Document:

<PAGE>

                                                                  Exhibit 10.6.1

                          REGISTRATION RIGHTS AGREEMENT

                  This Registration Rights Agreement (this "Agreement") is made
and entered into as of December 28, 2000, among Digital Descriptor Systems,
Inc., a Delaware corporation (the "Company"), and the investors signatory hereto
(each such investor is a "Purchaser" and all such investors are, collectively,
the "Purchasers").

                  This Agreement is made pursuant to the Secured Convertible
Debenture Purchase Agreement, dated as of the date hereof among the Company and
the Purchasers (the "Purchase Agreement").

                  The Company and the Purchasers hereby agree as follows:

         1.       Definitions

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

                  "Affiliate" means, with respect to any Person, any other
Person that directly or indirectly controls or is controlled by or under common
control with such Person. For the purposes of this definition, "control," when
used with respect to any Person, means the possession, direct or indirect, of
the power to direct or cause the direction of the management and policies of
such Person, whether through the ownership of voting securities, by contract or
otherwise; and the terms of "affiliated," "controlling" and "controlled" have
meanings correlative to the foregoing.

                  "Business Day" means any day except Saturday, Sunday and any
day which shall be a legal holiday or a day on which banking institutions in the
State of New York or the Commonwealth of Pennsylvania generally are authorized
or required by law or other government actions to close.

                  "Closing Date" shall have the meaning set forth in the
Purchase Agreement.

                  "Commission" means the Securities and Exchange Commission.

                  "Common Stock" means the Company's common stock, $0.001 par
value, or such securities in to which that such stock shall hereafter be
reclassified.

                  "Debentures" means the Convertible Debentures issued to the
Purchasers in accordance with the Purchase Agreement.

<PAGE>

                  "Effectiveness Date" means with respect to the initial
Registration Statement required to be filed hereunder, the 90th day following
the Closing Date and, with respect to any additional Registration Statements
which may be required pursuant to Section 3(c), the ninetieth (90th) day
following the date that notice of the requirement to file such additional
Registration Statement is provided.

                  "Effectiveness Period" shall have the meaning set forth in
Section 2(a).

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

                  "Filing Date" means the 30th day following the Closing Date
and with respect to any additional Registration Statements which may be required
pursuant to Section 3(c), the 30th day following the date that notice of the
requirement to be filed such additional Registration Statement is provided.

                  "Holder" or "Holders" means the holder or holders, as the case
may be, from time to time of Registrable Securities.

                  "Indemnified Party" shall have the meaning set forth in
Section 5(c).

                  "Indemnifying Party" shall have the meaning set forth in
Section 5(c).

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

                  "Person" means an individual or a corporation, partnership,
trust, incorporated or unincorporated association, joint venture, limited
liability company, joint stock company, government (or an agency or political
subdivision thereof) or other entity of any kind.

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

                  "Prospectus" means the prospectus included in the Registration
Statement (including, without limitation, a prospectus that includes any
information previously omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 430A promulgated under the
Securities Act), as amended or supplemented by any prospectus supplement, with
respect to the terms of the offering of any portion of the Registrable
Securities covered by the Registration Statement, and all other amendments and
supplements to the Prospectus, including post-effective amendments, and all
material incorporated by reference or deemed to be incorporated by reference in
such Prospectus.

                  "Registrable Securities" means the shares of Common Stock
issuable upon conversion in full of the Debentures and exercise in full of the
Warrants.

                                      -2-
<PAGE>

                  "Registration Statement" means the registration statement and
any additional registration statements contemplated by Section 3(c), including
(in each case) the Prospectus, amendments and supplements to such registration
statement or Prospectus, including pre- and post-effective amendments, all
exhibits thereto, and all material incorporated by reference or deemed to be
incorporated by reference in such registration statement.

                  "Rule 144" means Rule 144 promulgated by the Commission
pursuant to the Securities Act, as such Rule may be amended from time to time,
or any similar rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

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

                  "Rule 424" means Rule 424 promulgated by the Commission
pursuant to the Securities Act, as such Rule may be amended from time to time,
or any similar rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

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

                  "Special Counsel" means one special counsel to the Holders,
for which the Holders will be reimbursed by the Company pursuant to Section 4.

         2.       Shelf Registration

                  (a) On or prior to each Filing Date, the Company shall prepare
and file with the Commission a "Shelf" Registration Statement covering the
resale of all Registrable Securities for an offering to be made on a continuous
basis pursuant to Rule 415. The Registration Statement shall be on Form SB-2
(except if the Company is not then eligible to register for resale the
Registrable Securities on Form SB-2, in which case such registration shall be on
another appropriate form and shall contain (except if otherwise directed by the
Holders) the "Plan of Distribution" attached hereto as Annex A. The Company
shall use its best efforts to cause the Registration Statement to be declared
effective under the Securities Act as promptly as possible after the filing
thereof, but in any event prior to the Effectiveness Date, and shall use its
best efforts to keep such Registration Statement continuously effective under
the Securities Act until the date which is two years after the date that such
Registration Statement is declared effective by the Commission or such earlier
date when all Registrable Securities covered by such Registration Statement have
been sold or may be sold without volume restrictions pursuant to Rule 144(k)
(the "Effectiveness Period").

                  (b) The initial Registration Statement to be filed hereunder
shall include (but not be limited to) a number of shares of Common Stock equal
to no less than the sum of(i) 200% of the number of shares of Common Stock
issuable upon conversion in full of the principal amount of Debentures assuming
(1) the full $600,000 of Debentures is issued on the Closing Date, (2) the
conversion of the full $600,000 of Debentures occurred on the Closing Date, (3)
one full year of interest had accrued on the Debentures and all such interest is
paid in shares ofCommon Stock and (4) the Conversion Price equaled the lessor of
(a) $0.08 and (b) 50% of the average of the lowest three inter-day prices (which
need not occur on consecutive Trading Days) during the ten Trading Days
immediately preceding the Closing Date and (ii) exercise in full of the
Warrants.

