Document:

ANNEX IV
                                                                              TO
                                                   SECURITIES PURCHASE AGREEMENT

                          REGISTRATION RIGHTS AGREEMENT

      THIS  REGISTRATION  RIGHTS  AGREEMENT,  dated as of January 31, 2005 (this
"Agreement"),  is made by and between CONSPIRACY ENTERTAINMENT HOLDINGS, INC., a
Utah corporation with headquarters located at 612 Santa Monica Boulevard,  Santa
Monica,  CA 90401 (the  "Company"),  and each entity  named on a signature  page
hereto (each, an "Initial  Investor")  (each agreement with an Initial  Investor
being deemed a separate and independent  agreement  between the Company and such
Initial Investor, except that each Initial Investor acknowledges and consents to
the rights granted to each other Initial Investor under such agreement).

                              W I T N E S S E T H:

      WHEREAS,  upon the terms and subject to the  conditions of the  Securities
Purchase  Agreement,  dated as of January 31, 2005, between the Initial Investor
and the Company (the  "Securities  Purchase  Agreement";  capitalized  terms not
otherwise  defined  herein  shall  have  the  meanings  ascribed  to them in the
Securities Purchase Agreement),  the Company has agreed to issue and sell to the
Initial Investors the Debentures and the Warrants; and

      WHEREAS,  the Debentures are convertible  into shares of Common Stock (the
"Conversion Shares";  which term, for purposes of this Agreement,  shall include
shares of Common Stock of the Company issuable in lieu of accrued  interest,  as
contemplated  by the  Debentures)  upon the terms and subject to the  conditions
contained in the Debentures; and

      WHEREAS,  the  Warrant  Shares  may be  issued  upon the  exercise  of the
Warrants; and

      WHEREAS,  to induce the  Initial  Investor  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
"Securities  Act"),  with  respect to the  Registrable  Securities  (as  defined
below);

      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  Initial
Investor hereby agree as follows:

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

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            "Company Counsel" means Sichenzia Ross Friedman Ference LLP, or such
      other  reputable  law firm as may be retained by the Company  from time to
      time.

            "Effective  Date"  means the date the SEC  declares  a  Registration
      Statement  covering  Registrable  Securities  and  otherwise  meeting  the
      conditions contemplated hereby to be effective.

            "Held Shares  Value" means,  for shares of Common Stock  acquired by
      the  Investor  upon a  conversion  of a  Debenture  within the twenty (20)
      Trading  Days  (excluding  any  Trading  Days on which  the on  which  the
      Investor is restricted from making sales of Registrable Securities covered
      by  any  previously  effective   Registration   Statement)  preceding  the
      Restricted  Sale Date,  but not yet sold by the  Investor,  the  principal
      amount of the Debentures converted into such Conversion Shares;  provided,
      however,  that if the  Investor  effected  more  than one such  conversion
      during such twenty (20)  Trading Day period and sold less than all of such
      shares,  the sold  shares  shall be deemed to be  derived  first  from the
      conversions  in the  sequence of such  conversions  (that is, for example,
      until the number of shares  from the first of such  conversions  have been
      sold,  all  shares  shall  be  deemed  to be from  the  first  conversion;
      thereafter, from the second conversion until all such shares are sold).

            "Investor" means the Initial  Investor and any permitted  transferee
      or assignee who agrees to become bound by the provisions of this Agreement
      in  accordance  with  Section  9  hereof  and  who  holds   Debentures  or
      Registrable Securities.

            "Other  Issuable  Shares"  means,(i) the  Additional  Shares and the
      Payment Shares, if any, issued or issuable to the Holder as of the date of
      the filing of the Registration  Statement and any amendment  thereto or as
      of any subsequent date, and (ii) the good faith estimate of the Company of
      the number of other  Additional  Shares and other Payment  Shares,  as the
      case may be, which the Company  anticipates,  as of the date of the filing
      of the Registration  Statement and any amendment thereto or any subsequent
      date,  will be issuable to the Holder  pursuant to the  provisions  of the
      Transaction Agreements.

            "Payment  Shares" means shares of Common Stock issued by the Company
      as provided in Section 2(b) below.

            "Permitted  Suspension  Period"  means up to two periods  during any
      consecutive  12-month  period  during  which  the  Holder's  right to sell
      Registrable Securities under the Registration Statement is suspended, each
      of which  suspension  period  shall  neither (i) be for more than ten (10)
      days nor (ii) begin less than ten (10) business days after the last day of
      the preceding suspension (whether or not such last day was during or after
      a Permitted Suspension Period).

            "Potential  Material  Event"  means  any of the  following:  (i) the
      possession by the Company of material  information not ripe for disclosure
      in a registration  statement,  which shall be evidenced by a determination
      in good faith by the Board of Directors of the Company that  disclosure of
      such information in the registration statement would be detrimental to the
      business and affairs of the Company;  or (ii) any material  engagement  or
      activity by the Company which would,  in the good faith  determination  of
      the Board of Directors of the Company, be adversely affected by disclosure

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<PAGE>

      in a  registration  statement  at such  time,  in  each  case  where  such
      determination  shall be accompanied by a good faith  determination  by the
      Board of Directors of the Company that the registration statement would be
      materially misleading absent the inclusion of such information.

            "Register," "Registered," and "Registration" refer to a registration
      effected by preparing and filing a Registration Statement or Statements in
      compliance  with the  Securities  Act and  pursuant  to Rule 415 under the
      Securities 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 by the SEC.

            "Registrable Securities" means, collectively, the Conversion Shares,
      the Warrant Shares, and the Other Issuable Shares.

            "Registration  Statement"  means  a  registration  statement  of the
      Company under the Securities Act covering  Registrable  Securities on Form
      SB-2, if the Company is then eligible to file using such form,  and if not
      eligible, on Form S-1 or other appropriate form.

            "Required  Effective Date" means,  initially,  the Initial  Required
      Effective  Date or the Increased  Required  Effective Date (as those terms
      are defined below), as the case may be.

            "Restricted  Sale  Date"  means the first  date,  other  than a date
      during a  Permitted  Suspension  Period (as defined  below),  on which the
      Investor is restricted from making sales of Registrable Securities covered
      by any previously effective Registration Statement.

      2. Registration.

            (a) Mandatory Registration.

                  (i) The  Company  shall cause  Company  Counsel to prepare and
            file with the SEC, as soon as practicable after the Closing Date but
            no later  than  thirty  (30) days  after the  effective  date of the
            registration statement, as amended,  originally filed by the Company
            on or about  November  24,  2004 (the  "Required  Filing  Date"),  a
            Registration  Statement  registering  for  resale by the  Investor a
            sufficient  number  of  shares  of  Common  Stock  for  the  Initial
            Investors to sell the Registrable  Securities.  Notwithstanding  the
            requirement to register all  Registrable  Securities,  the Company's
            obligation to register the Registrable Securities shall initially be
            satisfied by the  registration of the Initial Number of Shares to Be
            Registered (as defined  below).  The "Initial Number of Shares to Be
            Registered"  is a number of shares of Common Stock which is at least
            equal  to the  sum of (x)  the  number  of  shares  into  which  the
            Debentures and all dividends thereon through the Maturity Date would
            be convertible at the time of filing of such Registration  Statement
            (assuming  for  such  purposes  that all  such  Debentures  had been
            eligible to be converted,  and had been  converted,  into Conversion
            Shares  in  accordance  with  their  terms,   whether  or  not  such
            eligibility,  accrual of interest or conversion had in fact occurred
            as of such date),  based on the Conversion Price then in effect, (y)
            the number of Warrant Shares  covered by the Warrants  (assuming for
            such  purposes  that  all  the  Warrants  had  been  eligible  to be

