Document:

EXHIBIT 10.2

                         AMENDMENT TO AGREEMENT AND PLAN
                          OF MERGER AND REORGANIZATION

         THIS AMENDMENT (the "Amendment") to the Agreement and Plan of Merger
and Reorganization (the "Merger Agreement"), dated as of September 28, 1999, by
and between ITI Technologies, Inc., a Delaware corporation ("ITI"), and SLC
Technologies, Inc., a Delaware corporation ("SLC"), is entered into as of March
9, 2000.

         WHEREAS, pursuant to the Merger Agreement, SLC shall be merged with and
into ITI (the "Merger") upon the terms and subject to the conditions set forth
therein; and

         WHEREAS, SLC and ITI desire to amend and restate the cash election
procedures contained in the Merger Agreement.

         NOW, THEREFORE, the parties hereby agree to amend the Merger Agreement
as follows:

         Section 1.6 of the Merger Agreement is deleted in its entirety and
replaced as follows:

"Section 1.6 Cash Election Procedures.

(a)      Subject to Section 1.6(b), each record holder of ITI Common Stock at
         the close of business on the business day immediately preceding the ITI
         Stockholder Meeting (as defined in Section 5.1) will be entitled to
         elect to receive cash for all or some of the shares of ITI Common Stock
         ("Cash Election Shares") held by such record holder. All such elections
         (each an "Election") shall be made on a form designated for that
         purpose by ITI and reasonably acceptable to SLC (an "Election Form")
         and in accordance with all applicable laws. Any shares of ITI Common
         Stock with respect to which the record holder thereof shall not, as of
         the Election Deadline (as defined below), have properly submitted to
         the Exchange Agent (as defined below) a properly completed Election
         Form shall be deemed not to have elected to receive cash pursuant to
         Section 1.5(b) and this Section 1.6. A record holder acting in
         different capacities or acting on behalf of other persons in any way
         shall be entitled to submit an Election Form for each capacity in which
         such record holder so acts with respect to each person for which it so
         acts. The exchange agent (the "Exchange Agent") shall be Norwest Bank,
         N.A., or other reputable bank or trust company jointly selected by ITI
         and SLC.

(b)      At the Effective Time or three business days after the Election
         Deadline, whichever is later, ITI shall cause the Exchange Agent to
         effect the conversions among the holders of ITI Common Stock of rights
         to receive the Per Share Cash Consideration in the Merger as follows:
         If the aggregate number of Cash Election Shares properly elected
         represents more than 50% of the number of shares of ITI Common Stock
         issued and outstanding immediately prior to the Effective Time (on the
         basis of Election Forms received by the Election Deadline), then the
         Exchange Agent shall reduce (pro rata according to each holder's total
         number of Cash Election Shares of those holders who made an Election),
         rounded to the nearest whole share, a sufficient number of Cash
         Election Shares such that the total number of Cash Election Shares
         represents, as closely as practicable, 50% of the number of shares of
         ITI Common Stock issued and outstanding immediately prior to the
         Effective Time.

(c)      Not later than the 20th business day prior to the date of the ITI
         Stockholder Meeting, or such other date as ITI and SLC may agree in
         writing, ITI shall mail an Election Form to each person that was a
         holder of record of ITI Common Stock at that time. To be effective, an
         Election Form

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         must be properly completed, signed and actually received by the
         Exchange Agent not later than 5:00 p.m. prevailing Central Time, on the
         business day immediately preceding the ITI Stockholder Meeting (the
         "Election Deadline") and accompanied by the certificates representing
         all the shares of ITI Common Stock ("ITI Certificates") as to which the
         Election is being made (or an appropriate guarantee of delivery by an
         eligible organization or provision for lost, stolen, misplaced or
         destroyed certificates acceptable to the Exchange Agent). The Election
         Form (which shall specify that delivery shall be effected and the risk
         of loss and title to the ITI Certificates (and the payment right
         represented by such certificates) shall pass only upon proper delivery
         of such ITI Certificates to the Exchange Agent) will advise the holders
         of ITI Certificates of the procedure for surrendering to the Exchange
         Agent such certificates in exchange for the Per Share Cash
         Consideration. ITI shall have reasonable discretion, which it may
         delegate in whole or in part to the Exchange Agent, to determine
         whether Election Forms have been properly completed, signed and timely
         submitted or to disregard defects in Election Forms; such decisions of
         ITI (or of the Exchange Agent) shall be conclusive and binding. ITI
         shall consult with SLC on any significant issues regarding any Election
         Form. None of SLC, ITI or the Exchange Agent shall be under any
         obligation to notify any person of any defect in an Election Form
         submitted to the Exchange Agent. The Exchange Agent shall also make,
         and ITI shall verify, all computations contemplated by this Section
         1.6, and all such computations shall be conclusive and binding on the
         holders or former holders of ITI Common Stock, absent manifest error.
         The Exchange Agent shall promptly provide ITI and SLC with a copy of
         the completed computation. Shares of ITI Common Stock covered by an
         Election Form which is not effective shall be treated as if no Election
         has been made with respect to such shares of ITI Common Stock. Once an
         Election is made it may not be revoked unless such revocation has been
         communicated in writing to the Exchange Agent prior to the Election
         Deadline. The Exchange Agent shall cause to be properly reissued ITI
         Certificates representing ITI Common Stock as to which the Election is
         not applicable."

         IN WITNESS WHEREOF, ITI and SLC have caused this Agreement to be signed
by their respective officers thereunto duly authorized all as of this 9th day of
March, 2000.

                                       ITI TECHNOLOGIES, INC.

                                       By       /s/ Thomas L. Auth
                                          ------------------------------------
                                       Thomas L. Auth
                                         Chief Executive Officer and President

                                       SLC TECHNOLOGIES, INC.

                                       By       /s/ Kenneth L. Boyda
                                          ------------------------------------
                                       Kenneth L. Boyda
                                       Chief Executive Officer and President

                                       2Exhibit 10.1

                          REGISTRATION RIGHTS AGREEMENT

         REGISTRATION RIGHTS AGREEMENT (this "Agreement"), dated as of March 24,
2000, by and among Entrade Inc., a Pennsylvania  corporation,  with headquarters
located at 500 Central Avenue,  Northfield,  Illinois 60093 (the "Company"), and
the undersigned Buyers (individually a "Buyer" and collectively the "Buyers").

