Document:

<PAGE>

                                                                    EXHIBIT 10.3
                                                                    ------------

                            SHAREHOLDERS' AGREEMENT
                            -----------------------

                                     -11-
<PAGE>

                            SHAREHOLDERS' AGREEMENT

THIS SHAREHOLDERS AGREEMENT (this "Agreement") dated as of February 28, 2002,
                                   ---------
is entered into by and among Intercallnet, Inc., a Florida corporation (the
"Company"), Stanford Venture Capital Holdings, Inc., a Delaware corporation (the
--------
"Investor"), and Scott Gershon, individually, (the "Founder").  The Investor and
 --------                                           -------
the Founder are sometimes referred to herein individually as a "Shareholder" and
                                                                -----------
collectively as the "Shareholders."
                     ------------

                                   RECITALS

WHEREAS, concurrent with the execution and delivery of this Agreement (or at the
Closing if later), the Company is issuing and selling to the Investor 1,500,000
shares (the "Preferred Shares") of its Series A Convertible Preferred Stock,
             ----------------
$0.0001 par value per share (the "Series A Convertible Preferred Stock")
                                  ------------------------------------
pursuant to the terms and conditions of that certain Series A Convertible
Preferred Stock and Common Stock Purchase Warrant Purchase Agreement dated of
even date herewith between the Company and such Investor (the "Purchase
                                                               --------
Agreement");
---------

WHEREAS, the Preferred Shares are convertible at any time and from time to time
into shares of common stock, $0.0001 par value per share (the "Common Stock"),
                                                               ------------
of the Company at the option of the holder of record thereof; and

WHEREAS, the Shareholders and the Company have agreed that it is in their mutual
best interest and in the best interest of the Company to provide certain rights,
obligations and restrictions with respect to the Preferred Shares and/or shares
of Common Stock now or hereafter owned by any Shareholder and any other voting
capital stock of the Company or securities convertible into, exchangeable for or
having rights to purchase voting capital stock of the Company (such voting
capital stock, securities, Preferred Shares and Common Stock are hereinafter
referred to collectively as "Stock").
                             -----

NOW THEREFORE, in consideration of the premises, the mutual covenants and
agreements herein contained, and other valuable consideration, the receipt,
adequacy and sufficiency whereof are hereby acknowledged, the parties hereto,
intending to be legally bound, do hereby covenant and agree as follows:

                                   ARTICLE I
                             Corporate Governance
                             --------------------

1.1  Board of Directors.    Commencing on the date of execution of the Purchase
     ------------------
Agreement by and between the Company and the Investor and provided that the
Investor purchases all of the Series A Convertible Preferred Stock pursuant to
the terms and conditions of the Purchase Agreement, and for so long as the
Investor and/or its affiliates own at least ten percent (10%) of the Preferred
Shares, each of the Founder and the Investor and/or its affiliates shall
<PAGE>

vote all of their respective capital stock of the Company and shall promptly
take all other necessary or desirable actions within their respective control
(whether in his or its capacity as a shareholder, director or officer of the
Company or otherwise, and including, without limitation, attendance at meetings
in person or by proxy for purposes of obtaining a quorum and execution of
written consents in lieu of meetings), and the Company shall promptly take all
necessary and desirable actions within its control (including, without
limitation, calling special board and stockholder meetings), so that:

          (i)    the Investor shall have the right in any election of directors
to the Board of Directors to select one (1) representative (the "Investor
Representative") to the Board of Directors;

          (ii)   the Founder shall continue to serve as a member of the Board of
Directors;

          (iii)  in the event that any Investor Representative designated
hereunder for any reason ceases to serve as a member of the Board of Directors
or a committee thereof during his or her term of office, the resulting vacancy
on the Board of Directors or committee shall be filled by a representative
designated by the Investor; and

          (iv)   the Company shall pay the reasonable out-of-pocket expenses
incurred by the Investor Representative in connection with the performance of
his duties as a director, including, without limitation, attendance at meetings.

                                  ARTICLE II
                           Restrictions on Transfer
                           ------------------------

2.1  Restrictions on Transfer.  No Shareholder (including transferees of
     ------------------------
Shareholders) shall transfer any shares of Stock, or any interest therein,
whether by operation of law or otherwise, except in accordance with all of the
provisions of this Agreement.  As used in this Agreement, the term "transfer"
                                                                    --------
shall include any sale, pledge, gift, exchange, assignment or other disposition
of shares of Stock.

2.2  First Offer.  If a Shareholder (the "Selling Shareholder") desires to
     -----------                          -------------------
transfer or receives an offer to sell any or all of such Shareholder's Stock
(the "Offered Stock"), such Shareholder shall first give written notice (a
      -------------
"Transfer Notice") thereof to the Company, identifying the proposed transferee,
----------------
the number of shares sought to be transferred, the proposed purchase price (the
"Offered Price"), if applicable, the terms of the proposed transaction including
 -------------
the proposed transaction date and a copy of any written offer or other writing
setting

                                       2
<PAGE>

forth the terms and conditions of the proposed transaction. Such Transfer Notice
shall constitute an irrevocable offer by the Selling Shareholder to sell all of
the Offered Stock to the Company at the Offered Price and upon the same terms
and conditions as the Selling Shareholder is willing to sell the Offered Stock
to the proposed transferee. To the extent the consideration proposed to be paid
by the proposed transferee consists of property other than cash, the reasonable
cash equivalent of such property, and the manner of determining the same, shall
be stated in such Transfer Notice. Once given, a Transfer Notice may not be
modified or amended except with the written consent of the Company and the
Investor (or its Permitted Transferees (as hereinafter defined)) holding at
least two thirds of the Preferred Shares (including all Conversion Shares (as
hereinafter defined)). Within the twenty (20) day period following the giving of
the Transfer Notice (the "First Offer Period"), the Company may elect, by giving
                          ------------------
written notice of such election to the Selling Shareholder, to purchase all but
not less than all of the Offered Stock.

2.3  Second Offer.  If the Company does not elect to purchase all of the Offered
     ------------
Stock within the First Offer Period, the Company shall then transmit a copy of
the Transfer Notice to the other Shareholder together with a statement that it
has elected not to purchase the Offered Stock, and the Offered Stock shall
thereby be offered by the Selling Shareholder to the other Shareholder (the
"Principal Shareholder") for a period of twenty (20) days from the transmittal
 ---------------------
of such Transfer Notice to the Principal Shareholder (the "Second Offer
                                                           ------------
Period"), for the same Offered Price and upon the same terms and conditions as
------
set forth in the Transfer Notice.  The Principal Shareholder (and/or his, her or
its assigns) shall be initially entitled to elect to purchase such pro rata
portion of the Offered Stock as the number of shares of Stock (on an as-
converted basis) owned by such Principal Shareholder on the date of the
commencement of the First Offer Period bears to the number of shares of Stock
(on an as-converted basis) owned by all Principal Shareholders on such date.