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<PAGE>

            exercised and had been  exercised for the issuance of Warrant Shares
            in accordance with their terms,  whether or not such  eligibility or
            exercise had in fact  occurred as of such date),  and (z) the number
            of  Other  Issuable  Shares  as of the  date  of the  filing  of the
            Registration Statement or any amendment thereto (provided,  however,
            that for purposes of this  provision,  the number of Other  Issuable
            Shares shall not be greater than the number of such shares which the
            SEC permits to be included in the Registration Statement). If, after
            the filing of the Registration  Statement and prior to the Effective
            Date,  the  Conversion  Price or the number of shares covered by the
            Warrants  or both is or are to be adjusted or if the number of Other
            Issuable  Shares  increases,  the Company shall file an amendment to
            the  Registration  Statement  reflecting  the  registration  of  the
            adjusted number of shares  reflected in the foregoing  formula based
            on such  adjustments.  Unless  otherwise  specifically  agreed to in
            writing in advance by the Holder,  the  Registration  Statement  (X)
            shall  include  only  (i) the  Registrable  Securities  and (ii) the
            Placement   Agent   Shares   (as   defined   in  the  Joint   Escrow
            Instructions),  and (Y) shall also state that,  in  accordance  with
            Rule 416 and 457 under  the  Securities  Act,  it also  covers  such
            indeterminate  number of  additional  shares of Common  Stock as may
            become issuable to prevent dilution  resulting from stock splits, or
            stock dividends.

                  (ii) The Company and Company Counsel will use their reasonable
            best  efforts to cause such  Registration  Statement  to be declared
            effective on a date (the "Initial Required Effective Date") which is
            no later than the earlier of (Y) five (5) days after oral or written
            notice  by the SEC that it may be  declared  effective  or (Z) sixty
            (60) days after the Required Filing Date.

                  (iii) If at any time (an "Increased  Registered Shares Date"),
            the number of shares of Common Stock  represented by the Registrable
            Securities,   issued  or  to  be  issued  as   contemplated  by  the
            Transaction  Agreements,  exceeds the aggregate  number of shares of
            Common  Stock  then  registered  or  sought  to be  registered  in a
            Registration  Statement  which has not yet been declared  effective,
            the Company shall either

                  (X) amend the  relevant  Registration  Statement  filed by the
                  Company  pursuant to the preceding  provisions of this Section
                  2, if  such  Registration  Statement  has  not  been  declared
                  effective by the SEC at that time,  to register the  Increased
                  Number of Shares to Be  Registered  (as  defined  below).  The
                  "Increased  Number of Shares to Be  Registered" is a number of
                  shares of Common  Stock which is at least equal to (A) the sum
                  of the number of shares  theretofore  issued on  conversion of
                  the  Debentures  (including any interest paid on conversion by
                  the  issuance  of  Conversion  Shares)  and on exercise of the
                  Warrants, plus the Other Issuable Shares issued or issuable as
                  of that date plus (B) the sum of (I) the number of shares into
                  which the  Unconverted  Debentures  and all  interest  thereon
                  through the Maturity Date would be  convertible at the time of
                  filing of such Registration  Statement or amendment  (assuming
                  for  such  purposes  that  all  Debentures,   reduced  by  any
                  previously  converted  Debentures,  had  been  eligible  to be
                  converted,  and had been converted,  into Conversion Shares in
                  accordance with their terms,  whether or not such eligibility,
                  accrual of interest or  conversion  had in fact occurred as of
                  such date),  (II) the number of Warrant  Shares covered by the
                  unexercised  Warrants (assuming for such purposes that all the
                  Warrants, reduced by any exercised Warrants, had been eligible
                  to be  exercised  and had been  exercised  for the issuance of
                  Warrant Shares in accordance with their terms,  whether or not

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<PAGE>

                  such issuance, eligibility or exercise had in fact occurred as
                  of such date),  and (III) the number of Other Issuable  Shares
                  as of  the  date  of  the  filing  of  such  amendment  to the
                  Registration  Statement (provided,  however, that for purposes
                  of this  provision,  the number of Other Issuable Shares shall
                  not be greater  than the number of such  shares  which the SEC
                  permits to be included in the Registration Statement), or

                  (Y) if such Registration Statement has been declared effective
                  by the SEC at  that  time,  file  with  the SEC an  additional
                  Registration    Statement   (an    "Additional    Registration
                  Statement")  to  register  the  number of shares  equal to the
                  excess of the Increased Number of Shares to Be Registered over
                  the  aggregate  number  of  shares  of  Common  Stock  already
                  registered.

The Company and Company Counsel will use their  reasonable best efforts to cause
such  Registration  Statement  to be  declared  effective  on a date  (each,  an
"Increased  Required Effective Date") which is no later than (q) with respect to
a Registration Statement under clause (X) of this subparagraph (ii), the Initial
Required  Effective  Date and (r) with  respect  to an  Additional  Registration
Statement,  the earlier of (I) five (5) days after notice by the SEC that it may
be declared  effective or (II) thirty (30) days after the  Increased  Registered
Shares Date.

            (b) Payments by the Company.

                  (i) If the  Registration  Statement  covering the  Registrable
            Securities is not filed as  contemplated  by this Agreement with the
            SEC by the Required  Filing Date,  the Company will make payments to
            the Initial  Investor in such  amounts and at such times as shall be
            determined pursuant to this Section 2(b).

                  (ii) If the  Registration  Statement  covering the Registrable
            Securities is not effective by the relevant Required  Effective Date
            or if there  is a  Restricted  Sale  Date,  the  Company  will  make
            payments to the Initial  Investor in such  amounts and at such times
            as shall be determined pursuant to this Section 2(b).

                  (iii) The amount  (the  "Periodic  Amount")  to be paid by the
            Company  to the  Initial  Investor  shall be  determined  as of each
            Computation  Date (as defined  below) and such amount shall be equal
            to the Periodic Amount Percentage (as defined below) of the Purchase
            Price for all  Debentures for the period from the date following the
            relevant  Required  Filing Date or the Required  Effective Date or a
            Restricted  Sale  Date,  as the case may be, to the  first  relevant
            Computation  Date (each, a "First  Period"),  and thereafter to each
            subsequent  Computation  Date (each,  a  "Subsequent  Period").  The
            "Periodic  Amount  Percentage"  means  (i) one  percent  (1%) of the
            Purchase  Price for the First  Period,  and (ii) two percent (2%) of
            the Purchase Price for each Subsequent Period  thereafter.  Anything
            in the preceding  provisions of this paragraph (iii) to the contrary
            notwithstanding,  after the  relevant  Effective  Date the  Purchase
            Price  shall be deemed to refer to the sum of the  principal  of the
            Unconverted  Debentures  plus  the  Held  Shares  Value.  By  way of
            illustration  and  not  in  limitation  of  the  foregoing,  if  the

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            Registration  Statement  is filed on or before the  Required  Filing
            Date, but is not declared  effective  until  seventy-five  (75) days
            after the Initial Required  Effective Date, the Periodic Amount will
            aggregate five percent (5%) of the Purchase Price (1% for days 1-30,
            plus 2% for days 31-60, plus 2% for days 61-75).

                  (iv) Each  Periodic  Amount,  if any,  will be  payable by the
            Company,   except  as  provided  in  the  other  provisions  of  the
            immediately   succeeding   subparagraph   (v),   in  cash  or  other
            immediately available funds to the Investor (1) on the day after the
            Required  Filing Date,  the Required  Effective Date or a Restricted
            Sale Date,  as the case may be,  and (2) on the  earlier of (A) each
            thirtieth day thereafter,  (B) the third business day after the date
            the Registration Statement is filed or is declared effective, or (C)
            the third  business  day after the  Registration  Statement  has its
            restrictions removed after the relevant Effective Date, in each case
            without requiring demand therefor by the Investor.