         WHEREAS:

         A. In connection  with the Securities  Purchase  Agreement of even date
herewith by and among the parties hereto (the "Securities Purchase  Agreement"),
the  Company has agreed,  upon the terms and  subject to the  conditions  of the
Securities Purchase Agreement, to issue and sell to the Buyers (i) 30,000 shares
of the Company's  Series A  Convertible  Preferred  Stock,  par value $1,000 per
share (the  "Preferred  Shares"),  which  will be  convertible  into  shares (as
converted,  the "Conversion Shares") of the Company's common stock, no par value
per share (the "Common  Stock"),  in accordance  with the terms of the Company's
Statement  with Respect to Shares  stating the  designation  and voting  rights,
preferences, limitation and special rights of its Series A Convertible Preferred
Stock (the "Statement of Designations"), and (ii) warrants to purchase shares of
Common Stock (the "Warrants" and, as exercised, the "Warrant Shares").

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

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

         1.       DEFINITIONS.

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

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

                  b. "Person" means an individual,  a limited liability company,
a  partnership,  a joint  venture,  a corporation,  a trust,  an  unincorporated
organization, a government or any department or agency thereof.

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

                  d.  "Registrable  Securities"  means (i) the Conversion Shares
issued or issuable upon  conversion of the Preferred  Shares,  (ii) the Dividend
Shares (as defined in the Statement of  Designations)  relating to the Preferred
Shares,  (iii) Warrant  Shares issued or issuable upon exercise of the Warrants,
and (iv) any shares of capital  stock  issued or  issuable  with  respect to the
Conversion  Shares,  the Preferred  Shares,  the Dividend Shares relating to the
Preferred  Shares,  the Warrant  Shares or the Warrants as a result of any stock
split, stock dividend, recapitalization, exchange or similar event or otherwise,
without regard to any  limitations  on  conversions  of the Preferred  Shares or
exercises of Warrants.

                  e. "Registration  Statement" means a registration statement or
registration  statements  of the Company  filed under the 1933 Act  covering the
Registrable Securities.

         2.       REGISTRATION.

                  a. Mandatory Registration.  The Company shall prepare, and, as
soon as practicable,  but in no event later than September 30, 2000 (the "Filing
Deadline"),   file  with  the  SEC  a  Registration  Statement  or  Registration
Statements  (as  necessary)  on  Form  S-3  covering  the  resale  of all of the
Registrable  Securities.  In the event that Form S-3 is  unavailable  for such a
registration,  the Company  shall use such other form as is available for such a
registration,  subject to the provisions of Section 2(d). Any first Registration
Statement  prepared  pursuant  hereto  shall  register  for resale at least that
number of shares of Common  Stock  equal to the sum of (y) the  product of (i) 2
and (ii) the  number  of  Conversion  Shares  issuable  upon  conversion  of the
Preferred  Shares  (without  regard to any limitations on conversions) as of the
date  immediately  preceding  the date the  Registration  Statement is initially
filed with the SEC,  subject to adjustment as provided in Section 2(f), plus (z)
100% of the number of Warrant  Shares  issuable  upon  exercise of the  Warrants
(without  regard to any  limitations  on  exercise)  as of the date  immediately
preceding the date the  Registration  Statement is initially filed with the SEC,
subject to adjustment as provided in Section 2(f).  The Company shall cause such
Registration  Statement to be declared effective by the SEC as soon as possible,
but in no event  later than the date which is 90 days after the Filing  Deadline
(the "Effectiveness Deadline").

                  b. Allocation of Registrable Securities. The initial number of
Registrable  Securities included in any Registration Statement and each increase
in the number of Registrable  Securities included therein shall be allocated pro
rata among the Investors  based on the number of Registrable  Securities held by
each  Investor at the time the  Registration  Statement  covering  such  initial
number of Registrable  Securities or increase  thereof is declared  effective by
the SEC. In

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<PAGE>

the event that an Investor sells or otherwise  transfers any of such  Investor's
Registrable Securities, each transferee shall be allocated a pro rata portion of
the  then  remaining   number  of  Registrable   Securities   included  in  such
Registration Statement for such transferor.  Any shares of Common Stock included
in a  Registration  Statement  and which  remain  allocated  to any Person which
ceases to hold any Registrable Securities covered by such Registration Statement
shall be allocated to the remaining  Investors,  pro rata based on the number of
Registrable  Securities  then held by such  Investors  which are covered by such
Registration Statement.

                  c. Legal  Counsel.  Subject  to  Section 5 hereof,  the Buyers
holding a majority of the Registrable  Securities shall have the right to select
one legal counsel to review and oversee any offering  pursuant to this Section 2
("Legal Counsel"), which shall be Katten Muchin & Zavis or such other counsel as
thereafter  designated by the holders of a majority of  Registrable  Securities.
The Company shall  reasonably  cooperate  with Legal  Counsel in performing  the
Company's obligations under this Agreement.

                  d.  Ineligibility  for Form S-3. In the event that Form S-3 is
not  available  for the  registration  of the resale of  Registrable  Securities
hereunder,  the  Company  shall  (i)  register  the  resale  of the  Registrable
Securities on another appropriate form and (ii) undertake to register the resale
of the  Registrable  Securities  on Form S-3 as soon as such form is  available,
provided that the Company shall maintain the  effectiveness  of the Registration
Statement then in effect until such time as a Registration Statement on Form S-3
covering the Registrable Securities has been declared effective by the SEC.