If the Principal Shareholder does not elect, by notice in writing given to the
Selling Shareholder within the Second Offer Period, to purchase all of the
Offered Stock to which he or it is entitled, or if there is no such Electing
Shareholder, then the Selling Shareholder shall be free to dispose of the
Offered Stock within ninety (90) days of the end of the Second Offer Period (or
if no Second Offer Period is required, then within ninety (90) days of the end
of the First Offer Period) to the original proposed transferee, at a price not
lower than the Offered Price, and upon the terms stipulated in the Transfer
Notice in all material respects.  However, as a condition to the effectiveness
of such transfer, said transferee shall thereupon become a party to this
Agreement as a Shareholder and, pursuant to Section 4.15, shall confirm such
fact by executing a counterpart of this Agreement.  If such Offered Stock is not
so disposed of by the Selling Shareholder within such ninety (90) day period,
the Selling Shareholder

                                       3
<PAGE>

shall continue to hold such Stock subject to all of the terms and conditions of
this Agreement and may not sell the Stock without again complying with all of
the provisions hereof.

2.4  Certain Transfers Not Prohibited.  Except as otherwise expressly provided
     --------------------------------
herein, the restrictions on dispositions of Stock contained in this Agreement
shall not be construed to prohibit the following transfers of Stock ("Permitted
                                                                      ---------
Transfers"):
---------

     (a)  transfers of Stock by a Shareholder to or among such Shareholder's
     Family Group (as defined below) or by will or the laws of descent and
     distribution to such Shareholder's Family Group ("Shareholder's Family
     Group" means an individual's spouse and lineal descendants, parents,
     grandparents and any family limited partnership or trust or other fiduciary
     relationship solely for the benefit of such individual and/or such
     individual's spouse, parents, grandparents and/or lineal descendants);

     (b)  transfers of Stock upon the death of a Shareholder to his executors or
     administrators or legal successors, including without limitation
     trustee(s);

     (c)  any transfer by the Investor to an "affiliate" of such Investor (as
     such term is defined in Rule 405 under the Securities Act of 1933, as
     amended (the "Securities Act")), or any transfer of Stock by the Investor
                   --------------
     pro rata to persons owning beneficial interests in the Investor, or any
     transfer of Stock by the Investor pursuant to a registered offering in
     accordance with the Registration  Rights Agreement, dated as of the date
     hereof, between the Company and the Investor; and

     (d)  any transfer of Stock in accordance with Section 3.2 of this
     Agreement.

Any and all shares of Stock in the hands of any transferee pursuant to
subsections (a) - (d) of this Section 2.5 (each a "Permitted Transferee") shall
                                                   --------------------
remain subject to this Agreement.  Permitted Transferees under subsections (a) -
(d) of this Section 1.5 shall be deemed to be Shareholders for all purposes of
this Agreement as if they had executed and delivered the Agreement.

                                       4
<PAGE>

                                  ARTICLE III
                                Co-Sale Rights
                                --------------

3.1  Tag Along Rights.  (a)  In the event that (x) a Shareholder (a
     ----------------
"Transferring Shareholder") proposes to transfer all of the shares of Stock held
-------------------------
by such Transferring Shareholder (except as otherwise provided below); (y) the
other Shareholder has not exercised any rights pursuant to Article II; and (z)
the Company has not exercised any rights pursuant to Article II, then such
Transferring Shareholder shall deliver a written notice (the "Sale Notice") to
                                                              -----------
the Company and to the other Shareholder, specifying in reasonable detail the
identity of the proposed transferee(s) and the terms and conditions of the
transfer.  The Shareholder may elect to participate in the contemplated transfer
by delivering written notice to the Transferring Shareholder within twenty (20)
days after receipt by the Shareholder  of the Sale Notice.  If the other
Shareholder elects to participate in such Transfer, the other Shareholder will
be entitled to sell in the contemplated transfer, at the price per share of
Common Stock offered by the proposed transferee in the transfer, for each share
of Common Stock held by the other Shareholder electing to participate in the
contemplated transfer on a fully-diluted as-converted basis (including, without
limitation, in the case of the Investor, shares of Common Stock into which the
Investor's Preferred Shares then held are convertible, the "Conversion Shares"),
                                                            -----------------
and otherwise on the same terms and conditions as the Transferring Shareholder,
its pro rata portion of shares of Common Stock (including Conversion Shares, as
applicable) based on the percentage of shares being sold by the Transferring
Shareholder compared to the total shares held by the Transferring Shareholder on
a fully-diluted, as converted basis.

     (b)  The Transferring Shareholder shall use his or its best efforts to
     obtain the agreement of the prospective transferee(s) to the participation
     of the other Shareholder in any contemplated transfer, to the extent the
     other Shareholder elects to participate in the manner set forth in (a)
     above, and no Transferring Shareholder shall transfer any of such
     Transferring Shareholder's shares to the prospective transferee(s) if the
     prospective transferee(s) declines to allow such participation of such
     other Shareholder.

     (c)  The right of co-sale set forth herein shall not apply to any transfer
     to a Permitted Transferee pursuant to Section 2.5, but any and all shares
     of Stock in the hands of any Permitted Transferee pursuant to said
     subsection shall remain subject to this Agreement.

3.2  Obligation to Sell.  In the event the Company or the Investor receive(s) a
     ------------------
written bona fide offer from a third party to purchase all of the outstanding
shares of Stock of the Company, regardless of the form of the proposed
transaction, at

                                       5
<PAGE>

the written request of the Company or the Investor (the "Selling Party"), as the
                                                         -------------
case may be, each Shareholder (including any Permitted Transferee(s) of a
Shareholder) must sell all of its shares of Stock, as the case may be, in the
transaction, provided that such transaction is approved by (x) the holders of at
             --------
least fifty percent (50%) of the outstanding shares of Series A Convertible
Preferred Stock and (y) all of the outstanding shares of Common Stock held by
the Founder. The Selling Party shall give to each Shareholder a notice (an
"Obligation to Sell Notice") containing a description of the material terms of
 -------------------------
such proposed transaction including the name and address of the proposed
transferee, the consideration per share offered by the proposed transferee, the
payment terms and closing date, which shall be a date not less than sixty (60)
days after the giving of the Obligation to Sell Notice, and including a copy of
any written offer, letter of intent, term sheet or contract of sale. It shall be
a condition of the obligation to sell under this Section 3.2 that all facts and
circumstances and all material aspects of any transaction under this Section 3.2
shall be disclosed.

                                  ARTICLE IV
                                 Miscellaneous
                                 -------------

4.1  Filing of Agreement.  A copy of this Agreement, as amended from time to
     -------------------
time, shall be filed with and retained by the Secretary of the Company.

4.2  Company Designee.  All rights granted to the Company by the terms of this
     ----------------
Agreement may be exercised by such person, persons, entity or entities as the
Board of Directors of the Company, in its sole discretion, shall designate
acting by vote or unanimous written consent.