                  (v)   Notwithstanding   the  provisions  of  the   immediately
            preceding   subparagraph  (iv),  at  the  option  of  the  Investor,
            exercisable in its sole and absolute discretion by written notice to
            the Company at any time before the Periodic Amount is paid, all or a
            portion of the  Periodic  Amount  shall be paid by the  issuance  of
            additional shares of Common Stock to the Investor ("Payment Shares")
            in an amount equal to the Periodic Amount being paid thereby divided
            by the then applicable Conversion Price; provided,  further that the
            delivery  date for the Payment  Shares  shall be three (3)  business
            days after the date the Investor  gives the notice  contemplated  by
            this subparagraph.

                  (vi) The parties  acknowledge  that the  damages  which may be
            incurred by the Investor if the Registration  Statement is not filed
            by the Required  Filing Date or the  Registration  Statement has not
            been declared effective by a Required  Effective Date,  including if
            the  right  to  sell  Registrable   Securities  under  a  previously
            effective  Registration  Statement is suspended or the shares of the
            Company's stock are not listed on the Principal Trading Market,  may
            be  difficult  to  ascertain.  The  parties  agree that the  amounts
            payable  pursuant to the  foregoing  provisions of this Section 2(b)
            represent a reasonable  estimate on the part of the  parties,  as of
            the date of this Agreement, of the amount of such damages.

                  (vii)  Notwithstanding  the foregoing,  the amounts payable by
            the Company  pursuant to this provision  shall not be payable to the
            extent any delay in the filing or  effectiveness of the Registration
            Statement occurs because of an act of, or a failure to act or to act
            timely by the Initial Investor or its counsel.

                  (viii)  "Computation  Date"  means  (A) the date  which is the
            earlier of (1) thirty (30) days after the Required  Filing Date, the
            Required  Effective Date or a Restricted  Sale Date, as the case may
            be, or (2) the date after the  Required  Filing  Date,  the Required
            Effective  Date or  Restricted  Sale Date on which the  Registration
            Statement is filed (with respect to payments due as  contemplated by
            Section  2(b)(i)  hereof)  or  is  declared  effective  or  has  its
            restrictions removed or the shares of the Company's stock are listed
            on the  Principal  Trading  Market (with  respect to payments due as
            contemplated by Section  2(b)(ii)  hereof),  as the case may be, and
            (B) each date which is the earlier of (1) thirty (30) days after the
            previous  Computation  Date  or (2)  the  date  after  the  previous
            Computation Date on which the Registration  Statement is filed (with
            respect to payments due as  contemplated  by Section 2(b)(i) hereof)

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            or is  declared  effective  or has its  restrictions  removed or the
            shares of the Company's  stock are listed on the  Principal  Trading
            Market  (with  respect to payments  due as  contemplated  by Section
            2(b)(ii) hereof), as the case may be.

                  (ix) Anything in the preceding provisions of this Section 2(b)
            to the contrary  notwithstanding,  if, but only if, the Registration
            Statement is declared  effective  within thirty (30) days  following
            the Initial Required Effective Date,

                  (A) the provisions of Section 2(b)(i) shall not apply; and

                  (B) the provisions of Section  2(b)(ii) shall not apply to the
                  fact that the  Registration  Statement was initially  declared
                  effective after the Initial Required Effective Date;

and the Company will not have any  obligation to pay any Periodic  Amount to the
Investor with respect thereto; provided, however, that the provisions of Section
2(b)(ii) shall continue to apply to all other events described therein.

            (c) SUBSEQUENT  REGISTRATIONS.  If, for any reason, the SEC does not
      permit the  registration  of any  specific  component  of the  Registrable
      Securities,  such excluded  Registrable  Securities shall be registered by
      the Company at the earliest possible time thereafter.

      3. OBLIGATIONS OF THE COMPANY.  In connection with the registration of the
Registrable Securities, the Company shall do each of the following:

            (a) Prepare  promptly,  and file with the SEC by the Required Filing
      Date a Registration  Statement with respect to not less than the number of
      Registrable  Securities provided in Section 2(a) above, and thereafter use
      its reasonable best efforts to cause such Registration  Statement relating
      to Registrable  Securities to become  effective by the Required  Effective
      Date and keep the Registration Statement effective at all times other than
      during Permitted  Suspension  Periods during the period (the "Registration
      Period")  continuing  until the earlier of (i) the date when the Investors
      may sell all Registrable Securities under Rule 144 without volume or other
      restrictions or limits (the "Unrestricted Sale Date") or (ii) the date the
      Investors  no  longer  own  any  of  the  Registrable  Securities,   which
      Registration  Statement  (including any amendments or supplements  thereto
      and prospectuses contained therein) shall not contain any untrue statement
      of a material  fact or omit to state a material fact required to be stated
      therein  or  necessary  to make the  statements  therein,  in light of the
      circumstances in which they were made, not misleading;

            (b)  Prepare  and  file  with  the SEC  such  amendments  (including
      post-effective  amendments) and supplements to the Registration  Statement
      and the prospectus used in connection with the  Registration  Statement as
      may be necessary to keep the Registration Statement effective at all times
      during the  Registration  Period,  and,  during the  Registration  Period,
      comply  with the  provisions  of the  Securities  Act with  respect to the
      disposition of all  Registrable  Securities of the Company  covered by the
      Registration  Statement  until  such  time  as  all  of  such  Registrable
      Securities have been disposed of in accordance  with the intended  methods

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      of  disposition  by the  seller  or  sellers  thereof  as set forth in the
      Registration Statement;

            (c)  Permit a  single  firm of  counsel  designated  by the  Initial
      Investors  (which,  until further notice,  shall be deemed to be Krieger &
      Prager LLP,  Attn:  Samuel M. Krieger,  Esq.,  which firm has requested to
      receive such  notification;  each, an "Investor's  Counsel") to review the
      Registration  Statement  and all  amendments  and  supplements  thereto  a
      reasonable  period  of time (but not less than  three (3)  business  days)
      prior to their filing with the SEC, and not file any document in a form to
      which such counsel reasonably objects.

            (d) Notify each Investor and the Investor's Counsel and any managing
      underwriters  immediately (and, in the case of (i)(A) below, not less than
      three (3)  business  days prior to such  filing) and (if  requested by any
      such person) confirm such notice in writing no later than one (1) business
      day  following  the  day  (i)(A)  when  a  Prospectus  or  any  Prospectus
      supplement or  post-effective  amendment to the Registration  Statement is
      proposed to be filed;  (B) whenever  the SEC notifies the Company  whether
      there will be a "review" of such Registration Statement;  (C) whenever the
      Company  receives  (or a  representative  of the  Company  receives on its
      behalf)  any  oral  or  written  comments  from  the SEC in  respect  of a
      Registration Statement (copies or, in the case of oral comments, summaries
      of such  comments  shall  be  promptly  furnished  by the  Company  to the
      Investors);  and (D) with  respect to the  Registration  Statement  or any
      post-effective  amendment, when the same has become effective; (ii) of any
      request by the SEC or any other  Federal or state  governmental  authority
      for amendments or supplements to the Registration  Statement or Prospectus
      or for  additional  information;  (iii) of the  issuance by the SEC of any
      stop order  suspending the  effectiveness  of the  Registration  Statement
      covering any or all of the Registrable Securities or the initiation of any
      proceedings   for  that   purpose;   (iv)  if  at  any  time  any  of  the
      representations  or warranties  of the Company  contained in any agreement
      (including any underwriting  agreement)  contemplated  hereby ceases to be
      true and  correct  in all  material  respects;  (v) of the  receipt by the
      Company  of  any  notification  with  respect  to  the  suspension  of the
      qualification  or exemption from  qualification  of any of the Registrable
      Securities for sale in any jurisdiction,  or the initiation or threatening
      of any  proceeding  for such  purpose;  and (vi) of the  occurrence of any
      event that to the best  knowledge of the Company makes any statement  made
      in the Registration  Statement or Prospectus or any document  incorporated
      or deemed to be incorporated  therein by reference  untrue in any material
      respect or that  requires  any  revisions to the  Registration  Statement,
      Prospectus  or other  documents so that,  in the case of the  Registration
      Statement or the  Prospectus,  as the case may be, it will not contain any
      untrue  statement of a material  fact or omit to state any  material  fact
      required to be stated therein or necessary to make the statements therein,
      in light of the circumstances  under which they were made, not misleading.
      In addition,  the Company shall  communicate  with the Investor's  Counsel
      with regard to its proposed written responses to the comments contemplated
      in clause (C) of this Section 3(d),  so that,  to the extent  practicable,
      the Investors shall have the opportunity to comment thereon;

