Document:

EXHIBIT 10.20

                     INVESTOR REGISTRATION RIGHTS AGREEMENT
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     THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement"), dated as of May  19,
                                               ---------
2004,  by  and among NS8 CORPORATION, a Delaware corporation, with its principal
office  located  at  Two  Union  Square  601  Union Street - Suite 4200 Seattle,
Washington  98101  (the  "Company"),  and  the  undersigned  investors (each, an
                          -------
"Investor"  and  collectively,  the  "Investors").
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     WHEREAS:

A.     In  connection  with  the  Securities Purchase Agreement by and among the
parties  hereto of even date herewith (the "Securities Purchase Agreement"), the
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Company  has  agreed,  upon  the  terms  and  subject  to  the conditions of the
Securities  Purchase  Agreement,  to  issue  and  sell  to the Investors secured
convertible debentures (the "Convertible Debentures") which shall be convertible
                             ----------------------
into that number of shares of the Company's common stock, par value US$.0001 per
share  (the  "Common  Stock"),  pursuant to the terms of the Securities Purchase
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Agreement  for  an  aggregate  purchase  price of up to One Million Five Hundred
Thousand  U.S. Dollars ($1,500,000).  Capitalized terms not defined herein shall
have  the  meaning  ascribed  to  them  in  the  Securities  Purchase Agreement.

B.     To  induce  the  Investors to execute and deliver the Securities Purchase
Agreement,  the  Company has agreed to provide certain registration rights under
the  Securities  Act  of  1933,  as amended, and the rules and regulations there
under,  or  any  similar  successor  statute (collectively, the "1933 Act"), and
                                                                 --------
applicable  state  securities  laws.

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

     1.     DEFINITIONS.
            -----------

     As  used  in  this  Agreement, the following terms shall have the following
meanings:

     (a)     "Person"  means  a  corporation,  a  limited  liability company, an
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association,  a  partnership,  an  organization,  a  business,  an individual, a
governmental  or  political  subdivision  thereof  or  a  governmental  agency.

     (b)     "Register,"  "registered,"  and  "registration"  refer  to  a
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registration  effected  by  preparing  and  filing  one  or  more  Registration
Statements  (as  defined  below) in compliance with the 1933 Act and pursuant to
Rule  415  under  the  1933  Act  or  any  successor rule providing for offering
securities on a continuous or delayed basis ("Rule 415"), and the declaration or
                                              --------
ordering of effectiveness of such Registration Statement(s) by the United States
Securities  and  Exchange  SEC  (the  "SEC").
                                       ---

     (c)     "Registrable  Securities" means the shares of Common Stock issuable
              -----------------------
to  Investors  upon  conversion  of  the  Convertible Debentures pursuant to the

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Securities  Purchase  Agreement  and  the  Investor's  Shares,  as  this term is
defined  in  the  Standby  Equity  Distribution Agreement dated the date hereof.

     (d)     "Registration  Statement"  means a registration statement under the
              -----------------------
1933  Act  which  covers  the  Registrable  Securities.

     2.     REGISTRATION.
            ------------

     (a)     Subject  to the terms and conditions of this Agreement, the Company
shall prepare and file, no later than thirty (30) days from the date hereof (the
"Scheduled  Filing Deadline"), with the SEC a registration statement on Form S-1
 --------------------------
or  SB-2  (or,  if the Company is then eligible, on Form S-3) under the 1933 Act
(the  "Initial  Registration  Statement") for the registration for the resale by
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all  Investors  who  purchased Convertible Debentures pursuant to the Securities
Purchase Agreement _________ shares of Common Stock to be issued upon conversion
of  the  Convertible  Debentures  issued  pursuant  to  the  Securities Purchase
Agreement  and  the Investor's Shares.  The Company shall cause the Registration
Statement  to remain effective until all of the Registrable Securities have been
sold.  Prior  to  the  filing  of  the  Registration Statement with the SEC, the
Company  shall  furnish  a  copy  of  the  Initial Registration Statement to the
Investors  and  Butler Gonzalez LLP for their review and comment.  The Investors
and  Butler  Gonzalez  LLP  shall  furnish  comments on the Initial Registration
Statement  to  the  Company within twenty-four (24) hours of the receipt thereof
from  the  Company.

     (b)     Effectiveness  of  the Initial Registration Statement.  The Company
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shall  use  its  best  efforts  (i)  to  have the Initial Registration Statement
declared effective by the SEC no later than one hundred twenty (120)  days after
the date hereof (the "Scheduled Effective Deadline") and (ii) to insure that the
                      ----------------------------
Initial Registration Statement and any subsequent Registration Statement remains
in effect until all of the Registrable Securities have been sold, subject to the
terms  and  conditions  of  this  Agreement.

     (c)     Failure  to  File  or  Obtain  Effectiveness  of  the  Registration
             -------------------------------------------------------------------
Statement.  In  the  event  the  Registration  Statement  is  not  filed  by the
       --
Scheduled  Filing  Deadline or is not declared effective by the SEC on or before
       -
the  Scheduled  Effective  Date, or if after the Registration Statement has been
declared effective by the SEC, sales cannot be made pursuant to the Registration
Statement  (whether  because  of  a  failure  to keep the Registration Statement
effective,  failure to disclose such information as is necessary for sales to be
made  pursuant  to  the  Registration  Statement, failure to register sufficient
shares  of  Common  Stock or otherwise then as partial relief for the damages to
any holder of Registrable Securities by reason of any such delay in or reduction
of its ability to sell the underlying shares of Common Stock (which remedy shall
not  be  exclusive  of any other remedies at law or in equity), the Company will
pay  as  liquidated  damages  (the  "Liquidated  Damages") to the holder, at the
                                     -------------------
holder's  option,  either  a cash amount or shares of the Company's Common Stock
within  three  (3)  business  days, after demand therefore, equal to two percent
(2%)  of  the  liquidated  value  of  the  Convertible Debentures outstanding as
Liquidated  Damages  for  each thirty (30) day period after the Scheduled Filing
Deadline  or  the  Scheduled  Effective  Date  as  the  case  may  be.

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     (d)     Liquidated  Damages.  The  Company  and  the  Investor  hereto
             -------------------
acknowledge  and  agree  that the sums payable under subsection 2(c) above shall
constitute liquidated damages and not penalties and are in addition to all other
rights  of  the  Investor,  including  the right to call a default.  The parties
further acknowledge that (i) the amount of loss or damages likely to be incurred
is  incapable  or is difficult to precisely estimate, (ii) the amounts specified
in  such  subsections  bear a reasonable relationship to, and are not plainly or
grossly  disproportionate  to,  the  probable  loss  likely  to  be  incurred in
connection  with  any  failure  by  the  Company  to  obtain  or  maintain  the
effectiveness  of  a  Registration  Statement,  (iii) one of the reasons for the
Company  and  the  Investor  reaching  an  agreement  as to such amounts was the
uncertainty and cost of litigation regarding the question of actual damages, and
(iv)  the  Company  and the Investor are sophisticated business parties and have
been  represented  by  sophisticated  and able legal counsel and negotiated this
Agreement  at  arm's  length.

     3.     RELATED  OBLIGATIONS.
            --------------------

     (a)     The  Company  shall  keep  the  Registration  Statement  effective
pursuant  to  Rule  415  at all times until the date on which the Investor shall
have  sold all the Registrable Securities covered by such Registration Statement
(the  "Registration  Period"),  which  Registration  Statement  (including  any
       --------------------
amendments  or supplements thereto and prospectuses contained therein) shall not
      -
contain any 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  in  which  they  were  made,  not  misleading.

     (b)     The  Company  shall  prepare  and file with the SEC such amendments
(including  post-effective  amendments)  and  supplements  to  a  Registration
Statement  and  the  prospectus  used  in  connection  with  such  Registration
Statement,  which  prospectus  is  to  be filed pursuant to Rule 424 promulgated
under  the  1933  Act,  as  may be necessary to keep such Registration Statement
effective  at all times during the Registration Period, and, during such period,
comply  with  the  provisions of the 1933 Act with respect to the disposition of
all Registrable Securities of the Company covered by such Registration Statement
until  such  time as all of such Registrable Securities shall have been disposed
of  in  accordance  with  the  intended  methods of disposition by the seller or
sellers  thereof  as  set  forth in such Registration Statement.  In the case of
amendments  and supplements to a Registration Statement which are required to be
filed  pursuant  to  this Agreement (including pursuant to this Section 3(b)) by
reason  of the Company's filing a report on Form 10-KSB, Form 10-QSB or Form 8-K
or  any  analogous  report under the Securities Exchange Act of 1934, as amended
(the  "1934  Act"),  the Company shall incorporate such report by reference into
       ---------
the  Registration  Statement,  if  applicable,  or shall file such amendments or
supplements  with  the SEC on the same day on which the 1934 Act report is filed
which  created  the  requirement  for  the  Company  to  amend or supplement the
Registration  Statement.

