Document:

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EXHIBIT 4.5

                          REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement (this "Agreement") is made and entered
into as of June 15, 2005, by and between Island Pacific, Inc., a Delaware
corporation (the "Company"), and Laurus Master Fund, Ltd. (the "Purchaser").

     This Agreement is made pursuant to the Securities Purchase Agreement, dated
as of the date hereof, by and between the Purchaser and the Company (the
"Securities Purchase Agreement"), and pursuant to the Note, the Warrants and the
Option referred to therein.

     The Company and the Purchaser hereby agree as follows:

     1. Definitions. Capitalized terms used and not otherwise defined herein
that are defined in the Securities Purchase Agreement shall have the meanings
given such terms in the Securities Purchase Agreement. As used in this
Agreement, the following terms shall have the following meanings:

     "COMMISSION" means the Securities and Exchange Commission.

     "COMMON STOCK" means shares of the Company's common stock, par value
$0.0001 per share.

     "EFFECTIVENESS DATE" means (i) with respect to the initial Registration
Statement required to be filed hereunder, a date no later than one hundred
thirty five (135) days following the date hereof and (ii) with respect to each
additional Registration Statement required to be filed hereunder, a date no
later than thirty (30) days following the applicable Filing Date.

     "EFFECTIVENESS PERIOD" shall have the meaning set forth in Section 2(a).

     "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended, and
any successor statute.

     "FILING DATE" means, with respect to (i) the Registration Statement
required to be filed hereunder in respect of the shares of Common Stock issuable
upon conversion of the Note, the exercise of the Warrants and the exercise of
the Option, a date no later than August 15, 2005 and (ii) with respect to
shares of Common Stock issuable to the Holder as a result of adjustments to the
Fixed Conversion Price made pursuant to Section 3.4 of the Secured Convertible
Term Note, Section 4 of the Warrant or Section 4 of the Option or otherwise,
thirty (30) days after the occurrence of such event or the date of the
adjustment of the Fixed Conversion Price.

     "HOLDER" or "HOLDERS" means the Purchaser or any of its affiliates or
transferees to the extent any of them hold 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).

     "NOTE" has the meaning set forth in the Securities Purchase Agreement.

     "OPTION" means the option issued pursuant to the Securities Purchase
Agreement.

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     "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 the 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 the
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 the shares of Common Stock issued upon the
conversion of the Note, issuable upon exercise of the Warrants and issuable upon
exercise of the Option.

     "REGISTRATION STATEMENT" means each registration statement required to be
filed hereunder, including 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 144" means Rule 144 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 effect as such Rule.

     "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 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 effect as such Rule.

     "SECURITIES ACT" means the Securities Act of 1933, as amended, and any
successor statute.

     "SECURITIES PURCHASE AGREEMENT" means the agreement between the parties
hereto calling for the issuance by the Company of $3,200,000 convertible Note
plus the Warrants and the Option.

     "TRADING MARKET" means any of the NASD OTC Bulletin Board, NASDAQ SmallCap
Market, the Nasdaq National Market, the American Stock Exchange or the New York
Stock Exchange.

     "WARRANTS" means the Common Stock purchase warrants issued pursuant to the
Securities Purchase Agreement.

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     2. Registration.

          (a) On or prior to the Filing Date the Company shall prepare and file
with the Commission a Registration Statement covering the Registrable Securities
for an offering to be made on a continuous basis pursuant to Rule 415. The
Registration Statement shall be on Form S-3 (except if the Company is not then
eligible to register for resale the Registrable Securities on Form S-3, in which
case such registration shall be on another appropriate form in accordance
herewith). The Company shall cause the Registration Statement to become
effective and remain effective as provided herein. 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 no later than the Effectiveness Date. The Company shall use its reasonable
commercial efforts to keep the Registration Statement continuously effective
under the Securities Act until the date which is the earlier date of when (i)
all Registrable Securities have been sold or (ii) all Registrable Securities may
be sold immediately without registration under the Securities Act and 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").

          (b) If: (i) the Registration Statement is not filed on or prior to the
Filing Date; (ii) the Registration Statement is not declared effective by the
Commission by the Effectiveness Date; (iii) after the Registration Statement is
filed with and declared effective by the Commission, the Registration Statement
ceases to be effective (by suspension or otherwise) as to all Registrable
Securities to which it is required to relate at any time prior to the expiration
of the Effectiveness Period (without being succeeded immediately by an
additional registration statement filed and declared effective) for a period of
time which shall exceed 30 days in the aggregate per year or more than 20
consecutive calendar days (defined as a period of 365 days commencing on the
date the Registration Statement is declared effective); or (iv) the Common Stock
is not listed or quoted, or is suspended from trading on any Trading Market for
a period of three (3) consecutive Trading Days (provided the Company shall not
have been able to cure such trading suspension within 30 days of the notice
thereof or list the Common Stock on another Trading Market); (any such failure
or breach being referred to as an "Event," and for purposes of clause (i) or
(ii) the date on which such Event occurs, or for purposes of clause (iii) the
date which such 30 day or 20 consecutive day period (as the case may be) is
exceeded, or for purposes of clause (iv) the date on which such three (3)
Trading Day period is exceeded, being referred to as "Event Date"), then until
the applicable Event is cured, the Company shall pay to each Holder an amount in
cash, as liquidated damages and not as a penalty, equal to 2.0% for each thirty
(30) day period (prorated for partial periods) on a daily basis of the original
principal amount of the Note. While such Event continues, such liquidated
damages shall be paid not less often than each thirty (30) days. Any unpaid
liquidated damages as of the date when an Event has been cured by the Company
shall be paid within three (3) days following the date on which such Event has
been cured by the Company.

