Document:

SECURITIES PURCHASE AGREEMENT

      This Securities  Purchase Agreement (this "Agreement") is dated as of July
__, 2004, among Tasker Capital Corp., a Nevada corporation (the "Company"),  and
the  purchasers  identified on the signature  pages hereto (each,  including its
successors and assigns, a "Purchaser" and collectively the "Purchasers").

      WHEREAS,  subject to the terms and  conditions set forth in this Agreement
and  pursuant to Section  4(2) of the  Securities  Act of 1933,  as amended (the
"Securities  Act") and Rule 506 promulgated  thereunder,  the Company desires to
issue and sell to each Purchaser, and each Purchaser, severally and not jointly,
desires to purchase  from the Company,  securities  of the Company as more fully
described in this Agreement.

      NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this
Agreement,  and for  other  good and  valuable  consideration  the  receipt  and
adequacy of which are hereby acknowledged, the Company and each Purchaser agrees
as follows:

                                    ARTICLE I

                                   DEFINITIONS

      1.1  Definitions.  In  addition  to the terms  defined  elsewhere  in this
Agreement:  (a) capitalized terms that are not otherwise defined herein have the
meanings given to such terms in the Debentures (as defined herein),  and (b) the
following terms have the meanings indicated in this Section 1.1:

            "Action"  shall have the  meaning  ascribed  to such term in Section
      3.1(j).

            "Affiliate"  means any Person that,  directly or indirectly  through
      one or more  intermediaries,  controls  or is  controlled  by or is  under
      common  control  with a Person,  as such  terms are used in and  construed
      under Rule 144 under the Securities Act.

            "Closing"  means  the  closing  of  the  purchase  and  sale  of the
      Securities pursuant to Section 2.1.

            "Closing  Date" means the  Trading  Day when all of the  Transaction
      Documents  have been  executed  and  delivered by the  applicable  parties
      thereto, and all conditions precedent to (i) each Purchaser's  obligations
      to pay the Subscription  Amount have been satisfied or waived (ii) and the
      Company's  obligations  to deliver the  Securities  have been satisfied or
      waived.

            "Commission" means the Securities and Exchange Commission.

            "Common  Stock"  means the common  stock of the  Company,  par value
      $0.001 per share,  and any  securities  into which such common stock shall
      hereinafter have been reclassified into.

<PAGE>

            "Common Stock  Equivalents"  means any  securities of the Company or
      the Subsidiaries  which would entitle the holder thereof to acquire at any
      time Common  Stock,  including  without  limitation,  any debt,  preferred
      stock, rights,  options,  warrants or other instrument that is at any time
      convertible  into or  exchangeable  for, or otherwise  entitles the holder
      thereof to receive, Common Stock.

            "Company Counsel" means Sichenzia Ross Friedman Ference LLP.

            "Debentures"  means,  the  Convertible  Debentures  due  twenty-four
      months  from  their  date  of  issuance,  issued  by  the  Company  to the
      Purchasers hereunder, in the form of Exhibit A.

            "Disclosure  Schedules"  means the meaning  ascribed to such term in
      Section 3.1 hereof.

            "Effective  Date"  means  the  date  that the  initial  Registration
      Statement  filed  by  the  Company  pursuant  to the  Registration  Rights
      Agreement is first declared effective by the Commission.

            "Escrow  Agent"  shall  have the  meaning  set  forth in the  Escrow
      Agreement.

            "Escrow  Agreement" shall mean the Escrow Agreement in substantially
      the form of Exhibit E hereto executed and delivered contemporaneously with
      this Agreement.

            "Exempt  Issuances"  the  issuance of (a) shares of Common  Stock or
      options to employees, officers or directors of the Company pursuant to any
      stock or option plan duly adopted or (b)  securities  upon the exercise of
      or conversion of any securities issued hereunder,  convertible securities,
      options or warrants  issued and outstanding on the date of this Agreement,
      provided that such securities have not been amended since the date of this
      Agreement to increase the number of such securities (unless such amendment
      results from the application of any anti dilution provisions applicable to
      such   securities)  or  (c)  shares  of  Common  Stock  and  Common  Stock
      Equivalents  issued and issuable  pursuant to the Company's equity line of
      credit arranged by HPC Capital Management ("HPC Equity Line").

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

            "FW" means  Feldman  Weinstein  LLP with  offices  at 420  Lexington
      Avenue,  Suite 2620, New York, New York  10170-0002,  legal counsel to HPC
      Capital Management ("HPC").

            "GAAP"  shall  have the  meaning  ascribed  to such term in  Section
      3.1(h) hereof.

            "Liens"  shall  have the  meaning  ascribed  to such term in Section
      3.1(a) hereof.

                                      -2-
<PAGE>

            "Losses"  means any and all losses,  claims,  damages,  liabilities,
      settlement  costs and  expenses,  including  without  limitation  costs of
      preparation and reasonable attorneys' fees.

            "Material  Adverse  Effect" shall have the meaning  assigned to such
      term in Section 3.1(b) hereof.

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

            "Principal Amount" shall mean, as to each Purchaser, the amounts set
      forth below such Purchaser's signature block on the signature pages hereto
      and next to the heading  "Principal  Amount",  in United  States  Dollars,
      which shall be 119% of such Purchaser's Subscription Amount.

            "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.

            "Registration   Rights  Agreement"  means  the  Registration  Rights
      Agreement, dated the date hereof, among the Company and the Purchasers, in
      the form of Exhibit B attached hereto.

            "Registration  Statement" means a registration statement meeting the
      requirements set forth in the  Registration  Rights Agreement and covering
      the resale of the  Underlying  Shares by each Purchaser as provided for in
      the Registration Rights Agreement.

            "Required Approvals" shall have the meaning ascribed to such term in
      Section 3.1(e) hereof.

            "Required  Minimum"  means,  as of any date,  the maximum  aggregate
      number of shares of Common  Stock then issued or  potentially  issuable in
      the future pursuant to the Transaction Documents, including any Underlying
      Shares  issuable  upon  exercise or conversion in full of all Warrants and
      Debentures  (including Underlying Shares issuable as payment of interest),
      ignoring any conversion or exercise limits set forth therein, and assuming
      that the Set Price is at all times on and after the date of  determination
      75% of the then Set Price on the Trading Day immediately prior to the date
      of determination.

            "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.

            "SEC  Reports"  shall  have the  meaning  ascribed  to such  term in
      Section 3.1(h) hereof.

                                      -3-
<PAGE>

            "Securities"  means the Debentures,  the Warrants and the Underlying
      Shares.

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

            "Set  Price"  shall have the  meaning  ascribed  to such term in the
      Debentures.

            "Subscription  Amount" means,  as to each  Purchaser,  the aggregate
      amount to be paid for  Debentures  and  Warrants  purchased  hereunder  as
      specified  below  such  Purchaser's  name  on the  signature  page of this
      Agreement and next to the heading "Subscription  Amount", in United States
      Dollars and in immediately available funds.

            "Subsequent  Financing" shall have the meaning ascribed to such term
      in Section 4.13.

            "Subsidiary"  means any  subsidiary  of the  Company as set forth on
      Schedule 3.1(a) attached hereto.

            "Trading Day" means any day during which the Trading Market shall be
      open for business.

            "Trading  Market" means the following  markets or exchanges on which
      the Common  Stock is listed or quoted for trading on the date in question:
      OTC  Bulletin  Board,  the  American  Stock  Exchange,  the New York Stock
      Exchange, the Nasdaq National Market or the Nasdaq SmallCap Market.

            "Transaction  Documents" means this Agreement,  the Debentures,  the
      Warrants, the Registration Rights Agreement,  the Escrow Agreement and any
      other documents or agreements executed in connection with the transactions
      contemplated hereunder.

            "Underlying  Shares" means the shares of Common Stock  issuable upon
      conversion of the  Debentures and upon exercise of the Warrants and issued
      and issuable in lieu of the cash payment of interest on the Debentures.

            "VWAP" means, for any date, the price determined by the first of the
      following clauses that applies:  (a) if the Common Stock is then listed or
      quoted on a Trading Market, the daily volume weighted average price of the
      Common Stock for such date (or the nearest  preceding date) on the Trading
      Market on which the Common  Stock is then  listed or quoted as reported by
      Bloomberg  Financial L.P.  (based on a trading day from 9:30 a.m.  Eastern
      Time to 4:02  p.m.  Eastern  Time);  (b) if the  Common  Stock is not then
      listed or quoted on a Trading  Market and if prices  for the Common  Stock
      are then reported in the "Pink Sheets" published by the National Quotation
      Bureau Incorporated (or a similar organization or agency succeeding to its
      functions of reporting prices), the most recent bid price per share of the
      Common Stock so reported; or (c) in all other cases, the fair market value
      of a share of  Common  Stock as  determined  by an  independent  appraiser
      selected in good faith by the Purchasers and reasonably  acceptable to the
      Company.

                                      -4-
<PAGE>

            "Warrants" means collectively the Common Stock purchase warrants, in
      the form of  Exhibit C  delivered  to the  Purchasers  at the  Closing  in
      accordance  with Section 2.2 hereof,  which  Warrants shall be exercisable
      immediately and for a term of 5 years.

            "Warrant  Shares"  means the shares of Common  Stock  issuable  upon
      exercise of the Warrants.

                                   ARTICLE II

                                PURCHASE AND SALE

      2.1  Closing.  On the  Closing  Date,  upon the terms and  subject  to the
conditions set forth herein,  concurrent with the execution and delivery of this
Agreement by the parties hereto,  the Company agrees to sell, and each Purchaser
agrees to purchase in the aggregate, severally and not jointly, up to $1,500,000
principal amount of the Debentures.  Each Purchaser shall deliver to the Company
via wire  transfer or a certified  check  immediately  available  funds equal to
their Subscription  Amount and the Company shall deliver to each Purchaser their
respective  Debenture and Warrants as determined  pursuant to Section 2.2(a) and
the  other  items  set  forth in  Section  2.2  issuable  at the  Closing.  Upon
satisfaction of the conditions set forth in Section 2.2, the Closing shall occur
at the offices of the Escrow Agent or such other  location as the parties  shall
mutually agree.

      2.2  Conditions to Closing.  The Closing shall be subject to the following
conditions and deliveries being met on the Closing Date:

            (a) At or prior to the Closing,  unless  otherwise  indicated below,
      the Company  shall  deliver or cause to be  delivered  to the Escrow Agent
      with respect to each Purchaser the following:

                  (i)  a  Debenture  with  a  principal  amount  equal  to  such
            Purchaser's  Principal  Amount,  registered  in  the  name  of  such
            Purchaser;

                  (ii) a Warrant  registered  in the name of such  Purchaser  to
            purchase  up to a number of shares of Common  Stock  equal to 50% of
            such Purchaser's Subscription Amount divided by the Set Price on the
            date  hereof,  with an  exercise  price  equal to $0.25,  subject to
            adjustment therein;

                  (iii) the legal  opinion  of Company  Counsel,  in the form of
            Exhibit D attached hereto, addressed to the Purchasers;

                  (iv) the  Registration  Rights  Agreement duly executed by the
            Company in the form of Exhibit B attached hereto;

                  (v) the Escrow Agreement duly executed by the Company; and

                  (vi) this Agreement, duly executed by the Company.

                                      -5-
<PAGE>

            (b) At or prior to the  Closing,  each  Purchaser  shall  deliver or
      cause to be delivered to the Company the following:

                  (i) such Purchaser's Subscription Amount;

                  (ii) this Agreement, duly executed by such Purchaser;

                  (iii) the Escrow  Agreement  duly executed by such  Purchaser;
            and

                  (iv) the  Registration  Rights Agreement duly executed by such
            Purchaser.

            (c)  All   representations  and  warranties  of  the  other  parties
      contained  herein shall remain true and correct as of the Closing Date and
      all covenants of the other party shall have been performed if due prior to
      such date.

            (d) From the date hereof to the Closing Date,  trading in the Common
      Stock  shall not have been  suspended  by the  Commission  (except for any
      suspension of trading of limited duration agreed to by the Company,  which
      suspension  shall be terminated  prior to the  Closing),  and, at any time
      prior to the Closing Date, trading in securities  generally as reported by
      Bloomberg  Financial Markets shall not have been suspended or limited,  or
      minimum prices shall not have been  established on securities whose trades
      are  reported  by such  service,  or on the  Trading  Market,  nor shall a
      banking  moratorium  have been declared either by the United States or New
      York  State  authorities,  nor shall  there  have  occurred  any  material
      outbreak or escalation of hostilities  or other national or  international
      calamity  of such  magnitude  in its  effect on, or any  material  adverse
      change in, any  financial  market which,  in each case, in the  reasonable
      judgment of the  Purchasers,  makes it  impracticable  or  inadvisable  to
      purchase the Debentures at the Closing.

                                   ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

      3.1  Representations  and  Warranties of the Company.  Except as set forth
under the  corresponding  section of the disclosure  schedules  delivered to the
Purchasers  concurrently herewith (the "Disclosure  Schedules") which Disclosure
Schedules  shall  be  deemed  a  part  hereof,  the  Company  hereby  makes  the
representations and warranties set forth below to each Purchaser.

            (a) Subsidiaries. All of the direct and indirect subsidiaries of the
      Company are set forth on Schedule  3.1(a).  The Company owns,  directly or
      indirectly,  all of the capital  stock or other  equity  interests of each
      Subsidiary  free  and  clear  of  any  lien,  charge,  security  interest,
      encumbrance,  right of first refusal or other  restriction  (collectively,
      "Liens"),  and all the issued and  outstanding  shares of capital stock of
      each Subsidiary are validly issued and are fully paid,  non-assessable and
      free of preemptive and similar rights. If the Company has no subsidiaries,
      then references in the Transaction  Documents to the Subsidiaries shall be
      disregarded.

                                      -6-
<PAGE>

            (b)  Organization  and  Qualification.  Each of the  Company and the
      Subsidiaries  is an  entity  duly  incorporated  or  otherwise  organized,
      validly  existing and in good standing under the laws of the  jurisdiction
      of its  incorporation or organization (as applicable),  with the requisite
      power and authority to own and use its  properties and assets and to carry
      on its  business  as  currently  conducted.  Neither  the  Company nor any
      Subsidiary  is in violation  of any of the  provisions  of its  respective
      certificate or articles of incorporation,  bylaws or other  organizational
      or charter  documents.  Each of the Company and the  Subsidiaries  is duly
      qualified to do business and is in good standing as a foreign  corporation
      or other entity in each  jurisdiction  in which the nature of the business
      conducted  or  property  owned by it makes such  qualification  necessary,
      except where the failure to be so qualified  or in good  standing,  as the
      case may be, could not,  individually  or in the aggregate:  (i) adversely
      affect  the  legality,  validity  or  enforceability  of  any  Transaction
      Document, (ii) have or result in or be reasonably likely to have or result
      in a  material  adverse  effect  on the  results  of  operations,  assets,
      prospects,  business or condition  (financial or otherwise) of the Company
      and the  Subsidiaries,  taken as a whole,  or (iii)  adversely  impair the
      Company's ability to perform fully on a timely basis its obligations under
      any of the  Transaction  Documents (any of (i), (ii) or (iii), a "Material
      Adverse Effect").

            (c)  Authorization;  Enforcement.  The  Company  has  the  requisite
      corporate  power  and  authority  to  enter  into  and to  consummate  the
      transactions  contemplated  by  each  of  the  Transaction  Documents  and
      otherwise  to carry  out its  obligations  hereunder  or  thereunder.  The
      execution and delivery of each of the Transaction Documents by the Company
      and the  consummation  by it of the  transactions  contemplated  hereby or
      thereby have been duly  authorized by all necessary  action on the part of
      the  Company  and no further  consent or action is required by the Company
      other than Required Approvals.  Each of the Transaction Documents has been
      (or  upon  delivery  will be)  duly  executed  by the  Company  and,  when
      delivered in accordance  with the terms hereof,  will constitute the valid
      and binding obligation of the Company  enforceable  against the Company in
      accordance with its terms, subject to applicable  bankruptcy,  insolvency,
      fraudulent  conveyance,   reorganization,   moratorium  and  similar  laws
      affecting  creditors' rights and remedies generally and general principles
      of equity.  Neither the Company nor any  Subsidiary is in violation of any
      of  the   provisions  of  its   respective   certificate  or  articles  of
      incorporation, by-laws or other organizational or charter documents except
      where  such  violation  could  not,  individually  or  in  the  aggregate,
      constitute a Material Adverse Effect.