            (e) Furnish to each Investor and to Investor's  Counsel (i) promptly
      after the same is prepared and publicly  distributed,  filed with the SEC,
      or received by the Company,  one (1) copy of the  Registration  Statement,
      each  preliminary  prospectus  and  prospectus,   and  each  amendment  or

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      supplement  thereto,  and (ii) such number of copies of a prospectus,  and
      all amendments and supplements  thereto and such other documents,  as such
      Investor may reasonably  request in order to facilitate the disposition of
      the Registrable Securities owned by such Investor;

            (f) As promptly as practicable after becoming aware thereof,  notify
      each  Investor  of the  happening  of any event of which the  Company  has
      knowledge,   as  a  result  of  which  the  prospectus   included  in  the
      Registration Statement, as then in effect, includes an untrue statement of
      a material  fact or omits to state a material  fact  required to be stated
      therein  or  necessary  to make the  statements  therein,  in light of the
      circumstances under which they were made, not misleading, and use its best
      efforts  promptly to prepare a supplement or amendment to the Registration
      Statement or other appropriate  filing with the SEC to correct such untrue
      statement or omission,  and deliver a number of copies of such  supplement
      or amendment to each Investor as such Investor may reasonably request;

            (g) As promptly as practicable after becoming aware thereof,  notify
      each  Investor  who holds  Registrable  Securities  being sold (or, in the
      event of an  underwritten  offering,  the  managing  underwriters)  of the
      issuance  by the  SEC of a  Notice  of  Effectiveness  or  any  notice  of
      effectiveness or any stop order or other  suspension of the  effectiveness
      of the Registration Statement at the earliest possible time;

            (h) Comply  with  Regulation  FD or any similar  rule or  regulation
      regarding the dissemination of information  regarding the Company,  and in
      furtherance of the foregoing,  and not in limitation thereof, not disclose
      to the Investor any non-public material information regarding the Company;

            (i)  Notwithstanding  the foregoing,  if at any time or from time to
      time after the date of effectiveness of the  Registration  Statement,  the
      Company  notifies the Investors in writing that the  effectiveness  of the
      Registration  Statement  is  suspended  for any  reason,  whether due to a
      Potential  Material Event or otherwise,  the Investors  shall not offer or
      sell any  Registrable  Securities,  or  engage  in any  other  transaction
      involving or relating to the Registrable Securities,  from the time of the
      giving of such notice until such Investor receives written notice from the
      Company that such the effectiveness of the Registration Statement has been
      restored,  whether because the Potential Material Event has been disclosed
      to the public or it no longer  constitutes a Potential  Material  Event or
      otherwise;  provided,  however,  that the  Company  may not so suspend the
      right to such  holders of  Registrable  Securities  during the periods the
      Registration  Statement  is required  to be in effect  other than during a
      Permitted Suspension Period (and the applicable provisions of Section 2(b)
      shall  apply with  respect  to any such  suspension  other  than  during a
      Permitted Suspension Period);

            (j)  Use  its   reasonable   efforts  to  secure  and  maintain  the
      designation of all the Registrable  Securities covered by the Registration
      Statement  on the  Principal  Trading  Market  and  the  quotation  of the
      Registrable Securities on the Principal Trading Market;

            (k) Provide a transfer agent ("Transfer Agent") and registrar, which
      may be a single entity, for the Registrable  Securities not later than the
      initial Effective Date;

                                        9
<PAGE>

            (l) Cooperate  with the Investors  who hold  Registrable  Securities
      being  offered  to  facilitate  the timely  preparation  and  delivery  of
      certificates for the Registrable  Securities to be offered pursuant to the
      Registration  Statement and enable such  certificates  for the Registrable
      Securities to be in such  denominations  or amounts as the case may be, as
      the Investors may reasonably  request,  and, within five (5) business days
      after a Registration  Statement which includes  Registrable  Securities is
      ordered  effective by the SEC, the Company shall deliver,  and shall cause
      legal counsel  selected by the Company to deliver,  to the Transfer  Agent
      for  the  Registrable  Securities  (with  copies  to the  Investors  whose
      Registrable  Securities  are included in such  Registration  Statement) an
      appropriate  instruction and opinion of such counsel, which shall include,
      without limitation, directions to the Transfer Agent to issue certificates
      of   Registrable   Securities(including   certificates   for   Registrable
      Securities  to  be  issued  after  the  Effective  Date  and   replacement
      certificates for Registrable Securities previously issued) without legends
      or other restrictions, subject to compliance with applicable law and other
      rules and regulations,  including, without limitation, prospectus delivery
      requirements; and

            (m) Take all  other  reasonable  administrative  steps  and  actions
      (including the participation of Company counsel) necessary to expedite and
      facilitate  disposition  by the  Investor  of the  Registrable  Securities
      pursuant  to the  Registration  Statement;  provided,  however,  that  the
      foregoing  does not  require  that the Company  take any steps  whatsoever
      regarding  the  identification  or  selection  of a  broker  to  sell  the
      Registrable  Securities,  the  identification of buyers of the Registrable
      Securities,  or the  negotiation  of the  sale  terms  of the  Registrable
      Securities.

      4.  OBLIGATIONS OF THE INVESTORS.  In connection with the  registration of
the Registrable Securities, the Investors shall have the following obligations:

            (a) 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  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; and

            (b) Each Investor  agrees that,  upon receipt of any notice from the
      Company of the  happening  of any event of the kind  described  in Section
      3(f),  (g)  or (i)  above,  such  Investor  will  immediately  discontinue
      disposition  of  Registrable   Securities  pursuant  to  the  Registration
      Statement  covering  such  Registrable  Securities  until such  Investor's
      receipt  of  the  copies  of  the   supplemented  or  amended   prospectus
      contemplated  by Section  3(f),  (g) or (i),  and,  if so  directed by the
      Company, such Investor shall deliver to the Company (at the expense of the
      Company)  or  destroy  (and  deliver  to  the  Company  a  certificate  of
      destruction) all copies in such Investor's  possession,  of the prospectus
      covering  such  Registrable  Securities  current at the time of receipt of
      such notice.

      5.  EXPENSES  OF  REGISTRATION.   All  reasonable   expenses  (other  than
underwriting  discounts and commissions of the Investor)  incurred in connection
with  registrations,  filings  or  qualifications  pursuant  to  Section  3, but
including,  without limitation,  all registration,  listing,  and qualifications
fees,  printers and accounting  fees, the fees and  disbursements of counsel for
the  Company  shall be borne by the  Company.  In  addition,  a fee for a single

                                       10
<PAGE>

counsel for the Investors (as a group and not individually)  equal to $5,000 for
the review of the initial Registration  Statement (and pre-effective  amendments
thereto)  and  $2,000  for the  review  of each  post-effective  amendment  to a
Registration Statement shall be borne by the Company.

