Document:

Exhibit 10(i)

                          REGISTRATION RIGHTS AGREEMENT

                  REGISTRATION RIGHTS AGREEMENT (this "Agreement"),  dated as of
January 6, 2000 by and among Capita Research Group, Inc., a Nevada  corporation,
with  headquarters   located  at  591  Skippack  Pike,  Suite  300,  Blue  Bell,
Pennsylvania 19422 (the "Company"),  and the undersigned buyers (each, a "Buyer"
and collectively, the "Buyers").

                  WHEREAS:

                  A. In connection with the Securities Purchase Agreement by and
among  the  Company  and the  Buyers  and  dated  of  even  date  herewith  (the
"Securities  Purchase  Agreement"),  the Company has agreed,  upon the terms and
subject to the conditions of the  Securities  Purchase  Agreement,  to issue and
sell to the Buyers  1,000,000 of the Company's  units (the  "Units"),  each unit
consisting of (i) one share of the Company's  common stock,  $.001 par value per
share (the "Common  Stock"),  (ii) one of the Company's A Common Stock  Purchase
Warrants to purchase one share of the Company's  Common Stock  exercisable  at a
purchase  price of $.50 per share of Common Stock (the "A  Warrants")  and (iii)
one of the Company's B Common Stock  Purchase  Warrants to purchase one share of
the Company's Common Stock exercisable at a purchase price of $1.00 per share of
Common  Stock  (the  "B  Warrants",  and  together  with  the  A  Warrants,  the
"Warrants")  (such shares of Common  Stock issued upon  exercise of the Warrants
are  hereinafter  referred to as the "Warrant  Shares",  and  together  with the
Units, Common Stock and the Warrants, the "Securities"); and

                  B. To induce the Buyers to execute and deliver the  Securities
Purchase  Agreement,  the  Company  has agreed to provide  certain  registration
rights  under  the  Securities  Act of  1933,  as  amended,  and the  rules  and
regulations  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
Buyers hereby agree as follows:

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

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

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

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

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                  c. "register,"  "registered,"  and  "registration"  refer to a
registration   effected  by  preparing  and  filing  one  or  more  Registration
Statements  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
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").

                  d. "Registrable  Securities" means (i) the Common Stock issued
and sold pursuant to the Securities Purchase Agreement,  (ii) the Warrant Shares
issued or issuable upon exercise of the Warrants and (iii) any shares of capital
stock issued or issuable with respect to the Common Stock, Warrant Shares or the
Warrants  as a result  of any stock  split,  stock  dividend,  recapitalization,
exchange or similar event.

                  e. "Registration  Statement" means a registration statement of
the Company filed under the 1933 Act.

         Capitalized  terms used herein and not otherwise  defined  herein shall
have the respective meanings set forth in the Securities Purchase Agreement.

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

                  a. Mandatory Registration.  The Company shall prepare, and, on
or prior to thirty (30) calendar days after the date of the initial  issuance of
the Units, file with the SEC a Registration Statement or Registration Statements
(as is  necessary),  covering the resale of all of the  Registrable  Securities,
which  Registration  Statement(s)  shall state that, in accordance with Rule 416
promulgated under the 1933 Act, such Registration  Statement(s) also covers such
indeterminate number of additional shares of Common Stock as may become issuable
in connection  with the Common Stock or upon exercise of the Warrants to prevent
dilution resulting from stock splits,  stock dividends or similar  transactions.
Such Registration Statement shall initially register for resale 3,000,000 shares
of Common  Stock equal to the number of  Registrable  Securities  as of the date
immediately  preceding the date the  Registration  Statement is initially  filed
with the SEC subject to adjustment as provided in Section 3(b).  Such registered
shares of Common Stock shall be allocated  among the Investors pro rata based on
the total number of  Registrable  Securities  issued or issuable as of each date
that a  Registration  Statement,  as  amended,  relating  to the  resale  of the
Registrable  Securities is declared  effective by the SEC. The Company shall use
its  reasonable  best  efforts  to  have  the  Registration  Statement  declared
effective  by the SEC  within  ninety  (90) days  after the date of the  initial
issuance of the Units.

                  b.  Counsel  and  Investment  Bankers.  Subject  to  Section 5
hereof,  in connection with any offering pursuant to Section 2, the Buyers shall
have the right to select legal counsel and an  investment  banker or bankers and
manager  or  managers  to  administer  their  interest  in the  offering,  which
investment  banker  or  bankers  or  manager  or  managers  shall be  reasonably
satisfactory  to the Company.  The Company shall  reasonably  cooperate with any
such counsel, investment bankers and managers.

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<PAGE>

                  c.  Form S-3.  The  Company  shall  register  the  Registrable
Securities  on Form S-3 as soon as such  form is  available,  provided  that the
Company shall maintain the  effectiveness of the Registration  Statement then in
effect  until such time as a  Registration  Statement  on Form S-3  covering the
Registrable Securities has been declared effective by the SEC. The Company shall
file all reports  required  to be filed by the Company  with the SEC in a timely
manner so as to maintain such eligibility for the use of Form S-3.

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

                  At  such  time  as  the  Company  is   obligated   to  file  a
Registration  Statement  with the SEC pursuant to Section 2(a), the Company will
use its best efforts to effect the registration of the Registrable Securities in
accordance  with the  intended  method  of  disposition  thereof  and,  pursuant
thereto, the Company shall have the following obligations:

                  a. The Company shall promptly  prepare and file with the SEC a
Registration  Statement with respect to the Registrable  Securities (on or prior
to the thirtieth  (30th) calendar day after the date of the initial  issuance of
the  Units) and use its  reasonable  best  efforts  to cause  such  Registration
Statement(s)  relating to Registrable  Securities to become effective as soon as
possible after such filing (but no later than ninety (90) days after the initial
issuance of the Units for the registration of Registrable Securities pursuant to
Section 2(a)), and keep the Registration Statement(s) effective pursuant to Rule
415 at all times until the earlier of (i) the date as of which the Investors may
sell all of the  Registrable  Securities  without  restriction  pursuant to Rule
144(k)  promulgated under the 1933 Act (or successor  thereto) and (ii) the date
on which the  Investors  shall  have sold all the  Registrable  Securities  (the
"Registration   Period"),   which  Registration   Statement(s)   (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. In the event
that such Registration  Statement is not filed with the SEC within 30 days after
the  initial  issuance  of the  Units,  the  Company  will pay the  Investors  a
nonrefundable penalty payment of Common Stock in the amount of 100,000 shares of
Common Stock for each 30 day period thereafter  (prorated for any partial period
thereof) until the Registration Statement is filed.

                  b.  The  Company  shall  prepare  and  file  with the SEC such
amendments  (including   post-effective   amendments)  and  supplements  to  the
Registration  Statement(s)  and the  prospectus(es)  used in connection with the
Registration Statement(s), which prospectus(es) are to be filed pursuant to Rule
424 promulgated under the 1933 Act, as may be necessary to keep the Registration
Statement(s)  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 the
Registration  Statement(s) 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 the  Registration
Statement(s).  In the event the number of shares  available under a Registration
Statement  filed pursuant to this Agreement is  insufficient to cover all of the
Registrable  Securities,  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 all of the Registrable Securities, in each
case, as soon as  practicable,  but in any event within  fifteen (15) days after
the necessity therefor arises (based on the market price of the Common Stock and
other  relevant  factors on which the Company  reasonably  elects to rely).  The
Company shall use it best efforts to cause any such necessary  amendment  and/or
new Registration  Statement to become effective as soon as practicable following
the filing thereof. In addition any such amendment or new Registration Statement
shall for  purposes  of  Section  3(a)  above be  deemed  to be a  "Registration
Statement".