         (c) Within three business days of the Effectiveness Date, the Company
shall cause its counsel to issue a blanket opinion in the form attached hereto
as Exhibit A, to the transfer agent stating that the shares are subject to an
effective registration statement and can be reissued free of restrictive legend
upon notice of a sale by Purchaser and confirmation by Purchaser that it has
complied with the prospectus delivery requirements, provided that the Company
has not advised the transfer agent orally or in writing that the opinion has
been withdrawn. Copies of the blanket opinion required by this Section 2(c)
shall be delivered to Purchaser within the time frame set forth above.

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     3. Registration Procedures. If and whenever the Company is required by the
provisions hereof to effect the registration of any Registrable Securities under
the Securities Act, the Company will, as expeditiously as possible:

          (a) prepare and file with the Commission the Registration Statement
with respect to such Registrable Securities, respond as promptly as possible to
any comments received from the Commission, and use its best efforts to cause the
Registration Statement to become and remain effective for the Effectiveness
Period with respect thereto, and promptly provide to the Purchaser copies of all
filings and Commission letters of comment relating thereto;

          (b) prepare and file with the Commission such amendments and
supplements to the Registration Statement and the Prospectus used in connection
therewith as may be necessary to comply with the provisions of the Securities
Act with respect to the disposition of all Registrable Securities covered by the
Registration Statement and to keep such Registration Statement effective until
the expiration of the Effectiveness Period;

          (c) furnish to the Purchaser such number of copies of the Registration
Statement and the Prospectus included therein (including each preliminary
Prospectus) as the Purchaser reasonably may request to facilitate the public
sale or disposition of the Registrable Securities covered by the Registration
Statement;

          (d) use its commercially reasonable efforts to register or qualify the
Purchaser's Registrable Securities covered by the Registration Statement under
the securities or "blue sky" laws of such jurisdictions within the United States
as the Purchaser may reasonably request, provided, however, that the Company
shall not for any such purpose be required to qualify generally to transact
business as a foreign corporation in any jurisdiction where it is not so
qualified or to consent to general service of process in any such jurisdiction;

          (e) list the Registrable Securities covered by the Registration
Statement with any securities exchange on which the Common Stock of the Company
is then listed;

          (f) immediately notify the Purchaser at any time when a Prospectus
relating thereto is required to be delivered under the Securities Act, of the
happening of any event of which the Company has knowledge as a result of which
the Prospectus contained in such Registration Statement, as then in effect,
includes an untrue statement of a material fact or omits to state a material
fact required to be stated therein or necessary to make the statements therein
not misleading in light of the circumstances then existing; and

          (g) make available for inspection by the Purchaser and any attorney,
accountant or other agent retained by the Purchaser, all publicly available,
non-confidential financial and other records, pertinent corporate documents and
properties of the Company, and cause the Company's officers, directors and
employees to supply all publicly available, non-confidential information
reasonably requested by the attorney, accountant or agent of the Purchaser.

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     4. Registration Expenses. All expenses relating to the Company's compliance
with Sections 2 and 3 hereof, including, without limitation, all registration
and filing fees, printing expenses, fees and disbursements of counsel and
independent public accountants for the Company, fees and expenses (including
reasonable counsel fees) incurred in connection with complying with state
securities or "blue sky" laws, fees of the NASD, transfer taxes, fees of
transfer agents and registrars, fees of, and disbursements incurred by, one
counsel for the Holders (to the extent such counsel is required due to Company's
failure to meet any of its obligations hereunder), are called "Registration
Expenses". All selling commissions applicable to the sale of Registrable
Securities, including any fees and disbursements of any special counsel to the
Holders beyond those included in Registration Expenses, are called "Selling
Expenses." The Company shall only be responsible for all Registration Expenses.

     5. Indemnification.

          (a) In the event of a registration of any Registrable Securities under
the Securities Act pursuant to this Agreement, the Company will indemnify and
hold harmless the Purchaser, and its officers, directors and each other person,
if any, who controls the Purchaser within the meaning of the Securities Act,
against any losses, claims, damages or liabilities, joint or several, to which
the Purchaser, or such persons may become subject under the Securities Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon any untrue statement or alleged
untrue statement of any material fact contained in any Registration Statement
under which such Registrable Securities were registered under the Securities Act
pursuant to this Agreement, any preliminary Prospectus or final Prospectus
contained therein, or any amendment or supplement thereof, or arise out of or
are based upon the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, and will reimburse the Purchaser, and each such person for any
reasonable legal or other expenses reasonably incurred by them in connection
with investigating or defending any such loss, claim, damage, liability or
action; provided, however, that the Company will not be liable in any such case
if and to the extent that any such loss, claim, damage or liability arises out
of or is based upon an untrue statement or alleged untrue statement or omission
or alleged omission so made in conformity with information furnished by or on
behalf of the Purchaser or any such person specifically for use in any such
document.

