Document:

EXHIBIT 4.2

                                    POINT.360
                      NON-QUALIFIED STOCK OPTION AGREEMENT

         THIS NON-QUALIFIED STOCK OPTION AGREEMENT (this  "Agreement"),  is made
as of the  ________  day  of  ___________,  2005  by and  between  Point.360,  a
Californian corporation (the "Company"), and _______________ ("Optionee").

                                  R E C I T A L

         Pursuant to the 2005 Equity Incentive Plan (the "Plan") of the Company,
the Board of Directors of the Company or a committee to which  administration of
the  Plan  is  delegated  by  the  Board  of  Directors  (in  either  case,  the
"Administrator")  has  authorized  the  granting  to  Optionee  as an  employee,
director,  consultant or adviser of the Company of a non-qualified  stock option
to purchase  the number of shares of common  stock of the Company  specified  in
Section 1 hereof, at the price specified therein, such option to be for the term
and upon the terms and conditions hereinafter stated.

                                A G R E E M E N T

         NOW,   THEREFORE,   in   consideration  of  the  promises  and  of  the
undertakings of the parties hereto contained herein, it is hereby agreed:

         1.  Number of Shares;  Option  Price.  Pursuant  to said  action of the
Administrator,  the Company  hereby grants to Optionee the option  ("Option") to
purchase,  upon and subject to the terms and  conditions  of the Plan,  ________
shares of common stock of the Company  ("Shares")  at the price of $________ per
Share (which price shall be no less than the fair market value of a Share on the
date of grant of this Option).

         2. Term.  This  Option  shall  expire on the day  before  the  ________
anniversary of the date of grant of the Option (the "Expiration  Date"),  unless
such Option shall have been terminated prior to that date in accordance with the
provisions of the Plan or this  Agreement.  The term  "Affiliate" as used herein
shall have the meaning as set forth in the Plan.

         3. Shares  Subject to  Exercise.  This Option shall be  exercisable  in
installments  as to ___  percent  (__%) of the  Shares on and after  each of the
first  ____  anniversaries  of  the  date  hereof  provided,  however,  that  an
installment  shall not become  exercisable if the Optionee is not employed as an
employee,  director,  consultant or adviser of the Company, or its Affiliate, as
of such anniversary date. Once  exercisable,  the Option shall thereafter remain
exercisable as to such Shares for the term specified in Section 2 hereof, unless
Optionee's  employment is terminated  pursuant to Section 6 hereof or the Option
is  terminated  pursuant  to a Corporate  Transaction  (as defined in Section 15
hereof).  The  Administrator  may  condition  the  exercise of the Option on the
Optionee's entering into a shareholders  agreement with the Company and/or other
shareholders  which will restrict the  transferability of the Shares and contain
other customary  provisions  including  rights of repurchase or first refusal on
the part of the Company and may include "drag along" rights.

         4. Method and Time of Exercise.  The Option may be exercised by written
notice  delivered to the Company at its principal  executive  office stating (i)
that Optionee is in  compliance  with the  non-compete  provisions of Section 16
hereof,  (ii) that  Optionee  has no plan to violate  Section 16 in the  future,
(iii)  that  Optionee  agrees to notify  the  Company  within ten (10) days of a
violation  of Section 16 hereof,  and (iv) the number of shares with  respect to
which the Option is being exercised, together with:

         (A) a check or money order made payable to the Company in the amount of
the exercise price and any withholding  tax, as provided under Section 5 hereof;
or

         (B) if expressly  authorized  in writing by the  Administrator,  in its
sole discretion,  at the time of the Option exercise,  the tender to the Company
of shares of the Company's  common stock owned by Optionee  having a fair market
value not less than the exercise price,  plus the amount of applicable  federal,
state and local withholding taxes; or

         (C) if expressly authorized in writing by the Administrator, subject to
Sarbanes Oxley, in its sole discretion,  at the time of the Option exercise, the
Optionee's full recourse promissory note in a form approved by the Company; or

<PAGE>

         (D)  if any  other  method  such  as  cashless  exercise  is  expressly
authorized in writing by the Administrator,  in its sole discretion, at the time
of the Option exercise,  the tender of such  consideration  having a fair market
value not less than the exercise price,  plus the amount of applicable  federal,
state and local withholding taxes.