                  e.  Effect  of  Failure  to  File  and  Obtain  and   Maintain
Effectiveness  of  Registration  Statement.  If  (i)  a  Registration  Statement
covering all the Registrable  Securities and required to be filed by the Company
pursuant  to this  Agreement  is not (A)  filed  with the SEC on or  before  the
applicable Filing Deadline or (B) declared effective by the SEC on or before the
applicable  Effectiveness  Deadline  or (ii) on any day after  the  Registration
Statement has been declared  effective by the SEC, sales of all the  Registrable
Securities required to be included on such Registration Statement cannot be made
pursuant to the Registration Statement (including,  without limitation,  because
of a failure to keep the  Registration  Statement  effective,  to disclose  such
information  as is necessary for sales to be made  pursuant to the  Registration
Statement,  to register  sufficient shares of Common Stock) for a period of more
than five (5)  consecutive  days or more than ten (10) days in a 365-day  period
(including  days during Grace  Periods (as defined in Section  3(t))),  then, as
partial  relief for the  damages to any holder by reason of any such delay in or
reduction  of its ability to sell the  underlying  shares of Common Stock (which
remedy  shall not be  exclusive  of any other  remedies  available  at law or in
equity),  the Company shall pay to each holder of Preferred  Shares an amount in
cash per Preferred  Share held equal to the product of (i) $1,000  multiplied by
(ii) the sum of (A) 0.015,  if the  Registration  Statement  is not filed by the
Filing Deadline,  plus (B) 0.015, if the Registration  Statement is not declared
effective  by the  Effectiveness  Deadline,  plus,  (C) the product of (I) .0005
multiplied  by (II) the sum of (x) the number of days after the Filing  Deadline
that such Registration  Statement is not filed with the SEC, plus (y) the number
of days after the Effectiveness  Deadline that the Registration Statement is not
declared effective by the SEC, plus (z)

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<PAGE>

the number of days after the Registration  Statement has been declared effective
by the SEC that such Registration  Statement is not available for the sale of at
least  all  the  Registrable   Securities   required  to  be  included  on  such
Registration  Statement and in excess of five (5) consecutive  days or in excess
of ten (10) days in a 365-day period (including days during Grace Periods).  The
payments to which a holder  shall be entitled  pursuant to this Section 2(e) are
referred to herein as "Registration Delay Payments." Registration Delay Payments
shall be paid on the earlier of (I) the last day of the  calendar  month  during
which such Registration  Delay Payments are incurred and (II) the third business
day after the event or failure giving rise to the Registration  Delayed Payments
is cured. In the event the Company fails to make Registration  Delay Payments in
a timely  manner,  such  Registration  Delay Payments shall bear interest at the
rate of 1.5% per month (prorated for partial months) until paid in full.

                  f. Sufficient  Number of Shares  Registered.  In the event the
number of shares  available  under a  Registration  Statement  filed pursuant to
Section 2(a) is insufficient to cover all of the  Registrable  Securities  which
such  Registration  Statement  is required to cover or an  Investor's  allocated
portion of the  Registrable  Securities  pursuant to Section  2(b),  the Company
shall amend the Registration Statement, or file a new Registration Statement (on
the short form available  therefor,  if applicable),  or both, so as to cover at
least that number of shares of Common  Stock equal to the sum of (x) the product
of (i) 2 and (ii) the number of Conversion  Shares  issuable upon  conversion of
the Preferred Shares (without regard to any limitations on conversion) as of the
date immediately preceding the date such amendment or new Registration Statement
is filed  with the SEC,  plus (y) the  number of Warrant  Shares  issuable  upon
exercise of the Warrants  (without  regard to any limitations on exercise) as of
the date  immediately  preceding  the date such  amendment  or new  Registration
Statement  is filed  with the SEC,  plus (z) the  number of  Conversion  Warrant
Shares held by the  Investors as of the date  immediately  preceding the date on
which such  amendment  or new  Registration  Statement is filed with the SEC, in
each case, as soon as practicable,  but in any event not later than fifteen (15)
business days after the necessity  therefor arises. The Company shall cause such
amendment  and/or new  Registration  Statement  to become  effective  as soon as
practicable  following  the  filing  thereof.  For  purposes  of  the  foregoing
provision,  the number of shares available under a Registration  Statement shall
be deemed  "insufficient  to cover  all of the  Registrable  Securities"  if the
number of  Registrable  Securities  issued or issuable  upon  conversion  of the
Preferred  Shares and  exercise  of the  Warrants  covered by such  Registration
Statement is greater than the sum of (a) the quotient determined by dividing (i)
the number of shares of Common Stock available for resale under the Registration
Statement to cover shares  issued or issuable  upon  conversion of the Preferred
Shares by (ii) 1.5 and (b) the number of shares of Common  Stock  available  for
resale under the Registration  Statement to cover shares issued or issuable upon
exercise  of the  Warrants.  For  purposes of the  calculation  set forth in the
foregoing  sentence,  any  restrictions on the  convertibility  of the Preferred
Shares or exercise of the Warrants  shall be  disregarded  and such  calculation
shall  assume  that the  Preferred  Shares are then  convertible  into,  and the
Warrants are then exercisable for, shares of Common Stock at the then prevailing
Conversion Rate (as defined in the Statement of  Designations) or Exercise Price
(as defined in the Warrants), respectively.

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<PAGE>

         3.       RELATED OBLIGATIONS.

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

                  a. The Company shall promptly  prepare and file with the SEC a
Registration  Statement  with respect to the applicable  Registrable  Securities
(but in no event  later than the Filing  Deadline)  and cause such  Registration
Statement relating to the Registrable  Securities to become effective as soon as
practicable  after  such  filing  (but in no event  later  than  the  applicable
Effectiveness  Deadline).  The Company  shall keep each  Registration  Statement
effective pursuant to Rule 415 at all times until the earlier of (i) the date as
of which the Investors  may sell all of the  Registrable  Securities  covered by
such  Registration   Statement  without  restriction  pursuant  to  Rule  144(k)
promulgated under the 1933 Act (or successor  thereto) or (ii) the date on which
the Investors  shall have sold all the  Registrable  Securities  covered by such
Registration Statement (the "Registration Period"), which Registration Statement
(including  any  amendments or supplements  thereto and  prospectuses  contained
therein)  shall not contain any untrue  statement of a material  fact or omit to
state a material  fact required to be stated  therein,  or necessary to make the
statements  therein,  in light of the circumstances in which they were made, not
misleading.  The Company  shall submit to the SEC,  within three  business  days
after the Company learns that no review of a particular  Registration  Statement
will be made by the staff of the SEC or that the staff has no  further  comments
on the Registration Statement, as the case may be, a request for acceleration of
effectiveness of such  Registration  Statement to a time and date not later than
48 hours after the submission of such request.

