Document:

<PAGE>

Exhibit 10.20

                      FORM OF SECURITIES PURCHASE AGREEMENT

Securities  Purchase Agreement (together with the schedules and exhibits hereto,
this "Agreement"),  dated as of July 18, 2003, by and between Auto Data Network,
Inc.,  a Delaware  corporation  (the  "Company"),  and each of the  Persons  (as
defined  below) who has  executed a  signature  page to this  Agreement  (each a
"Purchaser," and together, the "Purchasers").

                              W I T N E S S E T H:

WHEREAS,  the  Company  desires  to issue  and sell to the  Purchasers,  and the
Purchasers desire to purchase from the Company,  the Securities (as such term is
defined below) as set forth below.

NOW,  THEREFORE,  in  consideration  of the  foregoing  premises  and the mutual
covenants and agreements hereinafter contained,  and for other good and valuable
consideration,  the receipt and  sufficiency  of which are hereby  acknowledged,
intending to be legally bound, the parties hereto hereby agree as follows:

1. Authorization and Sale of Securities.

1.1  Authorization.  The Company has duly authorized the issuance and sale of up
to 500,000 shares of its Series A-1 Preferred  Stock, par value $0.001 per share
(the  "Series  A-1  Preferred  Stock")  and  2,300,000  shares of its Series A-2
Preferred  Stock,  par value $0.001 per share (the "Series A Preferred  Stock").
The Series A-1  Preferred  Stock and the  Series  A-2  Preferred  Stock have the
powers,  designations,  preferences,  rights,  qualifications,  limitations  and
restrictions  contained in the  Certificate  of  Designations  of the Series A-1
Preferred  Stock and the Series A-2  Preferred  Stock,  in the form of Exhibit A
hereto (the  "Certificate  of  Designations").  The Series A-2  Preferred  Stock
offered hereby is referred to herein as the "Securities".  The Purchasers of the
Series A-1  Preferred  Stock and the Series A-2  Preferred  Stock shall have the
benefit of certain  registration rights in respect of the shares of Common Stock
underlying the  Securities on the terms and conditions of a Registration  Rights
Agreement,   in  the  form  of  Exhibit  B  hereto  (the  "Registration   Rights
Agreement").  The  Company  is  offering  shares  of  the  A-2  Preferred  Stock
Securities (the  "Offering")  for sale only to individuals,  entities or groups,
including,  without  limitation,   corporations,  limited  liability  companies,
limited or general  partnerships,  joint  ventures,  associations,  joint  stock
companies, trusts, unincorporated organizations,  or governments or any agencies
or  political  subdivisions  thereof  (each,  a  "Person")  who are  "accredited
investors"  (as  defined  herein).  The  Company is making the  Offering  of the
Securities  directly  through its officers and its  directors,  but may engage a
placement  agent (the  "Placement  Agent") and other  registered  broker-dealers
("Other  Participating  Agents")  may also place  Securities.  All  subscription
proceeds will be paid at Closing to the account or accounts specified in Section
1.2 herein,  provided that in the event that a Placement Agent is utilized,  the
Company will utilize an escrow agent (the "Escrow  Agent") for receipt of funds.
All  references  in this  Agreement  to the Escrow  Agent  shall be deemed to be
references  to the  Company  in the event that  there is no third  party  Escrow
Agent.

1.2 Subscription.
Subject to the terms and  conditions  hereinafter  set forth in this  Agreement,
each  Purchaser  hereby offers to purchase,  at a price of $2.50 per share,  the
number of  shares of Series  A-2  Preferred  Stock set forth  beneath  each such
Purchaser's  name on the  signature  pages of this  Agreement,  for

<PAGE>

an aggregate  purchase price (the "Purchase Price") to be paid by such Purchaser
in the amount set forth on the signature page beneath such Purchaser's name.

1.3 Subscription  Procedures.  To submit this Subscription,  each Purchaser must
deliver (i) this Agreement, including, without limitation, the annexed Purchaser
Questionnaire,   both  duly   completed   and  executed  and  (ii)  an  executed
Registration Rights Agreement to the following address, unless otherwise advised
by the Company:

First Securities USA, Inc.
2361 Campus Drive
Suite 210
Irvine, California 92612
Attention: Compliance (re Auto Data Network, Inc.)
(with any questions to be raised with Jon Buttles at (949) 679-8328)

The Company may accept or reject  subscriptions,  in whole or in part, or accept
subscriptions  for  less  than the  $50,000  minimum  subscription,  in its sole
discretion.  The Company shall notify each Purchaser of the portion,  if any, of
such Purchaser's subscription which has been accepted,  payment instructions for
the purchase price,  including wire transfer  instructions  and instructions for
delivery  of  payment  by  checks,  if  applicable,  and the date upon which the
applicable  Closing shall be held and payment must be made.  At each  applicable
Closing,  each Purchaser acquiring  Securities at such Closing shall deliver and
pay the applicable  purchase price in full for the Securities being purchased by
such Purchaser at such Closing,  in the amount of $2.50 for each share of Series
A-2 Preferred Stock for which such  Purchaser's  subscription has been accepted,
in U.S. dollars, in immediately  available funds, in accordance with the payment
instructions contained in the notification to such Purchaser by the Company.

2. Closing.
Upon  acceptance  of  subscriptions  for Series A-2  Preferred  Stock  totaling,
together with proceeds  from the sale of Series A-1  Preferred  Stock,  at least
$3,500,000 (the "Initial Minimum Offering"), the Company shall hold a closing of
the purchase and sale of such  Securities (the "Initial  Closing").  The Company
may thereafter hold one or more additional closings (each closing, including the
Initial  Closing,  a "Closing",  and the final closing the "Final Closing") upon
the purchase and sale of additional  Securities  until an aggregate amount of up
to $7,000,000 (the "Maximum  Offering") of Series A-1 Preferred Stock and Series
A-2 Preferred Stock have been sold by the Company. Each Closing shall be held at
such  location as the Company may  determine.  The Final Closing will take place
within sixty (60) days after the Initial  Closing,  unless the offering which is
the subject of this  Agreement  is extended by the Company for up to thirty (30)
additional  days.  The date of the  Initial  Closing  will be referred to as the
"Initial  Closing  Date" and the date of the Final Closing is referred to as the
"Final  Closing Date." At the Closing with respect to the  subscription  by each
Purchaser,  to the extent the same is accepted by the Company,  the Company will
register  in the name of each such  Purchaser  that number of  Securities  being
purchased by such Purchaser in accordance with the information on the applicable
signature page of this Agreement.

2.1  Escrow.  In the event that the Company  engages a Placement  Agent for this
Offering,  pending each Closing all funds paid in respect of this Agreement with
regard to such  Closing  shall be  deposited  in an escrow  account (the "Escrow
Account")  maintained  by the Escrow Agent or remitted  direct to the company at
the company's designation.  The Escrow Account shall not be interest bearing. If
the Company accepts  subscriptions for the Securities at or prior to the Initial
Closing  Date  or the  Final  Closing  Date,  as  the  case  may  be,  then  all
subscription  proceeds

<PAGE>

received for  subscriptions  accepted by the Company  prior to such Closing Date
shall be paid over to the Company at each Closing,  net of the  placement  agent
fees,  if  any,  and  other  offering  expenses,  which  shall  be  paid  to the
appropriate parties at each such Closing. If the Company shall not have received
and accepted each Purchaser's subscription, then that subscription shall be void
and all funds paid hereunder by such Purchaser,  without deduction  therefrom or
interest thereon, shall be promptly returned to such Purchaser.

2.2. Return of Funds.  Each Purchaser  hereby  authorizes and directs the Escrow
Agent to return or direct  the  return  of any funds  from the  Escrow  Account,
without deduction  therefrom or interest thereon, to the same account from which
the  funds  were  originally   drawn,  to  the  extent  that  such   Purchaser's
subscription is not accepted prior to the termination of the Offering.

3. Conditions to the Obligations of each Purchaser at Closing.
The  obligation  of each  Purchaser  to  purchase  and  pay  for the  Securities
subscribed for by such
Purchaser at the applicable  Closing is subject to the  satisfaction on or prior
to the Initial  Closing Date or the Final  Closing  Date, as the case may be, of
the  following  conditions,  each  of  which  may be  waived  by the  applicable
Purchaser:

3.1 Opinion of Counsel to the Company.  The Placement  Agent shall have received
from counsel for the Company,  its opinion  dated as of the  applicable  Closing
Date, and addressed to the applicable  Purchasers  purchasing securities on such
Closing Date), covering the matters attached hereto as Exhibit C.

3.2  Representations  and Warranties.  The representations and warranties of the
Company  contained in this Agreement which are qualified as to materiality  must
be true and correct in all respects and the  representations  and  warranties of
the  Company  contained  in  this  Agreement  which  are  not  qualified  as  to
materiality must be true and correct in all material  respects as of the Closing
Date except to the extent that the  representations  and warranties relate to an
earlier date in which case the  representations  and warranties must be true and
correct as written or true and correct in all material respects, as the case may
be, as of the earlier date.

3.3 Performance of Covenants.  The Company shall have performed or complied with
in all material  respects all covenants and agreements  required to be performed
by it on or  prior  to  the  applicable  Closing  pursuant  to  this  Agreement,
including,  without  limitation,  the delivery of  certificates  evidencing  the
Securities issued to the Purchasers at the Closing.

3.4 No Injunctions;  etc. No court or governmental  injunction,  order or decree
prohibiting  the purchase and sale of the  Securities  will be in effect.  There
will not be in effect any law, rule or regulation prohibiting or restricting the
sale or  requiring  any  consent or  approval  of any  Person  that has not been
obtained to issue and sell the Securities to the Purchasers.

3.5 Closing Documents. At each Closing, the Company shall have delivered to each
applicable Purchaser the following:

(a) a certificate of the President of the Company certifying that the conditions
in Sections 3.2 and 3.3 have been satisfied;

(b) A  certificate  of the  Secretary of the  Company,  dated as of that Closing
Date, certifying (i) the attached copies of the Certificate of Incorporation and
By-laws of the Company,  (ii) the  resolutions  of the Board of Directors of the
Company (the "Board")  authorizing  the execution,  delivery and  performance of
this  Agreement and the issuance of the Securities  (including,  but not

<PAGE>

limited to, for purposes of Section 203 of the Delaware General Corporation Law)
and (iii) the  incumbency  of the  officers  duly  authorized  to  execute  this
Agreement and the other documents contemplated by this Agreement;

(c) a certificate of the Secretary of State of the State of Delaware, dated as a
recent  date  (but no more  than five  business  days)  prior to the date of the
applicable  Closing,  to the effect that the Company is in good  standing in the
State of  Delaware  and that all  annual  reports,  if any,  have been  filed as
required and that all taxes and fees have been paid in connection therewith;

(d) a copy of the  Certificate  of  Designations  certified by the  Secretary of
State of the State of Delaware;

(e) a certificate evidencing the Securities purchased by such Purchaser;

(f) a Registration Rights Agreement duly executed by the Company;

(g) a list of stockholders of the Company, and their respective shareholdings as
indicated in
the Company  stock  records,  certified  to be true and correct in all  material
respects by an executive officer of the Company; and

(h) a Financial  Certificate,  certifying  that true and complete  copies of the
unaudited
consolidated  balance  sheet (the  "2003  Balance  Sheet") of the  Company as of
February 28, 2003, and the related income statement and cash flow for the period
then ended (the "2003 Financial Statements") are attached thereto.

3.6 Waivers and  Consents.  The Company  will have  obtained  all  consents  and
waivers  necessary  to  execute  and  deliver  this  Agreement  and all  related
documents  and  agreements  and to issue and  deliver  the  Securities,  and all
consents and waivers will be in full force and effect.

4. Conditions to the Obligations of the Company at Closing.
The  obligation of the Company to issue and sell the Securities to any Purchaser
is subject to the satisfaction on or prior to each Closing Date of the following
conditions, each of which may be waived by the Company:

4.1 Receipt of Purchase Price.  The Company shall have received  payment in full
in  immediately  available  funds in U.S.  dollars of the Purchase Price for the
Securities with respect to which the Company has accepted the Subscription  made
by such Purchaser by means of this Agreement.

4.2  Representations  and Warranties.  The representations and warranties of the
Purchaser contained in this Agreement which are qualified as to materiality must
be true and correct in all respects and the  representations  and  warranties of
the  Purchasers  contained  in this  Agreement  which  are not  qualified  as to
materiality  must  be  true  and  correct  in all  material  respects  as of the
applicable Closing Date.

4.3  Performance of Covenants.  The  Purchasers  will have performed or complied
with in all  material  respects  all  covenants  and  agreements  required to be
performed  by the  Purchasers  on or  prior  to the  Closing  pursuant  to  this
Agreement.

<PAGE>

4.4 Purchaser Questionnaire.  All of the information furnished by such Purchaser
in the confidential  purchaser  questionnaire  accompanying  this Agreement (the
"Purchaser Questionnaire") shall have been accurate and complete in all material
respects.

4.5 No  Injunctions.  No  court or  governmental  injunction,  order  or  decree
prohibiting  the  purchase  or sale of the  Securities  will be in  effect.  4.6
Closing  Document.   The  Purchasers  will  have  delivered  to  the  Company  a
Registration Rights Agreement duly executed by the Purchasers.

4.7 Receipt of Minimum  Proceeds of Offering of Series A-2 Preferred  Stock. The
Company  shall have  received  payment in  immediately  available  funds in U.S.
dollars of the Purchase  Price for at least 900,000 shares of the Securities and
for 500,000 shares of Series A-1 Preferred Stock.

5. Representations and Warranties of each Purchaser.
Each Purchaser, in order to induce the Company to perform this Agreement, hereby
represents and warrants, severally and not jointly, as follows:

5.1 Due  Authorization.  Each  Purchaser  represents  for such  Purchaser to the
Company  that such  Purchaser  has full  power and  authority  and has taken all
action  necessary to authorize  such  Purchaser to execute,  deliver and perform
such Purchaser's obligations under this Agreement.  This Agreement is the legal,
valid and binding obligation of such Purchaser in accordance with its terms.

5.2 Accredited  Investor.  Each Purchaser  represents  that such Purchaser is an
Accredited  Investor as that term is defined in Regulation D  promulgated  under
the Securities Act of 1933, as amended (the "Securities Act").

5.3 No Investment Advice. The Company has not made any other representations or
warranties  to such  Purchaser  other than as set forth  herein or  incorporated
herein by  reference  with  respect to the  Company or rendered  any  investment
advice.

5.4 Investment Experience. Each Purchaser represents that such Purchaser has not
authorized any Person to act as such Purchaser's  Purchaser  Representative  (as
that term is defined in Regulation D of the General Rules and Regulations  under
the Securities Act) in connection with this transaction. Such Purchaser has such
knowledge and experience in financial, investment and business matters that such
Purchaser  is capable  of  evaluating  the  merits and risks of the  prospective
investment in the  securities of the Company.  Such Purchaser has consulted with
such  independent  legal counsel or other  advisers as such Purchaser has deemed
appropriate to assist such  Purchaser in evaluating  the proposed  investment in
the Company.

5.5 Adequate  Means.  Each  Purchaser  represents as to such Purchaser that such
Purchaser  (i) has adequate  means of  providing  for such  Purchaser's  current
financial  needs and  possible  contingencies;  and (ii) can  afford (a) to hold
unregistered  securities for an indefinite  period of time as required;  and (b)
sustain a complete loss of the entire amount of the subscription.

5.6 Access to  Information.  Each Purchaser  represents  that such Purchaser has
been afforded the  opportunity to ask questions of, and receive answers from the
officers  and/or  directors of the Company  acting on its behalf  concerning the
terms  and  conditions  of  this   transaction  and  to  obtain  any  additional
information,  to the extent that the Company  possesses such  information or can
acquire it  without  unreasonable  effort or  expense,  necessary  to verify the
accuracy  of the  information  furnished;  and has had such  opportunity  to the
extent such Purchaser considers appropriate in order to permit such Purchaser to
evaluate the merits and risks of an investment in the Company.  It is understood
that all documents,  records and books  pertaining to this  investment have been
made  available  for  inspection,  and that the books and records of the Company
will be available  upon  reasonable  notice for  inspection by investors  during
reasonable  business  hours at its  principal  place of business.  The foregoing
shall in no way be deemed to limit the ability of each  Purchaser to rely on the
representations  and  warranties  set  forth  herein or  incorporated  herein by
reference.