Only whole shares may be purchased.

         5. Tax  Withholding.  As a condition  to exercise of this  Option,  the
Company may require Optionee to pay over to the Company all applicable  federal,
state and local taxes which the Company is required to withhold  with respect to
the exercise of this Option. At the discretion of the Administrator and upon the
request of Optionee,  the minimum statutory  withholding tax requirements may be
satisfied by the withholding of Shares  otherwise  issuable to Optionee upon the
exercise of this Option.

         6. Exercise on Termination of  Employment.  If for any reason  Optionee
ceases to be employed by the Company or any of its Affiliates  (such event being
called a "Termination"), other than For Cause, as defined below, this Option (to
the extent then  exercisable)  may be  exercised in whole or in part at any time
within  90 days of the  date of such  Termination,  but in no  event  after  the
earlier of the Expiration Date or a Corporate  Transaction  which terminates the
Option  pursuant  to  Section  15  hereof.   For  purposes  of  this  Agreement,
"employment" includes service as an employee,  director,  consultant or adviser.
For purposes of this  Agreement,  Optionee's  employment  shall not be deemed to
terminate  by reason of a transfer  to or from the  Company or an  Affiliate  or
among such  entities,  or sick leave,  military  leave or other leave of absence
approved by the  Administrator,  if the period of any such leave does not exceed
ninety  (90) days or, if longer,  if  Optionee's  right to  reemployment  by the
Company or any Affiliate is guaranteed either  contractually or by statute.  For
purposes of this Agreement, "For Cause" shall mean Optionee's loss of employment
by the Company or any of its  Affiliates due to Optionee's (a) willful breach or
habitual neglect or continued  incapacity to perform Optionee's required duties,
(b) commission of acts of dishonesty, fraud,  misrepresentation or other acts of
moral turpitude as would prevent the effective  performance of Optionee's duties
or (c) termination for cause under any employment  agreement between the Company
and Optionee (as defined  therein).  In the event  Optionee's  employment by the
Company or any of its Affiliates is Terminated For Cause,  then the Option shall
cease to be exercisable as of the date of such Termination.

         7. Non-Transferability. Except with the express written approval of the
Administrator,  this Option may not be assigned or transferred except by will or
by the laws of descent and  distribution,  and may be exercised only by Optionee
during the Optionee's lifetime and after the Optionee's death, by the Optionee's
personal  representative  or by the person entitled thereto under the Optionee's
will or the laws of intestate succession.

         8.  Optionee  Not a  Stockholder.  Optionee  shall  have no rights as a
stockholder  with respect to the Shares covered by this Option until the date of
issuance of a stock  certificate  or stock  certificates  to the  Optionee  upon
exercise of this  Option.  No  adjustment  will be made for  dividends  or other
rights for which the record date is prior to the date such stock  certificate or
certificates are issued.

         9. No Right to  Employment.  Nothing in the Option granted hereby shall
interfere  with or limit in any way the  right of the  Company  or of any of its
Affiliates  to terminate  Optionee's  employment,  consulting or advising at any
time,  nor confer upon Optionee any right to continue in the employ of,  consult
with, or advise the Company or any of its Affiliates.

         10. Modification and Termination. The rights of Optionee are subject to
modification  and  termination in certain events as provided in Sections 6.1 and
6.2 of the Plan.

         11. Restrictions on Sale of Shares. Optionee represents and agrees that
upon the Optionee's  exercise of this Option,  in whole or in part, unless there
is in effect  at that  time  under  the  Securities  Act of 1933 a  registration
statement  relating to the Shares  issued to the  Optionee,  the  Optionee  will
acquire  the Shares  issuable  upon  exercise  of this Option for the purpose of
investment and not with a view to their resale or further distribution, and that
upon such  exercise  thereof the Optionee  will furnish to the Company a written
statement to such  effect,  satisfactory  to the Company in form and  substance.
Optionee  agrees that any  certificates  issued upon exercise of this Option may
bear a legend indicating that their  transferability is restricted in accordance
with applicable state and federal securities law. Any person or persons entitled
to exercise  this Option under the  provisions of Sections 6 and 7 hereof shall,
upon each exercise of this Option under circumstances in which Optionee would be
required  to furnish  such a written  statement,  also  furnish to the Company a
written  statement to the same effect,  satisfactory  to the Company in form and
substance.