          (b) In the event of a registration of the Registrable Securities under
the Securities Act pursuant to this Agreement, the Purchaser will indemnify and
hold harmless the Company, and its officers, directors and each other person, if
any, who controls the Company within the meaning of the Securities Act, against
all losses, claims, damages or liabilities, joint or several, to which the
Company or such persons may become subject under the Securities Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon any untrue statement or alleged
untrue statement of any material fact which was furnished in writing by the
Purchaser to the Company expressly for use in (and such information is contained
in) the Registration Statement under which such Registrable Securities were
registered under the Securities Act pursuant to this Agreement, any preliminary
Prospectus or final Prospectus contained therein, or any amendment or supplement
thereof, or arise out of or are based upon the omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, and will reimburse the Company and each
such person for any reasonable legal or other expenses incurred by them in
connection with investigating or defending any such loss, claim, damage,
liability or action, provided, however, that the Purchaser will be liable in any
such case if and only to the extent that any such loss, claim, damage or
liability arises out of or is based upon an untrue statement or alleged untrue
statement or omission or alleged omission so made in conformity with information
furnished in writing to the Company by or on behalf of the Purchaser
specifically for use in any such document. Notwithstanding the provisions of
this paragraph, the Purchaser shall not be required to indemnify any person or
entity in excess of the amount of the aggregate gross proceeds received by the
Purchaser in respect of Registrable Securities in connection with any such
registration under the Securities Act.

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          (c) Promptly after receipt by a party entitled to claim
indemnification hereunder (an "Indemnified Party") of notice of the commencement
of any action, such Indemnified Party shall, if a claim for indemnification in
respect thereof is to be made against a party hereto obligated to indemnify such
Indemnified Party (an "Indemnifying Party"), notify the Indemnifying Party in
writing thereof, but the omission so to notify the Indemnifying Party shall not
relieve it from any liability which it may have to such Indemnified Party other
than under this Section 5(c) and shall only relieve it from any liability which
it may have to such Indemnified Party under this Section 5(c) if and to the
extent the Indemnifying Party is prejudiced by such omission. In case any such
action shall be brought against any Indemnified Party and it shall notify the
Indemnifying Party of the commencement thereof, the Indemnifying Party shall be
entitled to participate in and, to the extent it shall wish, to assume and
undertake the defense thereof with counsel satisfactory to such Indemnified
Party, and, after notice from the Indemnifying Party to such Indemnified Party
of its election so to assume and undertake the defense thereof, the Indemnifying
Party shall not be liable to such Indemnified Party under this Section 5(c) for
any legal expenses subsequently incurred by such Indemnified Party in connection
with the defense thereof; if the Indemnified Party retains its own counsel, then
the Indemnified Party shall pay all fees, costs and expenses of such counsel,
provided, however, that, if the defendants in any such action include both the
indemnified party and the Indemnifying Party and the Indemnified Party shall
have reasonably concluded that there may be reasonable defenses available to it
which are different from or additional to those available to the Indemnifying
Party or if the interests of the Indemnified Party reasonably may be deemed to
conflict with the interests of the Indemnifying Party, the Indemnified Party
shall have the right to select one separate counsel and to assume such legal
defenses and otherwise to participate in the defense of such action, with the
reasonable expenses and fees of such separate counsel and other expenses related
to such participation to be reimbursed by the Indemnifying Party as incurred.

          (d) In order to provide for just and equitable contribution in the
event of joint liability under the Securities Act in any case in which either
(i) the Purchaser, or any officer, director or controlling person of the
Purchaser, makes a claim for indemnification pursuant to this Section 5 but it
is judicially determined (by the entry of a final judgment or decree by a court
of competent jurisdiction and the expiration of time to appeal or the denial of
the last right of appeal) that such indemnification may not be enforced in such
case notwithstanding the fact that this Section 5 provides for indemnification
in such case, or (ii) contribution under the Securities Act may be required on
the part of the Purchaser or such officer, director or controlling person of the
Purchaser in circumstances for which indemnification is provided under this
Section 5; then, and in each such case, the Company and the Purchaser will
contribute to the aggregate losses, claims, damages or liabilities to which they
may be subject (after contribution from others) in such proportion so that the
Purchaser is responsible only for the portion represented by the percentage that
the public offering price of its securities offered by the Registration
Statement bears to the public offering price of all securities offered by such
Registration Statement, provided, however, that, in any such case, (A) the
Purchaser will not be required to contribute any amount in excess of the public
offering price of all such securities offered by it pursuant to such
Registration Statement; and (B) no person or entity guilty of fraudulent
misrepresentation (within the meaning of Section 10(f) of the Act) will be
entitled to contribution from any person or entity who was not guilty of such
fraudulent misrepresentation.

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     6. Representations and Warranties.

          (a) The Common Stock of the Company is registered pursuant to Section
12(b) or 12(g) of the Exchange Act and, except with respect to certain matters
which the Company has disclosed to the Purchaser on Schedule 4.21 to the
Securities Purchase Agreement, the Company has timely filed all proxy
statements, reports, schedules, forms, statements and other documents required
to be filed by it under the Exchange Act. The Company has filed (i) its Annual
Report on Form 10-K for its fiscal year ended March 31, 2004 and (ii) its
Quarterly Report on Form 10-Q for the fiscal quarters ended June 30, 2004,
September 30, 2004 and December 31, 2004 (collectively, the "SEC Reports"). Each
SEC Report was, at the time of its filing, in substantial compliance with the
requirements of its respective form and none of the SEC Reports, nor the
financial statements (and the notes thereto) included in the SEC Reports, as of
their respective filing dates, contained any untrue statement of a material fact
or omitted to state a material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which they
were made, not misleading. The financial statements of the Company included in
the SEC Reports have been prepared in accordance with generally accepted
accounting principles ("GAAP") applied on a consistent basis during the periods
involved (except (i) as may be otherwise indicated in such financial statements
or the notes thereto or (ii) in the case of unaudited interim statements, to the
extent they may not include footnotes or may be condensed) and fairly present in
all material respects the financial condition, the results of operations and the
cash flows of the Company and its subsidiaries, on a consolidated basis, as of,
and for, the periods presented in each such SEC Report.