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

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<PAGE>

                  c. The Company  shall (a) permit  Legal  Counsel to review and
comment upon those sections of (i) the Registration  Statement at least five (5)
business days prior to its filing with the SEC, and (ii) all other  Registration
Statements and all amendments and  supplements to all  Registration  Statements,
which are  applicable  to the Buyers  (except for Annual  Reports on Form 10- K,
Quarterly  Reports on Form 10-Q,  Current Reports on Form 8-K and any similar or
successor  report  and  registration  statements  on Form S-8) at least four (4)
business  days prior to their  filing with the SEC and (b) not file any document
in a form to which Legal Counsel reasonably  objects.  The Company shall furnish
to Legal Counsel,  without charge,  (i) any  correspondence  from the SEC or the
staff  of  the  SEC to  the  Company  or  its  representatives  relating  to any
Registration Statement,  (ii) promptly after the same is prepared and filed with
the SEC, one copy of any Registration  Statement and any  amendment(s)  thereto,
including financial statements and schedules and all exhibits and (iii) upon the
effectiveness of any Registration Statement, one copy of the prospectus included
in such Registration  Statement and all amendments and supplements  thereto. The
Company  shall  reasonably  cooperate  with  Legal  Counsel  in  performing  the
Company's obligations pursuant to this Section 3.

                  d.  The  Company  shall   furnish  to  each   Investor   whose
Registrable  Securities  are  included in any  Registration  Statement,  without
charge, (i) promptly after the same is prepared and filed with the SEC, at least
one copy of such Registration Statement and any amendment(s) thereto,  including
financial  statements  and  schedules,  and all  exhibits  and each  preliminary
prospectus,  (ii) upon the effectiveness of any Registration Statement, ten (10)
copies  of the  prospectus  included  in  such  Registration  Statement  and all
amendments  and  supplements  thereto  (or such  other  number of copies as such
Investor  may  reasonably  request)  and (iii) such other  documents,  including
copies of any preliminary or final  prospectus,  as such Investor may reasonably
request  from  time  to time in  order  to  facilitate  the  disposition  of the
Registrable Securities owned by such Investor.

                  e. The  Company  shall (i)  register  and  qualify,  unless an
exemption  from   registration  and  qualification   applies,   the  Registrable
Securities  covered  by  a  Registration   Statement  under  all  jurisdictions'
securities  or "blue sky" laws in the United  States,  (ii)  prepare and file in
those jurisdictions,  such amendments (including post-effective  amendments) and
supplements  to such  registrations  and  qualifications  as may be necessary to
maintain the effectiveness  thereof during the Registration  Period,  (iii) take
such other  actions as may be  necessary  to  maintain  such  registrations  and
qualifications in effect at all times during the Registration  Period,  and (iv)
take all  other  actions  reasonably  necessary  or  advisable  to  qualify  the
Registrable Securities for sale in such jurisdictions;  provided,  however, that
the  Company  shall not be required in  connection  therewith  or as a condition
thereto to (w) make any change in the Company's  Certificate of Incorporation or
by-laws that the  Company's  board of directors  determines  in good faith to be
contrary to the best interests of the Company and its shareholders,  (x) qualify
to do business in any  jurisdiction  where it would not otherwise be required to
qualify but for this Section 3(e), (y) subject itself to general taxation in any
such  jurisdiction,  or (z) file a general  consent to service of process in any
such  jurisdiction.  The Company  shall  promptly  notify Legal Counsel and each
Investor who holds  Registrable  Securities of the receipt by the Company of any
notification with respect to the suspension of the registration or qualification
of any of the Registrable Securities for sale under the securities or "blue sky"
laws

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<PAGE>

of any  jurisdiction in the United States or its receipt of actual notice of the
initiation or threat of any proceeding for such purpose.

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

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

                  h.  At  the  reasonable  request  of any  Investor  and at the
expense of such  Investor,  the Company shall furnish to such  Investor,  on the
date of the effectiveness of the Registration Statement and thereafter from time
to time on such dates as an Investor may reasonably request (i) a letter,  dated
such date, from the Company's  independent  certified public accountants in form
and  substance  as  is  customarily   given  by  independent   certified  public
accountants to  underwriters  in an underwritten  public  offering,  and (ii) an
opinion, dated as of such date, of counsel representing the Company for purposes
of such Registration  Statement,  in form, scope and substance as is customarily
given in an underwritten public offering, addressed to the Investors.

                  i. The Company  shall make  available for  inspection,  at the
expense  of the  Investor  acting  pursuant  to this  Section  3(i),  by (i) any
Investor,  (ii) Legal Counsel and (iii) one firm of  accountants or other agents
retained  by  the  Investors  (collectively,  the  "Inspectors")  all  pertinent
financial and other records, and pertinent corporate documents and properties of
the  Company  (collectively,  the  "Records"),  as  shall be  reasonably  deemed
necessary by each Inspector, and cause

                                       7

<PAGE>

the Company's officers,  directors and employees to supply all information which
any Inspector may reasonably  request;  provided,  however,  that each Inspector
shall agree, and each Investor hereby agrees,  to hold in strict  confidence and
shall not make any  disclosure  (except to an  Investor) or use of any Record or
other information which the Company determines in good faith to be confidential,
and of which  determination  the  Inspectors  are so  notified,  unless  (a) the
disclosure  of such Records is necessary to avoid or correct a  misstatement  or
omission in any Registration  Statement or is otherwise  required under the 1933
Act,  (b)  the  release  of  such  Records  is  ordered  pursuant  to  a  final,
non-appealable  subpoena or order from a court or  government  body of competent
jurisdiction,  or (c) the  information  in such Records has been made  generally
available  to the public  other than by  disclosure  in violation of this or any
other  agreement of which the Inspector has knowledge.  The Company shall not be
required  to  disclose  any  confidential  information  in such  Records  to any
Inspector   until  and  unless   such   Inspector   shall  have   entered   into
confidentiality agreements with the Company with respect thereto,  substantially
in the form of this  Section  3(i).  Each  Investor  agrees that it shall,  upon
learning  that  disclosure  of  such  Records  is  sought  in or by a  court  or
governmental body of competent  jurisdiction or through other means, give prompt
notice to the  Company  and allow the  Company,  at its  expense,  to  undertake
appropriate  action to prevent  disclosure  of, or to obtain a protective  order
for, the Records deemed confidential.