<PAGE>

         12. Plan Governs.  This Agreement and the Option  evidenced  hereby are
made and  granted  pursuant to the Plan and are in all  respects  limited by and
subject to the express terms and  provisions of the Plan, as it may be construed
by the  Administrator.  Optionee  hereby  acknowledges  receipt of a copy of the
Plan.

         13.  Notices.  All notices to the  Company  shall be  addressed  to the
Corporate  Secretary at the principal executive office of the Company at 2777 N.
Ontario  Street,  Burbank,  CA  91504,  and all  notices  to  Optionee  shall be
addressed to Optionee at the address of Optionee on file with the Company, or to
such other  address as either may  designate  to the other in writing.  A notice
shall be deemed to be duly given if and when  enclosed  in a properly  addressed
sealed  envelope  deposited,  postage  prepaid,  with the United  States  Postal
Service.  In lieu of giving notice by mail as aforesaid,  written  notices under
this Agreement may be given by personal delivery to Optionee or to the Corporate
Secretary (as the case may be).

         14. Sale or Other Disposition. If Optionee at any time contemplates the
disposition (whether by sale, gift, exchange,  or other form of transfer) of any
Shares acquired by exercise of this Option,  the Optionee shall first notify the
Company in writing of such proposed  disposition  and cooperate with the Company
in complying with all applicable  requirements of law, which, in the judgment of
the Company, must be satisfied prior to such disposition.

         15. Corporate Transactions. In the event of a Corporate Transaction (as
defined  below),  the  Administrator  shall notify Optionee at least thirty (30)
days  prior  thereto  or as  soon  as may be  practicable.  To  the  extent  not
previously  exercised,  this Option  shall  terminate  immediately  prior to the
consummation of such Corporate  Transaction unless the Administrator  determines
otherwise in its sole discretion;  provided, however, that the Administrator, in
its  sole  discretion,  may (i)  permit  exercise  of this  Option  prior to its
termination,  even if this Option would not otherwise have been exercisable, and
(ii)  provide  that  this  Option  shall  be  assumed  or an  equivalent  option
substituted  by an  applicable  successor  corporation  or any  Affiliate of the
successor  corporation.  A "Corporate  Transaction"  means (i) a liquidation  or
dissolution of the Company;  (ii) a merger or  consolidation of the Company with
or into another  corporation  or entity (other than a merger with a wholly-owned
subsidiary);  (iii) a  tender  offer  shall  be  made  and  consummated  for the
ownership of 35% or more of the  outstanding  voting  securities of the Company;
(iv) a sale of all or  substantially  all of the  assets of the  Company;  (v) a
purchase or other  acquisition of more than 50% of the outstanding  stock of the
Company by one person or by more than one person acting in concert.

         16.  Non-Compete  Agreement.  Notwithstanding  anything to the contrary
provided  herein,  as a  condition  to the  receipt  of Shares  pursuant  to the
exercise of this Option, at any time during which this Option is outstanding and
for six (6) months  after any  exercise  of this Option or the receipt of Shares
pursuant  to the  exercise  of this  Option,  Optionee  shall  not  directly  or
indirectly, as agent, employee, consultant, stockholder, partner or in any other
capacity, own, operate,  manage, control, engage in, invest in or participate in
any manner in, act as a  consultant  or advisor  to,  render  services  for,  or
otherwise  assist any person or entity  that  engages  in or owns,  invests  in,
operates,  manages or  controls,  any  venture or  enterprise  that  directly or
indirectly competes with the Company, provided,  however, that nothing contained
herein shall be construed to prevent Optionee from investing in the stock of any
competing  corporation listed on a national securities exchange or traded in the
over-the-counter market, but only if Optionee is not involved in the business of
said  corporation  and if Optionee  (together with Optionee's  spouse,  parents,
siblings, and children) does not own more than an aggregate of five percent (5%)
of the stock of such  corporation.  Optionee agrees to notify the Company within
ten (10) days of any  violation of this Section 16.  Failure to comply with this
Section  16 shall  cause such  Option and the  exercise  or  issuance  of Shares
hereunder  to be  rescinded  and the benefit of such  exercise or issuance to be
repaid to the Company.  Optionee agrees and understands that Optionee's  failure
to comply with this Section 16 will subject  Optionee's  benefit from the Option
to be forfeited and repaid to the Company,  and Optionee  agrees to do so within
ten (10) days of notification by the Company.