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                  c.  The  Company  shall   furnish  to  each   Investor   whose
Registrable  Securities are included in the  Registration  Statement(s)  and its
legal counsel  without  charge (i) promptly after the same is prepared and filed
with the SEC at least one copy of the  Registration  Statement and any amendment
thereto,   including   financial   statements  and   schedules,   all  documents
incorporated therein by reference and all exhibits, the prospectus(es)  included
in such Registration  Statement(s)  (including each preliminary prospectus) and,
with regards to the Registration  Statement,  any correspondence by or on behalf
of the  Company to the SEC or the staff of the SEC and any  correspondence  from
the SEC or the staff of the SEC to the Company or its representatives, (ii) upon
the  effectiveness  of  any  Registration  Statement,  ten  (10)  copies  of the
prospectus  included  in such  Registration  Statement  and all  amendments  and
supplements  thereto  (or such  other  number  of copies  as such  Investor  may
reasonably  request) and (iii) such other  documents,  including any preliminary
prospectus,  as such Investor may reasonably  request in order to facilitate the
disposition of the Registrable  Securities  owned by such Investor.  The Company
will promptly respond to any and all comments received from the SEC, with a view
towards  causing  any  Registration  Statement  or any  amendment  thereto to be
declared  effective  by the SEC as soon as  practicable  and  shall,  subject to
Section  3(h),  promptly  file an  acceleration  request as soon as  practicable
following  the  resolution  or clearance of all SEC comments or, if  applicable,
following  notification  by the  SEC  that  the  Registration  Statement  or any
amendment thereto will not be subject to review.

                  d. The Company  shall use  reasonable  efforts to (i) register
and qualify the Registrable Securities covered by the Registration  Statement(s)
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 (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  threatening  of any  proceeding  for such
purpose.

                  e.  In  the  event  Investors  who  hold  a  majority  of  the
Registrable Securities being offered in the offering select underwriters for the
offering,  the Company  shall,  subject to Section 2(b)  hereof,  enter into and
perform its obligations under an underwriting  agreement, in usual and customary
form, including, without limitation,  customary indemnification and contribution
obligations, with the underwriters of such offering.

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<PAGE>

                  f. As promptly as  practicable  after  becoming  aware of such
event, 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,   and  promptly  prepare  a  supplement  or  amendment  to  the
Registration Statement to correct such untrue statement or omission, and deliver
ten (10) copies of such  supplement or amendment to each Investor (or such other
number of copies as such  Investor  may  reasonably  request).  The  Company may
postpone  such  filing for a  reasonable  period of time,  not to exceed 60 days
during any twelve-month period, if the Company has been advised by legal counsel
that  such  filing  would  require  the  disclosure  of  a  material   impending
transaction  or other  material,  non-public  matter and the Company  determined
reasonably and in good faith that such disclosure  would have a material adverse
effect on the Company.  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 and by overnight mail), (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.

                  g. 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  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  (and,  in the event of an  underwritten  offering,  the
managing  underwriters) 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.

                  h. The Company shall permit each Investor and a single firm of
counsel,  initially Schulte Roth & Zabel LLP or such other counsel as thereafter
designated as selling stockholders' counsel by the Investors who hold a majority
of the  Registrable  Securities  being  sold,  to review  and  comment  upon the
Registration  Statement(s)  and all amendments and supplements  thereto at least
(i) ten (10) days  prior to its filing  with the SEC in the case of the  initial
registration  statement  pursuant  to Section  3(a) and (ii) in all other  cases
seven (7) days prior to their  filing with the SEC, and not file any document in
a form to which such counsel reasonably  objects,  provided,  however,  that the
application of the penalty  provisions set forth in Section 3(a) hereof shall be
extended  for the  number of days  that such  counsel  does not  timely  comment
thereon (it being  understood  and agreed  that,  (i) in the case of the initial
registration  statement  pursuant to Section 3(a),  comments shall be deemed not
timely to the  extent  given more than five (5) days  after  submission  to such
counsel and (ii) in all other cases  comments  shall be deemed not timely to the
extent  given  more than four (4) days after  submission  to such  counsel.  The
Company shall not submit a request for  acceleration of the  effectiveness  of a
Registration  Statement(s)  or any amendment or supplement  thereto  without the
prior  approval  of  such  counsel,  which  consent  shall  not be  unreasonably
withheld.

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                  i. At the request of the  Investors who hold a majority of the
Registrable  Securities being sold, the Company shall furnish,  on the date that
Registrable  Securities  are  delivered to an  underwriter,  if any, for sale in
connection with the Registration Statement (i) if required by an underwriter,  a
letter,  dated  such  date,  from the  Company's  independent  certified  public
accountants  in form  and  substance  as is  customarily  given  by  independent
certified public accountants to underwriters in an underwritten public offering,
addressed  to the  underwriters,  and (ii) if  required  by an  underwriter,  an
opinion, dated as of such date, of counsel representing the Company for purposes
of such Registration  Statement,  in form, scope and substance as is customarily
given in an underwritten public offering, addressed to the underwriters.

                  j. The Company shall make  available for inspection by (i) any
Investor,  (ii) any underwriter  participating in any disposition  pursuant to a
Registration Statement,  (iii) one firm of attorneys and one firm of accountants
or other  agents  retained  by the  Investors,  and  (iv) one firm of  attorneys
retained by all such underwriters (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  to enable  each  Inspector  to  exercise  its due
diligence  responsibility,  and  cause the  Company's  officers,  directors  and
employees to supply all information  which any Inspector may reasonably  request
for purposes of such due diligence; provided, however, that each Inspector shall
hold in  strict  confidence  and  shall not make any  disclosure  (except  to an
Investor) or use of 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
Agreement.  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.  Nothing herein (or in any other confidentiality agreement between
the Company and any Investor) shall be deemed to limit the Investors' ability to
sell  Registrable  Securities  in a manner  which is otherwise  consistent  with
applicable laws and regulations.

                  k.  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 by the Company in violation of this 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.