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

                  k. The  Company  shall  either  (i) cause all the  Registrable
Securities  covered by a Registration  Statement to be listed on each securities
exchange on which  securities  of the same class or series issued by the Company
are then listed,  if any, if the listing of such Registrable  Securities is then
permitted  under the rules of such  exchange,  or (ii)  secure  designation  and
quotation  of  all  the  Registrable  Securities  covered  by  the  Registration
Statement on the Nasdaq National  Market or The New York Stock  Exchange,  Inc.,
or, if the Company is  unsuccessful  in satisfying  the preceding  clause (i) or
(ii), the Company shall secure the inclusion for quotation on The American Stock
Exchange,  Inc., or The Nasdaq SmallCap Market, for such Registrable  Securities
and, without  limiting the generality of the foregoing,  to arrange for at least
two market  makers to  register  with the  National  Association  of  Securities
Dealers, Inc. ("NASD") as such with

                                        8

<PAGE>

respect  to such  Registrable  Securities.  The  Company  shall pay all fees and
expenses in connection with satisfying its obligation under this Section 3(k).

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

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

                  n. If requested by an Investor,  the Company shall (i) as soon
as  practicable   incorporate  in  a  prospectus  supplement  or  post-effective
amendment  such  information  as an Investor  requests  to be  included  therein
relating to the sale and  distribution  of  Registrable  Securities,  including,
without  limitation,  information  with  respect  to the  number of  Registrable
Securities being offered or sold, the purchase price being paid therefor and any
other terms of the  offering of the  Registrable  Securities  to be sold in such
offering;  (ii)  as  soon as  practicable  make  all  required  filings  of such
prospectus  supplement or  post-effective  amendment after being notified of the
matters to be  incorporated  in such  prospectus  supplement  or  post-effective
amendment; and (iii) supplement or make amendments to any Registration Statement
if reasonably requested by an Investor of such Registrable Securities.

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

                  p. The Company shall make generally  available to its security
holders as soon as practical,  but not later than 90 days after the close of the
period  covered  thereby,  an earnings  statement  (in form  complying  with the
provisions  of Rule 158 under  the 1933  Act)  covering  a  twelve-month  period
beginning  not later than the first day of the  Company's  fiscal  quarter  next
following the effective date of the  Registration  Statement,  provided that the
Company shall be deemed to satisfy its obligations under this Section 3(p) if it
timely  makes all  required  filings  under the 1934 Act and does not change its
fiscal year.

                  q. The Company  shall  otherwise  comply  with all  applicable
rules and regulations of the SEC in connection with any registration hereunder.

                  r. Within two (2) business days after a Registration Statement
which covers applicable  Registrable Securities is ordered effective by the SEC,
the Company  shall  deliver,  and shall  cause legal  counsel for the Company to
deliver, to the transfer agent for such Registrable

                                        9

<PAGE>

Securities  (with  copies to the  Investors  whose  Registrable  Securities  are
included in such  Registration  Statement)  confirmation  that such Registration
Statement has been declared  effective by the SEC in the form attached hereto as
Exhibit A.

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

                  t.  Notwithstanding  anything to the contrary in Section 3(f),
at any time  after  the  applicable  Registration  Statement  has been  declared
effective  by the  SEC,  the  Company  may  delay  the  disclosure  of  material
non-public  information  concerning  the Company the  disclosure of which at the
time is not, in the good faith  opinion of the Board of Directors of the Company
and its  counsel,  in the best  interest of the  Company  and, in the opinion of
counsel to the Company,  otherwise required (a "Grace Period");  provided,  that
the Company shall  promptly (i) notify the Investors in writing of the existence
of material non-public  information giving rise to a Grace Period (provided that
in each  notice the  Company  will not  disclose  the  content of such  material
non-public  information to the Investors) and the date on which the Grace Period
will begin,  and (ii) notify the  Investors  in writing of the date on which the
Grace Period ends; and, provided  further,  that no Grace Period shall exceed 20
consecutive  days and during any  365-day  period such Grace  Periods  shall not
exceed an aggregate of 30 days and the first day of each Grace Period must be at
least  two  trading  days  after  the last day of any  prior  Grace  Period  (an
"Allowable  Grace  Period").  For purposes of determining  the length of a Grace
Period  above,  the Grace Period shall begin on and include the date the holders
receive  the notice  referred  to in clause (i) and shall end on and include the
later of the date the holders  receive the notice referred to in clause (ii) and
the date referred to in such notice.  The provisions of 3(g) hereof shall not be
applicable  during the period of any Allowable Grace Period.  Upon expiration of
the Grace  Period,  the Company  shall  again be bound by the first  sentence of
Section 3(f) with  respect to the  information  giving rise thereto  unless such
material non-public information is no longer applicable.

         4.       OBLIGATIONS OF THE INVESTORS.

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

                  b.  Each  Investor  by  such  Investor's   acceptance  of  the
Registrable  Securities  agrees to  cooperate  with the  Company  as  reasonably
requested by the Company in connection with

                                       10

<PAGE>

the preparation and filing of any Registration Statement hereunder,  unless such
Investor  has  notified  the Company in writing of such  Investor's  election to
exclude all of such Investor's  Registrable  Securities  from such  Registration
Statement.

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

         5.       EXPENSES OF REGISTRATION.

                  All reasonable expenses, other than underwriting discounts and
commissions,   incurred   in   connection   with   registrations,   filings   or
qualifications pursuant to Sections 2 and 3, including,  without limitation, all
registration,  listing and  qualifications  fees,  printers and accounting  fees
shall be paid by the  Company.  In addition,  the Company  shall  reimburse  the
Investors  for the  reasonable  fees  and  disbursements  of  Legal  Counsel  in
connection with registrations,  filings or qualifications pursuant to Sections 2
and 3 of this Agreement which fees and disbursements shall not exceed $10,000.