          (b) The Common Stock is listed for trading on the AMEX Market and
satisfies all requirements for the continuation of such listing. The Company has
not received any notice that its Common Stock will be delisted from the AMEX
Market (except for prior notices which have been fully remedied) or that the
Common Stock does not meet all requirements for the continuation of such
listing.

          (c) Neither the Company, to its knowledge, nor any of its affiliates,
or any person acting on its or their behalf, has directly or indirectly made any
offers or sales of any security or solicited any offers to buy any security
under circumstances that would cause the offering of the Securities pursuant to
the Securities Purchase Agreement to be integrated with prior offerings by the
Company for purposes of the Securities Act which would prevent the Company from
selling the Common Stock pursuant to Rule 506 under the Securities Act, or any
applicable exchange-related stockholder approval provisions, nor will the
Company or any of its affiliates or subsidiaries take any action or steps that
would cause the offering of the Securities to be integrated with other
offerings.

          (d) The Warrants, the Option, the Note and the shares of Common Stock
which the Purchaser may acquire pursuant to the Warrants, the Option and the
Note are all restricted securities under the Securities Act as of the date of
this Agreement. The Company will not issue any stop transfer order or other
order impeding the sale and delivery of any of the Registrable Securities at
such time as such Registrable Securities are registered for public sale or an
exemption from registration is available, except as required by federal or state
securities laws.

          (e) The Company understands the nature of the Registrable Securities
issuable upon the conversion of the Note, the exercise of the Warrant and the
exercise of the Option and recognizes that the issuance of such Registrable
Securities may have a potential dilutive effect. The Company specifically
acknowledges that its obligation to issue the Registrable Securities is binding
upon the Company and enforceable regardless of the dilution such issuance may
have on the ownership interests of other shareholders of the Company.

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          (f) Except for agreements made in the ordinary course of business,
there is no agreement that has not been filed with the Commission as an exhibit
to a registration statement or to a form required to be filed by the Company
under the Exchange Act, the breach of which could reasonably be expected to have
a material and adverse effect on the Company and its subsidiaries, or would
prohibit or otherwise interfere with the ability of the Company to enter into
and perform any of its obligations under this Agreement in any material respect.

          (g) At all times while the Note, Option and Warrant remain
outstanding, the Company will keep reserved a sufficient number of shares of
Common Stock for (A) the full conversion of the Note, exercise of the Warrant
and exercise of the Option, (B) the full conversion of the "Note" and exercise
of the "Warrant", each as defined in the Securities Purchase Agreement, dated as
of July 12, 2004 between the Company and the Holder, (C) the full conversion of
the "Note", exercise of the "Warrant" and exercise of the "Option", each as
defined in the Securities Purchase Agreement to be dated on or about June 10,
2005 between the Company and Midsummer Investments, Ltd. ("Midsummer") and (D)
the full conversion of all other securities issued to Midsummer prior to the
date hereof.

     7. Miscellaneous.

          (a) Remedies. In the event of a breach by the Company or by a Holder,
of any of their respective 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.

          (b) No Piggyback on Registrations. Except as and to the extent
specified in Schedule 7(b) hereto, 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 any Registration Statement other than the
Registrable Securities, and the Company shall not after the date hereof enter
into any agreement providing any such right for inclusion of shares in the
Registration Statement to any of its security holders. Except as and to the
extent specified in Schedule 7(b) hereto, the Company has not previously entered
into any agreement granting any registration rights with respect to any of its
securities to any Person that have not been fully satisfied.

          (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 a Discontinuation Event (as defined below), such Holder will
forthwith discontinue disposition of such Registrable Securities under the
applicable 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 may provide appropriate stop orders to enforce the provisions of this
paragraph. For purposes of this Section 7(d), a "Discontinuation Event" shall
mean (i) when the Commission notifies the Company whether there will be a

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"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); (ii) any request by the Commission or any other Federal or state
governmental authority for amendments or supplements to such Registration
Statement or Prospectus or for additional information; (iii) the issuance by the
Commission of any stop order suspending the effectiveness of such Registration
Statement covering any or all of the Registrable Securities or the initiation of
any Proceedings for that purpose; (iv) 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; and/or (v) the occurrence of any event or passage of time that makes
the financial statements included in such Registration Statement ineligible for
inclusion therein or any statement made in such 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 such
Registration Statement, Prospectus or other documents so that, in the case of
such Registration Statement or 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.

          (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
equity securities issuable in connection with stock option or other employee
benefit plans, then the Company shall send to each Holder written notice of such
determination and, if within fifteen days after receipt 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 to the extent the Company may do so without
violating registration rights of others which exist as of the date of this
Agreement, subject to customary underwriter cutbacks applicable to all holders
of registration rights and subject to obtaining any required the consent of any
selling stockholder(s) to such inclusion under such 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 the Holders of the then outstanding Registrable Securities.