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                  l. The Company shall use its best efforts  either to (i) cause
all the Registrable  Securities covered by a Registration Statement 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) if  securities  of the same class or series  issued by the Company are then
designated or quoted on the Nasdaq  National  Market  System or Nasdaq  SmallCap
Market,  secure  designation  and  quotation of all the  Registrable  Securities
covered by the  Registration  Statement on the Nasdaq  National Market System or
the Nasdaq SmallCap Market, as applicable,  and, without limiting the generality
of the foregoing, to arrange for at least two market makers to register with the
New  York  Stock  Exchange  or,  if  applicable,  the  National  Association  of
Securities  Dealers,  Inc. 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(l).

                  m. The Company  shall  cooperate  with the  Investors who hold
Registrable Securities being offered and, to the extent applicable, any managing
underwriter or underwriters,  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  managing  underwriter  or  underwriters,  if any, or, if there is no
managing  underwriter or underwriters,  the Investors may reasonably request and
registered in such names as the managing underwriter or underwriters, if any, or
the  Investors  may request.  Not later than the date on which any  Registration
Statement   registering  the  resale  of  Registrable   Securities  is  declared
effective,  the  Company  shall  deliver  to its  transfer  agent  instructions,
accompanied by any reasonably required opinion of counsel,  that permit sales of
unlegended  securities  in a timely  fashion that  complies  with then  mandated
securities settlement procedures for regular way market transactions.

                  n.  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.

                  o. The  Company  shall  provide a CUSIP  number and a transfer
agent of all such  Registrable  Securities  not later than the effective date of
such Registration Statement.

                  p. If requested by the managing  underwriters  or an Investor,
the  Company  shall  immediately  incorporate  in  a  prospectus  supplement  or
post-effective  amendment such information as the managing  underwriters and the
Investors agree should be included therein relating to the sale and distribution
of Registrable  Securities,  including,  without  limitation,  information  with
respect to the number of Registrable Securities being sold to such underwriters,
the purchase price being paid therefor by such  underwriters and with respect to
any other terms of the underwritten (or best efforts  underwritten)  offering of
the  Registrable  Securities  to be sold in such  offering;  make  all  required
filings of such  prospectus  supplement or  post-effective  amendment as soon as
notified of the matters to be  incorporated  in such  prospectus  supplement  or
post-effective  amendment; and supplement or make amendments to any Registration
Statement if requested by a shareholder or any  underwriter of such  Registrable
Securities.

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                  q. 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.

                  r. 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.

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

                  a. At least  seven  (7) days  prior to the  first  anticipated
filing  date of the  Registration  Statement,  the  Company  shall  notify  each
Investor or its counsel in writing of the information the Company  requires from
each  such  Investor  if such  Investor  elects  to have any of such  Investor's
Registrable  Securities  included in the Registration  Statement.  It shall be a
condition   precedent  to  the  obligations  of  the  Company  to  complete  the
registration  pursuant  to  this  Agreement  with  respect  to  the  Registrable
Securities  of a particular  Investor  that such  Investor  shall furnish to the
Company such information as may be requested in writing by the Company regarding
itself,  the  Registrable  Securities  held by it and  the  intended  method  of
disposition  of the  Registrable  Securities  held by it as shall be  reasonably
required to effect the  registration  of such  Registrable  Securities and shall
execute such documents in connection  with such  registration as the Company may
reasonably request.

                  b.  Each  Investor  by  such  Investor's   acceptance  of  the
Registrable  Securities  agrees to  cooperate  with the  Company  as  reasonably
requested by the Company in connection  with the  preparation  and filing of the
Registration  Statement(s)  hereunder  unless such  Investor  has  notified  the
Company in writing of such Investor's election to exclude all of such Investor's
Registrable Securities from the Registration Statement.

                  c. 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(g)
or the first  sentence  of 3(f),  such  Investor  will  immediately  discontinue
disposition of Registrable Securities pursuant to the 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(g) or the
first  sentence of 3(f) and, if so directed by the Company,  such Investor shall
deliver to the Company (at the expense of the  Company) or destroy all copies in
such  Investor's  possession,   of  the  prospectus  covering  such  Registrable
Securities current at the time of receipt of such notice.

                  d.  No   Investor   may   participate   in  any   underwritten
registration  hereunder  unless such Investor (i) agrees to sell such Investor's
Registrable  Securities on the basis provided in any  underwriting  arrangements
approved by the Investors entitled hereunder to approve such arrangements,  (ii)
completes  and executes  all  questionnaires,  powers of attorney,  indemnities,
underwriting  agreements and other documents reasonably required under the terms
of such underwriting arrangements, and (iii) agrees to pay its pro rata share of
all underwriting discounts and commissions.

                                        8
<PAGE>

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

                  All reasonable expenses, other than underwriting discounts and
commissions,   incurred   in   connection   with   registrations,   filings   or
qualifications pursuant to Sections 2 and 3, including,  without limitation, all
registration, listing and qualifications fees, printers and accounting fees, and
fees and  disbursements of counsel for the Company and fees and disbursements of
one counsel for the Investors (up to a maximum of $5,000 per registration) shall
be paid by the Company. In addition, the Company shall pay all of the Investors'
reasonable  costs  (including  legal  fees)  incurred  in  connection  with  the
successful enforcement of the Investors' rights hereunder.

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

                  In the event any  Registrable  Securities  are  included  in a
Registration Statement under this Agreement:

                  a. To the fullest  extent  permitted by law, the Company will,
and hereby does,  indemnify,  hold  harmless and defend each  Investor who holds
such  Registrable  Securities,  the directors,  officers,  partners,  employees,
agents and each Person,  if any, who controls any Investor within the meaning of
the 1933 Act or the  Securities  Exchange  Act of 1934,  as  amended  (the "1934
Act"),  and any underwriter (as defined in the 1933 Act) for the Investors,  and
the  directors  and officers of, and each Person,  if any, who controls any such
underwriter  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, 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,
or the  omission  or alleged  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 the statements therein were made, not misleading, (ii)
any untrue statement or alleged untrue statement of a material fact contained in
any  preliminary  prospectus  if  used  prior  to the  effective  date  of  such
Registration  Statement,  or  contained in the 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  thereunder  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"). Subject
to the  restrictions  set forth in  Section  6(d) with  respect to the number of
legal  counsel,  the  Company  shall  reimburse  the  Investors  and  each  such
underwriter  or controlling  person,  promptly as such expenses are incurred and
are due and payable, for any legal fees or other reasonable expenses incurred by
them in connection with investigating or defending any such Claim.

                                        9
<PAGE>

Notwithstanding  anything to the contrary contained herein, the  indemnification
agreement contained in this Section 6(a): (i) shall not apply to a Claim 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 any Indemnified  Person
or underwriter for such Indemnified  Person expressly for use in connection with
the preparation of the Registration  Statement or any such amendment  thereof or
supplement thereto; (ii) with respect to any preliminary  prospectus,  shall not
inure to the benefit of any such person from whom the person  asserting any such
Claim purchased the  Registrable  Securities that are the subject thereof (or to
the benefit of any person  controlling  such person) if the untrue  statement or
omission of material fact contained in the preliminary  prospectus was corrected
in the  prospectus,  as then amended or  supplemented,  if such  prospectus  was
timely  made  available  by the  Company  pursuant  to  Section  3(c),  and  the
Indemnified  Person was  promptly  advised in writing  not to use the  incorrect
prospectus  prior to the use giving  rise to a  Violation  and such  Indemnified
Person,  notwithstanding  such  advice,  used it;  and (iii)  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.

                  b. In connection with any  Registration  Statement in which an
Investor  is  participating,  each such  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 who signs the Registration  Statement,  each Person, if any, who
controls  the  Company  within  the  meaning  of the  1933  Act or the  1934 Act
(collectively and together with an Indemnified Person, 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 are 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  preliminary  prospectus  shall not inure to the  benefit of any
Indemnified Party if the untrue statement or omission of material fact contained
in the preliminary prospectus was corrected on a timely basis in the prospectus,
as then amended or supplemented.