     (c)     The  Company  shall  furnish  to  each  Investor  whose Registrable
Securities  are  included  in any Registration Statement, without charge, (i) at
least  one  (1) copy of such Registration Statement as declared effective by the
SEC  and any amendment(s) thereto, including financial statements and schedules,
all  documents  incorporated  therein  by  reference,  all  exhibits  and  each
preliminary prospectus, (ii) ten (10) copies of the final prospectus included in
such  Registration Statement and all amendments and supplements thereto (or such

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other  number  of copies as such Investor may reasonably request) and (iii) such
other  documents  as  such  Investor may reasonably request from time to time in
order  to facilitate the disposition of the Registrable Securities owned by such
Investor.

     (d)     The  Company shall use its best efforts to (i) register and qualify
the  Registrable Securities covered by a Registration Statement under such other
securities  or "blue sky" laws of such jurisdictions in the United States as any
Investor reasonably requests, (ii) prepare and file in those jurisdictions, such
amendments  (including  post-effective  amendments)  and  supplements  to  such
registrations  and  qualifications  as  may  be  necessary  to  maintain  the
effectiveness  thereof  during  the  Registration  Period, (iii) take such other
actions as may be necessary to maintain such registrations and qualifications in
effect  at  all  times  during  the Registration Period, and (iv) take all other
actions  reasonably necessary or advisable to qualify the Registrable Securities
for sale in such jurisdictions; provided, however, that the Company shall not be
required  in  connection  therewith  or  as  a condition thereto to (w) make any
change  to  its  certificate  of  incorporation  or  by-laws,  (x) qualify to do
business in any jurisdiction where it would not otherwise be required to qualify
but  for  this  Section 3(d), (y) subject itself to general taxation in any such
jurisdiction,  or  (z)  file a general consent to service of process in any such
jurisdiction.  The  Company  shall  promptly  notify  each  Investor  who  holds
Registrable  Securities  of  the receipt by the Company of any notification with
respect  to  the  suspension  of the registration or qualification of any of the
Registrable  Securities  for sale under the securities or "blue sky" laws of any
jurisdiction  in  the  United  States  or  its  receipt  of actual notice of the
initiation  or  threat  of  any  proceeding  for  such  purpose.

     (e)     As  promptly  as  practicable after becoming aware of such event or
development,  the Company shall notify each Investor in writing of the happening
of  any  event  as  a  result of which the prospectus included in a Registration
Statement, as then in effect, includes an untrue statement of a material fact or
omission  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  (provided that in no event shall such notice contain any
material, nonpublic information), and promptly prepare a supplement or amendment
to such Registration Statement to correct such untrue statement or omission, and
deliver  ten  (10) copies of such supplement or amendment to each Investor.  The
Company  shall  also  promptly  notify  each  Investor  in  writing  (i)  when a
prospectus  or  any  prospectus  supplement or post-effective amendment has been
filed,  and  when  a  Registration Statement or any post-effective amendment has
become  effective (notification of such effectiveness shall be delivered to each
Investor  by  facsimile  on  the  same  day  of such effectiveness), (ii) of any
request  by the SEC for amendments or supplements to a Registration Statement or
related prospectus or related information, and (iii) of the Company's reasonable
determination  that a post-effective amendment to a Registration Statement would
be  appropriate.

     (f)     The  Company  shall use its best efforts to prevent the issuance of
any stop order or other suspension of effectiveness of a Registration Statement,
or  the suspension of the qualification of any of the Registrable Securities for
sale  in  any  jurisdiction  within the United States of America and, if such an
order  or  suspension  is  issued,  to  obtain  the  withdrawal of such order or
suspension at the earliest possible moment and to notify each Investor who holds
Registrable  Securities  being  sold  of  the  issuance  of  such  order and the
resolution  thereof  or its receipt of actual notice of the initiation or threat
of  any  proceeding  for  such  purpose.

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     (g)     At  the  reasonable  request  of  any  Investor,  the Company shall
furnish  to  such Investor, on the date of the effectiveness of the Registration
Statement  and  thereafter  from  time  to time on such dates as an Investor may
reasonably request (i) a letter, dated such date, from the Company's independent
certified  public  accountants  in form and substance as is customarily given by
independent  certified  public  accountants  to  underwriters in an underwritten
public  offering,  and  (ii)  an  opinion,  dated  as  of  such date, of counsel
representing  the  Company for purposes of such Registration Statement, in form,
scope  and substance as is customarily given in an underwritten public offering,
addressed  to  the  Investors.

     (h)     The Company shall make available for inspection by (i) any Investor
and  (ii)  one (1) firm of accountants or other agents retained by the Investors
(collectively,  the "Inspectors") all pertinent financial and other records, and
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pertinent  corporate  documents and properties of the Company (collectively, the
"Records"), as shall be reasonably deemed necessary by each Inspector, and cause
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the  Company's officers, directors and employees to supply all information which
any  Inspector  may  reasonably  request; provided, however, that each Inspector
shall  agree,  and each Investor hereby agrees, to hold in strict confidence and
shall  not  make  any  disclosure  (except to an Investor) or use  any Record or
other information which the Company determines in good faith to be confidential,
and  of  which  determination  the  Inspectors  are  so notified, unless (a) the
disclosure  of  such  Records is necessary to avoid or correct a misstatement or
omission  in  any Registration Statement or is otherwise required under the 1933
Act,  (b)  the  release  of  such  Records  is  ordered  pursuant  to  a  final,
non-appealable  subpoena  or  order from a court or government body of competent
jurisdiction,  or  (c)  the  information in such Records has been made generally
available  to  the  public  other than by disclosure in violation of this or any
other  agreement  of  which  the Inspector and the Investor has knowledge.  Each
Investor  agrees that it shall, upon learning that disclosure of such Records is
sought  in  or  by  a  court  or  governmental body of competent jurisdiction or
through other means, give prompt notice to the Company and allow the Company, at
its  expense,  to  undertake  appropriate action to prevent disclosure of, or to
obtain  a  protective  order  for,  the  Records  deemed  confidential.

     (i)     The Company shall hold in confidence and not make any disclosure of
information concerning an Investor provided to the Company unless (i) disclosure
of  such  information  is  necessary  to comply with federal or state securities
laws, (ii) the disclosure of such information is necessary to avoid or correct a
misstatement  or  omission  in  any Registration Statement, (iii) the release of
such  information  is  ordered  pursuant  to  a  subpoena  or  other  final,
non-appealable  order  from  a  court  or  governmental  body  of  competent
jurisdiction,  or (iv) such information has been made generally available to the
public  other  than  by  disclosure  in violation of this Agreement or any other
agreement.  The  Company  agrees that it shall, upon learning that disclosure of
such  information  concerning  an  Investor  is  sought  in  or  by  a  court or
governmental  body of competent jurisdiction or through other means, give prompt

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written  notice  to  such  Investor  and  allow such Investor, at the Investor's
expense,  to undertake appropriate action to prevent disclosure of, or to obtain
a  protective  order  for,  such  information.

     (j)     The  Company  shall  use  its  best efforts either to cause all the
Registrable  Securities  covered by a Registration Statement (i) to be listed on
each  securities exchange on which securities of the same class or series issued
by  the  Company  are  then  listed,  if any, if the listing of such Registrable
Securities  is  then  permitted  under  the  rules  of such exchange or (ii) the
inclusion  for quotation on the National Association of Securities Dealers, Inc.
OTC  Bulletin  Board for such Registrable Securities.  The Company shall pay all
fees  and  expenses  in  connection  with  satisfying  its obligation under this
Section  3(j).

     (k)     The Company shall cooperate with the Investors who hold Registrable
Securities being offered and, to the extent applicable, to facilitate the timely
preparation  and  delivery  of certificates (not bearing any restrictive legend)
representing the Registrable Securities to be offered pursuant to a Registration
Statement  and  enable such certificates to be in such denominations or amounts,
as  the  case  may be, as the Investors may reasonably request and registered in
such  names  as  the  Investors  may  request.

