Document:

Exhibit 4.1

                          SECURITIES PURCHASE AGREEMENT

         This Securities  Purchase  Agreement (this  "Agreement") is dated as of
January 17, 2005 among  United  Network  Marketing  Services,  Inc.,  a Delaware
corporation  (the  "Company"),  and each  purchaser  identified on the signature
pages hereto (each,  including its  successors  and assigns,  a "Purchaser"  and
collectively the "Purchasers").

         WHEREAS,  subject  to the  terms  and  conditions  set  forth  in  this
Agreement and pursuant to Section 4(2) of the Securities Act of 1933, as amended
(the "Securities Act") and Rule 506 promulgated thereunder,  the Company desires
to issue  and sell to each  Purchaser,  and each  Purchaser,  severally  and not
jointly,  desires to purchase  from the Company,  shares of Series B Convertible
Preferred Stock of the Company and Common Stock Purchase Warrants of the Company
on the Closing Date, as more fully described in this Agreement.

         WHEREAS,  the Company  intends to enter into an  Agreement  and Plan of
Merger among the Company, Knockout Acquisition Corp., a Delaware corporation and
a wholly owned subsidiary of the Company ("Merger Sub"), and The Knockout Group,
Inc., a Delaware corporation ("Knockout"), by which Knockout will merge with and
into Merger Sub and Knockout will be the surviving entity from the Merger.

         WHEREAS,  the Merger shall occur before the sale of the  Securities  by
the Company to the  Purchasers and the  Purchasers  are  accordingly  purchasing
Securities of the post-Merger Company under this Agreement.

         WHEREAS,  subsequent  to the Merger,  the  Company,  through its wholly
owned subsidiary, Knockout, will be engaged in the business of selling household
and automobile  cleaning products that are based on a proprietary  encapsulation
technology.

         NOW,  THEREFORE,  IN CONSIDERATION of the mutual covenants contained in
this Agreement,  and for other good and valuable  consideration  the receipt and
adequacy of which are hereby acknowledged, the Company and each Purchaser agrees
as follows:

                                    ARTICLE I.
                                   DEFINITIONS

         1.1  Definitions.  In addition to the terms  defined  elsewhere in this
Agreement, the following terms have the meanings indicated in this Section 1.1:

                  "Action"  shall  have the  meaning  ascribed  to such  term in
         Section 3.1(j).

                  "Affiliate"  means any Person  that,  directly  or  indirectly
         through one or more intermediaries,  controls or is controlled by or is
         under  common  control  with a  Person,  as such  terms are used in and
         construed  under Rule 144 under the  Securities  Act. With respect to a
         Purchaser,  any investment fund or managed account that is managed on a

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         discretionary  basis by the same  investment  manager as such Purchaser
         will be deemed to be an Affiliate of such Purchaser.

                  "Closing"  means the closing of the  purchase  and sale of the
         Securities pursuant to Section 2.2.

                  "Closing  Date"  means  the date  when all of the  Transaction
         Documents  have been executed and delivered by the  applicable  parties
         thereto,   and  all  conditions   precedent  to  (i)  the   Purchasers'
         obligations  to pay the  Subscription  Amount  and (ii)  the  Company's
         obligations to deliver the Securities have been satisfied or waived.

                  "Commission" means the Securities and Exchange Commission.

                  "Common  Stock" means the common  stock of the Company,  $.001
         par value per share,  and any  securities  into which such common stock
         shall hereinafter have been reclassified into.

                  "Common Stock Equivalents" means any securities of the Company
         or the  Subsidiaries  which would  entitle the  Stockholder  thereof to
         acquire at any time Common Stock,  including  without  limitation,  any
         debt,  preferred stock, rights,  options,  warrants or other instrument
         that is at any time convertible into or exchangeable  for, or otherwise
         entitles the Stockholder thereof to receive, Common Stock.

                  "Company Counsel" means Sichenzia Ross Friedman Ference LLP.

                  "Conversion  Price"  shall  have the  meaning  as set forth in
         Section 2.7(b).

                  "Disclosure  Schedules" means the Disclosure  Schedules of the
         Company delivered concurrently herewith.

                   "Effective Date" means the date that the initial Registration
         Statement  filed by the  Company  pursuant to the  Registration  Rights
         Agreement is first declared effective by the Commission.

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

                  "Exempt  Issuance"  means the issuance of (a) shares of Common
         Stock or options to officers,  directors,  employees or  consultants of
         the  Company  pursuant  to any stock or option  plan duly  adopted by a
         majority of the members of the Board of  Directors  of the Company or a
         majority of the members of a committee  of  directors  established  for
         such purpose,  (b)  securities  upon the  conversion of any  securities
         issued hereunder,  convertible  securities,  options or warrants issued
         and  outstanding  on the date of this  Agreement,  provided  that  such
         securities  have not been amended  since the date of this  Agreement to
         increase  the  number of such  securities,  and (c)  securities  issued
         pursuant to acquisitions or strategic  transactions,  provided any such
         issuance  shall only be to a Person  which is,  itself or  through  its
         subsidiaries,  an operating company in a business  synergistic with the
         business of the Company and in which the Company  receives  benefits in
         addition  to  the  investment  of  funds,   but  shall  not  include  a

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         transaction  in which the Company is issuing  securities  primarily for
         the purpose of raising  capital or to an entity whose primary  business
         is investing in securities.

                  "GAAP" shall have the meaning ascribed to such term in Section
         3.1(h) hereof.

                  "Knockout  Offering"  shall  mean a private  placement  by The
         Knockout  Group,  Inc.,  a  Delaware  corporation  and a  wholly  owned
         subsidiary  of the  Company,  of up to an aggregate  of  $2,500,000  of
         Series C Convertible Preferred Stock of The Knockout Group, Inc., which
         shall have completed prior to the Closing Date.

                   "Liens" means a lien, charge, security interest, encumbrance,
         right of first refusal, preemptive right or other restriction.

                  "Material  Adverse Effect" shall have the meaning  assigned to
         such term in Section 3.1(b) hereof.

                  "Material  Permits"  shall have the  meaning  ascribed to such
         term in Section 3.1(m).

                  "Merger" shall mean the merger of The Knockout Group,  Inc., a
         Delaware  corporation,  with and into a wholly owned  subsidiary  ofthe
         Company.  "Person"  means an  individual or  corporation,  partnership,
         trust,  incorporated  or  unincorporated  association,  joint  venture,
         limited  liability  company,  joint stock  company,  government  (or an
         agency or subdivision thereof) or other entity of any kind.

                  "Preferred  Stock" means,  the Series B Convertible  Preferred
         Stock issued by the Company to the Purchasers hereunder, in the form of
         Exhibit A.

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

                  "Registration  Rights Agreement" means the Registration Rights
         Agreement, dated the date hereof, among the Company and the Purchasers,
         in the form of Exhibit B attached hereto.

                  "Registration   Statement"  means  a  registration   statement
         meeting the requirements set forth in the Registration Rights Agreement
         and covering the resale of the  Underlying  Shares by each Purchaser as
         provided for in the Registration Rights Agreement.

                  "Required  Approvals"  shall have the meaning ascribed to such
         term in Section 3.1(e).

                  "Rule  144"  means  Rule  144  promulgated  by the  Commission
         pursuant to the  Securities  Act, as such Rule may be amended from time

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         to time,  or any similar rule or  regulation  hereafter  adopted by the
         Commission having substantially the same effect as such Rule.

                  "Securities"  means the Preferred  Stock, the Warrants and the
         Underlying Shares.

                  "Securities Act" means the Securities Act of 1933, as amended.

                  "Subscription  Amount"  means,  as  to  each  Purchaser,   the
         aggregate amount to be paid for the Preferred Stock purchased hereunder
         as specified below such  Purchaser's name on the signature page of this
         Agreement  and next to the  heading  "Subscription  Amount,"  in United
         States Dollars and in immediately available funds.

                  "Subsidiary"  means any subsidiary of the Company as set forth
         on Schedule 3.1(a).

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

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

                   "Transaction  Documents" means this Agreement,  the Warrants,
         the   Registration   Rights   Agreement,    the   Accredited   Investor
         Questionnaire  and  any  other  documents  or  agreements  executed  in
         connection with the transactions contemplated hereunder.

                  "Underlying  Shares" means the shares of Common Stock issuable
         upon: (i) conversion of the Preferred  Stock,  and (ii) exercise of the
         Warrants.

                  "Warrants"  means the Common Stock Purchase  Warrants,  in the
         form of  Exhibit  C,  delivered  to the  Purchasers  at the  Closing in
         accordance  with Section  2.3(a)(iii)  hereof,  which warrants shall be
         exercisable immediately upon issuance for a term of 5 years and have an
         exercise  price  equal to $2.25,  subject  to  adjustment  as  provided
         therein.

                                   ARTICLE II.
                                PURCHASE AND SALE

         2.1 Purchase Price.  The purchase price of the Preferred Stock shall be
$46.8933 per share (the "Purchase Price"). For each one share of Preferred Stock
purchased  hereunder,  each Purchaser will receive  sixteen (16) Warrants.  Each
Purchaser hereby agrees to purchase such number of shares of Preferred Stock and
Warrants for the aggregate  Subscription  Amount indicated on the signature page
hereto.

         2.2  Closing.  On the Closing  Date,  upon the terms and subject to the
conditions set forth herein,  concurrent with the execution and delivery of this
Agreement by the parties hereto,  the Company agrees to sell, and each Purchaser
agrees  to  purchase  in the  aggregate,  severally  and not  jointly,  at least

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$100,000  principal amount of the Preferred Stock and Warrants.  Notwithstanding
the above,  the Company may in its sole  discretion  accept  purchases less than
$100,000  principal  amount of the Preferred Stock and Warrants.  Each Purchaser
shall  deliver to an escrow  account  set up for the  benefit of the Company via
wire transfer or a certified  check  immediately  available funds equal to their
Subscription  Amount  and the  Company  shall  deliver to each  Purchaser  their
respective  Preferred Stock Certificates and Warrants as determined  pursuant to
Section 2.3(a) and the other items set forth in Section  2.3(a)  issuable at the
Closing.  Upon  satisfaction  of the  conditions  set forth in Section  2.3, the
Closing shall occur at the offices of the Company, or such other location as the
parties shall mutually agree.

         2.3 Deliveries.

         a)       On the Closing Date,  the Company shall deliver to the counsel
                  for  such  Purchasers  with  respect  to  each  Purchaser  the
                  following:

                  (i)      this Agreement duly executed by the Company;

                  (ii)     a Preferred Stock Certificate representing the number
                           of shares of  Preferred  Stock so  purchased,  in the
                           name of such Purchaser;

                  (iii)    within 3 Trading Days of the date hereof,  a Warrant,
                           registered in the name of such Purchaser, pursuant to
                           which such Purchaser  shall have the right to acquire
                           up to the number of shares of Common  Stock  equal to
                           ____________________; and

                  (iv)     the  Registration  Rights  Agreement duly executed by
                           the Company.

         b)       On the Closing Date,  each Purchaser shall deliver or cause to
                  be delivered to Company Counsel the following:

                  (i)      this Agreement duly executed by such Purchaser;

                  (ii)     such Purchaser's Subscription Amount by wire transfer
                           to an escrow account  established  for the benefit of
                           the Company and controlled by the Company;

                  (iii)    the  Registration  Rights  Agreement duly executed by
                           such Purchaser;

                  (iv)     a completed Accredited Investor Questionnaire; and

                  (v)      a completed Form W-9 or W-8, as applicable.

         c)       On the Closing Date, the Company shall notify the escrow agent
                  to release the funds being held to the Company.

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         2.4 Closing Conditions.

                  a)       The   obligations   of  the  Company   hereunder   in
                           connection  with  the  Closing  are  subject  to  the
                           following conditions being met:

                           (i)      the accuracy in all material  respects  when
                                    made  and  on  the   Closing   Date  of  the
                                    representations   and   warranties   of  the
                                    Purchasers contained herein;

                           (ii)     all obligations, covenants and agreements of
                                    the  Purchasers  required to be performed at
                                    or prior to the Closing Date shall have been
                                    performed;

                           (iii)    the delivery by the  Purchasers of the items
                                    set   forth  in   Section   2.3(b)  of  this
                                    Agreement; and

                           (iv)     the Company shall have completed the Merger.

                  b)       The   respective   obligations   of  the   Purchasers
                           hereunder in connection  with the Closing are subject
                           to the following conditions being met:

                           (i)      the accuracy in all material respects on the
                                    Closing  Date  of  the  representations  and
                                    warranties of the Company contained herein;

                           (ii)     all obligations, covenants and agreements of
                                    the Company  required to be  performed at or
                                    prior to the  Closing  Date  shall have been
                                    performed;

                           (iii)    the Company shall have completed the Merger;

                           (iv)     the delivery by the Company of the items set
                                    forth in Section  2.3(a) of this  Agreement;
                                    and

                           (v)      there  shall have been no  Material  Adverse
                                    Effect with respect to the Company since the
                                    date hereof.

         2.5      Dividends.

                  a)  Payment  of  Dividend  in  Cash.  The  Company  shall  pay
         dividends on the Preferred Stock at the rate of 10% per annum,  payable
         quarterly on January 1, April 1, July 1 and October 1, beginning  April
         1, 2005, in cash based on the stated value of all unconverted Preferred
         Stock.  The dividend  rate shall be subject to an  adjustment  based on
         Section 2.10, below. No dividends shall be paid on previously converted
         Preferred Stock.

                  b) Dividend Calculations. Dividends shall be calculated on the
         basis of a 360-day year and shall accrue daily  commencing  on the date
         hereof.

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                  c) Late Fee.  All overdue  accrued and unpaid  dividends to be
         paid hereunder  shall entail a late fee at the rate of 18% per annum of
         such accrued and unpaid dividend, which will accrue daily from the date
         such  dividend  is due  hereunder  through  and  including  the date of
         payment.

         2.6  Investment  Representations.  The Preferred  Stock has been issued
subject  to  certain  investment  representations  set  forth  in  the  Purchase
Agreement  and may be  transferred  or  exchanged  only in  compliance  with the
Purchase  Agreement  and  applicable  federal  and  state  securities  laws  and
regulations.

         2.7. Conversion.

                  a) Mandatory Conversion.  Immediately after the Company amends
         its  Certificate  of  Incorporation  to  authorize  an  increase in the
         Company's  authorized  number of shares of Common Stock to a sufficient
         number of shares of Common Stock so that all shares of Preferred  Stock
         may be  converted  into  Common  Stock  (the  "Conversion  Date"),  the
         Preferred  Stock  shall  automatically  convert  into  fully  paid  and
         nonassessable  shares of Common Stock  (subject to the  limitations  on
         conversion  set  forth  in  this  Agreement).   Immediately  after  the
         Conversion Date, the Company shall cancel the Preferred Stock.

                  b) Conversion  Price.  Subject to Section 2.7, the  conversion
         price in effect on the  Conversion  Date shall  equal  $.2931 per share
         (the "Conversion Price").

                  c) Mechanics of Conversion

                           i.  Conversion  Shares  Issuable  Upon  Conversion of
                  Preferred Stock. The number of shares of Common Stock issuable
                  upon  a  conversion  hereunder  shall  be  determined  by  the
                  quotient  obtained  by  dividing  (x) the stated  value of the
                  Preferred Stock and (y) the Conversion Price.

                           ii. Fractional  Shares.  Upon a conversion  hereunder
                  the Company shall not be required to issue fractions of shares
                  of Common Stock, but may if otherwise  permitted,  make a cash
                  payment in respect of any final  fraction  of a share based on
                  the stated value of the Preferred Stock. If the Company elects
                  not, or is unable, to make such a cash payment,  the Purchaser
                  shall be entitled to receive, in lieu of the final fraction of
                  a share, one whole share of Common Stock.

         2.8. Certain Adjustments.

                  a) Subsequent Equity Sales. Other than an Exempt Issuance,  if
         the Company or any Subsidiary thereof, as applicable, at any time while
         the  Preferred  Stock is  outstanding,  shall issue any Common Stock or
         Common Stock Equivalent for a per share or conversion or exercise price
         per share which is less than the Conversion Price, then, and thereafter
         successively  upon each  such  issue,  the  Conversion  Price  shall be
         reduced to such other lower per share price.

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                  b) Calculations. All calculations under this Section 2.8 shall
         be made to the nearest cent or the nearest  1/100th of a share,  as the
         case may be. The number of shares of Common  Stock  outstanding  at any
         given time shall not include shares of Common Stock owned or held by or
         for the account of the Company,  and the description of any such shares
         of Common Stock shall be  considered  on issue or sale of Common Stock.
         For  purposes of this Section 2.8, the number of shares of Common Stock
         deemed to be issued and outstanding as of a given date shall be the sum
         of the number of shares of Common Stock (excluding  treasury shares, if
         any) issued and outstanding.

                  c)  Adjustment to Conversion  Price.  Whenever the  Conversion
         Price is adjusted pursuant to this Section,  the Company shall promptly
         mail to each  Stockholder a notice setting forth the  Conversion  Price
         after such  adjustment and setting forth a brief statement of the facts
         requiring  such  adjustment.  If the  Company  issues a  variable  rate
         security,  the Company  shall be deemed to have issued  Common Stock or
         Common Stock Equivalents at the lowest possible  conversion or exercise
         price at which such securities may be converted or exercised.

         2.9.  Optional  Redemption.  At the option of the Company,  at any time
after March 31,  2005,  the Company may redeem all of the  Preferred  Stock at a
purchase  price  equal to the  stated  value of the  Preferred  Stock,  plus all
accrued, but unpaid dividends.  The Company shall give the Stockholders at least
10 days prior written notice of its intention to redeem the Preferred Stock.

         2.10.  Dividend  Adjustment.  In the event that the Preferred Stock has
not  converted  into Common  Stock  pursuant  to Section  2.7(a) or has not been
redeemed by the Company as described in Section 2.9,  above,  within 180 days of
the Closing Date, the dividend rate shall increase to 20% per annum.

                                   ARTICLE III.
                         REPRESENTATIONS AND WARRANTIES

         3.1 Representations and Warranties of the Company.  Except as set forth
in the Disclosure  Schedules,  which shall be deemed a part hereof,  the Company
hereby  makes  the  representations  and  warranties  set  forth  below  to each
Purchaser.

