Document:

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Exhibit 4.4

                          REGISTRATION RIGHTS AGREEMENT

     This  Registration  Rights  Agreement  (this  "Agreement")  is  made  as of
November 7, 2001,  between Sales Online  Direct,  Inc., a corporation  organized
under the laws of the State of Delaware,  U.S.A., with headquarters located at 4
Brussels Street,  Worcester,  Massachusetts  01610 (the "Company") and Augustine
Fund, L.P., an Illinois limited partnership, ("Holder"). This Agreement is being
entered  into  pursuant to that  certain  Loan  Agreement,  dated as of the date
hereof, between the Company and the Holders (the "Loan Agreement").

     The Company and the Holders hereby agree as follows:

          1.   Definitions

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

     "Advice" shall have the meaning set forth in Section 3(m).

     "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.

     "Blackout Period" shall have the meaning set forth in Section 3(n).

     "Board" shall have the meaning set forth in Section 3(n).

     "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 generally are authorized or required by law or other government actions
to close.

     "Commission" means the Securities and Exchange Commission.

     "Common Stock" means the Company's common stock, $.001 value per share.

     "Convertible Notes" means those certain Convertible Promissory Notes of the
Company issued to the Lender pursuant to the Loan Agreement.

     "Effectiveness Date" means, with respect to the Registration Statement, the
240th day following the Closing Date.

     "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 180th day following the Closing Date.

     "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).

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

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

     "OTC Bulletin Board" shall mean the  over-the-counter  electronic  bulletin
board market or exchange.

     "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 in such Prospectus.

     "Registrable Securities" means (i) the shares of Common Stock issuable upon
conversion of the Convertible  Notes (the  "Conversion  Shares"),  any shares of
Common Stock issuable as Interest Payment Shares, and any shares of Common Stock
issuable upon any stock split, stock dividend, recapitalization or similar event
with respect to such Conversion  Shares or Interest  Payment Shares and (ii) any
other dividend or other distribution with respect to, conversion or exchange of,
or  in  replacement  of,  Registrable   Securities;   provided,   however,  that
Registrable  Securities shall include (but not be limited to) a number of shares
of  Common  Stock  (the  "Required  Number")  equal to no less  than 200% of the
maximum number of shares of Common Stock which would be issuable upon conversion
of the Convertible Notes and upon election to receive all interest payable under
the Convertible Notes until their maturity dates in the form of Interest Payment
Shares,  assuming such  conversion and election  occurred on the Closing Date or
the  Filing  Date,  whichever  date  would  result  in  the  greater  number  of
Registrable  Securities.   Notwithstanding  anything  contained  herein  to  the
contrary,  if the actual  number of shares of Common Stock  issuable as Interest
Payment Shares or upon conversion of the Convertible  Notes exceeds the Required
Number,  the term  "Registrable  Securities"  shall be  deemed to  include  such
additional  shares of Common Stock as are necessary to include all of the shares
of Common Stock issuable as Interest  Payment  Shares or upon  conversion of the
Convertible Notes.

     "Registration   Statement"  means  the  registration   statements  and  any
additional  registration  statements contemplated by Section 2(a), 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  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 158" means Rule 158  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.

     "Securities Act" means the Securities Act of 1933, as amended.

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     "Special  Counsel"  means any special  counsel to a Holder,  for which such
Holder will be reimbursed by the Company pursuant to Section 4.

     2.   Registration.

     (a)  Required  Registration.  On or prior to the Filing  Date,  the Company
shall prepare and file with the Commission a Registration Statement covering 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. The Company shall
use its  reasonable  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 to keep
such  Registration  Statement  continuously  effective  under the Securities Act
until  such  date  as is the  earlier  of (x)  the  date  when  all  Registrable
Securities covered by such Registration  Statement have been sold by the Holders
or (y) the date on which the  Registrable  Securities  may be sold  without  any
restriction  pursuant to Rule 144(k) as determined by the counsel to the Company
pursuant to a written opinion letter,  addressed to the Company's transfer agent
to such effect  (the  "Effectiveness  Period").  If an  additional  Registration
Statement  is  required  to be filed  because  the  holders of a majority of the
principal amount  outstanding under the Convertible  Notes reasonably  determine
that the actual number of Interest Payment Shares and the shares of Common Stock
into which the Convertible Notes are convertible may exceed the number of shares
of Common Stock initially registered in respect of the Conversion Shares and the
Interest  Payment  Shares based upon the  computation  on the Closing Date,  the
holders  shall give the  Company  written  notice of such fact,  and the Company
shall have twenty (20) Business Days from the date of its receipt of such notice
to file such additional Registration  Statement.  The Company shall use its best
efforts to cause such additional Registration Statement to be declared effective
by the  Commission  as soon as possible,  but in no event later than ninety (90)
days after filing.

     (b) Shelf  Registration.  If the Company is not on the Filing Date eligible
to file a  registration  statement on Form S-3,  then as soon as possible but no
later than  thirty  (30) days after  becoming  eligible  to file a  registration
statement for a secondary or resale  offering of the  Registrable  Securities on
Form  S-3,  the  Company   shall   prepare  and  file  with  the   Commission  a
post-effective  amendment to Form SB-2 on Form S-3 to continue the  registration
of all Registrable  Securities pursuant to a "shelf"  Registration  Statement on
Form S-3 covering  all  Registrable  Securities  for an offering to be made on a
continuous basis pursuant to Rule 415.  Notwithstanding anything to the contrary
contained herein,  at no time during the  Effectiveness  Period shall any of the
Registrable Securities cease being registered.

     3. Registration  Procedures.  In connection with the Company's registration
obligations hereunder, the Company shall:

     (a) Prepare and file with the  Commission on or prior to the Filing Date, a
Registration  Statement on Form SB-2 (or if the Company is not then  eligible to
register for resale the  Registrable  Securities on Form SB-2 such  registration
shall be on another appropriate form in accordance  herewith) in accordance with
the method or methods  of  distribution  thereof  as  specified  by the  Holders
(except  if  otherwise  directed  by the  Holders),  and cause the  Registration
Statement to become effective and remain effective as provided herein; provided,
however,  that not less than five (5)  Business  Days prior to the filing of the
Registration  Statement or any related Prospectus or any amendment or supplement
thereto   (including  any  document  that  would  be  incorporated   therein  by
reference),  the  Company  shall (i)  furnish  to the  Holders  and any  Special
Counsel,  copies of all such  documents  proposed to be filed,  which  documents
(other than those  incorporated  by reference)  will be subject to the review of
the Holders  and such  Special  Counsel,  and (ii) at the request of the Holders
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  counsel  to  such  Holders,  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 or any Special Counsel shall reasonably
object in writing within three (3) Business Days of their receipt thereof.

     (b) (i) Prepare and file with the  Commission  such  amendments,  including
post-effective  amendments, to the Registration Statement 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

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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 (or any
similar  provisions then in force)  promulgated  under the Securities Act; (iii)
respond as promptly as possible to any  comments  received  from the  Commission
with  respect to the  Registration  Statement  or any  amendment  thereto and as
promptly  as  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) Notify the Holders of Registrable Securities to be sold and any Special
Counsel as promptly as possible (and, in the case of (i)(A) below, not less than
five (5)  Business  Days prior to such  filing)  and (if  requested  by any such
Person)  confirm  such  notice in  writing no later  than one (1)  Business  Day
following  the day:  (i)(A) when a Prospectus  or any  Prospectus  supplement or
post-effective  amendment to the Registration Statement is proposed to be filed;
(B) 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 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) 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  that  makes  any  statement  made in the  Registration
Statement  or  Prospectus  or  any  document   incorporated   or  deemed  to  be
incorporated  therein  by  reference  untrue  in any  material  respect  or that
requires  any  revisions  to the  Registration  Statement,  Prospectus  or other
documents so that, in the case of the Registration  Statement or the Prospectus,
as the case may be, it will not contain any untrue  statement of a material fact
or omit to state any material fact required to be stated therein or necessary to
make the statements  therein, in the light of the circumstances under which they
were made, not misleading.

     (d) Use its best efforts to avoid the  issuance  of, or, if issued,  obtain
the  withdrawal  of,  (i)  any  order   suspending  the   effectiveness  of  the
Registration Statement or (ii) any suspension of the qualification (or exemption
from  qualification)  of any of  the  Registrable  Securities  for  sale  in any
jurisdiction, at the earliest practicable moment.

     (e)  If  requested  by  the  Holders  of a  majority  in  interest  of  the
Registrable  Securities,  (i) promptly incorporate in a Prospectus supplement or
post-effective  amendment to the Registration  Statement such information as the
Company  reasonably agrees should be included therein and (ii) make all required
filings of such Prospectus  supplement or such post-effective  amendment as soon
as reasonably  practicable  after the Company has received  notification  of the
matters to be  incorporated  in such  Prospectus  supplement  or  post-effective
amendment.

     (f)  Furnish to the Holders and any Special  Counsel,  without  charge,  at
least one  conformed  copy of each  Registration  Statement  and each  amendment
thereto,   including   financial   statements  and   schedules,   all  documents
incorporated or deemed to be incorporated therein by reference, and all exhibits
to the extent requested by such Person (including those previously  furnished or
incorporated by reference)  promptly after the filing of such documents with the
Commission.

     (g)  Promptly  deliver to the  Holders  and any  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;  and  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.

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     (h) Prior to any public  offering of Registrable  Securities,  use its best
efforts to register  or qualify or  cooperate  with the selling  Holders and any
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  reasonably  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  reasonably  necessary or advisable to enable the  disposition in
such  jurisdictions  of the  Registrable  Securities  covered by a  Registration
Statement;  provided, however, that the Company shall not be required to qualify
generally to do business in any  jurisdiction  where it is not then so qualified
or to take any action that would subject it to general service of process in any
such jurisdiction  where it is not then so subject or subject the Company to any
material tax in any such jurisdiction where it is not then so subject.

     (i) Cooperate  with the Holders to facilitate  the timely  preparation  and
delivery of certificates representing Registrable Securities to be sold pursuant
to a Registration Statement, which certificates shall be free of all restrictive
legends,  and to enable such Registrable  Securities to be in such denominations
and  registered in such names as any Holder may request  within at least two (2)
Business Days after notice thereof.

     (j) Upon the occurrence of any event  contemplated by Section 3(c)(vi),  as
promptly  as  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 the light of the circumstances under which they were made, not misleading.

     (k) Use its best efforts to cause all  Registrable  Securities  relating to
such Registration Statement to be listed on the OTC Bulletin Board and any other
securities  exchange,  quotation  system,  market or  over-the-counter  bulletin
board,  if any,  on which  similar  securities  issued by the  Company  are then
listed.

     (l)  Comply  in  all  material  respects  with  all  applicable  rules  and
regulations  of the  Commission  and make  generally  available  to its security
holders  earning  statements  satisfying  the provisions of Section 11(a) of the
Securities Act and Rule 158 not later than 45 days after the end of any 12-month
period  (or 90 days  after the end of any  12-month  period if such  period is a
fiscal  year)  commencing  on the first day of the first  fiscal  quarter of the
Company after the effective date of the Registration Statement,  which statement
shall conform to the requirements of Rule 158.