                                       10
<PAGE>

                  c. The Company shall be entitled to receive  indemnities  from
underwriters,  selling brokers,  dealer managers and similar securities industry
professionals participating in any distribution,  to the same extent as provided
above,  with  respect  to  information  such  persons  so  furnished  in writing
expressly for inclusion in the Registration Statement.

                  d.  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   reasonably   satisfactory  to  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  to be  paid  by the  indemnifying  party,  if,  in the
reasonable  opinion of counsel retained by the Indemnified Person or Indemnified
Party, as the case may be, 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 Company shall pay  reasonable  fees for only one separate legal
counsel  for the  Investors,  and such legal  counsel  shall be  selected by the
Investors holding a majority in interest of the Registrable  Securities included
in the Registration  Statement to which the Claim relates. 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 written consent,  provided,  however,  that the
indemnifying  party shall not  unreasonably  withhold,  delay or  condition  its
consent.  No  indemnifying  party shall,  without the consent of the Indemnified
Party or Indemnified Person,  which consent shall not be unreasonably  withheld,
delayed  or  conditioned,  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.

                                       11
<PAGE>

                  e. 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.

                  f.  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 contribution shall be made under  circumstances where the maker would not
have been  liable for  indemnification  under the fault  standards  set forth in
Section  6; (ii) 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 (iii) contribution  (together with
any  indemnification or other obligations under this Agreement) by any seller of
Registrable  Securities shall be limited in amount to the net amount of proceeds
received by such seller from the sale of such Registrable Securities.

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

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

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

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

                                       12
<PAGE>

         9.       ASSIGNMENT OF REGISTRATION RIGHTS.
                  ---------------------------------

                  The rights to have the Company register Registrable Securities
pursuant to this Agreement shall be automatically assignable by the Investors to
any transferee or assignee (a "Transferee") of all or any portion of Registrable
Securities  representing  the  equivalent of at least  175,000  shares of Common
Stock (as appropriately  adjusted for stock splits,  stock dividends and reverse
stock  splits) if: (i) the  Investor  agrees in writing with the  Transferee  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,  and (b) the  securities  with
respect to which such  registration  rights are being  transferred  or assigned;
(iii) immediately  following such transfer or assignment the further disposition
of such  securities  by the  Transferee  is  restricted  under  the 1933 Act and
applicable  state  securities  laws;  (iv) at or  before  the time  the  Company
receives the written  notice  contemplated  by clause (ii) of this  sentence the
Transferee  agrees  in  writing  with  the  Company  to be  bound  by all of the
provisions  contained  herein;  (v)  such  transfer  shall  have  been  made  in
accordance  with  the  applicable   requirements  of  the  Securities   Purchase
Agreement;  (vi) such Transferee shall be an "accredited  investor" as that term
is defined in Rule 501 of Regulation D promulgated under the 1933 Act; and (vii)
in the event the assignment  occurs  subsequent to the date of  effectiveness of
the  Registration  Statement  required to be filed pursuant to Section 2(a), the
Transferee  agrees to pay all reasonable  expenses of amending or  supplementing
such Registration Statement to reflect such assignment.

         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 hold  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.

         11.      MISCELLANEOUS.
                  -------------

                  a. A person or entity is deemed to be a holder of  Registrable
Securities  whenever  such  person or entity  owns of  record  such  Registrable
Securities.  If  the  Company  receives  conflicting  instructions,  notices  or
elections  from  two or more  persons  or  entities  with  respect  to the  same
Registrable  Securities,  the Company shall act upon the basis of  instructions,
notices or elections  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 a copy
is mailed by U.S. certified mail, return receipt requested; (iii) three (3) days
after being sent by U.S. certified mail, return receipt  requested;  or (iv) one
(1) 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:

                                       13
<PAGE>

                  if to the Company:

                           Capita Research Group, Inc.
                           591 Skippack Pike
                           Suite 300
                          Blue Bell, Pennsylvania 19422
                           Telephone:     215-619-7777
                           Facsimile:     215-619-0775
                           Attention:     Chief Financial Officer

                  With a copy to:

                           Torys
                           237 Park Avenue
                            New York, New York 10017
                           Facsimile:     212-682-0200
                           Attention:     Andrew J. Beck, Esq.

                  if to a Buyer,  to its  address  and  facsimile  number on the
                  Schedule  of  Buyers  attached  hereto,  with  copies  to such
                  Buyer's counsel as set forth on the Schedule of Buyers.

         Each party shall  provide five (5) days prior notice to the other party
of any change in address, phone number or facsimile number.

                  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.

                  d. This  Agreement  shall be  governed by and  interpreted  in
accordance  with  the  laws of the  State  of New  York  without  regard  to the
principles  of conflict of laws.  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.

                  e. This  Agreement,  the Warrants and the Securities  Purchase
Agreement  (including all schedules and exhibits thereto)  constitute the entire
agreement among the parties hereto with respect to the subject matter hereof and
thereof. There are no restrictions,  promises, warranties or undertakings, other
than those set forth or  referred  to herein  and  therein.  The  aforementioned
documents  supersede all prior agreements and  understandings  among the parties
hereto with respect to the subject matter hereof and thereof.

                  f. Subject to the  requirements  of Section 9, 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.

                                       14
<PAGE>

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

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

                                       15
<PAGE>

                  IN WITNESS  WHEREOF,  the Buyers and the  Company  have caused
this  Registration  Rights  Agreement  to be duly  executed as of the date first
written above.

                                            COMPANY:
                                            --------

                                            CAPITA RESEARCH GROUP, INC.

                                            By:/s/ David B. Hunter
                                            ----------------------
                                                 Name: David B. Hunter
                                                 Its: President

                                       16
<PAGE>

                     BUYERS:

                     SOUNDSHORE HOLDINGS LTD.

                     By: /s/ Anthony Giordano
                     ------------------------
                          Name: Anthony Giordano
                          Its: Director

                     SOUNDSHORE OPPORTUNITY HOLDING FUND LTD.

                     By: /s/ Anthony Giordano
                     ------------------------
                          Name: Anthony Giordano
                          Its: Director

                     SOUNDSHORE STRATEGIC HOLDING FUND LTD.

                     By: /s/ Anthony Giordano
                     ------------------------
                          Name: Anthony Giordano
                          Its: Director

<PAGE>

<TABLE>

                               SCHEDULE OF BUYERS
<CAPTION>

Investor Name, Address and              Number of shares of               Number of          Investor's Advisor and
     Facsimile Number                      Common Stock                   Warrants           Legal Counsel Address
     ----------------                      ------------                   --------           ---------------------
<S>                                           <C>                    <C>                     <C>
SoundShore Holdings Ltd. (Bermuda)            666,750                666,750 (A Warrants)    Eleazer Klein, Esq.
                                                                                             Schulte Roth & Zabel LLP
                                                                     666,750 (B Warrants)    New York, NY 10022
c/o AIG International Management                                                             Fax:  (212) 593-5955
Company, Inc.
1281 East Main Street
Stamford, Connecticut 06902
Fax: (203) 324-8488

SoundShore Strategic                          118,750                118,750 (A Warrants)    Eleazer Klein, Esq.
Holding Fund Ltd. (Bermuda)                                                                  Schulte Roth & Zabel LLP
                                                                     118,750 (B Warrants)    New York, NY 10022
c/o AIG International Management                                                             Fax:  (212) 593-5955
Company, Inc.
1281 East Main Street
Stamford, Connecticut 06902
Fax: (203) 324-8488
</TABLE>

                                       17Exhibit 10(j)

                          REGISTRATION RIGHTS AGREEMENT

                  REGISTRATION RIGHTS AGREEMENT (this "Agreement"),  dated as of
January 21, 2000 by and among Capita Research Group, Inc., a Nevada corporation,
with  headquarters   located  at  591  Skippack  Pike,  Suite  300,  Blue  Bell,
Pennsylvania 19422 (the "Company"),  and the undersigned buyers (each, a "Buyer"
and collectively, the "Buyers").