          (g) Notices. Any notice or request hereunder may be given to the
Company or the Purchaser at the respective addresses set forth below or as may
hereafter be specified in a notice designated as a change of address under this
Section 7(g). Any notice or request hereunder shall be given by registered or
certified mail, return receipt requested, hand delivery, overnight mail, Federal
Express or other national overnight next day carrier (collectively, "Courier")
or telecopy (confirmed by mail). Notices and requests shall be, in the case of

<PAGE>

those by hand delivery, deemed to have been given when delivered to any party to
whom it is addressed, in the case of those by mail or overnight mail, deemed to
have been given three (3) business days after the date when deposited in the
mail or with the overnight mail carrier, in the case of a Courier, the next
business day following timely delivery of the package with the Courier, and, in
the case of a telecopy, when confirmed. The address for such notices and
communications shall be as follows:

          IF TO THE COMPANY:         Island Pacific, Inc.
                                     19800 MacArthur Boulevard
                                     Suite 1200
                                     Irvine, California  92612

                                     Attention: Chief Executive Officer
                                     Facsimile: (858) 450-9736

          WITH A COPY
  (NOT CONSTITUTING NOTICE) TO:      Solomon Ward Seidenwurm & Smith, LLP
                                     401 B Street
                                     Suite 1200
                                     San Diego, CA 92101

                                     Attention: Harry J. Proctor, Esq.
                                     Facsimile: (619) 231-4755

          IF TO A PURCHASER:         To the address set forth under such
                                     Purchaser name on the signature pages
                                     hereto.

          IF TO ANY OTHER PERSON     To the address of such Holder as it appears
          WHO IS THEN THE            in the stock transfer books of the Company
          REGISTERED HOLDER:

or such other address as may be designated in writing hereafter in accordance
with this Section 7(g) by such Person.

          (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
each Holder. Each Holder may assign their respective rights hereunder in the
manner and to the Persons as permitted under the Notes and the Securities
Purchase Agreement with the prior written consent of the Company, which consent
shall not be unreasonably withheld.

          (i) 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.

<PAGE>

          (j) Governing Law. All questions concerning the construction,
validity, enforcement and interpretation of this Agreement 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 Proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement shall be
commenced exclusively in the state and federal courts sitting in the City of New
York, Borough of Manhattan. Each party hereto hereby irrevocably submits to the
exclusive jurisdiction of the state and federal courts sitting in the City of
New York, Borough of Manhattan 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
Proceeding, any claim that it is not personally subject to the jurisdiction of
any such court, that such Proceeding is improper. Each party hereto hereby
irrevocably waives personal service of process and consents to process being
served in any such 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 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. 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 out of or relating to
this Agreement or the transactions contemplated hereby. If either party shall
commence a Proceeding to enforce any provisions of a Transaction Document, then
the prevailing party in such Proceeding shall be reimbursed by the other party
for its reasonable attorneys fees and other costs and expenses incurred with the
investigation, preparation and prosecution of such Proceeding.

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

          (l) 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 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.

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

                   [BALANCE OF PAGE INTENTIONALLY LEFT BLANK;
                             SIGNATURE PAGE FOLLOWS]

<PAGE>

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

ISLAND PACIFIC, INC.                   LAURUS MASTER FUND, LTD.

By:____________________________        By:____________________________
Name:__________________________        Name:__________________________
Title:_________________________        Title:_________________________

                                       ADDRESS FOR NOTICES:

                                       825 Third Avenue - 14th Floor
                                       New York, NY  10022
                                       Attention: Eugene Grin
                                       Facsimile: 212-541-4434

<PAGE>

                                    EXHIBIT A

                                [Month __, 2005]

Corporate Stock Transfer
3200 Cherry Drive South, Suite 430
Denver, Colorado  80209

     Re:  [Company Name]. Registration Statement on Form [S-3]
          ----------------------------------------------------

Ladies and Gentlemen:

     As counsel to[company name], a Delaware corporation (the "Company"), we
have been requested to render our opinion to you in connection with the resale
by the individuals or entitles listed on Schedule A attached hereto (the
"Selling Stockholders"), of an aggregate of [amount]shares (the "Shares") of the
Company's Common Stock.

     A Registration Statement on Form S-3 under the Securities Act of 1933, as
amended (the "Act"), with respect to the resale of the Shares was declared
effective by the Securities and Exchange Commission on [date]. Enclosed is the
Prospectus dated [date]. We understand that the Shares are to be offered and
sold in the manner described in the Prospectus.

     Based upon the foregoing, upon request by the Selling Stockholders at any
time while the registration statement remains effective, it is our opinion that
the Shares have been registered for resale under the Act and new certificates
evidencing the Shares upon their transfer or re-registration by the Selling
Stockholders may be issued without restrictive legend. We will advise you if the
registration statement is not available or effective at any point in the future.

                                           Very truly yours,

                                           [Company counsel]

<PAGE>

                                   SCHEDULE A

                                                  Shares
Selling Stockholder                               Being Offered
-------------------                               -------------

<PAGE>

SCHEDULE 7(B)
-------------ISLAND PACIFIC, INC. AND CERTAIN OF ITS SUBSIDIARIES
                            MASTER SECURITY AGREEMENT

To:    Midsummer Investments, Ltd.