                  (a) Subsidiaries.  All of the direct and indirect subsidiaries
         of the Company are set forth in the Disclosure  Schedules.  The Company
         owns, directly or indirectly,  all of the capital stock or other equity
         interests of each Subsidiary  free and clear of any Liens,  and all the
         issued and  outstanding  shares of capital stock of each Subsidiary are
         validly  issued  and  are  fully  paid,   non-assessable  and  free  of
         preemptive and similar rights to subscribe for or purchase  securities.
         If the Company has no subsidiaries,  then references in the Transaction
         Documents to the Subsidiaries will be disregarded.

                  (b)  Organization and  Qualification.  Each of the Company and
         the Subsidiaries is an entity duly incorporated or otherwise organized,
         validly   existing  and  in  good  standing   under  the  laws  of  the

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         jurisdiction of its incorporation or organization (as applicable), with
         the  requisite  power and authority to own and use its  properties  and
         assets and to carry on its business as currently conducted. Neither the
         Company nor any  Subsidiary  is in  violation  or default of any of the
         provisions of its respective  certificate or articles of incorporation,
         bylaws  or  other  organizational  or  charter  documents.  Each of the
         Company and the  Subsidiaries is duly qualified to conduct business and
         is in good  standing as a foreign  corporation  or other entity in each
         jurisdiction in which the nature of the business  conducted or property
         owned  by it makes  such  qualification  necessary,  except  where  the
         failure to be so  qualified  or in good  standing,  as the case may be,
         could not have or  reasonably  be  expected to result in (i) a material
         adverse  effect on the  legality,  validity  or  enforceability  of any
         Transaction Documents, (ii) a material adverse effect on the results of
         operations,  assets, business,  prospects or financial condition of the
         Company  and the  Subsidiaries,  taken as a whole,  or (iii) a material
         adverse  effect on the  Company's  ability to  perform in any  material
         respect  on a  timely  basis  its  obligations  under  any  Transaction
         Document (any of (i), (ii) or (iii), a "Material  Adverse  Effect") and
         no Proceeding has been  instituted in any such  jurisdiction  revoking,
         limiting  or  curtailing  or seeking to revoke,  limit or curtail  such
         power and authority or qualification.

                  (c) Authorization;  Enforcement. The Company has the requisite
         corporate  power and  authority  to enter  into and to  consummate  the
         transactions  contemplated  by each of the  Transaction  Documents  and
         otherwise to carry out its  obligations  thereunder.  The execution and
         delivery of each of the  Transaction  Documents  by the Company and the
         consummation by it of the transactions  contemplated  thereby have been
         duly authorized by all necessary  action on the part of the Company and
         no further  action is required by the Company in  connection  therewith
         other than in connection with the Required Approvals.  Each Transaction
         Document has been (or upon  delivery  will have been) duly  executed by
         the Company and, when  delivered in  accordance  with the terms hereof,
         will  constitute  the  valid  and  binding  obligation  of the  Company
         enforceable against the Company in accordance with its terms except (i)
         as  limited  by  applicable  bankruptcy,  insolvency,   reorganization,
         moratorium and other laws of general application  affecting enforcement
         of creditors'  rights generally and (ii) as limited by laws relating to
         the availability of specific  performance,  injunctive  relief or other
         equitable remedies.

                  (d) No Conflicts.  The execution,  delivery and performance of
         the  Transaction  Documents by the Company and the  consummation by the
         Company of the other transactions  contemplated thereby do not and will
         not: (i) conflict with or violate any provision of the Company's or any
         Subsidiary's certificate or articles of incorporation,  bylaws or other
         organizational  or  charter  documents,   or  (ii)  conflict  with,  or
         constitute  a default (or an event that with notice or lapse of time or
         both would become a default) under,  result in the creation of any Lien
         upon any of the properties or assets of the Company or any  Subsidiary,
         or give to others any rights of termination, amendment, acceleration or
         cancellation  (with or without  notice,  lapse of time or both) of, any
         agreement,  credit  facility,  debt or other  instrument  (evidencing a
         Company or  Subsidiary  debt or otherwise)  or other  understanding  to
         which the Company or any Subsidiary is a party or by which any property
         or asset of the  Company or any  Subsidiary  is bound or  affected,  or
         (iii) subject to the Required  Approvals,  conflict with or result in a

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         violation of any law, rule, regulation,  order,  judgment,  injunction,
         decree or other  restriction of any court or governmental  authority to
         which the Company or a  Subsidiary  is subject  (including  federal and
         state  securities  laws and  regulations),  or by which any property or
         asset of the Company or a Subsidiary  is bound or  affected;  except in
         the case of each of clauses  (ii) and (iii),  such as could not have or
         reasonably be expected to result in a Material Adverse Effect.

                  (e)  Filings,  Consents  and  Approvals.  The  Company  is not
         required to obtain any consent, waiver, authorization or order of, give
         any notice to, or make any filing or  registration  with,  any court or
         other federal,  state, local or other  governmental  authority or other
         Person in connection  with the execution,  delivery and  performance by
         the  Company of the  Transaction  Documents,  other than (i) the filing
         with the  Commission  of the  Registration  Statement,  (ii) the notice
         and/or  application(s)  to  each  applicable  Trading  Market  for  the
         issuance  and  sale  of the  Preferred  Stock  and the  listing  of the
         Underlying  Shares for trading  thereon in the time and manner required
         thereby  and (iii) the  filing of Form D with the  Commission  and such
         filings as are required to be made under  applicable  state  securities
         laws (collectively, the "Required Approvals").

                  (f)  Issuance  of the  Securities.  The  Securities  are  duly
         authorized  and,  when  issued  and  paid  for in  accordance  with the
         applicable  Transaction  Documents,  will be duly and  validly  issued,
         fully paid and  nonassessable,  free and clear of all Liens  imposed by
         the Company  other than  restrictions  on transfer  provided for in the
         Transaction Documents. The Underlying Shares, when issued in accordance
         with the terms of the  Transaction  Documents,  will be validly issued,
         fully paid and  nonassessable,  free and clear of all Liens  imposed by
         the Company.  The Company has reserved from its duly authorized capital
         stock a number of shares of Common Stock for issuance of the Underlying
         Shares at least equal to the Common  Stock that would  result from full
         conversion of all Preferred  Stock on the date hereof.  The Company has
         not, and to the  knowledge of the Company,  no Affiliate of the Company
         has sold,  offered  for sale or  solicited  offers to buy or  otherwise
         negotiated  in respect of any  security (as defined in Section 2 of the
         Securities  Act) that would be integrated with the offer or sale of the
         Securities  in a manner that would require the  registration  under the
         Securities Act of the sale of the Securities to the Purchasers, or that
         would be  integrated  with  the  offer  or sale of the  Securities  for
         purposes of the rules and regulations of any Trading Market.

                  (g)  Capitalization.  The  capitalization of the Company is as
         set forth in the Disclosure  Schedules.  The Company has not issued any
         capital  stock other than  pursuant to the  exercise of employee  stock
         options under the Company's stock option plans,  the issuance of shares
         of Common Stock to employees  pursuant to the Company's  employee stock
         purchase plan and pursuant to the conversion or exercise of outstanding
         Common  Stock  Equivalents.  No Person has any right of first  refusal,
         preemptive  right,  right of  participation,  or any  similar  right to
         participate  in  the  transactions   contemplated  by  the  Transaction
         Documents. Except as set forth in the Disclosure Schedules, as a result
         of the purchase and sale of the  Securities,  there are no  outstanding
         options,  warrants, script rights to subscribe to, calls or commitments
         of any  character  whatsoever  relating  to, or  securities,  rights or
         obligations  convertible into or exchangeable for, or giving any Person

                                       10
<PAGE>

         any right to subscribe for or acquire,  any shares of Common Stock,  or
         contracts,  commitments,  understandings  or  arrangements by which the
         Company or any  Subsidiary  is or may become bound to issue  additional
         shares  of  Common  Stock,  or  securities  or  rights  convertible  or
         exchangeable  into shares of Common Stock. The issuance and sale of the
         Securities  will not  obligate  the  Company to issue  shares of Common
         Stock or other securities to any Person (other than the Purchasers) and
         will not result in a right of any Stockholder of Company  securities to
         adjust the  exercise,  conversion,  exchange  or reset price under such
         securities.  All of the  outstanding  shares  of  capital  stock of the
         Company are validly  issued,  fully paid and  nonassessable,  have been
         issued in compliance  with all federal and state  securities  laws, and
         none  of  such  outstanding  shares  was  issued  in  violation  of any
         preemptive  rights or  similar  rights  to  subscribe  for or  purchase
         securities.  No further  approval or  authorization of any Stockholder,
         the Board of  Directors  of the Company or others is  required  for the
         issuance and sale of the Securities.

                  (h) Financial Statements.  The audited financial statements of
         the Company as of and for the periods ended  December 31, 2003 and 2002
         have been prepared in accordance with United States generally  accepted
         accounting  principles applied on a consistent basis during the periods
         involved  ("GAAP"),  except  as  may be  otherwise  specified  in  such
         financial   statements  and  except  that  such   unaudited   financial
         statements  may not contain all footnotes  required by GAAP, and fairly
         present in all material respects the financial  position of the Company
         and its  consolidated  subsidiaries as of and for the dates thereof and
         the results of  operations  and cash flows for the periods  then ended,
         subject, in the case of unaudited  statements,  to normal,  immaterial,
         year-end audit adjustments.

                  (i) Material  Changes.  Except as described in the  Disclosure
         Schedules,  since the date of the latest fiscal year (i) there has been
         no  event,  occurrence  or  development  that  has  had or  that  could
         reasonably be expected to result in a Material Adverse Effect, (ii) the
         Company has not  incurred any  liabilities  (contingent  or  otherwise)
         other than (A) trade  payables  and  accrued  expenses  incurred in the
         ordinary  course of  business  consistent  with past  practice  and (B)
         liabilities  not required to be reflected  in the  Company's  financial
         statements  pursuant  to GAAP,  (iii) the  Company  has not altered its
         method of  accounting,  (iv) the Company  has not  declared or made any
         dividend or distribution of cash or other property to its  Stockholders
         or purchased, redeemed or made any agreements to purchase or redeem any
         shares of its  capital  stock and (v) the  Company  has not  issued any
         equity  securities  to  any  officer,  director  or  Affiliate,  except
         pursuant to existing Company stock option plans.

                  (j)  Litigation.  Other  than as set  forth in the  Disclosure
         Schedules,  there is no action,  suit,  inquiry,  notice of  violation,
         proceeding  or  investigation  pending  or,  to  the  knowledge  of the
         Company, threatened against or affecting the Company, any Subsidiary or
         any of their respective properties before or by any court,  arbitrator,
         governmental or administrative agency or regulatory authority (federal,
         state, county, local or foreign) (collectively,  an "Action") which (i)
         adversely   affects   or   challenges   the   legality,   validity   or
         enforceability of any of the Transaction Documents or the Securities or
         (ii) could, if there were an unfavorable  decision,  have or reasonably
         be expected to result in a Material Adverse Effect. Neither the Company

                                       11
<PAGE>

         nor any Subsidiary, nor any director or officer thereof, is or has been
         the  subject  of any  Action  involving  a  claim  of  violation  of or
         liability  under federal or state  securities laws or a claim of breach
         of  fiduciary  duty.  There has not been,  and to the  knowledge of the
         Company, there is not pending or contemplated, any investigation by the
         Commission  involving the Company or any current or former  director or
         officer of the Company.

                  (k) Labor  Relations.  No material labor dispute exists or, to
         the  knowledge of the Company,  is imminent  with respect to any of the
         employees of the Company  which could  reasonably be expected to result
         in a Material Adverse Effect.

                  (l) Compliance.  Neither the Company nor any Subsidiary (i) is
         in default under or in violation of (and no event has occurred that has
         not been  waived  that,  with  notice  or lapse of time or both,  would
         result in a default by the Company or any  Subsidiary  under),  nor has
         the Company or any Subsidiary  received notice of a claim that it is in
         default  under or that it is in violation  of, any  indenture,  loan or
         credit  agreement or any other agreement or instrument to which it is a
         party or by which it or any of its  properties is bound (whether or not
         such default or violation has been waived), (ii) is in violation of any
         order of any court,  arbitrator  or  governmental  body, or (iii) is in
         violation  of any  statute,  rule  or  regulation  of any  governmental
         authority, including without limitation all foreign, federal, state and
         local laws  applicable to its business except in each case as could not
         have a Material Adverse Effect.

                  (m)  Regulatory  Permits.  The  Company  and the  Subsidiaries
         possess all  certificates,  authorizations  and  permits  issued by the
         appropriate  federal,  state, local or foreign  regulatory  authorities
         necessary  to conduct  their  respective  businesses,  except where the
         failure  to  possess  such  permits  could  not have or  reasonably  be
         expected to result in a Material Adverse Effect  ("Material  Permits"),
         and neither the Company nor any  Subsidiary  has received any notice of
         proceedings  relating to the revocation or modification of any Material
         Permit.

                  (n) Title to Assets.  The  Company and the  Subsidiaries  have
         good and  marketable  title in fee simple to all real property owned by
         them  that  is  material  to  the  business  of  the  Company  and  the
         Subsidiaries  and good and  marketable  title in all personal  property
         owned by them that is material  to the  business of the Company and the
         Subsidiaries,  in each  case free and clear of all  Liens,  except  for
         Liens as do not materially affect the value of such property and do not
         materially  interfere with the use made and proposed to be made of such
         property by the Company and the  Subsidiaries and Liens for the payment
         of  federal,  state or other  taxes,  the  payment  of which is neither
         delinquent  nor subject to penalties.  Any real property and facilities
         held under lease by the Company and the  Subsidiaries  are held by them
         under valid, subsisting and enforceable leases of which the Company and
         the Subsidiaries are in compliance.

                  (o) Patents and Trademarks.  The Company and the  Subsidiaries
         have,  or  have  rights  to  use,  all  patents,  patent  applications,
         trademarks,   trademark  applications,   service  marks,  trade  names,
         copyrights, licenses and other similar rights necessary or material for

                                       12
<PAGE>

         use in  connection  with  their  respective  businesses  and  which the
         failure to so have could have a Material Adverse Effect  (collectively,
         the  "Intellectual  Property  Rights").  Neither  the  Company  nor any
         Subsidiary has received a written notice that the Intellectual Property
         Rights used by the Company or any Subsidiary violates or infringes upon
         the rights of any Person.  To the  knowledge of the  Company,  all such
         Intellectual  Property  Rights are enforceable and there is no existing
         infringement  by  another  Person of any of the  Intellectual  Property
         Rights of others.

                  (p) Insurance. The Company and the Subsidiaries are insured by
         insurers of recognized financial responsibility against such losses and
         risks  and  in  such  amounts  as  are  prudent  and  customary  in the
         businesses  in which the  Company  and the  Subsidiaries  are  engaged,
         including, but not limited to, directors and officers insurance. To the
         best of Company's knowledge,  such insurance contracts and policies are
         accurate and complete.  Neither the Company nor any  Subsidiary has any
         reason  to  believe  that it will  not be able to  renew  its  existing
         insurance  coverage  as and when  such  coverage  expires  or to obtain
         similar  coverage from similar insurers as may be necessary to continue
         its business without a significant increase in cost.

                  (q) Transactions With Affiliates and Employees.  Except as set
         forth in the Disclosure Schedules, none of the officers or directors of
         the Company and, to the knowledge of the Company, none of the employees
         of the Company is presently a party to any transaction with the Company
         or any Subsidiary  (other than for services as employees,  officers and
         directors),  including  any  contract,  agreement or other  arrangement
         providing for the furnishing of services to or by, providing for rental
         of real  or  personal  property  to or  from,  or  otherwise  requiring
         payments to or from any officer,  director or such  employee or, to the
         knowledge of the Company, any entity in which any officer, director, or
         any  such  employee  has a  substantial  interest  or  is  an  officer,
         director,  trustee or partner,  in each case in excess of $50,000 other
         than  (i) for  payment  of  salary  or  consulting  fees  for  services
         rendered,  (ii)  reimbursement  for expenses  incurred on behalf of the
         Company and (iii) for other employee  benefits,  including stock option
         agreements under any stock option plan of the Company.

                  (r) Intentionally Omitted.

                  (s) Certain Fees.  Except for fees owed to Duncan  Capital LLC
         and/or the Wright Group in relation to this  Offering,  no brokerage or
         finder's fees or  commissions  are or will be payable by the Company to
         any broker,  financial advisor or consultant,  finder, placement agent,
         investment   banker,   bank  or  other   Person  with  respect  to  the
         transactions  contemplated by this Agreement. The Purchasers shall have
         no  obligation  with  respect to any fees or with respect to any claims
         made by or on behalf of other  Persons for fees of a type  contemplated
         in this Section  that may be due in  connection  with the  transactions
         contemplated by this Agreement.

                  (t) Private Placement. Assuming the accuracy of the Purchasers
         representations   and   warranties   set  forth  in  Section   3.2,  no
         registration  under the  Securities  Act is required  for the offer and

                                       13
<PAGE>

         sale of the Securities by the Company to the Purchasers as contemplated
         hereby.  The issuance  and sale of the  Securities  hereunder  does not
         contravene the rules and regulations of the Trading Market.

                  (u)  Investment  Company.  The  Company is not,  and is not an
         Affiliate  of,  and  immediately  after  receipt  of  payment  for  the
         Securities,  will not be or be an Affiliate of, an "investment company"
         within the meaning of the  Investment  Company Act of 1940, as amended.
         The Company  shall conduct its business in a manner so that it will not
         become subject to the Investment Company Act.

                  (v) Registration Rights. Except as set forth on the Disclosure
         Schedules,  and other than the  Purchasers,  no Person has any right to
         cause the Company to effect the  registration  under the Securities Act
         of any securities of the Company.

                  (w) Intentionally Omitted.

                  (x) Intentionally Omitted.