                                      -3-
<PAGE>

                  (c) If (a) a Registration Statement is not filed on or prior
to its Filing Date (if the Company files such Registration Statement without
affording the Holder the opportunity to review and comment on the same as
required by Section 3(a) hereof, the Company shall not be deemed to have
satisfied this clause (a)), or (b) the Company fails to file with the Commission
a request for acceleration in accordance with Rule 461 promulgated under the
Securities Act, within five days of the date that the Company is notified
(orally or in writing, whichever is earlier) by the Commission that a
Registration Statement will not be "reviewed," or not subject to further review,
or (c) a Registration Statement filed hereunder is not declared effective by the
Commission on or prior to its Effectiveness Date, or (d) after a Registration
Statement is filed with and declared effective by the Commission, such
Registration Statement ceases to be effective as to all Registrable Securities
to which it is required to relate at any time prior to the expiration of the
Effectiveness Period without being succeeded within ten Business Days by an
amendment to such Registration Statement or by a subsequent Registration
Statement filed with and declared effective by the Commission, or (e) the Common
Stock shall not be quoted on the OTC Bulletin Board or shall be delisted or
suspended from trading on the New York Stock Exchange, American Stock Exchange,
the Nasdaq National Market or the Nasdaq Smallcap Market (each, a "Subsequent
Market") for more than three Trading Days (which need not be consecutive Trading
Days), or (f) the conversion rights of the Holders pursuant to the Debentures
are suspended for any reason, or (g) an amendment to a Registration Statement is
not filed by the Company with the Commission within ten Business Days of the
Commission's notifying the Company that such amendment is required in order for
such Registration Statement to be declared effective (any such failure or breach
being referred to as an "Event," and for purposes of clauses (a), (c), (f) the
date on which such Event occurs, or for purposes of clause (b) the date on which
such five day period is exceeded, or for purposes of clauses (d) and (g) the
date which such ten Business Day-period is exceeded, or for purposes of clause
(e) the date on which such three Trading Day-period is exceeded, being referred
to as "Event Date"), then, on each such Event Date and every monthly anniversary
thereof until the applicable Event is cured, the Company shall pay to each
Holder an amount in cash, as liquidated damages and not as a penalty, equal to
2.0% of the purchase price paid by such Holder pursuant to the Purchase
Agreement, or at the Holder's option, in shares of Common Stock. If the Holder
elects to receive such liquidated damages in shares of Common Stock, then the
number of shares issuable to such Holder shall be determined based upon a price
which is equal to the average of the three lowest inter-day trading prices (as
reported by Bloomberg Information Services) during the ten Trading Days
immediately preceding the Event Date or the monthly anniversary thereof. If the
Company fails to pay any liquidated damages pursuant to this Section in full
within seven days after the date payable, the Company will pay interest thereon
at a rate of 15% per annum (or such lesser maximum amount that is permitted to
be paid by applicable law) to the Holder, accruing daily from the date such
liquidated damages are due until such amounts, plus all such interest thereon,
are paid in full. The liquidated damages pursuant to the terms hereof shall
apply on a pro-rata basis for any portion of a month prior to the cure of an
Event.

                                      -4-
<PAGE>

         3.       Registration Procedures

                  In connection with the Company's registration obligations
hereunder, the Company shall:

                  (a) Not less than five Business Days prior to the filing of
each Registration Statement or any related Prospectus or any amendment or
supplement thereto (including any document that would be incorporated or deemed
to be incorporated therein by reference), the Company shall, (i) furnish to the
Holders and their Special Counsel copies of all such documents proposed to be
filed, which documents (other than those incorporated or deemed to be
incorporated by reference) will be subject to the review of such Holders and
their Special Counsel, and (ii) cause its officers and directors, counsel and
independent certified public accountants to respond to such inquiries as shall
be necessary, in the reasonable opinion of respective counsel to conduct a
reasonable investigation within the meaning of the Securities Act. The Company
shall not file the Registration Statement or any such Prospectus or any
amendments or supplements thereto to which the Holders of a majority of the
Registrable Securities and their Special Counsel shall reasonably object,
provided, the Company is notified of such objection no later than 3 Business
Days after the Holders have been so furnished copies of such documents.

                  (b) (i) Prepare and file with the Commission such amendments,
including post-effective amendments, to the Registration Statement and the
Prospectus used in connection therewith as may be necessary to keep the
Registration Statement continuously effective as to the applicable Registrable
Securities for the Effectiveness Period and prepare and file with the Commission
such additional Registration Statements in order to register for resale under
the Securities Act all of the Registrable Securities; (ii) cause the related
Prospectus to be amended or supplemented by any required Prospectus supplement,
and as so supplemented or amended to be filed pursuant to Rule 424; (iii)
respond as promptly as reasonably possible, and in any event within ten Business
Days, to any comments received from the Commission with respect to the
Registration Statement or any amendment thereto and as promptly as reasonably
possible provide the Holders true and complete copies of all correspondence from
and to the Commission relating to the Registration Statement; and (iv) comply in
all material respects with the provisions of the Securities Act and the Exchange
Act with respect to the disposition of all Registrable Securities covered by the
Registration Statement during the applicable period in accordance with the
intended methods of disposition by the Holders thereof set forth in the
Registration Statement as so amended or in such Prospectus as so supplemented.

                  (c) File additional Registration Statements if the number of
Registrable Securities at any time exceeds 85% of the number of shares of Common
Stock then registered in all their existing Registration Statements hereunder
which additional Registration Statement shall cover 120% or more of the number
of unregistered Registrable Securities.