     (m)  Require  each  selling  Holder to furnish to the  Company  information
regarding such Holder and the distribution of such Registrable  Securities as is
required by law to be disclosed in the Registration  Statement,  and the Company
may exclude from such registration the Registrable Securities of any such Holder
who fails to furnish  such  information  within a  reasonable  time prior to the
filing of each Registration  Statement,  supplemented  Prospectus and/or amended
Registration  Statement.  If the Registration  Statement refers to any Holder by
name or otherwise  as the holder of any  securities  of the  Company,  then such
Holder shall have the right to require (if such reference to such Holder by name
or  otherwise  is not  required by the  Securities  Act or any  similar  federal
statute  then in force) the  deletion  of the  reference  to such  Holder in any
amendment  or  supplement  to  the  Registration  Statement  filed  or  prepared
subsequent to the time that such  reference  ceases to be required.  Each Holder
covenants and agrees that (i) it will not sell any Registrable  Securities under
the  Registration  Statement  until it has received  copies of the Prospectus as
then amended or supplemented as contemplated in Section 3(g) and notice from the
Company  that such  Registration  Statement  and any  post-effective  amendments
thereto have become  effective as  contemplated  by Section 3(c) and (ii) it and
its officers,  directors or Affiliates,  if any, will comply with the prospectus
delivery  requirements of the Securities Act as applicable to them in connection
with sales of Registrable  Securities  pursuant to the  Registration  Statement.
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 Section 3(c)(ii),  3(c)(iii),  3(c)(iv),  3(c)(v) or 3(c)(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(j), 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

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or  supplemental  filings that are  incorporated or deemed to be incorporated by
reference in such Prospectus or Registration Statement.

     (n) If (i) there is material non-public  information  regarding the Company
which the Company's Board of Directors (the "Board")  reasonably  determines not
to be in the  Company's  best  interest to disclose and which the Company is not
otherwise  required  to  disclose,  or  (ii)  there  is a  significant  business
opportunity  (including,  but not limited to, the  acquisition or disposition of
assets  (other  than  in  the  ordinary  course  of  business)  or  any  merger,
consolidation,  tender  offer or other  similar  transaction)  available  to the
Company which the Board  reasonably  determines  not to be in the Company's best
interest to disclose and which the Company  would be required to disclose  under
the Registration  Statement,  then the Company may postpone or suspend filing or
effectiveness  of a  registration  statement  for a  period  not  to  exceed  20
consecutive  days,  provided  that the Company  may not  postpone or suspend its
obligation under this Section 3(n) for more than 45 days in the aggregate during
any 12-month period (each, a "Blackout Period"); provided, however, that no such
postponement or suspension  shall be permitted for  consecutive  20-day periods,
arising out of the same set of facts, circumstances or transactions.

     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 the Registration  Statement is filed or becomes effective
and  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 the OTC  Bulletin  Board  and each  other  securities
exchange or market on which Registrable  Securities are required hereunder to be
listed, (B) with respect to filings required to be made with the Commission, (C)
with respect to filings required to be made under the OTC Bulletin Board and (D)
in  compliance  with  state  securities  or Blue  Sky laws  (including,  without
limitation,  fees and disbursements of counsel for the Holder in connection with
Blue Sky  qualifications of the Registrable  Securities and determination of the
eligibility of the Registrable  Securities for investment under the laws of such
jurisdictions  as the  Holders  of a  majority  of  Registrable  Securities  may
designate)), (ii) printing expenses (including, without limitation,  expenses of
printing certificates for Registrable Securities and of printing prospectuses if
the  printing of  prospectuses  is requested by the holders of a majority of the
Registrable Securities included in the Registration Statement), (iii) messenger,
telephone  and  delivery  expenses  incurred  by  the  Company,  (iv)  fees  and
disbursements of counsel for the Company and Special Counsel for each Holder, in
the case of each Special  Counsel,  to a maximum amount of $2,500.00  during the
term of this Agreement,  (v) Securities Act liability insurance,  if the Company
so desires  such  insurance,  and (vi) fees and  expenses  of all other  Persons
retained by the Company in connection with the  consummation of the transactions
contemplated by this Agreement,  including,  without  limitation,  the Company's
independent public accountants (including the expenses of any comfort letters or
costs  associated  with the  delivery by  independent  public  accountants  of a
comfort  letter  or  comfort  letters).  In  addition,   the  Company  shall  be
responsible  for all of its internal  expenses  incurred in connection  with the
consummation  of the  transactions  contemplated  by this Agreement  (including,
without  limitation,  all salaries  and  expenses of its officers and  employees
performing  legal or accounting  duties),  the expense of any annual audit,  the
fees and expenses  incurred in  connection  with the listing of the  Registrable
Securities on any securities exchange as required hereunder.

     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 the light of the

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circumstances under which they were made) not misleading,  except to the extent,
but only to the  extent,  that such untrue  statements  or  omissions  are based
solely or in material part upon  information  regarding such Holder furnished to
the Company by such Holder,  which  information was reasonably  relied on by the
Company 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.  The Company shall notify
the Holder 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.  Such indemnity shall remain in full force and effect regardless
of any  investigation  made by or on  behalf of an  Indemnified  Party and shall
survive the transfer of the Registrable Securities by the Holder.

     (b)  Indemnification  by  Holder.  The  Holders  shall,  severally  and not
jointly,  indemnify  and hold  harmless the Company,  the  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
incurred,  arising  solely  or in  material  part out of or based  solely  or in
material  part upon any untrue  statement  of a material  fact  contained in the
Registration Statement,  any Prospectus,  or any form of prospectus,  or arising
solely or in material  part out of or based solely or in material  part upon any
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 the light of the  circumstances  under  which they were
made) not misleading,  to the extent,  but only to the extent,  that such untrue
statement  or  omission  is  contained  in or omitted  from any  information  so
furnished by such Holder to the Company and that such information was reasonably
relied  upon  by  the  Company  for  use  in the  Registration  Statement,  such
Prospectus  or such form of  prospectus  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.  Notwithstanding  anything to the  contrary  contained
herein,  the Holder shall be liable under this Section 5(b) for only that amount
as does not exceed the net  proceeds  to such  Holder as a result of the sale of
Registrable Securities pursuant to such Registration Statement.

     (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 promptly shall 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 (10)

<PAGE>

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).

     (d) Contribution. If a claim for indemnification under Section 5(a) or 5(b)
is  unavailable  to an  Indemnified  Party  because of a failure or refusal of a
governmental  authority to enforce such  indemnification  in accordance with its
terms (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
Sections 5(a) and 5(b) was available to such party in accordance with its terms.
Notwithstanding  anything to the contrary  contained herein, the Holder shall be
liable or required to contribute under this Section 5(d) for only that amount as
does not  exceed  the net  proceeds  to such  Holder  as a result of the sale of
Registrable  Securities  pursuant to such  Registration  Statement.  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.  No  Person  guilty  of
fraudulent  misrepresentation  (within  the  meaning  of  Section  11(f)  of the
Securities  Act) shall be entitled to  contribution  from any Person who was not
guilty of such  fraudulent  misrepresentation.  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.  Rule  144.  As long as any  Holder  holds  a  Convertible  Note or owns
Conversion  Shares or Interest Payment Shares,  the Company  covenants to timely
file (or obtain  extensions  in respect  thereof and file within the  applicable
grace  period)  all reports  required to be filed by the Company  after the date
hereof  pursuant to Section  13(a) or 15(d) of the  Exchange Act and to promptly
furnish the Holder with true and complete copies of all such filings. As long as
any  Holder  holds a  Convertible  Note or owns  Conversion  Shares or  Interest
Payment  Shares,  if the  Company is not  required to file  reports  pursuant to
Section  13(a) or 15(d) of the Exchange  Act, it will prepare and furnish to the
Holder and make publicly  available in accordance  with Rule 144(c)  promulgated
under the Securities  Act annual and quarterly  financial  statements,  together
with a  discussion  and  analysis  of such  financial  statements  in  form  and
substance  substantially similar to those that would otherwise be required to be
included in reports  required by Section  13(a) or 15(d) of the Exchange Act, as
well as any other  information  required  thereby,  in the time period that such
filings  would have been  required to have been made under the Exchange Act. The
Company  further  covenants  that it will take such further action as any Holder
may reasonably  request,  all to the extent required from time to time to enable
such  Person to sell  Conversion  Shares and  Interest  Payment  Shares  without
registration  under the  Securities  Act within the limitation of the exemptions
provided by Rule 144 promulgated under the Securities Act,  including  providing
any legal opinions of counsel to the Company  referred to in the Loan Agreement.
Upon the  request of any  Holder,  the  Company  shall  deliver to such Holder a
written certification of a duly authorized officer as to whether it has complied
with such requirements.

     7. Miscellaneous.

     (a)  Remedies.  In the event of a breach by the Company or by a Holder,  of
any of their  obligations under this Agreement,  each Holder or the Company,  as
the case may be, in addition to being entitled to exercise all rights granted by
law and under this Agreement, including recovery of damages, will be entitled to
specific  performance of its rights under this  Agreement.  The Company and each
Holder agree that monetary damages would not provide  adequate  compensation for
any losses incurred by reason of a breach by it of any of the provisions of this

<PAGE>

Agreement  and  hereby  further  agrees  that,  in the event of any  action  for
specific  performance in respect of such breach, it shall waive the defense that
a remedy at law would be adequate.

     (b)  No  Inconsistent  Agreements.  Neither  the  Company  nor  any  of its
subsidiaries  has, as of the date hereof  entered into and  currently in effect,
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 is
inconsistent  with the  rights  granted  to the  Holders  in this  Agreement  or
otherwise  conflicts with the provisions  hereof except for registration  rights
previously  granted  to  the  Holders.   Except  for  such  registration  rights
previously  granted  to  the  Holders,  neither  the  Company  nor  any  of  its
subsidiaries  has  previously  entered  into any  agreement  currently in effect
granting any  registration  rights with respect to any of its  securities to any
Person.  Without  limiting the generality of the foregoing,  without the written
consent  of the  Holders  of at  least  eighty-five  percent  (85%)  of the then
outstanding  Registrable  Securities,  the Company shall not grant to any Person
the right to request the Company to register any securities of the Company under
the  Securities  Act unless the rights so granted are subject in all respects to
the prior rights in full of the Holder set forth  herein,  and are not otherwise
in conflict with the provisions of this  Agreement.  This Section 7(b) shall not
prohibit  the  Company  from  entering  into  any   agreements   concerning  the
registration of securities on Form S-8 or Form S-4.

     (c) [Intentionally Omitted.]

     (d) Piggy-Back Registrations. If at any time when there is not an effective
Registration  Statement  covering  any issued or issuable  Conversion  Shares or
Interest  Payment  Shares,  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 its 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,  the Company shall send to each Holder of Registrable  Securities
written  notice of such  determination  and,  if within  thirty  (30) days after
receipt of such  notice,  any such  Holder  shall so  request in writing  (which
request shall specify the Registrable  Securities  intended to be disposed of by
such Holder),  the Company will cause the registration  under the Securities Act
of all  Registrable  Securities  which  the  Company  has been so  requested  to
register by the Holder, to the extent requisite to permit the disposition of the
Registrable  Securities so to be registered,  provided that if at any time after
giving  written  notice of its intention to register any securities and prior to
the effective date of the  registration  statement filed in connection with such
registration,  the Company shall  determine for any reason not to register or to
delay  registration of such securities,  the Company may, at its election,  give
written notice of such determination to such Holder and,  thereupon,  (i) in the
case of a determination not to register,  shall be relieved of its obligation to
register any Registrable  Securities in connection with such  registration  (but
not from its  obligation to pay expenses in  accordance  with Section 4 hereof),
and (ii) in the case of a determination to delay registering, shall be permitted
to delay  registering any Registrable  Securities being  registered  pursuant to
this  Section  7(d) for the same period as the delay in  registering  such other
securities.  The Company shall include in such registration statement all or any
part of such  Registrable  Securities  such Holder  requests  to be  registered;
provided,  however,  that the Company  shall not be  required  to  register  any
Registrable  Securities pursuant to this Section 7(d) that are eligible for sale
pursuant to Rule 144(k) of the  Securities  Act. In the case of an  underwritten
public  offering,  if  the  managing  underwriter(s)  or  underwriter(s)  should
reasonably  object  to the  inclusion  of the  Registrable  Securities  in  such
registration statement, then if the Company after consultation with the managing
underwriter  should reasonably  determine that the inclusion of such Registrable
Securities,  would materially adversely affect the offering contemplated in such
registration statement,  and based on such determination recommends inclusion in
such  registration  statement of fewer or none of the Registrable  Securities of
the  Holders,  then (x) the  number of  Registrable  Securities  of the  Holders
included in such  registration  statement  shall be reduced  pro-rata among such
Holders  (based  upon the  number  of  Registrable  Securities  requested  to be
included  in the  registration),  if the  Company  after  consultation  with the
underwriter(s)  recommends the inclusion of fewer Registrable Securities, or (y)
none of the  Registrable  Securities  of the  Holders  shall be included in such
registration   statement,   if  the   Company   after   consultation   with  the
underwriter(s)  recommends the inclusion of none of such Registrable Securities;
provided, however, that if securities are being offered for the account of other
persons or entities as well as the Company, such reduction shall not represent a
greater fraction of the number of Registrable  Securities intended to be offered
by the Holders  than the  fraction of similar  reductions  imposed on such other
persons or entities (other than the Company).

