Document:

REVOCABLE WARRANT AGREEMENT

                            NATURAL GAS SYSTEMS, INC.

         THIS REVOCABLE  WARRANT  AGREEMENT (this  "Agreement") is made
and entered  into as of June __,  2005,  between  Natural Gas  Systems,
Inc.,  a Nevada  corporation  (the  "Company"),  and Daryl V.  Mazzanti
("Holder").

                                 R E C I T A L S

         WHEREAS, the Company proposes to issue to Holder a maximum of TWO
HUNDRED THOUSAND (200,000) revocable warrants (the "Revocable Warrants"), each
such Revocable Warrant entitling the holder thereof to purchase, under certain
conditions, one share of common stock, .001 par value, of the Company (the
"Shares" or the "Common Stock");

         WHEREAS, the Revocable Warrants which are the subject of this Agreement
will be issued by the Company to Holder in connection with Holder's employment
with the Company pursuant to the Employment Agreement ("Employment Agreement")
and the Stock Option Agreement ("Stock Option Agreement").

         WHEREAS, the Revocable Warrants shall be subject to revocation by the
Company without any further consideration under the terms and conditions
detailed herein.

         NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein set forth, the parties hereto agree as follows:

                                A G R E E M E N T

         1. Revocable Warrant Certificates. The warrant certificates to be
delivered pursuant to this Agreement (the "Revocable Warrant Certificates")
shall be in the form set forth in Exhibit A, attached hereto and made a part
hereof, with such appropriate insertions, omissions, substitutions and other
variations as are required or permitted by this Revocable Warrant Agreement.

         2. Right to Exercise Revocable Warrants. Each Revocable Warrant may be
exercised, in whole or in part, after those Revocable Warrants are fully vested
and no longer Restricted Warrants (as defined in Section 3 below) until 11:59
P.M. (Eastern Standard Time) on the date that is ten (10) years after the date
of this Agreement (the "Expiration Date"). Each Revocable Warrant not exercised
or revoked on or before the Expiration Date shall expire.

         Other than as specified in Section 3 herein, each Revocable Warrant
shall entitle its holder to purchase from the Company one share of Common Stock
(each an "Exercise Share") at an exercise price of ___________________________
($_________) per share, subject to adjustment as set forth below ("Exercise
Price").

         The Company shall not be required to issue fractional shares of Common
Stock upon the exercise of this Revocable Warrant or to deliver Revocable
Warrant Certificates which evidence fractional shares of capital stock. In the
event that a fraction of an Exercise Share would, except for the provisions of
this paragraph 2, be issuable upon the exercise of this Revocable Warrant, the
Company shall pay to the Holder exercising the Revocable Warrant an amount in
cash equal to such fraction multiplied by the current market value of the
Exercise Share. For purposes of this paragraph 2, the current market value shall
be determined as follows:
<PAGE>

                  (a) if the Shares are traded in the over-the-counter market
and not on any national securities exchange and not in the NASDAQ Reporting
System, the average of the mean between the last bid and asked prices per share,
as reported by the National Quotation Bureau, Inc., or an equivalent generally
accepted reporting service, for the last business day prior to the date on which
the Revocable Warrant is exercised, or, if not so reported, the average of the
closing bid and asked prices for a Share as furnished to the Company by any
member of the National Association of Securities Dealers, Inc., selected by the
Company and Holder for that purpose.

                  (b) if the Shares are listed or traded on a national
securities exchange or in the NASDAQ Reporting System, the closing price on the
principal national securities exchange on which they are so listed or traded or
in the NASDAQ Reporting System, as the case may be, on the last business day
prior to the date of the exercise of the Revocable Warrant. The closing price
referred to in this Clause (b) shall be the last reported sales price or, in
case no such reported sale takes place on such day, the average of the reported
closing bid and asked prices on such day, in either case on the national
securities exchange on which the Shares are then listed or in the NASDAQ
Reporting System; or

                  (c) if no such closing price or closing bid and asked prices
are available, as determined by the Holder and the Board of Directors of the
Company.

         3. Revocation of the Revocable Warrants. Notwithstanding anything to
the contrary, all Revocable Warrants granted by the Company to the Holder under
this Agreement shall be subject to forfeiture, revocation and cancellation
without any further or additional consideration due or owed to Holder as
specified herein (the "Right of Revocation").