                  (y)  Disclosure.  All  disclosure  provided to the  Purchasers
         regarding the Company,  its business and the transactions  contemplated
         hereby, including the Disclosure Schedules to this Agreement, furnished
         by or on behalf of the Company with respect to the  representations and
         warranties  made  herein  are true and  correct  with  respect  to such
         representations  and warranties and do not contain any untrue statement
         of a material  fact or omit to state any  material  fact  necessary  in
         order  to  make  the   statements   made  therein,   in  light  of  the
         circumstances  under which they were made, not misleading.  The Company
         acknowledges  and  agrees  that no  Purchaser  makes  or has  made  any
         representations   or  warranties  with  respect  to  the   transactions
         contemplated  hereby other than those specifically set forth in Section
         3.2 hereof.

                  (z) No  Integrated  Offering.  Assuming  the  accuracy  of the
         Purchasers'  representations  and  warranties set forth in Section 3.2,
         neither the Company,  nor any of its affiliates,  nor 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 this offering of the Securities to
         be integrated  with prior  offerings by the Company for purposes of the
         Securities  Act  or any  applicable  Stockholder  approval  provisions,
         including,  without limitation,  under the rules and regulations of any
         exchange or automated  quotation  system on which any of the securities
         of the Company are listed or designated.

                  (aa) Intentionally Omitted.

                  (bb)  Tax  Status.   Except  for   matters   that  would  not,
         individually  or in the  aggregate,  have or  reasonably be expected to
         result in a Material  Adverse  Effect,  the Company and each Subsidiary
         has filed all necessary federal, state and foreign income and franchise
         tax returns and has paid or accrued all taxes shown as due thereon, and
         the  Company  has no  knowledge  of a tax  deficiency  which  has  been
         asserted or threatened against the Company or any Subsidiary.

                                       14
<PAGE>

                  (cc) No General  Solicitation.  Neither  the  Company  nor any
         person  acting on behalf of the  Company has offered or sold any of the
         Securities by any form of general  solicitation or general advertising.
         The Company has offered the  Securities for sale only to the Purchasers
         and certain other "accredited investors" within the meaning of Rule 501
         under the Securities Act.

                  (dd) Foreign Corrupt  Practices.  Neither the Company,  nor to
         the  knowledge  of the  Company,  any agent or other  person  acting on
         behalf of the Company, has (i) directly or indirectly, used any corrupt
         funds  for  unlawful  contributions,   gifts,  entertainment  or  other
         unlawful  expenses related to foreign or domestic  political  activity,
         (ii) made any  unlawful  payment  to  foreign  or  domestic  government
         officials or employees or to any foreign or domestic  political parties
         or campaigns from corporate  funds,  (iii) failed to disclose fully any
         contribution  made by the Company (or made by any person  acting on its
         behalf of which the Company is aware)  which is in violation of law, or
         (iv)  violated in any  material  respect any  provision  of the Foreign
         Corrupt Practices Act of 1977, as amended.

                  (ee) Accountants.  Knockout is in the process of retaining BDO
         Seidman, LLP as its accountants. Knockout expects that such accountants
         will express their opinion with respect to the financial  statements of
         Knockout for the year ended December 31, 2003 and will provide a review
         of the financial  statements of Knockout for the period ended September
         30, 2004.

                  (ff) Intentionally Omitted.

                  (gg) Intentionally Omitted.

                  (hh)   Acknowledgment   Regarding   Purchasers'   Purchase  of
         Securities.  The  Company  acknowledges  and  agrees  that  each of the
         Purchasers  is  acting  solely  in  the  capacity  of an  arm's  length
         purchaser   with  respect  to  the   Transaction   Documents   and  the
         transactions contemplated hereby. The Company further acknowledges that
         no  Purchaser  is acting as a  financial  advisor or  fiduciary  of the
         Company (or in any similar capacity) with respect to this Agreement and
         the  transactions  contemplated  hereby  and any  advice  given  by any
         Purchaser  or any of their  respective  representatives  or  agents  in
         connection with this Agreement and the transactions contemplated hereby
         is merely incidental to the Purchasers' purchase of the Securities. The
         Company  further  represents  to  each  Purchaser  that  the  Company's
         decision  to enter into this  Agreement  has been  based  solely on the
         independent  evaluation of the transactions  contemplated hereby by the
         Company and its representatives.  The Company further acknowledges that
         in  addition  to  purchasing   Securities,   the  Purchasers  or  their
         affiliates  may directly or  indirectly  own Common Stock and Preferred
         Stock in the Company and that such  parties,  exercising  their  rights
         hereunder  may  adversely  impact  their other  holdings as well as the
         other equity Stockholders in the Company.

                                       15
<PAGE>

         3.2  Representations  and Warranties of the Purchasers.  Each Purchaser
hereby, for itself and for no other Purchaser, represents and warrants as of the
date hereof and as of the Closing Date to the Company as follows:

                  (a) Organization;  Authority.  Such Purchaser is an accredited
         investor  and in the case of an entity,  as opposed to and  individual,
         such entity is duly  organized,  validly  existing and in good standing
         under the laws of the jurisdiction of its organization with full right,
         corporate  or  partnership  power and  authority  to enter  into and to
         consummate the transactions  contemplated by the Transaction  Documents
         and otherwise to carry out its obligations  thereunder.  The execution,
         delivery  and  performance  by  such  Purchaser  of  the   transactions
         contemplated  by  this  Agreement  have  been  duly  authorized  by all
         necessary  corporate or similar  action on the part of such  Purchaser.
         Each Transaction Document to which it is a party has been duly executed
         by such  Purchaser,  and when delivered by such Purchaser in accordance
         with the terms hereof,  will  constitute the valid and legally  binding
         obligation of such Purchaser, enforceable against it in accordance with
         its terms,  except (i) as limited by general  equitable  principles and
         applicable bankruptcy, insolvency, reorganization, moratorium and other
         laws of general application  affecting enforcement of creditors' rights
         generally,  (ii) as limited by laws  relating  to the  availability  of
         specific performance, injunctive relief or other equitable remedies and
         (iii) insofar as  indemnification  and  contribution  provisions may be
         limited by applicable law.

                  (b) Purchaser Representation.  Such Purchaser understands that
         the Securities are "restricted securities" and have not been registered
         under the Securities Act or any applicable  state securities law and is
         acquiring the  Securities as principal for its own account and not with
         a view to or for  distributing or reselling such Securities or any part
         thereof,   has  no  present  intention  of  distributing  any  of  such
         Securities  and has no  arrangement  or  understanding  with any  other
         persons   regarding  the   distribution   of  such   Securities   (this
         representation and warranty not limiting such Purchaser's right to sell
         the Securities  pursuant to the Registration  Statement or otherwise in
         compliance with applicable  federal and state  securities  laws).  Such
         Purchaser is acquiring the Securities  hereunder in the ordinary course
         of its  business.  Such  Purchaser  does  not  have  any  agreement  or
         understanding,  directly or  indirectly,  with any Person to distribute
         any of the Securities.

                  (c) Purchaser  Status.  At the time such Purchaser was offered
         the Securities,  it was, and at the date hereof it is, and on each date
         it converts any  Preferred  Stock or exercises  any Warrants it will be
         either:  (i) an  "accredited  investor"  as defined in Rule  501(a)(1),
         (a)(2),  (a)(3),  (a)(7) or (a)(8) under the  Securities  Act or (ii) a
         "qualified  institutional  buyer" as defined in Rule 144A(a)  under the
         Securities  Act.  Such  Purchaser is not required to be registered as a
         broker-dealer under Section 15 of the Exchange Act.

                  (d) Experience of Such Purchaser. Such Purchaser, either alone
         or   together   with   its   representatives,   has   such   knowledge,
         sophistication  and experience in business and financial  matters so as
         to be capable  of  evaluating  the merits and risks of the  prospective
         investment in the Securities, and has so evaluated the merits and risks
         of such investment. Such Purchaser is able to bear the economic risk of

                                       16
<PAGE>

         an  investment in the  Securities  and, at the present time, is able to
         afford a complete loss of such investment.

                  (e) General Solicitation. Such Purchaser is not purchasing the
         Securities as a result of any advertisement,  article,  notice or other
         communication  regarding  the  Securities  published in any  newspaper,
         magazine or similar  media or  broadcast  over  television  or radio or
         presented at any seminar or any other general  solicitation  or general
         advertisement.

                  (f)  Registration  Required.  Each Purchaser  hereby covenants
         with  the  Company  not to  make  any  sale of the  Securities  without
         complying with the  provisions  hereof and of the  Registration  Rights
         Agreement,  and without  effectively  causing the  prospectus  delivery
         requirement  under the  Securities  Act to be  satisfied  (unless  such
         Purchaser is selling such  Securities in a  transaction  not subject to
         the prospectus delivery  requirement),  and such Purchaser acknowledges
         that  the  certificates   evidencing  the  Underlying  Shares  will  be
         imprinted  with a  legend  that  prohibits  their  transfer  except  in
         accordance therewith.

                  The Company  acknowledges  and agrees that each Purchaser does
         not make or has not made any representations or warranties with respect
         to the transactions  contemplated  hereby other than those specifically
         set forth in this Section 3.2.

                                   ARTICLE IV.
                         OTHER AGREEMENTS OF THE PARTIES

         4.1 Transfer Restrictions.

                  (a) The Securities may only be disposed of in compliance  with
         state and federal  securities  laws. In connection with any transfer of
         Securities other than pursuant to an effective  registration  statement
         or Rule 144, to the  Company or to an  affiliate  of a Purchaser  or in
         connection with a pledge as contemplated in Section 4.1(b), the Company
         may require the transferor thereof to provide to the Company an opinion
         of counsel selected by the transferor and reasonably  acceptable to the
         Company,  the form and  substance of which  opinion shall be reasonably
         satisfactory to the Company,  to the effect that such transfer does not
         require   registration  of  such   transferred   Securities  under  the
         Securities Act. As a condition of transfer,  any such transferee  shall
         agree in writing to be bound by the terms of this  Agreement  and shall
         have  the  rights  of  a  Purchaser   under  this   Agreement  and  the
         Registration Rights Agreement.

                  (b) The  Purchasers  agree  to the  imprinting,  so long as is
         required by this Section  4.1(b),  of a legend on any of the Securities
         in the following form:

         NEITHER THESE SECURITIES NOR THE SECURITIES INTO WHICH THESE SECURITIES
         ARE  CONVERTIBLE  HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
         COMMISSION OR THE  SECURITIES  COMMISSION OF ANY STATE IN RELIANCE UPON
         AN EXEMPTION  FROM  REGISTRATION  UNDER THE  SECURITIES ACT OF 1933, AS
         AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR

                                       17
<PAGE>

         SOLD EXCEPT PURSUANT TO AN EFFECTIVE  REGISTRATION  STATEMENT UNDER THE
         SECURITIES  ACT OR PURSUANT TO AN  AVAILABLE  EXEMPTION  FROM,  OR IN A
         TRANSACTION  NOT  SUBJECT  TO,  THE  REGISTRATION  REQUIREMENTS  OF THE
         SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE  STATE SECURITIES LAWS
         AS EVIDENCED BY A LEGAL  OPINION OF COUNSEL TO THE  TRANSFEROR  TO SUCH
         EFFECT,  THE SUBSTANCE OF WHICH SHALL BE  REASONABLY  ACCEPTABLE TO THE
         COMPANY.  THESE SECURITIES AND THE SECURITIES ISSUABLE UPON EXERCISE OF
         THESE  SECURITIES MAY BE PLEDGED IN CONNECTION  WITH A BONA FIDE MARGIN
         ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

                  The Company  acknowledges and agrees that a Purchaser may from
         time to time pledge  pursuant to a bona fide  margin  agreement  with a
         registered broker-dealer or grant a security interest in some or all of
         the  Securities  to a  financial  institution  that  is an  "accredited
         investor"  as defined in Rule 501(a) under the  Securities  Act and who
         agrees  to be  bound  by the  provisions  of  this  Agreement  and  the
         Registration  Rights Agreement and, if required under the terms of such
         arrangement,  such Purchaser may transfer pledged or secured Securities
         to the pledgees or secured parties. Such a pledge or transfer would not
         be subject to approval  of the  Company  and no legal  opinion of legal
         counsel of the pledgee,  secured  party or pledgor shall be required in
         connection  therewith.  Further,  no notice  shall be  required of such
         pledge.  At the  appropriate  Purchaser's  expense,  the  Company  will
         execute  and  deliver  such  reasonable  documentation  as a pledgee or
         secured party of Securities may reasonably request in connection with a
         pledge or transfer of the Securities,  including, if the Securities are
         subject to registration  pursuant to the Registration Rights Agreement,
         the preparation and filing of any required prospectus  supplement under
         Rule 424(b)(3) under the Securities Act or other  applicable  provision
         of the  Securities  Act to  appropriately  amend  the  list of  Selling
         Stockholders thereunder.

                  (c)  Certificates  evidencing the Underlying  Shares shall not
         contain any legend  (including  the legend set forth in Section  4.1(b)
         hereof): (i) while a registration statement (including the Registration
         Statement)  covering the resale of such security is effective under the
         Securities  Act, or (ii) following any sale of such  Underlying  Shares
         pursuant to Rule 144, or (iii) if such  Underlying  Shares are eligible
         for sale  under Rule  144(k),  or (iv) if such  legend is not  required
         under applicable requirements of the Securities Act (including judicial
         interpretations   and  pronouncements   issued  by  the  staff  of  the
         Commission).  The  Company  shall  cause its  counsel  to issue a legal
         opinion to the Company's  transfer  agent  promptly after the Effective
         Date if required by the Company's  transfer agent to effect the removal
         of the legend  hereunder.  If all or any portion of the Preferred Stock
         is converted or exercised  (as  applicable)  at a time when there is an
         effective  registration statement to cover the resale of the Underlying
         Shares,  or if such Underlying  Shares may be sold under Rule 144(k) or
         if such legend is not otherwise required under applicable  requirements

                                       18
<PAGE>

         of the Securities Act (including judicial interpretations thereof) then
         such Underlying Shares shall be issued free of all legends. The Company
         agrees that following the Effective Date or at such time as such legend
         is no longer required under this Section 4.1(c), it will, no later than
         five Trading Days  following the delivery by a Purchaser to the Company
         or  the  Company's   transfer  agent  of  a  certificate   representing
         Underlying  Shares,  as  applicable,  issued with a restrictive  legend
         (such fifth Trading Day, the "Legend Removal  Date"),  deliver or cause
         to be  delivered  to such  Purchaser a  certificate  representing  such
         shares that is free from all restrictive and other legends. The Company
         may not make any  notation on its records or give  instructions  to any
         transfer agent of the Company that enlarge the restrictions on transfer
         set forth in this Section.

                  (d) Each  Purchaser,  severally and not jointly with the other
         Purchasers,  agrees  that the  removal of the  restrictive  legend from
         certificates  representing  Securities as set forth in this Section 4.1
         is predicated upon the Company's  reliance that the Purchaser will sell
         any Securities pursuant to either the registration  requirements of the
         Securities   Act,   including  any   applicable   prospectus   delivery
         requirements, or an exemption therefrom.

         4.2  Acknowledgment  of  Dilution.  The Company  acknowledges  that the
issuance of the Securities may result in dilution of the  outstanding  shares of
Common Stock, which dilution may be substantial under certain market conditions.
The Company  further  acknowledges  that its  obligations  under the Transaction
Documents,  including without  limitation its obligation to issue the Underlying
Shares pursuant to the Transaction Documents, are unconditional and absolute and
not  subject  to any  right  of  set  off,  counterclaim,  delay  or  reduction,
regardless  of the effect of any such dilution or any claim the Company may have
against any Purchaser and  regardless of the dilutive  effect that such issuance
may have on the ownership of the other Stockholders of the Company.

         4.3 Intentionally Omitted.

         4.4 Integration.  The Company shall not sell, offer for sale or solicit
offers to buy or  otherwise  negotiate in respect of any security (as defined in
Section 2 of the Securities Act) that would be integrated with the offer or sale
of the  Securities  in a manner that would  require the  registration  under the
Securities  Act of the sale of the Securities to the Purchasers or that would be
integrated  with the offer or sale of the  Securities  for purposes of the rules
and regulations of any Trading Market.

         4.5 Conversion and Exercise Procedures.  No additional legal opinion or
other information or instructions shall be required of the Purchasers to convert
their  Preferred  Stock or exercise  their  Warrants.  The  Company  shall honor
conversions  of the  Preferred  Stock and  exercise  of the  Warrants  and shall
deliver  Underlying  Shares in accordance  with the terms,  conditions  and time
periods set forth in the Transaction Documents.

         4.6 Intentionally Omitted.

         4.7  Stockholder  Rights Plan. No claim will be made or enforced by the
Company or, to the knowledge of the Company, any other Person that any Purchaser
is an "Acquiring  Person" under any  Stockholder  rights plan or similar plan or
arrangement in effect or hereafter adopted by the Company, or that any Purchaser

                                       19
<PAGE>

could be deemed to trigger the  provisions of any such plan or  arrangement,  by
virtue of  receiving  Securities  under the  Transaction  Documents or under any
other  agreement  between  the  Company and the  Purchasers.  The Company  shall
conduct  its  business  in a manner so that it will not  become  subject  to the
Investment Company Act.

         4.8  Non-Public  Information.  The  Company  covenants  and agrees that
neither it nor any other Person  acting on its behalf will provide any Purchaser
or its  agents  or  counsel  with  any  information  that the  Company  believes
constitutes material non-public information, unless prior thereto such Purchaser
shall have executed a written agreement regarding the confidentiality and use of
such information. The Company understands and confirms that each Purchaser shall
be  relying  on the  foregoing  representations  in  effecting  transactions  in
securities of the Company.

         4.9 Use of Proceeds.  The Company  shall use the net proceeds  from the
sale  of  the  Securities   hereunder   substantially  in  accordance  with  the
description in the Disclosure Schedules attached hereto.