4.3  Reservation of Common Stock.  The Company shall, at all times, have
     ---------------------------
reserved the appropriate number of shares of Common Stock for the conversion of
all outstanding Preferred Shares.

4.4  Endorsement of Stock Certificates.  All certificates representing Stock
     ---------------------------------
owned by the Shareholders shall have conspicuously endorsed thereon a legend
substantially as follows:

                             "TRANSFER RESTRICTED

     THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS
     UPON TRANSFER PURSUANT TO A SHAREHOLDERS AGREEMENT BY AND AMONG THE COMPANY
     AND ITS SHAREHOLDERS.  A COPY OF THE SHAREHOLDERS AGREEMENT MAY BE OBTAINED
     FROM THE

                                       6
<PAGE>

     COMPANY WITHOUT CHARGE UPON THE WRITTEN REQUEST OF THE HOLDER HEREOF.

     THE SHARES OF COMMON STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
     REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT") AND MAY
     NOT BE OFFERED, SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE
     TRANSFERRED UNLESS (1) THEY ARE REGISTERED UNDER THE ACT OR (2) THE HOLDER
     HAS DELIVERED TO THE ISSUER AN OPINION OF COUNSEL, SATISFACTORY TO THE
     ISSUER AND ITS COUNSEL, TO THE EFFECT THAT THERE IS AN AVAILABLE EXEMPTION
     FROM REGISTRATION UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR
     THAT REGISTRATION IS OTHERWISE NOT REQUIRED.

4.5  Closing.  Except as otherwise provided herein, whenever the Company or any
     -------
permitted purchaser(s) hereunder, as the case may be, elects to purchase Stock
pursuant to this Agreement, the Company or the Selling Shareholder, whichever is
applicable, shall be given written notice of the election to accept an offer,
specifying therein the date and place for the closing of the sale, which closing
shall occur no later than thirty (30) days following such election.  A copy of
all such notices given by permitted purchasers hereunder shall be provided to
the Company simultaneously with the giving of such notices.  If either the
Company or one or more permitted purchasers hereunder have elected to purchase
Stock, all closings shall take place simultaneously and the closing date for the
sale shall be the later of the dates chosen by the Company and such accepting
purchaser(s).  In the event that the purchase of the Stock is not consummated
through no fault of the selling party on or before the closing date determined
in accordance with the provisions hereof, the right of any party failing to
purchase such Stock hereunder on such occasion shall expire.

4.6  Payment for Stock.  Except as otherwise provided hereinafter with respect
     -----------------
to certain purchases of Stock by the Company, all payments hereunder shall be
made in cash, by certified cashier's or bank check, or by wire transfer of
immediately available funds.  To the extent that the proposed consideration to
be paid by any proposed transferee as described in a Transfer Notice pursuant to
Section 2.2 consists of property other than cash, the purchase price under
Sections 2.2 through 2.3, inclusive, of this Agreement shall be paid in cash in
lieu of the fair market value of such non-cash consideration, or the fair value
thereof if there is no market therefor.

4.7  Delivery of Stock and Documents.  Upon the closing of a sale as herein
     -------------------------------
provided, the seller shall deliver to each purchaser in exchange for payment of

                                       7
<PAGE>

the purchase price:  (a) the certificates for the Stock being sold, endorsed for
transfer and bearing any necessary documentary stamps, and (b) such assignments,
certificates of authority, tax releases, consents to transfer, instruments and
evidence of title of the seller, and of his compliance with applicable state and
Federal law, as may be reasonably required by counsel for each such purchaser.

4.8  Entire Agreement.  This Agreement represents the complete agreement among
     ----------------
the parties hereto with respect to the transactions contemplated hereby and
supersedes all prior written or oral agreements and understandings.

4.9  Pronouns.  Whenever the context of this Agreement permits, the masculine
     --------
gender shall include the feminine and neuter genders, and any reference to the
singular or plural shall be interchangeable with the other.

4.10 Separability.  The invalidity or unenforceability of any one or more
     ------------
provisions of this Agreement shall not affect the other provisions hereof, and
this Agreement shall be construed in all respects as if any such invalid or
unenforceable provisions were omitted.

4.11 Headings.  The headings in this Agreement have been inserted for
     --------
convenience of reference only and shall not constitute a part of this Agreement.

4.12 Adjustments.  If there shall be any change in the Stock of the Company
     -----------
through merger, consolidation, reorganization, recapitalization, stock dividend,
stock split, anti-dilution, addition, combination or exchange of shares, or the
like (any such event being an "Adjustment"), all of the terms and provisions of
                               ----------
this Agreement shall apply to any new, additional or different shares or
securities issued as a result of such Adjustment and the price and number of
securities subject to the provisions hereof shall be adjusted accordingly.

4.13 Notices.  All notices, requests, demands, and other communications under
     -------
this Agreement shall be in writing and shall be deemed to have been duly given
on the date of service if served personally on the party to whom notice is to be
given, on the date of transmittal of services via telecopy to the party to whom
notice is to be given (provided the sender of such notice is provided with a
printed confirmation of same), or on the third day after mailing if mailed to
the party to whom notice is to be given, by first class mail, registered or
certified, postage prepaid, or via a nationally recognized overnight courier
providing a receipt for delivery and properly addressed as set forth in Schedule
                                                                        --------
I.  Any party may change its address for purposes of this paragraph by giving
-
notice of the new address to each of the other parties in the manner set forth
above.

4.14 Binding Effect.  This Agreement shall be binding upon and inure to the
     --------------
benefit of the parties hereto and their respective heirs, representatives,

                                       8
<PAGE>

successors and assigns.  Neither this Agreement nor any of its terms and
conditions, rights and obligations may be assigned by any party hereto except
with the prior written consent of all of the parties hereto, or except as
otherwise expressly permitted herein.

4.15  Parties.  Any person who acquires ownership of Stock of the Investor
      -------
and/or the Founder (including shares of Stock hereafter issued to the Founder
and/or the Investor) in accordance with the terms of this Agreement shall
automatically become a party to this Agreement, as a Shareholder, and shall
confirm such fact by executing, upon request of any of the parties hereto, a
counterpart of this Agreement.

4.16  Failure to Comply with the Provisions of this Agreement.  In addition to
      -------------------------------------------------------
any other legal or equitable remedies which it or they may have, the Company and
the Shareholders may enforce their rights under any provision of this Agreement
by actions for specific performance (to the extent permitted by law) and each
party hereto acknowledges and agrees that the parties hereto will be irreparably
damaged in the event that this Agreement is breached.  Further, the Company may
refuse to transfer on its books record ownership of Stock which shall have been
sold or transferred in violation of this Agreement or to recognize any
transferee as one of the Company's shareholders for any purpose (including
without limitation, for purposes of dividend and voting rights) until all
applicable provisions of this Agreement have been complied with in full.  All
remedies provided by this Agreement are in addition to other remedies provided
by law.