<PAGE>

5.7 No Endorsement.  Each Purchaser further acknowledges that the offer and sale
of the  Securities  has not been passed upon or the merits  thereof  endorsed or
approved by any state or federal authorities.

5.8 Non-Registered  Securities.  Each Purchaser  acknowledges that the offer and
sale of the Securities have not been registered  under the Securities Act or any
state  securities  laws and the Securities  and the underlying  shares of Common
Stock may be resold only if registered pursuant to the provisions  thereunder or
if an exemption from registration is available.  Each Purchaser understands that
the offer and sale of the Securities is intended to be exempt from  registration
under the Securities Act, based, in part, upon the  representations,  warranties
and agreements of such Purchaser contained in this Agreement.

5.9 No Resale.  Each Purchaser  represents that the Securities  being subscribed
for, and the securities  underlying the subscription,  are being acquired solely
for the account of such Purchaser for such Purchaser's investment and not with a
view to, or for resale in connection  with, any distribution in any jurisdiction
where such sale or distribution would be precluded. By such representation, such
Purchaser means that no other Person has a beneficial interest in the Securities
or the  securities  underlying  the  subscription,  and that no other Person has
furnished or will furnish  directly or indirectly,  any part of or guarantee the
payment of any part of the  consideration  to be paid by such  Purchaser  to the
Company in connection  therewith.  Such  Purchaser does not intend to dispose of
all or any part of the Securities or the securities  underlying the subscription
except in compliance  with the  provisions of the  Securities Act and applicable
state  securities  laws, and understands  that the Securities and the securities
underlying the subscription  are being offered pursuant to a specific  exemption
under the provisions of the Securities Act, which  exemption(s)  depends,  among
other things, upon the compliance with the provisions of the Securities Act.

5.10 Legend.  Each Purchaser hereby acknowledges and agrees that the Company may
insert  the  following  or  similar  legend  on the  face  of  the  certificates
evidencing the  Securities  purchased by such Purchaser and the shares of Common
Stock issued upon the  conversion  or exercise  thereof,  as the case may be, if
required in compliance with the Securities Act or state securities laws:

"These  securities have not been registered under the Securities Act of 1933, as
amended (the "Securities Act"), or any state securities laws and may not be sold
or  otherwise  transferred  or  disposed  of  except  pursuant  to an  effective
registration  statement  under  the  Securities  Act  and any  applicable  state
securities laws, or an opinion of counsel  satisfactory to counsel to the issuer
that an  exemption  from  registration  under the act and any  applicable  state
securities laws is available.".

5.11  Broker's  or  Finder's  Commissions.  Other than the  Placement  Agent (as
placement agent on behalf of the Company) or any Other  Participating  Agent, if
any, no finder,  broker, agent, financial person or other intermediary has acted
on behalf of any Purchaser in connection  with the sale of the Securities by the
Company  or the  consummation  of  this  Agreement  or  any of the  transactions
contemplated  hereby.  Each  Purchaser  certifies  that  each  of the  foregoing
representations and warranties by such Purchaser set forth in this Section 5 are
true as of the date hereof and shall survive such date.

<PAGE>

6. Representations and Warranties of the Company.

The Company represents and warrants to the Purchasers that:

6.1 Organization, Good Standing and Qualification.  The Company is a corporation
duly  organized,  validly  existing and in good  standing  under the laws of the
State of Delaware. The Company has full corporate power and authority to own and
hold its properties and to conduct its business. The Company is duly licensed or
qualified to do business,  and in good standing,  in each  jurisdiction in which
the nature of its business requires  licensing,  qualification or good standing,
except for any failure to be so licensed or qualified or in good  standing  that
would not have a  material  adverse  effect on the  Company  or its  results  of
operations,  assets or  financial  condition  or on its  ability to perform  its
obligations under this Agreement or to issue the Securities (a "Material Adverse
Effect").

6.2  Capitalization.  As of the date hereof, the authorized capital stock of the
Company consists of 50,000,000  shares of Common Stock and 25,000,000  shares of
Preferred Stock, par value $0.001 per share (the "Preferred Stock"). The list of
stockholders of the Company, and their respective  shareholdings as indicated in
the Company  stock  records,  furnished to the  Purchasers on the date hereof is
true and correct in all material respects. As of the date hereof, (i) 13,942,289
shares of Common  Stock were  issued and  outstanding,  (ii) no shares of Common
Stock were reserved for issuance upon exercise of outstanding  options issued to
certain  officers of the Company,  (iii) except as set forth below in respect of
certain  recent  negotiations,  no shares  of Common  Stock  were  reserved  for
issuance  upon  exercise of  outstanding  options  issued to persons  other than
officers  of the  Company,  (iv) no shares of Common  Stock  were  reserved  for
issuance upon the exercise of  outstanding  warrants and (v) Company is offering
up to  500,000  shares of its  Series  A-1  Preferred  Stock and the  Company is
separately  offering up to 2,300,000  shares of its Series A-2 Preferred  Stock,
and no other  shares of  Preferred  Stock were  issued or  outstanding.  All the
outstanding  shares of Common Stock have been duly authorized and validly issued
and are fully paid and nonassessable and free of preemptive rights created by or
through the  Company,  and have been issued in  compliance  with all federal and
state securities laws, and were not issued in violation of any preemptive rights
or similar rights to subscribe for or purchase  securities.  Except as set forth
in this Section 6.2, including without limitation the next succeeding  sentence,
there  are no  other  options,  warrants  or  other  rights,  convertible  debt,
agreements,  arrangements or commitments of any character obligating the Company
to issue or sell any shares of capital stock of or other equity interests in the
Company. The Company has recently negotiated the following  agreements:  (x) the
Company has an  obligation  to issue 300,000  shares to  shareholders  of County
Services within thirty (30) days of approval of the Company's  audited financial
statements  for the fiscal year ended  February  28,  2003,  and 500,000  shares
within  thirty  (30)  days  of  approval  of  the  Company's  audited  financial
statements  for the fiscal year ended  February  28,  2004;  (y) upon receipt of
minimum aggregate proceeds of U.S.$3,500,000 from the sale of the Securities and
from the  offering  of Series A-1  Preferred  Stock,  the  Company  will  retire
indebtedness to shareholders of MAM Software in the amount of  U.S.$4,000,000 as
follows:  $1,000,000 in cash out of said proceeds and 1,363,636 shares of Common
Stock ($3,000,000 of stock based on a price of $2.20 per share);  and (z) if the
Company receives  aggregate  proceeds of U.S.$6,000,000 or more from the sale of
the Securities and from the offering of Series A-1 Preferred  Stock, the Company
intends to close the  acquisition  of Epyx  Limited,  substantially  as follows:
U.S.$1,650,000 in cash, and U.S.$1,650,000 in Common Stock

<PAGE>

of the  Company,  based upon the price of the Common Stock at closing with Epyx,
and  $1,650,000 in Common Stock of the Company to be issued to the  shareholders
of Epyx Limited upon Epyx Limited  achieving  audited operating income in excess
of  U.S.$825,000  for the current  fiscal year.  The Company is not obligated to
retire,  redeem,  repurchase or otherwise  reacquire any of its capital stock or
other securities. Except as disclosed in this Section 6.2 and as contemplated by
this Agreement, there are no stockholders agreements, voting agreements or other
similar  agreements  with  respect to the Common Stock to which the Company is a
party.  Except as contemplated by this Agreement,  the Company does not directly
or indirectly  own or have any investment in any of the capital stock of, or any
other  proprietary  interest  in, any Person  other than  Europortal  Inc.,  MAM
Software Ltd.,  Automatrix  Ltd.,  County  Services and Products and E-com Multi
Ltd.  The Company has not adopted a  stockholders  rights  plan,  poison pill or
similar arrangement.  The consummation of the transactions  contemplated by this
Agreement  will not  accelerate  the vesting  schedule  of any of the  Company's
outstanding   options  or  warrants.   Upon  consummation  of  the  transactions
contemplated by this Agreement,  including  without  limitation this Section 6.2
and the sale of 500,000  shares of the Series A-1 Preferred  Stock,  if at least
900,000 of the Securities are sold, the Securities so sold shall represent, on a
fully-diluted basis,  approximately 11.43% of the Company's  outstanding capital
stock,  and if 2,300,000  shares of the  Securities  are sold, the Securities so
sold shall  represent,  on a fully-diluted  basis,  approximately  24.81% of the
Company's  outstanding  capital stock.  For purposes of the foregoing  sentence,
"fully-diluted"  means:  (I) all  shares  of the  Company  capital  stock  to be
outstanding  immediately following the Closing;  (ii) all securities,  including
options and  warrants,  convertible  into or  exercisable  for shares of Company
capital  stock,  as if exercised and  converted in full at such date;  (iii) all
securities  issuable pursuant to contractual or other obligations of the Company
existing at the Closing;  and (iv) all shares of Company  capital stock reserved
for  issuance to  employees,  consultants  or  directors of the Company or other
Persons not including the securities described in clause (ii).

6.3  Corporate  Power,  Authorization;  Enforceability.  The  Company  has  full
corporate power and authority to execute, deliver and enter into this Agreement,
the  Certificate  of  Designations,   and  the  Registration   Rights  Agreement
(collectively,  the "Transaction  Documents") and to consummate the transactions
contemplated  hereby and  thereby.  All action on the part of the  Company,  its
directors or stockholders necessary for the authorization,  execution,  delivery
and performance of the Transaction  Documents by the Company, the authorization,
sale,  issuance  and  delivery  of the  Securities  contemplated  hereby and the
performance  of the  Company's  obligations  hereunder and  thereunder  has been
taken. The Securities to be purchased on each the Closing Date and the shares of
Common Stock  issuable  upon the  conversion  of the  Securities  have been duly
authorized and, when issued in accordance  with this Agreement,  the Certificate
of  Designations,  as the case may be,  will be validly  issued,  fully paid and
nonassessable and will be free and clear of any mortgage, deed of trust, pledge,
hypothecation, assignment, encumbrance, lien (statutory or other) or preference,
priority,  right or other security  interest or preferential  arrangement of any
kind  or  nature  whatsoever  (excluding  preferred  stock  and  equity  related
preferences)  (collectively,  "Liens")  imposed by or through the Company  other
than  restrictions  imposed by this Agreement,  the Certificate of Designations,
and the  Registration  Rights  Agreement,  as the  case may be,  and  applicable
securities  laws.  No  preemptive  or other rights to subscribe  for or purchase
equity securities of the Company exists with respect to the issuance and sale of
the  Securities or the shares of Common Stock  issuable  upon  conversion of the
Series A Preferred Stock. The Transaction  Documents have been duly executed and
delivered  by  the  Company,   and  constitute  the  legal,  valid  and  binding
obligations of the Company,  enforceable  against the Company in accordance with
their terms,  except as enforceability may be limited by applicable  bankruptcy,
insolvency,  reorganization,  fraudulent  conveyance or transfer,  moratorium or
similar laws  affecting the  enforcement of creditors'  rights  generally and by
general  principles of equity relating to enforceability  (regardless of whether
considered in a proceeding at law or in equity).

<PAGE>

6.4 Financial Statements and Commission Filings;  Undisclosed  Liabilities.  (a)
Included in the  Company's  Form  10-KSB/A for the year ended  February 28, 2002
(the "2002  10-KSB")  are true and complete  copies of the audited  consolidated
balance sheet (the "2002 Balance Sheet") of the Company as of February 28, 2002,
and the related audited income statement and cash flow for the period then ended
(the "2002  Financial  Statements"),  accompanied by the report of each of Frank
Hanson CPA. Attached to the Financial  Certificate delivered at Closing are true
and  complete  copies of the  unaudited  consolidated  balance  sheet (the "2003
Balance  Sheet") of the Company as of February 28, 2003,  and the related income
statement  and  cash  flow  for the  period  then  ended  (the  "2003  Financial
Statements").  As of  their  respective  dates,  the 2002  Financial  Statements
complied  as to  form  in  all  material  respects  with  applicable  accounting
requirements  and the published  rules and  regulations  of the  Securities  and
Exchange  Commission (the "Commission")  with respect thereto.  Each of the 2002
Financial  Statements  and the 2003 Financial  Statements  have been prepared in
accordance  with  U.S.  generally  accepted  accounting   principles   ("GAAP"),
consistently  applied,  during  the  periods  involved  (except  in the  case of
unaudited interim statements, to the extent they may exclude footnotes or may be
condensed or summary statements) and fairly present in all material respects the
consolidated  financial  position of the Company as of the dates thereof and the
results of its operations and cash flows for the periods then ended (subject, in
the case of unaudited  statements,  to normal year-end audit  adjustments).  The
Company  keeps  proper  accounting  records  in which all  material  assets  and
liabilities  and all  material  transactions  of the  Company  are  recorded  in
conformity  with GAAP.  (b) Since  February 28, 2002,  the Company has filed all
reports,  schedules,  forms, statements and other documents required to be filed
by it  with  the  Commission  pursuant  to  the  reporting  requirements  of the
Securities  Exchange Act of 1934,  as amended (the  "Exchange  Act") (all of the
foregoing,  including,  but not limited to, the 2002 10-KSB,  filed prior to the
date hereof and all  exhibits  included  therein and  financial  statements  and
schedules  thereto  and  documents   incorporated  by  reference  therein  being
hereinafter  referred to as the "Commission  Documents") and all such Commission
Documents  were filed within the time periods  specified in the Exchange Act. As
of their  respective  filing dates,  each  Commission  Document  complied in all
material  respects with the  requirements  of the Securities Act or the Exchange
Act, as applicable,  and the rules and regulations of the Commission  thereunder
applicable to the Commission Documents, and no Commission Document contained any
untrue  statement  of a  material  fact or omitted  to state any  material  fact
required to be stated therein or necessary to make the statements therein. As of
their respective filing dates, the financial  statements of the Company included
in the Commission  Documents  complied as to form in all material  respects with
then  applicable  accounting  requirements  and with  the  published  rules  and
regulations of the Commission with respect thereto,  were prepared in accordance
with GAAP and as of their  respective  dates,  fairly  presented in all material
respects the consolidated  financial  position of the Company and the results of
its operations as of the time and for the periods  indicated  therein (except as
may  be  indicated  in the  notes  thereto  or,  in the  case  of the  unaudited
statements,  as  permitted by Form 10-QSB,  and  Regulations  S-B and S-X of the
Commission).  (c) Since  February  28,  2002,  the Company has not  incurred any
liabilities  or  obligations  of any nature,  whether or not accrued,  absolute,
contingent or otherwise ("Liabilities"), other than liabilities (i) disclosed in
the  Commission  Documents  filed  prior  to the  date of this  Agreement,  (ii)
adequately  provided for in the Balance  Sheet or disclosed in any related notes
thereto,  (iii) incurred in connection with this Agreement,  or (iv) incurred in
the ordinary  course of business,  in each case other than such  liabilities  or
obligations which do not have a Material Adverse Effect.

<PAGE>

6.5 No Material Adverse Changes. Since February 28, 2002, except as disclosed in
the Commission  Documents filed  subsequent to that date, there has not been any
material  adverse  change in the  business,  financial  condition  or  operating
results of the Company.