<PAGE>

     (e) [Intentionally Omitted.]

     (f)  Specific  Enforcement,  Consent to  Jurisdiction.  The Company and the
Holders  acknowledge and agree that irreparable  damage would occur in the event
that any of the  provisions  of this  Registration  Rights  Agreement,  the Loan
Agreement or the  Convertible  Notes were not performed in accordance with their
specific terms or were  otherwise  breached.  It is accordingly  agreed that the
parties  shall be entitled to an injunction  or  injunctions  to prevent or cure
breaches of the  provisions  of this  Registration  Rights  Agreement,  the Loan
Agreement or the  Convertible  Notes and to enforce  specifically  the terms and
provisions  hereof or thereof,  this being in  addition  to any other  remedy to
which any of them may be entitled by law or equity.  Each of the Company and the
Holders (i) hereby irrevocably  submits to the jurisdiction of the United States
District  Court  sitting  in the  City of  Chicago,  State of  Illinois  for the
purposes of any suit,  action or  proceeding  arising out of or relating to this
Agreement or the Loan Agreement and (ii) hereby waives, and agrees not to assert
in any such suit,  action or  proceeding,  any claim  that it is not  personally
subject to the jurisdiction of such court,  that the suit,  action or proceeding
is brought  in an  inconvenient  forum or that the venue of the suit,  action or
proceeding is improper.  Each of the Company and the Holders 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 in this Section 7(f) shall affect or limit any right
to serve process in any other manner permitted by law.

     (g) 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.
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 a
Holder  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.

     (h)  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 in accordance with the notice  provision set forth in
the Loan Agreement.  The addresses for such  communications with respect to each
party  shall be the  address(es)  for such  party that are set forth in the Loan
Agreement  (as the  same  may be  modified  from  time to time by such  party in
accordance  with the terms of the Loan  Agreement),  or to such other address or
addresses  or  facsimile  number or numbers as any such party may most  recently
have designated in writing to the other parties hereto by such notice.

     (i) Successors and Assigns.  This Agreement shall be binding upon and inure
to the benefit of the parties and their  successors  and  permitted  assigns and
shall inure to the benefit of the Holders and their  respective  successors  and
assigns.  The  Company  may not assign  this  Agreement  or any of its rights or
obligations  hereunder  without  the  prior  written  consent  of  the  Holders.
Notwithstanding  anything to the  contrary in this  Agreement,  no Holder  shall
assign its rights under this Agreement or otherwise transfer all or a portion of
the  Convertible  Notes or the  Registrable  Securities to any competitor of the
Company, and in no event shall there be greater than three (3) Holders which are
not affiliates of the initial Holders during the term of this Agreement.

     (j) Assignment of Registration Rights. The rights of each Holder hereunder,
including  the  right  to have  the  Company  register  for  resale  Registrable
Securities  in  accordance   with  the  terms  of  this   Agreement,   shall  be
automatically  assignable by each Holder to any transferee of such Holder of all
or a portion of the Convertible Notes or the Registrable  Securities if: (i) the
Holder 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)
following such transfer or assignment the further disposition of such securities
by the  transferee  or  assignees is  restricted  under the  Securities  Act and
applicable  state  securities  laws,  (iv) at or  before  the time  the  Company
receives the written  notice  contemplated  by clause (ii) of this Section,  the
transferee or

<PAGE>

assignee agrees in writing with the Company to be bound by all of the provisions
of this Agreement, and (v) such transfer shall have been made in accordance with
the  applicable  requirements  of the Loan  Agreement.  The rights to assignment
shall apply to the Holders (and to subsequent) successors and assigns.

     (k)  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.

     (l)  Governing  Law. This  Agreement  shall be governed by and construed in
accordance with the laws of the State of Illinois,  without regard to principles
of conflicts of law thereof.

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

     (n) Severability.  If any term, provision,  covenant or restriction of this
Agreement is held to be invalid,  illegal, void or unenforceable in any respect,
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.

     (o)  Headings.  The  headings  herein  are  for  convenience  only,  do not
constitute a part of this  Agreement  and shall not be deemed to limit or affect
any of the provisions hereof.

     (p) Shares Held by the Company and its Affiliates.  Whenever the consent or
approval of Holders of a  specified  percentage  of  Registrable  Securities  is
required hereunder, Registrable Securities held by the Company or its Affiliates
(other than any Holder or transferees  or successors or assigns  thereof if such
Holder is deemed to be an  Affiliate  solely by reason of its  holdings  of such
Registrable Securities) shall not be counted in determining whether such consent
or approval was given by the Holders of such required  percentage  and shall not
be counted as outstanding.

     (q)  Notice  of  Effectiveness.  Within  two (2)  business  days  after the
Registration  Statement  which  includes the  Registrable  Securities is ordered
effective by the  Commission,  the Company shall deliver,  and shall cause legal
counsel for the Company to deliver,  to the transfer agent for such  Registrable
Securities  and to the Lender  (with  copies to the  Holders  whose  Registrable
Securities  are  included  in such  Registration  Statement,  if other  than the
Lender) confirmation that the Registration Statement has been declared effective
by the Commission in the form attached hereto as Exhibit A.

                            [SIGNATURE PAGE FOLLOWS]

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Registration Rights
Agreement to be duly executed by their respective  authorized  persons as of the
date first indicated above.

                          SALES ONLINE DIRECT, INC.

                          By: /s/ Gregory Rotman
                              --------------------------------------------
                          Its:     President

                          AUGUSTINE FUND, L.P.

                          By: /s/ AUGUSTINE CAPITAL MANAGEMENT, LLC
                              --------------------------------------------
                          Its:     general partner

                          By: /s/ John Porter
                              --------------------------------------------
                          Its:     President

<PAGE>

                                                                       EXHIBIT A

            FORM OF NOTICE OF EFFECTIVENESS OF REGISTRATION STATEMENT

[NAME AND ADDRESS OF TRANSFER AGENT]
Attn: ____________________

[NAME OF INVESTOR]
[ADDRESS]
[ADDRESS]
Attn: ____________________

     Re: SALES ONLINE DIRECT, INC.

Ladies and Gentlemen:

     We are counsel to Sales Online Direct,  Inc., a Delaware  corporation  (the
"COMPANY"),  and have  represented  the Company in connection  with that certain
Loan Agreement (the "LOAN AGREEMENT"), dated as of October __, 2001, between the
Company  and the Lender  named  therein  (the  "HOLDER")  pursuant  to which the
Company  issued to the Lender a Convertible  Promissory  Note  convertible  into
shares of the  Company's  common  stock,  $.001 par value per share (the "COMMON
STOCK").  Pursuant to the Loan  Agreement,  the Company has also  entered into a
Registration  Rights  Agreement  with  the  Lender  (the  "REGISTRATION   RIGHTS
AGREEMENT"),  dated of even date with the Loan 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 Convertible  Notes,  under the Securities
Act of 1933,  as amended  (the "1933 ACT").  In  connection  with the  Company's
obligations     under     the     Registration     Rights     Agreement,      on
____________________________ , 200__, the Company filed a Registration Statement
on Form ___ (File No.  333-__________)  (the "REGISTRATION  STATEMENT") with the
Securities  and Exchange  Commission  (the "SEC")  relating to the resale of the
Registrable  Securities  which  names  each  Holder  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,

                                                              [COMPANY COUNSEL]<PAGE>

Exhibit 10.1

                                 LOAN AGREEMENT

     THIS LOAN  AGREEMENT  (this  "Agreement")  is made as of  November 7, 2001,
between  Augustine Fund,  L.P., an Illinois limited  partnership  ("Lender") and
Sales Online Direct, Inc., a Delaware corporation (the "Corporation").

                                    RECITALS

     A. The  Corporation  desires  financing  for  payment of certain  operating
expenses.

     B. The Lender has agreed to extend to the Corporation, subject to the terms
and conditions set forth herein, loans in an aggregate principal amount of up to
$1,000,000.

     C.  Such  loans  shall be  evidenced  by  promissory  notes  which  will be
convertible  into shares of the common stock of the Corporation  pursuant to the
terms hereof and the terms of such promissory note.

     D. The  Corporation  hereby  notifies  the Lender that the  offering of the
promissory  notes is not  registered  under  the  Securities  Act of  1933;  the
securities  received  by the  Lender  will be  restricted  and  cannot be resold
without registration unless an exemption is available;  Lender does not have the
protection of Section 11 of the Securities Act; and a registration statement for
the abandoned  public offering was filed and  subsequently,  on August 30, 2001,
was withdrawn.

                                   AGREEMENTS

In  consideration  of the recitals and the mutual covenants herein contained and
other good and valuable consideration,  the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

                                    ARTICLE I

                                   Definitions

     1.1 Definitions.  In addition to the capitalized terms defined elsewhere in
this  Agreement,  the  following  capitalized  terms  shall  have the  following
respective meanings when used in this Agreement:

     "Affiliate"  as  applied to any  specified  Person  means any other  Person
directly or indirectly  controlling,  controlled by, or under direct or indirect
common control with, such specified Person. The term "control" (including,  with
correlative  meanings,  the terms "controlling" and "controlled by"), as applied
to any Person, means the possession,  directly or indirectly,  of 10% or more of
the voting  power of such Person or the power  otherwise  to direct or cause the
direction of the management and policies of that Person, whether through voting,
by contract or otherwise. For purposes of this paragraph,  "voting power" of any
Person  means the total  number of votes which may be cast by the holders of the
total  number of  outstanding  shares of stock of any class or  classes  of such
Person in any  election  of  directors  of such  Person.  For  purposes  of this
Agreement,  all executive  officers and directors of a Person shall be deemed to
be Affiliates of such Person.

     "Business  Day" means a day other than a  Saturday,  Sunday or other day on
which  commercial banks in New York, New York, are authorized or required by law
to close.

     "Capitalized  Lease" means any lease of property (whether real, personal or
mixed) which, in conformity  with GAAP, is accounted for as a capitalized  lease
or a capital expenditure on the Corporation's balance sheet.

<PAGE>

     "Change of Control  Event" means (a) the closing of a sale of 50 percent or
more of the assets utilized by the Corporation in its business in bulk either in
one transaction or in a series of related transactions; or (b) the closing of an
equity issuance,  sale,  transfer or other disposition or transaction  including
reorganization  or consolidation or merger after which the current  shareholders
of the Corporation no longer (i) have the legal and  contractual  right or power
to  designate  a  majority  of the  members  of the  board of  directors  of the
Corporation  or (ii) own and  control at least 50  percent of the  Corporation's
outstanding Common Stock on a fully-diluted basis.

