registrable  Securities  beneficially
            owned:

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

4.    BROKER-DEALER STATUS:

      (a)   Are you a broker-dealer?

                                 Yes |_| No |_|

      Note: If yes,  the  Commission's  staff has  indicated  that you should be
            identified as an underwriter in the Registration Statement.

      (b)   Are you an affiliate of a broker-dealer?

                                 Yes |_| No |_|

      (c)   If you are an affiliate of a broker-dealer,  do you certify that you
            bought  the  Registrable   Securities  in  the  ordinary  course  of
            business,  and  at  the  time  of the  purchase  of the  Registrable
            Securities to be resold,  you had no  agreements or  understandings,
            directly  or   indirectly,   with  any  person  to  distribute   the
            Registrable Securities?

                                 Yes |_| No |_|

      Note: If no,  the  Commission's  staff has  indicated  that you  should be
            identified as an underwriter in the Registration Statement.

                                       18
<PAGE>

5.    BENEFICIAL  OWNERSHIP  OF OTHER  SECURITIES  OF THE  COMPANY  OWNED BY THE
      SELLING SECURITYHOLDER.

      Except  as set  forth  below in this  Item 5, the  undersigned  is not the
      beneficial or registered owner of any securities of the Company other than
      the Registrable Securities listed above in Item 3.

      (a)   Type  and  Amount  of  Other  Securities  beneficially  owned by the
            Selling Securityholder:

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

6.    RELATIONSHIPS WITH THE COMPANY:

      Except  as  set  forth  below,  neither  the  undersigned  nor  any of its
      affiliates,  officers, directors or principal equity holders (owners of 5%
      of more of the equity securities of the undersigned) has held any position
      or office or has had any other material  relationship with the Company (or
      its predecessors or affiliates) during the past three years.

      State any exceptions here:

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

      The undersigned  agrees to promptly notify the Company of any inaccuracies
or changes in the information  provided herein that may occur  subsequent to the
date hereof at any time while the Registration Statement remains effective.

      By signing  below,  the  undersigned  consents  to the  disclosure  of the
information  contained  herein  in its  answers  to  Items 1  through  6 and the
inclusion of such  information  in the  Registration  Statement  and the related
prospectus.  The undersigned  understands  that such  information will be relied
upon by the Company in  connection  with the  preparation  or  amendment  of the
Registration Statement and the related prospectus.

      IN WITNESS WHEREOF the  undersigned,  by authority duly given,  has caused
this Notice and  Questionnaire  to be executed and delivered either in person or
by its duly authorized agent.

Dated:                                Beneficial Owner:
       ------------------------                        -------------------------

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

PLEASE FAX A COPY OF THE COMPLETED AND EXECUTED  NOTICE AND  QUESTIONNAIRE,  AND
RETURN THE ORIGINAL BY OVERNIGHT MAIL, TO:

                                       19

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