            (d) No Conflicts.  The  execution,  delivery and  performance of the
      Transaction  Documents by the Company and the  consummation by the Company
      of the transactions contemplated thereby do not and will not: (i) conflict
      with  or  violate  any  provision  of the  Company's  or any  Subsidiary's
      certificate or articles of incorporation,  bylaws or other  organizational
      or charter documents, or (ii) subject to obtaining the Required Approvals,
      conflict  with,  or  constitute a default (or an event that with notice or
      lapse of time or both would become a default) under, or give to others any
      rights of termination,  amendment,  acceleration or cancellation  (with or
      without notice, lapse of time or both) of, any agreement, credit facility,
      debt or other  instrument  (evidencing  a Company  or  Subsidiary  debt or
      otherwise) or other  understanding  to which the Company or any Subsidiary
      is a party or by  which  any  property  or  asset  of the  Company  or any
      Subsidiary is bound or affected,  or (iii)  result,  in a violation of any
      law,  rule,  regulation,  order,  judgment,  injunction,  decree  or other
      restriction of any court or governmental authority to which the Company or
      a Subsidiary is subject  (including  federal and state securities laws and
      regulations),  or by which  any  property  or asset  of the  Company  or a
      Subsidiary  is bound or  affected;  except in the case of each of  clauses
      (ii) and (iii), such as could not, individually or in the aggregate,  have
      or result in a Material Adverse Effect.

                                      -7-
<PAGE>

            (e)  Filings,  Consents and  Approvals.  Neither the Company nor any
      Subsidiary  is required to obtain any consent,  waiver,  authorization  or
      order of, give any notice to, or make any filing or registration with, any
      court or other federal,  state, local or other  governmental  authority or
      other Person in connection with the execution, delivery and performance by
      the  Company of the  Transaction  Documents,  other  than (i) the  filings
      required  under  Section 4.7,  (ii) the filing with the  Commission of the
      Registration  Statement,  (iii) the notice and/or  application(s)  to each
      applicable  Trading Market for the issuance and sale of the Debentures and
      Warrants and the listing of the Underlying  Shares for trading  thereon in
      the time and manner  required  thereby  and (iv) the filing of Form D with
      the  Commission  and  applicable  Blue  Sky  filings  (collectively,   the
      "Required Approvals").

            (f) Issuance of the  Securities.  The Securities are duly authorized
      and,  when  issued  and  paid  for  in  accordance   with  the  applicable
      Transaction  Documents,  will be duly and validly  issued,  fully paid and
      non-assessable, free and clear of all Liens. The Company has reserved from
      its duly  authorized  capital stock a number of shares of Common Stock for
      issuance of the Underlying  Shares at least equal to the Required  Minimum
      on the date  hereof.  The Company  has not,  and to the  knowledge  of the
      Company,  no  Affiliate  of the  Company  has  sold,  offered  for sale or
      solicited offers to buy or otherwise negotiated in respect of any security
      (as defined in Section 2 of the  Securities  Act) that would be integrated
      with the offer or sale of the  Securities  in a manner that would  require
      the registration under the Securities Act of the sale of the Securities to
      the Purchasers,  or that would be integrated with the offer or sale of the
      Securities  for  purposes  of the rules  and  regulations  of any  Trading
      Market.

            (g) Capitalization. The number of shares and type of all authorized,
      issued and  outstanding  capital  stock of the Company is set forth in the
      Disclosure  Schedules  attached  hereto.  No securities of the Company are
      entitled to preemptive or similar  rights,  and no Person has any right of
      first refusal,  preemptive right,  right of participation,  or any similar
      right to participate in the  transactions  contemplated by the Transaction
      Documents.  Except as a result of the purchase and sale of the Securities,
      there are no outstanding options, warrants, script rights to subscribe to,
      calls  or  commitments  of  any  character   whatsoever  relating  to,  or
      securities, rights or obligations convertible into or exchangeable for, or
      giving any Person any right to  subscribe  for or  acquire,  any shares of
      Common Stock, or contracts, commitments, understandings or arrangements by
      which  the  Company  or any  Subsidiary  is or may  become  bound to issue
      additional shares of Common Stock, or securities or rights  convertible or
      exchangeable  into shares of Common  Stock.  The  issuance and sale of the
      Securities  will not  obligate the Company to issue shares of Common Stock
      or other securities to any Person (other than the Purchasers) and will not
      result  in a right of any  holder of  Company  securities  to  adjust  the
      exercise,  conversion,  exchange or reset price under such securities. All
      of the  outstanding  shares of capital  stock of the  Company  are validly
      issued, fully paid and nonassessable,  have been issued in compliance with
      all federal and state securities laws, and none of such outstanding shares
      was issued in  violation  of any  preemptive  rights or similar  rights to
      subscribe for or purchase securities. No further approval or authorization
      of any  stockholder,  the Board of  Directors  of the Company or others is
      required for the  issuance and sale of the Shares.  Except as disclosed in
      the SEC Reports, there are no stockholders  agreements,  voting agreements
      or other similar agreements with respect to the Company's capital stock to
      which the Company is a party or, to the knowledge of the Company,  between
      or among any of the Company's stockholders.

                                      -8-
<PAGE>

            (h) SEC  Reports;  Financial  Statements.  The Company has filed all
      reports  required  to be filed by it under  the  Exchange  Act,  including
      pursuant to Section 13(a) or 15(d)  thereof,  for the two years  preceding
      the date hereof (or such shorter period as the Company was required by law
      to  file  such  material)  (the  foregoing  materials  being  collectively
      referred to herein as the "SEC Reports") on a timely basis or has received
      a valid  extension  of such  time of  filing  and has  filed  any such SEC
      Reports  prior to the  expiration of any such  extension.  The Company has
      identified  and made available to the Purchasers a copy of all SEC Reports
      filed within the 10 days preceding the date hereof. As of their respective
      dates,  the  SEC  Reports  complied  in all  material  respects  with  the
      requirements  of the Securities Act and the Exchange Act and the rules and
      regulations of the Commission promulgated thereunder,  and none of the SEC
      Reports, when filed,  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.  The financial
      statements  of the  Company  included  in the SEC  Reports  comply  in all
      material  respects with applicable  accounting  requirements and the rules
      and regulations of the Commission with respect thereto as in effect at the
      time of filing. Such financial statements have been prepared in accordance
      with  generally  accepted  accounting  principles  applied on a consistent
      basis  during the periods  involved  ("GAAP"),  except as may be otherwise
      specified in such financial  statements or the notes  thereto,  and fairly
      present in all material respects the financial position of the Company and
      its  consolidated  subsidiaries  as of and for the dates  thereof  and the
      results of operations and cash flows for the periods then ended,  subject,
      in the case of unaudited statements, to normal, immaterial, year-end audit
      adjustments.

            (i) Material Changes. Since the date of the latest audited financial
      statements  included  within  the  SEC  Reports,  except  as  specifically
      disclosed in the SEC Reports:  (i) there has been no event,  occurrence or
      development  that  has had or that  could  result  in a  Material  Adverse
      Effect,  (ii) the Company has not incurred any liabilities  (contingent or
      otherwise) other than (A) trade payables and accrued expenses  incurred in
      the  ordinary  course of business  consistent  with past  practice and (B)
      liabilities  not  required  to be  reflected  in the  Company's  financial
      statements  pursuant to GAAP or required to be  disclosed  in filings made
      with the  Commission,  (iii) the  Company  has not  altered  its method of
      accounting  or the  identity  of its  auditors,  (iv) the  Company has not
      declared or made any dividend or distribution of cash or other property to
      its stockholders or purchased, redeemed or made any agreements to purchase
      or redeem any shares of its  capital  stock,  and (v) the  Company has not
      issued any equity securities to any officer, director or Affiliate, except
      pursuant to existing Company stock option or similar plans.

                                      -9-
<PAGE>

            (j)  Litigation.  There  is no  action,  suit,  inquiry,  notice  of
      violation, proceeding or investigation pending or, to the knowledge of the
      Company,  threatened  against or affecting the Company,  any Subsidiary or
      any of their  respective  properties  before or by any court,  arbitrator,
      governmental or administrative  agency or regulatory  authority  (federal,
      state,  county, local or foreign)  (collectively,  an "Action") which: (i)
      adversely  affects or challenges the legality,  validity or enforceability
      of any of the  Transaction  Documents or the Securities or (ii) could,  if
      there were an unfavorable decision, individually or in the aggregate, have
      or reasonably be expected to result in a Material Adverse Effect.  Neither
      the Company nor any Subsidiary, nor any director or officer thereof, is or
      has been the subject of any Action  involving a claim of  violation  of or
      liability  under federal or state  securities laws or a claim of breach of
      fiduciary  duty.  The Company does not have pending  before the Commission
      any request for confidential treatment of information. There has not been,
      and to the knowledge of the Company, there is not pending or contemplated,
      any  investigation by the Commission  involving the Company or any current
      or former  director  or officer of the  Company.  The  Commission  has not
      issued any stop order or other order  suspending the  effectiveness of any
      registration  statement  filed by the Company or any Subsidiary  under the
      Exchange Act or the Securities Act.

            (k) Compliance.  Neither the Company nor any  Subsidiary:  (i) is in
      default  under or in violation of (and no event has occurred  that has not
      been waived that, with notice or lapse of time or both,  would result in a
      default by the Company or any  Subsidiary  under),  nor has the Company or
      any Subsidiary  received  notice of a claim that it is in default under or
      that it is in violation of, any indenture, loan or credit agreement or any
      other agreement or instrument to which it is a party or by which it or any
      of its  properties is bound  (whether or not such default or violation has
      been waived),  (ii) is in violation of any order of any court,  arbitrator
      or governmental body, or (iii) is or has been in violation of any statute,
      rule or regulation of any governmental  authority,  except in each case as
      could not, individually or in the aggregate,  have or result in a Material
      Adverse Effect.

            (l) Labor  Relations.  No material  labor dispute  exists or, to the
      knowledge of the Company, is imminent with respect to any of the employees
      of the Company.

            (m) Regulatory Permits. The Company and the Subsidiaries possess all
      certificates,   authorizations  and  permits  issued  by  the  appropriate
      federal,  state,  local or foreign  regulatory  authorities  necessary  to
      conduct  their  respective  businesses  as  described  in the SEC Reports,
      except where the failure to possess such permits  could not,  individually
      or in the  aggregate,  have or  reasonably  be  expected  to  result  in a
      Material Adverse Effect ("Material Permits"),  and neither the Company nor
      any  Subsidiary  has  received any notice of  proceedings  relating to the
      revocation or modification of any Material Permit.

                                      -10-
<PAGE>

            (n) Title to Assets.  The Company and the Subsidiaries have good and
      marketable  title in fee simple to all real property owned by them that is
      material to the business of the Company and the  Subsidiaries and good and
      marketable  title in all personal  property owned by them that is material
      to the business of the Company and the Subsidiaries, in each case free and
      clear of all Liens, except for Liens as do not materially affect the value
      of such  property and do not  materially  interfere  with the use made and
      proposed to be made of such property by the Company and the  Subsidiaries.
      Any real property and  facilities  held under lease by the Company and the
      Subsidiaries  are held under valid,  subsisting and enforceable  leases of
      which the Company and the Subsidiaries are in compliance.

            (o) Patents and Trademarks.  The Company and the Subsidiaries  have,
      or have  rights to use,  all  patents,  patent  applications,  trademarks,
      trademark applications,  service marks, trade names, copyrights,  licenses
      and other similar rights  necessary or material for use in connection with
      their respective  businesses as described in the SEC Reports and which the
      failure to so have could have a Material Adverse Effect (collectively, the
      "Intellectual  Property  Rights").  Neither the Company nor any Subsidiary
      has received a written notice that the  Intellectual  Property Rights used
      by the Company or any Subsidiary  violates or infringes upon the rights of
      any  Person.  To the  knowledge  of the  Company,  all  such  Intellectual
      Property Rights are  enforceable and there is no existing  infringement by
      another Person of any of the Intellectual Property Rights.

            (p)  Insurance.  The  Company  and the  Subsidiaries  are insured by
      insurers of recognized  financial  responsibility  against such losses and
      risks and in such amounts as are prudent and  customary in the  businesses
      in which the Company and the Subsidiaries  are engaged,  including but not
      limited to, directors and officer insurance which policy has been provided
      to  the  Purchasers  prior  to  the  Closing.  To the  best  of  Company's
      knowledge,   such  insurance  contracts  and  policies  are  accurate  and
      complete. Neither the Company nor any Subsidiary has any reason to believe
      it will not be able to renew its existing  insurance  coverage as and when
      such coverage  expires or to obtain similar coverage from similar insurers
      as may be  necessary  to  continue  its  business  without  a  significant
      increase in cost.

            (q) Transactions  With Affiliates and Employees.  Except as required
      to be set forth in the SEC  Reports,  none of the officers or directors of
      the Company and, to the knowledge of the Company, none of the employees of
      the Company is  presently a party to any  transaction  with the Company or
      any  Subsidiary  (other  than for  services  as  employees,  officers  and
      directors),   including  any  contract,  agreement  or  other  arrangement
      providing for the furnishing of services to or by, providing for rental of
      real or personal property to or from, or otherwise  requiring  payments to
      or from any officer, director or such employee or, to the knowledge of the
      Company, any entity in which any officer,  director,  or any such employee
      has a substantial interest or is an officer, director, trustee or partner.

                                      -11-
<PAGE>

            (r) Sarbanes-Oxley;  Internal Accounting Controls. The Company is in
      material  compliance with all provisions of the Sarbanes-Oxley Act of 2002
      which are  applicable  to it as of the Closing  Date.  The Company and the
      Subsidiaries  maintain a system of internal accounting controls sufficient
      to provide  reasonable  assurance  that (i)  transactions  are executed in
      accordance  with  management's  general or specific  authorizations,  (ii)
      transactions are recorded as necessary to permit  preparation of financial
      statements in conformity  with GAAP and to maintain asset  accountability,
      (iii) access to assets is permitted only in accordance  with  management's
      general or specific  authorization,  and (iv) the recorded  accountability
      for assets is compared with the existing  assets at  reasonable  intervals
      and  appropriate  action is taken  with  respect to any  differences.  The
      Company has established  disclosure controls and procedures (as defined in
      Exchange Act Rules  13a-15(e) and  15d-15(e)) for the Company and designed
      such   disclosure   controls  and   procedures  to  ensure  that  material
      information relating to the Company,  including its subsidiaries,  is made
      known  to  the  certifying  officers  by  others  within  those  entities,
      particularly  during the period in which the Company's most recently filed
      periodic  report  under  the  Exchange  Act,  as the case may be, is being
      prepared.   The  Company's   certifying   officers   have   evaluated  the
      effectiveness  of the  Company's  controls and  procedures  as of the date
      prior to the filing date of the most recently filed periodic  report under
      the Exchange Act (such date, the "Evaluation Date"). The Company presented
      in its most  recently  filed  periodic  report  under the Exchange Act the
      conclusions of the  certifying  officers  about the  effectiveness  of the
      disclosure  controls and procedures  based on their  evaluations as of the
      Evaluation Date. Since the Evaluation Date, there have been no significant
      changes in the  Company's  internal  controls  (as such term is defined in
      Item 307(b) of Regulation S-K under the Exchange Act) or, to the Company's
      knowledge,  in other factors that could significantly affect the Company's
      internal controls.