     (l)     The  Company  shall  use  its best efforts to cause the Registrable
Securities  covered  by  the  applicable Registration Statement to be registered
with  or  approved  by such other governmental agencies or authorities as may be
necessary  to  consummate  the  disposition  of  such  Registrable  Securities.

     (m)     The  Company shall make generally available to its security holders
as soon as practical, but not later than ninety (90) days after the close of the
period  covered  thereby,  an  earnings  statement  (in  form complying with the
provisions  of  Rule 158 under the 1933 Act) covering a twelve (12) month period
beginning  not  later  than  the  first day of the Company's fiscal quarter next
following  the  effective  date  of  the  Registration  Statement.

     (n)     The Company shall otherwise use its best efforts to comply with all
applicable  rules and regulations of the SEC in connection with any registration
hereunder.

     (o)     Within  two  (2) business days after a Registration Statement which
covers  Registrable  Securities  is  declared  effective by the SEC, the Company
shall  deliver, and shall cause legal counsel for the Company to deliver, to the
transfer  agent  for  such  Registrable Securities (with copies to the Investors
whose  Registrable  Securities  are  included  in  such  Registration Statement)
confirmation that such Registration Statement has been declared effective by the
SEC  in  the  form  attached  hereto  as  Exhibit  A.
                                          ----------

     (p)     The  Company  shall  take all other reasonable actions necessary to
expedite  and  facilitate disposition by the Investors of Registrable Securities
pursuant  to  a  Registration  Statement.

     4.     OBLIGATIONS  OF  THE  INVESTORS.
            -------------------------------

     Each  Investor  agrees that, upon receipt of any notice from the Company of
the  happening  of  any event of the kind described in Section 3(f) or the first
sentence  of  3(e),  such  Investor  will immediately discontinue disposition of
Registrable  Securities  pursuant to any Registration Statement(s) covering such
Registrable  Securities  until  such  Investor's  receipt  of  the copies of the
supplemented  or  amended  prospectus contemplated by Section 3(e) or receipt of
notice that no supplement or amendment is required.  Notwithstanding anything to
the  contrary,  the Company shall cause its transfer agent to deliver unlegended
certificates  for  shares  of  Common  Stock  to  a transferee of an Investor in
accordance  with  the  terms  of the Securities Purchase Agreement in connection
with  any  sale  of Registrable Securities with respect to which an Investor has
entered  into  a  contract  for sale prior to the Investor's receipt of a notice
from  the Company of the happening of any event of the kind described in Section

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3(f)  or  the  first  sentence  of  3(e)  and for which the Investor has not yet
settled.  The  Investor  shall  furnish the Company with such information as the
Company  reasonably  requests  for  disclosure  in the Registration Statement as
required  by  the  rules  and  regulations  of  the  SEC.

     5.     EXPENSES  OF  REGISTRATION.
            --------------------------

     All  expenses  incurred  in  connection  with  registrations,  filings  or
qualifications  pursuant to Sections 2 and 3, including, without limitation, all
registration,  listing  and  qualifications fees, printers, legal and accounting
fees  shall  be  paid  by  the  Company,  except that the Investor shall pay all
discounts  and commission relating to the sale of Registrable Securities and the
fees  of  any  attorneys  or  advisors  retained  by  the  Investor.

     6.     INDEMNIFICATION.
            ---------------

     With respect to Registrable Securities which are included in a Registration
Statement  under  this  Agreement:

     (a)     To  the  fullest  extent  permitted  by  law, the Company will, and
hereby  does,  indemnify, hold harmless and defend each Investor, the directors,
officers,  partners,  employees, agents, representatives of, and each Person, if
any,  who  controls  any Investor within the meaning of the 1933 Act or the 1934
Act  (each,  an  "Indemnified  Person"),  against  any  losses, claims, damages,
                  -------------------
liabilities,  judgments, fines, penalties, charges, costs, reasonable attorneys'
fees,  amounts  paid  in settlement or expenses, joint or several (collectively,
"Claims")  incurred  in investigating, preparing or defending any action, claim,
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suit,  inquiry,  proceeding, investigation or appeal taken from the foregoing by
or  before any court or governmental, administrative or other regulatory agency,
body  or  the  SEC, whether pending or threatened, whether or not an indemnified
party is or may be a party thereto ("Indemnified Damages"), to which any of them
                                     -------------------
may  become  subject  insofar as such Claims (or actions or proceedings, whether
commenced or threatened, in respect thereof) arise out of or are based upon: (i)
any  untrue  statement  or  alleged  untrue  statement  of  a material fact in a
Registration  Statement or any post-effective amendment thereto or in any filing
made  in  connection with the qualification of the offering under the securities
or other "blue sky" laws of any jurisdiction in which Registrable Securities are
offered  ("Blue  Sky  Filing"),  or  the omission or alleged omission to state a
           -----------------
material  fact required to be stated therein or necessary to make the statements
therein not misleading; (ii) any untrue statement or alleged untrue statement of
a  material  fact contained in any final prospectus (as amended or supplemented,
if  the  Company files any amendment thereof or supplement thereto with the SEC)
or the omission or alleged omission to state therein any material fact necessary
to  make  the statements made therein, in light of the circumstances under which
the  statements  therein  were  made,  not misleading; or (iii) any violation or
alleged  violation  by the Company of the 1933 Act, the 1934 Act, any other law,
including,  without  limitation,  any  state  securities  law,  or  any  rule or
regulation  there  under  relating  to  the  offer  or  sale  of the Registrable
Securities  pursuant  to  a Registration Statement (the matters in the foregoing
clauses (i) through (iii) being, collectively, "Violations").  The Company shall
                                                ----------

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reimburse  the  Investors  and  each  such  controlling  person promptly as such
expenses  are  incurred  and  are  due  and  payable,  for  any  legal  fees  or
disbursements  or  other reasonable expenses incurred by them in connection with
investigating  or  defending  any  such  Claim.  Notwithstanding anything to the
contrary  contained  herein,  the  indemnification  agreement  contained in this
Section  6(a):  (x)  shall not apply to a Claim by an Indemnified Person arising
out of or based upon a Violation which occurs in reliance upon and in conformity
with  information furnished in writing to the Company by such Indemnified Person
expressly  for  use  in  connection  with  the  preparation  of the Registration
Statement  or any such amendment thereof or supplement thereto; (y) shall not be
available  to  the  extent  such  Claim is based on a failure of the Investor to
deliver  or  to  cause  to  be  delivered  the  prospectus made available by the
Company, if such prospectus was timely made available by the Company pursuant to
Section 3(c); and (z) shall not apply to amounts paid in settlement of any Claim
if such settlement is effected without the prior written consent of the Company,
which consent shall not be unreasonably withheld. Such indemnity shall remain in
full  force  and  effect regardless of any investigation made by or on behalf of
the  Indemnified  Person  and  shall  survive  the  transfer  of the Registrable
Securities  by  the  Investors  pursuant  to  Section  9  hereof.

     (b)     In  connection  with a Registration Statement, each Investor agrees
to  severally  and  not jointly indemnify, hold harmless and defend, to the same
extent and in the same manner as is set forth in Section 6(a), the Company, each
of  its  directors,  each of its officers, employees, representatives, or agents
and each Person, if any, who controls the Company within the meaning of the 1933
Act  or  the  1934  Act  (each  an  "Indemnified  Party"),  against any Claim or
                                     ------------------
Indemnified Damages to which any of them may become subject, under the 1933 Act,
the  1934  Act  or otherwise, insofar as such Claim or Indemnified Damages arise
out  of  or is based upon any Violation, in each case to the extent, and only to
the  extent,  that such Violation occurs in reliance upon and in conformity with
written  information furnished to the Company by such Investor expressly for use
in  connection  with  such Registration Statement; and, subject to Section 6(d),
such  Investor will reimburse any legal or other expenses reasonably incurred by
them  in  connection  with  investigating or defending any such Claim; provided,
however,  that  the  indemnity  agreement contained in this Section 6(b) and the
agreement with respect to contribution contained in Section 7 shall not apply to
amounts  paid  in settlement of any Claim if such settlement is effected without
the  prior  written  consent  of  such  Investor,  which  consent  shall  not be
unreasonably  withheld;  provided,  further, however, that the Investor shall be
liable  under  this  Section 6(b) for only that amount of a Claim or Indemnified
Damages  as does not exceed the net proceeds to such Investor as a result of the
sale  of  Registrable  Securities pursuant to such Registration Statement.  Such
indemnity  shall remain in full force and effect regardless of any investigation
made by or on behalf of such Indemnified Party and shall survive the transfer of
the  Registrable  Securities  by  the  Investors  pursuant  to  Section  9.
Notwithstanding  anything  to the contrary contained herein, the indemnification
agreement  contained  in  this Section 6(b) with respect to any prospectus shall
not  inure  to  the  benefit of any Indemnified Party if the untrue statement or
omission of material fact contained in the prospectus was corrected and such new
prospectus  was  delivered  to each Investor prior to such Investor's use of the
prospectus  to  which  the  Claim  relates.