Date:  June 15, 2005

To Whom It May Concern:

     1. To secure the payment of all Obligations (as hereafter defined), Island
Pacific, Inc., a Delaware corporation (the "Company"), each of the other
undersigned parties (other than Midsummer Investments Ltd., "Midsummer")) and
each other entity that is required to enter into this Master Security Agreement
(each an "Assignor" and, collectively, the "Assignors") hereby assigns and
grants to Midsummer a continuing security interest in all of the following
property now owned or at any time hereafter acquired by any Assignor, or in
which any Assignor now have or at any time in the future may acquire any right,
title or interest (the "Collateral"): all cash, cash equivalents, accounts,
deposit accounts (including, without limitation, the Restricted Accounts (the
"Restricted Accounts") maintained at each of Silicon Valley Bank (Account Name:
Cash Collateral Account, Account Number: 3300397264; Account Name: Payroll
Account, Account Number: 3300397279; Account Name: Operating Accounting, Account
Number: 3300400459) referred to in the Silicon Valley Bank Restricted Account
Agreement) and California Bank and Trust (Account Name: Checking, Account
Number: 21-400272-81; Account Name: Payroll, Account Number: 21-400274-41;
Account Name: Administrative Division, Account Number: 21-400185-31; Account
Name: Money Market, Account Number: 21-400169-19; Account Name: Store Solutions
Division, Account Number: 21-400273-61; Account Name: IPI Acquisition, Inc.
d/b/a Page Digital, Account Number: 21-400231-01) referred to in the California
Bank and Trust Restricted Account Agreement, inventory, equipment, goods,
documents, instruments (including, without limitation, promissory notes),
contract rights, general intangibles (including, without limitation, payment
intangibles and an absolute right to license on terms no less favorable than
those current in effect among our affiliates), chattel paper, supporting
obligations, investment property (including, without limitation, all equity
interests owned by any Assignor), letter-of-credit rights, trademarks, trademark
applications, tradestyles, patents, patent applications, copyrights, copyright
applications and other intellectual property in which any Assignor now have or
hereafter may acquire any right, title or interest, all proceeds and products
thereof (including, without limitation, proceeds of insurance) and all
additions, accessions and substitutions thereto or therefore. In the event any
Assignor wishes to finance the acquisition in the ordinary course of business of
any hereafter acquired equipment and have obtained a commitment from a financing
source to finance such equipment from an unrelated third party, Midsummer agrees
to release its security interest on such hereafter acquired equipment so
financed by such third party financing source. Except as otherwise defined
herein, all capitalized terms used herein shall have the meaning provided such
terms in the Securities Purchase Agreement referred to below.

     2. The term "Obligations" as used herein shall mean and include all debts,
liabilities and obligations owing by each Assignor to Midsummer arising under,
out of, or in connection with: (i) that certain Securities Purchase Agreement
dated as of the date hereof by and between the Company and Midsummer (the
"Securities Purchase Agreement"), (ii) the Related Agreements referred to in the
Securities Purchase Agreement (the Securities Purchase Agreement and each
Related Agreement, as each may be amended, modified, restated or supplemented

<PAGE>

from time to time, are collectively referred to herein as the "Documents"), and
in connection with any documents, instruments or agreements relating to or
executed in connection with the Documents or any documents, instruments or
agreements referred to therein or otherwise, and in connection with any other
indebtedness, obligations or liabilities of any Assignor to Midsummer, hereafter
arising, direct or indirect, liquidated or unliquidated, absolute or contingent,
due or not due and whether under, pursuant to or evidenced by a note, agreement,
guaranty, instrument or otherwise, in each case, irrespective of the
genuineness, validity, regularity or enforceability of such Obligations, or of
any instrument evidencing any of the Obligations or of any collateral therefor
or of the existence or extent of such collateral, and irrespective of the
allowability, allowance or disallowance of any or all of the Obligations in any
case commenced by or against any Assignor under Title 11, United States Code,
including, without limitation, obligations or indebtedness of each Assignor for
post-petition interest, fees, costs and charges that would have accrued or been
added to the Obligations but for the commencement of such case. Notwithstanding
anything set forth herein to the contrary, the definition of "Obligations" shall
not include any present and future obligations or liabilities of any and all
kinds of Debtor to Midsummer to the extent arising under, out of, or in
connection with (i) that certain Securities Purchase Agreement dated as of March
15, 2004 by and between the Debtor and Midsummer (the "March 2004 Purchase
Agreement") and (ii) each Related Agreement referred to in the March 2004
Purchase Agreement.

     3. Each Assignor hereby jointly and severally represents, warrants and
covenants to Midsummer that:

          (a) it is a corporation, partnership or limited liability company, as
     the case may be, validly existing, in good standing and organized under the
     respective laws of its jurisdiction of organization set forth on Schedule
     A, and each Assignor will provide Midsummer thirty (30) days' prior written
     notice of any change in any of its respective jurisdiction of organization;

          (b) its legal name is as set forth in its respective Certificate of
     Incorporation or other organizational document (as applicable) as amended
     through the date hereof and as set forth on Schedule A, and it will provide
     Midsummer thirty (30) days' prior written notice of any change in its legal
     name;

          (c) its organizational identification number (if applicable) is as set
     forth on Schedule A hereto, and it will provide Midsummer thirty (30) days'
     prior written notice of any change in any of its organizational
     identification number;

          (d) it is the lawful owner of the respective Collateral and it has the
     sole right to grant a security interest therein and will defend the
     Collateral against all claims and demands of all persons and entities;