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

            (a) To the extent  permitted by law, the Company will  indemnify and
      hold  harmless each Investor who holds such  Registrable  Securities,  the
      directors,  if any,  of  such  Investor,  the  officers,  if any,  of such
      Investor,  and each Lender Control Person (each, an "Indemnified  Party"),
      against any losses,  claims,  damages,  liabilities or expenses  (joint or
      several) incurred (collectively, "Claims") to which any of them may become
      subject under the Securities Act, the Securities  Exchange Act of 1934, as
      amended  (the  "Exchange  Act") or  otherwise,  insofar as such Claims (or
      actions  or  proceedings,  whether  commenced  or  threatened,  in respect
      thereof)  arise out of or are based upon any of the following  statements,
      omissions  or   violations   in  the   Registration   Statement,   or  any
      post-effective  amendment thereof, or any prospectus included therein: (i)
      any  untrue  statement  or alleged  untrue  statement  of a material  fact
      contained in the Registration  Statement or any  post-effective  amendment
      thereof or the  omission or alleged  omission to state  therein a material
      fact  required to be stated  therein or necessary  to make the  statements
      therein  not  misleading,  (ii) any untrue  statement  or  alleged  untrue
      statement of a material fact 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 Securities Act, the Exchange Act, any state securities law or any rule
      or  regulation  under the  Securities  Act,  the Exchange Act or any state
      securities  law (the matters in the  foregoing  clauses (i) through  (iii)
      being, collectively referred to as "Violations"). Subject to clause (b) of
      this Section 6, the Company  shall  reimburse the  Investors,  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) shall not (I) apply to any 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 or on behalf of such
      Indemnified  Party expressly for use in connection with the preparation of
      the  Registration  Statement or any such  amendment  thereof or supplement
      thereto,  if such  prospectus  was timely  made  available  by the Company
      pursuant to Section  3(b)  hereof;  (II) be  available  to the extent such
      Claim is based on a failure  of the  Investor  to  deliver  or cause to be
      delivered the prospectus made available by the Company or the amendment or
      supplement  thereto made  available by the Company;  (III) be available to
      the extent  such Claim is based on the  delivery  of a  prospectus  by the
      Investor after  receiving  notice from the Company under Section 3(f), (g)
      or (i) hereof  (other than a notice  regarding  the  effectiveness  of the
      Registration  Statement or any amendment or supplement  thereto),  or (IV)
      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 or delayed. The Investor will

                                       11
<PAGE>

      indemnify  the Company and its officers,  directors  and agents (each,  an
      "Indemnified  Party")  against  any claims  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 or on behalf of such  Investor,
      expressly for use in connection with the  preparation of the  Registration
      Statement  or  the  amendment  or  supplement  thereto,  subject  to  such
      limitations  and  conditions  as are  applicable  to  the  indemnification
      provided by the Company to this Section 6; provided,  however, that except
      where the  Investor has  committed  fraud (other than a fraud by reason of
      the information included or omitted from the Registration  Statement as to
      which the Company has not given  notice as  contemplated  under  Section 3
      hereof) or intentional  misconduct,  such  indemnification by the Investor
      shall be limited in amount to the net amount of proceeds  received by such
      seller from the sale of such Registrable Securities.  Such indemnity shall
      remain in full force and effect regardless of any investigation made by or
      on behalf of the  Indemnified  Party and shall survive the transfer of the
      Registrable  Securities by the Investors  pursuant to Section 9; provided,
      however, that the Investor shall not obligated to make any indemnification
      payment to the  Company  under this  Section 6 unless and until  there has
      been a final adjudication of liability on the part of the Investor.

            (b)  Promptly  after  receipt  by an  Indemnified  Party  under this
      Section 6 of notice  of the  commencement  of any  action  (including  any
      governmental  action), such Indemnified Party shall, if a Claim in respect
      thereof is to be made against any indemnifying party under this Section 6,
      deliver to the  indemnifying  party a written  notice of the  commencement
      thereof and the indemnifying party shall have the right to participate in,
      and, to the extent the  indemnifying  party so desires,  jointly  with any
      other  indemnifying  party  similarly  noticed,  to assume  control of the
      defense thereof with counsel  mutually  satisfactory  to the  indemnifying
      party  and the  Indemnified  Party,  as the case may be.  In case any such
      action is brought  against any  Indemnified  Party,  and it  notifies  the
      indemnifying  party of the commencement  thereof,  the indemnifying  party
      will be entitled to  participate  in, and, to the extent that it may wish,
      jointly with any other indemnifying party similarly  notified,  assume the
      defense thereof,  subject to the provisions herein stated and after notice
      from the indemnifying  party to such Indemnified  Party of its election so
      to assume the defense thereof,  the indemnifying  party will not be liable
      to such  Indemnified  Party  under  this  Section 6 for any legal or other
      reasonable   out-of-pocket   expenses   subsequently   incurred   by  such
      Indemnified  Party in  connection  with the  defense  thereof  other  than
      reasonable costs of investigation, unless the indemnifying party shall not
      pursue the action to its final  conclusion.  The  Indemnified  Party shall
      have the  right to  employ  separate  counsel  in any such  action  and to
      participate  in  the  defense   thereof,   but  the  fees  and  reasonable
      out-of-pocket  expenses of such counsel shall not be at the expense of the
      indemnifying  party if the  indemnifying  party has assumed the defense of
      the action with counsel  reasonably  satisfactory to the Indemnified Party
      provided such counsel is of the opinion that all defenses available to the
      Indemnified Party can be maintained without  prejudicing the rights of the
      indemnifying   party.  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  Party under this Section 6, except to the extent that the
      indemnifying party is prejudiced in its ability to defend such action. 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 such expense, loss, damage or liability is incurred and is due
      and payable.

                                       12
<PAGE>

      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 (a) 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; (b) no  seller of  Registrable  Securities  guilty of
fraudulent  misrepresentation  (within  the  meaning  of  Section  11(f)  of the
Securities Act) shall be entitled to contribution from any seller of Registrable
Securities  who was not  guilty of such  fraudulent  misrepresentation;  and (c)
except where the seller has committed fraud (other than a fraud by reason of the
information included or omitted from the Registration  Statement as to which the
Company  has not  given  notice as  contemplated  under  Section  3  hereof)  or
intentional  misconduct,  contribution  by any seller of Registrable  Securities
shall be limited in amount to the net amount of proceeds received by such seller
from the sale of such Registrable Securities.

      8. REPORTS  UNDER  SECURITIES  ACT AND EXCHANGE ACT. With a view to making
available to Investor the benefits of Rule 144 promulgated  under the Securities
Act or any  other  similar  rule or  regulation  of the SEC that may at any time
permit  Investor  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  Securities  Act  and the
      Exchange Act; and

            (c) until the  Unrestricted  Sale Date,  furnish to the  Investor so
      long as the 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  Securities Act and the Exchange
      Act, (ii) if not  available on the SEC's EDGAR system,  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 Investor to sell such securities
      pursuant to Rule 144 without Registration; and

            (d) at the request of any Investor holding Registrable Securities (a
      "Holder"),  give its Transfer Agent instructions  (supported by an opinion
      of Company counsel, if required or requested by the Transfer Agent) to the
      effect that, upon the Transfer Agent's receipt from such Holder of

                  (i) a certificate  (a "Rule 144  Certificate")  certifying (A)
            that the Holder's  holding period (as determined in accordance  with
            the provisions of Rule 144) for the shares of Registrable Securities
            which the Holder proposes to sell (the  "Securities  Being Sold") is
            not less than (1) year and (B) as to such  other  matters  as may be
            appropriate in accordance  with Rule 144 under the  Securities  Act,
            and

                                       13
<PAGE>

                  (ii) an opinion  of counsel  acceptable  to the  Company  (for
            which  purposes  it is agreed that the  initial  Investor's  Counsel
            shall be deemed  acceptable if not given by Company  Counsel)  that,
            based on the Rule 144 Certificate, Securities Being Sold may be sold
            pursuant to the  provisions  of Rule 144,  even in the absence of an
            effective Registration Statement,

the Transfer Agent is to effect the transfer of the Securities Being Sold and
issue to the buyer(s) or transferee(s) thereof one or more stock certificates
representing the transferred Securities Being Sold without any restrictive
legend and without recording any restrictions on the transferability of such
shares on the Transfer Agent's books and records (except to the extent any such
legend or restriction results from facts other than the identity of the Holder,
as the seller or transferor thereof, or the status, including any relevant
legends or restrictions, of the shares of the Securities Being Sold while held
by the Holder). If the Transfer Agent reasonably requires any additional
documentation at the time of the transfer, the Company shall deliver or cause to
be delivered all such reasonable additional documentation as may be necessary to
effectuate the issuance of an unlegended certificate.