                                      -5-

<PAGE>

                  (d) Notify the Holders of Registrable Securities to be sold
and their Special Counsel as promptly as reasonably possible (and, in the case
of (i)(A) below, not less than five Business Days prior to such filing) and (if
requested by any such Person) confirm such notice in writing no later than one
Business Day following the day (i)(A) when a Prospectus or any Prospectus
supplement or post-effective amendment to the Registration Statement is proposed
to be filed; (B) when the Commission notifies the Company whether there will be
a "review" of such Registration Statement and whenever the Commission comments
in writing on such Registration Statement (the Company shall provide true and
complete copies thereof and all written responses thereto to each of the
Holders); and (C) with respect to the Registration Statement or any
post-effective amendment, when the same has become effective; (ii) of any
request by the Commission or any other Federal or state governmental authority
for amendments or supplements to the Registration Statement or Prospectus or for
additional information; (iii) of the issuance by the Commission of any stop
order suspending the effectiveness of the Registration Statement covering any or
all of the Registrable Securities or the initiation of any Proceedings for that
purpose; (iv) if at any time any of the representations and warranties of the
Company contained in any agreement contemplated hereby ceases to be true and
correct in all material respects; (v) of the receipt by the Company of any
notification with respect to the suspension of the qualification or exemption
from qualification of any of the Registrable Securities for sale in any
jurisdiction, or the initiation or threatening of any Proceeding for such
purpose; and (vi) of the occurrence of any event or passage of time that makes
the financial statements included in the Registration Statement ineligible for
inclusion therein or any statement made in the Registration Statement or
Prospectus or any document incorporated or deemed to be incorporated therein by
reference untrue in any material respect or that requires any revisions to the
Registration Statement, Prospectus or other documents so that, in the case of
the Registration Statement or the Prospectus, as the case may be, it will not
contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading.

                  (e) Promptly deliver to each Holder and their Special Counsel,
without charge, as many copies of the Prospectus or Prospectuses (including each
form of prospectus) and each amendment or supplement thereto as such Persons may
reasonably request. The Company hereby consents to the use of such Prospectus
and each amendment or supplement thereto by each of the selling Holders in
connection with the offering and sale of the Registrable Securities covered by
such Prospectus and any amendment or supplement thereto.

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

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

                                      -6-
<PAGE>

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

                  (i) Comply with all applicable rules and regulations of the
Commission.

                  4. Registration Expenses. All fees and expenses incident to
the performance of or compliance with this Agreement by the Company shall be
borne by the Company whether or not any Registrable Securities are sold pursuant
to the Registration Statement. The fees and expenses referred to in the
foregoing sentence shall include, without limitation, (i) all registration and
filing fees (including, without limitation, fees and expenses (A) with respect
to filings required to be made with any Subsequent Market on which the Common
Stock is then listed for trading, and (B) in compliance with applicable state
securities or Blue Sky laws (including, without limitation, fees and
disbursements of counsel for the Company in connection with Blue Sky
qualifications or exemptions of the Registrable Securities and determination of
the eligibility of the Registrable Securities for investment under the laws of
such jurisdictions as requested by the Holders)), (ii) printing expenses
(including, without limitation, expenses of printing certificates for
Registrable Securities and of printing prospectuses requested by the Holders),
(iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of
counsel for the Company and Special Counsel for the Holders and (v) fees and
expenses of all other Persons retained by the Company in connection with the
consummation of the transactions contemplated by this Agreement.

                                      -7-

<PAGE>

         5.       Indemnification

                  (a) Indemnification by the Company. The Company shall,
notwithstanding any termination of this Agreement, indemnify and hold harmless
each Holder, the officers, directors, agents, brokers (including brokers who
offer and sell Registrable Securities as principal as a result of a pledge or
any failure to perform under a margin call of Common Stock), investment advisors
and employees of each of them, each Person who controls any such Holder (within
the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act) and the officers, directors, agents and employees of each such controlling
Person, to the fullest extent permitted by applicable law, from and against any
and all losses, claims, damages, liabilities, costs (including, without
limitation, costs of preparation and attorneys' fees) and expenses
(collectively, "Losses"), as incurred, arising out of or relating to any untrue
or alleged untrue statement of a material fact contained in the Registration
Statement, any Prospectus or any form of prospectus or in any amendment or
supplement thereto or in any preliminary prospectus, or arising out of or
relating to any omission or alleged omission of a material fact required to be
stated therein or necessary to make the statements therein (in the case of any
Prospectus or form of prospectus or supplement thereto, in light of the
circumstances under which they were made) not misleading, except to the extent,
but only to the extent, that (1) such untrue statements or omissions are based
solely upon information regarding such Holder furnished in writing to the
Company by such Holder expressly for use therein, or to the extent that such
information relates to such Holder or such Holder's proposed method of
distribution of Registrable Securities and was reviewed and expressly approved
in writing by such Holder expressly for use in the Registration Statement, such
Prospectus or such form of Prospectus or in any amendment or supplement thereto
or (2) in the case of an occurrence of an event of the type specified in Section
3(d)(ii)-(vi), the use by such Holder of an outdated or defective Prospectus
after the Company has notified such Holder in writing that the Prospectus is
outdated or defective and prior to the receipt by such Holder of the Advice
contemplated in Section 6(e). The Company shall notify the Holders promptly of
the institution, threat or assertion of any Proceeding of which the Company is
aware in connection with the transactions contemplated by this Agreement.

                  (b) Indemnification by Holders. Each Holder shall, severally
and not jointly, indemnify and hold harmless the Company, its directors,
officers, agents and employees, each Person who controls the Company (within the
meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act),
and the directors, officers, agents or employees of such controlling Persons, to
the fullest extent permitted by applicable law, from and against all Losses (as
determined by a court of competent jurisdiction in a final judgment not subject
to appeal or review) arising solely out of or based solely upon any untrue
statement of a material fact contained in any Registration Statement, any
Prospectus, or any form of prospectus, or in any amendment or supplement
thereto, or arising solely out of or based solely upon any omission of a
material fact required to be stated therein or necessary to make the statements
therein not misleading to the extent, but only to the extent, that such untrue
statement or omission is contained in any information so furnished in writing by
such Holder to the Company specifically for inclusion in such Registration
Statement or such Prospectus or to the extent that (1) such untrue statements or
omissions are based solely upon information regarding such Holder furnished in
writing to the Company by such Holder expressly for use therein, or to the

                                      -8-
<PAGE>

extent that such information relates to such Holder or such Holder's proposed
method of distribution of Registrable Securities and was reviewed and expressly
approved in writing by such Holder expressly for use in the Registration
Statement, such Prospectus or such form of Prospectus or in any amendment or
supplement thereto or (2) in the case of an occurrence of an event of the type
specified in Section 3(d)(ii)-(vi), the use by such Holder of an outdated or
defective Prospectus after the Company has notified such Holder in writing that
the Prospectus is outdated or defective and prior to the receipt by such Holder
of the Advice contemplated in Section 6(e). In no event shall the liability of
any selling Holder hereunder be greater in amount than the dollar amount of the
net proceeds received by such Holder upon the sale of the Registrable Securities
giving rise to such indemnification obligation.