                  WHEREAS:

                  A. In connection with the Securities Purchase Agreement by and
among  the  Company  and the  Buyers  and  dated  of  even  date  herewith  (the
"Securities  Purchase  Agreement"),  the Company has agreed,  upon the terms and
subject to the conditions of the  Securities  Purchase  Agreement,  to issue and
sell to the Buyers  260,000 of the  Company's  units  (the  "Units"),  each unit
consisting of (i) one share of the Company's  common stock,  $.001 par value per
share (the "Common  Stock"),  (ii) one of the Company's A Common Stock  Purchase
Warrants to purchase one share of the Company's  Common Stock  exercisable  at a
purchase  price of $.50 per share of Common Stock (the "A  Warrants")  and (iii)
one of the Company's B Common Stock  Purchase  Warrants to purchase one share of
the Company's Common Stock exercisable at a purchase price of $1.00 per share of
Common  Stock  (the  "B  Warrants",  and  together  with  the  A  Warrants,  the
"Warrants")  (such shares of Common  Stock issued upon  exercise of the Warrants
are  hereinafter  referred to as the "Warrant  Shares",  and  together  with the
Units, Common Stock and the Warrants, the "Securities"); and

                  B. To induce the Buyers to execute and deliver the  Securities
Purchase  Agreement,  the  Company  has agreed to provide  certain  registration
rights  under  the  Securities  Act of  1933,  as  amended,  and the  rules  and
regulations  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
Buyers hereby agree as follows:

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

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

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

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

                                        1
<PAGE>

                  c. "register,"  "registered,"  and  "registration"  refer to a
registration   effected  by  preparing  and  filing  one  or  more  Registration
Statements  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
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").

                  d. "Registrable  Securities" means (i) the Common Stock issued
and sold pursuant to the Securities Purchase Agreement,  (ii) the Warrant Shares
issued or issuable upon exercise of the Warrants and (iii) any shares of capital
stock issued or issuable with respect to the Common Stock, Warrant Shares or the
Warrants  as a result  of any stock  split,  stock  dividend,  recapitalization,
exchange or similar event.

                  e. "Registration  Statement" means a registration statement of
the Company filed under the 1933 Act.

         Capitalized  terms used herein and not otherwise  defined  herein shall
have the respective meanings set forth in the Securities Purchase Agreement.

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

                  a. Mandatory Registration.  The Company shall prepare, and, on
or prior to thirty (30) calendar days after the date of the initial  issuance of
the Units, file with the SEC a Registration Statement or Registration Statements
(as is  necessary),  covering the resale of all of the  Registrable  Securities,
which  Registration  Statement(s)  shall state that, in accordance with Rule 416
promulgated under the 1933 Act, such Registration  Statement(s) also covers such
indeterminate number of additional shares of Common Stock as may become issuable
in connection  with the Common Stock or upon exercise of the Warrants to prevent
dilution resulting from stock splits,  stock dividends or similar  transactions.
Such Registration  Statement shall initially  register for resale 780,000 shares
of Common  Stock equal to the number of  Registrable  Securities  as of the date
immediately  preceding the date the  Registration  Statement is initially  filed
with the SEC subject to adjustment as provided in Section 3(b).  Such registered
shares of Common Stock shall be allocated  among the Investors pro rata based on
the total number of  Registrable  Securities  issued or issuable as of each date
that a  Registration  Statement,  as  amended,  relating  to the  resale  of the
Registrable  Securities is declared  effective by the SEC. The Company shall use
its  reasonable  best  efforts  to  have  the  Registration  Statement  declared
effective  by the SEC  within  ninety  (90) days  after the date of the  initial
issuance of the Units.

                  b.  Counsel  and  Investment  Bankers.  Subject  to  Section 5
hereof,  in connection with any offering pursuant to Section 2, the Buyers shall
have the right to select legal counsel and an  investment  banker or bankers and
manager  or  managers  to  administer  their  interest  in the  offering,  which
investment  banker  or  bankers  or  manager  or  managers  shall be  reasonably
satisfactory  to the Company.  The Company shall  reasonably  cooperate with any
such counsel, investment bankers and managers.

                                        2
<PAGE>

                  c.  Form S-3.  The  Company  shall  register  the  Registrable
Securities  on Form S-3 as soon as such  form is  available,  provided  that the
Company shall maintain the  effectiveness of the Registration  Statement then in
effect  until such time as a  Registration  Statement  on Form S-3  covering the
Registrable Securities has been declared effective by the SEC. The Company shall
file all reports  required  to be filed by the Company  with the SEC in a timely
manner so as to maintain such eligibility for the use of Form S-3.

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

                  At  such  time  as  the  Company  is   obligated   to  file  a
Registration  Statement  with the SEC pursuant to Section 2(a), the Company will
use its best efforts to effect the registration of the Registrable Securities in
accordance  with the  intended  method  of  disposition  thereof  and,  pursuant
thereto, the Company shall have the following obligations:

                  a. The Company shall promptly  prepare and file with the SEC a
Registration  Statement with respect to the Registrable  Securities (on or prior
to the thirtieth  (30th) calendar day after the date of the initial  issuance of
the  Units) and use its  reasonable  best  efforts  to cause  such  Registration
Statement(s)  relating to Registrable  Securities to become effective as soon as
possible after such filing (but no later than ninety (90) days after the initial
issuance of the Units for the registration of Registrable Securities pursuant to
Section 2(a)), and keep the Registration Statement(s) effective pursuant to Rule
415 at all times until the earlier of (i) the date as of which the Investors may
sell all of the  Registrable  Securities  without  restriction  pursuant to Rule
144(k)  promulgated under the 1933 Act (or successor  thereto) and (ii) the date
on which the  Investors  shall  have sold all the  Registrable  Securities  (the
"Registration   Period"),   which  Registration   Statement(s)   (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. In the event
that such Registration  Statement is not filed with the SEC within 30 days after
the  initial  issuance  of the  Units,  the  Company  will pay the  Investors  a
nonrefundable  penalty payment of Common Stock in the amount of 26,000 shares of
Common Stock for each 30 day period thereafter  (prorated for any partial period
thereof) until the Registration Statement is filed.

                  b.  The  Company  shall  prepare  and  file  with the SEC such
amendments  (including   post-effective   amendments)  and  supplements  to  the
Registration  Statement(s)  and the  prospectus(es)  used in connection with the
Registration Statement(s), which prospectus(es) are to be filed pursuant to Rule
424 promulgated under the 1933 Act, as may be necessary to keep the Registration
Statement(s)  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 the
Registration  Statement(s) 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 the  Registration
Statement(s).  In the event the number of shares  available under a Registration
Statement  filed pursuant to this Agreement is  insufficient to cover all of the
Registrable  Securities,  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 all of the Registrable Securities, in each
case, as soon as  practicable,  but in any event within  fifteen (15) days after
the necessity therefor arises (based on the market price of the Common Stock and
other  relevant  factors on which the Company  reasonably  elects to rely).  The
Company shall use it best efforts to cause any such necessary  amendment  and/or
new Registration  Statement to become effective as soon as practicable following
the filing thereof. In addition any such amendment or new Registration Statement
shall for  purposes  of  Section  3(a)  above be  deemed  to be a  "Registration
Statement".