      9. ASSIGNMENT OF THE REGISTRATION  RIGHTS.  The rights to have the Company
register   Registrable   Securities   pursuant  to  this   Agreement   shall  be
automatically  assigned by the  Investor to any  transferee  of the  Registrable
Securities or other Securities (such transfer or assignment being subject to the
provisions of Section 4(a) of the  Securities  Purchase  Agreement)  only if the
Company  is,  within a  reasonable  time  after  such  transfer  or  assignment,
furnished with written notice of (a) the name and address of such  transferee or
assignee and (b) the securities with respect to which such  registration  rights
are being transferred or assigned.

      10. NO INCONSISTENT  AGREEMENTS.  Except as and to the extent specifically
set forth in  Schedule 10  attached  hereto,  neither the Company nor any of its
subsidiaries  has, as of the date  hereof,  nor shall the Company nor any of its
subsidiaries,  on or after the date of this Agreement, enter into, any agreement
with respect to its securities that is  inconsistent  with the rights granted to
the Holders in this Agreement or otherwise conflicts with the provisions hereof.
Except as and to the  extent  specifically  set forth in  Schedule  10  attached
hereto,  neither the Company nor any of its subsidiaries has previously  entered
into any agreement  granting any registration  rights with respect to any of its
securities to any Person.  Without  limiting the  generality  of the  foregoing,
without the written consent of the Holders of a majority of the then outstanding
Registrable  Securities,  the Company shall not grant to any person the right to
request  the  Company  to  register  any  securities  of the  Company  under the
Securities  Act unless the rights so granted are subject in all  respects to the
prior rights in full of the Holders set forth  herein,  and are not otherwise in
conflict or inconsistent with the provisions of this Agreement.

      11. AMENDMENT OF REGISTRATION  RIGHTS. Any provision 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 an eighty (80%) percent
interest of the  Registrable  Securities  (as calculated by the principal of the
Unconverted  Debentures  then held by the  Investors).  Any  amendment or waiver
effected in accordance  with this Section 11 shall be binding upon each Investor
and the Company.

                                       14
<PAGE>

      12. 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,  notice or election  received from the  registered  owner of
      such Registrable Securities.

            (b) Notices  required or  permitted to be given  hereunder  shall be
      given in the manner contemplated by the Securities Purchase Agreement, (i)
      if to the Company or to the Initial Investor,  to their respective address
      contemplated  by the  Securities  Purchase  Agreement,  and (ii) if to any
      other  Investor,  at such address as such Investor  shall have provided in
      writing  to the  Company,  or at such  other  address  as each such  party
      furnishes by notice given in accordance with this Section 12(b).

            (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) (i)  This  Agreement  shall  be  governed  by and  construed  in
            accordance  with the laws of the State of New York for  contracts to
            be wholly  performed in such state and without  giving effect to the
            principles  thereof  regarding  the  conflict  of laws.  Each of the
            parties consents to the exclusive jurisdiction of the federal courts
            whose districts  encompass any part of the County of New York or the
            state  courts of the State of New York  sitting in the County of New
            York in connection with any dispute arising under this Agreement and
            hereby  waives,   to  the  maximum  extent  permitted  by  law,  any
            objection,  including any objection based on forum non coveniens, to
            the bringing of any such proceeding in such  jurisdictions or to any
            claim that such venue of the suit, action or proceeding is improper.
            To the extent  determined by such court, the Company shall reimburse
            the  Investor  for  any  reasonable  legal  fees  and  disbursements
            incurred by the Investor in  enforcement  of or protection of any of
            its rights  under this  Agreement.  Nothing  in this  Section  shall
            affect  or limit  any right to serve  process  in any  other  manner
            permitted by law.

                  (ii) The Company and the Investor  acknowledge  and agree that
            irreparable  damage  would  occur  in  the  event  that  any  of the
            provisions of this Agreement  were not performed in accordance  with
            their specific terms or were otherwise  breached.  It is accordingly
            agreed  that the  parties  shall be  entitled  to an  injunction  or
            injunctions  to prevent or cure  breaches of the  provisions of this
            Agreement  and to  enforce  specifically  the terms  and  provisions
            hereof,  this being in addition to any other  remedy to which any of
            them may be entitled by law or equity.

            (e) The Company and the Investor hereby waive a trial by jury in any
      action, proceeding or counterclaim brought by either of the parties hereto
      against the other in respect of any matter arising out of or in connection
      with this Agreement or any of the other Transaction Agreements.

                                       15
<PAGE>

            (f)  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 or the validity or enforceability of this Agreement in any other
      jurisdiction.

            (g) Subject to the requirements of Section 9 hereof,  this Agreement
      shall  inure to the  benefit of and be  binding  upon the  successors  and
      assigns of each of the parties hereto.

            (h) All pronouns and any variations  thereof refer to the masculine,
      feminine or neuter, singular or plural, as the context may require.

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

            (j) This Agreement may be executed in one or more 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  telephone   line   facsimile
      transmission  of a copy of this  Agreement  bearing the  signature  of the
      party so delivering this Agreement.

            (k) The  Company  acknowledges  that any  failure by the  Company to
      perform its  obligations  under Section 3(a) hereof,  or any delay in such
      performance could result in loss to the Investors,  and the Company agrees
      that, in addition to any other liability the Company may have by reason of
      such failure or delay,  the Company shall be liable for all direct damages
      caused by any such  failure  or delay,  unless  the same is the  result of
      force majeure. Neither party shall be liable for consequential damages.

            (l) This Agreement  (including to the extent relevant the provisions
      of other  Transaction  Agreements)  constitutes the entire agreement among
      the  parties  hereto  with  respect  to  the  subject  matter  hereof  and
      supersedes  all prior  agreements  and  understandings  among the  parties
      hereto  with  respect  to  the  subject  matter   hereof.   There  are  no
      restrictions,  promises, warranties or undertakings,  other than those set
      forth or referred to herein.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       16
<PAGE>

      IN WITNESS  WHEREOF,  the parties  have caused this  Agreement  to be duly
executed by their  respective  officers  thereunto duly authorized as of the day
and year first above written.

                            COMPANY:
                            CONSPIRACY ENTERTAINMENT HOLDINGS, INC.

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

                            INITIAL INVESTOR:

                            ------------------------------------
                             [Print Name of Initial Investor]

                            By:
                            -------------------------------------
                            Name:
                            -------------------------------------
                            Title:
                            -------------------------------------ANNEX II
                                                                              TO
                                                   SECURITIES PURCHASE AGREEMENT

                            JOINT ESCROW INSTRUCTIONS

Dated as of the date of the
Securities Purchase Agreement to
Which These Joint Escrow
Instructions Are Attached

Krieger & Prager LLP
39 Broadway, Suite 1440
New York, New York 10006

Attention:        Samuel M. Krieger, Esq.