         6.       INDEMNIFICATION.

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

                  a. To the fullest  extent  permitted by law, the Company will,
and hereby  does,  indemnify,  hold  harmless  and  defend  each  Investor,  the
directors,  officers, partners, employees, agents,  representatives of, and each
Person,  if any, who controls any Investor within the meaning of the 1933 Act or
the 1934 Act (each,  an  "Indemnified  Person"),  against  any  losses,  claims,
damages,  liabilities,  judgments, fines, penalties,  charges, costs, reasonable
attorneys'  fees,  amounts paid in  settlement  or  expenses,  joint or several,
(collectively,  "Claims") incurred in investigating,  preparing or defending any
action, claim, suit, inquiry, proceeding, investigation or appeal taken from the
foregoing  by or  before  any  court or  governmental,  administrative  or other
regulatory  agency,  body or the SEC, whether pending or threatened,  whether or
not an indemnified party is or may be a party thereto  ("Indemnified  Damages"),
to which any of them may become  subject  insofar as such  Claims (or actions or
proceedings, whether commenced or threatened, in respect

                                       11

<PAGE>

thereof)  arise out of or are based upon:  (i) any untrue  statement  or alleged
untrue  statement  of  a  material  fact  in a  Registration  Statement  or  any
post-effective  amendment  thereto or in any filing made in connection  with the
qualification  of the offering  under the securities or other "blue sky" laws of
any  jurisdiction  in  which  Registrable  Securities  are  offered  ("Blue  Sky
Filing"),  or the omission or alleged omission to state a material fact required
to be stated therein or necessary to make the statements therein not misleading,
(ii) any  untrue  statement  or alleged  untrue  statement  of a  material  fact
contained in any  preliminary  prospectus if used prior to the effective date of
such Registration Statement, or contained in the final prospectus (as amended or
supplemented,  if the Company files any amendment thereof or supplement  thereto
with the SEC) or the omission or alleged  omission to state therein any material
fact  necessary  to  make  the  statements   made  therein,   in  light  of  the
circumstances  under which the  statements  therein were made, not misleading or
(iii) any  violation  or alleged  violation  by the Company of the 1933 Act, the
1934 Act, any other law,  including,  without  limitation,  any state securities
law, or any rule or regulation  thereunder  relating to the offer or sale of the
Registrable  Securities pursuant to a Registration Statement (the matters in the
foregoing clauses (i) through (iii) being, collectively,  "Violations"). Subject
to Section  6(c),  the  Company  shall  reimburse  the  Investors  and each such
controlling  person,  promptly as such  expenses  are  incurred  and are due and
payable,  for any  legal  fees or  disbursements  or other  reasonable  expenses
incurred by them in connection with  investigating  or defending any such Claim.
Notwithstanding  anything to the contrary contained herein, the  indemnification
agreement  contained in this Section 6(a):  (i) shall not apply to a Claim by an
Indemnified  Person  arising  out of or based upon a Violation  which  occurs in
reliance upon and in  conformity  with  information  furnished in writing to the
Company by such  Indemnified  Person  expressly for use in  connection  with the
preparation  of the  Registration  Statement  or any such  amendment  thereof or
supplement  thereto;  (ii) shall not be  available  to the extent  such Claim is
based on a failure of the  Investor to deliver or to cause to be  delivered  the
prospectus  made  available by the Company,  if such  prospectus was timely made
available by the Company  pursuant to Section 3(d); and (iii) shall not apply to
amounts paid in settlement of any Claim, if such settlement is effected  without
the  prior  written  consent  of  the  Company,   which  consent  shall  not  be
unreasonably  withheld.  Such  indemnity  shall  remain in full force and effect
regardless of any investigation  made by or on behalf of the Indemnified  Person
and shall  survive the transfer of the  Registrable  Securities by the Investors
pursuant  to Section  9.  Notwithstanding  anything  to the  contrary  contained
herein,  the  indemnification  agreement  contained  in this  Section  6(a) with
respect  to any  prospectus  shall not inure to the  benefit  of an  Indemnified
Person if the untrue  statement  or omission of material  fact  contained in the
prospectus was corrected in the prospectus and such new prospectus was delivered
to each Investor prior to such  Investor's  first use of the prospectus to which
the Claim relates.

                  b. In connection with any  Registration  Statement in which an
Investor  is  participating,  each such  Investor  agrees to  severally  and not
jointly indemnify,  hold harmless and defend, to the same extent and in the same
manner as is set forth in Section 6(a), the Company, each of its directors, each
of its officers who signs the  Registration  Statement and each Person,  if any,
who  controls  the  Company  within the  meaning of the 1933 Act or the 1934 Act
(each an "Indemnified Party"), against any Claim or Indemnified Damages to which
any of them may become  subject,  under the 1933 Act, the 1934 Act or otherwise,
insofar as such Claim or

                                       12

<PAGE>

Indemnified  Damages arise out of or are based upon any Violation,  in each case
to the extent,  and only to the extent,  that such Violation  occurs in reliance
upon and in conformity with written information furnished to the Company by such
Investor expressly for use in connection with such Registration Statement;  and,
subject  to  Section  6(d),  such  Investor  will  reimburse  any legal or other
expenses  reasonably  incurred  by  them in  connection  with  investigating  or
defending  any such  Claim;  provided,  however,  that the  indemnity  agreement
contained in this Section 6(b) and the  agreement  with respect to  contribution
contained  in Section 7 shall not apply to  amounts  paid in  settlement  of any
Claim if such  settlement is effected  without the prior written consent of such
Investor, which consent shall not be unreasonably withheld;  provided,  further,
however, that the Investor shall be liable under this Section 6(b) for only that
amount of a Claim or Indemnified  Damages as does not exceed the net proceeds to
such Investor as a result of the sale of Registrable Securities pursuant to such
Registration  Statement.  Such  indemnity  shall remain in full force and effect
regardless of any  investigation  made by or on behalf of such Indemnified Party
and shall  survive the transfer of the  Registrable  Securities by the Investors
pursuant  to Section  9.  Notwithstanding  anything  to the  contrary  contained
herein,  the  indemnification  agreement  contained  in this  Section  6(b) with
respect to any  prospectus  shall not inure to the  benefit  of any  Indemnified
Party if the untrue  statement  or omission of material  fact  contained  in the
prospectus was corrected on a timely basis in the prospectus, as then amended or
supplemented.