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date and year first above written.

                                         POINT.360

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

                                         OPTIONEE:

                                         By:
                                                  ------------------------------
                                         Address:
                                                  ------------------------------

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

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

                                                  ------------------------------
                                                  Social Security NumberExecution Copy

                          REGISTRATION RIGHTS AGREEMENT

THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement"), dated effective February
22, 2005, by and among ACTIVECORE TECHNOLOGIES, INC., a Nevada corporation, with
its principal office located at 156 Front Street West, Suite 210, Toronto,
Ontario, Canada M5J 2L6 (the "Company"), and Andrew Wickett and Debbie
Gracie-Smith (each, an "Investor" and collectively, the "Investors").

WHEREAS:

A. In connection with the Share Purchase Agreement by and among the parties
hereto of even date herewith (the "Share Purchase Agreement"), the Company has
agreed, upon the terms and subject to the conditions of the Share Purchase
Agreement, to issue to the Investors eight million nine hundred and twenty one
thousand and thirty one (8,921,031) shares of Common Stock of the Company, par
value $0.001 per share (the "Common Stock"), pursuant to the terms of the Share
Purchase Agreement for an aggregate purchase price of up to Two Million, Four
Hundred Thousand Dollars ($2,400,000). Capitalized terms not defined herein
shall have the meaning ascribed to them in the Share Purchase Agreement.

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

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

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

      (a)   "Investor" means an Investor and any transferee or assignee thereof
            to whom an Investor assigns its rights under this Agreement and who
            agrees to become bound by the provisions of this Agreement in
            accordance with Section 9 hereof.

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

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

<PAGE>

      (d)   "Registrable Securities" means the shares of Common Stock issuable
            to Investors pursuant to the Share Purchase Agreement.

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

2.          REGISTRATION.

      (a)   Filing of Registration Statement. Subject to the terms and
            conditions of this Agreement, the Company shall prepare and file, no
            later than ninety (90) days from the date of the closing of the
            transactions contemplated by the Share Purchase Agreement (the
            "Scheduled Filing Deadline"), with the SEC a registration statement
            on Form S-1 or SB-2 (or, if the Company is then eligible, on Form
            S-3) under the 1933 Act (the "Initial Registration Statement") for
            the registration for the resale of the Registrable Securities by all
            Investors. The Registration Statement required hereunder shall
            contain (except if otherwise directed by the Investors) the "Plan of
            Distribution" attached hereto as Annex A. The Company shall cause
            the Registration Statement to remain effective until all of the
            Registrable Securities have been sold. Prior to the filing of the
            Registration Statement with the SEC, the Company shall furnish a
            copy of the Initial Registration Statement to the Investors and
            Chitiz Pathak LLP for their review and comment. The Investors and
            Chitiz Pathak LLP shall furnish comments on the Initial Registration
            Statement to the Company within seventy-two (72) hours of the
            receipt thereof from the Company.

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

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

                                       2
<PAGE>

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

3.          RELATED OBLIGATIONS.

      (a)   The Company shall keep the Registration Statement effective pursuant
            to Rule 415 at all times until the date on which the Investors shall
            have sold all the Registrable Securities covered by such
            Registration Statement (the "Registration Period"), which
            Registration Statement (including any amendments or supplements
            thereto and prospectuses contained therein) shall not contain any
            untrue statement of a material fact or omit to state a material fact
            required to be stated therein, or necessary to make the statements
            therein, in light of the circumstances in which they were made, not
            misleading.