     (c)     Promptly  after  receipt  by  an  Indemnified Person or Indemnified
Party  under  this  Section  6  of  notice  of the commencement of any action or
proceeding  (including any governmental action or proceeding) involving a Claim,

                                      E-131
<PAGE>

such  Indemnified  Person  or  Indemnified  Party  shall,  if a Claim in respect
thereof  is  to  be  made  against  any indemnifying party under this Section 6,
deliver  to the indemnifying party a written notice of the commencement thereof,
and  the  indemnifying party shall have the right to participate in, and, to the
extent  the  indemnifying  party so desires, jointly with any other indemnifying
party  similarly  noticed, to assume control of the defense thereof with counsel
mutually  satisfactory  to  the indemnifying party and the Indemnified Person or
the  Indemnified  Party,  as  the  case  may  be;  provided,  however,  that  an
Indemnified  Person  or Indemnified Party shall have the right to retain its own
counsel  with  the  fees  and expenses of not more than one (1) counsel for such
Indemnified  Person  or  Indemnified Party to be paid by the indemnifying party,
if, in the reasonable opinion of counsel retained by the indemnifying party, the
representation  by  such  counsel of the Indemnified Person or Indemnified Party
and  the  indemnifying  party  would be inappropriate due to actual or potential
differing  interests  between  such  Indemnified Person or Indemnified Party and
any other party represented by such counsel in such proceeding.  The Indemnified
Party or Indemnified Person shall cooperate fully with the indemnifying party in
connection  with  any  negotiation or defense of any such action or claim by the
indemnifying  party  and shall furnish to the indemnifying party all information
reasonably  available  to  the  Indemnified  Party  or  Indemnified Person which
relates  to  such  action  or  claim.  The  indemnifying  party  shall  keep the
Indemnified  Party  or  Indemnified Person fully apprised at all times as to the
status  of  the defense or any settlement negotiations with respect thereto.  No
indemnifying  party  shall  be liable for any settlement of any action, claim or
proceeding  effected  without its prior written consent; provided, however, that
the  indemnifying  party shall not unreasonably withhold, delay or condition its
consent.  No  indemnifying party shall, without the prior written consent of the
Indemnified  Party  or  Indemnified  Person, consent to entry of any judgment or
enter  into  any  settlement  or  other  compromise which does not include as an
unconditional  term  thereof  the  giving  by  the claimant or plaintiff to such
Indemnified  Party  or  Indemnified  Person  of  a release from all liability in
respect  to such claim or litigation.  Following indemnification as provided for
hereunder,  the  indemnifying  party  shall  be  subrogated to all rights of the
Indemnified Party or Indemnified Person with respect to all third parties, firms
or  corporations relating to the matter for which indemnification has been made.
The  failure  to  deliver  written  notice  to  the  indemnifying party within a
reasonable  time  of  the commencement of any such action shall not relieve such
indemnifying  party  of  any  liability to the Indemnified Person or Indemnified
Party  under this Section 6, except to the extent that the indemnifying party is
prejudiced  in  its  ability  to  defend  such  action.

     (d)     The  indemnification  required  by  this Section 6 shall be made by
periodic  payments  of the amount thereof during the course of the investigation
or  defense, as and when bills are received or Indemnified Damages are incurred.

     (e)     The  indemnity  agreements contained herein shall be in addition to
(i) any cause of action or similar right of the Indemnified Party or Indemnified
Person  against  the  indemnifying party or others, and (ii) any liabilities the
indemnifying  party  may  be  subject  to  pursuant  to  the  law.

     7.     CONTRIBUTION.
            ------------

     To the extent any indemnification by an indemnifying party is prohibited or
limited  by  law, the indemnifying party agrees to make the maximum contribution

                                      E-132
<PAGE>

with respect to any amounts for which it would otherwise be liable under Section
6  to  the  fullest  extent  permitted  by law; provided, however, that:  (i) no
seller  of Registrable Securities guilty of fraudulent misrepresentation (within
the  meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution
from  any  seller  of  Registrable  Securities  who was not guilty of fraudulent
misrepresentation; and (ii) contribution by any seller of Registrable Securities
shall be limited in amount to the net amount of proceeds received by such seller
from  the  sale  of  such  Registrable  Securities.

     8.     REPORTS  UNDER  THE  1934  ACT.
            ------------------------------

     With  a  view to making available to the Investors the benefits of Rule 144
promulgated under the 1933 Act or any similar rule or regulation of the SEC that
may  at  any  time permit the Investors to sell securities of the Company to the
public  without  registration  ("Rule  144")  the  Company  agrees  to:
                                 ---------

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

     (b)     file  with  the  SEC  in  a  timely  manner  all  reports and other
documents required of the Company under the 1933 Act and the 1934 Act so long as
the  Company  remains  subject  to  such  requirements (it being understood that
nothing  herein  shall limit the Company's obligations under Section 4(c) of the
Securities  Purchase  Agreement)  and  the  filing  of  such  reports  and other
documents  as  are  required  by  the  applicable  provisions  of  Rule 144; and

     (c)     furnish  to each Investor so long as such Investor owns Registrable
Securities,  promptly  upon request, (i) a written statement by the Company that
it  has  complied  with the reporting requirements of Rule 144, the 1933 Act and
the  1934  Act, (ii) a copy of the most recent annual or quarterly report of the
Company  and such other reports and documents so filed by the Company, and (iii)
such other information as may be reasonably requested to permit the Investors to
sell  such  securities  pursuant  to  Rule  144  without  registration.

     9.     AMENDMENT  OF  REGISTRATION  RIGHTS.
            -----------------------------------

     Provisions  of this Agreement may be amended and the observance thereof may
be waived (either generally or in a particular instance and either retroactively
or  prospectively),  only  with the written consent of the Company and Investors
who  then  hold  at  least  two-thirds (2/3) of the Registrable Securities.  Any
amendment  or waiver effected in accordance with this Section 9 shall be binding
upon each Investor and the Company.  No such amendment shall be effective to the
extent  that  it  applies  to  fewer  than all of the holders of the Registrable
Securities.  No consideration shall be offered or paid to any Person to amend or
consent  to  a  waiver or modification of any provision of any of this Agreement
unless  the  same  consideration  also  is offered to all of the parties to this
Agreement.

     10.     MISCELLANEOUS.
             -------------

     (a)     A  Person  is  deemed  to  be  a  holder  of Registrable Securities
whenever  such  Person  owns  or  is  deemed  to  own of record such Registrable
Securities.  If  the  Company  receives  conflicting  instructions,  notices  or

                                      E-133
<PAGE>

elections  from  two  (2)  or  more Persons with respect to the same Registrable
Securities,  the  Company  shall  act  upon the basis of instructions, notice or
election  received  from  the  registered  owner of such Registrable Securities.