4.17  Waiver, Amendment and Termination. This Agreement may not be amended or
      ---------------------------------
modified, and no provision hereof may be waived, without the written consent of
the parties hereto.  This Agreement shall terminate with respect to all shares
of Stock upon the closing of (a) a sale of all of the capital stock of the
Company, or (b) the consummation of any transaction in accordance with the
provisions of Section 3.2 hereof.

4.18  Counterparts; Telecopier.  This Agreement may be executed in multiple
      ------------------------
counterparts and via telecopier, each of which shall have the force and effect
of an original and all of which together shall constitute but one and the same
document.

4.19  Governing Law; Jurisdiction; Venue; Attorney's Fees.  This Agreement is
      ---------------------------------------------------
executed and delivered in the State of Florida, and this Agreement shall be
governed by and construed in accordance with the laws of the State of Florida
for all purposes and in all respects, without regard to the conflict or choice
of law provisions of such state.  Any action and/or proceeding relating to or
arising out of this Agreement shall be brought solely in the federal and/or
state courts located in Miami-Dade County, Florida.  The prevailing
party/parties in any such

                                       9
<PAGE>

action and/or proceeding shall be entitled to recover its reasonable attorney's
fees and costs from the other party.

4.20 Rule of Construction that Ambiguities to be Construed Against the Drafter
     -------------------------------------------------------------------------
of the Document not Applicable. In view of the fact that the parties to this
------------------------------
Agreement have each been represented by their respective counsel in connection
herewith, by their respective execution of this Agreement each of the parties
hereto agrees and acknowledges that the rule of construction that ambiguities
shall be construed against the drafter shall not be applicable to this
Agreement.

IN WITNESS WHEREOF, the Company and the Shareholders have executed this
Shareholders' Agreement as of the day and year first above written.

                              THE COMPANY:
                              INTERCALLNET, INC.

                              By:  _____________________________
                              George Pacinelli, President

                              THE INVESTOR:
                              STANFORD VENTURE CAPITAL HOLDINGS, INC.

                              By:
                                 James M. Davis, President

                              THE FOUNDER:

                              _______________________________
                              Scott Gershon

                                  Schedule I
                                  ----------
                            Shareholders' Addresses

                                      10
<PAGE>

                         Stanford Venture Capital Holdings, Inc.
                         201 South Biscayne Boulevard, Suite 1200
                         Miami, Florida 33131
                         Telecopy:  (305) 960-8535
                         Attention: James M. Davis, President

                         Scott Gershon c/o
                         Intercalllnet, Inc.
                         6340 NW 5th Way
                         Fort Lauderdale, Florida 3309
                         Telecopy:  (954) 315-3222

                                      11<PAGE>

                                                                    EXHIBIT 10.4
                                                                    ------------

                         REGISTRATION RIGHTS AGREEMENT
                         -----------------------------

                                     -12-
<PAGE>

                         REGISTRATION RIGHTS AGREEMENT

THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement"), dated as of February 28,
                                          ---------
2002 is entered into by and between Intercallnet, Inc., a Florida corporation
(the "Company"), and the investor named on the signature page hereto (the
      -------
"Investor"), as amended from time to time to include any Investor Transferee (as
---------
defined in Section 2.1 hereof).

                                   RECITALS

WHEREAS, concurrent with the execution and delivery of this Agreement (or at the
Closing, if later), the Company is issuing and selling to the Investor 1,500,000
shares (the "Preferred Shares") of its Series A Convertible Preferred Stock,
             ----------------
$0.0001 par value per share (the "Series A Convertible Preferred Stock"), and
                                  ------------------------------------
certain warrants (the "Warrants") to purchase shares of its Common Stock, par
                       --------
value $0.0001 par value per share (the "Common Stock") pursuant to the terms and
conditions of that certain Series A Convertible Preferred Stock and Warrant
Purchase Agreement dated of even date herewith between the Company and such
Investor (the "Purchase Agreement");
               ------------------

WHEREAS, the Company and the Investor desire to enter into an agreement granting
the Investor certain registration rights, information rights and other rights in
connection with its ownership of shares of the Preferred Shares (including the
Conversion Shares into which such Preferred Shares are convertible) and Warrants
(including the shares of the Company's common stock into which such Warrants are
exercisable).

NOW, THEREFORE, in consideration of the promises and mutual agreements set forth
herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

                                   ARTICLE I
                       DEFINITIONS; REGISTRATION RIGHTS

1.1  Certain Definitions.  As used in this Agreement, the following terms shall
     -------------------
have the following respective meanings:

     "Commission" shall mean the Securities and Exchange Commission, or any
      ----------
     other federal agency at the time administering the Securities Act.

          "Common Stock" shall mean the common stock, $0.0001 par value, of the
           ------------
          Company and any class of common stock of the Company into which such
          common stock is converted or reclassified or for which such common
          stock is exchanged.

          "Conversion Shares" shall mean shares of Common Stock issued or
           -----------------
          issuable upon conversion of the Preferred Shares.
<PAGE>

     "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended,
      -------------
     or any similar federal rule or statute, and the rules and regulations of
     the Commission thereunder, all as the same shall be in effect at the time.

     "Register," "registered" and "registration" refer to a registration
      --------    ----------       ------------
     effected by preparing and filing a registration statement in compliance
     with the Securities Act, as defined below, and the declaration or ordering
     of the effectiveness of such registration statement.

     "Registrable Securities" shall mean (i) the Conversion Shares, (ii) the
      ----------------------
     Warrant Shares (and shares of the Company's Common Stock underlying Penalty
     Warrants, as such term is defined herein), and (iii) shares issued or
     issuable upon an adjustment for stock splits, stock dividends and the like
     (including, without limitation, any such adjustments with respect to the
     securities referred to in (i) and (ii) above).  Notwithstanding the
     foregoing, Registrable Securities shall not include Conversion Shares
     and/or Warrant Shares (and/or shares of the Company's Common Stock
     underlying Penalty Warrants) which have been (i) registered under the
     Securities Act pursuant to an effective registration statement filed
     thereunder and disposed of in accordance with the registration statement
     covering them, (ii) publicly sold pursuant to Rule 144 under the Securities
     Act, or (iii) eligible for sale under Rule 144(k) under the Securities Act.

     "Securities Act" shall mean the Securities Act of 1933, as amended, or any
      --------------
     similar federal rule or statute, and the rules and regulations of the
     Commission thereunder, all as the same shall be in effect at the time.

     "Shareholders' Agreement" shall mean the Shareholders' Agreement, dated the
      -----------------------
     date hereof, among the Company and certain shareholders of the Company.

     "Warrant Shares" shall mean shares of Common Stock issued or issuable upon
      --------------
     exercise of the Warrants.

1.2  Restrictive Legend.  Each certificate representing Preferred Shares or
     ------------------
Conversion Shares shall, except as otherwise provided in Section 1.3, be stamped
or otherwise imprinted with a legend substantially in the following form:

                              "TRANSFER RESTRICTED
<PAGE>

     THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A
     REGISTRATION RIGHTS AGREEMENT BY AND BETWEEN THE COMPANY AND A CERTAIN
     SHAREHOLDER.  A COPY OF THE REGISTRATION RIGHTS AGREEMENT MAY BE OBTAINED
     FROM THE COMPANY WITHOUT CHARGE UPON THE WRITTEN REQUEST OF THE HOLDER
     HEREOF.