         4.10 Intentionally Omitted.

         4.11  Indemnification of Purchasers.  Subject to the provisions of this
Section  4.11,  the Company will  indemnify  and hold the  Purchasers  and their
directors,  officers,  stockholders,  partners,  employees and agents  (each,  a
"Purchaser Party") harmless from any and all losses,  liabilities,  obligations,
claims,  contingencies,  damages,  costs and expenses,  including all judgments,
amounts paid in  settlements,  court costs and  reasonable  attorneys'  fees and
costs of  investigation  that any such Purchaser  Party may suffer or incur as a
result  of or  relating  to (a)  any  breach  of  any  of  the  representations,
warranties,  covenants or agreements made by the Company in this Agreement or in
the  other  Transaction  Documents  or  (b)  any  action  instituted  against  a
Purchaser, or any of them or their respective Affiliates,  by any stockholder of
the Company who is not an  Affiliate of such  Purchaser,  with respect to any of
the transactions  contemplated by the Transaction  Documents (unless such action
is  based  upon a  breach  of such  Purchaser's  representation,  warranties  or
covenants  under the Transaction  Documents or any agreements or  understandings
such  Purchaser  may have with any such  stockholder  or any  violations  by the
Purchaser of state or federal  securities  laws or any conduct by such Purchaser
which constitutes fraud,  gross negligence,  willful misconduct or malfeasance).
If any action shall be brought  against any Purchaser  Party in respect of which
indemnity may be sought pursuant to this  Agreement,  such Purchaser Party shall
promptly notify the Company in writing,  and the Company shall have the right to
assume the defense thereof with counsel of its own choosing. Any Purchaser Party
shall  have  the  right to  employ  separate  counsel  in any  such  action  and
participate  in the defense  thereof,  but the fees and expenses of such counsel
shall be at the expense of such  Purchaser  Party  except to the extent that (i)
the  employment  thereof  has been  specifically  authorized  by the  Company in
writing, (ii) the Company has failed after a reasonable period of time to assume
such  defense  and to employ  counsel or (iii) in such  action  there is, in the
reasonable opinion of such separate counsel, a material conflict on any material
issue  between the  position of the Company and the  position of such  Purchaser
Party.  The  Company  will not be  liable  to any  Purchaser  Party  under  this
Agreement  (i) for any  settlement  by a Purchaser  Party  effected  without the
Company's prior written  consent,  which shall not be  unreasonably  withheld or
delayed;  or (ii) to the  extent,  but only to the  extent  that a loss,  claim,

                                       20
<PAGE>

damage or liability is  attributable  to any Purchaser  Party's breach of any of
the representations,  warranties, covenants or agreements made by the Purchasers
in this Agreement or in the other Transaction Documents.

         4.12 Reservation of Securities.

                  (a) The  Company  shall  maintain  a  reserve  from  its  duly
         authorized  shares  of  Common  Stock  for  issuance  pursuant  to  the
         Transaction  Documents in such amount as may be required to fulfill its
         obligations  in full under the  Transaction  Documents  (the  "Required
         Minimum").

                  (b) If, on any date,  the number of  authorized  but  unissued
         (and  otherwise  unreserved)  shares of  Common  Stock is less than the
         Required  Minimum  on such  date,  then the Board of  Directors  of the
         Company  shall  use  commercially   reasonable  efforts  to  amend  the
         Company's  certificate  or articles of  incorporation  to increase  the
         number of  authorized  but unissued  shares of Common Stock to at least
         the number of shares of Common  Stock that would  result  from the full
         conversion of the Preferred  Stock and exercise of the Warrants at such
         time,  as soon as possible and in any event not later than the 75th day
         after such date.

         4.13 Intentionally Omitted.

         4.14 Equal Treatment of Purchasers.  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 the Transaction  Documents unless the same  consideration is
also  offered  to  all  of  the  parties  to  the  Transaction  Documents.   For
clarification  purposes,  this provision constitutes a separate right granted to
each Purchaser by the Company and negotiated  separately by each Purchaser,  and
is intended to treat for the Company the Preferred Stock Stockholders as a class
and shall not in any way be construed as the Purchasers  acting in concert or as
a group with respect to the  purchase,  disposition  or voting of  Securities or
otherwise.

         4.15 Most Favored Nation Provision.  Other than an Exempt Issuance,  if
at any time while the Preferred Stock is outstanding,  the Company issues Common
Stock or Common Stock  Equivalents to any Person at a per share or conversion or
exercise  price per  share  which is less than the  Conversion  Price,  then the
Company shall issue, for each such occasion,  additional  shares of Common Stock
to each  Purchaser  so that the  Conversion  Price is equal to such other  lower
price per share.

         4.16 Adjustment to Knockout Offering. The Purchasers hereby acknowledge
and  agree  that  upon  Closing,   investors  in  the  Knockout   Offering  will
automatically receive Warrants to purchase shares of Common Stock of the Company
in accordance with their respective subscription amount on the same terms of the
Warrants as set forth in this Agreement.

                                       21
<PAGE>

                                    ARTICLE V.
                                  MISCELLANEOUS

         5.1 Termination.  This Agreement may be terminated by any Purchaser, by
written notice to the other parties,  if the Closing has not been consummated on
or before January 31, 2005;  provided that no such  termination  will affect the
right of any party to sue for any breach by the other party (or parties).

         5.2 Legal  Fees.  Except  as  expressly  set  forth in the  Transaction
Documents  to the  contrary,  each party shall pay the fees and  expenses of its
advisers, counsel, accountants and other experts, if any, and all other expenses
incurred by such party  incident  to the  negotiation,  preparation,  execution,
delivery and performance of this  Agreement.  The Company shall pay all transfer
agent fees, stamp taxes and other taxes and duties levied in connection with the
issuance of any Securities.

         5.3 Entire  Agreement.  The  Transaction  Documents,  together with the
exhibits and schedules thereto,  contain the entire understanding of the parties
with respect to the subject matter hereof and supersede all prior agreements and
understandings, oral or written, with respect to such matters, which the parties
acknowledge have been merged into such documents, exhibits and schedules.

         5.4 Notices.  Any and all notices or other communications or deliveries
required or permitted to be provided  hereunder shall be in writing and shall be
deemed given and effective on the earliest of (a) the date of  transmission,  if
such notice or  communication is delivered via facsimile at the facsimile number
set forth on the signature  pages  attached  hereto prior to 5:30 p.m. (New York
City  time)  on a  Trading  Day,  (b) the next  Trading  Day  after  the date of
transmission,  if such notice or communication is delivered via facsimile at the
facsimile  number set forth on the signature pages attached hereto on a day that
is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading
Day, (c) the second  Trading Day following the date of mailing,  if sent by U.S.
nationally  recognized  overnight courier service, or (d) upon actual receipt by
the party to whom such  notice is  required  to be given.  The  address for such
notices and communications shall be as set forth on the signature pages attached
hereto.

         5.5 Amendments;  Waivers.  No provision of this Agreement may be waived
or amended except in a written  instrument  signed, in the case of an amendment,
by the  Company  and each  Purchaser  or, in the case of a waiver,  by the party
against whom enforcement of any such waiver is sought.  No waiver of any default
with respect to any provision,  condition or requirement of this Agreement shall
be deemed to be a continuing  waiver in the future or a waiver of any subsequent
default or a waiver of any other provision, condition or requirement hereof, nor
shall any delay or omission of either party to exercise  any right  hereunder in
any manner impair the exercise of any such right.

         5.6 Construction.  The headings herein are for convenience only, do not
constitute a part of this  Agreement  and shall not be deemed to limit or affect
any of the provisions hereof. 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.

         5.7  Successors and Assigns.  This Agreement  shall be binding upon and
inure to the benefit of the parties and their successors and permitted  assigns.
The Company may not assign this Agreement or any rights or obligations hereunder

                                       22
<PAGE>

without the prior written  consent of each  Purchaser.  Any Purchaser may assign
any or all of its  rights  under  this  Agreement  to any  Person  to whom  such
Purchaser  assigns or transfers any Securities,  provided such transferee agrees
in  writing to be bound,  with  respect to the  transferred  Securities,  by the
provisions hereof that apply to the "Purchasers".

         5.8 No  Third-Party  Beneficiaries.  This Agreement is intended for the
benefit of the parties  hereto and their  respective  successors  and  permitted
assigns and is not for the benefit of, nor may any provision  hereof be enforced
by, any other Person, except as otherwise set forth in Section 4.11.

         5.9 Governing Law. All questions concerning the construction, validity,
enforcement and interpretation of the Transaction Documents shall be governed by
and construed and enforced in accordance  with the internal laws of the State of
New York,  without  regard to the  principles of conflicts of law thereof.  Each
party  agrees  that  all  legal  proceedings   concerning  the  interpretations,
enforcement and defense of the  transactions  contemplated by this Agreement and
any other Transaction  Documents  (whether brought against a party hereto or its
respective affiliates,  directors, officers, stockholders,  employees or agents)
shall be commenced  exclusively  in the state and federal  courts sitting in the
City of New  York.  Each  party  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  (including  with respect to the  enforcement  of any of the  Transaction
Documents), and hereby irrevocably waives, and agrees not to assert in any suit,
action  or  proceeding,  any  claim  that it is not  personally  subject  to the
jurisdiction of any such court, that such suit, action or proceeding is improper
or inconvenient venue for such proceeding.  Each party hereby irrevocably waives
personal  service of process and  consents to process  being  served in any such
suit, action or proceeding by mailing a copy thereof via registered or certified
mail or  overnight  delivery  (with  evidence of  delivery) to such party at the
address in effect for  notices to it under this  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. The parties  hereby waive all
rights  to a trial  by jury.  If  either  party  shall  commence  an  action  or
proceeding to enforce any  provisions  of the  Transaction  Documents,  then the
prevailing  party in such action or proceeding  shall be reimbursed by the other
party for its  attorneys'  fees and other costs and expenses  incurred  with the
investigation, preparation and prosecution of such action or proceeding.

         5.10 Survival.  The  representations  and warranties  contained  herein
shall survive the Closing and the delivery,  exercise  and/or  conversion of the
Securities, as applicable for the applicable statue of limitations.

         5.11  Execution.  This  Agreement  may  be  executed  in  two  or  more
counterparts,  all of which when taken  together shall be considered one and the
same agreement and shall become effective when  counterparts have been signed by
each party and  delivered  to the other  party,  it being  understood  that both
parties need not sign the same  counterpart.  In the event that any signature is
delivered by facsimile  transmission,  such  signature  shall create a valid and

                                       23
<PAGE>

binding  obligation of the party executing (or on whose behalf such signature is
executed)  with the same force and effect as if such  facsimile  signature  page
were an original thereof.

         5.12  Severability.  If any  provision of this  Agreement is held to be
invalid or unenforceable in any respect,  the validity and enforceability of the
remaining  terms  and  provisions  of  this  Agreement  shall  not in any way be
affected or impaired  thereby and the parties will attempt to agree upon a valid
and enforceable provision that is a reasonable substitute therefor,  and upon so
agreeing, shall incorporate such substitute provision in this Agreement.

         5.13 Rescission and Withdrawal Right.  Notwithstanding  anything to the
contrary  contained in (and  without  limiting  any similar  provisions  of) the
Transaction  Documents,  whenever  any  Purchaser  exercises a right,  election,
demand or option  under a  Transaction  Document and the Company does not timely
perform its related  obligations within the periods therein provided,  then such
Purchaser may rescind or withdraw, in its sole discretion from time to time upon
written notice to the Company, any relevant notice,  demand or election in whole
or in part  without  prejudice  to its  future  actions  and  rights;  provided,
however, in the case of a rescission of a conversion of the Preferred Stock, the
Purchaser  shall be required to return any shares of Common Stock subject to any
such rescinded conversion or exercise notice.

         5.14  Replacement  of  Securities.  If any  certificate  or  instrument
evidencing any Securities is mutilated,  lost, stolen or destroyed,  the Company
shall  issue or cause to be issued in  exchange  and  substitution  for and upon
cancellation thereof, or in lieu of and substitution therefor, a new certificate
or instrument,  but only upon receipt of evidence reasonably satisfactory to the
Company  of such  loss,  theft  or  destruction  and  customary  and  reasonable
indemnity,  if requested.  The  applicants  for a new  certificate or instrument
under  such  circumstances  shall  also  pay any  reasonable  third-party  costs
associated with the issuance of such replacement Securities.

         5.15  Remedies.  In addition to being  entitled to exercise  all rights
provided herein or granted by law,  including  recovery of damages,  each of the
Purchasers  and the Company will be entitled to specific  performance  under the
Transaction  Documents.  The  parties  agree that  monetary  damages  may not be
adequate  compensation  for  any  loss  incurred  by  reason  of any  breach  of
obligations  described in the  foregoing  sentence and hereby agrees to waive in
any action for specific  performance  of any such  obligation the defense that a
remedy at law would be adequate.

         5.16 Intentionally Omitted.

         5.17 Intentionally Omitted.

         5.18  Independent  Nature of Purchasers'  Obligations  and Rights.  The
obligations of each Purchaser under any Transaction Document are several and not
joint with the  obligations of any other  Purchaser,  and no Purchaser  shall be
responsible  in any way for the  performance  of the  obligations  of any  other
Purchaser under any Transaction  Document.  Nothing  contained  herein or in any
Transaction  Document,  and no action taken by any Purchaser  pursuant  thereto,
shall be deemed to constitute the Purchasers as a partnership, an association, a

                                       24
<PAGE>

joint  venture  or any other kind of entity,  or create a  presumption  that the
Purchasers  are in any way acting in concert or as a group with  respect to such
obligations or the transactions  contemplated by the Transaction Document.  Each
Purchaser  shall be  entitled to  independently  protect and enforce its rights,
including without  limitation the rights arising out of this Agreement or out of
the other  Transaction  Documents,  and it shall not be necessary  for any other
Purchaser  to be  joined  as an  additional  party  in any  proceeding  for such
purpose.  Each Purchaser has been  represented by its own separate legal counsel
in their review and  negotiation of the  Transaction  Documents.  For reasons of
administrative  convenience only,  Purchasers and their respective  counsel have
chosen to  communicate  with the Company  through  Duncan  Capital  LLC.  Duncan
Capital  LLC does not  represent  all of the  Purchasers  but only  itself.  The
Company  has  elected  to  provide  all  Purchasers  with  the  same  terms  and
Transaction  Documents for the convenience of the Company and not because it was
required or requested to do so by the Purchasers.

         5.19 Liquidated Damages.  The Company's  obligations to pay any partial
liquidated  damages or other amounts owing under the Transaction  Documents is a
continuing  obligation of the Company and shall not  terminate  until all unpaid
partial liquidated damages and other amounts have been paid  notwithstanding the
fact that the instrument or security  pursuant to which such partial  liquidated
damages or other amounts are due and payable shall have been canceled.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       25
<PAGE>

         IN WITNESS  WHEREOF,  the parties  hereto  have caused this  Securities
Purchase   Agreement  to  be  duly  executed  by  their  respective   authorized
signatories as of the date first indicated above.

UNITED NETWORK MARKETING SERVICES, INC.       Address for Notice:
                                              -------------------

/s/ John Bellamy                              100 W. Whitehall Ave.
------------------------------
Name: John Bellamy                            Northlake, IL 60164
Title: Chief Executive Officer

                                              Telephone: (708) 273-6900
                                              Facsimile: (708) 273-6901

With a copy to (which shall not
constitute notice):

Sichenzia Ross Friedman Ference LLP
1065 Avenue of the Americas
New York, NY 10018                            Telephone: (212) 930-9700
                                              Facsimile: (212) 930-9725

                                              Attention: Gregory Sichenzia, Esq.

                   [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                      SIGNATURE PAGE FOR PURCHASER FOLLOWS]

                                       26
<PAGE>

[PURCHASER SIGNATURE PAGES TO UNITED NETWORK MARKETING SERVICES, INC. SECURITIES
                               PURCHASE AGREEMENT]

         IN  WITNESS  WHEREOF,  the  undersigned  have  caused  this  Securities
Purchase   Agreement  to  be  duly  executed  by  their  respective   authorized
signatories as of the date first indicated above.

Name of Investor: Dr. Donald Adams
                  --------------------------------------------------------------
Signature of Authorized Signatory(if Investor is an Entity): /s/ Donald E. Adams
                                                             -------------------
Name of Authorized Signatory:
                              --------------------------------------------------
Title of Authorized Signatory:
                               -------------------------------------------------
Email Address of Authorized Entity:
                                    --------------------------------------------

Address for Notice of Investor:

Address for Delivery of Securities for Investor (if not same as above):

Subscription Amount: $50,000
Shares of Preferred Stock: 1,066
Warrants: 17,056
Social Security Number (EIN Number if Investor is an Entity):

                           [SIGNATURE PAGES CONTINUE]

                                       27
<PAGE>

[PURCHASER SIGNATURE PAGES TO UNITED NETWORK MARKETING SERVICES, INC. SECURITIES
                               PURCHASE AGREEMENT]

         IN  WITNESS  WHEREOF,  the  undersigned  have  caused  this  Securities
Purchase   Agreement  to  be  duly  executed  by  their  respective   authorized
signatories as of the date first indicated above.

Name of Investor: Daniel Borislow
                  --------------------------------------------------------------
Signature of Authorized Signatory(if Investor is an Entity): /s/ Daniel Borislow
                                                             -------------------
Name of Authorized Signatory:
                              --------------------------------------------------
Title of Authorized Signatory:
                               -------------------------------------------------
Email Address of Authorized Entity:
                                    --------------------------------------------

Address for Notice of Investor:
830 S. Ocean Blvd
Palm Beach, FL  33480

Address for Delivery of Securities for Investor (if not same as above):

Subscription Amount:  $200,000
Shares of Preferred Stock: 4,264
Warrants:  68,224
Social Security Number (EIN Number if Investor is an Entity):

                           [SIGNATURE PAGES CONTINUE]

                                       27
<PAGE>

[PURCHASER SIGNATURE PAGES TO UNITED NETWORK MARKETING SERVICES, INC. SECURITIES
                               PURCHASE AGREEMENT]

         IN  WITNESS  WHEREOF,  the  undersigned  have  caused  this  Securities
Purchase   Agreement  to  be  duly  executed  by  their  respective   authorized
signatories as of the date first indicated above.