                                        3
<PAGE>

                  c.  The  Company  shall   furnish  to  each   Investor   whose
Registrable  Securities are included in the  Registration  Statement(s)  and its
legal counsel  without  charge (i) promptly after the same is prepared and filed
with the SEC at least one copy of the  Registration  Statement and any amendment
thereto,   including   financial   statements  and   schedules,   all  documents
incorporated therein by reference and all exhibits, the prospectus(es)  included
in such Registration  Statement(s)  (including each preliminary prospectus) and,
with regards to the Registration  Statement,  any correspondence by or on behalf
of the  Company to the SEC or the staff of the SEC and any  correspondence  from
the SEC or the staff of the SEC to the Company or its representatives, (ii) upon
the  effectiveness  of  any  Registration  Statement,  ten  (10)  copies  of the
prospectus  included  in such  Registration  Statement  and all  amendments  and
supplements  thereto  (or such  other  number  of copies  as such  Investor  may
reasonably  request) and (iii) such other  documents,  including any preliminary
prospectus,  as such Investor may reasonably  request in order to facilitate the
disposition of the Registrable  Securities  owned by such Investor.  The Company
will promptly respond to any and all comments received from the SEC, with a view
towards  causing  any  Registration  Statement  or any  amendment  thereto to be
declared  effective  by the SEC as soon as  practicable  and  shall,  subject to
Section  3(h),  promptly  file an  acceleration  request as soon as  practicable
following  the  resolution  or clearance of all SEC comments or, if  applicable,
following  notification  by the  SEC  that  the  Registration  Statement  or any
amendment thereto will not be subject to review.

                  d. The Company  shall use  reasonable  efforts to (i) register
and qualify the Registrable Securities covered by the Registration  Statement(s)
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 (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  threatening  of any  proceeding  for such
purpose.

                  e.  In  the  event  Investors  who  hold  a  majority  of  the
Registrable Securities being offered in the offering select underwriters for the
offering,  the Company  shall,  subject to Section 2(b)  hereof,  enter into and
perform its obligations under an underwriting  agreement, in usual and customary
form, including, without limitation,  customary indemnification and contribution
obligations, with the underwriters of such offering.

                                        4
<PAGE>

                  f. As promptly as  practicable  after  becoming  aware of such
event, 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,   and  promptly  prepare  a  supplement  or  amendment  to  the
Registration Statement to correct such untrue statement or omission, and deliver
ten (10) copies of such  supplement or amendment to each Investor (or such other
number of copies as such  Investor  may  reasonably  request).  The  Company may
postpone  such  filing for a  reasonable  period of time,  not to exceed 60 days
during any twelve-month period, if the Company has been advised by legal counsel
that  such  filing  would  require  the  disclosure  of  a  material   impending
transaction  or other  material,  non-public  matter and the Company  determined
reasonably and in good faith that such disclosure  would have a material adverse
effect on the Company.  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 and by overnight mail), (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.

                  g. 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  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  (and,  in the event of an  underwritten  offering,  the
managing  underwriters) 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.

                  h. The Company shall permit each Investor and a single firm of
counsel, designated as selling stockholders' counsel by the Investors who hold a
majority of the  Registrable  Securities  being sold, to review and comment upon
the  Registration  Statement(s)  and all amendments and  supplements  thereto at
least  seven  (7)  days  prior to their  filing  with the SEC,  and not file any
document in a form to which such counsel reasonably objects, provided,  however,
that the application of the penalty  provisions set forth in Section 3(a) hereof
shall be  extended  for the  number of days that such  counsel  does not  timely
comment  thereon (it being  understood  and agreed that comments shall be deemed
not timely to the extent given more than four (4) days after  submission to such
counsel.  The  Company  shall  not  submit a  request  for  acceleration  of the
effectiveness  of a  Registration  Statement(s)  or any  amendment or supplement
thereto  without the prior approval of such counsel,  which consent shall not be
unreasonably withheld.

                  i. At the request of the  Investors who hold a majority of the
Registrable  Securities being sold, the Company shall furnish,  on the date that
Registrable  Securities  are  delivered to an  underwriter,  if any, for sale in
connection with the Registration Statement (i) if required by an underwriter,  a
letter,  dated  such  date,  from the  Company's  independent  certified  public
accountants  in form  and  substance  as is  customarily  given  by  independent
certified public accountants to underwriters in an underwritten public offering,
addressed  to the  underwriters,  and (ii) if  required  by an  underwriter,  an
opinion, dated as of such date, of counsel representing the Company for purposes
of such Registration  Statement,  in form, scope and substance as is customarily
given in an underwritten public offering, addressed to the underwriters.

                                        5
<PAGE>

                  j. The Company shall make  available for inspection by (i) any
Investor,  (ii) any underwriter  participating in any disposition  pursuant to a
Registration Statement,  (iii) one firm of attorneys and one firm of accountants
or other  agents  retained  by the  Investors,  and  (iv) one firm of  attorneys
retained by all such underwriters (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  to enable  each  Inspector  to  exercise  its due
diligence  responsibility,  and  cause the  Company's  officers,  directors  and
employees to supply all information  which any Inspector may reasonably  request
for purposes of such due diligence; provided, however, that each Inspector shall
hold in  strict  confidence  and  shall not make any  disclosure  (except  to an
Investor) or use of 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
Agreement.  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.  Nothing herein (or in any other confidentiality agreement between
the Company and any Investor) shall be deemed to limit the Investors' ability to
sell  Registrable  Securities  in a manner  which is otherwise  consistent  with
applicable laws and regulations.

                  k.  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 by the Company in violation of this 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.

                  l. The Company shall use its best efforts  either to (i) cause
all the Registrable  Securities covered by a Registration Statement 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

                                        6
<PAGE>

Registrable  Securities is then permitted  under the rules of such exchange,  or
(ii) if  securities  of the same class or series  issued by the Company are then
designated or quoted on the Nasdaq  National  Market  System or Nasdaq  SmallCap
Market,  secure  designation  and  quotation of all the  Registrable  Securities
covered by the  Registration  Statement on the Nasdaq  National Market System or
the Nasdaq SmallCap Market, as applicable,  and, without limiting the generality
of the foregoing, to arrange for at least two market makers to register with the
New  York  Stock  Exchange  or,  if  applicable,  the  National  Association  of
Securities  Dealers,  Inc. 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(l).

                  m. The Company  shall  cooperate  with the  Investors who hold
Registrable Securities being offered and, to the extent applicable, any managing
underwriter or underwriters,  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  managing  underwriter  or  underwriters,  if any, or, if there is no
managing  underwriter or underwriters,  the Investors may reasonably request and
registered in such names as the managing underwriter or underwriters, if any, or
the  Investors  may request.  Not later than the date on which any  Registration
Statement   registering  the  resale  of  Registrable   Securities  is  declared
effective,  the  Company  shall  deliver  to its  transfer  agent  instructions,
accompanied by any reasonably required opinion of counsel,  that permit sales of
unlegended  securities  in a timely  fashion that  complies  with then  mandated
securities settlement procedures for regular way market transactions.