          (e) it will keep its respective Collateral free and clear of all
     attachments, levies, taxes, liens, security interests and encumbrances of
     every kind and nature ("Encumbrances"), except (i) Encumbrances securing
     the Obligations; (ii) Encumbrances permitted under Section 6.12(e) of the
     Securities Purchase Agreement ; and (iii) Encumbrance that do not secure
     indebtedness in excess of $50,000 and are removed or otherwise released
     within ten (10) days of the creation thereof;

          (f) it will, at its and the other Assignors joint and several cost and
     expense keep the Collateral in good state of repair (ordinary wear and tear
     excepted) and will not waste or destroy the same or any part thereof other
     than ordinary course discarding of items no longer used or useful in its or
     such other Assignors' business;

                                       2
<PAGE>

          (g) it will not without Midsummer' prior written consent, sell,
     exchange, lease or otherwise dispose of the Collateral, whether by sale,
     lease or otherwise, except for the sale of inventory in the ordinary course
     of business and for the disposition or transfer in the ordinary course of
     business during any fiscal year of obsolete and worn-out equipment or
     equipment no longer necessary for its ongoing needs, having an aggregate
     fair market value of not more than $50,000 and only to the extent that:

               (i) the proceeds of any such disposition are used to acquire
          replacement Collateral which is subject to Midsummer' perfected
          security interest, or are used to repay Obligations or to pay general
          corporate expenses; and

               (ii) following the occurrence of an Event of Default which
          continues to exist the proceeds of which are remitted to Midsummer to
          be held as cash collateral for the Obligations;

          (h) it will insure or cause the Collateral to be insured in Midsummer'
     name against loss or damage by fire, theft, burglary, pilferage, loss in
     transit and such other hazards as Midsummer shall specify in amounts and
     under policies by insurers acceptable to Midsummer and all premiums thereon
     shall be paid by such Assignor and the policies delivered to Midsummer. If
     any such Assignor fails to do so, Midsummer may procure such insurance and
     the cost thereof shall be promptly reimbursed by the Assignors, jointly and
     severally, and shall constitute Obligations;

          (i) it will at all reasonable times allow Midsummer or Midsummer'
     representatives free access to and the right of inspection of the
     Collateral;

          (j) such Assignor (jointly and severally with each other Assignor)
     hereby indemnifies and saves Midsummer harmless from all loss, costs,
     damage, liability and/or expense, including reasonable attorneys' fees,
     that Midsummer may sustain or incur to enforce payment, performance or
     fulfillment of any of the Obligations and/or in the enforcement of this
     Master Security Agreement or in the prosecution or defense of any action or
     proceeding either against Midsummer or any Assignor concerning any matter
     growing out of or in connection with this Master Security Agreement, and/or
     any of the Obligations and/or any of the Collateral except to the extent
     caused by Midsummer' own gross negligence or willful misconduct (as
     determined by a court of competent jurisdiction in a final and
     nonappealable decision).

     4. The occurrence of any of the following events or conditions shall
constitute an "Event of Default" under this Master Security Agreement:

          (a) Breach of any covenant, warranty, representation or statement made
     or furnished to Midsummer by any Assignor or on any Assignor's benefit was
     false or misleading in any material respect when made or furnished, and if
     subject to cure, shall not be cured for a period of fifteen (15) days;
     provided that, if such breach is of a nature that it can not be cured
     within fifteen (15) days and Assignor has taken reasonable steps to cure
     such default within fifteen (15) days, upon written notice to and the
     consent of Midsummer, the Assignor will have a commercially reasonable
     amount of time to cure such breach before such breach shall be deemed an
     Event of Default;

                                       3
<PAGE>

          (b) the loss, theft, substantial damage, destruction, sale or
     encumbrance to or of any of the Collateral or the making of any levy,
     seizure or attachment thereof or thereon except to the extent:

               (i) such loss is covered by insurance proceeds which are used to
          replace the item or repay Midsummer; or

               (ii) said levy, seizure or attachment does not secure
          indebtedness in excess of $100,000 and such levy, seizure or
          attachment has not been removed or otherwise released within ten (10)
          days of the creation or the assertion thereof;

          (c) any Assignor shall become insolvent, cease operations, dissolve,
     terminate our business existence, make a general assignment for the benefit
     of creditors, suffer the appointment of a receiver, trustee, liquidator or
     custodian of all or any part of Assignors' property;

          (d) any proceedings under any bankruptcy or insolvency law shall be
     commenced by or against any Assignor and if commenced against any Assignor
     shall not be dismissed within thirty (30) days;

          (e) the Company shall repudiate, purport to revoke or fail to perform
     any or all of its obligations under the Note (after passage of applicable
     cure period, if any); or

          (f) an Event of Default shall have occurred and be continuing beyond
     any applicable grace period under and as defined in any Document.