                  c.  Promptly  after  receipt  by  an  Indemnified   Person  or
Indemnified  Party  under this  Section 6 of notice of the  commencement  of any
action or proceeding (including any governmental action or proceeding) involving
a Claim,  such  Indemnified  Person or  Indemnified  Party shall,  if a Claim in
respect thereof is to be made against any indemnifying  party under this Section
6,  deliver  to the  indemnifying  party a written  notice  of the  commencement
thereof, and the indemnifying party shall have the right to participate in, and,
to the  extent  the  indemnifying  party so  desires,  jointly  with  any  other
indemnifying party similarly  noticed,  to assume control of the defense thereof
with counsel mutually satisfactory to the indemnifying party and the Indemnified
Person or the Indemnified Party, as the case may be; provided,  however, that an
Indemnified  Person or Indemnified  Party shall have the right to retain its own
counsel  with the fees  and  expenses  of not  more  than one  counsel  for such
Indemnified  Person or Indemnified  Party to be paid by the indemnifying  party,
if, in the reasonable opinion of counsel retained by the indemnifying party, the
representation  by such counsel of the Indemnified  Person or Indemnified  Party
and the  indemnifying  party would be  inappropriate  due to actual or potential
differing interests between such Indemnified Person or Indemnified Party and any
other party  represented by such counsel in such  proceeding.  In the case of an
Indemnified  Person,  legal  counsel  referred to in the  immediately  preceding
sentence  shall be selected by the  Investors  holding a majority in interest of
the Registrable  Securities included in the Registration  Statement to which the
Claim relates. The Indemnified Party or Indemnified Person shall cooperate fully
with the indemnifying party in connection with any negotiation or defense of any
such  action  or  Claim by the  indemnifying  party  and  shall  furnish  to the
indemnifying party all information reasonably available to the Indemnified Party
or Indemnified  Person which relates to such action or claim.  The  indemnifying
party shall keep the Indemnified  Party or Indemnified  Person fully apprised at
all times as to the status of the defense or any  settlement  negotiations  with
respect thereto. No indemnifying party shall be liable for any settlement of any

                                       13

<PAGE>

action,  claim  or  proceeding  effected  without  its  prior  written  consent,
provided,  however, that the indemnifying party shall not unreasonably withhold,
delay or condition its consent.  No indemnifying party shall,  without the prior
written consent of the Indemnified Party or Indemnified Person, consent to entry
of any judgment or enter into any settlement or other  compromise which does not
include as an unconditional term thereof the giving by the claimant or plaintiff
to such Indemnified Party or Indemnified  Person of a release from all liability
in respect to such claim or litigation.  Following  indemnification  as provided
for hereunder,  the indemnifying  party shall be subrogated to all rights of the
Indemnified Party or Indemnified Person with respect to all third parties, firms
or corporations  relating to the matter for which indemnification has been made.
The  failure  to  deliver  written  notice to the  indemnifying  party  within a
reasonable  time of the  commencement  of any such action shall not relieve such
indemnifying  party of any liability to the  Indemnified  Person or  Indemnified
Party under this Section 6, except to the extent that the indemnifying  party is
prejudiced in its ability to defend such action.

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

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

         7.       CONTRIBUTION.

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

         8.       REPORTS UNDER THE 1934 ACT.

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

                                       14

<PAGE>

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

                  b. file with the SEC in a timely  manner all reports and other
documents required of the Company under the 1933 Act and the 1934 Act so long as
the Company  remains  subject to such  requirements  (it being  understood  that
nothing herein shall limit the Company's  obligations  under Section 4(c) of the
Securities  Purchase  Agreement)  and the  filing  of  such  reports  and  other
documents is required by the applicable provisions of Rule 144; and

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

         9.       ASSIGNMENT OF REGISTRATION RIGHTS.

                  The  rights  under  this  Agreement  shall  be   automatically
assignable  by the  Investors  to any  transferee  of  all  or  any  portion  of
Registrable  Securities  if:  (i)  the  Investor  agrees  in  writing  with  the
transferee  or assignee to assign such rights,  and a copy of such  agreement is
furnished to the Company within a reasonable  time after such  assignment;  (ii)
the Company is,  within a  reasonable  time after such  transfer or  assignment,
furnished with written notice of (a) the name and address of such  transferee or
assignee,  and (b) the securities with respect to which such registration rights
are being transferred or assigned;  (iii) immediately following such transfer or
assignment  the further  disposition  of such  securities  by the  transferee or
assignee is restricted  under the 1933 Act and applicable state securities laws;
(iv) at or before the time the Company receives the written notice  contemplated
by clause (ii) of this  sentence the  transferee  or assignee  agrees in writing
with the Company to be bound by all of the provisions  contained herein; and (v)
such  transfer   shall  have  been  made  in  accordance   with  the  applicable
requirements of the Securities Purchase Agreement.

         10.      AMENDMENT OF REGISTRATION RIGHTS.

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

                                       15

<PAGE>

         11.      MISCELLANEOUS.

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

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

         If to the Company:

                  Entrade Inc.
                  500 Central Avenue
                  Northfield, Illinois 60093
                  Telephone:        (847) 784-3335
                  Facsimile:        (847) 441-6959
                  Attention:        Anthony E. Rothschild, General Counsel

         With a copy to:

                  Duane, Morris & Hecksher LLP
                  227 West Monroe Street, Suit 3400
                  Chicago, Illinois 60606
                  Telephone:        (312) 499-6700
                  Facsimile:        (312) 499-6701
                  Attention:        Eric M. Fogel, Esq.

         If to Legal Counsel:

                  Katten Muchin & Zavis
                  525 West Monroe Street, Suite 1600
                  Chicago, Illinois 60661-3693
                  Telephone:        312-902-5200
                  Facsimile:        312-902-1061
                  Attention:        Robert J. Brantman, Esq.

                                       16

<PAGE>

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

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

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

                  e. This  Agreement,  the Securities  Purchase  Agreement,  the
Warrants and the Statement of Designations constitute the entire agreement among
the parties hereto with respect to the subject matter hereof and thereof.  There
are no restrictions, promises, warranties or

                                       17

<PAGE>

undertakings, other than those set forth or referred to herein and therein. This
Agreement,  the Securities Purchase Agreement, the Warrants and the Statement of
Designations supersede all prior agreements and understandings among the parties
hereto with respect to the subject matter hereof and thereof.

                  f. Subject to the  requirements  of Section 9, this  Agreement
shall inure to the benefit of and be binding upon the permitted  successors  and
assigns of each of the parties hereto.

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

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

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

                  j. All  consents  and other  determinations  to be made by the
Investors  pursuant to this Agreement shall be made, unless otherwise  specified
in  this  Agreement,   by  Investors  holding  a  majority  of  the  Registrable
Securities,  determined as if all of the Preferred  Shares and the Warrants then
outstanding  have been  converted into or exercised for  Registrable  Securities
without  regard to any  limitations  on conversion  of the  Preferred  Shares or
exercise of the Warrants.

                  k. The language  used in this  Agreement  will be deemed to be
the language  chosen by the parties to express  their mutual intent and no rules
of strict construction will be applied against any party.