            (s)  Solvency/Indebtedness.  Based on the financial condition of the
      Company  as of the  Closing  Date:  (i) the  fair  saleable  value  of the
      Company's assets exceeds the amount that will be required to be paid on or
      in  respect  of  the  Company's   existing  debts  and  other  liabilities
      (including  known  contingent   liabilities)  as  they  mature;  (ii)  the
      Company's assets do not constitute  unreasonably small capital to carry on
      its business for the current  fiscal year as now conducted and as proposed
      to be  conducted  including  its capital  needs  taking  into  account the
      particular capital  requirements of the business conducted by the Company,
      and projected capital requirements and capital  availability  thereof; and
      (iii) the current cash flow of the Company, together with the proceeds the
      Company  would  receive,  were it to  liquidate  all of its assets,  after
      taking into account all anticipated  uses of the cash, would be sufficient
      to pay all  amounts  on or in respect  of its debt when such  amounts  are
      required to be paid. The Company does not intend to incur debts beyond its
      ability to pay such debts as they mature  (taking  into account the timing
      and  amounts of cash to be  payable  on or in  respect  of its debt).  The
      Company has no  knowledge of any facts or  circumstances  which lead it to
      believe  that it will file for  reorganization  or  liquidation  under the
      bankruptcy or reorganization laws of any jurisdiction within one year from
      the Closing  Date.  The SEC Reports set forth as of the dates  thereof all
      outstanding  secured  and  unsecured  Indebtedness  of the  Company or any
      Subsidiary,  or for which the Company or any Subsidiary  has  commitments.
      For the  purposes  of this  Agreement,  "Indebtedness"  shall mean (a) any
      liabilities for borrowed money or amounts owed in excess of $50,000 (other
      than trade accounts  payable incurred in the ordinary course of business),
      (b) all guaranties, endorsements and other contingent obligations, whether
      or not the same are or should be reflected in the Company's  balance sheet
      or the notes  thereto,  except  guaranties  by  endorsement  of negotiable
      instruments  for deposit or collection in the ordinary course of business,
      and (c) the present  value of any lease  payments in excess of $50,000 due
      under leases required to be capitalized in accordance  with GAAP.  Neither
      the  Company  nor  any  Subsidiary  is in  default  with  respect  to  any
      Indebtedness.

                                      -12-
<PAGE>

            (t) Certain Fees. No brokerage or finder's fees or  commissions  are
      or will be payable  by the  Company to any  broker,  financial  advisor or
      consultant,  finder,  placement agent,  investment  banker,  bank or other
      Person with respect to the  transactions  contemplated  by this Agreement,
      and the Company has not taken any action that would cause any Purchaser to
      be liable for any such fees or  commissions.  The Company  agrees that the
      Purchasers  shall  have no  obligation  with  respect  to any fees or with
      respect to any  claims  made by or on behalf of any Person for fees of the
      type  contemplated by this Section with the  transactions  contemplated by
      this Agreement.

            (u) Private Placement.  Assuming the accuracy of the representations
      and  warranties of the Purchasers  set forth in Sections  3.2(b)-(f),  the
      offer,   issuance  and  sale  of  the  Securities  to  the  Purchasers  as
      contemplated  hereby are exempt from the registration  requirements of the
      Securities Act. The issuance and sale of the Securities hereunder does not
      contravene the rules and regulations of the Trading Market.

            (v) Listing and Maintenance Requirements. The Company's Common Stock
      is  registered  pursuant to Section  12(g) of the  Exchange  Act,  and the
      Company  has taken no action  designed  to, or which to its  knowledge  is
      likely to have the effect of,  terminating the  registration of the Common
      Stock under the Exchange Act nor has the Company received any notification
      that the Commission is contemplating  terminating such  registration.  The
      Company  has not, in the 12 months  preceding  the date  hereof,  received
      notice  from any Trading  Market on which the Common  Stock is or has been
      listed or quoted to the effect that the Company is not in compliance  with
      the  listing or  maintenance  requirements  of such  Trading  Market.  The
      Company  is,  and  has no  reason  to  believe  that  it  will  not in the
      foreseeable future continue to be, in compliance with all such listing and
      maintenance requirements.

            (w)  Registration  Rights.  The Company has not granted or agreed to
      grant  to any  Person  any  rights  (including  "piggy-back"  registration
      rights)  to  have  any  securities  of the  Company  registered  with  the
      Commission  or  any  other  governmental  authority  that  have  not  been
      satisfied.

                                      -13-
<PAGE>

            (x) Application of Takeover  Protections.  The Company and its Board
      of Directors have taken all necessary  action,  if any, in order to render
      inapplicable any control share acquisition,  business combination,  poison
      pill  (including  any  distribution  under a  rights  agreement)  or other
      similar  anti-takeover   provision  under  the  Company's  Certificate  of
      Incorporation  (or similar charter  documents) or the laws of its state of
      incorporation  that is or could become  applicable to the  Purchasers as a
      result of the Purchasers and the Company  fulfilling their  obligations or
      exercising their rights under the Transaction Documents, including without
      limitation as a result of the Company's issuance of the Securities and the
      Purchasers' ownership of the Securities.

            (y)  Seniority.  As of the  Closing  Date,  no  indebtedness  of the
      Company is senior to the  Debentures  in right of  payment,  whether  with
      respect to interest or upon  liquidation  or  dissolution,  or  otherwise,
      other than  indebtedness  secured by  purchase  money  security  interests
      (which is senior only as to underlying assets covered thereby) and capital
      lease  obligations  (which  is  senior  only  as to the  property  covered
      thereby).

            (z) Disclosure.  The Company  confirms that neither it nor any other
      Person  acting on its behalf has provided any of the  Purchasers  or their
      agents  or  counsel  with  any  information   that  constitutes  or  might
      constitute material,  nonpublic  information.  The Company understands and
      confirms that the Purchasers will rely on the foregoing representations in
      effecting  transactions  in  securities  of the  Company.  All  disclosure
      provided to the  Purchasers  regarding  the Company,  its business and the
      transactions   contemplated  hereby,   including  the  Schedules  to  this
      Agreement,  furnished  by or on behalf of the Company  with respect to the
      representations  and  warranties  made  herein are true and  correct  with
      respect to such  representations  and  warranties  and do not  contain any
      untrue  statement of a material  fact or omit to state any  material  fact
      necessary in order to make the  statements  made therein,  in light of the
      circumstances  under  which they were made,  not  misleading.  The Company
      acknowledges   and  agrees  that  no  Purchaser  makes  or  has  made  any
      representations   or   warranties   with   respect  to  the   transactions
      contemplated hereby other than those specifically set forth in Section 3.2
      hereof.

            (aa) Tax Status.  The Company and each of its  Subsidiaries has made
      or filed all federal,  state and foreign income and all other tax returns,
      reports  and  declarations  required  by any  jurisdiction  to which it is
      subject  (unless  and only to the extent  that the Company and each of its
      Subsidiaries has set aside on its books provisions reasonably adequate for
      the payment of all unpaid and unreported taxes) and has paid all taxes and
      other  governmental  assessments  and charges that are material in amount,
      shown or determined to be due on such returns,  reports and  declarations,
      except those being  contested in good faith and has set aside on its books
      provisions  reasonably  adequate  for the payment of all taxes for periods
      subsequent to the periods to which such returns,  reports or  declarations
      apply.  There are no unpaid taxes in any material amount claimed to be due
      by the taxing  authority  of any  jurisdiction,  and the  officers  of the
      Company know of no basis for any such claim.  The Company has not executed
      a waiver  with  respect to the  statute  of  limitations  relating  to the
      assessment  or collection  of any foreign,  federal,  statue or local tax.
      None of the Company's tax returns is presently being audited by any taxing
      authority.

                                      -14-
<PAGE>

            (bb) Acknowledgment  Regarding  Purchasers'  Purchase of Securities.
      The Company  acknowledges and agrees that the Purchasers are acting solely
      in the capacity of arm's length  purchasers with respect to this Agreement
      and the transactions contemplated hereby. The Company further acknowledges
      that no  Purchaser  is acting as a financial  advisor or  fiduciary of the
      Company (or in any similar  capacity)  with respect to this  Agreement and
      the  transactions  contemplated  hereby  and  any  statement  made  by any
      Purchaser  or  any  of  their  respective  representatives  or  agents  in
      connection with this Agreement and the transactions contemplated hereby is
      not advice or a recommendation and is merely incidental to the Purchasers'
      purchase  of the  Securities.  The  Company  further  represents  to  each
      Purchaser  that the  Company's  decision to enter into this  Agreement has
      been based  solely on the  independent  evaluation  of the Company and its
      representatives.

            (cc) No  General  Solicitation  or  Advertising  in  Regard  to this
      Transaction. Neither the Company nor, to the knowledge of the Company, any
      of its directors or officers (i) has conducted or will conduct any general
      solicitation  (as that  term is used in Rule  502(c) of  Regulation  D) or
      general  advertising  with  respect to the sale of the  Debentures  or the
      Warrants,  or (ii) made any offers or sales of any  security or  solicited
      any offers to buy any security under any circumstances  that would require
      registration  of the  Debentures,  the  Underlying  Shares or the Warrants
      under the Securities Act or made any "directed selling efforts" as defined
      in Rule 902 of Regulation S.

            (dd) No  Disagreements  with  Accountants and Lawyers.  There are no
      disagreements of any kind presently existing, or reasonably anticipated by
      the Company to arise,  between  the  accountants  and lawyers  formerly or
      presently  employed by the Company and the Company is current with respect
      to any fees owed to its accountants and lawyers.

            (ee) Intentionally Omitted.

            (ff) No  Integrated  Offering.  Neither the Company,  nor any of its
      Affiliates,  nor any Person acting on its or their behalf has, directly or
      indirectly,  made any offers or sales of any  security  or  solicited  any
      offers to buy any  security,  under  circumstances  that would  cause this
      offering of the  Securities to be integrated  with prior  offerings by the
      Company for  purposes  of the  Securities  Act or which could  violate any
      applicable shareholder approval provisions, including, without limitation,
      under the rules and regulations of the Trading Market.

            (gg) Foreign  Corrupt  Practices.  Neither the  Company,  nor to the
      knowledge  of the Company,  any agent or other person  acting on behalf of
      the Company,  has (i) directly or  indirectly,  used any corrupt funds for
      unlawful  contributions,  gifts,  entertainment or other unlawful expenses
      related to foreign or domestic political activity,  (ii) made any unlawful
      payment to foreign or domestic government officials or employees or to any
      foreign or domestic  political  parties or campaigns from corporate funds,
      (iii) failed to disclose  fully any  contribution  made by the Company (or
      made by any  person  acting on its  behalf of which the  Company is aware)
      which is in violation of law, or (iv) violated in any material respect any
      provision of the Foreign Corrupt Practices Act of 1977, as amended.

                                      -15-
<PAGE>

      3.2  Representations  and  Warranties of the  Purchasers.  Each  Purchaser
hereby,  for itself and for no other  Purchaser,  represents and warrants to the
Company as follows:

            (a) Organization;  Authority. If the Purchaser is not an individual,
      such Purchaser is an entity duly organized,  validly  existing and in good
      standing under the laws of the jurisdiction of its  organization  with the
      requisite  corporate or partnership  power and authority to enter into and
      to consummate the transactions  contemplated by the Transaction  Documents
      and otherwise to carry out its obligations thereunder. If the Purchaser is
      not an  individual,  the  purchase  by such  Purchaser  of the  Securities
      hereunder has been duly authorized by all necessary  action on the part of
      such  Purchaser.  Each  of this  Agreement  and  the  Registration  Rights
      Agreement has been duly executed by such Purchaser if the Purchaser is not
      an individual, and when delivered by such Purchaser in accordance with the
      terms hereof,  will constitute the valid and legally binding obligation of
      such Purchaser, enforceable against it in accordance with its terms except
      (i) as  limited  by  applicable  bankruptcy,  insolvency,  reorganization,
      moratorium and other laws of general application  affecting enforcement of
      creditors'  rights  generally  and (ii) as limited by laws relating to the
      availability of specific performance, injunctive relief or other equitable
      remedies.

            (b) Investment Intent. Such Purchaser is acquiring the Securities as
      principal  for its own account and not with a view to or for  distributing
      or reselling  such  Securities  or any part  thereof,  without  prejudice,
      however,  to such  Purchaser's  right,  subject to the  provisions of this
      Agreement, at all times to sell or otherwise dispose of all or any part of
      such Securities pursuant to an effective  registration statement under the
      Securities  Act or  under  an  exemption  from  such  registration  and in
      compliance  with applicable  federal and state  securities  laws.  Nothing
      contained  herein  shall be deemed a  representation  or  warranty by such
      Purchaser  to hold  Securities  for any  period  of  time  or  limit  such
      Purchaser's  right to sell the  Securities  pursuant  to the  Registration
      Statement or otherwise in  compliance  with  applicable  federal and state
      securities  laws. Such Purchaser is acquiring the Securities  hereunder in
      the ordinary  course of its  business.  Such  Purchaser  does not have any
      agreement or  understanding,  directly or  indirectly,  with any Person to
      distribute any of the Securities.

            (c)  Purchaser  Status.  At the time such  Purchaser was offered the
      Securities,  it was,  and at the date  hereof  it is,  and on each date on
      which it exercises any Warrants or converts any  Debentures it will be, an
      "accredited  investor" as defined in Rule 501(a) under the Securities Act.
      If the Purchaser is not an individual,  such Purchaser has not been formed
      solely for the purpose of acquiring the Securities.  Such Purchaser is not
      a registered broker-dealer under Section 15 of the Exchange Act.

            (d) Experience of such Purchaser.  Such  Purchaser,  either alone or
      together with its representatives,  has such knowledge, sophistication and
      experience  in  business  and  financial  matters  so as to be  capable of
      evaluating  the  merits  and risks of the  prospective  investment  in the
      Securities,  and has so evaluated the merits and risks of such investment.
      Such  Purchaser is able to bear the economic  risk of an investment in the
      Securities  and, at the present time, is able to afford a complete loss of
      such investment.

                                      -16-
<PAGE>

            (e) General  Solicitation.  Such  Purchaser  is not  purchasing  the
      Securities  as a result  of any  advertisement,  article,  notice or other
      communication   regarding  the  Securities  published  in  any  newspaper,
      magazine  or  similar  media  or  broadcast  over  television  or radio or
      presented  at any  seminar or any other  general  solicitation  or general
      advertisement.

            The Company  acknowledges  and agrees that each  Purchaser  does not
      make or has not made any representations or warranties with respect to the
      transactions  contemplated  hereby other than those specifically set forth
      in this Section 3.2.

                                   ARTICLE IV

                         OTHER AGREEMENTS OF THE PARTIES

      4.1   Transfer Restrictions.

            (a) The Securities may only be disposed of in compliance  with state
      and federal securities laws. In connection with any transfer of Securities
      other than pursuant to an effective registration statement or Rule 144, to
      the Company or to an Affiliate of a Purchaser, the Company may require the
      transferor  thereof  to  provide  to the  Company  an  opinion  of counsel
      selected by the transferor and reasonably  acceptable to the Company,  the
      form and substance of which opinion  shall be reasonably  satisfactory  to
      the  Company,   to  the  effect  that  such   transfer  does  not  require
      registration of such transferred Securities under the Securities Act. As a
      condition of transfer,  any such  transferee  shall agree in writing to be
      bound by the  terms of this  Agreement  and  shall  have the  rights  of a
      Purchaser under this Agreement and the Registration Rights Agreement.