                  (c) Conduct of Indemnification Proceedings. If any Proceeding
shall be brought or asserted against any Person entitled to indemnity hereunder
(an "Indemnified Party"), such Indemnified Party shall promptly notify the
Person from whom indemnity is sought (the "Indemnifying Party") in writing, and
the Indemnifying Party shall assume the defense thereof, including the
employment of counsel reasonably satisfactory to the Indemnified Party and the
payment of all fees and expenses incurred in connection with defense thereof;
provided, that the failure of any Indemnified Party to give such notice shall
not relieve the Indemnifying Party of its obligations or liabilities pursuant to
this Agreement, except (and only) to the extent that it shall be finally
determined by a court of competent jurisdiction (which determination is not
subject to appeal or further review) that such failure shall have proximately
and materially adversely prejudiced the Indemnifying Party.

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

                  All fees and expenses of the Indemnified Party (including
reasonable fees and expenses to the extent incurred in connection with
investigating or preparing to defend such Proceeding in a manner not
inconsistent with this Section) shall be paid to the Indemnified Party, as
incurred, within ten Business Days of written notice thereof to the Indemnifying
Party (regardless of whether it is ultimately determined that an Indemnified
Party is not entitled to indemnification hereunder; provided, that the
Indemnifying Party may require such Indemnified Party to undertake to reimburse
all such fees and expenses to the extent it is finally judicially determined
that such Indemnified Party is not entitled to indemnification hereunder).

                                      -9-
<PAGE>

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

                  The parties hereto agree that it would not be just and
equitable if contribution pursuant to this Section 5(d) were determined by pro
rata allocation or by any other method of allocation that does not take into
account the equitable considerations referred to in the immediately preceding
paragraph. Notwithstanding the provisions of this Section 5(d), no Holder shall
be required to contribute, in the aggregate, any amount in excess of the amount
by which the proceeds actually received by such Holder from the sale of the
Registrable Securities subject to the Proceeding exceeds the amount of any
damages that such Holder has otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission or alleged omission.

                  The indemnity and contribution agreements contained in this
Section are in addition to any liability that the Indemnifying Parties may have
to the Indemnified Parties.

         6.       Miscellaneous

                  (a) Amendments and Waivers. The provisions of this Agreement,
including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given, unless the same shall be in writing and signed by the Company
and the Holders of at least two-thirds of the then outstanding Registrable
Securities. Notwithstanding the foregoing, a waiver or consent to depart from
the provisions hereof with respect to a matter that relates exclusively to the
rights of Holders and that does not directly or indirectly affect the rights of
other Holders may be given by Holders of at least a majority of the Registrable
Securities to which such waiver or consent relates; provided, however, that the
provisions of this sentence may not be amended, modified, or supplemented except
in accordance with the provisions of the immediately preceding sentence.

                                     -10-
<PAGE>

                  (b) No Inconsistent Agreements. Neither the Company nor any of
its subsidiaries has entered, as of the date hereof, nor shall the Company or
any of its subsidiaries, on or after the date of this Agreement, enter into any
agreement with respect to its securities that would have the effect of impairing
the rights granted to the Holders in this Agreement or otherwise conflicts with
the provisions hereof. Except as and to the extent specified in Schedule 6(b)
hereto, neither the Company nor any of its subsidiaries has previously entered
into any agreement granting any registration rights with respect to any of its
securities to any Person.

                  (c) No Piggyback on Registrations. Except as and to the extent
specified in Schedule 6(b) hereto, neither the Company nor any of its security
holders (other than the Holders in such capacity pursuant hereto) may include
securities of the Company in the Registration Statement other than the
Registrable Securities, and the Company shall not after the date hereof enter
into any agreement providing any such right to any of its security holders.

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

                  (e) Discontinued Disposition. Each Holder agrees by its
acquisition of such Registrable Securities that, upon receipt of a notice from
the Company of the occurrence of any event of the kind described in Sections
3(d)(ii), 3(d)(iii), 3(d)(iv), 3(d)(v) or 3(d)(vi), such Holder will forthwith
discontinue disposition of such Registrable Securities under the Registration
Statement until such Holder's receipt of the copies of the supplemented
Prospectus and/or amended Registration Statement contemplated by Section 3(h),
or until it is advised in writing (the "Advice") by the Company that the use of
the applicable Prospectus may be resumed, and, in either case, has received
copies of any additional or supplemental filings that are incorporated or deemed
to be incorporated by reference in such Prospectus or Registration Statement.
The Company may provide appropriate stop orders to enforce the provisions of
this paragraph.

                  (f) Piggy-Back Registrations. If at any time during the
Effectiveness Period there is not an effective Registration Statement covering
all of the Registrable Securities and the Company shall determine to prepare and
file with the Commission a registration statement relating to an offering for
its own account or the account of others under the Securities Act of any of its
equity securities, other than on Form S-4 or Form S-8 (each as promulgated under
the Securities Act) or their then equivalents relating to equity securities to
be issued solely in connection with any acquisition of any entity or business or
equity securities issuable in connection with stock option or other employee
benefit plans, then the Company shall send to each Holder written notice of such
determination and, if within fifteen days after receipt of such notice, any such
Holder shall so request in writing, the Company shall include in such
registration statement all or any part of such Registrable Securities such
holder requests to be registered.

                                     -11-
<PAGE>

                  (g) Notices. Any and all notices or other communications or
deliveries required or permitted to be provided hereunder shall be in writing
and shall be deemed given and effective on the earliest of (i) the date of
transmission, if such notice or communication is delivered via facsimile at the
facsimile telephone number specified in this Section prior to 6:30 p.m. (New
York City time) on a Business Day, (ii) the Business Day after the date of
transmission, if such notice or communication is delivered via facsimile at the
facsimile telephone number specified in this Agreement later than 6:30 p.m. (New
York City time) on any date and earlier than 11:59 p.m. (New York City time) on
such date, (iii) the Business Day following the date of mailing, if sent by
nationally recognized overnight courier service, or (iv) upon actual receipt by
the party to whom such notice is required to be given. The address for such
notices and communications shall be as follows:

                  If to the Company:            Digital Descriptor Systems, Inc.
                                                446 Lincoln Highway
                                                Fairless Hills, PA 19030
                                                Facsimile No.:  267-580-1090
                                                Attn: Michael J. Pellegrino

                  With copies to:               Owen M. Naccarato, Esq.
                                                19600 Fairchild, Suite 260
                                                Irvine, CA  92612
                                                Facsimile No.: (949) 851-9262
                                                Attn: Owen M. Naccarato, Esq.