                  n.  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.

                  o. The  Company  shall  provide a CUSIP  number and a transfer
agent of all such  Registrable  Securities  not later than the effective date of
such Registration Statement.

                  p. If requested by the managing  underwriters  or an Investor,
the  Company  shall  immediately  incorporate  in  a  prospectus  supplement  or
post-effective  amendment such information as the managing  underwriters and the
Investors agree should be included therein relating to the sale and distribution
of Registrable  Securities,  including,  without  limitation,  information  with
respect to the number of Registrable Securities being sold to such underwriters,
the purchase price being paid therefor by such  underwriters and with respect to
any other terms of the underwritten (or best efforts  underwritten)  offering of
the  Registrable  Securities  to be sold in such  offering;  make  all  required
filings of such  prospectus  supplement or  post-effective  amendment as soon as
notified of the matters to be  incorporated  in such  prospectus  supplement  or
post-effective  amendment; and supplement or make amendments to any Registration
Statement if requested by a shareholder or any  underwriter of such  Registrable
Securities.

                  q. 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.

                                        7
<PAGE>

                  r. 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.

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

                  a. At least  seven  (7) days  prior to the  first  anticipated
filing  date of the  Registration  Statement,  the  Company  shall  notify  each
Investor or its counsel in writing of the information the Company  requires from
each  such  Investor  if such  Investor  elects  to have any of such  Investor's
Registrable  Securities  included in the Registration  Statement.  It shall be a
condition   precedent  to  the  obligations  of  the  Company  to  complete  the
registration  pursuant  to  this  Agreement  with  respect  to  the  Registrable
Securities  of a particular  Investor  that such  Investor  shall furnish to the
Company such information as may be requested in writing by the Company regarding
itself,  the  Registrable  Securities  held by it and  the  intended  method  of
disposition  of the  Registrable  Securities  held by it as shall be  reasonably
required to effect the  registration  of such  Registrable  Securities and shall
execute such documents in connection  with such  registration as the Company may
reasonably request.

                  b.  Each  Investor  by  such  Investor's   acceptance  of  the
Registrable  Securities  agrees to  cooperate  with the  Company  as  reasonably
requested by the Company in connection  with the  preparation  and filing of the
Registration  Statement(s)  hereunder  unless such  Investor  has  notified  the
Company in writing of such Investor's election to exclude all of such Investor's
Registrable Securities from the Registration Statement.

                  c. 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(g)
or the first  sentence  of 3(f),  such  Investor  will  immediately  discontinue
disposition of Registrable Securities pursuant to the 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(g) or the
first  sentence of 3(f) and, if so directed by the Company,  such Investor shall
deliver to the Company (at the expense of the  Company) or destroy all copies in
such  Investor's  possession,   of  the  prospectus  covering  such  Registrable
Securities current at the time of receipt of such notice.

                  d.  No   Investor   may   participate   in  any   underwritten
registration  hereunder  unless such Investor (i) agrees to sell such Investor's
Registrable  Securities on the basis provided in any  underwriting  arrangements
approved by the Investors entitled hereunder to approve such arrangements,  (ii)
completes  and executes  all  questionnaires,  powers of attorney,  indemnities,
underwriting  agreements and other documents reasonably required under the terms
of such underwriting arrangements, and (iii) agrees to pay its pro rata share of
all underwriting discounts and commissions.

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

                  All reasonable expenses, other than underwriting discounts and
commissions,   incurred   in   connection   with   registrations,   filings   or
qualifications pursuant to Sections 2 and 3, including,  without limitation, all
registration, listing and qualifications fees, printers and accounting fees, and
fees and  disbursements of counsel for the Company and fees and disbursements of
one counsel for the Investors (up to a maximum of $5,000 per registration) shall
be paid by the Company. In addition, the Company shall pay all of the Investors'
reasonable  costs  (including  legal  fees)  incurred  in  connection  with  the
successful enforcement of the Investors' rights hereunder.

                                        8
<PAGE>

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

                  In the event any  Registrable  Securities  are  included  in a
Registration Statement under this Agreement:

                  a. To the fullest  extent  permitted by law, the Company will,
and hereby does,  indemnify,  hold  harmless and defend each  Investor who holds
such  Registrable  Securities,  the directors,  officers,  partners,  employees,
agents and each Person,  if any, who controls any Investor within the meaning of
the 1933 Act or the  Securities  Exchange  Act of 1934,  as  amended  (the "1934
Act"),  and any underwriter (as defined in the 1933 Act) for the Investors,  and
the  directors  and officers of, and each Person,  if any, who controls any such
underwriter  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, 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,
or the  omission  or alleged  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 the statements therein were made, not misleading, (ii)
any untrue statement or alleged untrue statement of a material fact contained in
any  preliminary  prospectus  if  used  prior  to the  effective  date  of  such
Registration  Statement,  or  contained in the 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  thereunder  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"). Subject
to the  restrictions  set forth in  Section  6(d) with  respect to the number of
legal  counsel,  the  Company  shall  reimburse  the  Investors  and  each  such
underwriter  or controlling  person,  promptly as such expenses are incurred and
are due and payable, for any legal fees 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): (i) shall not apply to a Claim 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 any Indemnified  Person
or underwriter for such Indemnified Person expressly for use in connection with

                                        9
<PAGE>

the preparation of the Registration  Statement or any such amendment  thereof or
supplement thereto; (ii) with respect to any preliminary  prospectus,  shall not
inure to the benefit of any such person from whom the person  asserting any such
Claim purchased the  Registrable  Securities that are the subject thereof (or to
the benefit of any person  controlling  such person) if the untrue  statement or
omission of material fact contained in the preliminary  prospectus was corrected
in the  prospectus,  as then amended or  supplemented,  if such  prospectus  was
timely  made  available  by the  Company  pursuant  to  Section  3(c),  and  the
Indemnified  Person was  promptly  advised in writing  not to use the  incorrect
prospectus  prior to the use giving  rise to a  Violation  and such  Indemnified
Person,  notwithstanding  such  advice,  used it;  and (iii)  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.

                  b. In connection with any  Registration  Statement in which an
Investor  is  participating,  each such  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 who signs the Registration  Statement,  each Person, if any, who
controls  the  Company  within  the  meaning  of the  1933  Act or the  1934 Act
(collectively and together with an Indemnified Person, 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 are 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  preliminary  prospectus  shall not inure to the  benefit of any
Indemnified Party if the untrue statement or omission of material fact contained
in the preliminary prospectus was corrected on a timely basis in the prospectus,
as then amended or supplemented.

                  c. The Company shall be entitled to receive  indemnities  from
underwriters,  selling brokers,  dealer managers and similar securities industry
professionals participating in any distribution,  to the same extent as provided
above,  with  respect  to  information  such  persons  so  furnished  in writing
expressly for inclusion in the Registration Statement.