                  (a) Scope of Revocation Right. Until the Revocable Warrants
vest in accordance with Subsection (b) below, the Revocable Warrants shall be
restricted warrants and not exercisable under Section 2 hereof and shall be
subject to the Company's Right of Revocation (the "Restricted Warrants"). The
Company may exercise its Right of Revocation only during the period after one
year of continuous employment and/or 180 consecutive days after on the date the
Holder's Service terminates for any reason, including (without limitation) death
or disability (the "Revocation Period"). The Right of Revocation may be
exercised automatically under Subsection (d) below.

                  (b) Lapse of Revocation Right. Initially, all Revocable
Warrants granted under this Agreement shall be Restricted Warrants subject to
the Company's Right of Revocation. The Right of Revocation shall lapse with
respect to the first 1/4th of the Revocable Warrants when the Holder completes
one year and one day of continuous employment after the date of this Agreement.
The Right of Revocation shall lapse with respect to an additional 1/4th of the
total Revocable Warrants when the Holder completes each year of continuous
employment thereafter.

                  (c) Escrow. Upon issuance, the certificate(s) for Restricted
Warrants shall be deposited in escrow with the Company to be held in accordance
with the provisions of this Agreement. Any additional or exchanged securities or
other property described in Section 9 below shall immediately be delivered to
the Company to be held in escrow. Restricted Warrants, together with any other
assets held in escrow under this Agreement, shall be (i) surrendered to the
Company for repurchase upon exercise of the Right of Revocation or (ii) released
to the Holder upon his or her request to the extent that the Revocable Warrants
have ceased to be Restricted Warrants. In any event, all Revocable Warrants that
have ceased to be Restricted Warrants, together with any other vested assets
held in escrow under this Agreement, shall be released within 10 days after the
termination of the Holder's employment.
<PAGE>

                  (d) Exercise of Revocation Right. The Company shall be deemed
to have exercised its Right of Revocation automatically for all Restricted
Warrants during the Revocation Period, if (i) the Holder's employment with the
Company is terminated for any reason, or (ii) the Company HAS NOT commenced the
"Development Project" within one year of date hereof, specified and defined in
Exhibit B, attached hereto. If the Company HAS commenced the Development Project
within one year of date hereof, then Company may not exercise its revocation
rights except in the case of termination of employment of Holder for any reason.
For clarification, if the Company does not commence the Development Project
within one year of the date hereof, all warrants issued under this Agreement
shall be revoked by the Company; if the Company does commence the Development
Project within one year of the date hereof, then upon the one year anniversary
of the Holder's employment with the Company, 1/4th of the total warrants will
vest and no longer be subject to revocation, and the remaining Restricted
Warrants shall vest annually in equal amounts. In such event, the certificate(s)
representing the Restricted Warrants being repurchased shall be delivered to the
Company properly endorsed for transfer. The Company may, at its sole discretion,
choose to waive its Right of Revocation of the Restricted Stock as set forth in
part (ii) of this section by providing written notice thereof prior to the date
of revocation.

                  (e) Termination of Rights as Stockholder. If the Right of
Revocation is exercised in accordance with this Section 3, then the Holder shall
no longer have any rights as a holder of the Restricted Warrants. Such
Restricted Warrants shall be deemed to have been revoked pursuant to this
Section 3, whether or not the certificate(s) for such Restricted Warrants have
been delivered to the Company.

                  (f) Transfer of Warrants. The Holder shall not transfer,
assign, encumber or otherwise dispose of any Restricted Warrants without the
Company's written consent, except as provided in the following sentence. The
Revocable Warrants granted hereby shall not be transferable except by will or
the laws of descent and distribution. During the lifetime of the Holder, the
Revocable Warrant may be exercised only by the Holder, the guardian or legal
representative of the Holder.

                  (g) Acceleration. In addition to the other conditions set
forth in this Agreement, the Company's Right of Revocation with respect to
unvested Restricted Warrants shall lapse prior to the vesting period specified
in Section 3(b) above at the time or times set forth below:

                           (i) If the Company is subject to a Change in Control
         (as defined in below) before the Holder's employment terminates, the
         Right of Revocation shall lapse in full if and only if (1) this
         Revocable Warrant does not remain outstanding following the Change in
         Control; (2) this Revocable Warrant is not assumed by the surviving
         corporation or its parent; (3) the surviving corporation or its parent
         does not substitute an option with substantially the same terms for
         this Revocable Warrant; OR (iv) the full value of the vested Revocable
         Warrants under this Agreement is not settled in cash or cash
         equivalents.