                  If to a Purchaser:            To the address set forth under
                                                such Purchaser's name on the
                                                signature pages hereto.

         If to any other Person who is then the registered Holder:

                                                To the address of such Holder
                                                as it appears in the stock
                                                transfer books of the Company

or such other address as may be designated in writing hereafter, in the same
manner, by such Person.

                  (h) Successors and Assigns. This Agreement shall inure to the
benefit of and be binding upon the successors and permitted assigns of each of
the parties and shall inure to the benefit of each Holder. The Company may not
assign its rights or obligations hereunder without the prior written consent of
each Holder. Each Holder may assign their respective rights hereunder in the
manner and to the Persons as permitted under the Purchase Agreement.

                                     -12-
<PAGE>

                  (i) Counterparts. This Agreement may be executed in any number
of counterparts, each of which when so executed shall be deemed to be an
original and, all of which taken together shall constitute one and the same
Agreement. In the event that any signature is delivered by facsimile
transmission, such signature shall create a valid binding obligation of the
party executing (or on whose behalf such signature is executed) the same with
the same force and effect as if such facsimile signature were the original
thereof.

                  (j) Governing Law. All questions concerning the construction,
validity, enforcement and interpretation of this Agreement shall be governed by
and construed and enforced in accordance with the internal laws of the State of
New York, without regard to the principles of conflicts of law thereof. Each
party hereby irrevocably submits to the exclusive jurisdiction of the state and
federal courts sitting in the City of New York, borough of Manhattan, for the
adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that
such suit, action or proceeding is improper. Each party hereby irrevocably
waives personal service of process and consents to process being served in any
such suit, action or proceeding by mailing a copy thereof to such party at the
address in effect for notices to it under this Agreement and agrees that such
service shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law.

                  (k) Cumulative Remedies. The remedies provided herein are
cumulative and not exclusive of any remedies provided by law.

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

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

                                     -13-

<PAGE>

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

                   [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                           SIGNATURE PAGES TO FOLLOW]

                                     -14-

<PAGE>

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

                                    DIGITAL DESCRIPTOR SYSTEMS, INC.

                                    By:  /s/ Michael J. Pellegrino
                                         --------------------------
                                         Name:Michael J. Pellegrino
                                         Title:  Chief Financial Officer

                   [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                     SIGNATURE PAGES OF PURCHASER TO FOLLOW]

                                     -15-

<PAGE>

                          AJW PARTNERS, LLC
                          By: SMS Group, LLC

                          By:_____________________________________
                             Name: Corey S. Ribotsky
                             Title:

                          Address for Notice:

                          AJW Partners, LLC
                          155 First Street
                          Suite B
                          Mineola, New York 11501
                          Facsimile No.:  (516) 739-7115

                          With copies to:
                          Robinson Silverman Pearce Aronsohn & Berman LLP
                          1290 Avenue of the Americas
                          New York, NY  10104
                          Facsimile No.:  (212) 541-4630 and (212) 541-1432
                          Attn: Eric L. Cohen, Esq.

                                     -16-

<PAGE>

                            NEW MILLENNIUM CAPITAL PARTNERS II, LLC
                            By: First Street Manager II, LLC

                            By:_____________________________________
                               Name: Glenn A. Arbeitman
                               Title:

                            Address for Notice:

                            New Millennium Capital Partners II, LLC
                            155 First Street
                            Suite B
                            Mineola, New York 11501
                            Facsimile No.:  (516) 739-7115

                            With copies to:
                            Robinson Silverman Pearce Aronsohn & Berman LLP
                            1290 Avenue of the Americas
                            New York, NY  10104
                            Facsimile No.:  (212) 541-4630 and (212) 541-1432
                            Attn: Eric L. Cohen, Esq.

                                     -17-

<PAGE>

                                                                        Annex A

                              Plan of Distribution

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

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

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

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

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

o        privately negotiated transactions;

o        short sales;

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

o        a combination of any such methods of sale; and

o        any other method permitted pursuant to applicable law.

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

         The Selling Stockholders may also engage in short sales against the
box, puts and calls and other transactions in securities of the Company or
derivatives of Company securities and may sell or deliver shares in connection
with these trades. The Selling Stockholders may pledge their shares to their
brokers under the margin provisions of customer agreements. If a Selling
Stockholder defaults on a margin loan, the broker may, from time to time, offer
and sell the pledged shares. The Selling Stockholders have advised the Company
that they have not entered into any agreements, understandings or arrangements
with any underwriters or broker-dealers regarding the sale of their shares other
than ordinary course brokerage arrangements, nor is there an underwriter or
coordinating broker acting in connection with the proposed sale of shares by the
Selling Stockholders.

                                     -18-
<PAGE>

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

         The Selling Stockholders and any broker-dealers or agents that are
involved in selling the shares may be deemed to be "underwriters" within the
meaning of the Securities Act in connection with such sales. In such event, any
commissions received by such broker-dealers or agents and any profit on the
resale of the shares purchased by them may be deemed to be underwriting
commissions or discounts under the Securities Act.