     "Closing"  means  the  closing  of the  transactions  contemplated  by this
Agreement.

     "Closing Date" has the meaning ascribed to it in Section 3.1.

     "Code" means the Internal Revenue of Code of 1986, as amended.

     "Common Stock" means the common stock of the  Corporation,  $.001 par value
per share.

     "Corporation" means Sales Online Direct, Inc., a Delaware corporation.

     "Event of Default" has the meaning ascribed to it in Section 9.1.

     "GAAP"  means  generally  accepted  accounting   principles,   consistently
applied.

     "Indebtedness" of any Person shall mean the principal of, premium,  if any,
and unpaid interest on: (a) Indebtedness for Borrowed Money; (b) obligations for
which a Person is obligated pursuant to a guaranty; (c) all indebtedness secured
by any Lien upon property owned by such Person,  even though such Person has not
in any manner  become liable for the payment of such  indebtedness,  but only to
the extent that such  indebtedness  is secured by such Lien;  (d) the  principal
portion only of all  indebtedness  of such Person  created or arising  under any
Capitalized  Lease;  (e)  all  indebtedness  of  such  Person  arising  under  a
conditional sale or other title retention or security  agreement with respect to
property acquired by such Person even though the remedies of the seller,  lessor
or lender  under such  agreement or lease in the event of default may be limited
to  repossession  or sale of such property;  (f) all  obligations of such Person
issued or assumed for the  deferred  purchase  price of  property  or  services,
including all trade  payables;  and (g) all  obligations of such Person under or
with respect to letters of credit,  but only to the extent of the face amount of
such letters of credit.

     "Indebtedness  for Borrowed  Money" means any  indebtedness  or obligations
upon  which  interest  is or is  customarily  charged  or  any  indebtedness  or
obligation  issued in  substitution  for or  exchange of such  Indebtedness  for
Borrowed Money, in any case,  whether evidenced by notes,  bonds,  debentures or
otherwise.

     "Lender" means Augustine Fund, L.P.

     "Lien" means any mortgage, deed of trust, lien, security interest,  pledge,
lease,  conditional  sale  contract,  claim,  charge,  easement,  right  of way,
assessment, restriction and other encumbrance of every kind.

     "Loans"  means,  at  any  given  time,  the  aggregate   principal   amount
outstanding under the Notes.

     "Material  Adverse  Effect"  means  any  material  adverse  effect  on  the
operations,  properties,  or financial  condition of the Corporation  taken as a
whole.

     "Notes" means those certain promissory notes of the Corporation in favor of
the Lender  and in the form  attached  hereto as  Exhibit  A, as amended  and in
effect  from time to time,  and any note or notes  issued in  exchange  for such
notes.

     "Operative  Documents"  means  this  Agreement,  the  Notes,  the  Security
Agreement, and the Registration Rights Agreement.

<PAGE>

     "Person" means an individual, a partnership, a limited liability company, a
corporation, an association, a joint stock company, a trust, a joint venture, an
unincorporated  organization or a governmental entity or any department,  agency
or political subdivision thereof.

     "Registration  Rights  Agreement"  means that certain  Registration  Rights
Agreement  between  the  Corporation  and the Lender  substantially  in the form
attached hereto as Exhibit B.

     "SEC" means the Securities and Exchange Commission.

     "Security  Agreement"  means that certain  Security  Agreement  between the
Corporation and the Lender  substantially in the form attached hereto as Exhibit
C.

     1.2  Accounting  Principles.  Where the character or amount of any asset or
liability or an item of income or expense is required to be  determined,  or any
accounting  computation  is  required  to be  made,  for  the  purpose  of  this
Agreement,  such  determination  or  calculation  shall be made,  to the  extent
applicable and except as otherwise  specified in this  Agreement,  in accordance
with GAAP.

                                   ARTICLE II

                              Authorization of Loan

     2.1 The  Loans.  Commencing  on the date  hereof,  subject to the terms and
conditions of this Agreement and in accordance  with the draw request  procedure
set forth in  Section  2.2  below,  the  Lender  shall  make  such  loans to the
Corporation as the Corporation  shall from time to time request from the Lender,
up to the  maximum  amount  set  forth  below,  but in any case in an  aggregate
principal  amount not to exceed  $1,000,000 (the "Loans").  Pursuant to a verbal
agreement,  the  Lender  has loaned  the  Corporation  $669,980  at 8% per annum
interest. The parties hereby agree that the Corporation is deemed to have repaid
all of the principal  ($669,980) and accrued interest  ($15,294) pursuant to the
verbal  agreement  and borrowed the  identical  amount from the Lender as of the
date hereof pursuant to the terms and conditions of this Agreement.

Unless  waived in  writing  by the  Lender,  the  Corporation  agrees to use the
proceeds of the Loans solely to satisfy the Indebtedness.

     2.2 Draw Request  Procedure;  Funding.  The initial draw shall occur on the
date hereof in the amount of $685,274 and shall  represent  the repayment of the
monies  borrowed  pursuant to the verbal  agreement  plus  accrued  interest and
deemed  re-borrowed  pursuant to the terms of this  Agreement.  No actual  funds
shall be  transferred  pursuant to such initial draw. The second draw also shall
take place on or soon after the date hereof.  It shall be for an amount equal to
$160,207.  Draw  Requests  are in the form of  Exhibit  D and  shall  include  a
detailed  description  of the specific  bona fide  operating  expenses  that the
Corporation  intends  to  pay  with  the  requested  funds.  Provided  that  the
Corporation complies with the Draw Request procedure,  within three (3) Business
Days of receiving a Draw Request, the Lender will advance to the Corporation the
amount of the Draw  Request.  The Loans shall be evidenced by the Notes and upon
honoring a Draw  Request,  a Lender  shall  record such Draw Request on the grid
attached to its respective Note.

     2.3  Interest.  (a) Interest  shall accrue on the  principal  amount of the
Loans  outstanding  from time to time at a rate of eight percent (8%) per annum,
calculated  on the basis of a 360-day  year.  Interest  shall be due and payable
quarterly in arrears on the last Business Day of each September, December, March
and June  commencing  on March 31, 2002 and  continuing  until all amounts owing
under the Notes have been either paid in full or  converted  into Common  Stock.
Notwithstanding anything elsewhere contained herein to the contrary, the rate of
interest  payable  hereunder  shall in no event  exceed the maximum  lawful rate
which may be charged under applicable law.

     (b) The interest  payable to the Lender for any given period shall be paid,
at the  Lender's  election,  either in cash or in shares of Common  Stock  (such
shares being referred to as "Interest  Payment  Shares").  In the event that the
Lender elects to receive Interest Payment Shares in lieu of cash with respect to
an interest  payment  payable,  the Lender shall provide  written notice of such
election  to the  Corporation  at least  three (3) days  prior to the  scheduled
interest payment date. The number of Interest Payment Shares issuable in respect
of any  such  interest  payment  shall

<PAGE>

be calculated in accordance with the conversion procedure set forth in the Notes
as if such  payment  is a  conversion  of  principal  in an amount  equal to the
interest payment and the scheduled interest payment date is the conversion date.
The  Corporation  shall  promptly (but in no event later than three (3) Business
Days  after  the  scheduled  interest  payment  date)  issue  to  the  Lender  a
certificate for the Interest Payment Shares issuable with respect to a scheduled
interest  payment.  Regardless of the date of issuance of any such  certificate,
the Lender shall be deemed to have become,  on the  scheduled  interest  payment
date,  the holder of record of the number of Interest  Payment  Shares  issuable
with respect to such scheduled  interest  payment.  The issuance of certificates
for Interest  Payment  Shares will be made without  charge to the holder for any
issuance  tax or other  governmental  charge in  respect  thereof  or other cost
incurred by the Corporation in connection with such election to receive Interest
Payment Shares in lieu of a cash interest payment. The Corporation will take all
such  actions as are  necessary  in order to ensure  that any  Interest  Payment
Shares will be validly issued, fully paid and nonassessable,  free of preemptive
rights and free from all taxes,  liens,  charges  and  security  interests  with
respect to the issuance thereof.

     (c) Notwithstanding  anything to the contrary set forth herein, in no event
shall the Lender be entitled to elect to receive Interest Payment Shares in lieu
of a cash  interest  payment  if, upon giving  effect to such  conversion,  such
election would cause the aggregate number of shares of Common Stock beneficially
owned by the Lender and its affiliates to exceed 4.99% of the outstanding shares
of the Common Stock  following  such  conversion.  For purposes of the foregoing
proviso,  the aggregate number of shares of Common Stock  beneficially  owned by
the Lender and its  affiliates  shall  include  the number of  Interest  Payment
Shares issuable in connection with such scheduled  interest payment with respect
to which the determination of such proviso is being made. Except as set forth in
the  preceding  sentence,  for  purposes  of  this  subsection  (c),  beneficial
ownership shall be calculated in accordance with Section 13(d) of the Securities
Exchange Act of 1934, as amended. The limitations imposed by this subsection (c)
shall no longer  apply,  and the Lender may elect to  receive  Interest  Payment
Shares without  restriction,  irrespective of the resulting beneficial ownership
of the Corporation's Common Stock, should any of the following events occur: (I)
The Corporation shall: (i) become insolvent; (ii) admit in writing its inability
to pay its debts  generally or as they become due;  (iii) make an assignment for
the benefit of creditors or commence  proceedings for its  dissolution;  or (iv)
apply for, or consent to the appointment of, a trustee,  liquidator, or receiver
for  its or for a  substantial  part  of its  property  or  business;  or (II) A
trustee,  liquidator or receiver shall be appointed for the Corporation or for a
substantial part of its property or business without the  Corporation's  consent
and such  appointment  is not  discharged  within  sixty  (60) days  after  such
appointment;  or  (III)  Any  governmental  agency  or any  court  of  competent
jurisdiction at the instance of any governmental  agency shall assume custody or
control of the whole or any  substantial  portion of the properties or assets of
the Corporation and shall not be dismissed within sixty (60) days thereafter; or
(IV) Any money  judgment,  writ or note of  attachment,  or  similar  process in
excess of Five Hundred  Thousand  United States Dollars  (US$500,000.00)  in the
aggregate  shall be  entered  or filed  against  the  Corporation  or any of its
properties  or  assets;  or  (V)  bankruptcy,   reorganization,   insolvency  or
liquidation proceedings or other proceedings for relief under any bankruptcy law
or any law for the  relief of debtors  shall be  instituted  by or  against  the
Corporation and, if instituted  against the Corporation,  shall not be dismissed
within sixty days after such institution or the Corporation  shall by any action
or answer approve of, consent to, or acquiesce in any such  proceedings or admit
the material  allegations  of, or default in answering a petition  filed in, any
such proceeding.

     2.4 Maturity Date. The outstanding  principal  amount of the Loans, and any
interest accrued but unpaid,  shall be payable in full on the third  anniversary
of the date of this  Agreement,  or if such day is a not a Business  Day, on the
next Business Day thereafter.

     2.5 Optional  Prepayment.  The Corporation  may, at its option,  prepay the
Notes in whole by giving  written notice thereof to the holder of the Note to be
prepaid  not less  than  thirty  (30)  days  prior to the  date  fixed  for such
prepayment in such notice. Unless the holder of the Note to be prepaid elects to
convert the  outstanding  principal of such Note to Common Stock as contemplated
by Section 7.1 prior to the date fixed for  prepayment,  the  Corporation  shall
deliver to the holder of the Note to be prepaid  the amount to be prepaid on the
date fixed for such prepayment.