6.6 Absence of Certain  Developments.  Except as  contemplated by this Agreement
and as  contemplated  by the  Commission  Documents,  since  February  28, 2002,
through the date  immediately  preceding  each Closing Date, the Company has not
(a) issued any stock, options, bonds or other corporate securities other than as
reflected  in Section 6.2 hereof,  (b) borrowed any amount or incurred or became
subject to any Liabilities (absolute, accrued or contingent), other than current
Liabilities  incurred in the ordinary course of business and  Liabilities  under
contracts  entered into in the ordinary  course of business,  (c)  discharged or
satisfied any material Lien or adverse claim or paid any obligation or Liability
(absolute,  accrued or contingent),  other than current Liabilities shown on the
Balance  Sheet  and  current  Liabilities  incurred  in the  ordinary  course of
business,  (d)  declared  or made any payment or  distribution  of cash or other
property  to the  stockholders  of the  Company or  purchased  or  redeemed  any
securities of the Company,  (e) mortgaged,  pledged or subjected to any material
Lien or adverse  claim any of its  properties  or  assets,  except for Liens for
taxes not yet due and payable or otherwise  in the ordinary  course of business,
(f) sold,  assigned or  transferred  any of its assets,  tangible or intangible,
except in the  ordinary  course of business or in an amount less than  $250,000,
(g) suffered  any  extraordinary  losses or waived any rights of material  value
other than in the ordinary course of business, (h) made any capital expenditures
or commitments  therefore other than in the ordinary course of business or in an
amount less than $250,000,  (i) entered into any other transaction other than in
the ordinary  course of business in an amount less than $250,000 or entered into
any material transaction, whether or not in the ordinary course of business, (j)
made  any  charitable  contributions  or  pledges,  (k)  suffered  any  damages,
destruction or casualty loss, whether or not covered by insurance, affecting any
of the properties or assets of the Company or any other  properties or assets of
the Company which could,  individually or in the aggregate,  have or result in a
Material  Adverse  Effect,  (l)  made  any  material  change  in the  nature  or
operations of the business of the Company,  (m)  participated in any transaction
that  would  have a Material  Adverse  Effect or  otherwise  acted  outside  the
ordinary course of business,  (n) the Company has not increased the compensation
of any of its  officers  or the rate of pay of any of its  employees,  except as
part of regular compensation  increases in the ordinary course of business,  (o)
entered into any agreement or commitment to do any of the foregoing.

6.7 No Conflict;  Governmental  Consents.  (a) The execution and delivery by the
Company  of  this  Agreement  and  the  Registration  Rights  Agreement  and the
consummation of the  transactions  contemplated  hereby and thereby will not (i)
result in the violation of any provision of the Certificate of  Incorporation or
By-laws or other  organizational  documents of the  Company,  (ii) result in any
violation  of any law,  statute,  rule,  regulation,  order,  writ,  injunction,
judgment  or decree of any court or  Governmental  Authority  to or by which the
Company is bound, or (iii) conflict with, or result in a breach or violation of,
any of the terms or provisions  of, or  constitute  (with due notice or lapse of
time or both) a default under,  any bond,  debenture,  note or other evidence of
indebtedness,  or any material lease,  contract,  indenture,  mortgage,  deed of
trust,  loan agreement,  joint venture or other agreement or instrument to which
the Company is a party or by which it or its  property  is bound,  nor result in
the creation or imposition  of any Lien upon any of the  properties or assets of
the  Company,  except  for,  in the  case of  clauses  (ii)  and  (iii)  of this
subsection  6.7(a), any violation,  conflict,  breach or default which would not
have a Material  Adverse Effect.

(b) No material consent,  approval,  license, permit, order or authorization of,
or registration, declaration or filing with, any court, administrative agency or
commission  or  other  Governmental  Authority  or  Person,  and no lapse of any
waiting period under any Requirements of Law, remains to be obtained (or lapsed)
or is otherwise  required to be obtained by the Company in  connection

<PAGE>

with  the  authorization,  execution  and  delivery  of  this  Agreement  or the
Registration   Rights   Agreement  or  the   consummation  of  the  transactions
contemplated hereby or thereby, including, without limitation the issue and sale
of the Securities  and the shares of Common Stock  underlying  such  Securities,
except  filings as may be required to be made by the Company  after each Closing
with (i) the Commission,  (ii) the National  Association of Securities  Dealers,
Inc.  ("NASD"),  (iii) the Nasdaq Stock Market,  Inc. and (iv) state blue sky or
other  securities  regulatory  authorities.  For  purposes  of  this  Agreement,
"Requirements of Law" means, as to any Person, any law, statute,  treaty,  rule,
regulation,   right,   privilege,   qualification,   license  or   franchise  or
determination  of an  arbitrator  or a court or other  government of any nation,
state,  city,  locality  or other  political  subdivision  thereof,  any  entity
exercising  executive,  legislative,   judicial,  regulatory  or  administrative
functions of or pertaining to  government,  and any  corporation or other entity
owned or controlled,  through stock or capital ownership or otherwise, by any of
the foregoing (each, a "Governmental Authority") or stock exchange, in each case
applicable  or binding  upon such Person or any of its property or to which such
Person or any of its  property  is  subject or  pertaining  to any or all of the
transactions contemplated or referred to herein.

6.8  Litigation.   There  are  no  claims,  actions,  suits,  investigations  or
proceedings  pending  or, to the  Company's  knowledge,  threatened  proceedings
against the Company or its respective  assets, at law or in equity, by or before
any Governmental  Authority,  or by or on behalf of any third party,  except for
any claim,  action,  suit,  investigation  or proceeding  which would not have a
Material  Adverse  Effect nor does the Company have  knowledge that there is any
reasonable basis for any of the foregoing.  There are no claims, actions, suits,
investigations or proceedings pending or, to the Company's knowledge, threatened
proceedings  against  the  Company  contesting  the right of the Company to use,
sell,  import,  license,  or make  available to any Person any of the  Company's
products or services  currently or previously  sold,  offered,  licensed or made
available  to any Person or used by the  Company or opposing  or  attempting  to
cancel any of the Company's  Intellectual Property rights, except for any claim,
action,  suit,  investigation  or  proceeding  which  would not have a  Material
Adverse Effect.

6.9 Compliance with Laws; No Default or Violation;  Contracts. The Company is in
compliance in all material  respects with all Requirements of Law and all orders
issued  by any  court or  Governmental  Authority  against  the  Company  in all
material respects. To the Company's knowledge, there is no existing or currently
proposed  Requirement  of Law which could  reasonably be expected to prohibit or
restrict the Company from, or otherwise  materially adversely affect the Company
in,  conducting  its  business in any  jurisdiction  in which it now conducts or
proposes  to conduct  such  business.  The Company  has all  material  licenses,
permits and approvals of any Governmental  Authority  (collectively,  "Permits")
that are  necessary  for the conduct of the business of the  Company;  (ii) such
Permits are in full force and effect;  and (iii) no violations  are or have been
recorded in respect of any Permit. No material expenditure is presently required
by the Company to comply with any existing  Requirements of Law or order. Except
as would not be  reasonably  expected  to have a Material  Adverse  Effect,  the
Company is not (i) in default  under or in violation of any  indenture,  loan or
credit  agreement or any other agreement or instrument to which it is a party of
by which it or any of its properties is bound or (ii) in violation of any order,
decree or judgment of any court, arbitrator or other Governmental Authority. The
contracts  described in the Commission  Documents or  incorporated  by reference
therein  that  are  material  to the  Company  (collectively,  the  "Contractual
Obligations")  are in full force and effect on the date hereof,  and neither the
Company nor, to the

<PAGE>

Company's  knowledge,  any  other  party to such  contracts  is in  breach of or
default under any of such  contracts nor, to the Company's  knowledge,  does any
condition  exist that with  notice or lapse of time or both would  constitute  a
default by such other party thereunder. The Company has not received notice of a
default  and is not in  default  under,  or with  respect  to,  any  Contractual
Obligation nor, to the Company's  knowledge,  does any condition exist that with
notice or lapse of time or both would  constitute a default  thereunder.  All of
such Contractual Obligations are valid, subsisting, in full force and effect and
binding  upon the Company and, to the  Company's  knowledge,  the other  parties
thereto,  and the Company has paid in full or accrued all amounts due thereunder
and has satisfied in full or provided for all of its liabilities and obligations
thereunder.

6.10 Insurance. The Company maintains and will continue to maintain insurance of
the types and in the amounts  that the Company  reasonably  believes is adequate
for its business, including, but not limited to, insurance covering all real and
personal  property  owned  or  leased  by the  Company  against  theft,  damage,
destruction,  acts of vandalism and all other risks customarily  insured against
by similarly  situated  companies,  all of which  insurance is in full force and
effect.

6.11  Environmental  Matters.  The  Company is in  compliance,  in all  material
respects, with all applicable Environmental Laws. There is no civil, criminal or
administrative  judgment,  action,  suit,  demand,  claim,  hearing,  notice  of
violation, investigation, proceeding, notice or demand letter pending or, to the
Company's  knowledge,  threatened  against the Company pursuant to Environmental
Laws.  To  the  Company's  knowledge,  there  are no  past  or  present  events,
conditions, circumstances, activities, practices, incidents, agreements, actions
or plans which could reasonably be expected to prevent compliance with, or which
have given rise to or will give rise to  liability  which  would have a Material
Adverse  Effect,  under  Environmental  Laws.  For  purposes  of the  foregoing,
"Environmental Laws" means federal, state, local and foreign laws, principles of
common laws,  civil laws,  regulations,  and codes, as well as orders,  decrees,
judgments or injunctions,  issued,  promulgated,  approved or entered thereunder
relating  to  pollution,  protection  of the  environment  or public  health and
safety.

6.12  Taxes.  The  Company  has paid or  caused to be paid,  or has  established
reserves  in  accordance  with GAAP for all Tax  liabilities  applicable  to the
Company for all fiscal years that have not been  examined and reported on by the
taxing  authorities  (or  closed by  applicable  statutes).  No  additional  Tax
assessment against the Company has been heretofore proposed or, to the Company's
knowledge,  threatened by any Governmental Authority for which provision has not
been made on its balance sheet.  No tax audit is currently in progress and there
is no unassessed deficiency proposed or, to the Company's knowledge,  threatened
against the Company.  The Company has no knowledge of any change in the rates or
basis of assessment  of any Tax (other than federal  income tax), of the Company
which  would  reasonably  be  expected to have a Material  Adverse  Effect.  The
Company has not agreed to or is required to make any  adjustments  under section
481 of the Code by reason of a change of accounting method or otherwise. None of
the assets of the  Company  is  required  to be  treated  as being  owned by any
Person, other than the Company or any of its subsidiaries, pursuant to the "safe
harbor" leasing  provisions of Section 168(f)(8) of the Code. The company is not
a "United States real property holding corporation" (a "USRPHC") as that term is
defined  in  Section  897(c)(2)  of the  Code  and the  regulations  promulgated
thereunder.  For purposes of this Agreement,  "Code" means the Internal  Revenue
Code of 1986,  as amended,  and "Taxes"  means any federal,  state,  provincial,
county, local, foreign and other taxes (including,  without limitation,  income,
profits, windfall profits, alternative,  minimum, accumulated earnings, personal
holding  company,  capital  stock,  premium,  estimated,   excise,  sales,  use,
occupancy,  gross  receipts,  franchise,  ad valorem,  severance,  capital levy,
production,  transfer,  withholding,   employment,   unemployment  compensation,
payroll and property  taxes,  import duties and other  governmental  charges and
assessments),  whether or not  measured in whole or in part by net  income,  and
including  deficiencies,  interest,  additions to tax or interest, and penalties
with respect  thereto,  and including  expenses  associated  with contesting any
proposed adjustments related to any of the foregoing.

<PAGE>

6.13 Intellectual Property.
(a)  "Intellectual  Property"  shall  mean  all of the  following  as  they  are
necessary in connection with the business of the Company as presently  conducted
and as they exist in all  jurisdictions  throughout the world,  in each case, to
the extent owned by or licensed to the Company: (i) patents, patent applications
and  inventions,   designs  and  improvements  described  and  claimed  therein,
patentable   inventions  and  other  patent  rights  (including  any  divisions,
continuations, continuations-in-part, reissues, reexaminations, or interferences
thereof,  whether or not patents are issued on any such applications and whether
or  not  any  such  applications  are  modified,   withdrawn,   or  resubmitted)
("Patents");  (ii) trademarks,  service marks,  trade dress,  trade names, brand
names,  designs,  logos, or corporate names, whether registered or unregistered,
and all registrations and applications for registration thereof  ("Trademarks");
(iii) copyrights and mask works,  including all renewals and extensions thereof,
copyright   registrations  and  applications  for  registration   thereof,   and
non-registered  copyrights  ("Copyrights");   (iv)  trade  secrets,  inventions,
know-how,  process technology,  databases,  confidential  business  information,
customer  lists,  technical data and other  proprietary  information  and rights
("Trade   Secrets");   (v)  computer  software  programs,   including,   without
limitation,  all source code,  object code, and  documentation  related  thereto
("Software");  (vi) Internet  addresses,  domain names, web sites, web pages and
similar  rights  and  items  ("Internet   Assets");   and  (vii)  all  licenses,
sublicenses and other  agreements or permissions  including the right to receive
royalties,  or any other  consideration  related to the  property  described  in
(i)-(vi).  The Intellectual  Property contains all of the intellectual  property
necessary to operate the business of the Company as currently conducted.

(b)  The  Company  exclusively  owns  (or  otherwise  has the  right  to use the
Intellectual  Property  pursuant  to  a  valid  license,   sublicense  or  other
agreement), free and clear of all Liens, and has the unrestricted right (subject
to any such license terms, if applicable) to use, sell,  license,  or sublicense
all Intellectual Property.

(c) There are no issued Patents, registrations, filings and applications for any
Patents,  Trademarks  and  Copyrights  filed by the  Company.

(d) There are no material  licenses,  sublicenses,  distributor  agreements  and
other agreements or permissions ("IP Licenses") under which the Company is a (i)
licensor,  or (ii)  licensee,  distributor,  or reseller,  except such licenses,
sublicenses and other  agreements  relating to  off-the-shelf  software which is
commercially  available  on a retail  basis for less than $500 per  license  and
$25,000  in the  aggregate  and used  solely  on the  computers  of the  Company
("Off-the-Shelf  Software").  To the  knowledge  of the  Company,  all of the IP
Licenses,  if any, are valid,  enforceable,  and in full force and effect,  and,
with respect to the Company,  will continue to be on identical terms immediately
following the completion of the transactions contemplated by this Agreement.

(e) All products  made,  used or sold by the Company under the Patents have been
marked with the proper patent notice.  (f) All products and materials made, used
or  sold  by  the  Company   containing   Trademarks  bear  the  proper  federal
registration  notice where  permitted by law. (g) All works  encompassed  by the
Copyrights  and used by the Company  have been marked with the proper  copyright
notice.

(h) To the Company's knowledge, upon reasonable inquiry in accordance with sound
business practice and business judgment, all the Company's Intellectual Property
rights are valid and enforceable. The Company has taken all reasonably necessary
actions to maintain and protect each item of Intellectual  Property owned by the
Company.

(i) The Company has taken all  reasonable  precautions  to protect the  secrecy,
confidentiality,  and value of its Trade Secrets and the proprietary  nature and
value of its Intellectual Property. To the best of the Company's knowledge, none
of the Trade Secrets,  wherever  located,  the value of which is contingent upon
maintenance  of  confidentiality  thereof,  have been disclosed to any employee,
representative  or agent of the  Company or any other  person not  obligated  to
maintain such Trade Secret in confidence pursuant to a confidentiality agreement
entered  into with the Company,  except as required  pursuant to the filing of a
patent application by the Company.

<PAGE>

(j) The Company is diligently  prosecuting all Patent applications it has filed,
as instructed by patent counsel.  The Company is diligently filing and preparing
to file  Patent  applications  for all  inventions  in a  manner  and  within  a
sufficient  time period to avoid  statutory  disqualification  of any  potential
Patent application.

(k) [intentionally omitted].

(l) Unless otherwise  disclosed by the Company or pursuant to a current license,
it is not necessary for the Company's business to use any Intellectual  Property
owned by any present or past  director,  officer,  employee or consultant of the
Company  (or  persons  the  Company  presently  intends to hire).  To the actual
knowledge of the Company's executive officers,  at no time during the conception
or reduction to practice of any of the Company's  Intellectual  Property was any
developer, inventor or other contributor to such Intellectual Property operating
under any grants from any  Governmental  Authority or subject to any  employment
agreement,   invention  and   assignment,   nondisclosure   agreement  or  other
Contractual Obligation with any Person that could adversely affect the Company's
rights to its Intellectual Property.

(m) To the knowledge of the Company,  upon reasonable inquiry in accordance with
sound
business  practice and business  judgment,  none of the  Intellectual  Property,
products or services owned, used, developed,  provided,  sold or licensed by the
Company,  or made for,  used or sold by or licensed to the Company by any person
infringes upon or otherwise violates any Intellectual Property rights of others.

(n) To the knowledge of the Company,  upon reasonable inquiry in accordance with
sound business practice and business  judgment,  no Person is infringing upon or
otherwise violating the Intellectual Property rights of the Company.