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

                                     -19-<PAGE>

                              10% CONVERTIBLE NOTE

$40,000

                           Date of Issue: May 7, 2001

Digital Descriptor Systems, Inc. (a Delaware corporation) (hereinafter referred
to as the "Company" or "Borrower") is indebted and, for value received, herewith
promises to pay to:

                                  ROBERT GOWELL

or to his order, (together with any assignee, jointly or severally, the "Holder"
or "Lender") on the date which is six (6) months following the date of issue
(the "Original Due Date"), unless later extended by the Lender, in his sole
discretion, by Lender delivering written notice to Borrower within five (5)
business days prior to the Original Due Date of his desire to extend such
maturity, which notice shall contain the new maturity date which shall not be
more than 180 days following the Original Due Date (the "Due Date"), the sum of
FORTY THOUSAND DOLLARS ($40,000), or, if less, so much thereof as may be
outstanding from time to time (the "Principal Amount") and to pay interest on
the Principal Amount at the rate of Ten percent (10%) per annum as provided
herein. In furtherance thereof, and in consideration of the premises, covenants,
promises, representations and warranties hereinafter set forth the Borrower
hereby agrees as follows:

         1.   Interest. Interest on the Principal Amount outstanding from time
              to time shall accrue at the rate of 10% per annum, shall be based
              on a year of 360 days and shall be payable on the Original Due
              Date, or if Lender extends such date, the Due Date. Overdue
              principal and interest on the Note shall, to the extent permitted
              by applicable law, bear interest at the rate of 10% per annum. All
              payments of both principal and interest, shall be made at the
              address of the Holder hereof as it appears in the books and
              records of the Borrower, or at such other place as may be
              designated by the Holder hereof. Payments of both principal and
              interest are to be made in lawful money of the United States.

         2.   Maturity. If not converted by the Holder as hereinafter set forth,
              this Note shall mature on the Original Due Date or if Lender
              extends such Date, the Due Date at which time all then remaining
              unpaid principal, interest and any other charges then due
              hereunder shall be due and payable in full.

         3.   Prepayment. The principal amount hereof, together with interest
              thereon, may be prepaid, in whole or in part, prior to the
              scheduled maturity of this Note without premium or penalty. The
              Holder's conversion rights under paragraph 4 shall be extinguished
              if and to the extent that the Note is paid before the Holder gives
              its "Conversion Notice," as the term is defined in paragraph 4.

         4.   Conversion Right. The Holder of this Note shall have the right at
              Holder's sole option, at any time after the date which is thirty
              (30) days prior to the Original Due Date, or at any time during
              any extension of maturity

<PAGE>

              provided by Lender in accordance with the first paragraph of this
              Note, to convert all or, in multiples of $5,000, any part of this
              Note into such number of fully paid and nonassessable shares of
              common stock, $.001 par value, of the Company (the "Common Stock")
              as shall be provided herein. The Holder may exercise the
              conversion right by giving written notice (the "Conversion
              Notice") to Borrower of the exercise of such right and stating the
              name or names in which the stock certificate or stock certificates
              for the shares of Common Stock are to be issued and the address to
              which such certificates shall be delivered. The Conversion Notice
              shall be accompanied by a duly executed assignment of the portion
              of the Note that Holder desires to convert. The number of shares
              of Common Stock that shall be issuable upon conversion of the Note
              or any portion thereof shall equal the face amount of the Note or
              portion thereof divided by the Conversion Price as defined below
              and in effect on the date the Conversion Notice is given.
              Conversion shall be deemed to have been effected on the date the
              Conversion Notice is given (the "Conversion Date"). Within ten
              (10) business days after receipt of the Conversion Notice,
              Borrower shall issue and deliver by hand against a signed receipt
              therefor or by United States registered mail return receipt
              requested, to the address designated in the Conversion Notice, a
              stock certificate or stock certificates of Borrower representing
              the number of shares of Common Stock to which Holder is entitled
              and (if applicable) a check or cash in payment of all interest
              accrued and unpaid on the Note up to and including the Conversion
              Date unless Holder elects to apply such interest to the Conversion
              Price in accordance with Section 4(c) below. The conversion rights
              will be governed by the following provisions:

              (a)  Conversion Price: On the issue date hereof and until such
         time as an adjustment shall occur, the Conversion Price per share shall
         be an amount equal to 50% of the mean average price of the common stock
         of the Borrower for the ten (10) trading days prior to notice of
         conversion per share; provided, however, that the Conversion Price
         shall be subject to adjustment at the times, and in accordance with the
         provisions, as follows:

                   i) Adjustment of Issuance of Shares at less than the
                   Conversion Price: If and whenever any shares of Additional
                   Common Stock (as defined below) shall be issued by the
                   Company (the "Stock Issue Date") for a consideration per
                   share less than the Conversion Price, then in each such case
                   the Conversion Price shall be reduced to a new Conversion
                   Price in amount equal to the consideration per share received
                   by the Company for the shares of Additional Common Stock then
                   issued; and, in the case of shares issued without
                   consideration, the initial Conversion Price shall be reduced
                   in amount and the number of shares issued upon conversion
                   shall be increased in an amount so as to maintain for the
                   Holder the right to convert the Note into shares equal in
                   amount to the same percentage interest in the Common Stock of
                   the Company as existed for the Holder immediately preceding
                   the Stock Issue Date.

                   ii) Sale of Shares: In the event of the issuance of shares of
                   Additional Common Stock for a consideration part or all of
                   which shall be cash, the amount of the cash consideration

                                       2
<PAGE>

                   therefor shall be deemed to be the amount of the cash
                   received by the Company for such shares, after any
                   compensation or discount in the sale, underwriting or
                   purchase thereof by underwriters or dealers or others
                   performing similar services or for any expenses incurred in
                   connection therewith.

                   iii) Reclassification of Shares: In case of the
                   reclassification of securities into shares of Common Stock,
                   the shares of Common Stock issued in such reclassification
                   shall be deemed to have been issued for a consideration other
                   than cash. Shares of Additional Common Stock issued by way of
                   dividend or other distribution on any class of stock of the
                   Company shall be deemed to have been issued without
                   consideration.

                   iv) Split-up or Combination of Shares: In the event issued
                   and outstanding shares of Common Stock shall be subdivided or
                   split up into a greater number of shares of the Common Stock,
                   the Conversion Price shall be proportionately decreased, and
                   in the event issued and outstanding shares of Common Stock
                   shall be combined into a smaller number of shares of Common
                   Stock, the Conversion Price shall be proportionately
                   increased, such increase or decrease, as the case may be,
                   becoming effective at the time of record of the split-up or
                   combination, as the case may be.

                   v) Additional Common Stock: The term "Additional Common
                   Stock" herein shall mean all shares of Common Stock hereafter
                   issued by the Company (including Common Stock held in the
                   treasury of the Company), except Common Stock issued upon the
                   conversion of any portion of the Note.