     THE SHARES OF COMMON STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
     REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT") AND MAY
     NOT BE OFFERED, SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE
     TRANSFERRED UNLESS (1) THEY ARE REGISTERED UNDER THE ACT OR (2) THE HOLDER
     HAS DELIVERED TO THE ISSUER AN OPINION OF COUNSEL, SATISFACTORY TO THE
     ISSUER AND ITS COUNSEL, TO THE EFFECT THAT THERE IS AN AVAILABLE EXEMPTION
     FROM REGISTRATION UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR
     THAT REGISTRATION IS OTHERWISE NOT REQUIRED.

1.3  Required Registration.
     ---------------------

     (a) Not later than November 30, 2002 (60 days following September 30, 2002,
     the required date for filing the Company's Form 10-KSB for the fiscal year
     ended June 30, 2002), the Company shall file a Form SB-2 registration
     statement with the Commission registering all of the Registrable
     Securities; provided, however, that the Company may, by notice to the
                 --------  -------
     holders of the Preferred Shares, Warrants and/or the Registrable
     Securities, delay such registration if the Company's Board of Directors
     determines that such registration at such time would have a material
     adverse effect upon the Company; provided, further, however, that the
                                      --------  -------  -------
     Company's ability to delay such registration shall be limited to a duration
     of no longer than ninety (90) days and the Company shall not delay more
     than once.

     The Company shall not be obligated pursuant to this Section 1.3 to
effectuate more than  one (1) registration.

     (b) The Company's registration obligation hereunder shall be deemed
     satisfied only when a registration statement covering all shares of
     Registrable Securities shall have become effective with the Commission.
<PAGE>

     (c) The Company shall be entitled to include in any registration statement
     referred to in this Section 1.3 for sale shares of Common Stock to be sold
     by the Company for its own account and/or for the account of other security
     holders or both, except as and to the extent that, in the reasonable
     opinion of the managing underwriter (if such method of disposition shall be
     an underwritten public offering), such inclusion would materially adversely
     affect the marketing of the Registrable Securities to be sold.  Except for
     registration statements on Form S-4, S-8 or any successor thereto, the
     Company will not file with the Commission any other registration statement
     with respect to its Common Stock, whether for its own account or that of
     other security holders, from the date of the effectiveness of the
     registration statement pursuant to this Section1.3 until the completion of
     the lesser of the period of distribution of the shares of Registrable
     Securities registered thereby or one hundred eighty (180) days from the
     effective date of the registration statement.

1.4  Company Registration.
     ---------------------

     (a) Notice of Registration.  If at any time or from time to time the
         -----------------------
Company shall determine to register any of its equity securities, either for its
own account or the account of the Investor or other holders, other than (i) a
registration relating solely to employee benefit plans and otherwise pursuant to
Form S-8 and the instructions to Form S-8, (ii) a registration relating solely
to a Rule 145 transaction, or (iii) a registration in which the only equity
security being registered is Common Stock issuable upon conversion of
convertible debt securities which are also being registered, the Company will:

         (i)  promptly give to the Investor written notice thereof; and

         (ii) include in such registration (and any related qualifications
including compliance with Blue Sky laws), and in any underwriting involved
therein, all the Registrable Securities specified in a written request or
requests, made within ten (10) business days after the date of such written
notice from the Company, by the Investor.

     (b) Underwriting.  If the registration of which the Company gives notice is
         -------------
for a registered public offering involving an underwriting, the Company shall so
advise the Investor as a part of the written notice given pursuant to Section
1.4(a)(i).  In such event, the right of the Investor to registration pursuant to
Section 1.4 shall be conditioned upon the Investor's participation in such
underwriting and the inclusion of Registrable Securities in the underwriting
shall be limited to the extent provided herein.  Notwithstanding any other
provision of this Section 1.4, if the managing underwriter determines that
marketing factors require a limitation of the number of shares to be
underwritten, the managing
<PAGE>

underwriter may limit the Registrable Securities to be included in such
registration to zero, provided that the Company shall ensure that such
                      --------
reductions shall be made in the following order of priority: (x) first, the
shares held by selling holders, including, but not limited to, employees of the
Company and members of the Company's board of directors, other than the Investor
shall be reduced; (y) second, the shares held by the Investor shall be reduced;
and (z) third, the shares of the Company to be included in the underwriting
shall be reduced. The Company shall so advise all holders requesting to be
included in the registration and underwriting, and the number of shares of
Registrable Securities that may be included in the registration and underwriting
shall be allocated among all the holder requesting to be included in the
registration and underwriting in proportion, as nearly as practicable, to the
respective amounts of Registrable Securities held by them at the time of filing
the registration statement. To facilitate the allocation of shares in accordance
with the above provisions, the Company or the underwriters may round the number
of shares allocated to any holder to the nearest 100 shares. If any holder
disapproves of the terms of any such underwriting, such person may elect to
withdraw therefrom by written notice to the Company.

     (c) Right to Terminate Registration.  The Company shall have the right to
         --------------------------------
terminate or withdraw any registration initiated by it under this Section 1.4
prior to the effectiveness of such registration whether or not the Investor has
elected to include securities in such registration.

1.5  Registration Procedures.  When the Company is required by the provisions of
     -----------------------
Sections 1.3 to effect the filing of a registration statement concerning the
registration of any shares of Registrable Securities under the Securities Act,
the Company will, at its cost and expense (including without limitation, payment
of the costs and expenses described in Section 1.6), as expeditiously as
reasonably practicable:

     (a) prepare and file with the Commission a registration statement with
     respect to such securities and use all commercially reasonable best efforts
     to cause such registration statement to become and remain effective for the
     period of the distribution contemplated thereby (determined as hereinafter
     provided);

     (b) prepare and file as expeditiously as reasonably practicable and in any
     event within ninety (90) days with the Commission such amendments and
     supplements to such registration statement and the prospectus used in
     connection therewith as may be necessary to keep such registration
     statement effective for the period specified in Section 1.4(a) above and
     comply with the provisions of the Securities Act with respect to the
     disposition of all Registrable Securities covered by such registration
<PAGE>

     statement in accordance with the sellers' intended method of disposition
     set forth in such registration statement for such period;

     (c) furnish to each seller of Registrable Securities and to each
     underwriter such number of copies of the registration statement and the
     prospectus included therein (including each preliminary prospectus) as such
     persons reasonably may request in order to facilitate the public sale or
     other disposition of the Registrable Securities covered by such
     registration statement;