Name of Investor: Christian Brunschweiler       Erica Brunschweiler
                  --------------------------------------------------------------
Signature of Authorized Signatory(if Investor is an Entity):
                                                    /s/ Christian Brunschweiler
                                                    ----------------------------
                                                    /s/ Erica Brunschweiler
                                                    ----------------------------
Name of Authorized Signatory:
                              --------------------------------------------------
Title of Authorized Signatory:
                               -------------------------------------------------
Email Address of Authorized Entity:
                                    --------------------------------------------

Address for Notice of Investor:

Address for Delivery of Securities for Investor (if not same as above):

Subscription Amount: $50,000
Shares of Preferred Stock: 1,066
Warrants: 17,056
Social Security Number (EIN Number if Investor is an Entity):

                           [SIGNATURE PAGES CONTINUE]

                                       27
<PAGE>

[PURCHASER SIGNATURE PAGES TO UNITED NETWORK MARKETING SERVICES, INC. SECURITIES
                               PURCHASE AGREEMENT]

         IN  WITNESS  WHEREOF,  the  undersigned  have  caused  this  Securities
Purchase   Agreement  to  be  duly  executed  by  their  respective   authorized
signatories as of the date first indicated above.

Name of Investor: Tristan Kim
                  --------------------------------------------------------------
Signature of Authorized Signatory(if Investor is an Entity): /s/ Tristan Kim
                                                             -------------------
Name of Authorized Signatory:
                              --------------------------------------------------
Title of Authorized Signatory:
                               -------------------------------------------------
Email Address of Authorized Entity: Tristan.kim@yahoo.com
                                    --------------------------------------------

Address for Notice of Investor:
110 Dutchtown Harlingen Road
Belle Mead, NJ 08502

Address for Delivery of Securities for Investor (if not same as above):

Subscription Amount:  $25,000
Shares of Preferred Stock:  533
Warrants:  8,528
Social Security Number (EIN Number if Investor is an Entity):

                           [SIGNATURE PAGES CONTINUE]

                                       27
<PAGE>

[PURCHASER SIGNATURE PAGES TO UNITED NETWORK MARKETING SERVICES, INC. SECURITIES
                               PURCHASE AGREEMENT]

         IN  WITNESS  WHEREOF,  the  undersigned  have  caused  this  Securities
Purchase   Agreement  to  be  duly  executed  by  their  respective   authorized
signatories as of the date first indicated above.

Name of Investor: MSR Consultants, Inc.
                  --------------------------------------------------------------
Signature of Authorized Signatory(if Investor is an Entity): /s/ Michael Rakusin
                                                             -------------------
Name of Authorized Signatory: Michael Rakusin
                              --------------------------------------------------
Title of Authorized Signatory:
                               -------------------------------------------------
Email Address of Authorized Entity:
                                    --------------------------------------------

Address for Notice of Investor:

Address for Delivery of Securities for Investor (if not same as above):

Subscription Amount:  $80,000
Shares of Preferred Stock:  1,706
Warrants:  27,296
Social Security Number (EIN Number if Investor is an Entity):

                           [SIGNATURE PAGES CONTINUE]

                                       27
<PAGE>

[PURCHASER SIGNATURE PAGES TO UNITED NETWORK MARKETING SERVICES, INC. SECURITIES
                               PURCHASE AGREEMENT]

         IN  WITNESS  WHEREOF,  the  undersigned  have  caused  this  Securities
Purchase   Agreement  to  be  duly  executed  by  their  respective   authorized
signatories as of the date first indicated above.

Name of Investor: Dr. Dave Ruggieri & Victoria Ruggieri
                  --------------------------------------------------------------
Signature of Authorized Signatory(if Investor is an Entity): /s/ Dave Ruggieri
                                                             -------------------
                                                           /s/ Victoria Ruggieri
                                                           ---------------------
Name of Authorized Signatory:
                              --------------------------------------------------
Title of Authorized Signatory:
                               -------------------------------------------------
Email Address of Authorized Entity:
                                    --------------------------------------------

Address for Notice of Investor:

Address for Delivery of Securities for Investor (if not same as above):

Subscription Amount: $50,000
Shares of Preferred Stock:  1,066
Warrants:  17,056
Social Security Number (EIN Number if Investor is an Entity):

                           [SIGNATURE PAGES CONTINUE]

                                       27
<PAGE>

[PURCHASER SIGNATURE PAGES TO UNITED NETWORK MARKETING SERVICES, INC. SECURITIES
                               PURCHASE AGREEMENT]

         IN  WITNESS  WHEREOF,  the  undersigned  have  caused  this  Securities
Purchase   Agreement  to  be  duly  executed  by  their  respective   authorized
signatories as of the date first indicated above.

Name of Investor: Stanley Skriloff
                  --------------------------------------------------------------
Signature of Authorized Signatory(if Investor is an Entity):
                                                            /s/ Stanley Skriloff
                                                            --------------------
Name of Authorized Signatory:
                              --------------------------------------------------
Title of Authorized Signatory:
                               -------------------------------------------------
Email Address of Authorized Entity: stan@broadwayfamous.com
                                    --------------------------------------------

Address for Notice of Investor:
320 West 78th Street, Apt 1R
New York,  NY  10024

Address for Delivery of Securities for Investor (if not same as above):

Subscription Amount: $10,000
Shares of Preferred Stock:  213
Warrants: 3,408
Social Security Number (EIN Number if Investor is an Entity):

                           [SIGNATURE PAGES CONTINUE]

                                       27
<PAGE>

[PURCHASER SIGNATURE PAGES TO UNITED NETWORK MARKETING SERVICES, INC. SECURITIES
                               PURCHASE AGREEMENT]

         IN  WITNESS  WHEREOF,  the  undersigned  have  caused  this  Securities
Purchase   Agreement  to  be  duly  executed  by  their  respective   authorized
signatories as of the date first indicated above.

Name of Investor: TCMP3 Partners
                  --------------------------------------------------------------
Signature of Authorized Signatory(if Investor is an Entity):
                                                           /s/ Steven E. Slawson
                                                           ---------------------
Name of Authorized Signatory: Steven E. Slawson
                              --------------------------------------------------
Title of Authorized Signatory: Principal
                               -------------------------------------------------
Email Address of Authorized Entity: sslawson@titancap.org
                                    --------------------------------------------

Address for Notice of Investor:
Titan Capital Management
7 Century Drive, Suite 201
Parsippany,  NJ  07054

Address for Delivery of Securities for Investor (if not same as above):

Subscription Amount:  $150,000
Shares of Preferred Stock:  3,199
Warrants:  51,184
Social Security Number (EIN Number if Investor is an Entity):

                           [SIGNATURE PAGES CONTINUE]

                                       27
<PAGE>

[PURCHASER SIGNATURE PAGES TO UNITED NETWORK MARKETING SERVICES, INC. SECURITIES
                               PURCHASE AGREEMENT]

         IN  WITNESS  WHEREOF,  the  undersigned  have  caused  this  Securities
Purchase   Agreement  to  be  duly  executed  by  their  respective   authorized
signatories as of the date first indicated above.

Name of Investor: Joseph Serrano & Pilar Serrano
                  --------------------------------------------------------------
Signature of Authorized Signatory(if Investor is an Entity): /s/ Joseph Serrano
                                                             -------------------
                                                             /s/ Pilar Serrano
                                                             -------------------
Name of Authorized Signatory:
                              --------------------------------------------------
Title of Authorized Signatory:
                              --------------------------------------------------
Email Address of Authorized Entity:
                                    --------------------------------------------

Address for Notice of Investor:

Address for Delivery of Securities for Investor (if not same as above):

Subscription Amount: $20,000
Shares of Preferred Stock: 427
Warrants: 6,832
Social Security Number (EIN Number if Investor is an Entity):

                           [SIGNATURE PAGES CONTINUE]

                                       27
<PAGE>

[PURCHASER SIGNATURE PAGES TO UNITED NETWORK MARKETING SERVICES, INC. SECURITIES
                              PURCHASE AGREEMENT]

         IN  WITNESS  WHEREOF,  the  undersigned  have  caused  this  Securities
Purchase   Agreement  to  be  duly  executed  by  their  respective   authorized
signatories as of the date first indicated above.

Name of Investor: Peter Sivaslian & Lillian Sivaslian
                  --------------------------------------------------------------
Signature of Authorized Signatory(if Investor is an Entity): /s/ Peter Sivaslian
                                                             -------------------
                                                           /s/ Lillian Sivaslian
                                                           ---------------------
Name of Authorized Signatory:
                              --------------------------------------------------
Title of Authorized Signatory:
                               -------------------------------------------------
Email Address of Authorized Entity:
                                   ---------------------------------------------

Address for Notice of Investor:

Address for Delivery of Securities for Investor (if not same as above):

Subscription Amount:  $95,000
Shares of Preferred Stock:  2,026
Warrants:  32,416
Social Security Number (EIN Number if Investor is an Entity):

                           [SIGNATURE PAGES CONTINUE]

                                       27
<PAGE>

[PURCHASER SIGNATURE PAGES TO UNITED NETWORK MARKETING SERVICES, INC. SECURITIES
                               PURCHASE AGREEMENT]

         IN  WITNESS  WHEREOF,  the  undersigned  have  caused  this  Securities
Purchase   Agreement  to  be  duly  executed  by  their  respective   authorized
signatories as of the date first indicated above.

Name of Investor: Seth Tobias
                  --------------------------------------------------------------
Signature of Authorized Signatory(if Investor is an Entity): /s/ Seth Tobias
                                                             -------------------
Name of Authorized Signatory:
                              --------------------------------------------------
Title of Authorized Signatory:
                               -------------------------------------------------
Email Address of Authorized Entity:
                                    --------------------------------------------

Address for Notice of Investor:
Seth Tobias
c/o Tobias Brothers
157 East 53rd Street, Suite 5503
New York,  NY  10022

Address for Delivery of Securities for Investor (if not same as above):

Subscription Amount: $100,000
Shares of Preferred Stock: 2,133
Warrants:  34,128
Social Security Number (EIN Number if Investor is an Entity):

                           [SIGNATURE PAGES CONTINUE]

                                       27
<PAGE>

[PURCHASER SIGNATURE PAGES TO UNITED NETWORK MARKETING SERVICES, INC. SECURITIES
                               PURCHASE AGREEMENT]

         IN  WITNESS  WHEREOF,  the  undersigned  have  caused  this  Securities
Purchase   Agreement  to  be  duly  executed  by  their  respective   authorized
signatories as of the date first indicated above.

Name of Investor: Tricia Tobias
                  --------------------------------------------------------------
Signature of Authorized Signatory(if Investor is an Entity): /s/ Tricia Tobias
                                                             -------------------
Name of Authorized Signatory:
                              --------------------------------------------------
Title of Authorized Signatory:
                               -------------------------------------------------
Email Address of Authorized Entity:
                                    --------------------------------------------

Address for Notice of Investor:
131 Garfield Avenue
Avon,  NJ  07717

Address for Delivery of Securities for Investor (if not same as above):

Subscription Amount:  $15,000
Shares of Preferred Stock: 320
Warrants:  5,120
Social Security Number (EIN Number if Investor is an Entity):

                           [SIGNATURE PAGES CONTINUE]

                                       27
<PAGE>

[PURCHASER SIGNATURE PAGES TO UNITED NETWORK MARKETING SERVICES, INC. SECURITIES
                               PURCHASE AGREEMENT]

         IN  WITNESS  WHEREOF,  the  undersigned  have  caused  this  Securities
Purchase   Agreement  to  be  duly  executed  by  their  respective   authorized
signatories as of the date first indicated above.

Name of Investor: Herbert Welch
                  --------------------------------------------------------------
Signature of Authorized Signatory(if Investor is an Entity): /s/ Herbert Welch
                                                             -------------------
Name of Authorized Signatory:
                              --------------------------------------------------
Title of Authorized Signatory:
                               -------------------------------------------------
Email Address of Authorized Entity:
                                    --------------------------------------------

Address for Notice of Investor:

Address for Delivery of Securities for Investor (if not same as above):

Subscription Amount:  $50,000
Shares of Preferred Stock: 1,066
Warrants:  17,056
Social Security Number (EIN Number if Investor is an Entity):

                           [SIGNATURE PAGES CONTINUE]

                                       27
<PAGE>

[PURCHASER SIGNATURE PAGES TO UNITED NETWORK MARKETING SERVICES, INC. SECURITIES
                               PURCHASE AGREEMENT]

         IN  WITNESS  WHEREOF,  the  undersigned  have  caused  this  Securities
Purchase   Agreement  to  be  duly  executed  by  their  respective   authorized
signatories as of the date first indicated above.

Name of Investor: Cornell Capital Partners, LP
                  --------------------------------------------------------------
Signature of Authorized Signatory(if Investor is an Entity): /s/ Mark Angelo
                                                             -------------------
Name of Authorized Signatory: Mark Angelo
                              --------------------------------------------------
Title of Authorized Signatory: Portfolio Manager of Yorkville Advisors, LLC, the
                               General Partner of the Investor
                               -------------------------------------------------
Email Address of Authorized Entity: mangelo@cornellcapital.com
                                    --------------------------------------------

Address for Notice of Investor:
         101 Hudson Street, Suite 3700
         Jersey City, NJ 07302

Address for Delivery of Securities for Investor (if not same as above):

Subscription Amount:  $300,000
Shares of Preferred Stock:  6,398
Warrants:  102,368
Social Security Number (EIN Number if Investor is an Entity):

                           [SIGNATURE PAGES CONTINUE]

                                       27
<PAGE>

[PURCHASER SIGNATURE PAGES TO UNITED NETWORK MARKETING SERVICES, INC. SECURITIES
                               PURCHASE AGREEMENT]

         IN  WITNESS  WHEREOF,  the  undersigned  have  caused  this  Securities
Purchase   Agreement  to  be  duly  executed  by  their  respective   authorized
signatories as of the date first indicated above.

Name of Investor: Highgate House Funds, Ltd.
                  --------------------------------------------------------------
Signature of Authorized Signatory(if Investor is an Entity): /s/ Mark Angelo
                                                             -------------------
Name of Authorized Signatory: Mark Angelo
                              --------------------------------------------------
Title of Authorized Signatory:
                              --------------------------------------------------
Email Address of Authorized Entity: mangelo@cornellcapital.com
                                    --------------------------------------------

Address for Notice of Investor:

Address for Delivery of Securities for Investor (if not same as above):
         101 Hudson Street, Suite 3700
         Jersey City, NJ 07302

Subscription Amount:  $300,000
Shares of Preferred Stock:  6,398
Warrants:  102,368
Social Security Number (EIN Number if Investor is an Entity):

                           [SIGNATURE PAGES CONTINUE]

                                       27
<PAGE>

[PURCHASER SIGNATURE PAGES TO UNITED NETWORK MARKETING SERVICES, INC. SECURITIES
                               PURCHASE AGREEMENT]

         IN  WITNESS  WHEREOF,  the  undersigned  have  caused  this  Securities
Purchase   Agreement  to  be  duly  executed  by  their  respective   authorized
signatories as of the date first indicated above.

Name of Investor: Scott DiClaudio
                  --------------------------------------------------------------
Signature of Authorized Signatory(if Investor is an Entity): /s/ Scott DiClaudio
                                                             -------------------
Name of Authorized Signatory:
                              --------------------------------------------------
Title of Authorized Signatory:
                               -------------------------------------------------
Email Address of Authorized Entity:
                                    --------------------------------------------

Address for Notice of Investor:
         109 Sawgrass Drive
         Blue Bell, PA 19422

Address for Delivery of Securities for Investor (if not same as above):

Subscription Amount: $30,000
Shares of Preferred Stock: 640
Warrants: 10,240
Social Security Number (EIN Number if Investor is an Entity):

                           [SIGNATURE PAGES CONTINUE]

                                       27
<PAGE>

[PURCHASER SIGNATURE PAGES TO UNITED NETWORK MARKETING SERVICES, INC. SECURITIES
                               PURCHASE AGREEMENT]

         IN  WITNESS  WHEREOF,  the  undersigned  have  caused  this  Securities
Purchase   Agreement  to  be  duly  executed  by  their  respective   authorized
signatories as of the date first indicated above.

Name of Investor: Mary V. Hayes
                  --------------------------------------------------------------
Signature of Authorized Signatory(if Investor is an Entity): /s/ Mary V. Hayes
                                                             -------------------
Name of Authorized Signatory:
                              --------------------------------------------------
Title of Authorized Signatory:
                               -------------------------------------------------
Email Address of Authorized Entity:
                                    --------------------------------------------

Address for Notice of Investor:
         912 Cornell Avenue
         Drexel Hill, PA 19026

Address for Delivery of Securities for Investor (if not same as above):

Subscription Amount: $10,000
Shares of Preferred Stock: 213
Warrants: 3,408
Social Security Number (EIN Number if Investor is an Entity):

                           [SIGNATURE PAGES CONTINUE]

                                       27
<PAGE>

[PURCHASER SIGNATURE PAGES TO UNITED NETWORK MARKETING SERVICES, INC. SECURITIES
                               PURCHASE AGREEMENT]

         IN  WITNESS  WHEREOF,  the  undersigned  have  caused  this  Securities
Purchase   Agreement  to  be  duly  executed  by  their  respective   authorized
signatories as of the date first indicated above.

Name of Investor: SGN
                  --------------------------------------------------------------
Signature of Authorized Signatory(if Investor is an Entity): /s/ Gina M. Reutter
                                                             -------------------
Name of Authorized Signatory: Gina M. Reutter
                              --------------------------------------------------
Title of Authorized Signatory: Vice-President
                               -------------------------------------------------
Email Address of Authorized Entity: ginareutter@aol.com
                                    --------------------------------------------

Address for Notice of Investor:
         276 Ticonderogo Blvd
         Freehold, NJ 07728

Address for Delivery of Securities for Investor (if not same as above):

Subscription Amount: $20,000
Shares of Preferred Stock: 427
Warrants: 6,832
Social Security Number (EIN Number if Investor is an Entity):

                           [SIGNATURE PAGES CONTINUE]

                                       27
<PAGE>

[PURCHASER SIGNATURE PAGES TO UNITED NETWORK MARKETING SERVICES, INC. SECURITIES
                               PURCHASE AGREEMENT]

         IN  WITNESS  WHEREOF,  the  undersigned  have  caused  this  Securities
Purchase   Agreement  to  be  duly  executed  by  their  respective   authorized
signatories as of the date first indicated above.