     (b)     Any  notices, consents, waivers or other communications required or
permitted  to  be given under the terms of this Agreement must be in writing and
will  be  deemed  to  have  been  delivered:  (i)  upon  receipt, when delivered
personally;  (ii) upon receipt, when sent by facsimile (provided confirmation of
transmission is mechanically or electronically generated and kept on file by the
sending  party);  or  (iii) one (1) business day after deposit with a nationally
recognized  overnight  delivery  service, in each case properly addressed to the
party  to  receive  the  same.  The  addresses  and  facsimile  numbers for such
communications  shall  be:
If  to  the  Company,  to:     NS8  Corporation
                               Two  Union  Square
                               601  Union  Street  -  Suite  2400
                               Seattle,  WA  98101
                               Attention:      Peter  Hogendoorn
                               Telephone:    (206)  652-3338
                               Facsimile:     (206)  652-3205

                               NS8  Corporation
                               200-1311  Howe  Street
                               Vancouver,  BC  Canada  V6Z  2P3
                               Telephone:  (604)  677-6994
                               Facsimile:   (604)  677-7011

With  a  copy  to:             Gottbetter  &  Partners,  LLP
                               488  Madison  Avenue
                               New  York,  NY  10016
                               Attention:    Adam  S.  Gottbetter,  Esq.
                               Telephone:  (212)  400-6900
                               Facsimile:   (212)  400-6901

If  to  an  Investor,  to  its  address  and facsimile number on the Schedule of
Investors attached hereto, with copies to such Investor's representatives as set
forth  on  the  Schedule  of Investors or to such other address and/or facsimile
number  and/or  to the attention of such other person as the recipient party has
specified by written notice given to each other party five (5) days prior to the
effectiveness  of such change.  Written confirmation of receipt (A) given by the
recipient  of  such  notice,  consent,  waiver  or  other  communication,  (B)
mechanically  or  electronically  generated  by  the  sender's facsimile machine
containing  the time, date, recipient facsimile number and an image of the first
page  of  such  transmission  or  (C) provided by a courier or overnight courier
service  shall  be rebuttable evidence of personal service, receipt by facsimile
or receipt from a nationally recognized overnight delivery service in accordance
with  clause  (i),  (ii)  or  (iii)  above,  respectively.

     (c)     Failure  of  any  party  to exercise any right or remedy under this
Agreement  or otherwise, or delay by a party in exercising such right or remedy,
shall  not  operate  as  a  waiver  thereof.

                                      E-134
<PAGE>

     (d)     The  laws  of  the  State  of  Delaware  shall  govern  all  issues
concerning  the  relative  rights  of  the  Company  and  the  Investors  as its
stockholders.  All  other  questions  concerning  the  construction,  validity,
enforcement  and  interpretation  of  this  Agreement  shall  be governed by the
internal laws of the State of New Jersey, without giving effect to any choice of
law  or conflict of law provision or rule (whether of the State of New Jersey or
any  other  jurisdiction)  that  would  cause the application of the laws of any
jurisdiction  other than the State of New Jersey.  Each party hereby irrevocably
submits to the non-exclusive jurisdiction of the Superior Courts of the State of
New  Jersey,  sitting  in  Hudson  County, New Jersey and federal courts for the
District  of  New Jersey sitting Newark, New Jersey, for the adjudication of any
dispute hereunder or in connection herewith or with any transaction contemplated
hereby  or  discussed  herein,  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,  that such suit, action or
proceeding  is  brought in an inconvenient forum or that the venue of such suit,
action or proceeding is improper.  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 to such party at the address for such
notices to it under this Agreement 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.  If any provision of this Agreement shall be invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not
affect the validity or enforceability of the remainder of this Agreement in that
jurisdiction  or  the  validity  or  enforceability  of  any  provision  of this
Agreement  in  any other jurisdiction.  EACH PARTY HEREBY IRREVOCABLY WAIVES ANY
RIGHT  IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION
OF  ANY  DISPUTE  HEREUNDER  OR  IN  CONNECTION  HEREWITH OR ARISING OUT OF THIS
AGREEMENT  OR  ANY  TRANSACTION  CONTEMPLATED  HEREBY.

     (e)     This  Agreement,  the  Irrevocable Transfer Agent Instructions, the
Securities  Purchase  Agreement  and related documents including the Convertible
Debenture  and  the  Escrow  Agreement  dated  the  date hereof by and among the
Company,  the  Investors set forth on the Schedule of Investors attached hereto,
and  Butler  Gonzalez  LLP  (the  "Escrow Agreement") and the Security Agreement
                                   ----------------
dated the date hereof (the "Security Agreement") constitute the entire agreement
                            ------------------
among  the parties hereto with respect to the subject matter hereof and thereof.
There  are  no  restrictions,  promises,  warranties or undertakings, other than
those  set  forth  or  referred  to  herein  and  therein.  This  Agreement, the
Irrevocable  Transfer  Agent Instructions, the Securities Purchase Agreement and
related  documents including the Convertible Debenture, the Escrow Agreement and
the  Security  Agreement supersede all prior agreements and understandings among
the  parties  hereto  with  respect  to  the  subject matter hereof and thereof.

     (f)     This  Agreement  shall  inure to the benefit of and be binding upon
the  permitted  successors  and  assigns  of  each  of  the  parties  hereto.

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

                                      E-135
<PAGE>

     (h)     This  Agreement  may be executed in identical counterparts, each of
which  shall be deemed an original but all of which shall constitute one and the
same  agreement.  This  Agreement, once executed by a party, may be delivered to
the  other  party  hereto  by facsimile transmission of a copy of this Agreement
bearing  the  signature  of  the  party  so  delivering  this  Agreement.

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

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

     (j)     This  Agreement  is  intended for the benefit of the parties hereto
and  their  respective  permitted  successors  and  assigns,  and is not for the
benefit  of,  nor  may  any  provision  hereof be enforced by, any other Person.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      E-136
<PAGE>

     IN  WITNESS  WHEREOF,  the  parties  have caused this Investor Registration
Rights  Agreement  to  be  duly executed as of day and year first above written.

                                                        COMPANY:
                                                        NS8  CORPORATION

                                                        By: /s/ Peter Hogendoorn
                                                             -------------------
                                                        Name:   Peter Hogendoorn
                                                        Title:  CEO

                                      E-137
<PAGE>EXHIBIT 10.21

                          STRATEGIC ALLIANCE AGREEMENT

THIS  AGREEMENT  is  made  as  of  the  19th  day  of  May,  2004.

BETWEEN:       NS8  CORPORATION,  a Delaware corporation, having its main office
               at  Two  Union Square, Suite 4200, Seattle, Washington 98101, USA

               (hereinafter  called  "NS8")

                                                               OF THE FIRST PART

AND:           BU-SOLUTIONS,  LLC,  a  Nevada  limited  liability company, doing
               business as BROADBAND UTILITY SOLUTIONS, having an office at 1200
               112th  Avenue  N.E., Suite C-115, Bellevue, Washington 98004, USA

               (hereinafter  called  "BUS")

                                                              OF THE SECOND PART

WHEREAS:

A.     NS8 is in the business of designing, programming, developing and managing
ecommerce  related  internet websites that provide online communication, product
distribution,  business to business and business to consumer market interaction,
proprietary  software  development,  licensing,  broadcasting,  data storage and
sales,  and  Internet  based  digital  on-demand  services  (hereinafter,  the
"BUSINESS").  NS8's  Business  includes but is not limited to the development of
proprietary  technology  that  allows  for high-speed delivery of encrypted data
over  standard  telephone  lines  allowing  for secure and rapid distribution of
digital  content (such as digitized video or voice) and actively seeks to obtain
the  rights  to  distribute  content  directly ("DIGITAL ON DEMAND BUSINESS") or
seeks  to  license its proprietary technology to other companies for the purpose
of  content  distribution  ("LICENSE  BUSINESS").

B.     BUS  is  engaged  in various enterprises, businesses and other commercial
activities  related  to  the  Business.

C.     NS8 wishes to establish a strategic alliance with BUS, for the purpose of
assisting  and  furthering  the  business interests of NS8 and BUS on an ongoing
basis,  and  BUS wish to establish a strategic alliance with NS8 for the purpose
of  assisting and furthering the business interests of BUS and NS8 on an ongoing
basis.

D.     NS8  and  BUS  have  mutually  agreed  to  enter into this agreement (the
"AGREEMENT")  for  the  purposes stated herein upon the terms and conditions set
forth  below.

NOW  THEREFORE in consideration of the mutual covenants, premises and conditions
herein  contained the parties hereto have agreed each with the other as follows:

1.     Establishment  of  Strategic  Alliance

                                      E-138
<PAGE>

NS8 and BUS hereby mutually agree to establish and maintain a strategic alliance
(hereinafter,  the  "ALLIANCE")  between  NS8,  on the one part, and BUS, on the
other  part,  for the purpose of assisting and furthering the business interests
of  the  other  party  on  an  ongoing  basis.