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

                                       3
<PAGE>

      (c)   The Company shall furnish to each Investor whose Registrable
            Securities are included in any Registration Statement, without
            charge, (i) at least one (1) copy of such Registration Statement as
            declared effective by the SEC and any amendment(s) thereto,
            including financial statements and schedules, all documents
            incorporated therein by reference, all exhibits and preliminary
            prospectus and (ii) such other documents as such Investors may
            reasonably request from time to time in order to facilitate the
            disposition of the Registrable Securities owned by such Investor.

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

      (e)   As promptly as practicable after becoming aware of such event or
            development, the Company shall notify each Investor in writing of
            the happening of any event as a result of which the prospectus
            included in a Registration Statement, as then in effect, includes an
            untrue statement of a material fact or omission to state a material
            fact required to be stated therein or necessary to make the
            statements therein, in light of the circumstances under which they
            were made, not misleading (provided that in no event shall such
            notice contain any material, nonpublic information), and promptly
            prepare a supplement or amendment to such Registration Statement to
            correct such untrue statement or omission, and deliver ten (10)
            copies of such supplement or amendment to each Investor. The Company
            shall also promptly notify each Investor in writing (i) when a
            prospectus or any prospectus supplement or post-effective amendment
            has been filed, and when a Registration Statement or any
            post-effective amendment has become effective (notification of such
            effectiveness shall be delivered to each Investor by facsimile on
            the same day of such effectiveness), (ii) of any request by the SEC
            for amendments or supplements to a Registration Statement or related
            prospectus or related information, and (iii) of the Company's
            reasonable determination that a post-effective amendment to a
            Registration Statement would be appropriate.

                                       4
<PAGE>

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

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

                                       5
<PAGE>

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

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

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

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

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

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

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

                                       6
<PAGE>

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

      (p)   In the event that the Company issues securities to the Investors
            pursuant to the Share Increase Mechanism of the Share Purchase
            Agreement that are not covered by an effective Registration
            Statement and the Company determines 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 1933 Act of any of
            its equity securities, other than on Form S-4 or Form S-8 (each as
            promulgated under the 1933 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 the stock option or other employee benefit plans,
            then the Company shall send to each Investor a written notice of
            such determination and, if within fifteen days after the date of
            such notice, any such Investor shall so request in writing, the
            Company shall include in such registration statement all or any part
            of such securities issued pursuant to the Share Increase Mechanism
            such Investor requests to be registered, subject to customary
            underwriter cutbacks applicable to all holders of registration
            rights

4. OBLIGATIONS OF THE INVESTORS. Each Investor agrees that, upon receipt of any
notice from the Company of the happening of any event of the kind described in
Section 3(f) or the first sentence of 3(e), such Investor will immediately
discontinue disposition of Registrable Securities pursuant to any Registration
Statement(s) covering such Registrable Securities until such Investor's receipt
of the copies of the supplemented or amended prospectus contemplated by Section
3(e) or receipt of notice that no supplement or amendment is required.
Notwithstanding anything to the contrary, the Company shall cause its transfer
agent to deliver unlegended certificates for shares of Common Stock to a
transferee of an Investor in connection with any sale of Registrable Securities
with respect to which an Investor has entered into a contract for sale prior to
the Investor's receipt of a notice from the Company of the happening of any
event of the kind described in Section 3(f) or the first sentence of 3(e) and
for which the Investor has not yet settled.

5. EXPENSES OF REGISTRATION. All expenses incurred in connection with
registrations, filings or qualifications pursuant to Sections 2 and 3,
including, without limitation, all registration, listing and qualifications
fees, printers, legal and accounting fees shall be paid by the Company.