     5. Upon the occurrence of any Event of Default and at any time thereafter,
Midsummer may declare all Obligations immediately due and payable and Midsummer
shall have the remedies of a secured party provided in the Uniform Commercial
Code as in effect in the State of New York , this Agreement and other applicable
law. Upon the occurrence of any Event of Default and at any time thereafter
following the expiration of the applicable cure period, Midsummer will have the
right to take possession of the Collateral and to maintain such possession on
our premises or to remove the Collateral or any part thereof to such other
premises as Midsummer may desire. Upon Midsummer' request, each of the Assignors
shall assemble or cause the Collateral to be assembled and make it available to
Midsummer at a place designated by Midsummer. If any notification of intended
disposition of any Collateral is required by law, such notification, if mailed,
shall be deemed properly and reasonably given if mailed at least ten (10) days
before such disposition, postage prepaid, addressed to any Assignor either at
such Assignor's address shown herein or at any address appearing on Midsummer'
records for such Assignor. Any proceeds of any disposition of any of the
Collateral shall be applied by Midsummer to the payment of all expenses in
connection with the sale of the Collateral, including reasonable attorneys' fees
and other legal expenses and disbursements and the reasonable expense of
retaking, holding, preparing for sale, selling, and the like, and any balance of
such proceeds may be applied by Midsummer toward the payment of the Obligations
in such order of application as Midsummer may elect, and each Assignor shall be
liable for any deficiency. For the avoidance of doubt, following the occurrence
and during the continuance of an Event of Default which has not been cured,
Midsummer shall have the immediate right to withdraw any and all monies
contained in the Restricted Account and apply same to the repayment of the
Obligations (in such order of application as Midsummer may elect).

                                       4
<PAGE>

     6. If any Assignor defaults in the performance or fulfillment of any of the
terms, conditions, promises, covenants, provisions or warranties on such
Assignor's part to be performed or fulfilled under or pursuant to this Master
Security Agreement, Midsummer may, at its option without waiving its right to
enforce this Master Security Agreement according to its terms, immediately or at
any time thereafter and without notice to any Assignor, perform or fulfill the
same or cause the performance or fulfillment of the same for each Assignor's
joint and several account and at each Assignor's joint and several cost and
expense, and the cost and expense thereof (including reasonable attorneys' fees)
shall be added to the Obligations and shall be payable on demand with interest
thereon at the highest rate permitted by law, or, at Midsummer' option, debited
by Midsummer from the Restricted Accounts referred to in the respective
Restricted Account Agreements.

     7. Each Assignor appoints Midsummer, any of Midsummer' officers, employees
or any other person or entity whom Midsummer may designate as our attorney, with
power to execute such documents in each of our behalf and to supply any omitted
information and correct patent errors in any documents executed by any Assignor
or on any Assignor's behalf; to file financing statements against us covering
the Collateral (and, in connection with the filing of any such financing
statements, describe the Collateral as "all assets and all personal property,
whether now owned and/or hereafter acquired" (or any substantially similar
variation thereof)); to sign our name on public records; and to do all other
things Midsummer reasonably deems necessary to carry out this Master Security
Agreement. This power being coupled with an interest, is irrevocable so long as
any Obligations remains unpaid.

     8. No delay or failure on Midsummer' part in exercising any right,
privilege or option hereunder shall operate as a waiver of such or of any other
right, privilege, remedy or option, and no waiver whatever shall be valid unless
in writing, signed by Midsummer and then only to the extent therein set forth,
and no waiver by Midsummer of any default shall operate as a waiver of any other
default or of the same default on a future occasion. Midsummer' books and
records containing entries with respect to the Obligations shall be admissible
in evidence in any action or proceeding, shall be binding upon each Assignor for
the purpose of establishing the items therein set forth and shall constitute
prima facie proof thereof. Midsummer shall have the right to enforce any one or
more of the remedies available to Midsummer, successively, alternately or
concurrently. Each Assignor agrees to join with Midsummer in executing financing
statements or other instruments to the extent required by the Uniform Commercial
Code in form satisfactory to Midsummer and in executing such other documents or
instruments as may be required or deemed necessary by Midsummer for purposes of
affecting or continuing Midsummer' security interest in the Collateral.

     9. This Master Security Agreement shall be governed by and construed in
accordance with the laws of the State of New York and cannot be terminated
orally. All of the rights, remedies, options, privileges and elections given to
Midsummer hereunder shall inure to the benefit of Midsummer' successors and
assigns. The term "Midsummer" as herein used shall include Midsummer, any parent
of Midsummer', any of Midsummer' subsidiaries and any co-subsidiaries of
Midsummer' parent, whether now existing or hereafter created or acquired, and
all of the terms, conditions, promises, covenants, provisions and warranties of
this Agreement shall inure to the benefit of each of the foregoing, and shall
bind the representatives, successors and assigns of each Assignor. Midsummer and
each Assignor hereby (a) waive any and all right to trial by jury in litigation
relating to this Agreement and the transactions contemplated hereby and each
Assignor agrees not to assert any counterclaim in such litigation, (b) submit to
the nonexclusive jurisdiction of any New York State court sitting in the borough
of Manhattan, the city of New York and (c) waive any objection Midsummer or each
Assignor may have as to the bringing or maintaining of such action with any such
court.

                                       5
<PAGE>

     10. All notices from Midsummer to any Assignor shall be sufficiently given
if mailed or delivered to such Assignor's address set forth below.

                                      Very truly yours,

                                      ISLAND PACIFIC, INC.

                                      By: ____________________

                                      Name:

                                      Title:

                                      Address:

                                      PAGE DIGITAL INCORPORATED

                                      By: ____________________

                                      Name:

                                      Title:

                                      Address:

                                      IP RETAIL TECHNOLOGIES INTERNATIONAL, INC.

                                      By: ____________________

                                      Name:

                                      Title:

                                      Address:

                                      SABICA VENTURES, INC.

                                      By: ____________________

                                      Name:

                                      Title:

                                      Address:

                                       6
<PAGE>

                                      ACKNOWLEDGED:

                                      MIDSUMMER INVESTMENTS LTD.

                                      By:______________________

                                      Name:

                                      Title

                                       7

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