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

                                    * * * * *

                                       18

<PAGE>

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

COMPANY:                                BUYERS:
-------                                 ------

ENTRADE INC.                            HFTP INVESTMENT L.L.C.
                                        By:  Promethean Asset Management, L.L.C.
                                            Its: Investment Manager

By:                                     By:
   --------------------------------         ---------------------------------
Name:                                       Name:  James F. O'Brien, Jr.
     ------------------------------         ---------------------------------
Its:                                        Its:  Managing Member
    -------------------------------

                                        BUYERS:

                                        FISHER CAPITAL LTD.

                                        By:
                                            Name: Daniel J. Hopkins
                                            Title: Authorized Signatory

                                        WINGATE CAPITAL LTD.

                                            By:_____________________________
                                            Name: Daniel J. Hopkins
                                            Title: Authorized Signatory

                                        LEONARDO, L.P.

                                        By:  ANGELO, GORDON & CO., L.P.
                                        Its:  General Partner

                                        By:__________________________________
                                            Name: Michael L. Gordon
                                            Its: Chief Operating Officer

                                       19

<PAGE>

                               SCHEDULE OF BUYERS

<TABLE>
<CAPTION>
                                          Investor Address                 Investor's Representatives' Address
       Investor Name                    and Facsimile Number                     and Facsimile Number
       -------------                    --------------------                     --------------------

<S>                           <C>                                          <C>
HFTP Investment L.L.C.        c/o Promethean Asset Management, L.L.C.     Promethean Investment Group, L.L.C.
                              750 Lexington Avenue, 22nd Floor            750 Lexington Avenue, 22nd Floor
                              New York, New York 10022                    New York, New York 10022
                              Attn:    James F. O'Brien, Jr.              Attn:    James F. O'Brien, Jr.
                                       John M. Floegel                             John M. Floegel
                              Telephone: 212-702-5200                     Telephone: 212-702-5200
                              Facsimile:  212-758-9334                    Facsimile:  212-758-9334

                                                                          Katten Muchin & Zavis
                                                                          525 West Monroe, Suite 1600
                                                                          Chicago, Illinois  60661-3693
                                                                          Attn:    Robert J. Brantman, Esq.
                                                                          Telephone: 312-902-5200
                                                                          Facsimile:  312-902-1061

Fisher Capital Ltd.           c/o Citadel Investment Group, L.L.C.        Katten Muchin Zavis
                              225 West Washington Street                  525 W. Monroe Street, Suite 1600
                              Chicago, Illinois 60606                     Chicago, Illinois 60661-3693
                              Attention: Daniel J. Hopkins                Attn: Robert J. Brantman, Esq.
                              Facsimile: (312) 338-0780                   Facsimile: (312) 902-1061
                              Telephone: (312) 696-2100                   Telephone: (312) 902-5200
                              Residence: Illinois

Wingate Capital Ltd.          c/o Citadel Investment Group, L.L.C.        Katten Muchin Zavis
                              225 West Washington Street                  525 W. Monroe Street, Suite 1600
                              Chicago, Illinois 60606                     Chicago, Illinois 60661-3693
                              Attention: Daniel J. Hopkins                Attn: Robert J. Brantman, Esq.
                              Facsimile: (312) 338-0780                   Facsimile: (312) 902-1061
                              Telephone: (312) 696-2100                   Telephone: (312) 902-5200
                              Residence: Illinois

Leonardo, L.P.                c/o Angelo, Gordon & Co., L.P.              c/o Angelo, Gordon & Co., L.P.
                              245 Park Avenue - 26th Floor                245 Park Avenue - 26th Floor
                              New York, New York 10167                    New York, New York 10167
                              Attention: Gary Wolf or Ari Storch          Attn: Gary Wolf or Ari Storch
                              Facsimile: (212) 867-6449                   Facsimile: (212) 867-6449
                              Telephone: (212) 692-2035                   Telephone: (212) 692-2035
                              Residence: Cayman Islands

                                                                          Stroock & Stroock & Lavan LLP
                                                                          180 Maiden Lane
                                                                          New York, New York  10038-4982
                                                                          Attention:  Adam J. Chill, Esq.
                                                                          Telephone:  (212) 806-5400
                                                                          Facsimile:  (212) 806-6006

</TABLE>

                                       20

<PAGE>

                                                                       EXHIBIT A

                         FORM OF NOTICE OF EFFECTIVENESS
                            OF REGISTRATION STATEMENT

[TRANSFER AGENT]
Attn:__________________

                  Re:      Entrade Inc.

Ladies and Gentlemen:

         We are  counsel  to  Entrade  Inc.,  a  Pennsylvania  corporation  (the
"Company"),  and have  represented  the Company in connection  with that certain
Securities  Purchase  Agreement (the "Purchase  Agreement")  entered into by and
among the Company and the Buyers named  therein  (collectively,  the  "Holders")
pursuant  to which the  Company  issued to the  Holders  shares of its  Series A
Convertible Preferred Stock, par value $1,000 per share (the "Preferred Shares")
convertible  into shares of the Company's  common stock,  no par value per share
(the "Common  Stock"),  and the related  Warrants  (the  "Warrants")  to acquire
shares of Common Stock. Pursuant to the Purchase Agreement, the Company also has
entered into a Registration Rights Agreement with the Holders (the "Registration
Rights Agreement")  pursuant to which the Company agreed, among other things, to
register  the  Registrable  Securities  (as defined in the  Registration  Rights
Agreement), including the shares of Common Stock issuable upon conversion of the
Preferred Shares and upon exercise of the Warrants,  under the Securities Act of
1933, as amended (the "1933 Act"). In connection with the Company's  obligations
under the Registration Rights Agreement, on ____________ ____, the Company filed
a  Registration  Statement  on Form  S-3  (File  No.  333-  _____________)  (the
"Registration  Statement")  with the  Securities  and Exchange  Commission  (the
"SEC") relating to the Registrable Securities which names each of the Holders as
a selling stockholder thereunder.

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

                                                     Very truly yours,

                                                     [ISSUER'S COUNSEL]

                                                     By:___________________

cc:      [LIST NAMES OF HOLDERS]

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