Name of Investor: Robert W. VanHellemont
                  --------------------------------------------------------------
Signature of Authorized Signatory(if Investor is an Entity):
                                                      /s/ Robert W. VanHellemont
                                                      --------------------------
Name of Authorized Signatory:
                              --------------------------------------------------
Title of Authorized Signatory:
                               -------------------------------------------------
Email Address of Authorized Entity: RVANHELLEMONT@VARILEASE.COM
                                    --------------------------------------------

Address for Notice of Investor:
         200 Barton Ave
         Palm Beach, FL 33480

Address for Delivery of Securities for Investor (if not same as above):

Subscription Amount: $50,000
Shares of Preferred Stock: 1,066
Warrants: 17,056
Social Security Number (EIN Number if Investor is an Entity):

                           [SIGNATURE PAGES CONTINUE]

                                       27
<PAGE>

[PURCHASER SIGNATURE PAGES TO UNITED NETWORK MARKETING SERVICES, INC. SECURITIES
                               PURCHASE AGREEMENT]

         IN  WITNESS  WHEREOF,  the  undersigned  have  caused  this  Securities
Purchase   Agreement  to  be  duly  executed  by  their  respective   authorized
signatories as of the date first indicated above.

Name of Investor: Marc Sherman
                  --------------------------------------------------------------
Signature of Authorized Signatory(if Investor is an Entity): /s/ Marc Sherman
                                                             -------------------
Name of Authorized Signatory:
                              --------------------------------------------------
Title of Authorized Signatory:
                               -------------------------------------------------
Email Address of Authorized Entity: Marc Sherman@QSQI.com
                                    --------------------------------------------

Address for Notice of Investor:
         400 Roya Palmway Suite 302
         Palm Beach, FL 33480

Address for Delivery of Securities for Investor (if not same as above):

Subscription Amount: $50,000 USD
Shares of Preferred Stock: 1,066
Warrants: 17,056
Social Security Number (EIN Number if Investor is an Entity):

                           [SIGNATURE PAGES CONTINUE]

                                       27
<PAGE>

[PURCHASER SIGNATURE PAGES TO UNITED NETWORK MARKETING SERVICES, INC. SECURITIES
                               PURCHASE AGREEMENT]

         IN  WITNESS  WHEREOF,  the  undersigned  have  caused  this  Securities
Purchase   Agreement  to  be  duly  executed  by  their  respective   authorized
signatories as of the date first indicated above.

Name of Investor: Thomas W. Jones
                  --------------------------------------------------------------
Signature of Authorized Signatory(if Investor is an Entity): /s/ Thomas W. Jones
                                                             -------------------
Name of Authorized Signatory:
                              --------------------------------------------------
Title of Authorized Signatory:
                                ------------------------------------------------
Email Address of Authorized Entity: twjones@optonline.net
                                    --------------------------------------------

Address for Notice of Investor:
         400 Roya Palmway Suite 302
         Palm Beach, FL 33480

Address for Delivery of Securities for Investor (if not same as above):

Subscription Amount: $500,000
Shares of Preferred Stock: 10,663
Warrants: 170,608
Social Security Number (EIN Number if Investor is an Entity):

                           [SIGNATURE PAGES CONTINUE]

                                       27
<PAGE>

[PURCHASER SIGNATURE PAGES TO UNITED NETWORK MARKETING SERVICES, INC. SECURITIES
                               PURCHASE AGREEMENT]

         IN  WITNESS  WHEREOF,  the  undersigned  have  caused  this  Securities
Purchase   Agreement  to  be  duly  executed  by  their  respective   authorized
signatories as of the date first indicated above.

Name of Investor: Chris Baker
                  --------------------------------------------------------------
Signature of Authorized Signatory(if Investor is an Entity): /s/ Chris Baker
                                                             -------------------
Name of Authorized Signatory:
                              --------------------------------------------------
Title of Authorized Signatory:
                               -------------------------------------------------
Email Address of Authorized Entity: Marc Sherman@QSQI.com
                                    --------------------------------------------

Address for Notice of Investor:
         400 Roya Palmway Suite 302
         Palm Beach, FL 33480

Address for Delivery of Securities for Investor (if not same as above):

Subscription Amount: $55,000
Shares of Preferred Stock: 1,173
Warrants: 18,768
Social Security Number (EIN Number if Investor is an Entity):

                           [SIGNATURE PAGES CONTINUE]

                                       27
<PAGE>
<PAGE>

                              DISCLOSURE SCHEDULES
                                       TO
                          SECURITIES PURCHASE AGREEMENT

(Prepared in connection with Series B Preferred Stock sold by the Company to the
Purchasers under the Securities  Purchase  Agreement dated January 17, 2005 (the
"2005  Securities  Purchase  Agreement").  Capitalized  terms not defined herein
shall  have the  meaning  given to such  terms in the 2005  Securities  Purchase
Agreement.)

                                JANUARY 17, 2005

<PAGE>

                                 SCHEDULE 3.1(A)

                                  SUBSIDIARIES

         The Knockout Group, Inc., a Delaware corporation ("Knockout")

<PAGE>

                                 SCHEDULE 3.1(G)

                                 CAPITALIZATION

         The  Company's  authorized  capital  consists of  20,000,000  shares of
common  stock,  par value $.001 per share,  and  1,000,000  shares of  preferred
stock,  par value $.001 per share,  of which 865,000 shares have been designated
as Series A Convertible  Preferred Stock and 135,000 shares have been designated
as Series B Convertible  Preferred  Stock. As of the date of the Agreement,  the
Company has  8,165,752  shares of common stock  outstanding,  855,980  shares of
Series A Convertible  Preferred  Stock  outstanding  and zero shares of Series B
Convertible Preferred Stock outstanding.

         After the Company amends its Certificate of  Incorporation to authorize
the issuance of a sufficient number of shares of common stock so that all shares
of Series A Convertible  Preferred  Stock may be fully  converted,  the Series A
Convertible  Preferred  Stock  will  immediately  convert  into  fully  paid and
nonassessable  shares of common  stock of the Company in an amount  equal to the
stated  value  of such  Series  A  Convertible  Preferred  Stock,  which  equals
$46.8933, divided by $.2931, subject to adjustment.

<PAGE>

                                 SCHEDULE 3.1(I)

                                MATERIAL CHANGES

         In September  2004,  Knockout  issued a $600,000  principal  amount 10%
promissory  note (the  "$600K  Note") to Galt  Ventures.  The $600K  Note  bears
interest at 10% per annum from the date the  principal  amount of the $600K Note
is advanced to Knockout  until  Knockout pays the $600K Note in full. All unpaid
principal  and  interest  on the $600K Note is due and payable on the earlier of
(i) December 23, 2004 or (ii) the date that Knockout has raised  $2,500,000 from
the sale of securities.

         In September 2004,  Knockout issued a $1,000,000  principal  amount 10%
promissory  note (the "$1M Note") to Galt Ventures.  The $1M Note bears interest
at 10% per annum from the date the principal  amount of the $1M Note is advanced
to Knockout until  Knockout pays the $1M Note in full. All unpaid  principal and
interest  on the $1M Note is due and  payable on the earlier of April 1, 2005 or
the date of exercise of the Warrants.

         In November 2004, Knockout sold a $500,000 principal amount convertible
note (the "500K Note") to the Taylor  Group.  The term of the $500K Note is nine
months.  The  principal of the $500K Note is  convertible  into 83,463 shares of
common  stock of  Knockout.  In  connection  with the  sale of the  $500K  Note,
Knockout  issued  the  Taylor  Group  warrants  to  purchase  43,546  shares  of
Knockout's common stock at an exercise price of $0.01 per share.

         Seven  of  Knockout's   employees  and  one   consultant   have  family
relationships  with John  Bellamy,  Knockout's  Chief  Executive  Officer  and a
Director.

         In  recognition  of the service and  assistance  provided by Knockout's
Board members, key management personnel,  and key consultants,  Knockout's Board
of Directors authorized and approved the following transactions:

         Re-priced the exercise  price of options to purchase  134,000 shares of
Knockout's  common  stock to $0.01 per share  issued to Dr.  Isaac  Horton.  Dr.
Horton  is a  member  of  Knockout's  Board of  Directors  and a  Consultant  to
Knockout.

         Re-priced  the exercise  price of options to purchase  84,875 shares of
Knockout's  common stock to $0.01 per share issued to Tony Weiss. Mr. Weiss is a
member of the Knockout's Board of Directors.

         Re-priced  the exercise  price of options to purchase  71,598 shares of
Knockout's common stock to $0.01 per share issued to Cole Peterson. Mr. Peterson
is a member of Knockout's Board of Directors.

<PAGE>

         Re-priced the exercise price of warrants to purchase  390,100 shares of
Knockout's  common  stock  to  $0.01  per  share  issued  to  Kevin  Waltzer  in
consideration for agreeing to certain amendments to terms of Knockout's Series A
Preferred  Stock in favor of investors in Knockout's  Series C Preferred  Stock.
Mr. Waltzer is the holder of Knockout's outstanding Series A Preferred Stock and
is also a member of Knockout's Board of Directors.

         Re-priced the exercise  price of warrants to purchase  37,500 shares of
Knockout's   common  stock  to  $0.01  per  share  issued  to  David  Rights  in
consideration  for  agreeing to certain  amendments  to the terms of  Knockout's
Series B Preferred Stock in favor of investors in Knockout's  Series C Preferred
Stock. Mr. Rights is a holder of Knockout's outstanding Series B Preferred Stock
and is also a member of Knockout's Board of Directors.

         Re-priced the exercise  price of options to purchase  108,620 shares of
Knockout's common stock to $0.01 per share issued to Oscar Turner. Mr. Turner is
Knockout's  Chief  Financial  Officer  and  a  member  of  Knockout's  Board  of
Directors.

         Re-priced  the exercise  price of options to purchase  67,888 shares of
Knockout's common stock to $0.01 per share issued to Ahmed Shaikh. Mr. Shaikh is
Knockout's Chief Operating Officer.

<PAGE>

                                 SCHEDULE 3.1(J)

                                   LITIGATION

         None.

<PAGE>

                                 SCHEDULE 3.1(Q)

                   TRANSACTIONS WITH AFFILIATES AND EMPLOYEES

         Knockout  has  retained  Artistic   Communication   Center  ("ACC"),  a
multi-media video and audio production company, to produce Knockout's  household
and  automotive  infomercials  for  television  broadcast.   Knockout's  current
contract with ACC provides  that ACC will be  compensated  at "cost,  plus 10%."
Through September 30, 2004, Knockout has paid a total of $894,000 to ACC for two
infomercials.   Knockout's  Chief  Executive  Officer,  John  Bellamy,  has  the
principal ownership position of ACC.

         In consideration  for the assignment of pending  trademarks and pending
patents to  Knockout,  Knockout  has agreed to pay Dr.  Isaac  Horton a total of
$400,000 as follows:  $200,000 by December 31, 2004 and the  remaining  $200,000
over the following twelve months. Knockout also issued Dr. Horton 354,608 shares
of common  stock as partial  consideration  for the  assignment  of the  pending
trademarks and pending patents. In addition,  Dr. Horton acts as a consultant to
Knockout's  executive  officers,  advising  Knockout  on  fundraising,   quality
control, product development,  business strategy, licensing, patent development,
and personnel  matters.  As part of his agreement with Knockout,  Dr. Horton has
agreed not to develop  or  contribute  any  intellectual  property  to any other
company,  either now or in the future,  that competes in the "cleaning" products
segment.  Dr. Horton's  consulting  services are billed to Knockout at an hourly
rate of $350.00 per hour.  Notwithstanding this hourly rate, Knockout has agreed
to pay Dr.  Horton a minimum  amount of $2,500 per month.  Dr.  Horton is also a
member of Knockout's Board of Directors.

         In  recognition  of the service and  assistance  provided by Knockout's
Board members, key management personnel,  and key consultants,  Knockout's Board
of Directors authorized and approved the following transactions:

         Re-priced the exercise  price of options to purchase  134,000 shares of
Knockout's  common  stock to $0.01 per share  issued to Dr.  Isaac  Horton.  Dr.
Horton  is a  member  of  Knockout's  Board of  Directors  and a  Consultant  to
Knockout.

         Re-priced  the exercise  price of options to purchase  84,875 shares of
Knockout's  common stock to $0.01 per share issued to Tony Weiss. Mr. Weiss is a
member of the Knockout's Board of Directors.

         Re-priced  the exercise  price of options to purchase  71,598 shares of
Knockout's common stock to $0.01 per share issued to Cole Peterson. Mr. Peterson
is a member of Knockout's Board of Directors.

         Re-priced the exercise price of warrants to purchase  390,100 shares of
Knockout's  common  stock  to  $0.01  per  share  issued  to  Kevin  Waltzer  in
consideration for agreeing to certain amendments to terms of Knockout's Series A
Preferred  Stock in favor of investors in Knockout's  Series C Preferred  Stock.
Mr. Waltzer is the holder of Knockout's outstanding Series A Preferred Stock and
is also a member of Knockout's Board of Directors.

<PAGE>

         Re-priced the exercise  price of warrants to purchase  37,500 shares of
Knockout's   common  stock  to  $0.01  per  share  issued  to  David  Rights  in
consideration  for  agreeing to certain  amendments  to the terms of  Knockout's
Series B Preferred Stock in favor of investors in Knockout's  Series C Preferred
Stock. Mr. Rights is a holder of Knockout's outstanding Series B Preferred Stock
and is also a member of Knockout's Board of Directors.

         Re-priced the exercise  price of options to purchase  108,620 shares of
Knockout's common stock to $0.01 per share issued to Oscar Turner. Mr. Turner is
Knockout's  Chief  Financial  Officer  and  a  member  of  Knockout's  Board  of
Directors.

         Re-priced  the exercise  price of options to purchase  67,888 shares of
Knockout's common stock to $0.01 per share issued to Ahmed Shaikh. Mr. Shaikh is
Knockout's Chief Operating Officer.

<PAGE>

                                 SCHEDULE 3.1(V)

                               REGISTRATION RIGHTS

         The following Persons have the right to cause the Company to effect the
registration under the Securities Act of securities of the Company:

         Pursuant to an  Investor  Rights  Agreement  dated June 30,  2004,  any
holder or holders who, in the aggregate hold not less than 25% of Knockout's (i)
Series A Preferred  Stock (or Common Stock into which  Series A Preferred  Stock
has been  converted),  (ii) Series B Preferred Stock (or Common Stock into which
Series B Preferred Stock has been converted) and (iii) Common Stock held by John
Bellamy,   upon  written  request,   may  require  the  Company  to  effect  the
registration of such securities on a "best efforts" basis.

         Pursuant to a Registration  Rights  Agreement  entered into in December
2004, the Company must register with the Securities and Exchange  Commission the
common stock that was issued upon conversion of Knockout's  Series C Convertible
Preferred Stock. Immediately before the Merger, all of the outstanding shares of
Knockout's Series C Convertible Preferred Stock were converted into common stock
of Knockout.  Upon effectiveness of the Merger,  this common stock was exchanged
for  Series  A  Preferred  Stock  of  the  Company.  The  Company  must  file  a
registration  statement  to register  the common  stock of the  Company  that is
beneficially  owned by the  prior  owners  of  Knockout's  Series C  Convertible
Preferred  Stock and which was  acquired as a result of the  conversion  of such
Series C Convertible Preferred Stock.

         The Company has agreed to include  250,000 shares of common stock owned
by Kenneth Levy in the next  registration  statement  that the Company  files on
Form SB-2.

<PAGE>

SCHEDULE 4.9

                                 USE OF PROCEEDS

         The following use of proceeds  table assumes  receipt by the Company of
gross proceeds of $6,000,000.

                  Use of Proceeds                      Amount
                  ---------------                    ----------
                  Placement Agent Fees               $  300,000
                  Repayment of Debt                  $  600,000
                  Legal and Accounting Fees          $  100,000
                  Other Transaction Costs            $   32,600
                  Marketing                          $2,500,000
                  Inventory                          $2,000,000
                  Operations                         $  467,400

                  TOTAL                              $6,000,000Exhibit 4.2

                          REGISTRATION RIGHTS AGREEMENT

         This Registration Rights Agreement (this "AGREEMENT") is made and
entered into as of January 17, 2005, by and among UNITED NETWORK MARKETING
SERVICES, INC. (the "COMPANY"), and the investors signatory hereto (each a
"PURCHASER" and collectively, the "PURCHASERS").

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

         The Company and the Purchasers hereby agree as follows:

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

         "CLOSING DATE" shall have the meaning of such term as set forth in the
Purchase Agreement.

          "COMMON STOCK" means the common stock, $.001 par value, of the
Company.

         "CONVERTIBLE PREFERRED STOCK" means the Series B Convertible Preferred
Stock issued by the Company to the Purchasers pursuant to the Purchase
Agreement.

         "EFFECTIVENESS DATE" means, with respect to the Registration Statement
required to be filed pursuant to Section 2(a), the earlier of (a) the 90th
calendar day from the Filing Date (or the 120th day if reviewed by the
Commission), and (b) the date on which the Commission declares the effectiveness
of the Registration Statement.

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

         "FILING DATE" means, with respect to the Registration Statement
required to be filed hereunder, the date ninety (90) calendar days from the
Closing Date.

         "HOLDER" or "HOLDERS" means the holder or holders, as the case may be,
from time to time of Registrable Securities (including any permitted assignee).

         "HOLDERS' REPRESENTATIVE" means Duncan Capital LLC, or any other person
that has been appointed by the Holders of a majority of the Registrable
Securities to act as representative of the Holders for purposes of this
Agreement.

         "INDEMNIFIED PARTY" shall have the meaning set forth in Section 5(c).

         "INDEMNIFYING PARTY" shall have the meaning set forth in Section 5(c).

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

<PAGE>

          "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 issuable upon
any conversion of the Convertible Preferred Stock and exercise of the Warrants,
and any stock split, dividend or other distribution, recapitalization or similar
event with respect to the foregoing.

         "REGISTRATION STATEMENT" means the registration statements required to
be filed hereunder, including (in each case) the Prospectus, amendments and
supplements to the 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 the registration
statement.