2.     Contribution

BUS  agrees  to  utilize  their  respective  credibility  and  influence  in the
technology,  telecommunications,  cable  broadcast, and entertainment industries
and  the  general  business  community  to  introduce  business  contacts and to
encourage  persons  and  entities  to  deal  with  NS8,  and  its  affiliates,
subsidiaries  and other divisions as contemplated by this Agreement and as would
be  appropriate  in  the  circumstances.  Without limiting the generality of the
foregoing,  this  would  include  promoting the Business, products, services and
initiatives  of  NS8,  its  affiliates,  subsidiaries  and divisions (all of the
foregoing  are  referred to herein as "CONTRIBUTIONS") including but not limited
to  the  following:

(a)     Procuring  License  Agreements  for  NS8  Technology

BUS  will exercise commercially reasonable efforts to procure License Agreements
with  companies  that  own or control content and are in need of a technology to
allow  for  rapid and efficient distribution of its content to the public.  When
BUS's  efforts to secure License Agreements result in the execution of a License
Agreement between NS8 and the prospective Licensee then BUS shall be compensated
in  accordance  with  Section I Paragraph 2 (a), of Schedule A to this Agreement
depending  on  BUS's  the level of involvement in the procurement of the License
Agreement  with  the  prospective  customer.

(b)     Sourcing  Content  for  NS8  Digital  On-Demand  Business

BUS will exercise commercially reasonable efforts to either source or source and
secure  for  sale  or  license  to  NS8,  program  content  that is suitable and
acceptable to NS8 (hereinafter, "CONTENT") for NS8's Digital On-Demand Business.
If  BUS  directly owns or holds the licensing rights to Content that permits the
Content  to  be  licensed  or  sub-licensed  to  NS8 for NS8's Digital On-Demand
Business,  then NS8 may in its sole discretion license the Content directly from
BUS  or  purchase it from BUS (if it is available for purchase), as the case may
be, on terms and conditions negotiated in good faith by the parties.  When BUS's
efforts  to  secure  Content  can  most  accurately  be  described  either  as
"Introductions"  or  "Deal  Involvement" as defined in Paragraph 5 (a), then BUS
will  be  compensated  in accordance with Section II Paragraph 2 (b) of Schedule
"A"  to  this  Agreement.

(c)     Securing  Subscribers  for  NS8  Digital  On-Demand  Business

BUS will exercise commercially reasonable efforts to secure subscriber customers
or entities with subscriber customers for NS8's Digital On-Demand Business.  For
each  subscriber  or entity contractually secured by BUS as a customer for NS8's
Digital  On-Demand  Business  (herein,  the  "SUBSCRIBER(S)"), BUS will receive,
during  the  Term, the percentage of NS8's cost of acquiring the Content ordered
by  each  Subscriber  that  BUS  has  secured  as  a  customer for NS8's Digital
On-Demand  Business ("NS8 CONTENT COST") as set forth in Section III Paragraph 2
(c)  of  Schedule  "A"  to  this  Agreement.

(d)     Exiting  Event  Transaction

If  the  efforts of BUS directly lead to a merger, acquisition, bulk asset sale,
block  stock sale (defined herein as five percent (5%) or more of the issued and

                                      E-139
<PAGE>

outstanding  shares  of  NS8),  divestiture  or  other similar transactions (the
"EXITING  EVENT  TRANSACTION")  then upon the completion and consummation of the
Exiting  Event  Transaction  NS8  will  pay  BUS  a  consulting fee equal to the
percentage  of  the value ("VALUE") of any such Exiting Event Transaction as set
forth in Section IV Paragraph 2 (d) of Schedule "A".  The Value will be mutually
determined  by  the  parties  or,  failing  agreement,  by  the Certified Public
Accountants  (hereinafter,  "CPA(s)") of the parties applying Generally Accepted
Accounting  Principles (hereinafter, "GAAP").  In the event of an Existing Event
Transaction  the  Agreement  and  Alliance  will,  at  the  option  of  NS8,  be
automatically  terminated and all compensation payable to BUS through the Period
of  Compensation  will  be  paid by NS8.  BUS specifically acknowledges that the
foregoing  provisions  regarding  the  activities  of  BUS and compensation with
respect  to  any  Exiting  Event  Transaction  are  subject to the provisions of
Regulations  13D,  13E,  and  14F  (the  "REGULATIONS")  promulgated  under  the
Securities  Exchange  Act  of  1934  (the  "ACT"),  as  amended.

3.     Excluded  Activities

Neither  BUS nor any director, officer or employee of BUS is intended to be, nor
shall  anyone  of  them  be  deemed to be, under any circumstances, an employee,
director,  senior  officer  or  consultant  of  NS8  or any of its affiliates or
subsidiaries  unless otherwise specifically agreed to in writing by BUS and NS8.

Neither  NS8 nor any director, officer or employee of NS8 is intended to be, nor
shall  anyone  of  them  be  deemed to be, under any circumstances, an employee,
director,  senior  officer  or  consultant  of  BUS  or any of its affiliates or
subsidiaries  unless otherwise specifically agreed to in writing by BUS and NS8.

4.     Nature  of  Relationship

The relationship between NS8 and BUS pursuant to this Agreement is not and shall
not  be  deemed  to  be one of partnership, employer and employee, principal and
agent,  representatives,  or  the  like.  The  relationship  is strictly that of
parties  involved  in  an  Alliance  for  their  mutual  benefit.

5.     Compensation,  Registering  Referrals  &  Accounting

(a)     Referral  Compensation  -  If  during  the  Term  of  the Agreement, BUS
initiates  and  introduces  a  business  opportunity  (hereinafter,  "BUSINESS
OPPORTUNITY")  to  NS8  that  directly  generates  a  commercial  transaction or
establishes a business relationship resulting in revenue for the Business of NS8
(hereinafter,  "REFERRAL  BUSINESS"),  then  during  the  five  year  period
(hereinafter  the  "PERIOD  OF  COMPENSATION")  following BUS's first receipt of
revenue  from that Referral Business, BUS will receive a percentage share of the
gross  revenue  (hereinafter  the  "GROSS  REVENUE")  derived from that Referral
Business  and actually received by NS8 (hereinafter the "REFERRAL COMPENSATION")
as  set  forth in Schedule "A" to this Agreement.  It is acknowledged and agreed
that  the  extent  and  nature  of  BUS's  involvement  in  the  generation  and
consummation  of  the  Business  Opportunity and the Referral Business will vary
from:

     (i) a mere introduction on the part of BUS to NS8 of key contact persons of
the qualified prospects of the Business Opportunity (herein, "INTRODUCTION(S))";

     (ii)  the  expenditure of considerable effort, time and resources by BUS to
develop  the  Business  Opportunity  for  the  benefit  of  NS8  (herein,  "DEAL
INVOLVEMENT");

(iii)  the  expenditure  of  considerable  effort,  time and resources by BUS to
develop  the  Business  Opportunity  to  include  contributing  to  bringing the
transaction  to  closing  (herein,  "QUALIFIED  RESOURCE  INVOLVEMENT").

The amount of Referral Compensation payable to BUS will vary accordingly, as set
forth  in  Section  I  of Schedule "A".  For the purposes of this Agreement, the

                                      E-140
<PAGE>

terms Business Opportunity and Referral Business do not include an Exiting Event
Transaction  as  defined  in  Paragraph  2  (d)  of  this  Agreement.

(b)     In order for BUS to become entitled to receive any Referral Compensation
with  respect  to  a  Business  Opportunity, it must provide NS8 advance written
notice  of  the  particulars  of  the  party  being  referred  to  NS8 including
background  and  contact  information.  The  initial  list of BUS's contacts and
business  opportunities  is  set  forth  on  Schedule  "B"  attached  hereto and
incorporated  herein  by this reference. As BUS provides new potential business,
it  will augment Schedule "B" accordingly, and submit same to NS8 for its review
and  maintenance.  In  addition,  during the Term, BUS must provide NS8 at least
once  a month with written progress reports regarding the status of the Business
Opportunities,  Referral  Business and Contributions with respect to which it is
or  will  be  claiming  Referral  Compensation or any other kind of compensation
including,  without  limitation,  the name of the party or parties who have been
contacted  by  BUS, all relevant contact information (addresses, telephone, fax,
email numbers, etc.) and such other information necessary to fully inform NS8 of
the  status  and  progress  of  the  matter.