                           (ii) If the Right of Revocation has not lapsed
         pursuant to Paragraph (i) above, AND if the Holder is subject to an
         Involuntary Termination (defined below) within 12 months after the
         Change in Control, then this Revocable Warrant shall become no longer
         be subject to a Right of Revocation.

                           (iii) If the Right of Revocation has not lapsed
         pursuant to Paragraph (i) above, AND if the Company is subject to a
         Change of Control, then fifty percent (50%) of the remaining Restricted
         Warrants shall no longer be subject to a Right of Revocation, and the
         remaining Restricted Warrants shall vest at the rate set forth in
         Section 3(b) above, reduced pro rata by the amount of Restricted
         Warrants no longer subject to a Right of Revocation pursuant to this
         Section. All other terms and conditions shall remain unchanged.
<PAGE>

                           (iv) Definitions:

                                    (1)     "Change in  Control"  shall
         mean: (A) The consummation of a merger or consolidation of the Company
         with or into another entity or any other corporate reorganization, if
         persons who were not controlling stockholders of the Company
         immediately prior to such merger, consolidation or other reorganization
         own immediately after such merger, consolidation or other
         reorganization 50% or more of the voting power of the outstanding
         securities of each of the continuing or surviving entity and any direct
         or indirect parent corporation of such continuing or surviving entity;
         OR (B) The sale, transfer or other disposition of all or substantially
         all of the Company's assets. A transaction shall not constitute a
         Change in Control if its sole purpose is to change the state of the
         Company's incorporation or to create a holding company that will be
         owned in substantially the same proportions by the persons who held the
         Company's securities immediately before such transaction.

                           (2) "Involuntary Termination" shall mean the
         termination of the Optionee's employment by reason of: (A) The
         involuntary discharge of the Holder by the Company for reasons other
         than Cause (as defined in Holder's Employment Agreement with the
         Company, of even date herewith); or (B) The voluntary resignation of
         the Holder following a reduction in the Holder's base salary or
         assigned duties or receipt of notice that the Holder's principal
         workplace will be relocated more than 30 miles.

         4. Mutilated or Missing Revocable Warrant Certificates. In case any of
the Revocable Warrant Certificates shall be mutilated, lost, stolen or destroyed
prior to the Expiration Date, the Company shall issue and deliver, in exchange
and substitution for and upon cancellation of the mutilated Revocable Warrant
Certificate, or in lieu of and in substitution for the Revocable Warrant
Certificate lost, stolen or destroyed, a new Revocable Warrant Certificate of
like tenor and representing an equivalent right or interest.

         5. Reservation of Shares. The Company will at all times reserve and
keep available, free from preemptive rights, out of the aggregate of its
authorized but unissued Shares or its authorized and issued Shares held in its
treasury for the purpose of enabling it to satisfy its obligation to issue
Exercise Shares upon exercise of Revocable Warrants, the full number of Exercise
Shares deliverable upon the exercise of all outstanding Revocable Warrants. The
Company covenants that all Exercise Shares which may be issued upon exercise of
Revocable Warrants will be validly issued, fully paid and non-assessable
outstanding Shares of the Company.

         6. Rights of Holder. The Holder shall not, by virtue of anything
contained in this Revocable Warrant Agreement or otherwise, prior to exercise of
this Revocable Warrant, be entitled to any right whatsoever, either in law or
equity, of a stockholder of the Company, including without limitation, the right
to receive dividends or to vote or to consent or to receive notice as a
stockholder in respect of the meetings of stockholders or the election of
directors of the Company of any other matter.