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

         "TRADING DAY" means (i) a day on which the Common Stock is traded or
quoted on a Trading Market, or (ii) if the Common Stock is not traded or quoted
on a Trading Market, a day on which the Common Stock is quoted in the
over-the-counter market as reported by the National Quotation Bureau
Incorporated (or any similar organization or agency succeeding to its functions
of reporting price); provided, that in the event that the Common Stock is not
traded or quoted as set forth in (i), and (ii) hereof, that Trading Day shall
mean a Business Day.

         "WARRANTS" means the warrants issued by the Company to the Purchasers
pursuant to the Purchase Agreement.

         2. Registration.

                  (a) Mandatory Registration. No later than the Filing Date, the
Company shall prepare and file with the Commission the Registration Statement
covering the resale of all of the Registrable Securities which a Holder has
requested to be included in such Registration Statement and for which such

                                      -2-
<PAGE>

Holder has provided the Company with a completed Selling Securityholder
Questionnaire, which offering shall be made on a continuous basis pursuant to
Rule 415. The Registration Statement required hereunder shall be on Form SB-2
(or other applicable form). The Registration Statement required hereunder shall
contain (except if otherwise directed by the Holders) the "PLAN OF DISTRIBUTION"
substantially in the form attached hereto as ANNEX A (which may be modified as
required by the Securities Act and the rules and regulations thereunder and to
respond to comments, if any, received by the Commission). The Company shall use
its commercially reasonable efforts to cause the Registration Statement to be
declared effective under the Securities Act as promptly as possible after the
filing thereof and shall use its commercially reasonable efforts to keep the
Registration Statement continuously effective under the Securities Act until the
date when all Registrable Securities covered by the Registration Statement (a)
have been sold pursuant to the Registration Statement or an exemption from the
registration requirements of the Securities Act or (b) may be sold without any
volume or other restrictions pursuant to Rule 144(k) (the "EFFECTIVENESS
PERIOD").

                  (b) Filing Default Liquidation Damages. If a Registration
Statement is not filed on or prior to the Filing Date, then the Company shall
pay to each Holder an amount in cash until the earlier of the date a
Registration Statement is filed and the Registrable Securities may be sold
pursuant to Rule 144(k), as liquidated damages and not as a penalty, equal to
(i) one (1%) percent of the aggregate purchase price paid by such Holder
pursuant to the Purchase Agreement for the first thirty (30) days (or a pro rata
portion of one (1%) percent for any part thereof) following the Company's
failure to file, and (ii) an additional one (1%) percent of the aggregate
purchase paid by such Holder thereunder for each thirty (30) day period
subsequent thereto (or a pro rata portion of one (1%) percent for any part
thereof), such payment(s) to be made in immediately available funds no later
than five (5) business days after the first date of each thirty (30) day period
(or any part thereof), as the case may be, during the Company's failure to file.

                  (c) Effectiveness Default Liquidation Damages. In addition to
any liquidated damages paid, accrued and/or to be paid pursuant to Section 2(b),
if (1) a Registration Statement is not declared effective on or prior to ninety
(90) days from the Filing Date (or one hundred twenty (120) days if reviewed by
the Commission), or (2) if a Registration Statement has been declared effective
and subsequent thereto is not effective for any period of time until the date no
Holder owns any Registrable Securities (an "EFFECTIVENESS DEFAULT"), then the
Company shall pay to each Holder an amount in cash until the date a Registration
Statement is declared effective (and permits the resale of the Registrable
Securities covered thereby)(or if previously declared effective until the date
the Registration Statement becomes effective (and otherwise permits the resale
of the Registrable Securities covered thereby) again), as liquidated damages and
not as a penalty, equal to (i) one (1%) percent of the aggregate purchase price
paid by such Holder pursuant to the Purchase Agreement for the first thirty (30)
days (or a pro rata portion of one percent (1%) for any part thereof), and (ii)
an additional one percent (1%) of the aggregate purchase price paid by such
Holder thereunder for each thirty (30) day period subsequent thereto (or a pro
rata portion of one percent (1%) for any part thereof) until the earlier of (a)
such date the Registration Statement is declared effective (or if previously
declared effective until the date the Registration Statement becomes effective
(and otherwise permits the resale of the Registrable Securities covered thereby)
again), and (b) the Registrable Securities may be sold pursuant to Rule 144(k);
provided, however, for purposes of this subsection (c), it shall not be
considered an Effectiveness Default during any such period in which there is a
Material Development Condition (as defined below) which is permitted pursuant to

                                      -3-
<PAGE>

Section 6(o). Any such payment(s) shall be made in immediately available funds
no later than five (5) days after the first day of each 30 day period of each
such Effectiveness Default.

                  (d) Piggyback Registrations Rights.

                           (i) If, at any time during the Effectiveness Period,
         there is not an effective Registration Statement covering all of the
         Registrable Securities (other than the Registrable Securities of a
         Holder that failed to comply with its obligations under Section 2(d) or
         Section 3(j)), 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 or consultant benefit
         plans), then the Company shall send to each Holder a written notice of
         such determination and, if within ten (10) days after receipt by a
         Holder, the Company shall receive a request in writing from any such
         Holder, the Company shall include in such registration statement all or
         any part of such Registrable Securities such Holder requests to be
         registered; provided, however, that (A) if, at any time after giving
         written notice of its intention to register any securities and prior to
         the effective date of the registration statement filed in connection
         with such registration, the Company determines for any reason not to
         proceed with such registration, the Company will be relieved of its
         obligation to register any Registrable Securities in connection with
         such registration, and (B) in case of a determination by the Company to
         delay registration of its securities, the Company will be permitted to
         delay the registration of Registrable Securities for the same period as
         the delay in registering such other securities, in any such case
         without any obligation or liability to any Holder. Any Holder who
         elects to include Registrable Securities in a registration statement
         pursuant to this Section 2(d) shall sell such Registrable Securities on
         the same terms and conditions as the equity securities of the Company
         or others (other than other Holders) are being sold pursuant to such
         registration statement. Notwithstanding the foregoing, nothing in this
         Section 2(d) shall permit the Company to file a registration statement
         in contravention of the restrictions in Section 6(b).

                           (ii) Notwithstanding anything in this Section 2(d) to
         the contrary, with respect to any registration described in this
         Section 2(d) that is an underwritten registration of the Company's
         securities for the Company's own account, if the managing underwriter
         advises the Company that the inclusion of some or all of the
         Registrable Securities requested to be included in such registration
         would interfere with the successful marketing (including pricing) of
         the equity securities of the Company to be registered by the Company,
         then the number of shares to be included in any such registration shall
         be included in the following order: (A) first, the shares to be
         registered by the Company; and (B) second, the Registrable Securities
         of the Holders requested to be included in such registration pursuant
         to Section 2(d)(i), on a pro-rata basis based on the Holders'
         respective percentage ownership of the Company on a fully-diluted
         basis, and (C) third, Registrable Securities of all other holders who

                                      -4-
<PAGE>

         are entitled to include securities in such registration, on a pro-rata
         basis based on such holders' respective percentage ownership of the
         Company on a fully-diluted basis.

                           (iii) Notwithstanding anything in this Section 2(d)
         to the contrary, with respect to any registration described in this
         Section 2(d) that is an underwritten registration of the Company's
         securities for the account of other holders of such securities ("the
         "Demanding Holders"), if the managing underwriter advises the Company
         that the inclusion of some or all of the Registrable Securities
         requested to be included in such registration pursuant to clause (i) of
         this Section 2(d) would interfere with the successful marketing
         (including pricing) of the equity securities of the Company to be
         registered by the Company, then the number of shares to be included in
         any such registration shall be included in the following order: (A)
         first, the securities of the Demanding Holders, (B) second, the
         Registrable Securities of the Holders requested to be included in such
         registration pursuant to Section 2(d)(i), on a pro-rata basis based on
         the Holders' respective percentage ownership of the Company on a
         fully-diluted basis, (C) third, any shares to be registered by the
         Company for its own account, and (D) fourth, Registrable Securities of
         all other holders who are entitled to include securities in such
         registration, on a pro-rata basis based on such holders' respective
         percentage ownership of the Company on a fully-diluted basis.

                  (e) Sufficient Number of Shares Registered. In the event the
number of shares of Common Stock covered under a Registration Statement filed
pursuant to Section 2(a) or Section 2(d) is insufficient to cover all of the
Registrable Securities which such Registration Statement is required to cover,
the Company shall amend the Registration Statement, or file a new Registration
Statement (on the short form available therefor, if applicable), or both, so as
to cover at least 100% of the Registrable Securities, in each case, as soon as
practicable, but in any event not later than ten (10) business days after the
necessity therefor arises. The Company shall use its commercially reasonable
efforts to cause such amendment and/or new Registration Statement to become
effective as soon as practicable following the filing thereof.

                  (f) Participation in Underwritten Registrations. No Holder may
participate in any underwritten registration with respect to the Registrable
Securities unless such Holder completes and executes all questionnaires, powers
of attorney, indemnities, underwriting agreements, lock-up letters and other
documents reasonably required under the terms of such underwriting agreements.

(g) Other Requirements. In connection with any Registration Statement under
Section 2(a) or any registration statement under Section 2(d), Holders whose
Registrable Securities are included therein shall provide such information and
shall execute and deliver to the Company such documents, including, but not
limited to, a selling securityholder questionnaire in customary form and
substance reasonably satisfactory to the Company, as the Company may reasonably
request in order to effect such registration pursuant to this Agreement and in
accordance with applicable securities laws.

         3. Registration Procedures. In connection with the Company's
registration obligations hereunder, the Company shall:

                                      -5-
<PAGE>

                  (a) Not less than three (3) Trading Days prior to the filing
of the Registration Statement or any related Prospectus or any amendment or
supplement thereto, (i) furnish to the Holders' Representative copies of all
such documents substantially in the form proposed to be filed (including
documents incorporated or deemed incorporated by reference to the extent
requested by such Person) which documents will be subject to the review of the
Holders' Representative, and (ii) subject, if appropriate, to the execution of
confidentiality agreements in form acceptable to the Company, cause its officers
and directors, counsel and independent certified public accountants to respond
to such inquiries as shall be necessary, in the reasonable opinion of respective
counsel to conduct a reasonable investigation within the meaning of the
Securities Act.

                  (b) (i) Prepare and file with the Commission such amendments,
including post-effective amendments, to the Registration Statement and the
Prospectus used in connection therewith as may be necessary to keep the
Registration Statement continuously effective as to the applicable Registrable
Securities for the Effectiveness Period; (ii) cause the related Prospectus to be
amended or supplemented by any required Prospectus supplement, and as so
supplemented or amended to be filed pursuant to Rule 424; and (iii) respond as
promptly as reasonably practicable to any comments received from the Commission
with respect to the Registration Statement or any amendment thereto and, as
promptly as reasonably practicable, upon request, provide the Holders'
Representative true and complete copies of all correspondence from and to the
Commission relating to the Registration Statement (subject, if appropriate, to
the execution of confidentiality agreements in form acceptable to the Company).

                  (c) Notify the Holders of Registrable Securities to be sold as
promptly as reasonably possible (and, in the case of (i)(A) below, not less than
three (3) Trading Days prior to such filing) and (if requested by any such
Person) confirm such notice in writing promptly following the day (i)(A) when a
Prospectus or any Prospectus supplement or post-effective amendment to the
Registration Statement is proposed to be filed; (B) when the Commission notifies
the Company whether there will be a "review" of the Registration Statement and
whenever the Commission comments in writing on the Registration Statement (the
Company shall upon request provide true and complete copies thereof and all
written responses thereto to the Holders' Representative, subject, if
appropriate, to the execution of confidentiality agreements in form acceptable
to the Company); and (C) with respect to the Registration Statement or any
post-effective amendment, when the same has become effective; (ii) of any
request by the Commission or any other federal or state governmental authority
during the period of effectiveness of the Registration Statement for amendments
or supplements to the Registration Statement or Prospectus or for additional
information; (iii) of the issuance by the Commission or any other federal or
state governmental authority of any stop order suspending the effectiveness of
the Registration Statement covering any or all of the Registrable Securities or
the initiation of any Proceedings for that purpose; (iv) of the receipt by the
Company of any notification with respect to the suspension of the qualification
or exemption from qualification of any of the Registrable Securities for sale in
any jurisdiction, or the initiation or threatening of any Proceeding for such
purpose; and (v) of the occurrence of any event or passage of time that makes
the financial statements included in the Registration Statement ineligible for
inclusion therein or any statement made in the 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 the
Registration Statement, Prospectus or other documents so that, in the case of

                                      -6-
<PAGE>

the Registration Statement or the Prospectus, as the case may be, it will not
contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading.

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

                  (e) Promptly deliver to each Holder no later than five (5)
business days after the Effectiveness Date, without charge, two (2) copies of
the Prospectus or Prospectuses (including each form of prospectus) and each
amendment or supplement thereto (and, upon the request of the Holder such
additional copies as such Persons may reasonably request in connection with
resales by the Holder of Registrable Securities). The Company hereby consents to
the use of such Prospectus and each amendment or supplement thereto by each of
the selling Holders in connection with the offering and sale of the Registrable
Securities covered by such Prospectus and any amendment or supplement thereto,
except after the giving of any notice pursuant to Section 3(c).

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

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

                  (h) Upon the occurrence of any event contemplated by Section
3(c)(v), as promptly as reasonably possible, prepare a supplement or amendment,
including a post-effective amendment, to the Registration Statement or a
supplement to the related Prospectus or any document incorporated or deemed to
be incorporated therein by reference, and file any other required document so
that, as thereafter delivered, neither the Registration Statement nor such
Prospectus will contain an untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading.

                                      -7-
<PAGE>

                  (i) Use its reasonable commercial efforts to comply in all
material respects with all applicable rules and regulations of the Commission
relating to the registration of the Registrable Securities pursuant to the
Registration Statement or otherwise.

                  (j) The Company shall not be required to include in any
Registration Statement the Registrable Securities of any Holder that does not
complete a Selling Shareholder Questionnaire.

                  (k) The Company shall use its commercially reasonable efforts
to maintain at least two (2) market makers that are registered with the National
Association of Securities Dealers, Inc. ("NASD") as such with respect to such
Registrable Securities. The Company shall pay all fees and expenses in
connection with satisfying its obligation under this Section 3(k).

                  (l) The Company shall make all documents, files, books,
records, officers, directors and employees of the Company reasonably available
to the Holders' Representative, one legal counsel to the Holders and one firm of
accountants retained by the Holders (collectively, the "INSPECTORS"), and make
such other accommodations as are reasonably necessary for the Inspectors, if
any, to perform a due diligence review of the Company; provided, however, that
all such information ("CONFIDENTIAL INFORMATION") will be kept confidential and
not utilized by the Inspectors except as contemplated herein and except as
required by law or court order. The term Confidential Information also includes
any information included in a draft Registration Statement or any related
Prospectus or any amendment or supplement thereto provided to a Holder pursuant
to Section 3(a); for the avoidance of doubt, however, as noted in Section 3(a)
above, the Company shall not furnish to Holders, without their prior approval,
any information that constitutes or might constitute material, non-public
information. The term Confidential Information does not include information that
(a) is already in possession of such other party (other than that which is
subject to another confidentiality agreement or unless obtained from a third
party where the receiving party knows that the third party was subject to a
confidentiality agreement), (b) becomes generally available to the public, or
(c) becomes available on a non-confidential basis from a source other than the
Company unless obtained from a third party where the receiving party knows that
the third party was subject to a confidentiality agreement. Each Holder agrees
that it shall, upon learning that disclosure of such Confidential Information is
sought in or by a court or governmental body of competent jurisdiction or
through other means, give prompt notice to the Company and allow the Company, at
its expense, to undertake appropriate action to prevent disclosure of, or to
obtain a protective order for, the information deemed confidential.

                  (m) The Company shall hold in confidence and not make any
disclosure of information concerning any Holder provided to the Company unless
(a) such information is already in possession of the Company, (b) such
information becomes available to the Company on a non-confidential basis from a
person other than such Holder who is not known by the Company to be otherwise
bound by a confidentiality or comparable agreement with such Holder (c)
disclosure of such information is necessary to comply with federal or state
securities laws, (d) the disclosure of such information is necessary to avoid or
correct a misstatement or omission in any Registration Statement or Prospectus,
(e) 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, (f) such information has been made generally available to the
public other than by disclosure in violation of this Agreement or any other

                                      -8-
<PAGE>

agreement to which the Company is a party, or (g) such Holder consents to the
form and content of any such disclosure (the Holders shall be deemed to consent
to the inclusion of any information provided in the Selling Shareholder
Questionnaire, in the Registration Statement, any Prospectus related thereto,
and any amendments or supplements thereto). The Company agrees that it shall,
upon learning that disclosure of such information concerning any Holder is
sought in or by a court or governmental body of competent jurisdiction or
through other means, give prompt written notice to such Holder and allow such
Holder, at the Holder's expense, to undertake appropriate action to prevent
disclosure of, or to obtain a protective order for, such information.

                  (n) The Company covenants that it shall file the reports
required to be filed by it under the Securities Act and the Exchange Act and the
rules and regulations adopted by the SEC thereunder so long as the Holder owns
any Registrable Securities, but in no event longer than two (2) years; provided,
however, the Company may delay any such filing but only pursuant to Rule 12b-25
under the Exchange Act, and the Company shall use commercially reasonable
efforts to take such further action as any Holder of Registrable Securities may
reasonably request (including without limitation, promptly obtaining any
required legal opinions from Company counsel necessary to effect the sale of
Registrable Securities under Rule 144 and paying the related fees and expenses
of such counsel), all to the extent required from time to time to enable such
Holder to sell Registrable Securities without registration under the Securities
Act within the limitation of the exemptions provided by (a) Rule 144 under the
Securities Act, as such Rule may be amended from time to time, or (b) any
similar rule or regulation hereafter adopted by the Commission. Upon the request
of any Holder of Registrable Securities, the Company will deliver to such Holder
a written statement as to whether it has complied with such requirements.