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

                                       7
<PAGE>

      (a)   To the fullest extent permitted by law, the Company will, and hereby
            does, indemnify, hold harmless and defend each Investor, the
            directors, officers, partners, employees, agents, representatives
            of, and each Person, if any, who controls any Investor within the
            meaning of the 1933 Act or the 1934 Act (each, an "Indemnified
            Person"), against any losses, claims, damages, liabilities,
            judgments, fines, penalties, charges, costs, reasonable attorneys'
            fees, amounts paid in settlement or expenses, joint or several
            (collectively, "Claims") incurred in investigating, preparing or
            defending any action, claim, suit, inquiry, proceeding,
            investigation or appeal taken from the foregoing by or before any
            court or governmental, administrative or other regulatory agency,
            body or the SEC, whether pending or threatened, whether or not an
            indemnified party is or may be a party thereto ("Indemnified
            Damages"), to which any of them may become subject insofar as such
            Claims (or actions or proceedings, whether commenced or threatened,
            in respect thereof) arise out of or are based upon: (i) any untrue
            statement or alleged untrue statement of a material fact in a
            Registration Statement or any post-effective amendment thereto or in
            any filing made in connection with the qualification of the offering
            under the securities or other "blue sky" laws of any jurisdiction in
            which Registrable Securities are offered ("Blue Sky Filing"), or the
            omission or alleged omission to state a material fact required to be
            stated therein or necessary to make the statements therein not
            misleading; (ii) any untrue statement or alleged untrue statement of
            a material fact contained in any final prospectus (as amended or
            supplemented, if the Company files any amendment thereof or
            supplement thereto with the SEC) or the omission or alleged omission
            to state therein any material fact necessary to make the statements
            made therein, in light of the circumstances under which the
            statements therein were made, not misleading; or (iii) any violation
            or alleged violation by the Company of the 1933 Act, the 1934 Act,
            any other law, including, without limitation, any state securities
            law, or any rule or regulation there under relating to the offer or
            sale of the Registrable Securities pursuant to a Registration
            Statement (the matters in the foregoing clauses (i) through (iii)
            being, collectively, "Violations"). The Company shall reimburse the
            Investors and each such controlling person promptly as such expenses
            are incurred and are due and payable, for any legal fees or
            disbursements or other reasonable expenses incurred by them in
            connection with investigating or defending any such Claim.
            Notwithstanding anything to the contrary contained herein, the
            indemnification agreement contained in this Section 6(a): (x) shall
            not apply to a Claim by an Indemnified Person arising out of or
            based upon a Violation which occurs in reliance upon and in
            conformity with information furnished in writing to the Company by
            such Indemnified Person expressly for use in connection with the
            preparation of the Registration Statement or any such amendment
            thereof or supplement thereto; (y) shall not be available to the
            extent such Claim is based on a failure of the Investor to deliver
            or to cause to be delivered the prospectus made available by the
            Company, if such prospectus was timely made available by the Company
            pursuant to Section 3(c); and (z) shall not apply to amounts paid in
            settlement of any Claim if such settlement is effected without the
            prior written consent of the Company, which consent shall not be
            unreasonably withheld. Such indemnity shall remain in full force and
            effect regardless of any investigation made by or on behalf of the
            Indemnified Person and shall survive the transfer of the Registrable
            Securities by the Investors pursuant to Section 9 hereof.

                                       8
<PAGE>

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

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

                                       9
<PAGE>

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

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

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

                                       10
<PAGE>

8. REPORTS UNDER THE 1934 ACT. With a view to making available to the Investors
the benefits of Rule 144 promulgated under the 1933 Act or any similar rule or
regulation of the SEC that may at any time permit the Investors to sell
securities of the Company to the public without registration ("Rule 144") the
Company agrees to:

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

      (b)   file with the SEC in a timely manner all reports and other documents
            required of the Company under the 1933 Act and the 1934 Act so long
            as the Company remains subject to such requirements and the filing
            of such reports and other documents as are required by the
            applicable provisions of Rule 144; and

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

9. ASSIGNMENT OF REGISTRATION RIGHTS. The rights under this Agreement shall be
automatically assignable by the Investors to any transferee of all or any
portion of Registrable Securities if: (i) the Investor 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; (ii)
the Company is, within a reasonable time after such transfer or assignment,
furnished with written notice of (a) the name and address of such transferee or
assignee, and (b) the securities with respect to which such registration rights
are being transferred or assigned; and (iii) at or before the time the Company
receives the written notice contemplated by clause (ii) of this sentence the
transferee or assignee agrees in writing with the Company to be bound by all of
the provisions contained herein.