(c)     BUS  acknowledges  that  some  of  the  parties  (contacts  and business
opportunities  that it will refer to NS8 and list in Schedule "B" might be large
corporations  or organizations that have a great number of affiliates, divisions
or  personnel  with  diverse  management  and  business  activities  (the "LARGE
ENTITIES")  that  NS8  might  have  access to through its own efforts or through
other  contacts  or  resources of NS8 (collectively "NS8 RESOURCES"). Therefore,
BUS  agrees  that  BUS  will not have any right to receive Referral Compensation
with  respect to any contact or business opportunity of NS8 that is derived from
or attributable to NS8 Resources that NS8 might access with respect to any Large
Entity  that  is  listed  in  Schedule  "B"  but  that is not related to any BUS
Business  Opportunities  listed  in Schedule "B",, from time to time, other than
with  respect  to specific Business Opportunities and Referral Business directly
or  indirectly  attributable  to  the  efforts  of BUS.  If NS8 is negotiating a
transaction with a division of a Large Entity listed in Schedule "B" that is not
directly  or indirectly attributable to the efforts of BUS, then NS8 will notify
BUS  of  the  identity  of  the unrelated division and the general nature of the
business  purpose  and  objectives  of  such  negotiations.  BUS  agrees  not to
interfere  with  NS8's  negotiations  or  transactions  with  any such unrelated
division  Large  Entity.

(d)     During  the Term and the Compensation Period, NS8 will maintain a record
and accounting of all Business Opportunities brought to NS8 by BUS, all Referral
Business  attributed  thereto,  and  a  calculation of all Referral Compensation
owing  by  NS8  in respect thereof.  NS8 will provide the Referring Party will a
summary  of  the  particulars of such record and accounting within 30 days after
the  end  of each month of the Term of the Agreement and during the Compensation
Period;  Provided  that  if  there  is  no  Referral  Business, Gross Revenue or
Compensation  owing during a particular month then no written accounting need be
provided  to  BUS  in  respect  thereof.

6.     NS8  Not  Obliged  to  Accept  Transaction

Notwithstanding  anything  herein  to  the  contrary,  NS8 will not be obligated
hereunder  to  consummate  any  proposed transaction or contract (hereinafter, a
"Transaction"), and NS8 may determine in its sole discretion which Transactions,
if  any,  are  in  its  best interests.  If NS8 fails to accept the terms of any
proposed  Transaction  directly or indirectly introduced or arranged by BUS then
NS8  will  not  be  obligated  to  pay  BUS any compensation or reimbursement of
expenses  whatsoever  in respect of any such Transaction.  However, in the event
that  NS8,  at a later date, completes a Transaction, then BUS will earn and NS8
shall  be  obligated  to pay BUS its appropriate compensation in accordance with
the  terms  of  this  Agreement.

                                      E-141
<PAGE>

7.     Expenses

Each  party to this Agreement will be responsible for paying its own expenses in
respect of the Alliance and the matters and transactions that are the subject of
this  Agreement  unless  NS8  expressly  agrees in writing to pay any particular
expense  of  BUS.

8.     Commissions,  Fees  and  Expenses  Owing  by  BUS  to  Third  Parties

In respect of the Alliance and the matters and transactions that are the subject
of  or  contemplated  by this Agreement, NS8 will not be responsible for or have
any  obligation  to pay any commissions, fees or expenses owing or attributed to
any  third  party  unless  NS8 expressly agrees in writing to pay any particular
commission,  fee  or  expense  of  a  third  party.

9.     Agreement  Not  Exclusive  To  Either  Party

BUS  and  NS8  mutually  acknowledge  and  agree  that  the rights, obligations,
matters,  and  Transactions  contemplated by this Agreement and the Alliance are
not  exclusive  to  BUS or NS8 either in any territory or for any period of time
(whether  within the Term or any extensions thereof), and BUS agrees that NS8 is
free at any time, without any notice or compensation to BUS whatsoever, to enter
into  any  agreements  or  arrangements  with any third party or parties that it
might  choose  for  the  purpose  of directly or indirectly pursuing business or
financial  opportunities  of  any  nature or kind whatsoever, including (without
limitation)  any  Referral  Business,  Transactions or Business Opportunities or
regarding  any  other matters, whether or not contemplated herein and similarly,
..NS8  agrees that BUS is free at any time, without any notice or compensation to
NS8  whatsoever,  to  enter  into  any agreements or arrangements with any third
party  or parties that it might choose for the purpose of directly or indirectly
pursuing  business  or financial opportunities of any nature or kind whatsoever.

10.     Term  of  Engagement

The  initial  term (the "TERM") of this Alliance and the Agreement will continue
for  a  period of sixty (60) months commencing on the date of this Agreement and
unless  terminated  earlier  by  either of the parties hereto giving ninety (90)
days  advance  written  notice of its intention to terminate to the other party.
Upon  the  expiration  of the initial sixty (60) month Term, this Agreement (the
"RENEWAL  AGREEMENT")  and  this  Alliance will be renewed for a further Term of
sixty  (60)  months commencing on the last day of the initial Term (the "RENEWAL
TERM"),  provided, however, that the terms and conditions of the Renewal Term of
this Agreement and this Alliance will be renegotiated in good faith and mutually
agreed  to by the parties hereto prior to the end of the initial Term.  Upon the
termination  of  the  initial  Term  and  the  Renewal  Term,  the terms of this
Agreement  set  out  in  the provisions in this Agreement regarding confidential
information  and  documents  (Paragraph 15 (c)), non-competition, and payment of
Compensation  during  the  Compensation  Period regarding Referral Business that
existed  before  the  date of termination, shall survive the termination of this
Agreement  and  the  Alliance.

11.     Demo  Access  Site

NS8  will provide BUS with access to a secure, Web-based demo site to enable BUS
to  present  demonstrations  of  NS8  Video  On-Demand  (VOD)  capabilities  to
prospective licensees, content providers, On-Demand Business Subscribers of NS8,
or  to  other  prospective  Business  Opportunities  (the "DEMO"). Access to the
NS8-provided  Demo  site  will  be  at  the discretion of BUS.  Accordingly, BUS
agrees  that  any  party  to  whom BUS intends to present a Demo of the NS8 Demo
site  must  execute  the  NS8  "Mutual  Confidentiality  and  Non-Circumvention
Agreement"  (the "NDA") and that BUS will deliver the executed NDA to NS8 before
allowing  any  such  third  parties  any  access  to  the  Demo  site.

                                      E-142
<PAGE>

12.     Further  Acts  and  Agreements

Each  of the parties hereto agrees to perform such further acts and execute such
other  agreements  and  documents  as  might  be  reasonably  necessary to fully
implement  the  intent  and  purpose  of  this  Agreement.

13.     Severability

If  any  provision or part of this Agreement is declared to be void or otherwise
invalid  by a court of competent jurisdiction, the remaining provisions or parts
of  this  Agreement  will  remain  in  full  force and effect.  The parties with
endeavor  to  redraft  any  provisions or parts of this Agreement declared to be
void  or invalid to the extent possible and necessary to effectively incorporate
the  intent  and  purpose  of  the  void  or invalid provisions or parts of this
Agreement.

14.     Entire  Agreement

This  Agreement constitutes the entire agreement between the parties hereto with
respect  to  the  Alliance,  the  performance by BUS of their Contributions, and
their  respective  Compensation  for  performing  the  duties and obligations as
contemplated  by  the  parties hereto. Any other previous agreements, written or
oral,  express  or  implied, between the parties or on their behalf, relating to
these  matters  are  terminated  and  cancelled  unless  the parties hereto have
expressly  confirmed  in  writing  that  any  such  agreements will survive this
Agreement or as contemplated herein.  Each party releases and forever discharges
the  other  of  and  from  all  manner  of actions, causes of action, claims and
demands  whatsoever,  under  or  in  respect  of  any  prior  agreement.