     (d) use its best efforts to register and qualify the Registrable Securities
     covered by such registration statement under the securities or "blue sky"
     laws of such jurisdictions as the sellers of Registrable Securities or, in
     the case of an underwritten public offering, the managing underwriter
     reasonably shall request, provided, however, that the Company shall not for
                               --------  -------
     any such purpose be required to qualify generally to transact business as a
     foreign corporation in any jurisdiction where it is not so qualified or to
     consent to general service of process in any such jurisdiction unless the
     Company is already subject to service in such jurisdiction and except as
     may be required by the Securities Act;

     (e) cause all such Registrable Securities to be listed on any securities
     exchange on which the Common Stock of the Company is then listed;

     (f) immediately notify in writing each seller of Registrable Securities and
     each underwriter under such registration statement, at any time when a
     prospectus relating thereto is required to be delivered under the
     Securities Act, of the happening of any event as a result of which the
     prospectus contained in such registration statement, as then in effect,
     includes an untrue statement of a material fact or omits to state a
     material fact required to be stated therein or necessary to make the
     statements therein not misleading in light of the circumstances then
     existing.  The Company will use its best efforts to amend or supplement
     such prospectus in order to cause such prospectus not to include, as to
     information provided by the Company, any untrue statement of a material
     fact or omit to state a material fact required to be stated therein or
     necessary to make the statements therein not misleading in light of the
     circumstances then existing as to information provided by both the Company
     and the sellers of Registrable Securities.  The sellers of Registrable
     Securities agree upon receipt of such notice forthwith to cease making
     offers and sales of Registrable Securities pursuant to such registration
     statement or deliveries of the prospectus contained therein for any purpose
     until the Company has prepared and furnished such amendment or supplement
     to the prospectus as may be necessary so that, as thereafter delivered to
<PAGE>

     purchasers of such Registrable Securities, such prospectus shall not
     include 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 not misleading in the light of the circumstances then existing;

     (g) notify in writing each seller of Registrable Securities under such
     registration statement of (i) the effectiveness of such registration
     statement, (ii) the filing of any post-effective amendments to such
     registration statement, or (iii) the filing of a supplement to such
     registration statement; and

     (h) make available for inspection upon reasonable notice during the
     Company's regular business hours by each seller of Registrable Securities,
     any underwriter participating in any distribution pursuant to such
     registration statement, and any attorney, accountant or other agent
     retained by such seller or underwriter, all material financial and other
     records, pertinent corporate documents and properties of the Company, and
     cause the Company's officers and directors to supply all information
     reasonably requested by any such seller, underwriter, attorney, accountant
     or agent in connection with such registration statement.

     (i) provide a transfer agent and registrar for all Registrable Securities
     registered pursuant hereto to be listed on each securities exchange or
     automated quotation system on which similar securities issued by the
     Company are then listed.

     (j) Use its best efforts to furnish, on the date that such Registrable
     Securities are delivered to the underwriters for sale, if such securities
     are being sold through underwriters, (a) an opinion, dated as of such date,
     of the counsel representing the Company for the purposes of such
     registration, in form and substance as is customarily given to underwriters
     in an underwritten public offering, addressed to the underwriters, if any,
     and (b) a letter, dated as of such date, from the independent certified
     public accountants of the Company, in form and substance as is customarily
     given by independent certified public accountants to underwriters in an
     underwritten public offering addressed to the underwriters.

     For purposes of Section 1.5(a) and 1.5(b) and of Section 1.3(c), the period
of distribution of Registrable Securities in a firm commitment underwritten
public offering shall be deemed to extend until each underwriter has completed
the distribution of all securities purchased by it, and the period of
distribution of Registrable Securities in any other registration shall be deemed
to extend until the earlier of the sale of all Registrable Securities covered
thereby or one
<PAGE>

hundred eighty (180) days after the effective date thereof, with reasonable
extensions to be granted for suspensions thereof.

     In connection with and as a condition to each registration hereunder, the
sellers of Registrable Securities shall (a) provide such information and execute
such documents as may reasonably be required in connection with such
registration, (b) agree to sell Registrable Securities on the basis provided in
any underwriting arrangements, and (c) complete and execute all questionnaires,
powers of attorney, indemnities, underwriting agreements and other documents
reasonably required or requested under the terms of such underwriting
arrangements.

     In connection with a registration pursuant to Section 1.3 covering an
underwritten public offering, the Company and each seller agree to enter into a
written agreement with the managing underwriter selected in the manner herein
provided in such form and containing such provisions as are customary in the
securities business for such an arrangement between such underwriter and
companies of the Company's size and investment stature.

1.6  Expenses.  All expenses incurred by the Company in complying with Section
     --------
1.3  including, without limitation, all registration and filing fees,
registration fees, printing expenses, fees and disbursements of counsel and
independent public accountants for the Company, fees and expenses (including
counsel fees) incurred in connection with complying with state securities or
"blue sky" laws, transfer taxes, fees of transfer agents and registrars, and the
reasonable fees and disbursements of one counsel for the sellers of Registrable
Securities but excluding any Selling Expenses (as defined below), are called
"Registration Expenses."  All underwriting discounts and selling commissions
 ---------------------
applicable to the sale of Registrable Securities and the fees of more than one
counsel for the sellers are called "Selling Expenses."
                                    ----------------

     The Company will pay all Registration Expenses in connection with a
registration statement under Section 1.3.  All Selling Expenses in connection
with a registration statement under Section 1.3 shall be borne by the
participating sellers in proportion to the number of shares sold by each, or by
such participating sellers other than the Company (except to the extent the
Company shall be a seller) as they may agree.

1.7  Information by Holder.  The holder or holders of Registrable Securities
     ---------------------
included in any registration shall furnish to the Company such information
regarding such holder or holders of Registrable Securities, the Registrable
Securities held by them and the distribution proposed by such holder or holders
of Registrable Securities as the Company may reasonably request in writing and
as shall be required in connection with any registration (including any
<PAGE>

amendment to a registration statement or prospectus), qualification or
compliance referred to in this Section 1.7.

1.8  Lock-Up Agreements.  Each holder of Registrable Securities shall agree to
     ------------------
be bound by such lock-up agreements (not to exceed a period of ninety (90) days
following the date of the prospectus relating to any such underwriting) as the
managing underwriter of any such registration shall specify as a requirement to
any such underwriting, provided that the entry of such holder of Registrable
Securities into such agreements shall be conditioned upon all current and then
greater than ten percent (10%) shareholders and executive officers and directors
of the Company also agreeing to execute such lock-up agreement regardless of the
number of shares of the capital stock of the Company then owned by them.