<PAGE>

                                   ARTICLE III

                                     Closing

     3.1  Closing.  The Closing  will be held at the offices of the Lender on or
about October 23, 2001 (the "Closing Date").

                                   ARTICLE IV

                              Conditions to Closing

     The  obligation  of the  Lender  to  extend  the  Loans is  subject  to the
fulfillment to the Lender's  satisfaction  at or prior to the Closing of each of
the following conditions:

     4.1  Representations  and Warranties.  The  representations  and warranties
contained  in Article V shall be true and correct  when made,  and shall be true
and correct as of the Closing as if made at the Closing.

     4.2  Performance;  No Event  of  Default.  All  covenants,  agreements  and
conditions  contained in this  Agreement to be performed or complied with by the
Corporation  at or prior to the Closing  shall have been  performed  or complied
with and there shall exist no Default or Event of Default.

     4.3 Compliance  Certificate.  At the Closing,  the  Corporation  shall have
delivered  to the  Lender  a  certificate  of the  Corporation  executed  by its
president or other executive officer acceptable to the Lender, dated the Closing
Date,  certifying to (i) the fulfillment of the conditions specified in Sections
4.1 and 4.2 of this  Agreement  and (ii) such other  matters as the Lender shall
have reasonably requested.

     4.4 Secretary's  Certificate.  At the Closing,  the Corporation  shall have
delivered to the Lender copies of each of the following,  in each case certified
to be in full  force and  effect on the  Closing  Date by the  Secretary  of the
Corporation:

          (i)  the  articles  of  incorporation  of  the  Corporation  as of the
     Closing;

          (ii) the bylaws of the Corporation; and

          (iii)resolutions  of the Board of  Directors of the  Corporation,  the
     form and substance of which are reasonably  satisfactory to the Lender, (x)
     authorizing  (1) the execution,  delivery and performance of this Agreement
     and the other Operative Documents and the transactions  contemplated hereby
     and thereby, (2) the execution,  delivery and performance of the Notes, and
     (3) the  issuance of the Interest  Payment  Shares and the shares of Common
     Stock issuable upon conversion of the Notes.

     4.5  Notes.  At the  Closing,  the  Corporation  shall  have  executed  and
delivered the Notes to the Lender.

     4.6 Good Standing Certificates.  At the Closing, the Corporation shall have
delivered  certificates of good standing  relating to the  Corporation  from the
Secretary of State of the States of  Massachusetts  and  Delaware,  in each case
dated not more than ten days prior to the Closing Date.

     4.7  Legal  Investment;  Compliance  with  Laws.  As of  the  Closing,  the
extension  of the Loan by the  Lender  shall be legally  permitted  by all laws,
rules and  regulations of the  jurisdictions  and  governmental  authorities and
agencies to which the Corporation and the Lender are subject.

     4.8  Proceedings and Documents.  As of the Closing,  all proceedings of the
Corporation in connection  with the  transactions  contemplated  hereby,  by the
other  Operative  Documents and all documents and  instruments  incident to such
transactions,  shall be  reasonably  satisfactory  in form and  substance to the
Lender,  and the Lender shall have received at or prior to the Closing copies of
all  such  legal   documents  or  proceedings   taken  in  connection  with  the
consummation of the transactions as they reasonably shall have requested.

     4.9 Security Agreement. At the Closing, the Corporation shall have executed
and  delivered  to the  Lender the  Security  Agreement  and any such  financing
statements or other documents, agreements,  certificates or instruments that the
Lender may reasonably request in connection therewith.

<PAGE>

     4.10 Registration Rights Agreement.  At the Closing,  the Corporation shall
have executed and delivered to the Lender the Registration Rights Agreement.

     4.11 Contribution of Posters. At the Closing,  the Corporation shall be the
sole owner of posters sold or otherwise  transferred to the Corporation pursuant
to an  Agreement  and  Plan of  Merger  by and  among  the  Corporation,  Rotman
Collectibles,  Inc., and Leslie Rotman (the "Rotman  Agreement"),  which posters
have a fair market value of at least  $1,000,000;  and the terms of such sale or
transfer of the posters,  including the resale  provisions of any stock issuable
by the Corporation in return for such sale or transfer,  have been made known to
the Lender.

                                    ARTICLE V

                         Representations and Warranties

     5.1  Representations  and Warranties of the  Corporation.  The  Corporation
hereby represents and warrants to the Lender as follows:

          (a) Organization and Standing of the Corporation. The Corporation is a
corporation duly organized, validly existing and in good standing under the laws
of the State of  Delaware.  The  Corporation  is  qualified  to do business as a
foreign  corporation  under the laws of the Commonwealth of Massachusetts  where
the  failure  to so  qualify  would  have  a  Material  Adverse  Effect  on  the
Corporation.  The  Corporation  does not own or lease  property or engage in any
activity in any other  jurisdiction  that would require its  qualification to do
business as a foreign  corporation in such jurisdiction  where the failure to so
qualify would have a Material Adverse Effect on the Corporation.

          (b) Power. The Corporation has all requisite legal and corporate power
to enter into this  Agreement,  the Notes and the other  Operative  Documents to
which it is a party,  to issue the Notes,  to issue the Interest  Payment Shares
and the shares of Common  Stock  issuable  upon  conversion  of the Notes and to
otherwise  carry  out and  perform  its  obligations  under  the  terms  of this
Agreement, the Notes and the other Operative Documents to which it is a party.

          (c) Authorization and Binding Effect. All corporate action on the part
of the Corporation and its directors necessary for the authorization, execution,
delivery  and   performance  by  the  Corporation  of  this  Agreement  and  the
consummation of the transactions contemplated hereby, and for the authorization,
issuance and delivery of the Notes and the  authorization of the issuance of the
Interest  Payment Shares and the shares of Common Stock issuable upon conversion
of the Notes,  has been taken.  This  Agreement is and,  upon its  execution and
delivery  by the  Corporation,  the Notes  will be, a legal,  valid and  binding
obligation of the Corporation, enforceable against the Corporation in accordance
with their  respective  terms,  except as limited by  bankruptcy,  insolvency or
other laws  affecting  creditors'  rights  generally or by the  availability  of
equitable remedies.

          (d)  No   Violation.   Neither  the  execution  and  delivery  by  the
Corporation of this  Agreement,  the Notes or the other  Operative  Documents to
which it is a party,  the  consummation by the  Corporation of the  transactions
provided  for herein and therein or  contemplated  hereby and  thereby,  nor the
fulfillment by the Corporation of the terms hereof or thereof, will (a) conflict
with or result in a breach of any provision of the articles of  incorporation or
by-laws of the Corporation;  (b) result in a default,  give rise to any right of
termination,  cancellation,  acceleration  or  imposition  of any Lien  upon any
assets of the  Corporation,  or require any consent or approval under any of the
terms,  conditions or provisions of any material  contract or agreement to which
the  Corporation is a party or by which the Corporation or any of its assets may
be bound; or (c) violate any law,  judgment,  order, writ,  injunction,  decree,
statute, rule or regulation of any court,  administrative agency, bureau, board,
commission,   department  or  other   governmental   entity  applicable  to  the
Corporation  or any of its  assets,  where such  conflict,  breach,  result,  or
violation  would  neither  singly or in the  aggregate  have a Material  Adverse
Effect on the Corporation.

<PAGE>

          (e)  Validity of Common  Stock.  The Interest  Payment  Shares and the
shares of Common Stock  issuable upon the conversion of the Notes have been duly
and validly reserved by the  Corporation,  and, upon issuance in accordance with
the conversion  provisions of the Notes, such share of Common Stock will be duly
and validly issued, fully paid,  non-assessable and free and clear of all Liens.
If the  Corporation has  insufficient  authorized  shares,  it will use its best
efforts to increase the number of authorized shares as promptly as possible,  or
otherwise have sufficient shares available for issuance.

          (f) Contracts. Except for those contracts,  agreements and instruments
set  forth on  Schedule  5.7 (the  "Contracts"),  this  Agreement  and the other
Operative  Documents  to which  the  Corporation  is a party  and all  documents
executed in  connection  therewith,  the  Corporation  is not a party to any (a)
lease agreement  concerning any real property or any material personal property;
(b) any  agreement  granting any Person  registration  rights;  or (c) contract,
lease,  agreement,  plan,  arrangement,  obligation or commitment (i) evidencing
Indebtedness  for Borrowed  Money or any  guarantee of such  Indebtedness;  (ii)
involving  delivery or licensing  by or to the  Corporation  of money,  goods or
other  assets or  services  in each case with  aggregate  payments  in excess of
$10,000;  or (iii) that would otherwise be considered a material  contract.  The
Corporation  has  heretofore  delivered or made available to the Lender true and
complete copies of all such  Contracts.  All the Contracts are valid and in full
force and effect, and, to the best knowledge of the Corporation, there exists no
material  breach or  default,  or event  which,  with notice or lapse of time or
both, would constitute any such material breach or default by any party thereto.
The Corporation has not received any notice of cancellation or renewal of any of
the Contracts.

          (g)  Proprietary  Rights.  The  Corporation  owns all patents,  patent
rights,  trademarks,  trademark rights, trade names, trade name rights,  service
marks,  service  mark rights and  copyrights  set forth on Schedule 5.8 attached
hereto (collectively,  "Proprietary  Rights"). The Proprietary Rights are all of
such rights  necessary to conduct its  business as presently  conducted or which
are necessary in connection  with the  performance  of any Contract to which the
Corporation  is a party  without  conflict with or  infringement  upon any valid
rights of others,  and the use of such Proprietary Rights will not infringe upon
or conflict with, the asserted rights of others.

          (h) SEC Documents.  Since at least June 1, 2001, the  Corporation  has
timely filed all reports, schedules, forms, statements and other documents to be
filed  by it  with  the  SEC  pursuant  to  the  reporting  requirements  of the
Securities  Exchange  Act of 1934,  as  amended  (the  "1934  Act")  (all of the
foregoing filed prior to the date hereof and all exhibits  included  therein and
financial  statements and schedules  thereto and documents (other than exhibits)
incorporated by reference  therein,  being  hereinafter  referred to as the "SEC
Documents"). The Corporation has delivered to the Lender to the extent requested
by the  Lender  true  and  complete  copies  of the SEC  Documents.  As of their
respective  dates, the SEC Documents  complied in all material respects with the
requirements  of the  1934  Act  and  the  rules  and  regulations  of  the  SEC
promulgated  thereunder  applicable  to the SEC  Documents,  and none of the SEC
Documents,  at the time they  were  filed  with the SEC,  contained  any  untrue
statement of a material  fact or omitted to state a material fact required to be
stated therein or necessary in order to make the statements therein, in light of
the circumstances under which they were made, not misleading.

     5.2  Representations  and  Warranties  of the  Lender.  The  Lender  hereby
represents and warrants to the Corporation as follows:

          (a) Investment  Purposes;  Compliance  With 1933 Act. The Note and any
Interest  Payment  Shares  will be  acquired  for the  Lender's  own account for
investment only and not with a view towards,  or in connection  with, the public
sale or  distribution  thereof,  except  pursuant to sales  registered  under or
exempt  from the  Securities  Act of 1933,  as  amended  (the  "1933  Act")  and
applicable state securities laws. The Lender agrees to offer,  sell or otherwise
transfer the Interest  Payment  Shares only (i) in accordance  with the terms of
this Agreement and the Notes,  as applicable,  and (ii) pursuant to registration
under the 1933 Act or to an exemption from  registration  under the 1933 Act and
any other applicable securities laws. The Lender does not by its representations
contained in this  Section 6.1 agree to hold the Notes or the  Interest  Payment
Shares for any minimum or other  specific term and reserves the right to dispose
of the  Notes  and  the  Interest  Payment  Shares  at any  time  pursuant  to a
registration  statement or in  accordance  with an exemption  from  registration
under the 1933 Act, in all cases in accordance with applicable state and federal
securities  laws.  The Lender  understands  that it shall be a condition  to the
issuance of the Interest Payment Shares that such Interest Payment Shares be and
are subject to the representations set forth in this Section 5.2.