              (b)  Adjustment for Mergers, Consolidations, Etc.:

                   i) In the event of distribution to all Common Stock holders
                   of any stock, indebtedness of the Company or assets
                   (excluding cash dividends or distributions from retained
                   earnings) or other rights to purchase securities or assets,
                   then, after such event, the Note will be convertible into the
                   kind and amount of securities, cash and other property which
                   the Holder of the Note would have been entitled to receive if
                   the Holder owned the Common Stock issuable upon conversion of
                   the Note immediately prior to the occurrence of such event.

                   ii) In the event of any capital reorganization,
                   reclassification of the stock of the Company (other than a
                   change in par value or as a result of a stock dividend,
                   subdivision, split up or combination of shares), or
                   consolidation or merger of the Company with or into another
                   person or entity (other than a consolidation or merger in
                   which the Company is the continuing corporation and which
                   does not result in any change in the Common Stock) or of the
                   sale, exchange, lease, transfer or other disposition of all
                   or substantially all of the properties and assets of the
                   Company as an entirety or the participation by the Company in
                   an exchange of shares as the corporation the stock of which
                   is to be acquired, this Note shall be convertible into the

                                       3
<PAGE>

                   kind and number of shares of stock or other securities or
                   property of the Company (or of the corporation resulting from
                   such consolidation or surviving such merger or to which such
                   properties and assets shall have been sold, exchanged,
                   leased, transferred or otherwise disposed, or which was the
                   corporation whose securities were exchanged for those of the
                   Company), to which the Holder of the Note would have been
                   entitled to receive if the Holder owned the Common Stock
                   issuable upon conversion of the Note immediately prior to the
                   occurrence of such event. The provisions of the foregoing
                   sentences of this Section 4(b)(ii) shall similarly apply to
                   successive reorganizations, reclassifications,
                   consolidations, mergers, sales, exchanges, leases, transfers
                   or other dispositions or other share exchanges.

                   iii) Notice of Adjustment: (A) In the event the Company shall
                   propose to take any action which shall result in an
                   adjustment in the Conversion Price, the Company shall give
                   notice to the Holder, which notice shall specify the record
                   date, if any, with respect to such action and the date on
                   which such action is to take place. Such notice shall be
                   given on or before the earlier of thirty (30) days before the
                   record date or the date which such action shall be taken.
                   Such notice shall also set forth all facts material to the
                   effect of such action on the Conversion Price and the number,
                   kind or class of shares or other securities or property which
                   shall be deliverable or purchasable upon the occurrence of
                   such action or deliverable upon conversion of this Note. (B)
                   Following completion of an event wherein the Conversion Price
                   shall be adjusted, the Company shall furnish to the Holder a
                   statement, signed by the Chief Executive Officer of the
                   Company, of the facts creating such adjustment and specifying
                   the resultant adjusted Conversion Price then in effect.

              (c) The Holder may, at his sole option, apply any accrued interest
         and/or principal outstanding on the Conversion Date towards the
         Conversion Price.

         5.   Reservation of Shares. Borrower warrants and agrees that it shall
              at all times reserve and keep available, free from preemptive
              rights, sufficient authorized and unissued, or of treasury, shares
              of Common Stock to effect conversion of this Note upon the terms
              and conditions contained herein.

         6.   Registration Rights. The Borrower has filed a Registration
              Statement on Form SB-2 under the United States Security Act of
              1933 and has included this Convertible Note and the underlying
              common stock thereunder from transfer by the Holder except if and
              unless the shares are duly registered for sale pursuant to the
              Securities Act of 1993, as amended, or the transfer is duly exempt
              from registration.

         7.   Taxes. The Borrower shall pay any documentary or other
              transactional taxes attributable to the issuance or delivery of
              this Note or the shares of Common Stock issued upon conversion by
              the Holder (excluding any federal, state or local income taxes and

                                       4
<PAGE>

              any franchise taxes or taxes imposed upon the Holder by the
              jurisdiction, or any political subdivision thereof, under which
              such Holder is organized or is qualified to do business).

         8.   Default.

              (a)  Event of Default: An "Event of Default" shall exist if any
              one or more of the following events (herein collectively called
              "Events of Default") shall occur and be continuing:

                   i) Borrower shall fail to pay (or shall state in writing an
                   intention not to pay or its inability to pay), when due or no
                   later than 10 days thereof, any installment of interest on or
                   principal of, the Note or any fee, expense or other payment
                   required hereunder;

                   ii) Any representation or warranty made under this Note shall
                   prove to be untrue or inaccurate in any material respect as
                   of the date on which such representation or warranty is made;

                   iii) Default in the performance of any of the covenants or
                   agreements of Borrower contained under the Note, which
                   default is not remedied within thirty (30) days after written
                   notice thereof to Borrower from Lender, provided that such
                   thirty (30) day grace period shall not apply to default of
                   any payment requirement or notice covenant made by Borrower;

                   iv) Borrower and/or its subsidiaries and/or affiliates, if
                   any, shall (A) apply for or consent to the appointment of a
                   receiver, trustee, custodian, intervenor or liquidator of
                   itself, or of all or substantially all, of its assets, (B)
                   file a voluntary petition in bankruptcy, admit in writing
                   that it is unable to pay its debts as they become due or
                   generally not pay its debts as they become due, (C) make a
                   general assignment for the benefit of creditors, (D) file a
                   petition or answer seeking reorganization of an arrangement
                   with creditors or to take advantage of any bankruptcy or
                   insolvency laws, (E) file an answer admitting the material
                   allegations of, or consent to, or default in answering, a
                   petition filed against it in any bankruptcy, reorganization
                   or insolvency proceeding, or (F) take corporate action for
                   the purpose of effecting any of the foregoing;

                   v) An involuntary petition or complaint shall be filed
                   against Borrower or any of its subsidiaries, if any, seeking
                   its bankruptcy or reorganization or the appointment of a
                   receiver, custodian, trustee, intervenor or liquidator, or
                   all or substantially all of Borrower's assets, and such
                   petition or complaint shall not have been dismissed within
                   sixty (60) days of the filing thereof or an order, order for
                   relief judgement or decree shall be entered by any court of
                   competent jurisdiction or other competent authority approving
                   a petition or complaint seeking reorganization of Borrower or
                   its subsidiary, if any, or appointing a receiver, custodian,
                   trustee, intervenor or liquidator of such person, or of all
                   or substantially all of such person' assets; or

                                       5
<PAGE>

                   vi) The failure of Borrower to issue and deliver shares of
                   Common Stock as provided herein upon conversion of the Note.