1.9  Indemnification and Contribution.
     --------------------------------

     (a) In connection with a registration of the Registrable Securities under
     the Securities Act pursuant to Section 1.3, the Company will indemnify and
     hold harmless each seller of such Registrable Securities thereunder and
     each of its officers and directors, each underwriter of such Registrable
     Securities thereunder and each other person, if any, who controls such
     seller or underwriter within the meaning of Section15 of the Securities
     Act, from and against any expenses, losses, claims, damages or liabilities,
     joint or several, to which such seller, underwriter or controlling person
     may become subject under the Securities Act or under any other statute or
     at common law or otherwise, insofar as such expenses, losses, claims,
     damages or liabilities (or actions in respect thereof) arise out of or are
     based upon any untrue statement or alleged untrue statement of any material
     fact contained in any registration statement under which such Registrable
     Securities were registered under the Securities Act, any preliminary
     prospectus or final prospectus contained therein, offering circular or
     other document or any amendment or supplement thereof or any document
     incorporated by reference therein, or arise out of or are based upon the
     omission or alleged omission to state therein a material fact required to
     be stated therein or necessary to make the statements therein not
     misleading or any violations of applicable law relating to such
     registration, including, without limitation, the Securities Act, the
     Exchange Act, state securities laws or any rule or regulation promulgated
     under such laws, and will pay the reasonable legal fees and other expenses
     of each such seller, each of its officers and directors, each such
     underwriter and each such controlling person incurred by them in connection
     with investigating or defending any action whether or not resulting in any
     liability insofar as such loss, expense, claim, damage, liability or action
     results from the foregoing, provided, however, that the Company will not be
                                 --------  -------
     liable to a seller in any such case if and to the extent that any such
<PAGE>

     loss, expense, claim, damage or liability arises out of or is based upon an
     untrue statement or alleged untrue statement or omission or alleged
     omission so made in reliance upon and in conformity with information
     furnished in writing and duly executed by any such seller, any such
     underwriter or any such controlling person specifically for use in such
     registration statement or prospectus, and, provided further, however, that
                                                -------- -------  -------
     the Company will not be liable to a holder in any such case to the extent
     that any such loss, expense, claim, damage, liability or action arises out
     of or is based upon an untrue or alleged untrue statement or omission or an
     alleged omission made in any preliminary prospectus or final prospectus if
     (1) such holder failed to send or deliver a copy of the final prospectus or
     prospectus supplement with or prior to the delivery of written confirmation
     of the sale of the Registrable Securities, and (2) the final prospectus or
     prospectus supplement would have corrected such untrue statement or
     omission.

     (b) In connection with a registration of the Registrable Securities under
     the Securities Act pursuant to Section 1.3, each seller of such Registrable
     Securities thereunder, severally and not jointly, will indemnify and hold
     harmless the Company, each person, if any, who controls the Company within
     the meaning of the Securities Act, each officer of the Company who signs
     the registration statement, each director of the Company, each underwriter
     and each person who controls any underwriter within the meaning of the
     Securities Act, against all expenses, losses, claims, damages or
     liabilities, joint or several, to which the Company or such officer,
     director, underwriter or controlling person may become subject under the
     Securities Act or otherwise, insofar as such expenses, losses, claims,
     damages or liabilities (or actions in respect thereof) arise out of or are
     based upon any untrue statement or alleged untrue statement of any material
     fact contained in the registration statement under which such Registrable
     Securities was registered under the Securities Act, any preliminary
     prospectus or final prospectus contained therein, or any amendment or
     supplement thereof, or arise out of or are based upon the omission or
     alleged omission to state therein a material fact required to be stated
     therein or necessary to make the statements therein not misleading, and
     will pay the reasonable legal fees and other expenses of the Company and
     each such officer, director, underwriter and controlling person reasonably
     incurred by them in connection with investigating or defending any such
     expense, loss, claim, damage, liability or action, provided, however, that
                                                        --------  -------
     such seller will be liable hereunder in any such case if and only to the
     extent that any such loss, claim, damage or liability arises out of or is
     based upon an untrue statement or alleged untrue statement or omission or
     alleged omission made in reliance upon and in conformity with information
     furnished in writing to the Company by such
<PAGE>

     seller specifically for use in such registration statement or prospectus,
     and provided, further, however, that the liability of each seller hereunder
         --------  -------  -------
     shall be limited to the amount of net proceeds received by such seller in
     connection with such registration.

     (c) Promptly after receipt by an indemnified party hereunder of notice of
     the commencement of any action, such indemnified party shall, if a claim in
     respect thereof is to be made against the indemnifying party hereunder,
     notify the indemnifying party in writing thereof, but the omission so to
     notify the indemnifying party shall not relieve it from any liability that
     it may have to such indemnified party under this Section 1.11 except and
     only to the extent the indemnifying party is materially prejudiced by such
     omission.  In case any such action shall be brought against any indemnified
     party and it shall notify the indemnifying party of the commencement
     thereof, the indemnifying party shall be permitted to participate in and,
     to the extent permitted, to assume and undertake the defense thereof at
     such indemnifying party's expenses provided that the indemnifying party
     shall not assume the defense for matters as to which there is a conflict of
     interest or there are separate and different defenses.

     (d) In order to provide for just and equitable contribution to joint
     liability under the Securities Act in any case in which the indemnified
     party makes a claim for indemnification pursuant to this Section 1.9 but it
     is judicially determined (by the entry of a final judgment or decree by a
     court of competent jurisdiction and the expiration of time to appeal or the
     denial of the last right of appeal) that such indemnification may not be
     enforced in such case notwithstanding the fact that this Section 1.9
     provides for indemnification in such case, or (ii) contribution under the
     Securities Act may be required on the part of the indemnifying party in
     circumstances for which indemnification is provided under this Section 1.9;
     then, and in each such case, the indemnifying party will , to the extent
     permitted by applicable law, contribute to the aggregate losses, claims,
     damages or liabilities to which it is subject (after contribution from
     others) in such proportion as is appropriate to reflect relative fault of
     the indemnifying party on the one hand and of the indemnified party on the
     other as to the matters giving rise to such losses, claims, damages or
     liabilities as well as any other relevant equitable considerations,
     provided, however, that, in any such case, no person or entity guilty of
     fraudulent misrepresentation (within the meaning of Section 12(f) of the
     Securities Act) will be entitled to contribution from any person or entity
     who was not guilty of such fraudulent misrepresentation.

     (e) No indemnifying party shall, without the prior written consent of the
     indemnified party, effect any settlement of any pending or threatened
<PAGE>

     action, suit or proceeding in respect of which any indemnified party is or
     could have been a party and indemnity could have been sought hereunder by
     such indemnified party, unless such settlement includes an unconditional
     release of such indemnified party from all liability on claims that are the
     subject matter of such action, suit or proceeding.

1.10 Changes in Common Stock or Preferred Shares.  If, and as often as, there
     -------------------------------------------
is any change in the Common Stock or the Preferred Shares by way of a stock
split, stock dividend, combination or reclassification, or through a merger,
consolidation, reorganization or recapitalization, or by any other means,
appropriate adjustment shall be made in the provisions hereof so that the rights
and privileges granted hereby shall continue with respect to the Common Stock or
the Preferred Shares as so changed.