            (b)  Each  Purchaser,  severally  and not  jointly  with  the  other
      Purchasers,  agrees  to the  imprinting,  so long as is  required  by this
      Section  4.1(b),  of the following  legend on any  certificate  evidencing
      Securities:

      [NEITHER] THESE SECURITIES [NOR THE SECURITIES INTO WHICH THESE SECURITIES
      ARE [EXERCISABLE]  [CONVERTIBLE]] HAVE BEEN REGISTERED WITH THE SECURITIES
      AND  EXCHANGE  COMMISSION  OR THE  SECURITIES  COMMISSION  OF ANY STATE IN
      RELIANCE UPON AN EXEMPTION FROM  REGISTRATION  UNDER THE SECURITIES ACT OF
      1933, AS AMENDED (THE  "SECURITIES  ACT"),  AND,  ACCORDINGLY,  MAY NOT BE
      OFFERED OR SOLD EXCEPT  PURSUANT TO AN  EFFECTIVE  REGISTRATION  STATEMENT
      UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN
      A  TRANSACTION  NOT  SUBJECT  TO,  THE  REGISTRATION  REQUIREMENTS  OF THE
      SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE  STATE SECURITIES LAWS AS
      EVIDENCED  BY A LEGAL  OPINION  OF COUNSEL  TO THE  TRANSFEROR  REASONABLY
      ACCEPTABLE TO THE COMPANY TO SUCH EFFECT,  THE SUBSTANCE OF WHICH SHALL BE
      REASONABLY ACCEPTABLE TO THE COMPANY.  THESE SECURITIES AND THE SECURITIES
      ISSUABLE  UPON EXERCISE OF THESE  SECURITIES  MAY BE PLEDGED IN CONNECTION
      WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

                                      -17-
<PAGE>

            The Company  acknowledges  and agrees that a Purchaser may from time
      to time  pledge  pursuant  to a bona  fide  margin  agreement  or  grant a
      security  interest  in  some  or  all  of the  Securities  to a  financial
      institution  that is an  "accredited  investor"  as defined in Rule 501(a)
      under  the  Securities  Act  and,  if  required  under  the  terms of such
      arrangement,  such Purchaser may transfer pledged or secured Securities to
      the  pledgees or secured  parties.  Such  pledge or transfer  would not be
      subject to approval of the Company and no legal  opinion of legal  counsel
      of the pledgee,  secured  party or pledgor shall be required in connection
      therewith.  Further,  no notice shall be required of such  pledge.  At the
      appropriate Purchaser's expense, the Company will execute and deliver such
      reasonable  documentation  as a pledgee or secured party of Securities may
      reasonably  request  in  connection  with  a  pledge  or  transfer  of the
      Securities,   including  the   preparation  and  filing  of  any  required
      prospectus  supplement under Rule 424(b)(3) of the Securities Act or other
      applicable provision of the Securities Act to appropriately amend the list
      of Selling Stockholders thereunder.

            (c) Certificates  evidencing the Underlying Shares shall not contain
      any legend (including the legend set forth in Section 4.1(b) hereof):  (i)
      while a  registration  statement  (including the  Registration  Statement)
      covering  the resale of such  security is effective  under the  Securities
      Act, or (ii) following any sale of such Underlying Shares pursuant to Rule
      144, or (iii) if such  Underlying  Shares are eligible for sale under Rule
      144(k),   or  (iv)  if  such  legend  is  not  required  under  applicable
      requirements of the Securities Act (including judicial interpretations and
      pronouncements issued by the staff of the Commission);  provided, however,
      in connection with the issuance of the Underlying Shares,  each Purchaser,
      severally  and not jointly  with the other  Purchasers,  hereby  agrees to
      adhere  to and abide by all  prospectus  delivery  requirements  under the
      Securities Act and rules and  regulations of the  Commission.  The Company
      shall cause its counsel to issue a legal opinion to the Company's transfer
      agent  promptly  after the  Effective  Date if required  by the  Company's
      transfer  agent to effect the removal of the legend  hereunder.  If all or
      any  portion of a  Debenture  or Warrant is  converted  or  exercised  (as
      applicable) at a time when there is an effective registration statement to
      cover the resale of the Underlying  Shares,  or if such Underlying  Shares
      may be sold under Rule 144(k) or if such legend is not otherwise  required
      under  applicable  requirements of the Securities Act (including  judicial
      interpretations  thereof) then such Underlying Shares shall be issued free
      of all legends. The Company agrees that following the Effective Date or at
      such time as such legend is no longer  required under this Section 4.1(c),
      it will,  no later than three  Trading  Days  following  the delivery by a
      Purchaser to the Company or the Company's  transfer agent of a certificate
      representing  Underlying Shares, as applicable,  issued with a restrictive
      legend (such third  Trading Day, the "Legend  Removal  Date"),  deliver or
      cause to be delivered to such  Purchaser a certificate  representing  such
      shares that is free from all  restrictive  and other legends.  The Company
      may not make any  notation  on its  records  or give  instructions  to any
      transfer  agent of the Company that enlarge the  restrictions  on transfer
      set forth in this Section.

                                      -18-
<PAGE>

            (d) In addition to such Purchaser's  other available  remedies,  the
      Company shall pay to a Purchaser,  in cash, as partial  liquidated damages
      and not as a penalty,  for each $5,000 of Underlying  Shares (based on the
      VWAP of the Common Stock on the date such  Securities are submitted to the
      Company's  transfer agent) delivered for removal of the restrictive legend
      and subject to this Section  4.1(c),  $50 per Trading Day  (increasing  to
      $100 per  Trading  Day 3 Trading  Days  after such  damages  have begun to
      accrue)  for each  Trading  Day after the Legend  Removal  Date until such
      certificate is delivered without a legend. Nothing herein shall limit such
      Purchaser's  right to pursue actual  damages for the Company's  failure to
      deliver  certificates  representing  any  Securities  as  required  by the
      Transaction  Documents,  and such Purchaser shall have the right to pursue
      all  remedies  available  to it at law  or in  equity  including,  without
      limitation, a decree of specific performance and/or injunctive relief.

            (e)  So  long  as at  least  20%  of  the  principal  amount  of the
      Debentures,  in the aggregate, are then outstanding,  the Company will not
      undertake  a forward or reverse  stock  split or  reclassification  of the
      Common Stock without the prior written  consent of each Purchaser  holding
      Debentures at such time.

      4.2 Acknowledgment of Dilution. The Company acknowledges that the issuance
of the  Securities  may result in dilution of the  outstanding  shares of Common
Stock,  which dilution may be substantial under certain market  conditions.  The
Company  further   acknowledges  that  its  obligations  under  the  Transaction
Documents,  including without  limitation its obligation to issue the Underlying
Shares pursuant to the Transaction Documents, are unconditional and absolute and
not  subject  to any  right  of  set  off,  counterclaim,  delay  or  reduction,
regardless  of the effect of any such dilution or any claim the Company may have
against any Purchaser and  regardless of the dilutive  effect that such issuance
may have on the ownership of the other stockholders of the Company.

      4.3 Furnishing of Information.  As long as any Purchaser owns  Securities,
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 the Exchange Act. Upon the request
of any  Purchaser,  the  Company  shall  deliver  to such  Purchaser  a  written
certification  of a duly  authorized  officer as to whether it has complied with
the preceding sentence. As long as any Purchaser owns Securities, if the Company
is not  required  to file  reports  pursuant to such laws,  it will  prepare and
furnish to the  Purchasers and make publicly  available in accordance  with Rule
144(c) such information as is required for the Purchasers to sell the Securities
under Rule 144.  The Company  further  covenants  that it will take such further
action as any holder of Securities  may  reasonably  request,  all to the extent
required from time to time to enable such Person to sell such Securities without
registration  under the  Securities  Act within the limitation of the exemptions
provided by Rule 144.

                                      -19-
<PAGE>

      4.4 Integration.  The Company shall not, and shall use its best efforts to
ensure that no Affiliate of the Company shall,  sell,  offer for sale or solicit
offers to buy or  otherwise  negotiate in respect of any security (as defined in
Section 2 of the Securities Act) that would be integrated with the offer or sale
of the  Securities  in a manner that would  require the  registration  under the
Securities Act of the sale of the Securities to the Purchasers, or that would be
integrated  with the offer or sale of the  Securities  for purposes of the rules
and regulations of any Trading Market.

      4.5 Reservation and Listing of Securities.

            (a) The Company  shall  maintain a reserve from its duly  authorized
      shares of Common Stock for issuance pursuant to the Transaction  Documents
      in such amount as may be required to fulfill its obligations in full under
      the Transaction Documents.

            (b) On or before  September  15, 2004,  the Company  shall have used
      best  efforts  to  amend  the   Company's   certificate   of  articles  of
      incorporation  to increase the number of authorized but unissued shares of
      Common Stock to at least the Required  Minimum as of the Closing date. If,
      on any date  after  September  15,  2004,  the  number of  authorized  but
      unissued (and  otherwise  unreserved)  shares of Common Stock is less than
      the  Required  Minimum on such date,  then the Board of  Directors  of the
      Company shall use commercially  reasonable  efforts to amend the Company's
      certificate  or  articles  of  incorporation  to  increase  the  number of
      authorized  but  unissued  shares of Common Stock to at least the Required
      Minimum at such time,  as soon as possible and in any event not later than
      the 75th day after such date.

            (c) The Company  shall,  if  applicable:  (i) in the time and manner
      required by the Trading Market,  prepare and file with such Trading Market
      an additional  shares listing  application  covering a number of shares of
      Common  Stock at least equal to the  Required  Minimum on the date of such
      application,  (ii) take all steps necessary to cause such shares of Common
      Stock to be approved for listing on the Trading Market as soon as possible
      thereafter,  (iii) provide to the Purchasers evidence of such listing, and
      (iv)  maintain the listing of such Common Stock on any date at least equal
      to the  Required  Minimum on such date on such  Trading  Market or another
      Trading Market.

      4.6  Conversion  and Exercise  Procedures.  The form of Notice of Exercise
included in the  Warrants and the form of Notice of  Conversion  included in the
Debentures set forth the totality of the  procedures  required of the Purchasers
in order to exercise the Warrants or convert the Debentures. No additional legal
opinion or other information or instructions shall be required of the Purchasers
to exercise their Warrants or convert their Debentures.  The Company shall honor
exercises of the Warrants and  conversions  of the  Debentures and shall deliver
Underlying Shares in accordance with the terms,  conditions and time periods set
forth in the Transaction Documents.

                                      -20-
<PAGE>

      4.7 Securities Laws Disclosure; Publicity. The Company shall, by 8:30 a.m.
Eastern time on the Trading Day  following the date of this  Agreement,  issue a
press release or file a Current Report on Form 8-K reasonably acceptable to each
Purchaser disclosing all material terms of the transactions contemplated hereby.
The  Company and the  Purchasers  shall  consult  with each other in issuing any
press releases with respect to the transactions  contemplated hereby and neither
the Company nor any  Purchaser  shall issue any such press  release or otherwise
make any such public  statement  without the prior consent of the Company,  with
respect to any press release of any Purchaser, with respect to any press release
of the Company, which consent shall not unreasonably be withheld, except if such
disclosure is required by law, in which case the disclosing party shall promptly
provide  the  other  party  with  prior  notice  of  such  public  statement  or
communication.  Notwithstanding  the foregoing,  other than in any  registration
statement  filed  pursuant  to the  Registration  Rights  Agreement  and filings
related  thereto,  the  Company  shall  not  publicly  disclose  the name of any
Purchaser,  or  include  the  name  of any  Purchaser  in any  filing  with  the
Commission or any regulatory agency or Trading Market, without the prior written
consent of such  Purchaser,  except to the extent such disclosure is required by
law or Trading Market regulations,  in which case the Company shall provide each
Purchaser with prior notice of such disclosure.

      4.8 Non-Public Information.  The Company covenants and agrees that neither
it nor any other Person  acting on its behalf will provide any  Purchaser or its
agents or counsel with any  information  that the Company  believes  constitutes
material non-public information,  unless prior thereto such Purchaser shall have
executed  a written  agreement  regarding  the  confidentiality  and use of such
information.  The Company  understands and confirms that each Purchaser shall be
relying on the foregoing representations in effecting transactions in securities
of the Company.

      4.9 Use of Proceeds.  The Company shall use the net proceeds from the sale
of the  Securities  hereunder  for  working  capital  purposes  and  not for the
satisfaction  of any portion of the Company's  debt (other than payment of trade
payables,  capital lease obligations and accrued expenses in the ordinary course
of the Company's business and prior practices),  to redeem any Company equity or
equity-equivalent securities or to settle any outstanding litigation.

      4.10  Reimbursement.  If any Purchaser becomes involved in any capacity in
any  Proceeding  by or against any Person who is a  stockholder  of the Company,
solely as a result of such Purchaser's  acquisition of the Securities under this
Agreement and without causation by any other activity, obligation,  condition or
liability  on the  part  of,  or  pertaining  to such  Purchaser  and not to the
purchase of Securities  pursuant to this  Agreement,  the Company will reimburse
such Purchaser,  to the extent such reimbursement is not provided for in Section
4.11,  for its reasonable  legal and other  expenses  (including the cost of any
investigation,  preparation  and travel in  connection  therewith)  incurred  in
connection  therewith,   as  such  expenses  are  incurred.   The  reimbursement
obligations (and limitations  thereon) of the Company under this paragraph shall
be in addition to any  liability  which the Company may  otherwise  have,  shall
extend upon the same terms and  conditions to any  Affiliates of the  Purchasers
who are  actually  named  in  such  action,  proceeding  or  investigation,  and
partners,  directors, agents, employees and controlling persons (if any), as the
case may be, of the Purchasers and any such Affiliate, and shall be binding upon
and  inure  to the  benefit  of any  successors,  assigns,  heirs  and  personal
representatives  of the Company,  the  Purchasers and any such Affiliate and any
such Person.  The Company also agrees that neither the  Purchasers  nor any such
Affiliates,  partners, directors, agents, employees or controlling persons shall
have any liability to the Company or any Person asserting claims on behalf of or
in right of the Company  solely as a result of acquiring  the  Securities  under
this  Agreement  except to the  extent any  covenant  or  warranty  owing to the
Company is breached.

                                      -21-
<PAGE>

      4.11  Indemnification.  The Company will indemnify and hold the Purchasers
and their  directors,  officers,  shareholders,  partners,  employees and agents
(each,  a  "Purchaser  Party")  harmless  from any and all losses,  liabilities,
obligations,  claims, contingencies,  damages, costs and expenses, including all
judgments,  amounts paid in settlements,  court costs and reasonable  attorneys'
fees and costs of  investigation  that any such  Purchaser  Party may  suffer or
incur as a result  of or  relating  to:  (a) any  misrepresentation,  breach  or
inaccuracy, or any allegation by a third party that, if true, would constitute a
breach or inaccuracy,  of any of the representations,  warranties,  covenants or
agreements  made by the Company in this  Agreement  or in the other  Transaction
Documents;  or (b) any cause of action,  suit or claim  brought or made  against
such  Purchaser  Party and arising  solely out of or solely  resulting  from the
execution,  delivery, performance or enforcement of this Agreement or any of the
other  Transaction  Documents  and  without  causation  by any  other  activity,
obligation,  condition or liability  pertaining to such Purchaser and not to the
transactions  contemplated  by this  Agreement.  The Company will reimburse such
Purchaser for its reasonable legal and other expenses (including the cost of any
investigation,  preparation  and travel in  connection  therewith)  incurred  in
connection therewith, as such expenses are incurred.

      4.12  Shareholders  Rights Plan. In the event that a  shareholders  rights
plan is adopted by the Company, no claim will be made or enforced by the Company
or any other Person that any Purchaser is an  "Acquiring  Person" under the plan
or in any way could be deemed to trigger the  provisions  of such plan by virtue
of receiving Securities under the Transaction Documents.