15.     Confidentiality  and  Non-circumvention

(a)     BUS  and  NS8  mutually  understand  and  agree  that any information or
documentation  provided  by  or on behalf of one party to the other party or its
agents,  representatives  or  partners  that  is  designated  or  identified  as
confidential  and  not  in  the  public  domain  (hereinafter, the "CONFIDENTIAL
INFORMATION"  or  the  "CONFIDENTIAL  DOCUMENTS",  as  the  case  may  be)  is
confidential  and privileged and the confidentiality thereof must be maintained.
Any  information or documentation provided by one party to the other must not be
duplicated  in any manner or medium or presented or submitted to any party other
than  the  intended  direct  recipients  of  documents  and  information  as are
expressly  permitted  by  delivering  party  for  the purpose of the other party
performing  its agreed function under this Agreement. BUS understands and agrees
that  if  it  intends  to  submit  or  provide  Confidential  Documents or other
Confidential  Information  including  any  offering  circular,  memorandum,
prospectus,  business  plan,  proprietary  information  or  other  intellectual
property  of  NS8  (including  that  of  its  affiliates or subsidiaries) to any
prospective  investor,  customer,  business  contact  or  other  person,  then a
confidentiality  and  non-circumvention  agreement in the form used by NS8, from
time to time (the "CONFIDENTIALITY AND NON-CIRCUMVENTION AGREEMENT"), must first
be  executed  by  the  intended  recipient  of  the  Confidential  Documents  or
Confidential  Information and registered with NS8.  Once BUS notifies NS8 of its
desire  to circulate Confidential Documents or exchange Confidential Information
in such circumstances, NS8 will directly arrange for the preparation and signing
of  a  Confidentiality  and  Non-circumvention  Agreement  by  the  prospective
investor,  customer, business contact or other party and will notify BUS, as the
case  may  be, when the Confidentiality and Non-circumvention Agreement has been
duly  executed by the parties thereto.  In a like manner, at the request of BUS,
NS8  will  arrange  for  authorized  recipients of the Confidential Documents or
Confidential  Information  of  BUS  to  execute  BUS's  form  of  Non-Disclosure

                                      E-143
<PAGE>

Agreement  ("NDA")  and register the NDA's. with BUS.  BUS will provide NS8 with
BUS's form of NDA. Any prospective investor, customer, business contact or other
person  not  participating  in the financing of NS8's business or concluding any
other agreement with NS8 or BUS must return all Confidential Documents to NS8 or
to  BUS  as  the  case  may  be.

(b)     In  addition, BUS agrees to maintain all trade secrets of NS8 and agrees
to  not  directly  or  indirectly  circumvent  or attempt to circumvent NS8, its
affiliates  and  subsidiaries.  Accordingly,  the parties hereto agree that they
will enter into a form of mutual confidentiality and non-circumvention agreement
that will govern the exchange and use of their respective confidential documents
and  confidential  information  by  the  other  party  and  also  contain
non-circumvention  covenants.

(c)     If  a  prospective  investor, customer, business contact or other person
that BUS wishes to introduce to NS8 wishes to protect the confidentiality of its
confidential  documents  or  confidential  information in its dealings with NS8,
then  NS8  will  enter  into  a  mutual  confidentiality  and  non-circumvention
agreement  with  such  other  party  in the form used by NS8, from time to time.

16.     Construing  Agreement

This  Agreement  shall  not  be  construed more stringently against the drafting
party  since  all  parties  and  their  respective  counsel  contributed  to the
negotiation  and drafting of this Agreement and each party has had the advice of
separate  and  independent  legal  counsel  in  the  review and drafting of this
Agreement.  If  any  litigation arises from this Agreement, the prevailing party
may  recover  reasonable  attorney's  fees  and  costs.

17.     Resolution  of  Disputes

(a)     Except  for the right of the parties to seek injunctive relief in court,
any  controversy,  claim  or  dispute  of any type arising out of or relating to
Alliance  or  the  provisions  of this Agreement shall be resolved in accordance
with this Paragraph regarding resolution of disputes, which will be the sole and
exclusive procedure for the resolution of any disputes.  This Agreement shall be
enforced  in  accordance  with  the  Federal  Arbitration  Act,  the enforcement
provisions  of  which  are  incorporated  by this reference.  Matters subject to
these  provisions  include,  without  limitation,  claims  or  disputes based on
statute,  contract,  common  law and tort and will include, for example, matters
pertaining  to  termination,  compensation  and  protection  of confidential and
intellectual  property.

(b)     The  parties to this Agreement will make a good faith attempt to resolve
any  and  all  claims  and  disputes by submitting them to mediation in Seattle,
Washington,  before  resorting  to  binding  arbitration  or  any  other dispute
resolution procedure. The mediation of any claim or dispute must be conducted in
accordance  with the then-current JAMS procedures for the resolution of disputes
by  mediation,  by  a  mediator  who  has  had both training and experience as a
mediator of general commercial matters.  If the parties to this Agreement cannot
agree  on  a  mediator, then the mediator will be selected by JAMS in accordance
with  JAMS'  strike list method.  Within thirty (30) days after the selection of
the  mediator,  NS8  and  BUS  and their respective attorneys will meet with the
mediator  for  one  mediation  session  of at least four hours.  If the claim or
dispute  cannot  be  settled  during  such  mediation session or mutually agreed
continuation  of  the  session,  either NS8 or BUS may give the mediator and the
other  party  to  the  claim  or dispute written notice declaring the end of the
mediation process.  All discussions connected with this mediation provision will
be  confidential  and  treated as compromise and settlement discussions. Nothing

                                      E-144
<PAGE>

disclosed  in  such discussions, which is not independently discoverable, may be
used  for any purpose in any later proceeding.  The mediator's fees will be paid
in  equal  portions  by  NS8  and  BUS.

(c)     If  any  claim  or  dispute  has  not  been  resolved in accordance with
sub-paragraph  (b)  of  this  Paragraph,  then  the  claim  or  dispute  will be
determined  by  binding  arbitration  in  accordance  with the then-current JAMS
arbitration  rules  and  procedures,  except  as  modified  herein.  The binding
arbitration  will  be  conducted  by  a sole neutral arbitrator who has had both
training  and  experience as an arbitrator of general commercial matters and who
is  and  for  at  least  ten (10) years has been, a partner, a shareholder, or a
member  in  a  law firm.  If NS8 and BUS cannot agree on an arbitrator, then the
arbitrator  will  be  selected  by  JAMS  in accordance with Rule 12 of the JAMS
arbitration  rules and procedures.  No person who has served as a mediator under
the mediation provision, however, may be selected as the arbitrator for the same
claim or dispute.  Reasonable discovery will be permitted and the arbitrator may
decide  any  issue  as  to discovery.  The arbitrator may decide any issue as to
whether  or  as  to  the  extent  to which any dispute is subject to the dispute
resolution  provisions in this Paragraph and the arbitrator may award any relief
permitted by law.  The arbitrator must base the binding arbitration award on the
provisions  of  this  Paragraph  and applicable law and must render the award in
writing,  including  an explanation of the reasons for the award.  Judgment upon
the award may be entered by any court having jurisdiction of the matter, and the
decision of the arbitrator will be final and binding. The statute of limitations
applicable  to  the  commencement of a lawsuit will apply to the commencement of
binding arbitration under this sub-paragraph (c).  The arbitrator's fees will be
paid  in  equal  portions  by  NS8  and  BUS.

18.     Modification  of  Agreement

Any  modification to this Agreement must be in writing and signed by the parties
hereto  or  it  will  have  no  effect  and  will  be  void.

19.     Headings

The  headings  used in this Agreement are for convenience only and are not to be
construed  in  any  way  as  additions  to  or  limitations of the covenants and
agreements  contained  herein.

20.     Governing  Law

This Agreement shall be governed by and construed in accordance with the laws of
the  State  of  Delaware  applicable  to  contracts  executed  and  to be wholly
performed  therein  without giving effect to its conflicts of laws principles or
rules.

21.     This  Agreement  may  be  executed in counterpart copies and the fact of
execution  transmitted  to  the  other  party  via  telecopy  (facsimile).

22.     Use  of  Grammar

In  this  Agreement words importing the masculine gender include the feminine or
neuter  gender  and  words  importing  the  singular include the plural and vice
versa.

                                      E-145
<PAGE>

IN  WITNESS WHEREOF this Agreement has been executed by the parties hereto as of
the  date  first  written  above.

                    THE REMAINDER OF THIS PAGE IS LEFT BLANK

              THE NEXT PAGE IS THE EXECUTION PAGE OF THIS AGREEMENT

                                      E-146
<PAGE>

DULY  EXECUTED  BY  NS8  CORPORATION,)
in  the  presence  of  its  duly  Authorized )
Signatories  in  that  behalf:               )
                                             )
                                             )
Per:  /s/  Thomas  J.  Routt                 )               SEAL
      ----------------------                 )
                                             )
                                             )

DULY  EXECUTED  BY  BU  -  SOLUTIONS,  LLC   )
D/B/A/  BROADBAND  UTILITY  SOLUTIONS)
in  the  presence  of  its  duly  Authorized )
Signatories  in  that  behalf:               )
                                             )
                                             )
Per:  /s/  John  Craig                       )               SEAL
      ----------------                       )
      Authorized  Signatory                  )
                                             )

Per:  _____________________________          )
      Authorized  Signatory                  )

                                      E-147
<PAGE>

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