                                       10
<PAGE>

                  d.  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   reasonably   satisfactory  to  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  to be  paid  by the  indemnifying  party,  if,  in the
reasonable  opinion of counsel retained by the Indemnified Person or Indemnified
Party, as the case may be, 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 Company shall pay  reasonable  fees for only one separate legal
counsel  for the  Investors,  and such legal  counsel  shall be  selected by the
Investors holding a majority in interest of the Registrable  Securities included
in the Registration  Statement to which the Claim relates. 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 written consent,  provided,  however,  that the
indemnifying  party shall not  unreasonably  withhold,  delay or  condition  its
consent.  No  indemnifying  party shall,  without the consent of the Indemnified
Party or Indemnified Person,  which consent shall not be unreasonably  withheld,
delayed  or  conditioned,  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.

                  e. 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.

                                       11
<PAGE>

                  f.  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 contribution shall be made under  circumstances where the maker would not
have been  liable for  indemnification  under the fault  standards  set forth in
Section  6; (ii) 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 (iii) contribution  (together with
any  indemnification or other obligations under this Agreement) by any seller of
Registrable  Securities shall be limited in amount to the net amount of proceeds
received by such seller from the sale of such Registrable Securities.

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

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

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

                  b. file with the SEC in a timely  manner all reports and other
documents required of the Company under the 1933 Act and the 1934 Act so long as
the Company  remains  subject to such  requirements  (it being  understood  that
nothing herein shall limit the Company's  obligations  under Section 4(c) of the
Securities  Purchase  Agreement)  and the  filing  of  such  reports  and  other
documents is required for 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 to have the Company register Registrable Securities
pursuant to this Agreement shall be automatically assignable by the Investors to
any transferee or assignee (a "Transferee") of all or any portion of Registrable

                                       12
<PAGE>

Securities representing the equivalent of at least 40,000 shares of Common Stock
(as appropriately  adjusted for stock splits,  stock dividends and reverse stock
splits) if: (i) the  Investor  agrees in writing with the  Transferee  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,  and (b) the  securities  with  respect to
which  such  registration  rights  are  being  transferred  or  assigned;  (iii)
immediately  following  such transfer or assignment  the further  disposition of
such  securities  by the  Transferee  is  restricted  under  the  1933  Act  and
applicable  state  securities  laws;  (iv) at or  before  the time  the  Company
receives the written  notice  contemplated  by clause (ii) of this  sentence the
Transferee  agrees  in  writing  with  the  Company  to be  bound  by all of the
provisions  contained  herein;  (v)  such  transfer  shall  have  been  made  in
accordance  with  the  applicable   requirements  of  the  Securities   Purchase
Agreement;  (vi) such Transferee shall be an "accredited  investor" as that term
is defined in Rule 501 of Regulation D promulgated under the 1933 Act; and (vii)
in the event the assignment  occurs  subsequent to the date of  effectiveness of
the  Registration  Statement  required to be filed pursuant to Section 2(a), the
Transferee  agrees to pay all reasonable  expenses of amending or  supplementing
such Registration Statement to reflect such assignment.

         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 hold  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.

         11.      MISCELLANEOUS.
                  -------------

                  a. A person or entity is deemed to be a holder of  Registrable
Securities  whenever  such  person or entity  owns of  record  such  Registrable
Securities.  If  the  Company  receives  conflicting  instructions,  notices  or
elections  from  two or more  persons  or  entities  with  respect  to the  same
Registrable  Securities,  the Company shall act upon the basis of  instructions,
notices or elections  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 a copy
is mailed by U.S. certified mail, return receipt requested; (iii) three (3) days
after being sent by U.S. certified mail, return receipt  requested;  or (iv) one
(1) 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:

                                       13
<PAGE>

                  if to the Company:

                           Capita Research Group, Inc.
                           591 Skippack Pike
                           Suite 300
                          Blue Bell, Pennsylvania 19422
                           Telephone:     215-619-7777
                           Facsimile:     215-619-0775
                           Attention:     Chief Financial Officer

                  With a copy to:

                           Torys
                           237 Park Avenue
                            New York, New York 10017
                           Facsimile:     212-682-0200
                           Attention:     Andrew J. Beck, Esq.

                  if to a Buyer,  to its  address  and  facsimile  number on the
                  Schedule  of  Buyers  attached  hereto,  with  copies  to such
                  Buyer's counsel as set forth on the Schedule of Buyers.

         Each party shall  provide five (5) days prior notice to the other party
of any change in address, phone number or facsimile number.

                  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.

                  d. This  Agreement  shall be  governed by and  interpreted  in
accordance  with  the  laws of the  State  of New  York  without  regard  to the
principles  of conflict of laws.  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.

                  e. This  Agreement,  the Warrants and the Securities  Purchase
Agreement  (including all schedules and exhibits thereto)  constitute the entire
agreement among the parties hereto with respect to the subject matter hereof and
thereof. There are no restrictions,  promises, warranties or undertakings, other
than those set forth or  referred  to herein  and  therein.  The  aforementioned
documents  supersede all prior agreements and  understandings  among the parties
hereto with respect to the subject matter hereof and thereof.

                  f. Subject to the  requirements  of Section 9, 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.

                                       14
<PAGE>

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

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

                                      * * *

                                       15
<PAGE>

                  IN WITNESS  WHEREOF,  the Buyers and the  Company  have caused
this  Registration  Rights  Agreement  to be duly  executed as of the date first
written above.

                                            COMPANY:

                                            CAPITA RESEARCH GROUP, INC.

                                            By:/s/ David B. Hunter
                                            ----------------------
                                                 Name:  David B. Hunter
                                                 Its: President

                                       16
<PAGE>

                                            THE BUYERS:
                                            -----------

                                            /s/ Andrew Gitlin
                                            -----------------
                                            Andrew Gitlin

                                            /s/ John Lepore
                                            ---------------
                                            John Lepore

                                            /s/ Edward Okine
                                            ----------------
                                            Edward Okine

                                            /s/ Philip Platek
                                            -----------------
                                            Philip Platek

                                            /s/ Howard Fischer
                                            ------------------
                                            Howard Fischer

                                            /s/ Michael Hamblett
                                            --------------------
                                            Michael Hamblett

                                       17
<PAGE>

                               SCHEDULE OF BUYERS

Investor Name, Address and          Number of shares of     Number of
     Facsimile Number                   Common Stock        Warrants
     ----------------                   ------------        --------

Andrew Gitlin                             30,000            30,000 (A Warrants)
16 Outlook Drive
Darien, CT 06820                                            30,000 (B Warrants)
(203) 324-8498

John Lepore                               20,000            20,000(A Warrants)
167 Old Hyde Road
Weston, CT 06883
(2030 324-8498)                                             20,000(B Warrants)

Edward Okine                              10,000            10,000(A Warrants)
162 Steephill Road
Weston, CT 06883                                            10,000(B Warrants)

Philip Platek                             20,000            20,000(A Warrants)
10 Old Redding Rd
Weston, CT 06883                                            20,000(B Warrants)

Howard Fischer                            80,000            80,000(A Warrants)
36 Wampus Lake Drive
Armonk, NY 10504                                            80,000(B Warrants)
(203) 324-8498

Michael Hamblett                         100,000           100,000(A Warrants)
5 Mckinnel Court
Branford, CT 06405                                         100,000(B Warrants)
(203) 324-8498

                                       18

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