6.14 Employee Benefit Plans.

(a)  Neither the Company  nor any entity  which is or was under  common  control
within the meaning of Section  414(b),  (c), (m) or (o) of the Code maintains or
contributes to, or has within the preceding six years  maintained or contributed
to, or may have any liability with respect to any employee  benefit plan subject
to Title IV of  Employee  Retirement  Income  Security  Act of 1974,  as amended
("ERISA"), or Section 412 of the Code or any "multiple employer plan" within the
meaning of the Code or ERISA. Each employee benefit plan,  arrangement,  policy,
program, agreement or commitment which the Company maintains,  contributes to or
may have any liability in respect to (each, a "Plan") has been  established  and
administered in accordance with its terms, and complies in form and in operation
with the  applicable  requirements  of  ERISA,  the Code  and  other  applicable
Requirements  of  Law.  No  claim  with  respect  to the  administration  or the
investment of the assets of any Plan (other than routine claims for benefits) is
pending. No event has occurred in connection with which the Company or any Plan,
directly or indirectly,  could be subject to any material liability under ERISA,
the Code or any other law,  regulation or governmental  order  applicable to any
Plan, or under any  agreement,  instrument,  statute,  rule of law or regulation
pursuant  to or under  which the  Company  has  agreed to  indemnify  any person
against  liability  incurred under, or for a violation or failure to satisfy the
requirement  of, any such  statute,  regulation  or order.  The  Company  has no
liability,  whether absolute or contingent,  including any obligations under any
Plan,  with  respect to any  misclassification  of any person as an  independent
contractor rather than as an employee.

(b) The  Company  does not have any  obligations  to  provide  or any  direct or
indirect  liability,  whether  contingent  or  otherwise,  with  respect  to the
provision of health or death  benefits to or in respect of any former  employee,
except  as may be  required  pursuant  to  Section  4980B  of the  Code  and the
corresponding  provisions  of ERISA and the cost of which are fully paid by such
former employees. (c) There are no unfunded obligations under any Plan which are
not fully reflected on the Financial Statements.

<PAGE>

6.15  Investment  Company.  The  Company is not an  "investment  company"  or an
"affiliated  person"  of,  or  "promoter"  or  "principal  underwriter"  for  an
investment company, within the meaning of the Investment Company Act of 1940, as
amended.

6.16 Compliance. The Common Stock is registered pursuant to Section 12(g) of the
Exchange Act, and is listed on the OTC bulletin board, and the Company has taken
no  action  designed  to,  or  likely to have the  effect  of,  terminating  the
registration  of the Common Stock under the Exchange Act or delisting the Common
Stock from the OTC  Bulletin  Board.  The Company has not taken and will not, in
violation  of  applicable  law,  take,  any  action  designed  to or that  might
reasonably be expected to cause or result in unlawful  manipulation of the price
of the Common Stock to facilitate the sale or resale of the Securities.

6.17 Private Offerings.  Assuming the truth of each Purchaser's  representations
and acknowledgments  contained in Section 5 hereof,  neither the Company nor any
Person acting on its behalf (other than the  Purchasers,  as to whom the Company
makes no  representations)  has offered or sold the  Securities  by means of any
general  solicitation or general  advertising  within the meaning of Rule 502(c)
under the  Securities  Act.  The Company has not sold the  Securities  to anyone
other  than  the  subscribers  to  this  Agreement.  Each  Security  shall  bear
substantially the same legend set forth in Section 8 hereof for at least so long
as required by the Securities Act.

6.18  Broker's  or  Finder's  Commissions.  Other than the  Placement  Agent (as
placement agent on behalf of the Company) or any Other  Participating  Agent, no
finder,  broker,  agent,  financial  person or other  intermediary  has acted on
behalf of the  Company  in  connection  with the sale of the  Securities  by the
Company  or the  consummation  of  this  Agreement  or  any of the  transactions
contemplated hereby. The Company has not had any direct or indirect contact with
any other investment banking firm (or similar firm) with respect to the offer of
the Securities by the Company to the Purchasers or the Purchasers' subscriptions
for the Securities.

6.19 Disclosure.  The Transaction  Documents do not contain any untrue statement
of a material fact or omit to state a material  fact  necessary in order to make
the statements  contained herein or therein,  in the light of the  circumstances
under  which they were  made,  not  misleading.  The  Company  does not have any
knowledge of any fact that has specific  application  to the Company (other than
general economic or industry  conditions) and that can reasonably be foreseen to
cause a Material  Adverse Effect that has not been set forth in the  Transaction
Documents or the Commission Documents.

The Company certifies that each of the foregoing  representations and warranties
by the Company  sets forth in this  Section 6 are true as of the date hereof and
shall survive such date as contemplated in Section 7.1.

7. Indemnification.

7.1 The Company  agrees to indemnify  and hold  harmless the  Purchasers,  their
affiliates and each of their respective directors, officers, general and limited
partners, principals, agents and attorneys (individually, an "Indemnified Party"
and  collectively,  the  "Indemnified  Parties")  from and  against  any and all
losses,  claims,  damages,  Liabilities,  costs (including reasonable attorneys'
fees) and expenses  (collectively,  "Losses") to which any Indemnified Party may
become  subject,  insofar as such Losses  arise out of, in any way relate to, or
result from (i) any breach of any representation or warranty made by the Company
contained  in or

<PAGE>

made pursuant to this  Agreement,  or (ii) the failure of the Company to fulfill
any agreement or covenant  contained in or made pursuant to this Agreement.  All
of the  representations  and warranties of the Company made herein shall survive
the execution and delivery of this Agreement  until the date that is ninety (90)
days after the filing by the Company with the  Commission  of audited  financial
statements  of the Company for the fiscal year ending  February 28, 2004 (or, if
such fiscal year changes and no such audited  consolidated  financial statements
are  available,  then the successor  fiscal  year),  except for (a) Sections 6.1
(Organization,  Good  Standing and  Qualification),  6.2  (Capitalization),  6.3
(Corporate Power, Authorization;  Enforceability),  6.18 (Private Offerings) and
6.19 (Broker's or Finder's  Commission),  which  representations  and warranties
shall survive  indefinitely (or if indefinite  survival is not permitted by law,
then for the maximum  period  permitted  by  applicable  law),  (b) Section 6.12
(Taxes),  which  representation  and warranty  shall  survive until the later to
occur  of (i) the  lapse of the  statute  of  limitations  with  respect  to the
assessment  of  any  tax to  which  such  representation  and  warranty  relates
(including any extensions or waivers thereof) and (ii) sixty (60) days after the
final  administrative  or  judicial  determination  of the  Taxes to which  such
representation  and warranty relates,  and no claim with respect to Section 6.12
may be asserted thereafter with the exception of claims arising out of any fact,
circumstance, action or proceeding to which the party asserting such claim shall
have  given  notice  to  the  other  parties  to  this  Agreement  prior  to the
termination  of such  period of  reasonable  belief  that a tax  liability  will
subsequently  arise  therefrom,  and (c) Section 6.11  (Environmental  Matters),
which  representation  and  warranty  shall  survive  until  the  lapse  of  the
applicable  statute  of  limitations.  Except  as set forth  herein,  all of the
covenants,  agreements  and  obligations of the parties hereto shall survive the
Closing  indefinitely  (or if indefinite  survival is not permitted by law, then
for the maximum period permitted by applicable law).

7.2 Promptly after receipt by an  Indemnified  Party under Section 7.1 of notice
of any claim as to which indemnity may be sought, including, without limitation,
the commencement of any action or proceeding,  the Indemnified  Party will, if a
claim in respect thereof may be made against the  indemnifying  party under this
Section,  promptly notify the indemnifying  party in writing of the commencement
thereof;  provided  that the failure of the  Indemnified  Party to so notify the
indemnifying  party will not relieve the indemnifying party from its obligations
under this Section unless, and only to the extent that, such omission results in
the indemnifying  party's  forfeiture of substantive rights or defenses or being
materially  prejudiced by the Indemnified  Person's failure to give such notice.
In case any action or proceeding is brought against any Indemnified  Party,  and
it notifies the indemnifying party of the commencement thereof, the indemnifying
party shall be entitled to assume the defense  thereof at its own expense,  with
counsel satisfactory to such Indemnified Party in its reasonable approval (which
approval will not be withheld or delayed unreasonably);  provided, however, that
any  Indemnified  Party may,  at its own  expense,  retain  separate  counsel to
participate  in  such  defense  at  its  own  expense.  After  notice  from  the
indemnifying  party to the  Indemnified  Party of its  election to so assume the
defense thereof,  the  indemnifying  party will not be Liable to the Indemnified
Party  under  that  Section 7 for any legal or any other  expenses  subsequently
incurred by the Indemnified  Party in connection with the defense thereof (other
than reasonable costs of  investigation)  unless incurred at the written request
of the indemnifying party. Notwithstanding the above, the Indemnified Party will
have the right to employ  counsel of its own choice in any action or  proceeding
(and be  reimbursed  by the  indemnifying  party  for the  reasonable  fees  and
expenses of the counsel and other  reasonable  costs of the  defense) if, in the
written  opinion of such  Indemnified  Party's  counsel,  representation  of the
Indemnified  Party by the counsel  retained by the  indemnifying  party would be
inappropriate  due to actual  or  potential  differing  interests  or  conflicts
between the Indemnified  Party and any other party represented by the counsel in
the  action;  provided,  however,  that  the  indemnifying  party  will  not  in
connection  with any one action or  proceeding  or  separate  but  substantially
similar actions or proceedings arising out of the same general  allegations,  be
Liable for the  reasonable  fees and expenses of more than one separate  firm of

<PAGE>

attorneys  at any time for all  Indemnified  Parties,  except to the extent that
local  counsel,  in  addition  to  regular  counsel,  is  required  in  order to
effectively defend against the action or proceeding.  An indemnifying party will
not be Liable to any  Indemnified  Party for any settlement or entry of judgment
concerning  any  action  or  proceeding  effected  without  the  consent  of the
indemnifying  party,  which  consent  shall not be  unreasonably  withheld.  The
indemnifying party agrees that it will not, without the prior written consent of
the  Indemnified  Party,  settle,  compromise  or  consent  to the  entry of any
judgment in any pending or threatened claim relating to the matters contemplated
hereby  (if any  Indemnified  Party  is a party  thereto  or has  been  actually
threatened to be made a party  thereto)  unless such  settlement,  compromise or
consent  includes an unconditional  release of each  Indemnified  Party from all
liability arising or that may arise out of such claim. The rights accorded to an
Indemnified  Party  hereunder  shall  be in  addition  to any  rights  that  any
Indemnified  Party may have at common law, by separate  agreement or  otherwise;
provided,  however,  that  notwithstanding  the  foregoing  or  anything  to the
contrary  contained  in this  Agreement,  (a)  nothing  in this  Section 7 shall
restrict  or limit  any  rights  that  any  Indemnified  Party  may have to seek
equitable  relief and (b) this Section 7 shall be the sole remedy for any breach
of the Company's  representations  and warranties  contained in Section 6 except
with respect to claims arising out of fraud or willful misconduct.

8. Covenants.
8.1 Use of Proceeds. The Company will use the proceeds from this Offering to pay
indebtedness  to  certain  MAM  Shareholders,  to  make  a  loan  to  Car  Parts
Technologies  Inc, for partial  consideration in the acquisition of Epyx Limited
and for general corporate purposes, provided that in the event that the proceeds
from the sale of the  Securities  and Series A-1  Preferred  Stock are less than
U.S.$6,000,000,  the  Company  does not  presently  intend to  proceed  with the
acquisition of Epyx Limited on the terms contemplated by this Agreement.

8.2 Business Development.  As soon as practicable after the Closing, the Company
shall use commercially reasonable efforts to: (a) create and implement an annual
budget,  approved by the Board,  (b) hire additional  personnel where necessary;
and (c)  obtain  appropriate  product  liability  insurance  to cover  all risks
associated with the Company's  business that are customarily  insured against in
the industry in such amounts as are customary in the industry.

8.3 [intentionally omitted].

8.4 Conduct of the Company's Business. Except as contemplated by this Agreement,
during the period  from the date hereof to the Closing  Date,  the Company  will
conduct its business and  operations  solely in the ordinary  course of business
consistent  with past  practice and use  reasonable  commercial  efforts to keep
available  the services of its officers and  employees  and preserve its current
relationships with customers,  suppliers, licensors, creditors and others having
business dealings with it.

8.5  Reasonable  Best  Efforts.  Subject  to the  terms and  conditions  of this
Agreement,  each of the parties hereto will use its  reasonable  best efforts to
take,  or cause to be taken,  all actions,  and to do, or cause to be done,  all
things  necessary,  proper or advisable under applicable laws and regulations to
consummate  the  transactions  contemplated  by this  Agreement  at the earliest
practicable date.

8.7 Tax Matters.

(a) The Company covenants that it will use commercially  reasonable  efforts not
to become a USRPHC at any time while any Purchaser  owns any of the  Securities.
(c) In the event  that a  Purchaser  desires  to sell or  dispose  of any of the
Securities or Conversion  Stock as permitted under this Agreement and applicable
law, and upon demand by such  Purchaser,  the Company  agrees to deliver to such
Purchaser a letter (the "Letter")  which complies with Sections  1.1445- 2(c)(3)
and 1.897-2(h) of the Treasury Regulations, addressed to such Purchaser, stating
whether or not the Company is a USRPHC.  The Letter  shall be  delivered  to the
Purchaser one business day prior to the close of any sale or  disposition of the
Securities  or Conversion  Stock by the Purchaser  (the  "Delivery  Date").  The
Letter shall be dated as of the Delivery Date and signed by a corporate  officer
who must verify under  penalties of perjury that the statement is correct to his
knowledge and belief pursuant to Section 1.897-2(h) of the Treasury Regulations.

<PAGE>

9. FOR RESIDENTS OF ALL STATES:  NEITHER THE  SECURITIES  OFFERED  HEREBY OR THE
SECURITIES  INTO WHICH SUCH  SECURITIES  MAY BE CONVERTED  HAVE BEEN  REGISTERED
UNDER THE  SECURITIES  ACT OF 1933, AS AMENDED,  OR THE  SECURITIES  LAWS OF ANY
STATE  AND ARE  BEING  OFFERED  AND  SOLD IN  RELIANCE  ON  EXEMPTIONS  FROM THE
REGISTRATION REQUIREMENTS OF SAID ACT AND SUCH LAWS.

THE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY
NOT BE  TRANSFERRED  OR RESOLD EXCEPT AS PERMITTED  UNDER SAID ACT AND SUCH LAWS
PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.  INVESTORS SHOULD BE AWARE THAT
THEY WILL BE  REQUIRED TO BEAR THE  FINANCIAL  RISKS OF THIS  INVESTMENT  FOR AN
INDEFINITE PERIOD OF TIME.

10. No Waiver.
Notwithstanding  any  of the  representations,  warranties,  acknowledgments  or
agreements  made herein by the  Purchasers,  the Purchasers do not thereby or in
any manner waive any rights  granted to the  Purchasers  under  federal or state
securities laws.

11. Miscellaneous.

11.1 Notices.  Any notice or other  communication  given  hereunder by any party
hereto to any other party hereto shall be in writing and delivered personally or
by facsimile  transmission  or sent by  registered  or certified  mail or by any
express mail or overnight courier service, postage or fees prepaid:

If to the Company:
Auto Data Network, Inc.
509 Madison Avenue
Suite 404
New York, New York 10022
Attention: Christopher R. Glover, CEO.- 19 -
Telephone: (212) 561-1837
Facsimile: (212) 937-4675

If to the Purchasers:
To each Purchaser at such Purchaser's name and address set forth on the
signature page to this Agreement.  Any notice that is delivered personally or by
facsimile  transmission  in the manner  provided  herein shall be deemed to have
been duly given to the party to whom it is directed upon actual  receipt by such
party or its agent.  Any notice that is addressed

<PAGE>

and  mailed  or  sent  by  courier  in  the  manner  herein  provided  shall  be
conclusively  presumed  to have  been  duly  given  to the  party to which it is
addressed at the close of business,  local time of the recipient,  on the fourth
business day after the day it is so placed in the mail or, if earlier,  the time
of actual receipt.