      4.13  Participation  in Future  Financing.  From the date hereof  until 12
months after the Effective Date, upon any financing by the Company or any of its
Subsidiaries  of  Common  Stock  or  Common  Stock  Equivalents  (a  "Subsequent
Financing"), each Purchaser shall have the right to participate in up to 100% of
such Subsequent  Financing.  At least 5 Trading Days prior to the closing of the
Subsequent  Financing,  the Company  shall  deliver to each  Purchaser a written
notice of its intention to effect a Subsequent Financing  ("Pre-Notice"),  which
Pre-Notice  shall ask such  Purchaser  if it wants to review the details of such
financing (such additional notice, a "Subsequent  Financing  Notice").  Upon the
request  of a  Purchaser,  and only  upon a  request  by such  Purchaser,  for a
Subsequent  Financing  Notice,  the Company shall promptly,  but no later than 1
Trading Day after such request,  deliver a Subsequent  Financing  Notice to such
Purchaser.  The Subsequent  Financing Notice shall describe in reasonable detail
the proposed terms of such Subsequent Financing, the amount of proceeds intended
to be raised  thereunder,  the Person  with whom such  Subsequent  Financing  is
proposed to be effected,  and attached to which shall be a term sheet or similar
document  relating  thereto.  If by 6:30 p.m.  (New  York City  time) on the 5th
Trading  Day  after  all  of  the  Purchasers   have  received  the  Pre-Notice,
notifications  of the  Purchasers of their  willingness  to  participate  in the
Subsequent  Financing  (or to cause  their  designees  to  provide)  is,  in the
aggregate,  less than the total  amount of the  Subsequent  Financing,  then the
Company may effect the  remaining  portion of such  Subsequent  Financing on the
terms and to the Persons set forth in the Subsequent  Financing  Notice.  If the
Company  receives no notice from a Purchaser  as of such 5th Trading  Day,  such
Purchaser shall be deemed to have notified the Company that it does not elect to
participate.  The Company must provide the Purchasers  with a second  Subsequent
Financing Notice,  and the Purchasers will again have the right of participation
set forth above in this Section 4.13, if the Subsequent Financing subject to the
initial   Subsequent   Financing  Notice  is  not  consummated  for  any  reason
substantially  on terms no more favorable to the Purchasers than those set forth
in such Subsequent Financing Notice within 60 Trading Days after the date of the
initial Subsequent Financing Notice. In the event the Company receives responses
to Subsequent  Financing  Notices from Purchasers  seeking to purchase more than
the aggregate amount of the Subsequent Financing, each such Purchaser shall have
the  right to  purchase  their  Pro  Rata  Portion  (as  defined  below)  of the
Subsequent  Financing.  "Pro Rata Portion" is the ratio of (x) the  Subscription
Amount  of  a  participating   Purchaser  and  (y)  the  sum  of  the  aggregate
Subscription  Amount  of  all  participating  Purchasers.   Notwithstanding  the
foregoing, this Section 4.13 shall not apply in respect of an Exempt Issuance.

                                      -22-
<PAGE>

      4.14 Prohibition on Subsequent  Financings.  From the date hereof until 90
days after the Effective  Date,  other than as  contemplated  by this Agreement,
neither the Company nor any  Subsidiary  shall issue or sell any Common Stock or
Common Stock Equivalents.  Notwithstanding  anything herein to the contrary, the
90 day period set forth in this Section 4.14 shall be extended for the number of
Trading  Days during  such  period in which (y)  trading in the Common  Stock is
suspended by any Trading  Market,  or (z)  following  the  Effective  Date,  the
Registration  Statement  is not  effective  or the  prospectus  included  in the
Registration  Statement may not be used by the  Purchasers for the resale of the
Underlying Shares. Notwithstanding anything to the contrary herein, this Section
4.14  shall  not  apply in  respect  of an  Exempt  Issuance.  Additionally,  in
additional to the limitations set forth herein,  from the date hereof until such
time  as no  Purchaser  holds  any of  the  Securities,  the  Company  shall  be
prohibited  from  effecting or enter into an agreement to effect any  Subsequent
Financing  involving a "Variable Rate Transaction" or an "MFN Transaction" (each
as defined below). The term "Variable Rate Transaction" shall mean a transaction
in which the Company issues or sells (i) any debt or equity  securities that are
convertible  into,  exchangeable  or  exercisable  for,  or include the right to
receive  additional shares of Common Stock either (A) at a conversion,  exercise
or  exchange  rate or other  price that is based  upon  and/or  varies  with the
trading prices of or quotations for the shares of Common Stock at any time after
the  initial  issuance  of  such  debt  or  equity  securities,  or  (B)  with a
conversion,  exercise or  exchange  price that is subject to being reset at some
future date after the initial  issuance of such debt or equity  security or upon
the occurrence of specified or contingent events directly or indirectly  related
to the  business  of the Company or the market for the Common  Stock.  An equity
line of credit agreement,  other than the HPC Equity Line, shall be deemed to be
a Variable  Rate  Transaction  for  purposes  of this  provision.  The term "MFN
Transaction"  shall mean a transaction  in which the Company issues or sells any
securities in a capital  raising  transaction or series of related  transactions
which  grants to an investor the right to receive  additional  shares based upon
future transactions of the Company on terms more favorable than those granted to
such investor in such offering.

      4.15 Equal Treatment of Purchasers.  No consideration  shall be offered or
paid to any  person  to amend or  consent  to a waiver  or  modification  of any
provision of any of the Transaction  Documents unless the same  consideration is
also offered to all of the parties to the Transaction  Documents.  Further,  the
Company shall not make any payment of principal or interest on the Debentures in
amounts  which  are   disproportionate  to  the  respective   principal  amounts
outstanding  on  the  Debentures  at  any  applicable  time.  For  clarification
purposes,  this provision constitutes a separate right granted to each Purchaser
by the Company and negotiated  separately by each Purchaser,  and is intended to
treat for the Company the Debenture  holders as a class and shall not in any way
be construed as the  Purchasers  acting in concert or as a group with respect to
the purchase, disposition or voting of Securities or otherwise.

                                      -23-
<PAGE>

      4.16 Reset of Warrants and  Debentures  on Account of an Event of Default.
Upon the  occurrence  of an Event of Default under the  Debenture,  the exercise
price of any warrants of the Company,  including the Warrants,  then held by the
Purchasers, and the Set Price of the Debentures shall automatically, without any
further action by the  Purchasers or the Company,  be reduced (and only reduced)
to equal $0.10,  subject to  adjustment  for reverse and forward  stock  splits,
stock dividends, stock combinations and other similar transactions of the Common
Stock that occur after the date of this Agreement. The Company shall notify each
Purchaser of any such adjustment within 10 Trading Days of any such occurrence.

                                    ARTICLE V

                                  MISCELLANEOUS

      5.1  Termination.  This Agreement may be terminated by any  Purchaser,  by
written notice to the other parties,  if the Closing has not been consummated on
or before July __, 2004; provided that no such termination will affect the right
of any party to sue for any breach by the other party (or parties).

      5.2 Fees and Expenses.  Except as expressly  set forth in the  Transaction
Documents  to the  contrary,  each party shall pay the fees and  expenses of its
advisers, counsel, accountants and other experts, if any, and all other expenses
incurred by such party  incident  to the  negotiation,  preparation,  execution,
delivery and performance of this  Agreement.  The Company shall pay all transfer
agent fees, stamp taxes and other taxes and duties levied in connection with the
issuance of any Securities.

      5.3  Entire  Agreement.  The  Transaction  Documents,  together  with  the
exhibits and schedules thereto,  contain the entire understanding of the parties
with respect to the subject matter hereof and supersede all prior agreements and
understandings, oral or written, with respect to such matters, which the parties
acknowledge have been merged into such documents, exhibits and schedules.

      5.4 Notices.  Any and all notices or other  communications  or  deliveries
required or permitted to be provided  hereunder shall be in writing and shall be
deemed given and effective on the earliest of (a) the date of  transmission,  if
such notice or  communication is delivered via facsimile at the facsimile number
specified on the  signature  page  attached  hereto prior to 5:30 p.m. (New York
City  time) on a Trading  Day and an  electronic  confirmation  of  delivery  is
received by the sender, (b) the next Trading Day after the date of transmission,
if such notice or  communication  is delivered  via  facsimile at the  facsimile
number  specified  in this  Section on a day that is not a Trading  Day or later
than 5:30 p.m.  (New York City time) on any Trading Day, (c) three  Trading Days
following the date of mailing, if sent by U.S. nationally  recognized  overnight
courier service,  or (d) upon actual receipt by the party to whom such notice is
required to be given.  The  addresses  for such notices and  communications  are
those set forth on the signature  pages hereof,  or such other address as may be
designated in writing hereafter, in the same manner, by such Person.

                                      -24-
<PAGE>

      5.5 Amendments;  Waivers.  No provision of this Agreement may be waived or
amended except in a written instrument  signed, in the case of an amendment,  by
the Company and each of the Purchasers or, in the case of a waiver, by the party
against whom enforcement of any such waiver is sought.  No waiver of any default
with respect to any provision,  condition or requirement of this Agreement shall
be deemed to be a continuing  waiver in the future or a waiver of any subsequent
default or a waiver of any other provision, condition or requirement hereof, nor
shall any delay or omission of either party to exercise  any right  hereunder in
any manner impair the exercise of any such right.

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

      5.7 Successors and Assigns. This Agreement shall be binding upon and inure
to the benefit of the parties and their  successors and permitted  assigns.  The
Company may not assign this  Agreement  or any rights or  obligations  hereunder
without the prior written  consent of the  Purchasers.  Any Purchaser may assign
its rights under this  Agreement and the  Registration  Rights  Agreement to any
Person to whom such Purchaser assigns or transfers any Securities.

      5.8 No  Third-Party  Beneficiaries.  This  Agreement  is intended  for the
benefit of the parties  hereto and their  respective  successors  and  permitted
assigns and is not for the benefit of, nor may any provision  hereof be enforced
by, any other Person, except as otherwise set forth in Section 4.11.

      5.9 Governing Law; Venue;  Waiver of Jury Trial. All questions  concerning
the construction,  validity,  enforcement and  interpretation of the Transaction
Documents shall be governed by and construed and enforced in accordance with the
internal  laws of the State of New York,  without  regard to the  principles  of
conflicts  of  law  thereof.  Each  party  agrees  that  all  legal  proceedings
concerning  the  interpretations,  enforcement  and defense of the  transactions
contemplated  by this  Agreement and any other  Transaction  Documents  (whether
brought  against  a  party  hereto  or  its  respective  affiliates,  directors,
officers,  shareholders,  employees or agents) shall be commenced exclusively in
the state and federal courts sitting in the City of New York.  Each party hereby
irrevocably  submits  to the  exclusive  jurisdiction  of the state and  federal
courts  sitting  in  the  City  of  New  York,  borough  of  Manhattan  for  the
adjudication  of any dispute  hereunder  or in  connection  herewith or with any
transaction  contemplated  hereby or discussed herein (including with respect to
the enforcement of any of the  Transaction  Documents),  and hereby  irrevocably
waives,  and agrees not to assert in any suit,  action or proceeding,  any claim
that it is not personally  subject to the  jurisdiction of any such court,  that
such suit,  action or  proceeding  is  improper or  inconvenient  venue for such
proceeding. Each party hereby irrevocably waives personal service of process and
consents  to process  being  served in any such suit,  action or  proceeding  by
mailing a copy thereof via  registered or certified  mail or overnight  delivery
(with  evidence of  delivery) to such party at the address in effect for notices
to it under this  Agreement and agrees that such service shall  constitute  good
and sufficient  service of process and notice thereof.  Nothing contained herein
shall be  deemed to limit in any way any right to serve  process  in any  manner
permitted  by law. The parties  hereby  waive all rights to a trial by jury.  If
either party shall commence an action or proceeding to enforce any provisions of
the  Transaction  Documents,  then  the  prevailing  party  in  such  action  or
proceeding  shall be reimbursed by the other party for its  attorneys'  fees and
other  costs and  expenses  incurred  with the  investigation,  preparation  and
prosecution of such action or proceeding.

                                      -25-
<PAGE>

      5.10 Survival.  The representations and warranties  contained herein shall
survive  the  Closing  and  the  delivery,  exercise  and/or  conversion  of the
Securities, as applicable for the applicable statue of limitations.

      5.11   Execution.   This   Agreement  may  be  executed  in  two  or  more
counterparts,  all of which when taken  together shall be considered one and the
same agreement and shall become effective when  counterparts have been signed by
each party and  delivered  to the other  party,  it being  understood  that both
parties need not sign the same  counterpart.  In the event that any signature is
delivered by facsimile  transmission,  such  signature  shall create a valid and
binding  obligation of the party executing (or on whose behalf such signature is
executed)  such  document  with the same force and  effect as if such  facsimile
signature page were an original thereof.

      5.12  Severability.  If any  provision  of  this  Agreement  is held to be
invalid or unenforceable in any respect,  the validity and enforceability of the
remaining  terms  and  provisions  of  this  Agreement  shall  not in any way be
affected or impaired  thereby and the parties will attempt to agree upon a valid
and enforceable provision that is a reasonable substitute therefor,  and upon so
agreeing, shall incorporate such substitute provision in this Agreement.

      5.13  Rescission and  Withdrawal  Right.  Notwithstanding  anything to the
contrary  contained in (and  without  limiting  any similar  provisions  of) the
Transaction  Documents,  whenever  any  Purchaser  exercises a right,  election,
demand or option  under a  Transaction  Document and the Company does not timely
perform its related  obligations within the periods therein provided,  then such
Purchaser may rescind or withdraw, in its sole discretion from time to time upon
written notice to the Company, any relevant notice,  demand or election in whole
or in part  without  prejudice  to its  future  actions  and  rights;  provided,
however,  in the case of a rescission of a conversion of a Debenture or exercise
of a Warrant,  the  Purchaser  shall be  required to return any shares of Common
Stock subject to any such rescinded conversion or exercise notice.

      5.14   Replacement  of  Securities.   If  any  certificate  or  instrument
evidencing any Securities is mutilated,  lost, stolen or destroyed,  the Company
shall  issue or cause to be issued in  exchange  and  substitution  for and upon
cancellation thereof, or in lieu of and substitution therefor, a new certificate
or instrument,  but only upon receipt of evidence reasonably satisfactory to the
Company  of such  loss,  theft  or  destruction  and  customary  and  reasonable
indemnity, if requested.

                                      -26-
<PAGE>

      5.15  Remedies.  In  addition to being  entitled  to  exercise  all rights
provided herein or granted by law,  including  recovery of damages,  each of the
Purchasers  and the Company will be entitled to specific  performance  under the
Transaction  Documents.  The  parties  agree that  monetary  damages  may not be
adequate  compensation  for  any  loss  incurred  by  reason  of any  breach  of
obligations  described in the  foregoing  sentence and hereby agrees to waive in
any action for specific  performance  of any such  obligation the defense that a
remedy at law would be adequate.

      5.16 Payment Set Aside.  To the extent that the Company makes a payment or
payments to any Purchaser  pursuant to any  Transaction  Document or a Purchaser
enforces or exercises its rights thereunder, and such payment or payments or the
proceeds of such  enforcement  or exercise or any part thereof are  subsequently
invalidated,  declared to be fraudulent or  preferential,  set aside,  recovered
from, disgorged by or are required to be refunded,  repaid or otherwise restored
to the  Company,  a  trustee,  receiver  or  any  other  person  under  any  law
(including, without limitation, any bankruptcy law, state or federal law, common
law or equitable  cause of action),  then to the extent of any such  restoration
the  obligation  or part thereof  originally  intended to be satisfied  shall be
revived and  continued  in full force and effect as if such payment had not been
made or such enforcement or setoff had not occurred.

      5.17 Usury. To the extent it may lawfully do so, the Company hereby agrees
not to insist upon or plead or in any manner  whatsoever  claim, and will resist
any and all efforts to be compelled  to take the benefit or advantage  of, usury
laws wherever enacted, now or at any time hereafter in force, in connection with
any claim, action or proceeding that may be brought by any Purchaser in order to
enforce any right or remedy under any Transaction Document.  Notwithstanding any
provision to the contrary contained in any Transaction Document, it is expressly
agreed  and  provided  that  the  total  liability  of  the  Company  under  the
Transaction  Documents  for payments in the nature of interest  shall not exceed
the maximum lawful rate authorized  under  applicable law (the "Maximum  Rate"),
and, without  limiting the foregoing,  in no event shall any rate of interest or
default  interest,  or both of them,  when aggregated with any other sums in the
nature  of  interest  that  the  Company  may  be  obligated  to pay  under  the
Transaction Documents exceed such Maximum Rate. It is agreed that if the maximum
contract  rate of  interest  allowed by law and  applicable  to the  Transaction
Documents is  increased  or  decreased  by statute or any official  governmental
action subsequent to the date hereof,  the new maximum contract rate of interest
allowed by law will be the Maximum Rate applicable to the Transaction  Documents
from the  effective  date  forward,  unless such  application  is  precluded  by
applicable law. If under any circumstances whatsoever, interest in excess of the
Maximum  Rate  is  paid  by  the  Company  to  any  Purchaser  with  respect  to
indebtedness  evidenced  by the  Transaction  Documents,  such  excess  shall be
applied  by  such  Purchaser  to  the  unpaid  principal  balance  of  any  such
indebtedness  or be refunded to the Company,  the manner of handling such excess
to be at such Purchaser's election.