Dear Mr. Krieger:

      These Joint Escrow  Instructions  are attached as Annex II to that certain
Securities  Purchase  Agreement of even date herewith (the "Agreement")  between
Conspiracy  Entertainment Holdings, Inc., a Utah corporation (the "Company") and
the one or more Lenders named therein (each, a "Lender"). Capitalized terms used
herein and not  otherwise  defined  herein  shall have the  respective  meanings
provided in the Agreement.

      As  escrow  agent  for  both the  Company  and  each of the  Lenders,  you
(hereafter,  the "Escrow Agent") are hereby  authorized and directed to hold the
documents and funds  (together with any interest  thereon,  the "Escrow  Funds")
delivered  to the  Escrow  Agent  pursuant  to the  terms  of the  Agreement  in
accordance with the following instructions:

      1. (a) The Escrow  Agent  shall,  as promptly as  practicable,  notify the
      Company  orally or in writing of  receipt  of the  Purchase  Price for the
      Purchased  Securities  from or on behalf of each  Lender  and  notify  the
      Lender orally or in writing of receipt of the Certificates. As promptly as
      practicable upon the Escrow Agent's receipt of the relevant Purchase Price
      from the Lenders and, from the Company,  the  Certificates  and opinion of
      counsel  of the  Company  (or,  with  respect  to any one or more of them,
      receipt of notice,  whether oral or in written form, from the Company or a
      Lender that the respective  conditions  precedent to the purchase and sale
      have been satisfied or waived)  (collectively,  the "Release Conditions"),
      the Escrow Agent shall release,  as contemplated below and after reduction
      by the amounts  referred to below in this Section 1, the  relevant  Escrow
      Funds to or upon the order of the Company,  and shall release the relevant
      Certificates to the Lender.

            (b) The  term  "Placement  Agent's  Compensation"  means  (i) a cash
      amount (the  "Placement  Agent's Fee") equal to five and one-half  percent

<PAGE>

      (5.5%) of the Total  Purchase  Price,  (ii) 300,000 shares of Common Stock
      issued to the Placement Agent or its designees  (collectively,  "Placement
      Agent Shares"), with piggy-back rights, and (iii) if any Warrant initially
      issued to a Lender is  exercised  by a Holder in whole or in part,  a cash
      fee equal to ten percent (10%) of the  corresponding  cash Exercise  Price
      paid for the Warrant Shares subject to such exercise,  which shall be paid
      within five (5) Trading Days after the Company's  receipt of such Exercise
      Price.  The Placement  Agent Shares shall be delivered to the Escrow Agent
      within five (5) Trading Days after the Closing Date.

            (c) The term "Escrow Agent Fee" means $10,000,  which represents the
      legal and escrow fees payable to the Escrow Agent in  connection  with the
      preparation of the Transaction Agreements and acting as escrow agent under
      these Joint  Escrow  Instructions.  The term does not include the Investor
      Counsel  Registration  Statement  Review  Fee (as  defined  below)  or any
      amounts  payable to the Escrow Agent  pursuant to any other  provisions of
      the Transaction  Agreements or pursuant to the terms of these Joint Escrow
      Instructions other than this Section 1.

            (d) Subject to the other provisions  hereof, on the Closing Date and
      on the date when certain  occurrences  described  below occur,  the Escrow
      Agent shall release Escrow  Property and distribute it in accordance  with
      the following instructions:

            (I)   On the Closing Date, the Escrow Agent shall:

                  (A) release the Certificates to the respective Lenders;

                  (B) release,  to or upon the order of the Placement Agent, the
                  Placement Agent's Fee;

                  (C)  release,  to or upon the order of the Escrow  Agent,  the
                  Escrow Agent Fee;

                  (D) release,  to or upon the order of Sichenzia  Ross Friedman
                  Ference LLP  ("Company  Counsel"),  an amount equal to $10,000
                  (of which,  $5,000 is on account of Company  Counsel's fees in
                  connection with the closing of the  transactions  contemplated
                  by the Transaction  Agreements and $5,000 is on account of the
                  Company  Counsel's fees in connection with the preparation and
                  filing of an Information  Statement  reflecting the Authorized
                  Share Amendment referred to in Annex VI);

                  (E) release,  to Krieger & Prager,  LLP, to be held in reserve
                  pending  release as provided  below,  an amount (the "Reserved
                  Escrow Funds") equal to the aggregate of the following sums:

                        (x) an amount  equal to $45,000  (the  "Company  Counsel
                        Registration  Fee  Reserve"),  to be  applied to the fee
                        (the "Company Counsel  Registration Fee") payable by the
                        Company to Company Counsel,  to be released as described
                        below; and

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<PAGE>

                        (y)  an  amount  (the  "Investor  Counsel   Registration
                        Statement Review Fee") equal to $5,000, to be applied to
                        satisfaction  of  the  fees  payable   pursuant  to  the
                        Company's   obligations   under   Section   5   of   the
                        Registration Rights Agreement; and

                  (F)  release,  to a trust  or  escrow  account  maintained  by
                  Company Counsel, as designated by Company Counsel,  the amount
                  of $444,250,  to be released as  contemplated  by the relevant
                  note to the  Schedule of Use of Proceeds  attached as Annex IX
                  to the  Agreement;  provided,  however,  that (1) prior to the
                  disbursement  of the funds  referred  to in this  subparagraph
                  (F),  Company  Counsel  shall  provide  a copy  of the  escrow
                  agreement  attached  hereto  as  Exhibit 1 (the  "SRFF  Escrow
                  Agreement"), executed by Company Counsel, and (2) after making
                  a  disbursement  of any  of  the  funds  referred  to in  this
                  subparagraph  (F),  Company  Counsel  will  provide the Escrow
                  Agent with a copy of the Notice of Disbursement (as defined in
                  the SRFF Escrow Agreement); and

                  (G) release the balance of the Escrow Funds to the Company (to
                  be wired to an account in the Company's name).

            (II) When Investors' Counsel (as defined in the Registration  Rights
      Agreement)  provides comments to the Company on the Company's draft of the
      Registration Statement, the Escrow Agent will release the Investor Counsel
      Registration Statement Review Fee to the Investor's Counsel.

            (III)  Upon  "receipt  of  proof"  of  filing  of  the  Registration
      Statement  with the SEC in proper form (which  "receipt of proof" shall be
      based  on  the  availability  of  such  filed  Registration  Statement  on
      EDGAR(1),  the Escrow  Agent shall  release,  out of the  Company  Counsel
      Registration  Fee  Reserve,  to or upon the order of Company  Counsel,  an
      amount equal to $22,500, to be applied to the Company Counsel Registration
      Fee.

            (IV)  Upon  written  confirmation  from  Company  Counsel  that  the
      Effective Date has occurred,  the Escrow Agent shall  release,  to or upon
      the order of Company Counsel, the remaining balance of the Company Counsel
      Registration  Fee  Reserve,  to be applied to the  balance of the  Company
      Counsel Registration Fee.

            (e) If the  relevant  Certificates  for  the  Closing  Date  are not
      deposited  with the Escrow Agent within five (5) days after receipt by the
      Company of notice of receipt by the  Escrow  Agent of the  Purchase  Price
      funds from the Lenders, the Escrow Agent shall notify the Lenders and each
      Lender shall be entitled to cancel the  purchase  and demand  repayment of

---------------------------------
1     Company  Counsel  shall advise the Escrow  Agent of such filing,  which is
      subject to  confirmation  of such filing based on its  availability on the
      SEC website or on 10kwizard.com or freeedgar.com.