1.11 Rule 144 Reporting and Rule 144A Information.  With a view to making
     --------------------------------------------
available the benefits of certain rules and regulations of the Commission that
may at any time permit the resale of the Registrable Shares without
registration, the Company will:

     (a)  at all times use its commercially reasonable efforts to:

          (i)   make and keep public information available, as those terms are
          understood and defined in Rule 144 under the Securities Act;

          (ii)  file with the Commission in a timely manner all reports and
          other documents required of the Company under the Securities Act and
          the Exchange Act; and

          (iii) furnish to each holder of Registrable Securities forthwith upon
          request a written statement by the Company as to its compliance with
          the reporting requirements of such Rule 144 and of the Securities Act
          and the Exchange Act, a copy of the most recent annual or quarterly
          report of the Company, and such other reports and documents of the
          Company and other information in the possession of or reasonably
          obtainable by the Company as such holder may reasonably request in
          availing itself of any rule or regulation of the Commission allowing
          such holder to sell any Registrable Securities without registration;
          and

     (b)  at any time, at the request of any holder of Preferred Shares or
     shares of Registrable Securities, make available to such holder and to any
     prospective transferee of such Preferred Shares or shares of Registrable
     Securities the information concerning the Company described in Rule
     144A(d)(4) under the Securities Act.
<PAGE>

1.12  Failure to Timely File Registration Statement.  In the event the Company
      ---------------------------------------------
fails to timely file a registration statement with the Commission pursuant to
the terms and provisions of Section 1.3 hereof, the Company will then promptly
issue or cause to be issued to the Investor additional common stock purchase
warrants equal to 10% of the Warrants originally issued (and, on a pro-rata
basis, having the same various exercise prices per share as the Warrants
originally issued) for each quarter such registration statement is not filed
(the "Penalty Warrants").  The shares of the Company's Common Stock underlying
such Penalty Warrants shall have the same registration rights as the Registrable
Securities, and such other rights as may be provided pursuant to the
Shareholders' Agreement and the Company's Articles of Incorporation as may be
amended from time to time.

                                   ARTICLE II
                                 MISCELLANEOUS

2.1  Successors and Assigns.  All covenants and agreements contained in this
     ----------------------
Agreement by or on behalf of any of the parties hereto shall bind and inure to
the benefit of the respective successors and assigns of the parties hereto
(including without limitation transferees of any Preferred Shares,  Warrants or
Penalty Warrants), whether so expressed or not; provided, however, that the
                                                --------- -------
rights conferred in this Agreement on the Investors shall only inure to the
benefit of a transferee of Preferred Shares and/or Warrants and/or Penalty
Warrants if notice of such transfer or assignment is given to the Company and
such Investor Transferee has agreed in writing to be bound by the terms of this
Agreement and the Shareholders Agreement.

2.2  Governing Law; Jurisdiction; Venue; Attorney's Fees.  This Agreement is
     ---------------------------------------------------
executed and delivered in the State of Florida, and this Agreement shall be
governed by and construed in accordance with the laws of the State of Florida
for all purposes and in all respects, without giving effect to the conflict or
choice of law provisions thereof.  Any action and/or proceeding relating to or
arising out of this Agreement shall be brought solely in the federal and/or
state courts located in Miami-Dade County, Florida.  The prevailing
party/parties in such action and/or proceeding shall be entitled to recover its
reasonable attorney's fees and costs from the other party.

2.3  Integration; Amendment.  This Agreement and the other documents delivered
     ----------------------
pursuant hereto constitute the full and entire understanding and agreement among
the parties with regard to the subjects hereof and thereof, and supersede any
previous agreement or understanding between or among the parties with respect to
such subjects. No party shall be liable or bound to any other party in any
manner by any warranties, representations or covenants except as specifically
set forth herein or therein. Except as expressly provided
<PAGE>

herein neither this Agreement nor any term hereof may be amended, waived,
discharged or terminated other than by a written instrument signed by the party
against whom enforcement of any such amendment, waiver, discharge or termination
is sought. Any amendments, waivers, discharges or terminations of this Agreement
effected in accordance herewith shall be binding upon all parties hereto,
including those not signing such amendment, waiver, discharge or termination.

2.4  Notices.  All notices, requests, demands, and other communications under
     -------
this Agreement shall be in writing and shall be deemed to have been duly given
on the date of service if served personally on the party to whom notice is to be
given, on the date of transmittal of service via telecopier to the party to whom
notice is to be given (provided the sender of such notice via telecopier is
provided with a printed confirmation of same), or on the third day after mailing
if mailed to the party to whom notice is to be given, by first class mail,
registered or certified, postage prepaid, or via overnight courier providing a
receipt and properly addressed as set forth on Schedule I hereto.  Any party may
                                               ----------
change its address for purposes of this paragraph by giving notice of the new
address to each of the other parties in the manner set forth above.

2.5  Counterparts; Telecopier.  This Agreement may be executed in any number of
     ------------------------
counterparts and via telecopier, each of which shall be enforceable against the
parties actually executing such counterparts, and all of which together shall
constitute one instrument.

2.6  Severability.  In the event that any provision of this Agreement becomes or
     ------------
is declared by a court of competent jurisdiction to be illegal, unenforceable or
void, this Agreement shall continue in full force and effect without said
provision; provided that no such severability shall be effective if it
materially changes the economic benefit of this Agreement to any party.

2.7  Titles and Subtitles.  The titles and subtitles used in this Agreement are
     --------------------
used for convenience only and are not considered in construing or interpreting
this Agreement.

2.8  Rule of Construction that Ambiguities to be Construed Against the Drafter
     -------------------------------------------------------------------------
of the Document Not Applicable.  In view of the fact that the parties to this
------------------------------
Agreement have both been represented by their respective counsel in connection
herewith, the rule of construction that ambiguities shall be construed against
the drafter shall not be applicable.
<PAGE>

IN WITNESS WHEREOF, the Company and the Investor have executed this Agreement as
of the day and year first above written.

                               THE COMPANY:

                               Intercallnet, Inc.

                               By:
                                  Scott Gershon, Chief Executive Officer

                               THE INVESTOR:

                               Stanford Venture Capital Holdings, Inc.

                               By:
                                  _______________,_____________

                                  Schedule I

If to the Company:     Intercallnet, Inc.
                       6340 NW 5th Way
                       Fort Lauderdale, Florida 3309
                       Telecopier: (954) 315-3222
                       Attention: Scott Gershon, Chief Executive Officer

with copies to:        Kipnis Tescher Lippman & Valinsky
                       100 NE 3rd Avenue, Suite 610
                       Ft. Lauderdale, Florida 33301
                       Telecopy:  (954) 467-2264
                       Attention:  Jay Valinsky, Esq.

If to the Investor:    Stanford Venture Capital Holdings, Inc.
                       201 South Biscayne Boulevard, Suite 1200
                       Miami, Florida 33131
                       Telecopy: (305) 960-8535
                       Attention: James M. Davis, President

with copies to:        Hunton & Williams, P.A.
<PAGE>

                       1111 Brickell Avenue, Suite 2500
                       Miami, Florida 33131-3126
                       Telecopy: (305) 810-2460
                       Attention: Alberto Hernandez, Esq.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}]]