11.2  Successors  and Assigns.  This Agreement will be binding upon and inure to
the  benefit  of  the  parties  hereto  and to  their  respective  heirs,  legal
representatives, successors and assigns, provided, that no party may assign this
Agreement without the prior written consent of the other party, such consent not
to be unreasonably withheld; provided, further, that a Purchaser may assign this
Agreement  to its  affiliates  without  consent;  provided  that any transfer of
Securities  or shares of Common  Stock  underlying  such  Securities  must be in
compliance with the Transaction Documents and all applicable law.

11.3  Entire  Agreement.  This  Agreement  sets forth the entire  agreement  and
understanding  among the parties as to the subject  matter hereof and merges and
supersedes all prior discussions, agreements and understandings of any and every
nature  among them;  provided  that any  confidentiality  agreement  between the
Company and any Purchaser shall remain in effect.  This Agreement may be amended
only by mutual  written  agreement  of the Company and a majority in interest of
the Purchasers, and the Company may take any action herein prohibited or omit to
take any action  herein  required to be  performed  by it, and any breach of any
covenant,  agreement,  warranty  or  representation  may be waived,  only if the
Company has obtained the written consent or waiver of the Purchasers  purchasing
a majority of the Securities offered hereby.

11.4  Governing  Law.  This  Agreement  shall be  governed by and  construed  in
accordance with the laws of the State of New York with respect to contracts made
and to be fully  performed  therein,  without  regard to the  conflicts  of laws
principles thereof.  The parties hereto hereby agree that any suit or proceeding
arising under this  Agreement,  or in connection  with the  consummation  of the
transactions  contemplated hereby, shall be brought solely in a federal or state
court  located in the County of New York and State of New York. By its execution
hereof,  both the  Company and the  Purchasers  hereby  consent and  irrevocably
submit to the in personam  jurisdiction  of the federal and state courts located
in the  County of New York and State of New York and agree  that any  process in
any suit or  proceeding  commenced  in such courts under this  Agreement  may be
served upon it  personally or by certified or registered  mail,  return  receipt
requested,  or by Federal Express or other courier service,  with the same force
and effect as if personally  served upon the applicable party in New York and in
the city or county in which such other court is located. The parties hereto each
waive any claim that any such  jurisdiction  is not a  convenient  forum for any
such suit or proceeding and any defense of lack of in personam jurisdiction with
respect thereto.

11.5 Severability.  The holding of any provision of this Agreement to be invalid
or unenforceable by a court of competent  jurisdiction will not affect any other
provision of this Agreement,  which will remain in full force and effect. If any
provision of this Agreement is declared by a court of competent  jurisdiction to
be invalid,  illegal or  incapable  of being  enforced in whole or in part,  the
provision will be interpreted so as to remain  enforceable to the maximum extent
permissible  consistent  with  applicable  law and the remaining  conditions and
provisions or portions thereof will nevertheless remain in full force and effect
and  enforceable  to the extent they are valid,  legal and  enforceable,  and no
provisions will be deemed  dependent upon any other covenant or provision unless
so expressed herein.

11.6 No Waiver.  A waiver by either  party of a breach of any  provision of this
Agreement  will not  operate,  or be  construed,  as a waiver of any  subsequent
breach by that same party.

<PAGE>

11.7 Further  Assurances.  The parties  agree to execute and deliver all further
documents,  agreements  and  instruments  and  take  further  action  as  may be
necessary or appropriate to carry out the purposes and intent of this Agreement.

11.8  Counterparts.  This Agreement may be executed in two or more counterparts,
each of  which  will be  deemed  an  original,  but all of which  will  together
constitute the same instrument.

11.9 No Third  Party  Beneficiaries.  Nothing in this  Agreement  creates in any
Person not a party to this  Agreement  any legal or equitable  right,  remedy or
claim under this Agreement,  and this Agreement is for the exclusive  benefit of
the parties hereto.  The parties expressly  recognize that this Agreement is not
intended to create a  partnership,  joint venture or other  similar  arrangement
between any of the parties or their respective affiliates.

11.10  Headings.  The headings in this  Agreement are solely for  convenience of
reference and shall be given no effect in the construction or  interpretation of
this Agreement.

11.11  Publicity   Restrictions.   Except  as  may  be  required  by  applicable
Requirements of Law, none of the parties hereto shall issue a publicity  release
or  public  announcement  or  otherwise  make  any  disclosure  concerning  this
Agreement,  the transactions  contemplated  hereby without prior approval by the
other party hereto;  provided that each  Purchaser may disclose on its worldwide
web pages and its offering materials,  if any, the name of the Company, the name
of the Chief  Executive  Officer  of the  Company,  a brief  description  of the
business  of  the  Company  consistent  with  the  Commission  Documents  or the
Company's press releases or other public statements,  the Company's logo and the
aggregate  amount  of  such  Purchaser's  investment  in  the  Company.  If  any
announcement  is  required  by  applicable  law or the  rules of any  securities
exchange or market on which such shares of Common Stock are traded to be made by
any party hereto,  prior to making such  announcement  such party will deliver a
draft of such announcement to the other parties and shall give the other parties
reasonable  opportunity to comment  thereon.  The parties agree to attribute and
otherwise indicate ownership of the other party's trademarks and logos.

11.12 Certification.  Each Purchaser certifies that such Purchaser has read this
entire  Agreement and that every statement on such Purchaser's part made and set
forth herein is true and complete.

[Remainder of page intentionally left blank.]

IN WITNESS  WHEREOF,  the  undersigned  has executed  this  Securities  Purchase
Agreement on the date his signature has been subscribed and sworn to below.

The shares of Series A-2 Preferred Stock and the common stock purchase  warrants
are to be issued in:

Print Name of Investor
____ individual name

shares of Series A-2 Preferred

Stock subscribed for
____ tenants in the entirety

Subscription price paid herewith:

<PAGE>

$ (being  $2.50 x the  number of shares of Series  A-2  Preferred  Stock  listed
above)

____ corporation (an officer must sign) Print Name of Joint Investor
(if applicable)

____ partnership (all general partners must sign) Signature of Investor

____ trust Signature of Joint Investor

____ limited liability company

(with a copy to:)

Address of Investor

Accepted  as of the ___ day of  ______,  2003 as to  _______________  shares  of
Series A-2 Preferred Stock;

Subscription price accepted being  $______________,  being $2.50 x the number of
shares of Series A-2 Preferred Stock as to which this Subscription is accepted:

AUTO DATA NETWORK, INC.

By: ___________________________________________

Name:

Title:.xxii

[Insert Purchaser Questionnaire].iv

Exhibit A

Form of Certificate of Designations.v

Exhibit B

Form of Registration Rights Agreement.vi

Exhibit C to Form of Securities Purchase Agreement

Matters to be Covered in Legal Opinion of Company's Counsel

1. The Company is a corporation duly incorporated,  validly existing and in good
standing under the laws of the State of Delaware.

<PAGE>

2. The Company  has all  necessary  corporate  power and  authority  to execute,
deliver,  enter into and perform its  obligations  under each of the Transaction
Documents and to consummate the transactions  contemplated  thereby,  including,
without limitation,  to issue, sell and deliver the Series A Preferred Stock and
the shares of Common Stock  issuable upon  conversion  thereof.  The  execution,
delivery and  performance  of each of the  Transaction  Documents  has been duly
authorized by all necessary corporate action on the part of the Company.

3. The  Transaction  Documents  have been duly  executed  and  delivered  by the
Company and  constitute a legal,  valid and binding  obligation  of the Company,
enforceable against the Company in accordance with its terms, subject to laws of
general application relating to bankruptcy, insolvency and the relief of debtors
and rules of law  governing  specific  performance,  injunctive  relief or other
equitable remedies, and to limitations of public policy.

4. The Securities and the shares of Common Stock into which they are convertible
have been duly  authorized  and, when issued in accordance  with the  Securities
Purchase  Agreement or the Certificate of Designations,  as applicable,  will be
validly issued,  fully paid and  nonassessable and will be free and clear of all
Liens imposed by or through the Company other than  restrictions  imposed by the
Securities Purchase Agreement,  the Certificate of Designations,  and applicable
securities  laws. No statutory or, to our actual knowledge based solely upon the
representations  and warranties of the Company in the Transaction  Documents and
upon an  officers'  certificate  from an  officer  of the  Company,  contractual
preemptive or other rights to subscribe for or purchase equity securities of the
Company  exists with respect to the issuance and sale of the  Securities  by the
Company pursuant to the Transaction Documents.

5. The execution and delivery by the Company of the Transaction Documents do not
and the  consummation  of the  transactions  contemplated  thereby  will not (A)
violate any  provision of the  Certificate  of  Incorporation  or By-laws of the
Company,  (B) violate any law, statute,  rule,  regulation,  order,  judgment or
decree  of any court or  Governmental  Authority  which,  to our  knowledge,  is
applicable to the Company,  or (C) to our actual knowledge based solely upon the
representations  and warranties of the Company in the Transaction  Documents and
upon an  officers'  certificate  from  an  officer  of the  Company,  breach  or
constitute  (with  due  notice or lapse of time or both) a  default  under,  any
material agreement to which the Company is a party or by which it is bound or to
which any of its properties or assets is subject,  nor result in the creation or
imposition of any Lien, other than Permitted  Liens,  upon any of the properties
or assets of the  Company,  except for, in the case of clauses (B) and (C),  any
violation, breach or default which would not have a Material Adverse Effect.

6.  Except  for  filings,   authorizations  or  approvals  contemplated  by  the
Securities Purchase Agreement, no authorizations or approvals of, and no filings
with,  any  Governmental  Authority are necessary or required by the Company for
the execution and delivery of the Transaction  Documents or the  consummation of
the transactions contemplated thereby..vii

7.  The  Company  is not an  "investment  company"  within  the  meaning  of the
Investment Company Act of 1940, as amended.

8. Assuming the accuracy of the representations and warranties of the Purchasers
in the Securities  Purchase  Agreement,  the offer and sale of the Securities is
exempt from the  registration  requirements  of the  Securities  Act of 1933, as
amended,  pursuant to Section  4(2) and/or  Rule 506 under  Regulation  D of the
Securities Act. The opinion will set forth the Firm's customary  assumptions and
qualifications. The opinion will only be given as to matters of New York law and
U.S.  federal law, and Delaware General  Corporation  law. For clarity,  we note
that the  Company  is a  corporation  organized  under  the laws of the State of
Delaware but its principal business operations are in Europe and in States other
than New York and Delaware, and its subsidiaries are organized under the laws of
other jurisdictions, and we will not opine on such laws.<PAGE>
                                  Exhibit 10.21

                                     FORM OF
                          REGISTRATION RIGHTS AGREEMENT

Registration Rights Agreement, dated as of July 18, 2003 (this "Agreement"),  by
and among Auto Data Network,  Inc., a Delaware corporation (the "Company"),  and
the Purchasers (as defined below).

W I T N E S S E T H :

WHEREAS, the Company is offering (the "Offering") an aggregate of up to
[______________________________]  of shares of its Series A-2  Preferred  Stock,
par value $.001 per share (the "Series A-2 Preferred  Stock"),  exercisable  for
shares of Common Stock (the "Securities");

WHEREAS, the Company desires to issue and sell to the persons listed on Schedule
A, attached hereto (each a "Purchaser," and collectively, the "Purchasers"), the
Securities as set forth in one or more Securities  Purchase  Agreements  entered
into or to be entered  into by and between the Company and each  Purchaser  (the
"Securities Purchase Agreement");

WHEREAS, the Company and the Purchasers have entered or will have entered into a
Securities Purchase Agreement;

WHEREAS,  it is a condition  precedent to the  consummation of the  transactions
contemplated by the Securities  Purchase  Agreement that the Company provide for
the rights set forth in this Agreement; and

WHEREAS, certain terms used in this Agreement are defined in Section 3 hereof.

NOW, THEREFORE, in consideration of the foregoing premises and the mutual
covenants and agreements hereinafter contained,  and for other good and valuable
consideration,  the receipt and  sufficiency  of which are hereby  acknowledged,
intending to be legally bound, the parties hereto hereby agree as follows:

1. Registration Rights.

1.1 Required Registration.  The Company shall use its reasonable best efforts to
prepare and file with the SEC within one hundred twenty (120) days following the
Initial  Closing  Date (as  such  term is  defined  in the  Securities  Purchase
Agreement) or the termination of

<PAGE>

the  Offering,  if no final  Closing (as such term is defined in the  Securities
Purchase  Agreement)  is held, as the case may be, a  registration  statement on
Form SB-1 or  successor  form or another  form  selected by the Company  that is
available to it under the  Securities  Act which  conforms  with all  applicable
rules and regulations  (the "Required  Registration  Statement") with respect to
all the Registerable  Securities  beneficially owned by the Purchasers following
the final Closing (as such term is defined in the Securities Purchase Agreement)
to  permit  the  offer  and  re-sale  from  time to  time  of such  Registerable
Securities  in  accordance  with the  methods of  distribution  provided  by the
Purchasers.  The  Company  shall use its  reasonable  best  efforts to cause the
Required  Registration  Statement to become  effective as promptly as reasonably
practicable  thereafter,  and in any event no later than December 31, 2003.  The
Company shall use its reasonable best efforts to keep such Required Registration
Statement  continuously  effective (the "Effective  Period") for a period of one
year after the Required  Registration  Statement  first becomes  effective  plus
whatever period of time as shall equal any period,  if any, during such one year
period in which the  Company  was not current  with its  reporting  requirements
under the Exchange Act. To the extent that the  Registerable  Securities are not
sold under the Required  Registration  Statement,  the Purchasers shall have the
registration rights as enumerated in Sections 1.2, 1.3 and 1.4.

1.2 Demand Registrations.

         (a)      Requests  for  Registration.  Subject to  Sections  1.2(b) and
                  1.2(e)  below,  the  Purchasers  holding  at least  33% of the
                  Registrable  Securities (the "Initiating  Holders") may at any
                  time after the completion of the Effective  Period,  or if the
                  Required  Registration  Statement  has not been  effective for
                  more than ninety (90) days  immediately  preceding any request
                  under this  Section  1.2(a),  request  registration  under the
                  Securities Act of all or part of their Registrable  Securities
                  on Form S-1, Form S-2 or any successor  form of  registration,
                  or,  if  available,  on  Form  S-3 or any  successor  form  of
                  registration;  provided that the Initiating  Holders (together
                  with  all  other  holders  of  Registrable  Securities  to  be
                  included  in such  registration)  propose to sell  Registrable
                  Securities  to the public of the  greater of (i) an  aggregate
                  price   (calculated   based  upon  the  Market  Price  of  the
                  Registrable   Securities   on  the  date  of   filing  of  the
                  Registration   Statement  with  respect  to  such  Registrable
                  Securities) to the public of at least  $1,000,000,  or (ii) at
                  least 25% of the then outstanding  Registrable  Securities or,
                  if less than (i) or (ii), then (iii) the remaining Registrable
                  Securities.  Each such registration  request shall specify the
                  number of  Registrable  Securities  requested to be registered
                  and if the offering is to be an underwritten offering.  Within
                  ten (10) days after receipt of any such  request,  the Company
                  will give written notice of such requested registration to all
                  other holders of Registrable  Securities  and,  subject to the
                  provisions  hereof,  will  include  in such  registration  all
                  Registrable  Securities  with respect to which the Company has
                  received written requests for inclusion therein within fifteen
                  (15) days after the holder's receipt of the Company's  notice.
                  A registration  requested  pursuant to this Section 1.2(a) are
                  referred to herein as a "Demand  Registration."  (b) Number of
                  Registrations.  The Purchasers and their permitted transferees
                  are entitled to request two (2) Demand  Registrations,  in the
                  aggregate;  provided that if the Company is eligible to file a
                  registration  statement

<PAGE>

         on  Form  S-3,  then  the  Initiating   Holders  shall  not  request  a
         registration  on Form S-1. The Company  shall use its  reasonable  best
         efforts  to cause any such  Demand  Registration  to  become  effective
         promptly,  and in any event no later than one hundred  (100) days after
         it receives a request under Section 1.2(a) hereof; provided,

that such one  hundred  (100) day period  shall be reduced to sixty (60) days if
the Company is filing a Registration  Statement on Form S-3.  Except as provided
in  Section  1.2(c)  below,  a  registration   shall  not  constitute  a  Demand
Registration  until it has become effective and remains  continuously  effective
for the  lesser  of (i) the  period  during  which  all  Registrable  Securities
registered  in the  Demand  Registration  are sold and (ii) 105 days;  provided,
however,  that a registration shall not constitute a Demand  Registration if (x)
after such Demand  Registration has become  effective,  such registration or the
related offer,  sale or  distribution  of Registrable  Securities  thereunder is
interfered  with by any stop order,  injunction or other order or requirement of
the SEC or other governmental agency or court for any reason not attributable to
the Initiating Holders and such interference is not thereafter eliminated or (y)
the conditions specified in the underwriting  agreement, if any, entered into in
connection with such Demand Registration are not satisfied or waived, other than
by reason of a failure by the Initiating Holders.