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<PAGE>

      the funds.  If the Purchase Price funds are not deposited as cleared funds
      with the Escrow Agent by the Closing  Date,  the Escrow Agent shall notify
      the Company and the Company  shall be entitled to cancel the  purchase and
      demand return of the relevant Certificates deposited in escrow.

            (f)  Notwithstanding  the  Escrow  Agent's  receipt  of the  Release
      Conditions  with respect to the Closing Date, if the Company or the Lender
      notifies  the Escrow  Agent  before the  release  of the  relevant  Escrow
      Property that the conditions  precedent to the  obligations of the Company
      or the Lender, as the case may be, under the Agreement with respect to the
      purchase and sale of  Securities  to be effected on such Closing Date were
      not  satisfied or waived,  then the Escrow Agent shall return the relevant
      Escrow  Funds to the  Lender and shall  return  such  Certificates  to the
      Company.

            (g) Prior to  return of any  Escrow  Funds to a Lender,  the  Lender
      shall  furnish  such  tax  reporting  or  other  information  as  shall be
      appropriate for the Escrow Agent to comply with  applicable  United States
      laws.

            (h) The Escrow Agent shall deposit all funds  received  hereunder in
      the Escrow Agent's  attorney  escrow account at The Bank of New York or at
      such other bank at which the Escrow  Agent  then  maintains  other  escrow
      accounts; the interest earned on such account shall be deemed the property
      of the party depositing the funds in escrow.

      2. The Escrow Agent's duties hereunder may be altered,  amended,  modified
or revoked only by a writing signed by the party to be charged therewith.

      3. The Escrow Agent shall be obligated  only for the  performance  of such
duties as are  specifically set forth herein and may rely and shall be protected
in relying or refraining  from acting on any instrument  reasonably  believed by
the  Escrow  Agent to be genuine  and to have been  signed or  presented  by the
proper party or parties. The Escrow Agent shall not be personally liable for any
act the Escrow  Agent may do or omit to do  hereunder  as the Escrow Agent while
acting in good faith,  and any act done or omitted by the Escrow Agent  pursuant
to the  advice  of the  Escrow  Agent's  attorneys-at-law  shall  be  conclusive
evidence of such good faith.

      4. The Escrow Agent is hereby  expressly  authorized  to disregard any and
all  warnings  given by any of the  parties  hereto  or by any  other  person or
corporation,  excepting  only  orders or  process of courts of law and is hereby
expressly authorized to comply with and obey orders, judgments or decrees of any
court. In case the Escrow Agent obeys or complies with any such order,  judgment
or decree,  the Escrow Agent shall not be liable to any of the parties hereto or
to any  other  person,  firm or  corporation  by  reason  of such  decree  being
subsequently reversed,  modified,  annulled, set aside, vacated or found to have
been entered without jurisdiction.

      5. The Escrow  Agent  shall not be liable in any respect on account of the
identity,  authorities  or rights of the  parties  executing  or  delivering  or
purporting  to execute or  deliver  the  Agreement  or any  documents  or papers
deposited or called for hereunder.

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<PAGE>

      6. The Escrow  Agent shall be  entitled  to employ such legal  counsel and
other experts as the Escrow Agent may deem  necessary to advise the Escrow Agent
properly in connection with the Escrow Agent's duties  hereunder,  may rely upon
the advice of such  counsel,  and may pay such counsel  reasonable  compensation
therefor. The Escrow Agent has acted as legal counsel for the Lenders and/or the
Placement Agent and/or their respective  affiliates,  and may continue to act as
legal  counsel  for  any  one or  more of  such  parties,  from  time  to  time,
notwithstanding  its duties as the Escrow Agent  hereunder.  Each of the Company
and each Lender  consents to the Escrow Agent  acting in such  capacity as legal
counsel  for a Lender  and/or  the  Placement  Agent or any of their  respective
affiliates and waives any claim that such  representation  represents a conflict
of interest on the part of the Escrow Agent. Each of the Company and each Lender
understands  that the Lender and the Escrow Agent are relying  explicitly on the
foregoing provision in entering into these Joint Escrow Instructions.

      7. The Escrow Agent's  responsibilities  as escrow agent  hereunder  shall
terminate if the Escrow Agent shall resign by written  notice to the Company and
each Lender. In the event of any such  resignation,  the Lenders and the Company
shall appoint a successor Escrow Agent.

      8. If the Escrow Agent reasonably requires other or further instruments in
connection  with these  Joint  Escrow  Instructions  or  obligations  in respect
hereto, the necessary parties hereto shall join in furnishing such instruments.

      9. It is understood  and agreed that should any dispute arise with respect
to the delivery and/or  ownership or right of possession of the documents or the
Escrow Funds held by the Escrow Agent hereunder,  the Escrow Agent is authorized
and directed in the Escrow  Agent's sole  discretion (1) to retain in the Escrow
Agent's possession without liability to anyone all or any part of said documents
or the Escrow Funds until such disputes shall have been settled either by mutual
written  agreement  of the  parties  concerned  or by a final  order,  decree or
judgment  of a court of  competent  jurisdiction  after the time for  appeal has
expired and no appeal has been perfected, but the Escrow Agent shall be under no
duty  whatsoever to institute or defend any such  proceedings  or (2) to deliver
the Escrow Funds and any other  property and documents  held by the Escrow Agent
hereunder  to  a  state  or  federal  court  having  competent   subject  matter
jurisdiction  and located in the State and City of New York in  accordance  with
the applicable procedure therefor.

      10. The Company and the Lender  agree  jointly and  severally to indemnify
and hold harmless the Escrow Agent from any and all claims,  liabilities,  costs
or expenses in any way arising from or relating to the duties or  performance of
the Escrow Agent hereunder other than any such claim, liability, cost or expense
to the extent the same shall (a) have been tax  obligations  in connection  with
Escrow Agent's fee hereunder, or (b) have been determined by final, unappealable
judgment of a court of competent  jurisdiction  to have  resulted from the gross
negligence or willful misconduct of the Escrow Agent, or (c) be a liability,  or
arise from liability, to either the Company or the Lender.

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<PAGE>

      11. Any notice  required or permitted  hereunder  shall be given in manner
provided in the Section headed  "NOTICES" in the  Agreement,  the terms of which
are incorporated herein by reference.

      12. By signing these Joint Escrow Instructions, the Escrow Agent becomes a
party hereto only for the purpose of these Joint Escrow Instructions; the Escrow
Agent does not become a party to the Agreement.  The Company and the Lender have
become  parties  hereto by their  execution  and delivery of the  Agreement,  as
provided therein.

      13. This instrument  shall be binding upon and inure to the benefit of the
parties hereto, and their respective  successors and permitted assigns and shall
be  governed  by the laws of the  State of New York  without  giving  effect  to
principles  governing the conflicts of laws. A facsimile  transmission  of these
instructions  signed  by the  Escrow  Agent  shall be legal and  binding  on all
parties hereto.

      14.  The  parties  hereto  hereby  waive  a trial  by jury in any  action,
proceeding or  counterclaim  brought by either of the parties hereto against the
other in respect of any matter arising out of or in connection  with these Joint
Escrow Instructions.

      15. The  rights and  obligations  of any party  hereto are not  assignable
without the written  consent of the other  parties  hereto.  These Joint  Escrow
Instructions constitute the entire agreement amongst the parties with respect to
the subject matter hereof.

      16. The  Company  agrees  that (x) the  Placement  Agent is a third  party
beneficiary  of the provisions of (i) Section 1(b) hereof and (ii) clause (I)(B)
in Section 1(d) hereof,  and (y) such  provisions  can not be amended or revoked
without the prior written consent of the Placement Agent.

ACCEPTED BY ESCROW AGENT:
KRIEGER & PRAGER LLP

By:
      ---------------------------------------------------------------
Date:
      ---------------------------------------------------------------

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