<PAGE>

          (b) Accredited Investor Status. The Lender is an "accredited investor"
as that term is  defined  in Rule  501(a) of  Regulation  D. The Lender has such
knowledge and experience in financial and business matters that it is capable of
evaluating  the  merits  and  risks  of an  investment  made  pursuant  to  this
Agreement. The Lender is aware that it may be required to bear the economic risk
of an  investment  made pursuant to this  Agreement for an indefinite  period of
time, and is able to bear such risk for an indefinite period.

          (c) Reliance on Exemptions.  The Lender  understands the Notes and the
Interest  Payment  Shares  will be issued and  acquired  in reliance on specific
exemptions from the  registration  requirements of the applicable  United States
federal and state  securities  laws and that the Corporation is relying upon the
truth and accuracy of, and the Lender's  compliance  with, the  representations,
warranties,  acknowledgments,  understandings,  agreements  and covenants of the
Lender  set  forth  herein  in  order  to  determine  the  availability  of such
exemptions  and the  eligibility  of the  Lender  to  acquire  the Notes and the
Interest Payment Shares.

          (d)  Information.  The  Lender  and its  advisors,  if any,  have been
furnished with all materials  relating to the business,  finances and operations
of the Corporation  and materials  relating to the Notes and the issuance of any
Interest  Payment Shares that have been requested by the Lender.  The Lender and
its  advisors,  if any,  have  been  afforded  the  opportunity  to ask all such
questions of the Corporation as they have in their discretion  deemed advisable.
The Lender  understands  that its investment in the Corporation  involves a high
degree of risk. The Lender has sought such  accounting,  legal and tax advice as
it has considered necessary to make an informed investment decision with respect
to the investment made pursuant to this Agreement.

          (e) No Government Review. The Lender understands that no United States
federal  or state  agency or any other  government  or  governmental  agency has
approved or made any recommendation or endorsement of the Notes and the Interest
Payment Shares or the fairness or suitability of the investment in the Notes and
the Interest Payment Shares,  nor have such authorities  passed upon or endorsed
the merits of any offer or sale  related to the Notes and the  Interest  Payment
Shares.

          (f) Transfer or Resale.  The Lender  understands  that:  (i) except as
provided  in the  Registration  Rights  Agreement,  the Notes  and the  Interest
Payment Shares have not been and are not being  registered under the 1933 Act or
any state securities  laws, and may not be offered for sale,  sold,  assigned or
transferred  unless  either (a)  subsequently  registered  thereunder or (b) the
Lender shall have delivered to the Corporation an opinion by counsel  reasonably
satisfactory  to the  Corporation,  in  form,  scope  and  substance  reasonably
satisfactory to the  Corporation,  to the effect that the Notes and the Interest
Payment  Shares to be sold,  assigned or  transferred  may be sold,  assigned or
transferred  pursuant to an exemption from such  registration,  (ii) any sale of
such  securities made in reliance on Rule 144 as amended (or any applicable rule
which  operates  to replace  said Rule),  promulgated  under the 1933 Act ("Rule
144") may be made only in accordance with the terms of Rule 144 and further,  if
Rule 144 is not applicable, any resale of such securities under circumstances in
which the seller (or the person  though  whom the sale is made) may be deemed to
be an  underwriter  (as  that  term is  defined  in the 1933  Act)  may  require
compliance  with  some  other  exemption  under  the 1933 Act or the  rules  and
regulations  of the SEC thereunder and  applicable  state  securities  laws, and
(iii) neither the  Corporation  nor any other person is under any  obligation to
register such securities  under the 1933 Act or any state  securities laws or to
comply with the terms and conditions of any exemption  thereunder (in each case,
other than pursuant to this Agreement or the Registration Rights Agreement).

          (g) Legend. The Lender understands that the Notes, and until such time
as the  Interest  Payment  Shares  have  been  registered  under the 1933 Act as
contemplated  by the  Registration  Rights  Agreement,  the  stock  certificates
representing  the Interest  Payment  Shares will bear a restrictive  legend (the
"Legend") in substantially the following form: THE SECURITIES REPRESENTED HEREBY
HAVE NOT BEEN  REGISTERED  UNDER THE  SECURITIES  ACT OF 1933,  AS AMENDED  (THE
"ACT"),  OR APPLICABLE STATE  SECURITIES LAWS  (COLLECTIVELY,  THE "LAWS").  THE
SECURITIES  HAVE BEEN ACQUIRED FOR  INVESTMENT  AND MAY NOT BE OFFERED FOR SALE,
SOLD,  TRANSFERRED  OR  ASSIGNED  IN THE  ABSENCE  OF  EITHER  (I) AN  EFFECTIVE
REGISTRATION  STATEMENT FOR THE SECURITIES UNDER THE LAWS, OR (II) AN OPINION OF
COUNSEL  PROVIDED  TO  THE  ISSUER  IN  FORM,  SUBSTANCE  AND  SCOPE  REASONABLY
ACCEPTABLE TO THE ISSUER TO THE EFFECT THAT  REGISTRATION  IS NOT REQUIRED UNDER
THE LAWS DUE TO AN AVAILABLE  EXCEPTION TO OR

<PAGE>

EXEMPTION FROM THE  REGISTRATION  REQUIREMENTS  OF THE LAWS. The Legend shall be
removed and the Corporation  will issue  certificates  without the Legend to the
holder of the  applicable  Notes or any Interest  Payment  Shares upon which the
Legend is stamped, in accordance with Section 5.2.

          (h)  Authorization;  Enforcement.  This Agreement and the Registration
Rights Agreement have been duly and validly  authorized,  executed and delivered
by the Lender and are each and collectively  valid and binding agreements of the
Lender enforceable in accordance with their terms,  subject as to enforceability
to general principles of equity and to bankruptcy,  insolvency,  moratorium, and
other similar laws affecting the enforcement of creditors' rights generally.

          (i) No Brokers. The Lender has taken no action that would give rise to
any claim by any  person for  brokerage  commissions,  finder's  fees or similar
payments  relating to this Agreement and the transactions  contemplated  hereby.
The Corporation and the Lender both  acknowledge  that no other broker or finder
was involved with respect to the transactions contemplated hereby.

                                   ARTICLE VI

                             Reporting and Payments

     6.1 Financial  Reports.  The  Corporation  will deliver to the Lender along
with  each Draw  Request  (or  within  fifteen  (15)  days  after the end of any
calendar month during which no Draw Requests were made),  a report  certified by
the president or the chief financial  officer of the Corporation,  detailing the
Corporation's  cash flow for such calendar month (or first portion  thereof,  as
applicable).  The  Corporation  will  promptly (but in any event within five (5)
Business Days after learning of) deliver to the Lender, written notice of any of
the following:

     (a)  (i) any pending or threatened material litigation (for purposes hereof
          litigation  with less than  $100,000 in issue shall not be  considered
          material)   affecting  the  Corporation;   and  (ii)  any  pending  or
          threatened  administrative or arbitration  proceeding or investigation
          affecting  the  Corporation,  or  any  order  or  directive  from  any
          regulatory  body or agency having  jurisdiction  over the  Corporation
          which proceeding,  investigation,  order or directive could reasonably
          be expected to have a Material Adverse Effect on the Corporation;

     (b)  any Event of Default under this  Agreement,  which notice will specify
          the nature and period of  existence  thereof and the actions  taken or
          proposed to be taken with respect thereto; or

     (c)  (i) any disputes with material customers or vendors;  (ii) any default
          under any instrument evidencing Indebtedness of the Corporation in the
          aggregate  outstanding amount of $10,000 or more or under any material
          contract  involving  payments,  delivery  or  licensing  by or to  the
          Corporation  of money,  goods or other  assets or  services  having an
          aggregate  value of more than $10,000;  or (iii) any other event which
          has had, or would  reasonably be expected to have, a Material  Adverse
          Effect on the Corporation.

     6.2 Inspection  Rights. The Corporation will permit the Lender to visit and
inspect the properties of the Corporation,  review its books and records (and to
make extracts therefrom), and to discuss its affairs, finances and accounts with
their officers and personnel,  all at such reasonable  times and as often as the
Lender may reasonably  request upon reasonable  notice to the  Corporation,  but
without hindrance or delay.

     6.3  Board   Observation   Rights.   The   Corporation   shall  permit  one
representative  designated by Augustine (the "Lender  Representative") to attend
as an observer all meetings of the Board of Directors of the Corporation and all
meetings of any committee of the Board of Director.  The  Corporation  agrees to
give the  Lender  Representative  the same  notice of all such  meetings  and at
approximately  the same time as such  materials  are given to the members of the
Board of Directors,  and the Lender Representative will be given the opportunity
to  participate  in any  telephonic  meetings of the Board of Directors.  If the
Corporation's Board of Directors (or any committee thereof) proposes to take any
action by  written  consent  in lieu of a meeting,  the  Corporation  shall give
written notice thereof

<PAGE>

to the Lender  Representative  at least two (2) days prior to the effective date
of such consent describing in reasonable detail the nature and substance of such
action.

     6.4 [Intentionally omitted.]

     6.5 [Intentionally omitted.].

     6.6 Mandatory Prepayment. The occurrence of a Change of Control Event shall
give the holder of a Note, at its option, the right to demand the prepayment of,
and upon such demand the Corporation  must prepay,  the entire then  outstanding
principal  amount of such Note held by such  holder  subject to such  demand for
prepayment  and all of the interest  accrued and unpaid on such Note to the date
of such prepayment (a "Mandatory  Prepayment").  The Corporation  agrees to give
the holders of the Notes written notice of a Change of Control Event (specifying
the details thereof, to the extent known), as soon as reasonably practical after
the Corporation has made a determination  that in the  Corporation's  good faith
judgment  a Change of  Control  Event is  reasonably  likely to occur (but in no
event more than five (5) days after making such  determination) and in any event
not less than the maximum number of days as is reasonably practical prior to the
Change of Control Event (taking into account the timing and nature of the offer,
if any, that will be the basis for the Change of Control  Event) (the "Change of
Control Notice"). The prepayment option described above may be exercised by such
holder's giving the Corporation  written notice to that effect (the  "Prepayment
Notice") not more than ten (10) days after a holder of a Note  receives a Change
of Control  Notice.  The date of  prepayment  shall be the date of the Change of
Control Event.  The Prepayment  Notice can be revoked any time prior to the date
of prepayment if a material  change occurs in the terms of the Change of Control
Event.

                                   ARTICLE VII

                            Conversion; Registration

     7.1  Conversion.  On the terms set forth in the Notes  (and  subject to the
restrictions on conversion set forth therein relating to the maximum  percentage
of outstanding  capital stock the Lender may hold), each Note shall convert into
shares  of  Common  Stock  upon  the  election  of the  holder  of such  Note in
accordance with the particular procedures more fully described in the Notes. The
number of shares of Common  Stock  into which  each Note is  convertible  is set
forth in the Notes.

     7.2  Registration.  The  Interest  Payment  Shares and the shares of Common
Stock issuable upon  conversion of the Notes are entitled to the benefits of and
subject to the terms of the Registration Rights Agreement. The Corporation shall
keep or cause to be kept a copy of the  Registration  Rights  Agreement  and any
amendments  thereto at its chief  executive  office and shall  furnish,  without
charge, copies thereof to the Lender upon request.