         4. Registration Expenses. All fees and expenses incident to the
performance of or compliance with this Agreement by the Company shall be borne
by the Company whether or not any Registrable Securities are sold pursuant to
the Registration Statement, other than fees and expenses of counsel or any other
advisor retained by the Holders and discounts, fees and commissions with respect
to the sale of any Registrable Securities by the Holders. The fees and expenses
referred to in the foregoing sentence shall include, without limitation, (i) all
registration and filing fees (including, without limitation, fees and expenses
(A) with respect to filings required to be made with the Trading Market on which
the Common Stock is then listed for trading, and (B) to effect compliance with
applicable state securities or Blue Sky laws), (ii) printing expenses
(including, without limitation, expenses of printing certificates for
Registrable Securities and of printing Prospectuses), (iii) messenger, telephone
and delivery expenses, (iv) fees and disbursements of counsel for the Company,
(v) Securities Act liability insurance, if the Company so desires such
insurance, and (vi) fees and expenses of all other Persons retained by the
Company in connection with the consummation of the transactions contemplated by
this Agreement. In addition, the Company shall be responsible for all of its
internal expenses incurred in connection with the consummation of the
transactions contemplated by this Agreement (including, without limitation, all
salaries and expenses of its officers and employees performing legal or
accounting duties), the expense of any annual audit and the fees and expenses
incurred in connection with the listing of the Registrable Securities on any
securities exchange or other trading market as required hereunder.

                                      -9-
<PAGE>

         5. Indemnification

                  (a) Indemnification by the Company. The Company shall,
notwithstanding any termination of this Agreement, indemnify and hold harmless
each Holder, the officers, directors, agents and employees of each of them, each
Person who controls any such Holder (within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act) and the officers, directors,
agents and employees of each such controlling Person, to the fullest extent
permitted by applicable law, from and against any and all losses, claims,
damages, liabilities, costs (including, without limitation, reasonable
attorneys' fees) and expenses (including the cost (including without limitation,
reasonable attorneys' fees) and expenses relating to an Indemnified Party's
actions to enforce the provisions of this Section 5) (collectively, "LOSSES"),
as incurred, to the extent arising out of or relating to any untrue or alleged
untrue statement of a material fact contained in any Registration Statement, any
Prospectus or any form of prospectus or in any amendment or supplement thereto
or in any preliminary prospectus, or arising out of or relating to any omission
or alleged omission of a material fact required to be stated therein or
necessary to make the statements therein (in the case of any Prospectus or form
of prospectus or supplement thereto, in light of the circumstances under which
they were made) not misleading, except to the extent, but only to the extent,
that (1) such untrue (or alleged untrue) statements or omissions (or alleged
omissions) are based solely upon information regarding such Holder furnished (or
in the case of an omission, not furnished) in writing to the Company by or on
behalf of such Holder expressly for use therein, or to the extent that such
information relates to such Holder or such Holder's proposed method of
distribution of Registrable Securities and was reviewed by such Holder expressly
for use in the Registration Statement, such Prospectus or such form of
Prospectus or in any amendment or supplement thereto (it being understood that
the Holder has reviewed Annex A hereto for this purpose), (2) in the case of an
occurrence of an event of the type specified in Section 3(c)(ii)-(v), the use by
such Holder of an outdated or defective Prospectus after the Company has
notified such Holder in writing that the Prospectus is outdated or defective and
prior to the receipt by such Holder of the Advice contemplated in Section 6(d),
or (3) the failure of the Holder to deliver a Prospectus as amended or
supplemented prior to the confirmation of a sale. The Company shall notify the
Holders promptly of the institution, threat or assertion of any Proceeding of
which the Company is aware in connection with the transactions contemplated by
this Agreement.

                  (b) Indemnification by Holders. Each Holder shall, severally
and not jointly, indemnify and hold harmless the Company, its directors,
officers, agents and employees, each Person who controls the Company (within the
meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act),
and the directors, officers, agents or employees of such controlling Persons, to
the fullest extent permitted by applicable law, from and against all Losses, as
incurred, to the extent arising out of or based upon: (x) such Holder's failure
to comply with the prospectus delivery requirements of the Securities Act or (y)
any untrue or alleged untrue statement of a material fact contained in any
Registration Statement, any Prospectus, or any form of prospectus, or in any
amendment or supplement thereto or in any preliminary prospectus, or arising out
of or relating to any omission or alleged omission of a material fact required
to be stated therein or necessary to make the statements therein (in the case of
the Prospectus or form of prospectus or supplement thereto, in light of the
circumstances under which they were made) not misleading (i) to the extent, but
only to the extent, that such untrue statement or omission is contained in any
information so furnished (or in the case of an omission, not furnished) in
writing by or on behalf of such Holder to the Company specifically for inclusion
in the Registration Statement or such Prospectus or (ii) to the extent that (1)

                                      -10-
<PAGE>

such untrue statements or omissions are based solely upon information regarding
such Holder furnished (or in the case of an omission, not furnished) in writing
to the Company by or on behalf of such Holder expressly for use therein, or to
the extent that such information relates to such Holder or such Holder's
proposed method of distribution of Registrable Securities and was reviewed by
such Holder expressly for use in the Registration Statement (it being understood
that the Holder has reviewed Annex A hereto for this purpose), such Prospectus
or such form of Prospectus or in any amendment or supplement thereto, or (2) in
the case of an occurrence of an event of the type specified in Section
3(c)(ii)-(v), the use by such Holder of an outdated or defective Prospectus
after the Company has notified such Holder in writing that the Prospectus is
outdated or defective and prior to the receipt by such Holder of the Advice
contemplated in Section 6(d), or (3) the failure of the Holder to deliver a
Prospectus prior to the confirmation of a sale. In no event shall the liability
of any selling Holder hereunder be greater in amount than the gross proceeds
received by the Holder with respect to the sale of its Registrable Securities.

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

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

         All reasonable fees and expenses of the Indemnified Party (including
reasonable fees and expenses to the extent incurred in connection with
investigating or preparing to defend such Proceeding in a manner not

                                      -11-
<PAGE>

inconsistent with this Section) shall be paid to the Indemnified Party, as
incurred, within fifteen (15) Trading Days of written notice thereof to the
Indemnifying Party; provided, that the Indemnified Party shall promptly
reimburse the Indemnifying Party for that portion of such fees and expenses
applicable to such actions for which such Indemnified Party is not entitled to
indemnification hereunder, determined based upon the relative faults of the
parties.

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

                  (e) The parties hereto agree that it would not be just and
equitable if contribution pursuant to Section 5(d) were determined by pro rata
allocation or by any other method of allocation that does not take into account
the equitable considerations referred to in Section 5(d). Notwithstanding the
provisions of Section 5(d), no Holder shall be required to indemnify or
contribute, in the aggregate, pursuant to this Article 5, any amount in excess
of the amount by which the proceeds actually received by such Holder from the
sale of the Registrable Securities subject to the Proceeding exceeds the amount
of any damages that such Holder has otherwise been required to pay by reason of
such untrue or alleged untrue statement or omission or alleged omission, except
in the case of fraud by such Holder. The indemnity and contribution agreements
contained in this Section are in addition to any liability that the Indemnifying
Parties may have to the Indemnified Parties. No party guilty of fraudulent
misrepresentation pursuant to Section 11(f) of the Securities Act shall be
entitled to contribution from any other party.

         6. Miscellaneous.

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

                                      -12-
<PAGE>

specific performance in respect of such breach, it shall waive the defense that
a remedy at law would be adequate.

                  (b) No Piggyback on Registrations. Other than those securities
that may be issued to Holders and/or any placement agent and/or its designee(s),
the securities set forth on Schedule 3.1(v) of the Purchase Agreement and such
other securities as may be consented to in writing by such placement agent,
neither the Company nor any of its security holders may include securities of
the Company in a Registration Statement filed pursuant to Section 2(a) hereof.
Other than pursuant to rights granted to any placement agent and/or to Holders
in this Agreement, no Person has any right to cause the Company to effect a
registration under the Securities Act of any securities of the Company.

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

                  (d) Discontinued Disposition. Each Holder agrees by its
acquisition of such Registrable Securities that, upon receipt of a notice from
the Company of the occurrence of any event of the kind described in Section
3(c), such Holder will forthwith discontinue disposition of such Registrable
Securities under the 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.

                  (e) 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 at least sixty-six percent (66%) of the then outstanding
Registrable Securities (assuming the conversion of all Convertible Preferred
Stock and exercise of all Warrants, whether converted or exercised or not),
whereupon such amendment, modification, supplement or waiver shall be binding on
all Holders; provided, however, that no consideration shall be offered or paid
to any Holder to amend or consent to a waiver or modification of any provision
of this Agreement unless the same consideration (on a pro-rata basis) is also
offered to all of the Holders under this Agreement.

                  (f) Notices. Any and all notices or other communications or
deliveries required or permitted to be provided hereunder shall be in writing
and shall be deemed given and effective on the earliest of (i) the Trading Day
following the date of mailing, if sent by nationally recognized overnight
courier service, or (ii) upon actual receipt by the party to whom such notice is
required to be given. The address for such notices and communications shall be
delivered and addressed as set forth in the Purchase Agreement

                  (g) 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. Each Holder may
assign their respective rights hereunder in the manner and to the Persons as
permitted under the Purchase Agreement.

                                      -13-
<PAGE>

                  (h) 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.

                  (i) Governing Law. This Agreement shall be governed by and
construed in accordance with the internal laws of the State of New York without
regard to the conflicts of laws principles thereof. The parties hereto hereby
irrevocably agree that any suit or proceeding arising directly and/or indirectly
pursuant to or under this Agreement, shall be brought solely in a federal or
state court located in the City, County and State of New York. By its execution
hereof, the parties hereby covenant and irrevocably submit to the in personam
jurisdiction of the federal and state courts located in the City, County and
State of New York and agree that any process in any such action may be served
upon any of them personally, or by certified mail or registered mail upon them
or their agent, return receipt requested, with the same full force and effect as
if personally served upon them in New York City. The parties hereto waive any
claim that any such jurisdiction is not a convenient forum for any such suit or
proceeding and any defense or lack of in personam jurisdiction with respect
thereto.

                  (j) Cumulative Remedies. Subject to the first sentence of
Section 6(a), the remedies provided herein are cumulative and not exclusive of
any remedies provided by law.

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

                  (l) Headings; Section References. The headings in this
Agreement are for convenience of reference only and shall not limit or otherwise
affect the meaning hereof. References to Sections mean Sections of this
Agreement unless otherwise stated.

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

                                      -14-
<PAGE>

and it shall not be necessary for any other Purchaser to be joined as an
additional party in any proceeding for such purpose. Each Purchaser represents
that it has been represented by its own separate legal counsel in its review and
negotiation of this Agreement. The Company has elected to provide all Purchasers
with the same terms and documents for the convenience of the Company and not
because it was required to do so by the Purchasers.

                  (n) Assignment of Registration Rights. The rights under this
Agreement shall be automatically assignable by any Holder to any permitted
transferee of all or any portion of Registrable Securities if: (a) such Holder
agrees in writing with the transferee or assignee to assign such rights, and a
copy of such agreement is furnished to the Company within a reasonable time
after such assignment; (b) the Company is, within a reasonable time after such
transfer or assignment, furnished with written notice of (i) the name and
address of such transferee or assignee, and (ii) the securities with respect to
which such registration rights are being transferred or assigned; and (c) at or
before the time the Company receives the written notice contemplated by clause
(b) of this sentence the transferee or assignee agrees in writing with the
Company to be bound by all of the provisions contained herein.

                  (o) Deferral Period. With respect to any Registration
Statement filed or to be filed pursuant to Section 2, if the Company determines
that, in its good faith judgment, it would (because of the existence of, or in
reasonable anticipation of, any acquisition or corporate reorganization or other
transaction, financing activity, stock repurchase or other material development
involving the Company or any subsidiary, or the unavailability for reasons
beyond the Company's control of any required financial statements or other
material information, or any other event or condition material to the Company or
any subsidiary) be materially disadvantageous to the Company to proceed with
such Registration Statement or that the Company is required by applicable law,
rules or regulations not to proceed with the Registration Statement (a "MATERIAL
DEVELOPMENT CONDITION"), then the Company shall, notwithstanding any other
provisions of this Agreement, be entitled, upon the giving of a written notice
that a Material Development Condition has occurred (a "DELAY NOTICE") from an
officer of the Company to the Holders' Representative, as the representative of
the Purchasers, (i) to cause sales of Registrable Securities by the Purchasers
pursuant to such Registration Statement to cease, (ii) to cause such
Registration Statement to be withdrawn and the effectiveness of such
Registration Statement suspended, or (iii) in the event no such Registration
Statement has yet been filed or declared effective, to delay filing or
effectiveness of any such Registration Statement until, in the good faith
judgment of the Company, such Material Development Condition shall be disclosed
or no longer exists (notice of which the Company shall promptly deliver to the
Placement Agent, as the representative of the Purchasers). Notwithstanding the
foregoing provisions of this Section 6(o), (1) in no event may such cessation or
delay be for a period of more than sixty (60) consecutive days from giving of
its Delay Notice to the Purchasers with respect to such Material Development
Condition, as above provided, or more than one hundred twenty (120) days in any
twelve (12) months; and (2) in the event a Registration Statement is filed and
subsequently withdrawn by reason of any existing or anticipated Material
Development Condition as provided above, the Company shall cause a new
Registration Statement covering the Registrable Securities to be filed with the
Commission as soon as reasonably practicable after such Material Development
Condition ceases to exist or, if sooner, as soon as practicable after the
expiration of such sixty (60) day period.

                                      -15-
<PAGE>

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

                                       UNITED NETWORK MARKETING SERVICES, INC.

                                       By: /s/ John Bellamy
                                           -----------------------------------
                                           Name:  John Bellamy
                                           Title:  Chief Executive Officer

                                      -16-
<PAGE>

         (PURCHASERS SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT)

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

                                          By: /s/ Donald Adams
                                              -------------------------------
                                              Name: Dr. Donald Adams

<PAGE>

         (PURCHASERS SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT)

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

                                          By: /s/  Daniel Borislow
                                              -------------------------------
                                              Name: Daniel Borislow
                                              Title:

<PAGE>

         (PURCHASERS SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT)

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

                                          By: /s/ Christian Brunschweiler
                                              -------------------------------
                                              /s/ Erica Brunschweiler
                                              -------------------------------
                                              Name: Christian Brunschweiler
                                                    Erica Brunschweiler
                                              Title:

<PAGE>

         (PURCHASERS SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT)

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

                                          By: /s/ Tristan Kim
                                              -------------------------------
                                              Name: Tristan Kim
                                              Title:

<PAGE>

         (PURCHASERS SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT)

                                          MSR Consultants, Inc.

                                          By: /s/ Michael Rakusin
                                              -------------------------------
                                              Name: MSR Consultants
                                              Title:

<PAGE>

         (PURCHASERS SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT)

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

                                          By: /s/ Dave Ruggieri
                                              -------------------------------
                                              /s/ Victoria Ruggieri
                                              -------------------------------
                                              Name: Dave Ruggieri
                                                    Victoria Ruggieri
                                              Title:

<PAGE>

         (PURCHASERS SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT)

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

                                          By: /s/ Stanley Skriloff
                                              -------------------------------
                                              Name: Stanley Skriloff
                                              Title:

<PAGE>

         (PURCHASERS SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT)

                                          TCMP3 Partners

                                          By: /s/ Steven E. Slawson
                                              -------------------------------
                                              Name: Steven E. Slawson
                                              Title: Principal

<PAGE>

         (PURCHASERS SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT)

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

                                          By: /s/ Joseph Serrano &
                                              -------------------------------
                                              /s/ Pilar Serrano
                                              -------------------------------
                                              Name: Joseph Serrano &
                                                    Pilar Serrano
                                              Title:

<PAGE>

         (PURCHASERS SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT)

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

                                          By: /s/ Peter Sivaslian &
                                              -------------------------------
                                              /s/ Lillian Sivaslian
                                              -------------------------------
                                              Name: Peter Sivaslian &
                                                    Lillian Sivaslian
                                              Title:

<PAGE>

         (PURCHASERS SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT)

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

                                          By: /s/ Seth Tobias
                                              -------------------------------
                                              Name: Seth Tobias
                                              Title:

<PAGE>

         (PURCHASERS SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT)

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

                                          By: /s/ Tricia Tobias
                                              -------------------------------
                                              Name: Tricia Tobias
                                              Title:

<PAGE>

         (PURCHASERS SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT)

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

                                          By: /s/ Herbert Welch
                                              -------------------------------
                                              Name: Herbert Welch
                                              Title:

<PAGE>

         (PURCHASERS SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT)

                                       Cornell Capital Partners, LP

                                       By: /s/ Mark Angelo
                                           ----------------------------------
                                           Name: Mark Angelo
                                           Title: Portfolio Manager of Yorkville
                                           Advisors, LLC, the General Partner of
                                           the Investor

<PAGE>

         (PURCHASERS SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT)

                                          Highgate House Funds, Ltd.

                                          By: /s/ Mark Angelo
                                              -------------------------------
                                              Name: Mark Angelo
                                              Title:

<PAGE>

         (PURCHASERS SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT)

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

                                          By: /s/ Scott Diclaudio
                                              -------------------------------
                                              Name: Scott Diclaudio
                                              Title:

<PAGE>

         (PURCHASERS SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT)

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

                                          By: /s/ Mary V. Hayes
                                              -------------------------------
                                              Name: Mary V. Hayes
                                              Title:

<PAGE>

         (PURCHASERS SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT)

                                          SGN

                                          By: /s/ Gina M. Reutter
                                              -------------------------------
                                              Name: Gina M. Reutter
                                              Title: Vice-President

<PAGE>

         (PURCHASERS SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT)

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

                                          By: /s/ Robert W. VanHellemont
                                              -------------------------------
                                              Name: Robert W. VanHellemont
                                              Title:

<PAGE>

         (PURCHASERS SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT)

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

                                          By: /s/ Marc Sherman
                                              -------------------------------
                                              Name: Marc Sherman
                                              Title:

<PAGE>

         (PURCHASERS SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT)

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

                                          By: /s/ Thomas W. Jones
                                              -------------------------------
                                              Name: Thomas W. Jones
                                              Title:

<PAGE>

         (PURCHASERS SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT)

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

                                          By: /s/ Chris Baker
                                              -------------------------------
                                              Name: Chris Baker
                                              Title:

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