                                      -27-
<PAGE>

      5.18  Independent  Nature  of  Purchasers'  Obligations  and  Rights.  The
obligations of each Purchaser under any Transaction Document are several and not
joint with the  obligations of any other  Purchaser,  and no Purchaser  shall be
responsible  in any way for the  performance  of the  obligations  of any  other
Purchaser under any Transaction  Document.  Nothing  contained  herein or in any
Transaction  Document,  and no action taken by any Purchaser  pursuant  thereto,
shall be deemed to constitute the Purchasers as a partnership, an association, a
joint  venture  or any other kind of entity,  or create a  presumption  that the
Purchasers  are in any way acting in concert or as a group with  respect to such
obligations or the transactions  contemplated by the Transaction Document.  Each
Purchaser  shall be  entitled to  independently  protect and enforce its rights,
including without  limitation the rights arising out of this Agreement or out of
the other  Transaction  Documents,  and it shall not be necessary  for any other
Purchaser  to be  joined  as an  additional  party  in any  proceeding  for such
purpose.  Each Purchaser has been  represented by its own separate legal counsel
in their review and  negotiation of the  Transaction  Documents.  For reasons of
administrative  convenience only,  Purchasers and their respective  counsel have
chosen to communicate  with the Company through FW. FW does not represent all of
the  Purchasers  but only HPC Capital  Management,  the  placement  agent to the
transaction.  The Company has  elected to provide all  Purchasers  with the same
terms and  Transaction  Documents  for the  convenience  of the  Company and not
because it was required or requested to do so by the Purchasers.

      5.19 Liquidated Damages.  The Company's  obligations to pay any liquidated
damages or other amounts owing under the  Transaction  Documents is a continuing
obligation  of the Company and shall not terminate  until all unpaid  liquidated
damages  and other  amounts  have been  paid  notwithstanding  the fact that the
instrument  or  security  pursuant  to which  such  liquidated  damages or other
amounts are due and payable shall have been canceled.

<PAGE>
                                ESCROW AGREEMENT

            THIS  ESCROW  AGREEMENT  (this  "Agreement")  is made as of July __,
2004, by and among Tasker Capital Corp., a Nevada  corporation  (the "Company"),
the  purchasers   signatory   hereto  (each  a  "Purchaser"   and  together  the
"Purchasers"),  and  Feldman  Weinstein  LLP,  with an address at 420  Lexington
Avenue,  New York, New York 10170-0002 (the "Escrow Agent").  CAPITALIZED  TERMS
USED BUT NOT DEFINED  HEREIN SHALL HAVE THE MEANINGS SET FORTH IN THE SECURITIES
PURCHASE AGREEMENT REFERRED TO IN THE FIRST RECITAL.

                              W I T N E S S E T H:

            WHEREAS,  the  Purchasers  will  be  purchasing  from  the  Company,
severally and not jointly with the other  Purchasers,  in the  aggregate,  up to
$1,500,000  in  the  aggregate,  of the  Principal  Amount  of  the  Convertible
Debentures (the  "Debentures") and the Warrants on the Closing Date as set forth
in the Securities  Purchase Agreement (the "Purchase  Agreement") dated the date
hereof between the Purchasers and the Company,  which  securities will be issued
under the terms contained herein and in the Purchase Agreement; and

            WHEREAS,  it is  intended  that the  purchase of the  securities  be
consummated  in  accordance  with the  requirements  set forth in  Regulation  D
promulgated under the Securities Act of 1933, as amended; and

            WHEREAS,  the Company and the  Purchasers  have  requested  that the
Escrow Agent hold the Subscription  Amounts in escrow until the Escrow Agent has
received  the Release  Notice in the form  attached  hereto from the Company and
each Purchaser;

            NOW,  THEREFORE,  in  consideration  of  the  covenants  and  mutual
promises contained herein and other good and valuable consideration, the receipt
and legal  sufficiency  of which are hereby  acknowledged  and  intending  to be
legally bound hereby, the parties agree as follows:

                                   ARTICLE 1

                              TERMS OF THE ESCROW

      1.1. The parties  hereby  agree to  establish  an escrow  account with the
Escrow  Agent  whereby the Escrow Agent shall hold the funds for the purchase of
up to  $1,500,000,  in the  aggregate,  of the  Debentures  and the  Warrants as
contemplated by the Purchase Agreement.

      1.2. Upon the Escrow Agent's receipt of the aggregate Subscription Amounts
for  the  Closing  into  its  master  escrow  account,  together  with  executed
counterparts  of this  Agreement,  the Purchase  Agreement and the  Registration
Rights Agreement,  it shall telephonically  advise the Company, or the Company's
designated  attorney or agent,  of the amount of funds it has received  into its
master escrow account.

      1.3. Wire transfers to the Escrow Agent shall be made as follows:

                                       1
<PAGE>

            STERLING NATIONAL BANK
            622 3RD AVENUE
            NEW YORK, NY 10017
            Account Name:  Feldman Weinstein LLP
            ABA ROUTING NO: 026007773
            ACCT NO: 0814180101
            Remark:  TKER/[FUND NAME]

      1.4 The Company, promptly following being advised by the Escrow Agent that
the Escrow  Agent has received the  Subscription  Amounts for the Closing  along
with facsimile copies of counterpart  signature pages of the Purchase Agreement,
Registration  Rights  Agreement and this  Agreement from each  Purchaser,  shall
deliver to the Escrow  Agent the  Debentures  and  Warrants to be issued to each
Purchaser at the Closing together with:

            (a) the Company's executed counterpart of the Purchase Agreement;

            (b) the Company's  executed  counterpart of the Registration  Rights
Agreement;

            (c) the executed opinion of Company Counsel,  in the form of Exhibit
D to the Purchase Agreement; and

            (d) the  Company's  original  executed  counterpart  of this  Escrow
Agreement.

      1.5 In the event that the  foregoing  items are not in the Escrow  Agent's
possession  within  five (5)  Trading  Days of the Escrow  Agent  notifying  the
Company  that the Escrow  Agent has custody of the  Subscription  Amount for the
Closing,  then each Purchaser shall have the right to demand the return of their
portion of the Subscription Amount.

      1.6 Once the Escrow Agent receives a Release Notice,  in the form attached
hereto as Exhibit X, (the  "Release  Notice")  executed  by the Company and each
Purchaser,  it shall wire 97% of that amount of funds  necessary to purchase the
Debentures and the Warrants per the written  instructions of the Company, net of
$10,000 to Feldman Weinstein, net of $27,500 to Sichenzia Ross Friedman Ference,
LLP and the remaining 3% per the written  instruction of HPC Capital  Management
as its fee in connection with the transaction described herein.

      1.7 Wire  transfers  to the  Company  shall be made  pursuant  to  written
instructions from the Company provided to the Escrow Agent on the Closing Date.

      1.8 Once the funds (as set forth  above) have been sent per the  Company's
instructions,  the  Escrow  Agent  shall  then  arrange  to  have  the  Purchase
Agreement, the Warrants, the Debentures,  the Registration Rights Agreement, the
Escrow  Agreement  and the  opinion  of  counsel  delivered  to the  appropriate
parties.

                                       2
<PAGE>

                                   ARTICLE II

                                 MISCELLANEOUS

      2.1 No waiver or any breach of any covenant or provision  herein contained
shall be deemed a waiver of any preceding or succeeding  breach  thereof,  or of
any other  covenant or  provision  herein  contained.  No  extension of time for
performance  of any  obligation  or act shall be deemed an extension of the time
for performance of any other obligation or act.

      2.2 All notices or other  communications  required or permitted  hereunder
shall be in writing, and shall be sent as set forth in the Purchase Agreement.

      2.3 This  Escrow  Agreement  shall be binding  upon and shall inure to the
benefit of the permitted successors and permitted assigns of the parties hereto.

      2.4 This Escrow  Agreement  is the final  expression  of, and contains the
entire agreement between,  the parties with respect to the subject matter hereof
and  supersedes  all prior  understandings  with  respect  thereto.  This Escrow
Agreement may not be modified, changed,  supplemented or terminated, nor may any
obligations  hereunder  be waived,  except by written  instrument  signed by the
parties to be charged or by its agent duly authorized in writing or as otherwise
expressly permitted herein.

      2.5  Whenever  required  by the  context  of this  Escrow  Agreement,  the
singular shall include the plural and masculine shall include the feminine. This
Escrow Agreement shall not be construed as if it had been prepared by one of the
parties,  but rather as if all parties had prepared the same.  Unless  otherwise
indicated, all references to Articles are to this Escrow Agreement.

      2.6 The parties hereto expressly agree that this Escrow Agreement shall be
governed by, interpreted under and construed and enforced in accordance with the
laws of the  State of New  York.  Any  action  to  enforce,  arising  out of, or
relating in any way to, any  provisions of this Escrow  Agreement  shall only be
brought in a state or Federal court sitting in New York City.

      2.7 The Escrow Agent's duties hereunder may be altered,  amended, modified
or revoked  only by a writing  signed by the  Company,  each  Purchaser  and the
Escrow Agent.

      2.8 The Escrow Agent shall be obligated  only for the  performance of such
duties as are  specifically set forth herein and may rely and shall be protected
in relying or refraining  from acting on any instrument  reasonably  believed by
the  Escrow  Agent to be genuine  and to have been  signed or  presented  by the
proper party or parties. The Escrow Agent shall not be personally liable for any
act the Escrow  Agent may do or omit to do  hereunder  as the Escrow Agent while
acting in good faith and in the absence of gross  negligence,  fraud and willful
misconduct,  and any act done or  omitted by the Escrow  Agent  pursuant  to the
advice of the Escrow Agent's  attorneys-at-law  shall be conclusive  evidence of
such  good  faith,  in the  absence  of  gross  negligence,  fraud  and  willful
misconduct.

      2.9 The Escrow Agent is hereby  expressly  authorized to disregard any and
all  warnings  given by any of the  parties  hereto  or by any  other  person or
corporation,  excepting  only  orders or  process of courts of law and is hereby
expressly authorized to comply with and obey orders, judgments or decrees of any
court. In case the Escrow Agent obeys or complies with any such order,  judgment
or decree,  the Escrow Agent shall not be liable to any of the parties hereto or
to any  other  person,  firm or  corporation  by  reason  of such  decree  being
subsequently reversed,  modified,  annulled, set aside, vacated or found to have
been entered without jurisdiction.

                                       3
<PAGE>

      2.10 The Escrow Agent shall not be liable in any respect on account of the
identity,  authorization  or rights of the parties  executing or  delivering  or
purporting  to execute or deliver the  Purchase  Agreement  or any  documents or
papers  deposited or called for  thereunder in the absence of gross  negligence,
fraud and willful misconduct.

      2.11 The Escrow  Agent shall be entitled to employ such legal  counsel and
other  experts as the Escrow  Agent may deem  necessary  properly  to advise the
Escrow Agent in connection  with the Escrow Agent's duties  hereunder,  may rely
upon  the  advice  of  such  counsel,   and  may  pay  such  counsel  reasonable
compensation; provided that the costs of such compensation shall be borne by the
Escrow  Agent.  THE  ESCROW  AGENT HAS ACTED AS LEGAL  COUNSEL  FOR HPC  CAPITAL
MANAGEMENT  ("HPC"),  AND MAY CONTINUE TO ACT AS LEGAL COUNSEL FOR HPC FROM TIME
TO TIME,  NOTWITHSTANDING ITS DUTIES AS THE ESCROW AGENT HEREUNDER.  THE COMPANY
AND THE PURCHASERS CONSENT TO THE ESCROW AGENT IN SUCH CAPACITY AS LEGAL COUNSEL
FOR HPC AND WAIVES ANY CLAIM THAT SUCH  REPRESENTATION  REPRESENTS A CONFLICT OF
INTEREST  ON THE  PART OF THE  ESCROW  AGENT.  THE  COMPANY  AND THE  PURCHASERS
UNDERSTAND THAT HPC AND THE ESCROW AGENT ARE RELYING EXPLICITLY ON THE FOREGOING
PROVISION IN ENTERING INTO THIS ESCROW AGREEMENT.

      2.12 The Escrow Agent's  responsibilities  as escrow agent hereunder shall
terminate  if the Escrow  Agent  shall  resign by giving  written  notice to the
Company and the Purchasers. In the event of any such resignation, the Purchasers
and the Company  shall  appoint a successor  Escrow  Agent and the Escrow  Agent
shall  deliver  to such  successor  Escrow  Agent  any  escrow  funds  and other
documents held by the Escrow Agent.

      2.13 If the Escrow Agent reasonably  requires other or further instruments
in connection with this Escrow  Agreement or obligations in respect hereto,  the
necessary parties hereto shall join in furnishing such instruments.

      2.14 It is  understood  and  agreed  that  should any  dispute  arise with
respect to the delivery and/or ownership or right of possession of the documents
or the escrow  funds held by the Escrow  Agent  hereunder,  the Escrow  Agent is
authorized and directed in the Escrow  Agent's sole  discretion (1) to retain in
the Escrow  Agent's  possession  without  liability to anyone all or any part of
said  documents or the escrow funds until such disputes  shall have been settled
either by mutual  written  agreement of the parties  concerned by a final order,
decree  or  judgment  or a court of  competent  jurisdiction  after the time for
appeal has expired and no appeal has been perfected,  but the Escrow Agent shall
be under no duty  whatsoever to institute or defend any such  proceedings or (2)
to deliver the escrow  funds and any other  property and  documents  held by the
Escrow Agent  hereunder to a state or Federal  court  having  competent  subject
matter  jurisdiction  and located in the City of New York in accordance with the
applicable procedure therefore

                                       4
<PAGE>

      2.15 The  Company  and each  Purchaser  agree  jointly  and  severally  to
indemnify and hold harmless the Escrow Agent and its partners, employees, agents
and representatives from any and all claims,  liabilities,  costs or expenses in
any way  arising  from or relating  to the duties or  performance  of the Escrow
Agent  hereunder  or the  transactions  contemplated  hereby or by the  Purchase
Agreement  other than any such claim,  liability,  cost or expense to the extent
the same shall have been determined by final,  unappealable  judgment of a court
of competent  jurisdiction to have resulted from the gross negligence,  fraud or
willful misconduct of the Escrow Agent.

                            ************************

                                       5
<PAGE>

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

TASKER CAPITAL CORP.

By:
   ---------------------------------------
     Name:
     Title:

With a copy to (which shall not constitute notice):

Darrin M. Ocasio
Sichenzia Ross Friedman Ference LLP
1065 Avenue of the Americas, 21st Floor
New York, NY 10018
212.930.9700 (phone)
212.930.9725 (fax)

ESCROW AGENT:

FELDMAN WEINSTEIN LLP

By:
   ------------------------------------------
   Name: Robert F. Charron
   Title: Authorized Signatory

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                     SIGNATURE PAGES FOR PURCHASERS FOLLOW]

<PAGE>

                 [SIGNATURE PAGE OF PURCHASERS TO TKER ESCROW]

Name of Investing Entity or Individual: __________________________
Signature of Authorized Signatory of Investing Entity or Individual: ___________
Name of Authorized Signatory (if not an Individual): _________________________
Title of Authorized Signatory (if not an Individual): ________________________

                     [SIGNATURE PAGE OF PURCHASERS FOLLOWS]

<PAGE>

                                                                    Exhibit X to
                                                                Escrow Agreement

                                 RELEASE NOTICE

            The UNDERSIGNED,  pursuant to the Escrow Agreement, dated as of July
____,  2004, among Tasker Capital Corp.,  the Purchasers  signatory  thereto and
Feldman  Weinstein  LLP, as Escrow  Agent (the "Escrow  Agreement";  capitalized
terms used herein and not defined shall have the meaning  ascribed to such terms
in the  Escrow  Agreement),  hereby  notify  the  Escrow  Agent that each of the
conditions precedent to the purchase and sale of the Securities set forth in the
Securities  Purchase  Agreement  have  been  satisfied.   The  Company  and  the
undersigned   Purchaser   hereby   confirm   that   all  of   their   respective
representations  and warranties  contained in the Purchase Agreement remain true
and  correct  and  authorize  the  release by the Escrow  Agent of the funds and
documents to be released at the Closing as  described  in the Escrow  Agreement.
This Release Notice shall not be effective until executed by the Company and the
Purchaser.