                                  ARTICLE VIII

                                    Covenants

     So long as any Note remains outstanding,  the Corporation shall comply with
the following covenants:

     8.1 Adherence to Business Plan. The Corporation  shall use its best efforts
to conduct its business in substantial  compliance  with the  description of its
business in the SEC Documents, as amended from time to time.

     8.2  Liens.  The  Corporation  shall not create or permit to exist any Lien
with  respect to any assets now or hereafter  existing or  acquired,  except the
following:  (i) Liens for current taxes or special assessments not delinquent or
for  taxes  or  special  assessments  being  contested  in  good  faith  and  by
appropriate  proceedings  that  do  not  subject  the  Company  or  any  of  its
Subsidiaries to penalties  under the Code and for which adequate  reserves shall
have been  established  and are then being  maintained in accordance  with GAAP;
(ii) Liens  incurred  or  deposits  made in the  ordinary  course of business in
connection with worker's compensation,  unemployment insurance or other forms of
governmental insurance or benefits;  (iii) Liens in favor of the lessor pursuant
to  any  material  lease;   (iv)   mechanics',   workers',   materialmen's   and
warehousemen's  Liens  arising in the ordinary  course of business in respect of
obligations  which are not delinquent or which are being contested in good faith
and by appropriate  proceedings and for which adequate  reserves shall have been
established and are then maintained in accordance with GAAP (or deposits made to

<PAGE>

obtain the release of such Lien);  (v) easements and rights of way  restrictions
that do not individually or in the aggregate interfere with the ordinary conduct
of the  business;  (vi) Liens with  respect to the Rotman  Agreement;  and (vii)
Liens already  existing in favor of the Lender or otherwise  approved in writing
by the Lender.

     8.3 Compliance With Laws. The  Corporation  agrees to comply with all laws,
rules,  regulations,  judgments,  orders  and  decrees  of any  governmental  or
regulatory  authority  applicable to it and its respective  assets, and with all
contracts and agreements to which it is or shall become a party,  and to perform
all obligations which it has or shall incur, the failure to comply with which or
perform would  reasonably be expected to have a Material  Adverse  Effect on the
business, property, assets, operations,  financial condition or prospects of the
Corporation.

     8.4 Payment of Taxes. The Corporation agrees to pay all taxes,  assessments
and other  governmental  charges  levied upon any of its assets or in respect of
its franchises, businesses, income or profits before the same become delinquent,
except that (unless and until  foreclosure,  sale or other  similar  proceedings
shall have been commenced) no such tax,  assessment or charge need be paid if it
is being contested in good faith and by appropriate  measures promptly initiated
and diligently conducted if (a) such reserve or other appropriate provision,  if
any, as shall be required  by GAAP shall have been made  therefor,  and (b) such
contest could not  reasonably be expected to have a Material  Adverse  Effect on
the Corporation's business, property, assets, operations or condition, financial
or otherwise.

     8.5 Corporate  Existence and Property.  The Corporation agrees to preserve,
protect, and maintain its existence and all rights, franchises,  accreditations,
privileges,  permits,  licenses and  properties to the extent  necessary for the
conduct of its business.

     8.6 Payment of  Indebtedness;  Fulfillment of Obligations.  The Corporation
shall pay all amounts owed on any  Indebtedness  of the  Corporation as and when
the same shall become due and payable by the lapse of time, by  declaration,  by
call for redemption or otherwise.  The Corporation  shall comply in all material
respects,  with all other  material  contracts or agreements as the  obligations
thereunder  become due, except that no such  Indebtedness  need be paid if it is
being contested in good faith and by appropriate measures promptly initiated and
diligently  conducted  if the  Corporation  either  posts  a bond  or  otherwise
establishes   adequate   reserves  (as   determined  in  accordance   with  GAAP
consistently applied) therefor.

     8.7 Mergers, Consolidations and Sales; Permitted Acquisitions.  Without the
prior written consent of the Lender,  which shall not be unreasonably  withheld,
the Corporation shall not (a) be a party to any merger or consolidation with any
other Person,  or purchase or otherwise  acquire all or substantially all of the
assets  or stock of any  class  of,  or any  partnership,  membership,  or joint
venture interest in, any other Person;  or (b) sell,  transfer,  convey or lease
all or any substantial part of its assets to any other Person.

     8.8 Liquidation, Dissolution. The Corporation shall not liquidate, dissolve
or,  without  the  prior  written  consent  of the  Lender,  which  shall not be
unreasonably  withheld,  effect a recapitalization or reorganization in any form
of transaction  (including any reorganization into a corporation or another type
of entity or after which the Corporation becomes a subsidiary of another Person)
or otherwise alter its legal status.

     8.9 Restricted  Payments.  Without the prior written consent of the Lender,
which shall not be unreasonably withheld, the Corporation shall not (a) purchase
or redeem any Common Stock or other equity  interests,  warrants or options with
respect to such Common Stock, (b) declare,  make or pay any  distributions  with
respect to Common Stock,  or (c) grant, or allow the exercise of, any redemption
rights,  put rights or other similar rights with respect to its equity interests
to any holder of its equity  securities  (contingent  or  otherwise) or contract
rights  the  value of which  appreciates  in  accordance  with the  value of the
Corporation or the Corporation's earnings.

     8.10 Transactions with Affiliates.  The Corporation shall not enter into or
maintain  any  transaction  or  agreement  with its  Affiliates,  except  in the
ordinary course of business and upon fair and reasonable terms no less favorable
to the  Corporation  than would be obtained by the  Corporation  in a comparable
arm's length  transaction with a Person who is not the Corporation's  Affiliate.
The  Corporation  shall not make any loans or advances to, or guarantees for the
benefit of, any Person other than  advances to employees in the ordinary  course
of business  (including travel allowances to employees in the ordinary course of
business),  except as provided for in the  Corporation's  financial  statements.
Furthermore,  except for a  consulting  arrangement  to be entered into with Mr.
Steven Rotman or as provided

<PAGE>

for in the  Corporation's  financial  statements,  or  otherwise in the ordinary
course of business, the Corporation shall not increase the salary or rate of pay
of, or pay any bonuses to, employees or engage any consultants.

     8.11  Fees and  Expenses.  (a) The  Corporation  shall  bear all of its own
expenses in connection  with this Agreement and the other  Operative  Documents,
and the transactions contemplated hereby and thereby. The Corporation shall also
promptly  reimburse  the Lender for or pay any  reasonable  expenses  the Lender
incurs in connection  with (i) the  enforcement  of, or the  preservation of any
rights under, this Agreement,  the Notes and the other Operative Documents,  and
(ii) any stamp and other taxes (other than income taxes) payable with respect to
this  Agreement  and the Notes.  The  Corporation  shall pay or  reimburse  such
expenses within 30 days of its receipt of an invoice for such amounts.

     (b)  The  Corporation  shall  also  pay or  reimburse  the  Lender  for the
reasonable legal costs in connection with the enforcement of or the preservation
of rights under, this Agreement, the Notes and the other Operative Documents and
the transactions contemplated hereby and thereby.

                                   ARTICLE IX

                                Events of Default

     9.1 Events of Default Defined; Acceleration of Maturity. If any one or more
of the following events (herein called "Events of Default") shall have occurred:

     (a)  all or any part of the principal of the Notes is not paid when due and
          payable,  whether at maturity thereof,  by acceleration,  by notice of
          prepayment, whether mandatory or optional, or otherwise;

     (b)  all of any part of the  interest on the Notes is not paid,  whether in
          cash or by the issuance of Interest  Payment  Shares,  as  applicable,
          when due and payable;

     (c)  default shall occur in the  observance or  performance of any covenant
          contained in Article VIII of this Agreement;

     (d)  default  shall occur in the  observance or  performance  of any of the
          other  covenants or  agreements of the  Corporation  contained in this
          Agreement  or  the  other  Operative  Documents  (including,   without
          limitation,  the  Corporation's  obligation  to register  the Interest
          Payment  Shares and the Common Stock  issuable upon  conversion of the
          Notes  in  accordance  with  the  terms  of  the  Registration  Rights
          Agreement)  which is not  remedied  within ten (10) days after  notice
          thereof to the Corporation;

     (e)  a  receiver,  conservator,  custodian,  liquidator  or  trustee of the
          Corporation  or of all or any of its  assets  is  appointed  by  court
          order; or an order for relief is entered under the federal  bankruptcy
          laws with respect to the Corporation; or any of the material assets of
          the  Corporation is sequestered by court order; or a petition is filed
          against  the  Corporation   under  the   bankruptcy,   reorganization,
          arrangement,   insolvency,   readjustment  of  debt,   dissolution  or
          liquidation  law of any  jurisdiction,  whether  now or  hereafter  in
          effect;

     (f)  the  Corporation  files a petition in voluntary  bankruptcy or seeking
          relief  under  any  provision  of  any   bankruptcy,   reorganization,
          arrangement,   insolvency,   readjustment  of  debt,   dissolution  or
          liquidation  law of any  jurisdiction,  whether  now or  hereafter  in
          effect, or consents to the filing of any petition against it under any
          such law;

     (g)  the  Corporation  makes a general  assignment  for the  benefit of its
          creditors,  or  admits  in  writing  its  inability  to pay its  debts
          generally  as they become due,  or  consents to the  appointment  of a
          receiver,  conservator,   custodian,  liquidator  or  trustee  of  the
          Corporation or of all or any part of its assets;

<PAGE>

     (h)  final  judgment for the payment of money in excess of $10,000 which is
          not fully covered by insurance  shall be rendered by a court of record
          against the Corporation  and the  Corporation  shall not (i) discharge
          the same or provide for its discharge in accordance  with its terms or
          (ii) procure a stay of execution  thereof within 30 days from the date
          of entry  thereof and within  said  period of 30 days,  or such longer
          period during which execution shall have been stayed, appeal therefrom
          and cause  the  execution  thereof  to be stayed  during  such  appeal
          including,  without  limitation,  by providing  adequate bond for such
          judgment;

     (i)  any representation,  warranty or certification made by the Corporation
          or any of its  officers in this  Agreement  or in any other  Operative
          Document or in any certificate,  report,  financial statement or other
          instrument  delivered  under or  pursuant to any  provision  hereof or
          thereof  shall prove to have been false or  incorrect  in any material
          respect on the date or dates as of which they were made or delivered;

     (j)  a default shall occur in the  observance or  performance of any of the
          covenants,  conditions,  promises, agreements or obligations under any
          Contract if such failure might have a Material  Adverse  Effect on the
          Corporation's  business,  property,  assets,  operations or condition,
          financial or  otherwise,  and such default is not remedied  within ten
          (10) days after notice thereof to the defaulting party; or

     (k)  the  exercise of any rights of default by Leslie  Rotman or any of her
          successors or assigns under the Rotman Agreement or any other material
          agreement involving Leslie Rotman;

then,  when any Event of Default  described in clause (a),  (b),  (c), (d), (h),
(i),  (j) or (k) above has occurred and shall be  continuing,  the  principal of
each Note shall, upon written notice from the holder thereof to the Corporation,
forthwith become and be due and payable, if not already due and payable, without
presentment,  demand, or notice of any kind. When any Event of Default described
in clause (e), (f) or (g) above has  occurred,  the principal of each Note shall
immediately  become  due  and  payable  upon  the  occurrence  thereof,  without
presentment, demand, or notice of any kind. If any principal is not paid in full
on the due date thereof  (whether by maturity,  prepayment,  or acceleration) or
any Event of  Default  has  occurred  and is  continuing,  then the  outstanding
principal  balance  of each Note will  bear  interest  from the due date of such
payment,  or from and after an Event of  Default,  at a rate  equal to  eighteen
percent (18%) per annum, compounded quarterly,  until the payment is received or
the Event of Default is cured, if permitted,  or waived.  The Corporation  shall
pay to the holders of each Note all reasonable  out-of-pocket costs and expenses
incurred by any such holder in any effort to collect such Note.