10. AMENDMENT OF REGISTRATION RIGHTS. Provisions of this Agreement may be
amended and the observance thereof may be waived (either generally or in a
particular instance and either retroactively or prospectively), only with the
written consent of the Company and Investors who then hold at least two-thirds
(2/3) of the Registrable Securities. Any amendment or waiver effected in
accordance with this Section 10 shall be binding upon each Investor and the
Company. No such amendment shall be effective to the extent that it applies to
fewer than all of the holders of the Registrable Securities. No consideration
shall be offered or paid to any Person to amend or consent to a waiver or
modification of any provision of any of this Agreement unless the same
consideration also is offered to all of the parties to this Agreement.

                                       11
<PAGE>

11.         MISCELLANEOUS.

      (a)   A Person is deemed to be a holder of Registrable Securities whenever
            such Person owns or is deemed to own of record such Registrable
            Securities. If the Company receives conflicting instructions,
            notices or elections from two (2) or more Persons with respect to
            the same Registrable Securities, the Company shall act upon the
            basis of instructions, notice or election received from the
            registered owner of such Registrable Securities.

      (b)   Any notices, consents, waivers or other communications required or
            permitted to be given under the terms of this Agreement must be in
            writing and will be deemed to have been delivered: (i) upon receipt,
            when delivered personally; (ii) upon receipt, when sent by facsimile
            (provided confirmation of transmission is mechanically or
            electronically generated and kept on file by the sending party); or
            (iii) one (1) business day after deposit with a nationally
            recognized overnight delivery service, in each case properly
            addressed to the party to receive the same. The addresses and
            facsimile numbers for such communications shall be:

            If to the Company, to:
            ActiveCore Technologies Inc.
            156 Front Street West, Suite 210
            Toronto, ON  M5J 2L6
            Attention:  President
            Telephone:  (416) 252-6200
            Facsimile:  (416) 252-4578

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

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

                                       12
<PAGE>

      (d)   The laws of the State of Nevada shall govern all issues concerning
            the relative rights of the Company and the Investors as its
            stockholders. All other questions concerning the construction,
            validity, enforcement and interpretation of this Agreement shall be
            governed by the internal laws of the State of Nevada, without giving
            effect to any choice of law or conflict of law provision or rule
            (whether of the State of Nevada or any other jurisdiction) that
            would cause the application of the laws of any jurisdiction other
            than the State of Nevada. Each party hereby irrevocably submits to
            the non-exclusive jurisdiction of the Superior Courts of the State
            of Nevada, for the adjudication of any dispute hereunder or in
            connection herewith or with any transaction contemplated hereby or
            discussed herein, and hereby irrevocably waives, and agrees not to
            assert in any suit, action or proceeding, any claim that it is not
            personally subject to the jurisdiction of any such court, that such
            suit, action or proceeding is brought in an inconvenient forum or
            that the venue of such suit, action or proceeding is improper. Each
            party hereby irrevocably waives personal service of process and
            consents to process being served in any such suit, action or
            proceeding by mailing a copy thereof to such party at the address
            for such notices to it under this Agreement and agrees that such
            service shall constitute good and sufficient service of process and
            notice thereof. Nothing contained herein shall be deemed to limit in
            any way any right to serve process in any manner permitted by law.
            If any provision of this Agreement shall be invalid or unenforceable
            in any jurisdiction, such invalidity or unenforceability shall not
            affect the validity or enforceability of the remainder of this
            Agreement in that jurisdiction or the validity or enforceability of
            any provision of this Agreement in any other jurisdiction. EACH
            PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES
            NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE
            HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT
            OR ANY TRANSACTION CONTEMPLATED HEREBY.

      (e)   This Agreement by and among the Company and the Investors set forth
            on the Schedule of Investors attached hereto constitutes the entire
            agreement among the parties hereto with respect to the subject
            matter hereof and thereof. There are no restrictions, promises,
            warranties or undertakings, other than those set forth or referred
            to herein and therein. This Agreement supersedes all prior
            agreements and understandings among the parties hereto with respect
            to the subject matter hereof and thereof.

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

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

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

                                       13
<PAGE>

      (i)   Each party shall do and perform, or cause to be done and performed,
            all such further acts and things, and shall execute and deliver all
            such other agreements, certificates, instruments and documents, as
            the other party may reasonably request in order to carry out the
            intent and accomplish the purposes of this Agreement and the
            consummation of the transactions contemplated hereby. The language
            used in this Agreement will be deemed to be the language chosen by
            the parties to express their mutual intent and no rules of strict
            construction will be applied against any party.