(c)  Withdrawal.  If a holder  of  Registrable  Securities  (each a  "Designated
Holder" and collectively,  the "Designated Holders") sends the Company a written
request for  inclusion of part or all of such  Designated  Holder's  Registrable
Securities in a registration,  such  Designated  Holder shall not be entitled to
withdraw or revoke such request without the prior written consent of the Company
unless  the  Designated  Holders  reimburse  the  Company  for the  registration
expenses set forth in Section  1.6(s) with respect to such Demand  Registration.
If the  Designated  Holders fail to reimburse the Company for such  registration
expenses,  including,  but not limited to legal and accounting expenses,  within
thirty (30) days of receipt of notice of such registration  expenses,  then such
request  shall  constitute  a Demand  Registration,  unless such  withdrawal  or
revocation was due to a material adverse change to the Company.  (d) Priority in
Demand  Registrations.  If a Demand Registration is an underwritten offering and
the managing  underwriters  advise the Company in writing that in their  opinion
the  number  of  Registrable  Securities  and,  if  permitted  hereunder,  other
securities  requested  to be  included in such  offering,  exceeds the number of
Registrable  Securities and other securities,  if any, which can be sold therein
without  materially and adversely  affecting the  marketability  of the offering
(the "Offering  Quantity"),  then the Company will include in such  registration
securities in the following priority:

(i)      First,  for a demand made by the Initiating  Holders,  all  Registrable
         Securities owned by the Initiating  Holders and the number of shares to
         be offered for the account of all other Designated  Holders,  pro rata,
         based on the amount of Registrable  Securities held by each such holder
         and the amount of Registrable  Securities held by all such holders,  on
         an as converted basis. To the extent more than 22.5% of the Registrable
         Securities, so requested to be registered by the Initiating Holders and
         the other  Designated  Holders are excluded from an offering under this
         Section 1.2(d) (a "Reload  Event"),  then the Designated  Holders shall
         have the right to one additional Demand Registration under, and subject
         to the

<PAGE>

         limitations  of,  Section 3.1 upon the  occurrence of each Reload Event
         (but in no event shall the number of Demand  Registrations  pursuant to
         this  Agreement  exceed a total of three  Demand  Registrations).  (ii)
         Second,  the  number of shares to be  offered  for the  account  of the
         Company.  (iii) Third,  to the extent (and only to the extent) that the
         Offering Quantity exceeds the aggregate amount of securities to be sold
         in clauses (i) and (ii), the Company will include in such  registration
         any other  Registrable  Securities  requested  to be  included  in such
         offering, and if the number of such other holders' securities requested
         to be included  exceeds the Offering  Quantity,  then the Company shall
         include  only  each  such  requesting  holder's  pro rata  share of the
         Offering  Quantity,  based on the  amount  of  securities  held by such
         holder,  on an as  converted  basis;  provided,  that no  shares  under
         clauses (ii) and (iii) shall be included on the  holder's  first Demand
         Registration on Form S-3.

(e) Restrictions on Demand  Registrations.  The Company will not be obligated to
effect any Demand  Registration  within 120 days after the  effective  date of a
previous Demand  Registration or other registration of securities of the Company
(other  than a shelf  registration  under  Rule 415 of the  Securities  Act or a
Registration  Statement on Form S-8) for the account of the  Initiating  Holders
(so long as at least  two-thirds of the Registrable  Securities  requested to be
included in such  registration  by the Initiating  Holders were included) or any
other  Designated  Holder (so long as they had the opportunity to participate in
such  registration  and  at  least  two-thirds  of  the  Registrable  Securities
requested to be included in such  registration  by the  Designated  Holders were
included).  Such 120-day  period shall be reduced to seventy five (75) days,  if
less than  two-thirds of the Registrable  Securities  requested to be registered
are  included  in such  registration.  In  addition,  the  Company  will  not be
obligated  to effect more than one Demand  Registration  within a nine (9) month
period.

(f) Selection of Underwriters.  In connection with a Demand Registration that is
an underwritten offering, at the request of the Initiating Holders or otherwise,
the Company  shall select a  nationally  recognized  investment  banking firm to
administer  the  offering,  such  selection to be subject to the approval of the
Initiating Holders which approval shall not be unreasonably withheld.

1.3 Form S-3 Registration. If the Company is eligible to use Form S-3 under
the  Securities  Act (or any similar  successor  form) and shall  receive from a
Purchaser and its permitted transferees (the "S-3 Initiating Holders") a written
request or requests  that the Company  effect a  registration  on such Form S-3,
including without limitation, pursuant to Rule 415 of the Securities Act and any
related  qualification  or  compliance  with  respect  to  all  or  part  of the
Registrable  Securities  owned by the S-3  Initiating  Holders and its permitted
transferees (provided,  that the S-3 Initiating Holders registering  Registrable
Securities in such registration  (together with all other holders of Registrable
Securities  to  be  included  in  such  registration)   propose  to  sell  their
Registrable  Securities at an aggregate price  (calculated based upon the Market
Price of the  Registrable  Securities on the date of filing of the Form S-3 with
respect  to  such  Registrable  Securities)  to  the  public  of  no  less  than
$1,000,000),  the Company shall (i) promptly give

<PAGE>

written notice of the proposed  registration,  and any related  qualification or
compliance, to all other holders of Registrable Securities;  and (ii) as soon as
practicable,  use reasonable  best efforts to file and effect such  registration
and all such  qualifications and compliances as may be so requested and as would
permit or  facilitate  the sale and  distribution  of all or such portion of the
Registrable  Securities as are  specified in such request,  together with all or
such portion of the  Registrable  Securities of any other holder in the group of
holders  joining in such  request as is  specified  in a written  request  given
within fifteen (15) days after the holder's  receipt of such written notice from
the Company. No registration requested by any S-3 Initiating Holders pursuant to
this Section 1.3 shall be deemed a registration pursuant to Sections 1.1 or 1.2.

1.4 Piggyback Registrations.

(a) Right to  Piggyback.  Whenever  the Company  proposes to register any of its
securities   under  the   Securities  Act  (other  than  pursuant  to  a  Demand
Registration,  a registration  pursuant to Section 1.3 or a registration on Form
S-4 or S-8 or any successor or similar  forms) and the  registration  form to be
used may be used for the registration of Registrable Securities,  whether or not
for sale for its own account,  the Company will give prompt  written notice (but
in no event less than twenty five (25) days before the anticipated  filing date)
to all holders of  Registrable  Securities,  and such notice shall  describe the
proposed  registration  and distribution and offer to all holders of Registrable
Securities the  opportunity to register the number of Registrable  Securities as
each such holder may request.  The Company will include in such registration all
Registrable  Securities  with respect to which the Company has received  written
requests  for  inclusion  therein  within  fifteen  (15) days after the holders'
receipt of the Company's notice (a "Piggyback Registration").

(b) Reasonable Efforts. The Company shall use all reasonable best efforts to
cause the  managing  underwriter  or  underwriters  of a  proposed  underwritten
offering  to permit the  Registrable  Securities  requested  to be included in a
Piggyback  Registration  to be included on the same terms and  conditions as any
similar  securities of the Company or any other security holder included therein
and to permit the sale or other  disposition of such  Registrable  Securities in
accordance with the intended method of distribution thereof.

(c)  Withdrawal.  Any  Designated  Holder  shall have the right to withdraw  its
request  for  inclusion  of  its  Registrable  Securities  in  any  Registration
Statement  pursuant to this Section 1.4 by giving  written notice to the Company
of its  request  to  withdraw;  provided,  that in the event of such  withdrawal
(other than pursuant to Section 1.4(f) hereof, the Company shall not be required
to reimburse such holder for the fees and expenses referred to in Section 1.6(s)
hereof incurred by such holder prior to such withdrawal,  unless such withdrawal
was due to a material adverse change to the Company.  The Company may withdraw a
Piggyback Registration at any time prior to the time it becomes effective.

<PAGE>

(d) Priority in  Registrations.  If a Piggyback  Registration is an underwritten
primary  registration  on behalf of the Company,  and the managing  underwriters
advise  the  Company in writing  (with a copy to each  party  hereto  requesting
registration  of  Registrable  Securities)  that in their  opinion the number of
Registrable  Securities  requested  to be included on a secondary  basis in such
registration  exceeds  the  number  which can be sold in such  offering  without
materially  and  adversely  affecting  the  marketability  of  such  primary  or
secondary  offering (the  "Company  Offering  Quantity"),  then the Company will
include in such registration securities in the following priority:

(i) First, the Company will include the securities the Company roposes to sell.
(ii) Second, the Company will include all Registrable  Securities equested to be
included by any Designated Holder, and if the number of such Designated holders'
securities requested to be included exceeds the Company Offering Quantity,  then
the Company shall include only each such requesting Designated Holders' pro rata
share of the shares  available for  registration by the Purchaser,  based on the
amount of ecurities held by such holder, on an as converted basis.
(e) Cutback.  If, as a result of the  proration  provisions of this Section 1.4,
any  designated  Holders  shall  not be  entitled  to  include  all  Registrable
Securities  in  a  Piggyback  registration  that  such  Designated  Holders  has
requested  to be  included,  such  holder may elect to  withdraw  his request to
include  Registrable  Securities in such  registration  but the Company shall be
required  to  reimburse  such  holder for the fees and  expenses  referred to in
Section 1.7(b) hereof incurred by such holder prior to such withdrawal.

1.5 Holdback Agreements.
(a) To the extent not inconsistent with applicable law, upon the request of the
Company or, in the case of an underwritten  public  offering,  the  underwriters
managing such underwritten offering of the Company's securities,  each holder of
Registrable  Securities who owns at least 5% of the outstanding capital stock of
the  Company on an  "as-converted"  basis or is an officer  or  director  of the
Company  will not effect  any  public  sale or  distribution  (other  than those
included  in  the  registration)  of  any  securities  of  the  Company,  or any
securities,  options or rights  convertible  into or exchangeable or exercisable
for such  securities  during the fourteen days prior to and the ninety (90) -day
period beginning on such effective date,  unless (in the case of an underwritten
public offering) the managing  underwriters  otherwise agree to a shorter period
of time.  Notwithstanding the foregoing,  no Designated Holder shall be required
to enter into any such "lock up" agreement unless and until all of the Company's
executive  officers and directors execute identical "lock up" agreements and the
Company uses commercially  reasonable  efforts to cause each holder of more than
5% of its outstanding  capital stock to execute  identical "lock up" agreements.
Neither the Company nor the underwriter shall amend,  terminate or waive a "lock
up" agreement  unless each "lock up" agreement with a Designated  Holder is also
amended or waived in a similar manner or terminated, as the case may be.

(b) The Company shall have the right at any time to require that the  Designated
Holders of Registrable  Securities  suspend further open market offers and sales
of Registrable  Securities pursuant to a Registration  Statement filed hereunder
whenever  in the  reasonable  judgment of the Company  after  consultation  with
counsel there is or may be in existence a Changing  Event (as defined in Section
1.6(e)).  The  Company  will  give the  Designated  Holders  notice  of any such
suspension  and will use all  reasonable  best efforts to minimize the length of
such suspension.

<PAGE>

(c) The Company agrees not to effect any public sale or distribution of any of
its  securities,   or  any  securities   convertible  into  or  exchangeable  or
exercisable for such securities (except pursuant to registrations on Form S-4 or
S-8 or any successor thereto), during the period beginning on the effective date
of any  Registration  Statement in which the  Designated  Holders of Registrable
Securities are  participating and ending on the earlier of (i) the date on which
all Registrable  Securities  registered on such Registration  Statement are sold
and (ii)  forty  five (45) days after the  effective  date of such  Registration
Statement (except securities covered by such Registration Statement).

1.6 Registration Procedures. Whenever any Registrable Securities are required to
be registered  pursuant to this Agreement,  the Company will use reasonable best
efforts to effect the registration  and the sale of such Registrable  Securities
in accordance  with the intended  methods of disposition  thereof,  and pursuant
thereto the Company will as expeditiously as possible:

(a) prepare and file with the SEC on any form, if not so otherwise provided
for, for which the Company  qualifies,  as soon as practicable  after the end of
the period within which requests for registration may be given to the Company, a
Registration  Statement  with respect to the offer and sale of such  Registrable
Securities and thereafter use reasonable best efforts to cause such Registration
Statement to become  effective and remain  effective until the completion of the
distribution  contemplated  thereby  or the  required  time  period  under  this
Agreement,  whichever is shorter (and before filing such Registration Statement,
the Company will furnish to the counsel selected by the holders of a majority of
the Registrable  Securities initiating such Registration Statement copies of all
such documents proposed to be filed);  provided,  however,  that the Company may
postpone for not more than sixty (60) calendar days the filing or  effectiveness
of a Demand Registration Statement if the Board of Directors,  in its good faith
judgment, determines that such registration could reasonably be expected to have
a material adverse effect on the Company and its stockholders including, but not
limited to, any proposal or plan by the Company to engage in any  acquisition of
assets  (other  than  in  the  ordinary  course  of  business)  or  any  merger,
consolidation,  tender offer or similar transaction then under consideration (in
which event, the Designated  Holders shall be entitled to withdraw such request,
and if such request is withdrawn  such  registration  will not count as a Demand
Registration)  by  delivering  written  notice  to the  Designated  Holders  who
requested inclusion of Registrable  Securities in such Registration Statement of
its determination to postpone such Registration  Statement;  provided,  further,
that (i) the Company  shall not  disclose any  information  that could be deemed
material non-public information to any holder of Registrable Securities included
in a  Registration  Statement that is subject to such  postponement,  (ii) in no
event may the Company postpone a filing  requested  hereunder more than twice in
any twelve (12) month period;  provided,  that any two postponements  must be at
least three (3) months apart;  provided,  further,  that the Company shall delay
the  effectiveness  of any Demand  Registration  Statement  if the SEC rules and

<PAGE>

regulations  prohibit  the  Company  from  declaring  a  Registration  Statement
effective  because its financial  statements are stale at a time when its fiscal
year has ended or it has made an acquisition reportable under Item 2 of Form 8-K
or any other  similar  situation  until the earliest time in which the SEC would
allow the Company to declare a Registration  Statement  effective (provided that
the Company shall use its reasonable  best efforts to cure any such situation as
soon as possible so that the Registration Statement can be made effective at the
earliest  possible time);  (b) prepare and file with the SEC such amendments and
supplements to such Registration Statement and the prospectus used in connection
therewith as may be necessary to keep such Registration  Statement effective for
a period  provided for in the applicable  Section above,  or if not so provided,
for a period of  twelve  (12) (for a  registration  pursuant  to Rule 415 of the
Securities Act) or, if such  Registration  Statement  relates to an underwritten
offering,  such  period as in the  opinion of  counsel  for the  underwriters  a
prospectus  is  required  by law to be  delivered  in  connection  with sales of
Registrable  Securities by an  underwriter or dealer or (ii) such shorter period
as will  terminate  when  all of the  securities  covered  by such  Registration
Statement  have been  disposed of in  accordance  with the  intended  methods of
disposition  by the seller or  sellers  thereof  set forth in such  Registration
Statement  (but in any event not before  the  expiration  of any  longer  period
required  under the  Securities  Act),  and to comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by such
Registration  Statement  until  such  time as all of such  securities  have been
disposed of in accordance with the intended methods of disposition by the seller
or sellers thereof set forth in such  Registration  Statement.  In the event the
Company shall give any notice  pursuant to Section  1.5(b),  the applicable time
period mentioned in this Section 1.6(b) during which a Registration Statement is
to remain  effective  shall be  extended by the number of days during the period
from and  including  the date of the giving of such  notice  pursuant to Section
1.5(b) to and  including  the date when each  seller of a  Registrable  Security
covered by such  Registration  Statement  shall have  received the copies of the
supplemented or amended  prospectus  contemplated by Section 1.6(e); (c) furnish
to each  seller  of  Registrable  Securities,  prior to  filing  a  Registration
Statement,  such number of copies of such Registration Statement, each amendment
and supplement thereto,  the prospectus included in such Registration  Statement
(including each preliminary  prospectus) and such other documents as such seller
may reasonably request in order to facilitate the disposition of the Registrable
Securities  owned by such  seller;  (d)  register  or qualify  such  Registrable
Securities under such other securities or blue sky laws of such jurisdictions as
any seller  reasonably  requests  and do any and all other acts and things which
may be reasonably necessary or advisable to enable such seller to consummate the
disposition in such  jurisdictions  of the Registrable  Securities owned by such
seller  and to keep  each  such  registration  or  qualification  (or  exemption
therefrom)  effective  during the period  which the  Registration  Statement  is
required to be kept effective  (provided,  that the Company will not be required
to (i) qualify  generally to do business in any jurisdiction  where it would not
otherwise be required to qualify but for this subparagraph,  (ii) subject itself
to  taxation in any such  jurisdiction  or (iii)  consent to general  service of
process in any such  jurisdiction);  (e) notify each seller of such  Registrable
Securities,  at any time when a  prospectus  relating  thereto is required to be
delivered  under the Securities  Act, of the happening of any event (a "Changing
Event") as a result of which,  the  prospectus