            This Release Notice may be signed in one or more counterparts,  each
of which shall be deemed an original.

            IN WITNESS WHEREOF,  the undersigned have caused this Release Notice
to be duly executed and delivered as of this __ day of July, 2004.

TASKER CAPITAL CORP.

By:
   -------------------------------------------------
   Name:
   Title:

                     [SIGNATURE PAGE OF PURCHASERS FOLLOWS]

<PAGE>

                 [SIGNATURE PAGE OF PURCHASERS TO TKER RELEASE]

Name of Investing Entity or Individual: __________________________
Signature of Authorized Signatory of Investing Entity or Individual: ___________
Name of Authorized Signatory (if not an Individual): _________________________
Title of Authorized Signatory (if not an Individul): _________________________

                     [SIGNATURE PAGE OF PURCHASERS FOLLOWS]

                            (Signature Pages Follow)

<PAGE>

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

TASKER CAPITAL CORP.                                     Address for Notice:
--------------------                                     -------------------

By:__________________________________________            100 Mill Plain Rd.
     Name:                                               Danbury, CT 06811
     Title:                                              203.546.3555 (phone)
                                                         203.546.3427 (fax)

With a copy to (which shall not constitute notice):

Darrin M. Ocasio
Sichenzia Ross Friedman Ference LLP
1065 Avenue of the Americas, 21st Floor
New York, NY 10018
212.930.9700 (phone)
212.930.9725 (fax)

                   [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                      SIGNATURE PAGE FOR PURCHASER FOLLOWS]

                                      -29-
<PAGE>

        [PURCHASER SIGNATURE PAGES TO TKER SECURITIES PURCHASE AGREEMENT]

      IN WITNESS WHEREOF,  the undersigned have caused this Securities  Purchase
Agreement to be duly executed by their respective  authorized  signatories as of
the date first indicated above.

Name of Investing Entity or Individual:_________________________________________

Signature of Authorized Signatory of Investing Entity: _________________________

Name of Authorized Signatory if not an Individual:______________________________

Title of Authorized Signatory if not an Individual: ____________________________

Email Address: _________________________________________________________________

Address for Notice of Investing Entity or Individual:

Address for Delivery of Securities  for Investing  Entity or Individual  (if not
same as above):

Subscription Amount:

Principal Amount:

Warrant Shares:

EIN or SSN Number:  [PROVIDE THIS UNDER SEPARATE COVER]

                           [SIGNATURE PAGES CONTINUE]

                                      -30-REGISTRATION RIGHTS AGREEMENT

      This Registration  Rights Agreement (this "Agreement") is made and entered
into  as of  July  __,  2004,  by and  among  Tasker  Capital  Corp.,  a  Nevada
corporation  (the  "Company"),  and the purchasers  signatory  hereto (each such
purchaser, a "Purchaser" and collectively, the "Purchasers").

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

      The Company and the Purchasers hereby agree as follows:

      1. Definitions

      CAPITALIZED  TERMS USED AND NOT OTHERWISE  DEFINED HEREIN THAT ARE DEFINED
IN THE  PURCHASE  AGREEMENT  SHALL  HAVE THE  MEANINGS  GIVEN  SUCH TERMS IN THE
PURCHASE  AGREEMENT.  As used in this Agreement,  the following terms shall have
the following meanings:

            "Effectiveness Date" means, with respect to the initial Registration
      Statement required to be filed hereunder,  the 90th calendar day following
      the Filing Date (120 in the event of a review by the Commission) and, with
      respect to any additional  Registration  Statements  which may be required
      pursuant to Section  3(c),  the 90th  calendar day  following  the date on
      which the Company first knows, or reasonably  should have known, that such
      additional   Registration  Statement  is  required  hereunder;   provided,
      however,  in the event the Company is notified by the Commission  that one
      of the above Registration  Statements will not be reviewed or is no longer
      subject to further review and comments,  the Effectiveness Date as to such
      Registration  Statement  shall be the fifth Trading Day following the date
      on which  the  Company  is so  notified  if such date  precedes  the dates
      required above.

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

            "Filing  Date"  means,  with  respect  to the  initial  Registration
      Statement required hereunder,  the 5th calendar day following the date the
      Company   shall  amended  the   Company's   certificate   of  articles  of
      incorporation  to increase the number of authorized but unissued shares of
      Common Stock and, with respect to any additional  Registration  Statements
      which may be required pursuant to Section 3(c), the 15th day following the
      date on which the Company  first knows,  or  reasonably  should have known
      that such additional Registration Statement is required hereunder.

            "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)
      hereof.

                                       1
<PAGE>

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

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

            "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  a  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 a Registration  Statement,  and all
      other   amendments   and   supplements   to  the   Prospectus,   including
      post-effective  amendments,  and all material incorporated by reference or
      deemed to be incorporated by reference in such Prospectus.

            "Registrable Securities" means (i) all of the shares of Common Stock
      issuable  upon  conversion  in full of the  Debentures,  (ii)  all  shares
      issuable as interest on the Debentures  assuming all interest payments are
      made in shares of Common Stock and the Debentures are held until maturity,
      (iii) all Warrant Shares,  (iv) any securities issued or issuable upon any
      stock split,  dividend or other distribution  recapitalization  or similar
      event with respect to the foregoing and (v) any additional shares issuable
      in connection with any anti-dilution provisions in the Debentures.

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

            "Rule 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 purpose and effect as such Rule.

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

                                       2
<PAGE>

      2. Shelf Registration

            (a) On or prior to each Filing Date,  the Company  shall prepare and
file with the Commission a "Shelf" Registration Statement covering the resale of
150% of the  Registrable  Securities  on such  Filing Date for an offering to be
made on a  continuous  basis  pursuant to Rule 415. The  Registration  Statement
shall be on Form SB-2  (unless the Company is not then  eligible to register the
Registrable  Securities for resale on Form SB-2, in which case such registration
shall be on another  appropriate form in accordance  herewith) and shall contain
(unless  otherwise   directed  by  the  Holders)   substantially  the  "Plan  of
Distribution"  attached  hereto  as  Annex  A.  Subject  to the  terms  of  this
Agreement,  the  Company  shall use its best  efforts to cause the  Registration
Statement  to be  declared  effective  under the  Securities  Act as promptly as
possible  after the filing  thereof,  but in any event  prior to the  applicable
Effectiveness  Date,  and shall use its best  efforts to keep such  Registration
Statement  continuously effective under the Securities Act until all Registrable
Securities covered by such Registration  Statement have been sold or may be sold
without volume restrictions pursuant to Rule 144(k) as determined by the counsel
to the Company  pursuant to a written  opinion letter to such effect,  addressed
and  acceptable to the Company's  transfer  agent and the affected  Holders (the
"Effectiveness  Period").  The Company shall immediately  notify the Holders via
facsimile of the  effectiveness  of the  Registration  Statement on the same day
that the Company receives notification of the effectiveness from the Commission.
Failure to so notify the Holder within 1 Trading Day of such notification  shall
be deemed an Event under Section 2(b).

            (b) If: (i) a Registration Statement is not filed on or prior to its
Filing Date (if the Company files a Registration Statement without affording the
Holders the opportunity to review and comment on the same as required by Section
3(a), the Company shall not be deemed to have satisfied clause (i)), or (ii) the
Company  fails  to file  with the  Commission  a  request  for  acceleration  in
accordance  with Rule 461  promulgated  under the  Securities  Act,  within five
Trading  Days of the date that the  Company is  notified  (orally or in writing,
whichever is earlier) by the Commission  that a Registration  Statement will not
be "reviewed," or not subject to further review, or (iii) prior to its Effective
Date, the Company fails to file a pre-effective  amendment and otherwise respond
in writing to comments made by the  Commission  in respect of such  Registration
Statement within 10 Trading Days after the receipt of comments by or notice from
the  Commission  that such  amendment  is required  in order for a  Registration
Statement to be declared  effective,  or (iv) a Registration  Statement filed or
required to be filed  hereunder is not declared  effective by the  Commission by
its  Effectiveness  Date,  or (v)  after  the  Effective  Date,  a  Registration
Statement  ceases  for any  reason to remain  continuously  effective  as to all
Registrable Securities for which it is required to be effective,  or the Holders
are not permitted to utilize the Prospectus  therein to resell such  Registrable
Securities  for 15  consecutive  days  or an  aggregate  of 25 days  during  any
12-month period (which need not be consecutive days) (any such failure or breach
being referred to as an "Event", and for purposes of clause (i) or (iv) the date
on which such Event  occurs,  or for  purposes  of clause (ii) the date on which
such five  Trading Day period is  exceeded,  or for purposes of clause (iii) the
date which such 10 Trading Day period is exceeded, or for purposes of clause (v)
the date on which such 15 or 25 day period,  as  applicable,  is exceeded  being
referred to as "Event  Date"),  then in addition to any other rights the Holders
may have  hereunder  or under  applicable  law:  (x) on each such Event Date the

                                       3
<PAGE>

Company  shall  pay to each  Holder an amount  in cash,  as  partial  liquidated
damages and not as a penalty, equal to 1.0% of the aggregate Subscription Amount
paid by such  Holder  pursuant to the  Purchase  Agreement  for any  Registrable
Securities then held by such Holder; and (y) on each monthly anniversary of each
such Event Date (if the applicable Event shall not have been cured by such date)
until the  applicable  Event is cured,  the Company  shall pay to each Holder an
amount in cash,  as partial  liquidated  damages and not as a penalty,  equal to
1.5% of the aggregate  Subscription  Amount paid by such Holder  pursuant to the
Purchase  Agreement for any Registrable  Securities then held by such Holder. If
the Company fails to pay any partial liquidated damages pursuant to this Section
in full within seven days after the date payable,  the Company will pay interest
thereon  at a rate of 18% per  annum  (or such  lesser  maximum  amount  that is
permitted to be paid by applicable  law) to the Holder,  accruing daily from the
date such partial liquidated  damages are due until such amounts,  plus all such
interest thereon,  are paid in full. The partial  liquidated damages pursuant to
the terms  hereof  shall  apply on a daily  pro-rata  basis for any portion of a
month prior to the cure of an Event.

      3. Registration Procedures

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

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

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

                                       4
<PAGE>

            (c) If during the  Effectiveness  Period,  the number of Registrable
Securities  at any time exceeds 75% of the number of shares of Common Stock then
registered in a Registration  Statement,  then the Company shall file as soon as
reasonably  practicable but in any case prior to the applicable  Filing Date, an
additional Registration Statement covering the resale by the Holders of not less
than 150% of the number of such Registrable Securities.

            (d) Notify the Holders of  Registrable  Securities to be sold (which
notice shall, pursuant to clauses (ii) through (vi) hereof, be accompanied by an
instruction  to suspend the use of the  Prospectus  until the requisite  changes
have been made) as promptly as reasonably  possible  (and, in the case of (i)(A)
below,  not less than five Trading Days prior to such filing) and (if  requested
by any such Person) confirm such notice in writing no later than one Trading Day
following  the day (i)(A) when a  Prospectus  or any  Prospectus  supplement  or
post-effective  amendment to a  Registration  Statement is proposed to be filed;
(B) when the Commission notifies the Company whether there will be a "review" of
such Registration  Statement and whenever the Commission  comments in writing on
such Registration  Statement (the Company shall provide true and complete copies
thereof and all written responses thereto to each of the Holders);  and (C) with
respect to a 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 a
Registration Statement or Prospectus or for additional information; (iii) of the
issuance by the Commission of any stop order  suspending the  effectiveness of a
Registration  Statement covering any or all of the Registrable Securities or the
initiation  of any  Proceedings  for that  purpose;  (iv) 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;  (v) of the  occurrence  of any event or passage of time that makes the
financial  statements  included  in  a  Registration  Statement  ineligible  for
inclusion  therein  or  any  statement  made  in  a  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 a
Registration Statement,  Prospectus or other documents so that, in the case of a
Registration  Statement  or the  Prospectus,  as the  case  may be,  it will not
contain any untrue  statement  of a material  fact or omit to state any material
fact required to be stated therein or necessary to make the statements  therein,
in light of the  circumstances  under which they were made, not misleading;  and
(vi) the  occurrence  or existence  of any pending  corporate  development  with
respect to the Company that the Company  believes  may be material and that,  in
the  determination  of the  Company,  makes it not in the best  interest  of the
Company  to  allow  continued  availability  of the  Registration  Statement  or
Prospectus;  provided  that  any  and  all  of  such  information  shall  remain
confidential  to each Holder until such  information  otherwise  becomes public,
unless  disclosure  by  a  Holder  is  required  by  law;   provided,   further,
notwithstanding  each Holder's agreement to keep such information  confidential,
the Holders  make no  acknowledgement  that any such  information  is  material,
non-public information.

                                       5
<PAGE>

            (e) Promptly deliver to each Holder,  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.  Subject
to the terms of this  Agreement,  the Company hereby consents to the use of such
Prospectus  and each  amendment  or  supplement  thereto by each of the  selling
Holders in connection with the offering and sale of the  Registrable  Securities
covered by such Prospectus and any amendment or supplement thereto.

            (f) Use commercially  reasonable  efforts to register or qualify the
resale of such Registrable Securities as required under applicable securities or
Blue Sky laws of each State within the United  States as any Holder  requests in
writing,   to  keep  each  such  registration  or  qualification  (or  exemption
therefrom) effective during the Effectiveness Period; provided, that the Company
shall not be required to qualify  generally  to do business in any  jurisdiction
where it is not then so  qualified or subject the Company to any material tax in
any such jurisdiction where it is not then so subject.

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

            (h) Upon the occurrence of any event contemplated by this Section 3,
as promptly as reasonably  possible under the circumstances  taking into account
the Company's good faith  assessment of any adverse  consequences to the Company
and its  stockholders  of the  premature  disclosure  of such  event,  prepare a
supplement or amendment, including a post-effective amendment, to a 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 a Registration Statement nor
such Prospectus  will contain an untrue  statement of a material fact or omit to
state a material  fact  required to be stated  therein or  necessary to make the
statements  therein,  in light of the circumstances  under which they were made,
not misleading.  If the Company  notifies the Holders in accordance with clauses
(ii)  through  (v) of Section  3(d)  above to suspend  the use of the use of any
Prospectus  until the requisite  changes to such Prospectus have been made, then
the Holders shall suspend use of such Prospectus.  The Company will use its best
efforts to ensure that the use of the  Prospectus  may be resumed as promptly as
is  practicable.  The Company shall be entitled to exercise its right under this
Section  3(h) to  suspend  the  availability  of a  Registration  Statement  and
Prospectus,  subject to the payment of partial  liquidated  damages  pursuant to
Section 2(b),  for a period not to exceed 60 days (which need not be consecutive
days) in any 12 month period.

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

            (j) Use its best  efforts to avoid the  issuance  of, or, if issued,
obtain  the  withdrawal  of (i) any  order  suspending  the  effectiveness  of a
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.

                                       6
<PAGE>

            (k) The Company may require,  at any time prior to the third Trading
Day prior to the Filing Date,  each Holder to furnish to the Company a statement
as to the number of shares of Common  Stock  beneficially  owned by such  Holder
and, if requested by the  Commission  and the Holder is not an  individual,  the
controlling person thereof,  within three Trading days of the Company's request.
During any periods that the Company is unable to meet its obligations  hereunder
with respect to the  registration of the Registrable  Securities  solely because
any Holder fails to furnish such  information  within three  Trading Days of the
Company's  request,  any partial  liquidated damages that are accruing as to the
Holders at such time shall be tolled and any Event that may  otherwise  occur as
to such  Holder  solely  because of such delay  shall be  suspended,  until such
information is delivered to the Company.