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

                 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       14
<PAGE>

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

                          ACTIVECORE TECHNOLOGIES, INC.

                        By: /s/ [Peter Hamilton]
                            --------------------------------------------
                        Name:  Peter Hamilton
                        Title: Chief Executive Officer

                        By: /s/ [Andrew Wickett]
                            --------------------------------------------
                        Name:  Andrew Wickett

                        By: /s/ [Debbie Gracie-Smith]
                            --------------------------------------------
                        Name: Debbie Gracie-Smith

                                       15
<PAGE>

                              SCHEDULE OF INVESTORS

Andrew Wickett
17 Spruce Hill Road
Toronto, Ontario CANADA
M4E 3G2

-and-

Debbie Gracie-Smith
2502 Trevor Drive
Oakville, Ontario CANADA
L6L 5C6

<PAGE>

                                    EXHIBIT A

                         FORM OF NOTICE OF EFFECTIVENESS
                            OF REGISTRATION STATEMENT

Re:  ACTIVECORE TECHNOLOGIES INC.

Ladies and Gentlemen:

We are counsel to ActiveCore Technologies Inc., a Nevada corporation (the
"Company"), which has entered into that certain Share Purchase Agreement (the
"Purchaser Agreement") by and among the Company and the investors named therein
(collectively, the "Investors") pursuant to which the Company issued to the
Investors shares of its Common Stock, par value $0.001 per share (the "Common
Stock"). Pursuant to the Purchase Agreement, the Company also has entered into a
Registration Rights Agreement with the Investors (the "Registration Rights
Agreement") pursuant to which the Company agreed, among other things, to
register the Registrable Securities (as defined in the Registration Rights
Agreement) under the Securities Act of 1933, as amended (the "1933 Act"). In
connection with the Company's obligations under the Registration Rights
Agreement, on ________________, the Company filed a Registration Statement on
Form ________ (File No. 333-_____________) (the "Registration Statement") with
the Securities and Exchange SEC (the "SEC") relating to the Registrable
Securities which names each of the Investors as a selling stockholder
thereunder.

In connection with the foregoing, we advise you that a member of the SEC's staff
has advised us by telephone that the SEC has entered an order declaring the
Registration Statement effective under the 1933 Act at [ENTER TIME OF
EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS] and we have no knowledge, after
telephonic inquiry of a member of the SEC's staff, that any stop order
suspending its effectiveness has been issued or that any proceedings for that
purpose are pending before, or threatened by, the SEC and the Registrable
Securities are available for resale under the 1933 Act pursuant to the
Registration Statement.

Very truly yours,

[ISSUER'S COUNSEL]

By:_______________________________

cc:  [LIST NAMES OF INVESTORS]

<PAGE>

                                     ANNEX A

                              PLAN OF DISTRIBUTION

      The Selling Stockholders and any of their pledgees, assignees and
successors-in-interest may, from time to time, sell any or all of their shares
of Common Stock on any stock exchange, market or trading facility on which the
shares are traded or in private transactions. These sales may be at fixed or
negotiated prices. The Selling Stockholders may use any one or more of the
following methods when selling shares:

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

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

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

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

      o     privately negotiated transactions;

      o     settlement of short sales;

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

      o     a combination of any such methods of sale; and

      o     any other method permitted pursuant to applicable law.

      The Selling Stockholders may also sell shares under Rule 144 under the
Securities Act, if available, rather than under this prospectus.

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

      The Selling Stockholders may from time to time pledge or grant a security
interest in some or all of the shares of common stock owned by them and, if they
default in the performance of their secured obligations, the pledgees or secured
parties may offer and sell the shares of common stock from time to time under
this prospectus, or under an amendment to this prospectus under Rule 424(b)(3)
or other applicable provision of the Securities Act of 1933 amending the list of
Selling Stockholders to include the pledgee, transferee or other successors in
interest as Selling Stockholders under this prospectus.
<PAGE>

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

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

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