<PAGE>

included  in such.  Registration  Statement  contains an untrue  statement  of a
material  fact or omits any fact  necessary to make the  statements  therein not
misleading in the light of the circumstances under which they were made, and, at
the request of any such seller, the Company will as soon as possible prepare and
furnish to such seller (a "Correction Event") a reasonable number of copies of a
supplement or amendment to such  prospectus so that, as thereafter  delivered to
the purchasers of such Registrable Securities,  such prospectus will not contain
an untrue  statement of a material  fact or omit to state any fact  necessary to
make the  statements  therein not  misleading in the light of the  circumstances
under  which they were made;  (f) cause all such  Registrable  Securities  to be
listed on each  securities  exchange on which similar  securities  issued by the
Company are then listed and, if not so listed,  to be listed on The Nasdaq Stock
Market or the Nasdaq  SmallCap  trading system or the Nasdaq OTC Bulletin Board;
(g) provide a transfer agent and registrar for all such  Registrable  Securities
not later than the effective date of such Registration Statement; (h) enter into
such customary agreements (including  underwriting  agreements in customary form
with any  underwriter  selected  pursuant  to  1.2(f))  and take all such  other
actions as the holders of a majority of the Registrable Securities being sold or
the underwriters,  if any, reasonably request in order to expedite or facilitate
the disposition of such Registrable  Securities,  including causing its officers
to participate in "road shows" and other  information  meetings  organized by an
underwriter  selected  pursuant  to  Section  1.2(f);  (i)  make  available  for
inspection   by  any  seller  of   Registrable   Securities,   any   underwriter
participating in any disposition pursuant to such Registration Statement and any
attorney,  accountant or other agent retained by any such seller or underwriter,
all financial and other records, pertinent corporate documents and properties of
the Company,  and cause the Company's  employees and independent  accountants to
supply all  information  reasonably  requested by any such seller,  underwriter,
attorney,  accountant or agent in connection with such  Registration  Statement;
(j) before filing a  Registration  Statement or prospectus or any  amendments or
supplements   thereto,  the  Company  shall  provide  counsel  selected  by  the
Designated  Holders  holding a  majority  of the  Registrable  Securities  being
registered in such registration ("Holders' Counsel") and any other Inspector (as
defined  below)  with an  adequate  and  appropriate  opportunity  to review and
comment on such Registration Statement and each prospectus included therein (and
each amendment or supplement  thereto) to be filed with the SEC, subject to such
documents  being under the Company's  control,  and the Company shall notify the
Holders'  Counsel and each seller of  Registrable  Securities  of any stop order
issued or threatened by the SEC; (k) otherwise  comply with all applicable rules
and regulations of the SEC, and make available to its security holders,  as soon
as reasonably practicable, an earnings statement covering the period of at least
twelve months  beginning with the first day of the Company's first full calendar
quarter after the effective date of the Registration  Statement,  which earnings
statement  shall satisfy the  provisions of Section 11(a) of the  Securities Act
and Rule 158  thereunder;  (l) in the event of the  issuance  of any stop  order
suspending  the  effectiveness  of a  Registration  Statement,  or of any  order
suspending or  preventing  the use of any related  prospectus or suspending  the
qualification of any securities included in such Registration Statement for sale
in any  jurisdiction,  the Company will use its reasonable best efforts promptly
to obtain the withdrawal of such order;  (m) obtain one or more comfort letters,
dated  the  effective  date  of  such  Registration   Statement  (and,  if  such
registration  includes an underwritten  offering,  dated

<PAGE>

the  date of the  closing  under  the  underwriting  agreement),  signed  by the
Company's  independent  public  accountants  in customary form and covering such
matters of the type  customarily  covered by comfort letters as the holders of a
majority  of the  Registrable  Securities  being sold  reasonably  request;  (n)
provide a legal opinion of the Company's  outside  counsel,  dated the effective
date of such  Registration  Statement  (and,  if such  registration  includes an
underwritten  offering,  dated the date of the  closing  under the  underwriting
agreement),  with respect to the  Registration  Statement,  each  amendment  and
supplement  thereto,  the prospectus included therein (including the preliminary
prospectus)  and such other  documents  relating  thereto in customary  form and
covering such matters of the type customarily  covered by legal opinions of such
nature;  (o)  subject  to  execution  and  delivery  of  mutually   satisfactory
confidentiality agreements, make available at reasonable times for inspection by
any seller of Registrable Securities,  any managing underwriter participating in
any  disposition  of such  Registrable  Securities  pursuant  to a  Registration
Statement, Holders' Counsel and any attorney, accountant or other agent retained
by  any  managing  underwriter  (each,  an  "Inspector"  and  collectively,  the
"Inspectors"),  all financial and other records,  pertinent  corporate documents
and properties of the Company and its subsidiaries (collectively, the "Records")
as shall be reasonably  necessary to enable them to exercise their due diligence
responsibility,   and  cause  the  Company's  and  its  subsidiaries'  officers,
directors and employees,  and the independent public accountants of the Company,
to  supply  all  information  reasonably  requested  by any  such  Inspector  in
connection  with such  Registration  Statement;  (p)  subject to  execution  and
delivery of mutually  satisfactory  confidentiality  agreements,  keep  Holders'
Counsel advised as to the initiation and progress of any registration  hereunder
including,   but  not  limited  to,   providing   Holders'   Counsel   with  all
correspondence  with the SEC;  (q)  cooperate  with each  seller of  Registrable
Securities  and  each  underwriter  participating  in the  disposition  of  such
Registrable  Securities  and their  respective  counsel in  connection  with any
filings  required  to be made  with  the  NASD;  and (r) take  all  other  steps
reasonably  necessary to effect the  registration of the Registrable  Securities
contemplated  hereby.  (s) Registration  Expenses.  All expenses incident to the
Company's  performance of or compliance with this Agreement  including,  without
limitation,  all  registration  and filing fees, fees and expenses of compliance
with  securities  or blue sky laws,  printing  expenses,  messenger and delivery
expenses,  and  fees  and  disbursements  of  counsel  for the  Company  and all
independent certified public accountants,  underwriters (excluding discounts and
commissions,  which will be paid by the sellers of Registrable  Securities)  and
other  Persons  retained by the Company  will be borne by the  Company,  and the
Company will pay its  internal  expenses  (including,  without  limitation,  all
salaries and expenses of its Employees  performing legal or accounting  duties),
the  expense  of any  annual  audit or  quarterly  review,  the  expense  of any
liability  insurance and the expenses and fees for listing the  securities to be
registered on each securities exchange on which similar securities issued by the
Company are then listed or on The Nasdaq National Market, Nasdaq SmallCap Market
or the OTC Bulletin  Board trading  system.  Without  limitation,  the foregoing
shall include, with respect to each Registration Statement hereunder,  the fees,
charges and disbursements up to $25,000 of one counsel to the Designated Holders
(which shall be designated by a majority in interest of the  Designated  Holders
of  Registrable  Securities  participating  in the proposed sale pursuant

<PAGE>

to the Registration Statement in question);  provided, however, that the Company
shall  have no  obligation  to pay any  underwriting  discounts  or  commissions
attributable  to the  sale of  Registrable  Securities  and any of the  expenses
incurred by such Designated  Holders which are not payable by the Company,  such
costs to be borne by such Designated Holder or Holders.

1.7 Indemnification.
(a) The Company  agrees to indemnify and hold  harmless,  to the fullest  extent
permitted  by law,  each  holder of  Registrable  Securities  and its general or
limited partners, officers, directors,  members, managers, employees,  advisors,
representatives,  agents and Affiliates  (collectively,  the  "Representatives")
from and against any loss, claim,  damage,  liability,  attorney's fees, cost or
expense and costs and expenses of  investigating  and  defending  any such claim
(collectively,  the  "Losses"),  joint or  several,  and any  action in  respect
thereof to which such holder of  Registrable  Securities or its  Representatives
may become subject under the Securities Act or otherwise, insofar as such Losses
(or actions or proceedings, whether commenced or threatened, in respect thereto)
arise out of or are based upon (i) any untrue or alleged  untrue  statement of a
material fact contained in any Registration Statement, prospectus or preliminary
or  summary  prospectus  or any  amendment  or  supplement  thereto  or (ii) any
omission or alleged  omission to state  therein a material  fact  required to be
stated therein or necessary to make the statements  therein not misleading,  and
the Company shall  reimburse each such holder of Registrable  Securities and its
Representatives  for  any  legal  or any  other  expenses  incurred  by  them in
connection  with  investigating  or defending or preparing to defend against any
such Loss, action or proceeding;  provided,  however, that the Company shall not
be liable to any such holder or other  indemnity  in any such case to the extent
that any such Loss (or action or proceeding, whether commenced or threatened, in
respect  thereof) arises out of or is based upon an untrue  statement or alleged
untrue  statement  or omission or alleged  omission,  made in such  Registration
Statement,  any such  prospectus  or  preliminary  or summary  prospectus or any
amendment or supplement  thereto,  in reliance  upon,  and in  conformity  with,
written  information  prepared  and  furnished  to the Company by such holder of
Registrable  Securities or its  Representatives  expressly for use therein or by
failure  of such  holder  of  Registrable  Securities  to  deliver a copy of the
Registration  Statement or prospectus or any amendments or  supplements  thereto
after the Company has furnished  such holder of  Registrable  Securities  with a
sufficient  number of copies of the same.  In  connection  with an  underwritten
offering,  the Company will  indemnify  such  underwriters,  their  officers and
directors and each Person who controls such underwriters  (within the meaning of
the  Securities  Act) to the same extent as provided  above with  respect to the
indemnification of the holders of Registrable Securities.

(b) In  connection  with any  Registration  Statement  in which the  holders  of
Registrable Securities are participating pursuant to this Agreement, the holders
of  Registrable   Securities  will  furnish  to  the  Company  in  writing  such
information as the Company  reasonably  requests for use in connection  with any
such  Registration  Statement or prospectus and, to the fullest extent permitted
by law,  each such holder of  Registrable  Securities  will  indemnify  and hold
harmless  the  Company  and its  Representatives  from and  against  any Losses,
severally  but not  jointly,  and any  action in  respect  thereof  to which the
Company and its  Representatives  may become subject under the Securities Act

<PAGE>

or  otherwise,  insofar as such  Losses  (or  actions  or  proceedings,  whether
commenced or threatened,  in respect thereof) arise out of or are based upon (i)
the purchase or sale of Registrable  Securities during a suspension as set forth
in Section 1.5(b) after written receipt of notice of such  suspension,  (ii) any
untrue  or  alleged  untrue  statement  of a  material  fact  contained  in  the
Registration  Statement,  prospectus or preliminary or summary prospectus or any
amendment or supplement  thereto, or (iii) any omission or alleged omission of a
material fact required to be stated  therein or necessary to make the statements
therein not misleading,  but, with respect to clauses (ii) and (iii) above, only
to  the  extent  that  such  untrue  statement  or  omission  is  made  in  such
Registration Statement, any such prospectus or preliminary or summary prospectus
or any amendment or supplement  thereto, in reliance upon and in conformity with
written  information  prepared  and  furnished  to the Company by such holder of
Registrable Securities expressly for use therein or by failure of such holder of
Registrable  Securities  to  deliver  a copy of the  Registration  Statement  or
prospectus  or any  amendments  or  supplements  thereto  after the  Company has
furnished  such holder of  Registrable  Securities  with a sufficient  number of
copies of the same, and such holder of Registrable Securities will reimburse the
Company and each  Representative for any legal or any other expenses incurred by
them in  connection  with  investigating  or  defending  or  preparing to defend
against any such Loss, action or proceeding; provided, however, that such holder
of  Registrable  Securities  shall not be liable in any such case to the  extent
that prior to the filing of any such  Registration  Statement or  prospectus  or
amendment or  supplement  thereto,  such holder of  Registrable  Securities  has
furnished  in  writing  to the  Company  information  expressly  for use in such
Registration  Statement or prospectus  or any  amendment or  supplement  thereto
which corrected or made not misleading  information  previously furnished to the
Company;  provided,  further,  however, that the obligation to indemnify will be
individual to each such holder of registrable  Securities and will be limited to
the net amount of proceeds  received by such  holder of  Registrable  Securities
from the sale of Registrable Securities pursuant to such Registration Statement.

(c) Promptly after receipt by any Person in respect of which indemnity may
be sought  pursuant  to  Section  1.7(a) or 1.7(b) (an  "Indemnified  Party") of
notice of any claim or the  commencement of any action,  the  Indemnified  Party
shall,  if a claim in respect  thereof is to be made against the Person  against
whom such indemnity may be sought (an "Indemnifying Party"), promptly notify the
Indemnifying  Party in writing of the claim or the  commencement of such action;
provided,  that the failure to notify the  Indemnifying  Party shall not relieve
the  Indemnifying  Party from any liability  which it may have to an Indemnified
Party  otherwise than under Section 1.7(a) or 1.7(b) except to the extent of any
actual  prejudice  resulting  therefrom.  If any such  claim or action  shall be
brought against an Indemnified Party, and it shall notify the Indemnifying Party
thereof, the Indemnifying Party shall be entitled to participate  therein,  and,
to the  extent  that it  wishes,  jointly  with  any  other  similarly  notified
Indemnifying  Party,  to assume the  defense  thereof  with  counsel  reasonably
satisfactory to the Indemnified  Party. After notice from the Indemnifying Party
to the Indemnified  Party of its election to assume the defense of such claim or
action,  the Indemnifying Party shall not be liable to the Indemnified Party for
any legal or other expenses  subsequently  incurred by the Indemnified  Party in
connection   with  the  defense   thereof   other  than   reasonable   costs  of

<PAGE>

investigation;  provided,  that the  Indemnified  Party  shall have the right to
employ   separate   counsel  to  represent   the   Indemnified   Party  and  its
Representatives  who may be subject  to  liability  arising  out of any claim in
respect of which  indemnity may be sought by the  Indemnified  Party against the
Indemnifying  Party,  but the fees and expenses of such counsel shall be for the
account of such  Indemnified  Party  unless (i) the  Indemnifying  Party and the
Indemnified Party shall have mutually agreed to the retention of such counsel or
(ii) in the written opinion of counsel to such Indemnified Party, representation
of both  parties by the same  counsel  would be  inappropriate  due to actual or
potential conflicts of interest between them, it being understood, however, that
the  Indemnifying  Party  shall not,  in  connection  with any one such claim or
action or separate but substantially similar or related claims or actions in the
same jurisdiction  arising out of the same general allegations or circumstances,
be liable for the fees and expenses of more than one separate  firm of attorneys
(together  with  appropriate  local  counsel)  at any time  for all  Indemnified
Parties.  No Indemnifying Party shall,  without the prior written consent of the
Indemnified  Party,  effect any settlement of any claim or pending or threatened
proceeding  in  respect of which the  Indemnified  Party is or could have been a
party and indemnity could have been sought hereunder by such Indemnified  Party,
unless such settlement  includes an  unconditional  release of such  Indemnified
Party from all liability  arising out of such claim or proceeding other than the
payment  of  monetary  damages  by  the  Indemnifying  Party  on  behalf  of the
Indemnified Party.  Whether or not the defense of any claim or action is assumed
by the Indemnifying  Party, such  Indemnifying  Party will not be subject to any
liability for any settlement made without its consent, which consent will not be
unreasonably withheld.