      4.  Registration   Expenses.   All  fees  and  expenses  incident  to  the
performance  of or compliance  with this Agreement by the Company shall be borne
by the Company  whether or not any  Registrable  Securities are sold pursuant to
the Registration  Statement.  The fees and expenses referred to in the foregoing
sentence shall include, without limitation, (i) all registration and filing fees
(including,  without  limitation,  fees and expenses (A) with respect to filings
required  to be made with the Trading  Market on which the Common  Stock is then
listed for trading,  and (B) in compliance with applicable  state  securities or
Blue Sky laws reasonably agreed to by the Company in writing (including, without
limitation, fees and disbursements of counsel for the Company in connection with
Blue  Sky  qualifications  or  exemptions  of  the  Registrable  Securities  and
determination  of the eligibility of the  Registrable  Securities for investment
under the laws of such jurisdictions as requested by the Holders), (ii) printing
expenses (including,  without limitation,  expenses of printing certificates for
Registrable  Securities and of printing prospectuses  requested by the Holders),
(iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of
counsel for the Company, and (v) fees and expenses of all other Persons retained
by  the  Company  in  connection  with  the  consummation  of  the  transactions
contemplated  by this Agreement.  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 and the fees and expenses
incurred in  connection  with the listing of the  Registrable  Securities on any
securities  exchange  as  required  hereunder.  In no event shall the Company be
responsible  for any  broker or  similar  commissions  or,  except to the extent
provided for in the Transaction Documents,  any legal fees or other costs of the
Holders.

      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

                                       7
<PAGE>

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 reasonable  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 a  Registration
Statement,  any  Prospectus  or any form of  prospectus  or in any  amendment or
supplement  thereto  or in any  preliminary  prospectus,  or  arising  out of or
relating to any omission or alleged  omission of a material  fact required to be
stated therein or necessary to make the  statements  therein (in the case of any
Prospectus  or form  of  prospectus  or  supplement  thereto,  in  light  of the
circumstances under which they were made) not misleading,  except to the extent,
but only to the extent,  that (1) such untrue statements or omissions or alleged
untrue statements or omissions are based upon information  regarding such Holder
furnished in writing to the Company by such Holder expressly for use therein, or
to the extent  that such  information  relates to such  Holder or such  Holder's
proposed method of  distribution of Registrable  Securities and was reviewed and
expressly approved in writing by such Holder expressly for use in a Registration
Statement,  such  Prospectus  or such form of  Prospectus or in any amendment or
supplement  thereto or (2) in the case of an  occurrence of an event of the type
specified  in Section  3(d)(ii)-(vi),  the use by such  Holder of an outdated or
defective  Prospectus after the Company has notified such Holder in writing that
the  Prospectus is outdated or defective and prior to the receipt by such Holder
of the Advice contemplated in Section 6(e). The Company shall notify the Holders
promptly of the institution,  threat or assertion of any Proceeding arising from
or in connection with the  transactions  contemplated by this Agreement of which
the Company is aware.

            (b) Indemnification by Holders. Each Holder shall, severally and not
jointly,  indemnify  and hold  harmless the Company,  its  directors,  officers,
agents and employees,  each Person who controls the Company  (within the meaning
of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the
directors,  officers,  agents or employees of such controlling  Persons,  to the
fullest  extent  permitted by  applicable  law,  from and against all Losses (as
determined by a court of competent  jurisdiction in a final judgment not subject
to appeal or review)  arising  out of or based upon any  untrue  statement  of a
material fact contained in any Registration  Statement,  any Prospectus,  or any
form of prospectus, or in any amendment or supplement thereto, or arising solely
out of or based  solely  upon:  (i) such  Holder's  failure  to comply  with the
prospectus delivery requirements of the Securities Act or (ii) any omission of a
material fact required to be stated  therein or necessary to make the statements
therein  not  misleading  to the  extent,  but only to the  extent,  such untrue
statement or omission is contained in any information so furnished in writing by
such Holder to the  Company  specifically  for  inclusion  in such  Registration
Statement or such Prospectus or to the extent that (1) such untrue statements or
omissions are based upon information  regarding such Holder furnished in writing
to the Company by such Holder  expressly for use therein,  or to the extent such
information  relates  to  such  Holder  or  such  Holder's  proposed  method  of
distribution of Registrable  Securities and was reviewed and expressly  approved
in writing by such Holder expressly for use in the Registration Statement,  such
Prospectus or such form of Prospectus or in any amendment or supplement  thereto
or (2) in the case of an occurrence of an event of the type specified in Section
3(d)(ii)-(vi),  the use by such Holder of an outdated  or  defective  Prospectus
after the Company has  notified  such Holder in writing that the  Prospectus  is
outdated  or  defective  and prior to the  receipt by such  Holder of the Advice
contemplated  in Section  6(e).  In no event shall the  liability of any selling
Holder hereunder be greater in amount than the dollar amount of the net proceeds
received by such Holder upon the sale of the Registrable  Securities giving rise
to such indemnification obligation.

                                       8
<PAGE>

            (c) Conduct of Indemnification  Proceedings. If any Proceeding shall
be brought or asserted  against any Person  entitled to indemnity  hereunder (an
"Indemnified  Party"),  such Indemnified  Party shall promptly notify the Person
from whom  indemnity is sought (the  "Indemnifying  Party") in writing,  and the
Indemnifying Party shall assume the defense thereof, including the employment of
counsel reasonably  satisfactory to the Indemnified Party and the payment of all
fees and expenses  incurred in connection with defense thereof;  provided,  that
the failure of any  Indemnified  Party to give such notice shall not relieve the
Indemnifying Party of its obligations or liabilities pursuant to this Agreement,
except  (and only) to the extent that such  failure  shall have  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 material  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 the expense of one such counsel for each
Holder  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.

      Subject  to the  terms of this  Agreement,  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 Trading 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 (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

                                       9
<PAGE>

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

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

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

      6. Miscellaneous

            (a)  Amendments  and  Waivers.  The  provisions  of this  Agreement,
including  the  provisions  of this  sentence,  may not be amended,  modified or
supplemented,  and waivers or consents to departures from the provisions  hereof
may not be given,  unless the same shall be in writing and signed by the Company
and  all  of  the  Holders  of  the  then  outstanding  Registrable  Securities.
Notwithstanding the foregoing, a waiver or consent to depart from the provisions
hereof  with  respect  to a matter  that  relates  exclusively  to the rights of
Holders  and that does not  directly  or  indirectly  affect the rights of other
Holders may be given by Holders of all 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.

            (b) No Inconsistent  Agreements.  Neither the Company nor any of its
subsidiaries has entered, as of the date hereof, nor shall the Company or any of
its  subsidiaries,  on or  after  the  date of this  Agreement,  enter  into any
agreement  with  respect  to its  securities,  that  would  have the  effect  of
impairing  the rights  granted to the  Holders in this  Agreement  or  otherwise
conflicts  with the  provisions  hereof.  Except as set forth on Schedule  6(b),
neither the Company nor any of its subsidiaries has previously  entered into any
agreement granting any registration rights with respect to any of its securities
to any Person that have not been satisfied in full.

                                       10
<PAGE>

            (c) No Piggyback on  Registrations.  Except as set forth on Schedule
6(c) attached hereto, neither the Company nor any of its security holders (other
than the Holders in such capacity pursuant hereto) may include securities of the
Company in the Registration Statement other than the Registrable Securities. The
Company  shall  not file any other  registration  statements  until the  initial
Registration   Statement   required  hereunder  is  declared  effective  by  the
Commission,  provided that this Section 6(c) shall not prohibit the Company from
filing amendments to registration statements already filed.

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

            (e) Discontinued Disposition.  Each Holder agrees by its acquisition
of such  Registrable  Securities that, upon receipt of a notice from the Company
of the occurrence of any event of the kind described in Sections 3(d)(ii), (iii)
or (vi), such Holder will forthwith discontinue  disposition of such Registrable
Securities  under a Registration  Statement  until such Holder's  receipt of the
copies of the  supplemented  Prospectus  and/or amended  Registration  Statement
contemplated  by Section 3(h), or until it is advised in writing (the  "Advice")
by the Company that the use of the applicable Prospectus may be resumed, and, in
either case, has received copies of any additional or supplemental  filings that
are incorporated or deemed to be incorporated by reference in such Prospectus or
Registration  Statement.  The  Company may  provide  appropriate  stop orders to
enforce the provisions of this  paragraph.  The Company agrees and  acknowledges
that any  period  during  which  the  Holder  is  required  to  discontinue  the
disposition  of the  Registrable  Securities  hereunder  shall be subject to the
provisions of Section 2(b).

            (f)   Piggy-Back   Registrations.   If  at  any  time   during   the
Effectiveness Period there is not an effective  Registration  Statement covering
all of the Registrable Securities and the Company shall determine to prepare and
file with the  Commission a registration  statement  relating to an offering for
its own account or the account of others under the  Securities Act of any of its
equity securities, other than on Form S-4 or Form S-8 (each as promulgated under
the Securities Act) or their then equivalents  relating to equity  securities to
be issued solely in connection with any acquisition of any entity or business or
equity  securities  issuable in connection  with stock option or other  employee
benefit plans, then the Company shall send to each Holder written notice of such
determination and, if within fifteen days after receipt of such notice, any such
Holder  shall  so  request  in  writing,  the  Company  shall  include  in  such
registration  statement  all or any  part of such  Registrable  Securities  such
holder  requests to be  registered;  provided,  that,  the Company  shall not be
required to register any  Registrable  Securities  pursuant to this Section 6(f)
that are  eligible  for resale  pursuant  to Rule 144(k)  promulgated  under the
Securities  Act  or  that  are  the  subject  of a then  effective  Registration
Statement.

            (g)  Notices.  Any  and  all  notices  or  other  communications  or
deliveries  required or permitted to be provided hereunder shall be delivered as
set forth in the Purchase Agreement.

                                       11
<PAGE>

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

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

            (j)  Governing  Law.  All  questions  concerning  the  construction,
validity,  enforcement and interpretation of this Agreement shall be governed by
and construed and enforced in accordance  with the internal laws of the State of
New York,  without  regard to the  principles of conflicts of law thereof.  Each
party hereby irrevocably submits to the exclusive  jurisdiction of the state and
federal  courts sitting in the City of New York,  Borough of Manhattan,  for the
adjudication  of any dispute  hereunder  or in  connection  herewith or with any
transaction  contemplated  hereby or discussed  herein,  and hereby  irrevocably
waives,  and agrees not to assert in any suit,  action or proceeding,  any claim
that it is not personally  subject to the  jurisdiction of any such court,  that
such suit,  action or  proceeding  is improper.  Each party  hereby  irrevocably
waives  personal  service of process and consents to process being served in any
such suit,  action or  proceeding by mailing a copy thereof to such party at the
address in effect for  notices to it under this  Agreement  and agrees that such
service  shall  constitute  good and  sufficient  service of process  and notice
thereof.  Nothing contained herein shall be deemed to limit in any way any right
to serve  process in any manner  permitted  by law.  Each  party  hereto  hereby
irrevocably  waives,  to the fullest extent permitted by applicable law, any and
all right to trial by jury in any legal proceeding arising out of or relating to
this Agreement or the transactions  contemplated  hereby.  If either party shall
commence a Proceeding  to enforce any  provisions  of this  Agreement,  then the
prevailing  party in such Proceeding  shall be reimbursed by the other party for
its   attorneys'   fees  and  other  costs  and  expenses   incurred   with  the
investigation, preparation and prosecution of such Proceeding.

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

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

                                       12
<PAGE>

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

            (n)  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 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.

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

                              ********************

                                       13
<PAGE>

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

                                        TASKER CAPITAL CORP.

                                        By:
                                           -------------------------------------
                                            Name:
                                            Title:

                      [SIGNATURE PAGE OF HOLDERS FOLLOWS]

                                       14
<PAGE>

                    [SIGNATURE PAGE OF HOLDERS TO TKER RRA]

Name of Investing Entity or Individual: __________________________
Signature of Authorized Signatory of Investing Entity or Individual: ___________
Name of Authorized Signatory (if not an Individual): _________________________
Title of Authorized Signatory (if not an Individual): ________________________

                           [SIGNATURE PAGES CONTINUE]

                                       15
<PAGE>

                              Plan of Distribution

      Each Selling Stockholder (the "Selling  Stockholders") of the common stock
("Common  Stock") of Tasker Capital Corp., a Nevada  corporation (the "Company")
and any of their pledgees,  assignees and successors-in-interest  may, from time
to time,  sell any or all of their shares of Common Stock on the American  Stock
Exchange or any other stock  exchange,  market or trading  facility on which the
shares  are traded or in private  transactions.  These  sales may be at fixed or
negotiated  prices.  A  Selling  Stockholder  may  use  any  one or  more of the
following methods when selling shares:

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

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

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

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

      o     privately negotiated transactions;

      o     settlement of short sales;

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

      o     a combination of any such methods of sale;

      o     through  the  writing or  settlement  of  options  or other  hedging
            transactions, whether through an options exchange or otherwise; or

      o     any other method permitted pursuant to applicable law.

      The Selling  Stockholders  may also sell  shares  under Rule 144 under the
Securities Act of 1933, as amended (the "Securities Act"), if available,  rather
than under this prospectus.

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

                                       16
<PAGE>

      In connection with the sale of our common stock or interests therein,  the
Selling  Stockholders may enter into hedging transactions with broker-dealers or
other  financial  institutions,  which may in turn  engage in short sales of the
common stock in the course of hedging the  positions  they  assume.  The Selling
Stockholders  may also sell shares of our common  stock short and deliver  these
securities  to close out their  short  positions,  or loan or pledge  the common
stock to  broker-dealers  that in turn may sell these  securities.  The  Selling
Stockholders   may  also  enter   into   option  or  other   transactions   with
broker-dealers  or other  financial  institutions or the creation of one or more
derivative  securities which require the delivery to such broker-dealer or other
financial  institution of shares offered by this  prospectus,  which shares such
broker-dealer  or  other  financial  institution  may  resell  pursuant  to this
prospectus (as supplemented or amended to reflect such transaction).

      The  Selling  Stockholders  and any  broker-dealers  or  agents  that  are
involved  in selling  the shares may be deemed to be  "underwriters"  within the
meaning of the Securities Act in connection with such sales. In such event,  any
commissions  received  by such  broker-dealers  or agents  and any profit on the
resale  of the  shares  purchased  by  them  may be  deemed  to be  underwriting
commissions or discounts under the Securities Act. Each Selling  Stockholder has
informed  the  Company  that it does not have any  agreement  or  understanding,
directly or indirectly, with any person to distribute the Common Stock.

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

      Because Selling Stockholders may be deemed to be "underwriters" within the
meaning of the Securities  Act, they will be subject to the prospectus  delivery
requirements of the Securities Act. In addition,  any securities covered by this
prospectus  which qualify for sale pursuant to Rule 144 under the Securities Act
may be sold under Rule 144 rather  than  under  this  prospectus.  Each  Selling
Stockholder  has  advised  us that they have not  entered  into any  agreements,
understandings or arrangements  with any underwriter or broker-dealer  regarding
the sale of the resale shares.  There is no underwriter or  coordinating  broker
acting in connection  with the proposed sale of the resale shares by the Selling
Stockholders.

      We agreed to keep this  prospectus  effective until the earlier of (i) the
date on which  the  shares  may be resold by the  Selling  Stockholders  without
registration  and  without  regard to any volume  limitations  by reason of Rule
144(e) under the  Securities Act or any other rule of similar effect or (ii) all
of the shares have been sold  pursuant to the  prospectus  or Rule 144 under the
Securities  Act or any other rule of similar  effect.  The resale shares will be
sold only through  registered or licensed  brokers or dealers if required  under
applicable  state securities  laws. In addition,  in certain states,  the resale
shares may not be sold unless they have been registered or qualified for sale in
the applicable  state or an exemption  from the  registration  or  qualification
requirement is available and is complied with.

      Under applicable rules and regulations  under the Exchange Act, any person
engaged in the distribution of the resale shares may not  simultaneously  engage
in market making activities with respect to our common stock for a period of two
business days prior to the commencement of the  distribution.  In addition,  the
Selling  Stockholders  will be subject to applicable  provisions of the Exchange
Act and the rules and regulations thereunder,  including Regulation M, which may
limit the timing of  purchases  and sales of shares of our  common  stock by the
Selling Stockholders or any other person. We will make copies of this prospectus
available  to the Selling  Stockholders  and have  informed  them of the need to
deliver a copy of this  prospectus to each  purchaser at or prior to the time of
the sale.

                                       17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}]]