     9.2 Remedies  Cumulative.  All remedies,  under either this Agreement,  the
Notes,  the other  Operative  Documents,  by law or  otherwise,  afforded to the
Lender shall be cumulative and not alternative.

     9.3 Indemnification.  The Corporation shall indemnify,  defend and hold the
Lender,  its  affiliates,  officers  and agents  harmless  from,  against and in
respect of any and all claims,  demands,  losses, costs, expenses,  obligations,
liabilities, damages, recoveries and deficiencies, including interest, penalties
and reasonable attorneys' fees (collectively,  "claims"),  that the Lender shall
incur or  suffer,  which  arise,  result  from,  or relate to any  breach of, or
failure by the Corporation to perform, any of its  representations,  warranties,
covenants or agreements in this Agreement in any material respect.

     9.4 Delays or Omissions. No failure to exercise or delay in the exercise of
any right,  power or remedy accruing to the Lender upon any breach or default of
the  Corporation  under this  Agreement  shall  impair any such right,  power or
remedy of the Lender nor shall it be construed to be a waiver of any such breach
or  default,  or an  acquiescence  therein,  or of or in any  similar  breach or
default  thereafter  occurring;  nor shall any  waiver of any  single  breach or
default  be deemed a waiver  of any  other  breach  or  default  theretofore  or
thereafter occurring.

<PAGE>

                                    ARTICLE X

                                  Miscellaneous

     10.1 Consent to Amendments; Waivers. Except as otherwise expressly provided
herein,  the provisions of this Agreement may be amended at any time only by the
written  agreement of the  Corporation  and the Lender.  The  provisions of this
Agreement may be waived at any time only by the written agreement of the waiving
party and any waiver,  permit,  consent or approval of any kind or  character of
any  provisions or conditions of this  Agreement  shall be effective only to the
extent specifically set forth in such writing.

     10.2 Successors and Assigns. Except as otherwise expressly provided herein,
all covenants and agreements  contained in this Agreement by or on behalf of any
of the  parties  hereto  will bind and inure to the  benefit  of the  respective
heirs,  legal  representatives  and  successors  of the  parties  hereto and the
permitted  assigns of the  parties  hereto.  This  Agreement,  the Notes and the
rights and obligations of the Corporation  hereunder and thereunder shall not be
assigned or otherwise  transferred by the  Corporation or the Lender without the
prior written consent of the other.

     10.3 Severability. Whenever possible, each provision of this Agreement will
be interpreted in such manner as to be effective and valid under applicable law,
but if any  provision of this  Agreement is held to be  prohibited by or invalid
under  applicable law, such provision will be ineffective  only to the extent of
such  prohibition  or  invalidity,  without  invalidating  the remainder of this
Agreement  unless the  consummation  of the transaction  contemplated  hereby is
materially adversely affected thereby.

     10.4 Descriptive  Headings.  The descriptive headings of this Agreement are
inserted for  convenience  of reference only and do not constitute a part of and
shall not be utilized in interpreting this Agreement.

     10.5 No Setoffs,  Etc. All payments  hereunder and under the Notes shall be
made by the Corporation without setoff, offset, deduction or counterclaim,  free
and clear of all taxes, levies,  imports,  duties, fees and charges, and without
any  withholding,   restriction  or  conditions   imposed  by  any  governmental
authority.  If the Corporation shall be required by any law to deduct, setoff or
withhold any amount from or in respect of any payment to the Lender hereunder or
under the Notes,  then the amount so payable to the Lender shall be increased as
may be necessary so that,  after  making all  required  deductions,  setoffs and
withholdings,  the Lender  shall  receive an amount  equal to the sum they would
have received had no such deductions, setoffs or withholdings been made.

     10.6  Notices.  Any  notices  desired,  required or  permitted  to be given
hereunder  shall  be  delivered  personally,   faxed  or  mailed,  certified  or
registered  mail,  return  receipt  requested,  postage  prepaid or delivered by
commercial   overnight  courier  service,   charges  prepaid  to  the  following
addresses,  or such  other  addresses  as shall be  given  by  notice  delivered
hereunder,  and shall be deemed to have been given upon  delivery,  if delivered
personally or faxed,  (3) three Business Days after mailing,  if mailed,  or one
Business Day after delivery to the overnight  courier  service,  if delivered by
overnight courier service:

     If to Augustine Fund, L.P., to:

              141 West Jackson Blvd., Suite 2182
              Chicago, Illinois 60604
              Attention:  David M. Matteson
              Fax: (312) 427-5396

     If to the Corporation, to:

              Sales Online Direct, Inc.
              4 Brussels Street
              Worcester, Massachusetts  01610
              Attention:  Greg Rotman
              Fax:  (305) 489-6114; (781) 821-9243

     10.7 Governing Law. All questions concerning the construction, validity and
interpretation  of this  Agreement and the exhibits  hereto shall be governed by
the  internal  law,  and not the law of  conflicts,  of the  State of  Illinois,
applicable to contracts made and wholly to be performed in that state.

<PAGE>

     10.8  Exhibits and  Schedules.  All exhibits  and  schedules  hereto are an
integral part of this Agreement.

     10.9 Final Agreement. This Agreement,  together with the Notes, constitutes
the final  agreement of the parties  concerning the matters  referred to herein,
and supersedes all prior agreements and understandings between the parties.

     10.10  Execution in  Counterparts.  This  Agreement  may be executed in any
number of  counterparts,  each of which when so executed and delivered  shall be
deemed  an  original,  and  such  counterparts  together  shall  constitute  one
instrument.

     10.11 Survival. The representations,  warranties,  covenants and agreements
made herein  shall  survive any  investigation  made by any party hereto and the
closing of the transactions contemplated hereby.

     10.12  WAIVERS  BY  BORROWER.  EXCEPT  AS  OTHERWISE  PROVIDED  FOR IN THIS
AGREEMENT  OR AS  REQUIRED  BY  APPLICABLE  LAW,  THE  CORPORATION  WAIVES:  (I)
PRESENTMENT,  DEMAND AND PROTEST, AND NOTICE OF PRESENTMENT WITH RESPECT TO THIS
AGREEMENT  OR THE NOTES  AND (II) ITS RIGHT TO A JURY  TRIAL IN THE EVENT OF ANY
LITIGATION  INSTITUTED  IN  RESPECT OF THIS  AGREEMENT,  THE NOTES OR ANY OF THE
OTHER  OPERATIVE  DOCUMENTS.  THE  CORPORATION  ACKNOWLEDGES  THAT THE FOREGOING
WAIVERS ARE A MATERIAL INDUCEMENT TO THE LENDER ENTERING INTO THIS AGREEMENT AND
THAT THE LENDER ARE RELYING UPON THE  FOREGOING  WAIVERS IN ITS FUTURE  DEALINGS
WITH THE  CORPORATION.  THE  CORPORATION  WARRANTS  AND  REPRESENTS  THAT IT HAS
REVIEWED THE  FOREGOING  WAIVERS WITH ITS LEGAL  COUNSEL AND HAS  KNOWINGLY  AND
VOLUNTARILY  WAIVED  ITS JURY TRIAL  RIGHTS  FOLLOWING  CONSULTATION  WITH LEGAL
COUNSEL.  IN THE EVENT OF  LITIGATION,  THIS AGREEMENT MAY BE FILED AS A WRITTEN
CONSENT TO A TRIAL BY THE COURT.

     10.13  CONSENT  TO  FORUM.  AS PART  OF THE  CONSIDERATION  FOR  NEW  VALUE
RECEIVED, AND REGARDLESS OF ANY PRESENT OR FUTURE DOMICILE OR PRINCIPAL PLACE OF
BUSINESS OF THE CORPORATION OR THE LENDER,  THE CORPORATION  HEREBY CONSENTS AND
AGREES THAT THE UNITED  STATES  DISTRICT  COURT OR ANY OTHER COURT  HAVING SITUS
WITHIN  CHICAGO,  ILLINOIS,  SHALL  HAVE  EXCLUSIVE  JURISDICTION  TO  HEAR  AND
DETERMINE  ANY  CLAIMS  OR  DISPUTES  BETWEEN  THE  CORPORATION  AND THE  LENDER
PERTAINING TO, ARISING OUT OF, OR RELATING TO THIS  AGREEMENT,  THE NOTES OR ANY
OF THE OTHER OPERATIVE  DOCUMENTS.  THE  CORPORATION  WAIVES ANY OBJECTION BASED
UPON LACK OF PERSONAL JURISDICTION,  IMPROPER VENUE OR FORUM NON CONVENIENS. THE
CORPORATION  HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS,  COMPLAINT AND OTHER
PROCESS  ISSUED  IN ANY SUCH  ACTION OR SUIT AND  AGREES  THAT  SERVICE  OF SUCH
SUMMONS,  COMPLAINT  AND  OTHER  PROCESS  MAY BE  MADE  BY  COMPLYING  WITH  THE
PROVISIONS  FOR GIVING  NOTICE AS SET FORTH IN THIS  AGREEMENT.  NOTHING IN THIS
AGREEMENT  SHALL BE DEEMED OR OPERATE TO AFFECT THE RIGHT OF THE LENDER TO SERVE
LEGAL  PROCESS  IN ANY  OTHER  MANNER  PERMITTED  BY  LAW,  OR TO  PRECLUDE  THE
ENFORCEMENT BY THE LENDER OF ANY JUDGMENT OR ORDER OBTAINED IN SUCH FORUM OR THE
TAKING  OF ANY  ACTION  UNDER  THIS  AGREEMENT  TO  ENFORCE  SAME  IN ANY  OTHER
APPROPRIATE FORUM OR JURISDICTION.

                            [Signature pages follow.]

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Loan Agreement on
the date first set forth above.

                          SALES ONLINE DIRECT, INC.

                          By: /s/ Gregory Rotman
                              ------------------------------------------
                          Its:    Gregory Rotman, President

                          AUGUSTINE FUND, L.P.

                          By: /s/ Augustine Capital Management, LLC
                              ------------------------------------------
                          Its:     general partner

                          By: /s/ John Porter
                              ------------------------------------------
                          Its:     President

<PAGE>

                                                                       EXHIBIT D

                                  DRAW REQUEST

To:      Augustine Fund, L.P.

From:    Sales Online Direct, Inc.

Date:                               , 200_
     -------------------------------

     Reference is made to that certain  Loan  Agreement  dated as of November 7,
2001 between  Augustine  Fund,  L.P., and Sales Online Direct,  Inc.. (the "Loan
Agreement"). All capitalized terms used herein without definition shall have the
meanings set forth in the Loan Agreement.

     The  Corporation  hereby requests that the Lender advance a total principal
amount of $______________ under the Loans (the "Advance").

     The Corporation hereby certifies to the Lender that as of the date hereof:

     (1)  The  representations  and warranties of the  Corporation  contained in
          Article V of the Loan  Agreement  are true and  correct as of the date
          hereof as if made on the date hereof;

     (2)  All  covenants,  agreements  and  conditions  contained  in  the  Loan
          Agreement to be performed or complied  with by the  Corporation  at or
          prior to the date hereof have been performed or complied with; and

     (3)  As of the date hereof, there exists no Event of Default.

     In witness whereof, this Draw Request has been signed in the name of and on
behalf of the Corporation as of the date first written above.

                            Sales Online Direct, Inc.

                            By:
                               -------------------------------------------------
                            Its:[President/Chief Financial Officer]

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