(d) If the  indemnification  provided for in this Section 1.7 is  unavailable to
the Indemnified  Parties in respect of any Losses referred to herein,  then each
Indemnifying  Party,  in lieu of  indemnifying  such  Indemnified  Party,  shall
contribute to the amount paid or payable by such  Indemnified  Party as a result
of such Losses in such  proportion  as is  appropriate  to reflect the  relative
benefits  received  by the  Company  on the  one  hand  and the  holders  of the
Registrable  Securities  on the  other  from  the  offering  of the  Registrable
Securities,  or if such  allocation is not permitted by applicable  law, in such
proportion as is appropriate to reflect not only the relative  benefits but also
the  relative  fault  of the  Company  on the one hand  and the  holders  of the
Registrable  Securities  on the  other  in  connection  with the  statements  or
omissions which resulted in such Losses, as well as any other relevant equitable
considerations.  The  relative  fault of the Company on the one hand and of each
holder  of the  Registrable  Securities  on the  other  shall be  determined  by
reference to, among other things, whether any action taken, including any untrue
or alleged  untrue  statement  of a material  fact,  or the  omission or alleged
omission to state a material fact relates to information supplied by such party,
and  the  parties'  relative  intent,  knowledge,   access  to  information  and
opportunity  to correct or prevent such  statement or omission.  The Company and
the holders of the  Registrable  Securities  agree that it would not be just and
equitable if contribution pursuant to this Section 1.7(d) were determined by pro
rata allocation or by any other method of allocation which does not take account
of  the  equitable  considerations  referred  to in  the  immediately  preceding
paragraph. The amount paid or payable by an Indemnified Party as a result of the
Losses  referred to in the  immediately  preceding  paragraph shall be deemed to
include, subject to the

<PAGE>

limitations set forth above, any legal or other expenses  reasonably incurred by
such  Indemnified  Party in connection with  investigating or defending any such
action or claim.  Notwithstanding  the provisions of this Section 1.7, no holder
of the  Registrable  Securities  shall be required to  contribute  any amount in
excess  of the  amount  by  which  the  total  price at  which  the  Registrable
Securities  of such holder were offered to the public  exceeds the amount of any
Losses which such holder has otherwise  paid by reason of such untrue or alleged
untrue statement or omission or alleged omission. No Person guilty of fraudulent
misrepresentation  (within the meaning of Section 11(f) of the  Securities  Act)
shall be  entitled  to  contribution  from any Person who was not guilty of such
fraudulent  misrepresentation.  Each holder's obligations to contribute pursuant
to his  Section  1.7 is  several  in the  proportion  that the  proceeds  of the
offering  received by such  holder of the  Registrable  Securities  bears to the
total  proceeds of the offering  received by all the holders of the  Registrable
Securities and not joint.

1.8 Participation in Underwritten Registrations.

(a)  No  Person  may  participate  in  any   registration   hereunder  which  is
     underwritten unless such Person (i) agrees to sell such Person's securities
     on the basis  provided  in any  underwriting  arrangements  approved by the
     Person  or  Persons  entitled   hereunder  to  approve  such   arrangements
     (including, without limitation, pursuant to the terms of any over-allotment
     or "green shoe" option requested by the managing underwriter(s),  provided,
     that each holder of  Registrable  Securities  shall not be required to sell
     more than the  number  of  Registrable  Securities  that  such  holder  has
     requested the Company to include in any  registration)  and (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 this Agreement.

(b)  Each Person that is  participating  in any  registration  hereunder  agrees
     that,  upon receipt of any notice from the Company of the  happening of any
     event of the kind
described in Section 1.6(e) above,  such Person will forthwith  discontinue  the
disposition of its Registrable Securities pursuant to the Registration Statement
until  such  Person's  receipt  of  the  copies  of a  supplemented  or  amended
prospectus as contemplated by such Section 1.6(e).

1.9 Current Public Information. The Company covenants that it will file all
reports required to be filed by it under the Securities Act and the Exchange Act
and the  rules  and  regulations  adopted  by the SEC  thereunder,  and will use
reasonable  best  efforts  to take  such  further  action as the  Purchaser  may
reasonably  request,  all to the  extent  required  to  enable  the  holders  of
Registrable  Securities to sell Registrable  Securities  pursuant to Rule 144 or
Rule 144A  adopted by the SEC under the  Securities  Act or any similar  rule or
regulation  hereafter adopted by the SEC. The Company shall, upon the request of
a Designated Holder, deliver to such Designated Holder a written statement as to
whether it has complied with such requirements.

<PAGE>

2. Transfers of Certain Rights.

2.1 Transfer. The rights granted to the Purchaser under this Agreement may
be transferred  subject to the provisions of Sections 2.2 and 2.3; provided that
nothing  contained  herein shall be deemed to permit an assignment,  transfer or
disposition  of  the  Registrable  Securities  in  violation  of the  terms  and
conditions of the Securities Purchase Agreement, the Certificate of Designations
of the Series A-2 Preferred Stock, or applicable law.

2.2  Transferees.  Any  transferee  to whom  rights  under  this  Agreement  are
transferred  shall,  as a condition to such  transfer,  deliver to the Company a
written  instrument  by  which  such  transferee  agrees  to  be  bound  by  the
obligations  imposed upon the Purchaser  under this Agreement to the same extent
as if such transferee were a Purchaser hereunder.

2.3 Subsequent Transferees. A transferee to whom rights are transferred pursuant
to this  Section 2 may not again  transfer  such  rights to any other  person or
entity, other than as provided in Sections 2.1 or 2.2 above.

3. Certain Definitions. The following capitalized terms shall have the meanings
ascribed to them below: "Affiliate" means any Person that directly or indirectly
controls,  or is under control with, or is controlled by such Person. As used in
this definition, "control" (including with its correlative meanings, "controlled
by" and "under  common  control  with") shall mean the  possession,  directly or
indirectly,  of the power to direct or cause the direction of the  management or
policies of a Person (whether through  ownership of securities or partnership or
other ownership interests, by contract or otherwise).

"Closing  Price" means,  with respect to the  Registrable  Securities (a) if the
shares are listed or admitted for trading on any national securities exchange or
included  in The Nasdaq  National  Market or Nasdaq  SmallCap  Market,  the last
reported  sales price as reported on such exchange or market;  (b) if the shares
are not listed or admitted  for trading on any national  securities  exchange or
included in The Nasdaq National Market or Nasdaq SmallCap Market, the average of
the last reported  closing bid and asked quotation for the shares as reported on
the National  Association  of  Securities  Dealers  Automated  Quotation  System
("NASDAQ") or a similar service if NASDAQ is not reporting such information; (c)
if the shares are not listed or admitted for trading on any national  securities
exchange or included in The Nasdaq  National Market or Nasdaq SmallCap Market or
quoted by NASDAQ or a similar service,  the average of the last reported bid and
asked  quotation for the shares as quoted by a market maker in the shares (or if
there is more  than one  market  maker,  the bid and  asked  quotation  shall be
obtained  from two market  makers and the  average of the lowest bid and highest
asked  quotation).  In the absence of any available  public  quotations  for the
Common Stock,  the Board and a majority of the Holders  shall  determine in good
faith the fair value of the Common Stock

"Common  Stock"  means the common  stock,  par value  $0.001  per share,  of the
Company.

"Employees" means any current,  former, or retired employee,  office consultant,
advisor, independent contractor, agent, officer or director of the Company.

<PAGE>

"Exchange  Act" means the Securities  Exchange Act of 1934, as amended,  and the
rules and regulations of the SEC promulgated thereunder.

"Market Price" means, on any date of determination, the average of the daily
Closing Price of the Registrable Securities for the immediately preceding thirty
(30) days on which the national securities exchanges are open for trading.

"Person"  means any  individual,  company,  partnership,  firm,  joint  venture,
association,    joint-stock   company,   trust,   unincorporated   organization,
governmental body or other entity.

"Registrable  Securities" means, subject to the immediately  following sentence,
(i) shares of Common Stock issued or issuable  upon the  conversion of shares of
Series A-2
Preferred  Stock acquired from the Company  pursuant to the Securities  Purchase
Agreement,  (ii) any  shares of Common  Stock  issued or  issuable  directly  or
indirectly with respect to the securities  referred to in clause (i) and (ii) by
way of stock  dividend or stock split or in  connection  with a  combination  of
shares,  recapitalization,  merger,  consolidation or other reorganization,  and
(iii) any other  shares of Common  Stock  held by a Person  holding  Registrable
Securities other than shares of Common Stock which have ceased to be Registrable
Securities. As to any particular shares of Common Stock constituting Registrable
Securities,  such shares of Common Stock will cease to be Registrable Securities
when they (x) have been  effectively  registered  under the  Securities  Act and
disposed of in accordance with a Registration  Statement covering them, (y) have
been sold to the public pursuant to Rule 144 (or by similar  provision under the
Securities Act), or (z) are eligible for resale under Rule 144(k) (or by similar
provision  under the.  Securities  Act) without any  limitation on the amount of
securities that may be sold under paragraph (e) thereof.

"Registration  Statement" means any registration  statement of the Company filed
under the Securities Act which covers any of the Registrable Securities pursuant
to the
provisions  of  this  Agreement,   including  the  prospectus,   amendments  and
supplements to such registration statement, including post-effective amendments,
all  exhibits and all material  incorporated  by reference in such  registration
statement.

"SEC" means the United States  Securities  and Exchange  Commission or any other
federal agency at the time administering the Securities Act.

"Securities Act" means the Securities Act of 1933, as amended, and the rules and
regulations of the SEC promulgated thereunder.

4. Miscellaneous.

4.1 Recapitalizations, Exchanges, etc. The provisions of this Agreement shall
apply to the full extent set forth  herein with  respect to (i) the  Securities,
(ii) any and all shares of Common Stock into which the Securities are converted,
exchanged or

<PAGE>

substituted  in any  recapitalization  or other  capital  reorganization  by the
Company and (iii) any and all equity  securities of the Company or any successor
or assign of the Company  (whether by merger,  consolidation,  sale of assets or
otherwise)  which may be issued in respect of, in conversion of, in exchange for
or in substitution  of, the Securities and shall be  appropriately  adjusted for
any stock dividends, splits, reverse splits, combinations, recapitalizations and
the like occurring after the date hereof.  The Company shall cause any successor
or assign  (whether by merger,  consolidation,  sale of assets or  otherwise) to
enter into a new registration  rights  agreement with the Designated  Holders on
terms  substantially  the  same as this  Agreement  as a  condition  of any such
transaction.

4.2 No Inconsistent Agreements. The Company has not and shall not enter
into any agreement with respect to its securities that is inconsistent  with the
rights  granted to the  Purchasers  in this  Agreement  or grant any  additional
registration  rights to any Person or with respect to any  securities  which are
not Registrable  Securities which are prior in right to or inconsistent with the
rights granted in this Agreement. The Purchasers expressly acknowledge and agree
that the  Company  is  granting  registration  rights to  holders  of Series A-1
Preferred  Stock  which are  substantially  identical  to those  granted  to the
Purchasers,  that such registration rights are permitted under this Section 4.2,
and that  holders of such  registration  rights shall be treated pari passu with
holders of the registration  rights granted under this Agreement with respect to
priority in piggy-back registrations, and vice versa.

4.2 Amendments and Waivers. The provisions of this Agreement may be
amended and the Company may take action  herein  prohibited,  or omit to perform
any act herein  required to be performed by it, if, but only if, the Company has
obtained  the  written  consent  of  holders  of at  least  a  majority  of  the
Registrable Securities then in existence.

4.3 Severability.  Whenever possible,  each provision of this Agreement shall be
interpreted  in such manner as to be effective and valid under  applicable  law,
but if any  provision of this  Agreement  shall be held to be  prohibited  by or
invalid under  applicable law, such provision  shall be ineffective  only to the
extent of such prohibition or invalidity,  without invalidating the remainder of
such provision or the remaining provisions of this Agreement.

4.4 Counterparts. This Agreement may be executed in one or more
counterparts  each of  which  shall  be  deemed  an  original,  but all of which
together shall constitute one and the same instrument.

4.5 Notices. All notices, requests and other communications to any party
hereunder shall be in writing (including telecopy, telex or similar writing) and
shall be deemed given or made as of the date delivered,  if delivered personally
or by telecopy (provided that delivery by telecopy shall be followed by delivery
of an additional copy personally,  by mail or overnight courier),  one day after
being  delivered  by  overnight  courier  or three days  after  being  mailed by
registered or certified mail (postage prepaid, return receipt requested), to the
parties  at the  following  addresses  (or to such  other  address  or  telex or
telecopy number as a party may have specified by notice given to the other party
pursuant to this provision):

<PAGE>

If to the Company, to:
Auto Data Network, Inc.
509 Madison Avenue
Suite 404
New York, New York 10022
Attention: Christopher R. Glover, CEO
Telephone: (212) 561-1837
Facsimile: (212) 937-4675

If to the Purchaser, to:
The  address  or  facsimile   number  of  each  Purchaser  as  recorded  in  the
stockholders records of the Company.

4.6  Governing  Law.  This  Agreement  shall be  governed  by and  construed  in
accordance  with  the laws of the  State  of New  York,  without  regard  to the
conflicts of laws rules or provisions.

4.7 Forum;  Service of Process.  Any legal suit, action or proceeding brought by
any party or any of its  affiliates  arising out of or based upon this Agreement
shall be instituted in any federal or state court in New York County,  New York,
and each party waives any  objection  which it may now or hereafter  have to the
laying  of  venue  or  any  such  proceeding,  and  irrevocably  submits  to the
jurisdiction of such courts in any such suit, action or proceeding.

4.8 Captions. The captions, headings and arrangements used in this
Agreement  are for  convenience  only and do not in any way limit or amplify the
terms and provisions hereof.

4.9 No Prejudice. The terms of this Agreement shall not be construed in favor of
or against any party on account of its participation in the preparation hereof.

4.10 Words in Singular and Plural Form.  Words used in the singular form in this
Agreement shall be deemed to import the plural, and vice versa, as the sense may
require.

4.11 Remedy for Breach. The Company hereby acknowledges that in the event
of any breach or  threatened  breach by the Company of any of the  provisions of
this Agreement, the holders of the Registrable Securities would have no adequate
remedy at law and could suffer substantial and irreparable damage.  Accordingly,
the Company  hereby agrees that, in such event,  the holders of the  Registrable
Securities shall be entitled,  and notwithstanding any election by any holder of
the  Registrable  Securities  to claim  damages,  to obtain a  temporary  and/or
permanent  injunction  to restrain  any such breach or  threatened  breach or to
obtain specific performance of any such provisions, all without prejudice to any
and all other remedies which any holder of the  Registrable  Securities may have
at law or in equity.

<PAGE>

4.12 Successors and Assigns; Third Party Beneficiaries. This Agreement and
all of the  provisions  hereof shall be binding upon and inure to the benefit of
the parties  hereto,  each subsequent  holder of the Registrable  Securities and
their  respective  successors  and assigns and  executors ,  administrators  and
heirs.   Holders  of  the  Registrable   Securities  are  intended  third  party
beneficiaries  of this  Agreement  and this  Agreement  may be  enforced by such
holders.

4.13 Entire Agreement. This Agreement sets forth the entire agreement and
understanding between the parties as to the subject matter hereof and merges and
supersedes all prior discussions, agreements and understandings of any and every
nature among them.

[Remainder of page intentionally left blank.].

<PAGE>

IN WITNESS  WHEREOF,  the parties  hereto have caused this  Registration  Rights
Agreement to be duly executed as of the date and year first written above.  AUTO
DATA NETWORK, INC.
By:_________________________________
Name:
Title:
By:_________________________________
Name: ______________
Title: Secretary

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}]]