              (b)  Remedies upon Event of Default: If an Event of Default shall
              have occurred and be continuing, then Lender may exercise any one
              or more of the following rights and remedies:

                   i) declare the unpaid Principal Amount of, and all interest
                   then accrued but unpaid on, the Note and any other
                   liabilities hereunder to be forthwith due and payable,
                   whereupon the same shall forthwith become due and payable
                   without presentment, demand, protest, notice of default,
                   notice of acceleration or of intention to accelerate or other
                   notice of any kind, all of which Borrower hereby expressly
                   waives, anything contained herein or in the Note to the
                   contrary notwithstanding in which event the Lender may, in
                   its sole discretion, immediately exercise its conversion
                   rights provided for in Section 4 hereof,

                   ii) reduce any claim to judgment, and/or;

              (c)  Remedies Nonexclusive: Each right, power or remedy of the
              Holder upon the occurrence of any Event of Default as provided for
              in this Note or now or hereafter existing at law or in equity or
              by statute shall be cumulative and concurrent and shall be in
              addition to every other right, power or remedy provided for in
              this Note or now or hereafter existing at law or in equity or by
              statute, and the exercise or beginning of the exercise by the
              Holder of any one or more of such rights, powers or remedies shall
              not preclude the simultaneous or later exercise by the Holder of
              any or all such other rights, powers or remedies.

              (d)  Expenses: Upon the occurrence of a Default or an Event of
              Default, which occurrence is not cured within the applicable grace
              period, if any provided therefor, Borrower agrees to pay and shall
              pay all costs and expenses (including Lender's attorney's fees and
              expenses) reasonably incurred by Lender in connection with the
              preservation and enforcement of Lender's rights under the Note.

         9.   Failure to Act and Waiver. No failure or delay by the Holder to
              require the performance of any term or terms of this Note or nor
              to exercise any right, or any remedy shall constitute a waiver of
              any such term or of any right or of any default, nor shall such
              delay or failure preclude the Holder from exercising any such
              right, power or remedy at any later time or times. By accepting
              payment after the due date of any amount payable under this Note,
              the Holder shall not be deemed to waive the right either to
              require payment when due of all other amounts payable, or to later
              declare a default for failure to effect such payment of any such
              other amount. The failure of the Holder of this Note to give
              notice of any failure or breach of the Borrower under the Note
              shall not constitute a waiver of any right or remedy in respect of
              such continuing failure or breach or any subsequent failure or
              breach.

                                       6
<PAGE>

         10.  Consent to Jurisdiction. The Borrower hereby agrees and consents
              that any action, suit or proceeding arising out of this Note may
              be brought in any appropriate court in the State of Illinois
              including the United States District Court for the Northern
              District of Illinois, or in any other court having jurisdiction
              over the subject matter, all at the sole election of the Holder
              hereof, and by the issuance and execution of this Note the
              Borrower irrevocably consents to the jurisdiction of each such
              court. Borrower irrevocably consents to the service of any
              complaint, summons, notice or other process relating to any action
              or proceeding by delivery thereof to it by hand or by any other
              manner provided for in Section 11 hereof.

         11.  Notices. All notices and communications under this Note shall be
              in writing and shall be either delivered in person and accompanied
              by a signed receipt therefor, or mailed first-class United States
              certified mail return receipt requested, postage prepaid, and
              addressed as follows; (i) if to the Borrower at 446 Lincoln
              Highway, Fairless Hills, Pennsylvania 19030; and, (ii) if to the
              Holder of this Note, to the address (a) of such Holder as it
              appears on the books of the Borrower if, or (b) in the case of a
              partial assignment to one or more Holder(s), to the Lender's agent
              for notice, if applicable. Any notice of communication shall be
              deemed given and received as of the date of such delivery of
              delivered; or if mailed, then three days after the date of
              mailing.

         12.  GOVERNING LAW. THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED AND
              ENFORCED IN ACCORDANCE WITH THE LAWS OF COMMONWEALTH OF
              PENNSYLVANIA.

                                      * * *

         IN WITNESS WHEREOF, the undersigned Borrower have caused this Note to
be duly executed under its corporate seal on the date of issue above stated.

                                    BORROWER

Address for Notice                          Digital Descriptor Systems, Inc.

                                            By: /s/ Garrett U. Cohn
                                                --------------------------------
                                            Title:  President

                                            Attest by: /s/ Michael J. Pellegrino
                                                       -------------------------
                                            Title:  Secretary

                                       7
<PAGE>

                                    EXHIBIT A

                              NOTICE OF CONVERSION

(To be Executed by the Registered Holder
in order to Convert the Debenture)

The undersigned hereby elects to convert the attached Debenture into shares of
common stock, $0.001 par value per share (the "Common Stock"), of Digital
Descriptor Systems, Inc. (the "Company") according to the conditions hereof, as
of the date written below. If shares are to be issued in the name of a person
other than the undersigned, the undersigned will pay all transfer taxes payable
with respect thereto and is delivering herewith such certificates and opinions
as reasonably requested by the Company in accordance therewith. No fee will be
charged to the bolder for any conversion, except for such transfer taxes, if
any.

Conversion calculations:

                                  Date to Effect Conversion

                                  Principal Amount of Debentures to be Converted

                                  Payment of Interest in Kind  [ ] Yes  [ ] No
                                  If yes, $_______ of Interest Accrued on
                                  Account of Conversion at Issue

                                  Number of shares of Common Stock to be issued

                                  Applicable Conversion Price

                                  Signature

                                  Name

                                  Address

                                       8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00029-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00029-of-00352.parquet"}]]