         7. Investment Intent; Accredited Investor. Holder represents and
warrants to the Company that Holder is acquiring the Revocable Warrants for
investment purposes and with no present intention of distributing or reselling
any of the Revocable Warrants. Holder represents that it is an "accredited
investor" within the meaning of Rule 501 of Regulation D under the Securities
Act of 1933, as amended (the "Act").
<PAGE>

         8. Certificates to Bear Legend. The Revocable Warrants and the
certificate or certificates therefore shall bear the following legend by which
each holder shall be bound:

         "THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED
         UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD,
         PLEDGED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION
         THEREOF UNDER SUCH ACT OR PURSUANT TO RULE 144 OR AN OPINION OF
         COUNSEL, REASONABLY SATISFACTORY TO THE CORPORATION AND ITS COUNSEL,
         THAT SUCH REGISTRATION IS NOT REQUIRED. THE SECURITIES REPRESENTED BY
         THIS INSTRUMENT ARE SUBJECT TO TRANSFER RESTRICTIONS, VESTING AND
         REVOCATION UNDER THE TERMS OF THE REVOCABLE WARRANT AGREEMENT, DATED
         JUNE __, 2005"

                  The Exercise Shares and the certificate or certificates
evidencing any such Exercise Shares shall bear the following legend:

         "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
         REGISTERED UNDER THE SECURITIES ACT OF 1933. THE SHARES MAY NOT BE SOLD
         OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN OPINION OF
         COUNSEL ACCEPTABLE TO THE COMPANY THAT AN EXEMPTION FROM REGISTRATION
         UNDER SUCH ACT IS AVAILABLE."

         Certificates for Revocable Warrants or Exercise Shares, as the case may
be, without such legend shall be issued if such Revocable Warrants or Exercise
Shares are sold pursuant to an effective registration statement under the Act or
if the Company has received an opinion from counsel reasonably satisfactory to
counsel for the Company that such legend is no longer required under the Act.

         9. Adjustment of Number of Shares and Class of Capital Stock
Purchasable. The number of Exercise Shares and class of capital stock
purchasable under this Revocable Warrant are subject to adjustment from time to
time as set forth in this Section 9.

              (a) Adjustment for Change in Capital Stock. If the Company:

                  (i)   pays a dividend or makes a distribution on its Common
                        Stock, in each case, in shares of its Common Stock;

                  (ii)  subdivides its outstanding shares of Common Stock into
                        a greater number of shares;

                  (iii) combines its outstanding shares of Common Stock into a
                        smaller number of shares; or

                  (iv)  makes a distribution on its Common Stock in shares of
                        its capital stock other than Common Stock

then the number and classes of Exercise Shares purchasable upon exercise of each
Revocable Warrant in effect immediately prior to such action shall be adjusted
so that the holder of any Revocable Warrant thereafter exercised may receive the
number and classes of shares of capital stock of the Company which such holder
would have owned immediately following such action if such holder had exercised
the Revocable Warrant immediately prior to such action.
<PAGE>

                  For a dividend or distribution the adjustment shall become
effective immediately after the record date for the dividend or distribution.
For a subdivision, combination or reclassification, the adjustment shall become
effective immediately after the effective date of the subdivision, combination
or reclassification.

                  If after an adjustment the holder of a Revocable Warrant upon
exercise of it may receive shares of two or more classes of capital stock of the
Company, the Board of Directors of the Company shall in good faith determine the
allocation of the adjusted Exercise Price between or among the classes of
capital stock. After such allocation, that portion of the Exercise Price
applicable to each share of each such class of capital stock shall thereafter be
subject to adjustment on terms comparable to those applicable to the Exercise
Shares in this Agreement.

                  (b) Consolidation, Merger or Sale of the Company. If the
Company is a party to a consolidation, merger, transfer of assets or any other
business combination which reclassifies or changes its outstanding Common Stock,
the successor corporation (or corporation controlling the successor corporation
or the Company, as the case may be) shall by operation of law assume the
Company's obligations under this Agreement. Upon consummation of such
transaction, the Revocable Warrants shall automatically become exercisable for
the kind and amount of securities, cash or other assets which the holder of a
Revocable Warrant would have owned immediately after the consolidation, merger,
transfer or business combination if the holder had exercised the vested amount
of the Revocable Warrant immediately before the effective date of such
transaction. The Company shall arrange for the person or entity obligated to
issue securities or deliver cash or other assets upon exercise of the Revocable
Warrant to, concurrently with the consummation of such transaction, assume the
Company's obligations hereunder by executing an instrument so providing and
further providing for adjustments which shall be as nearly equivalent as may be
practical to the adjustments provided for in this Section 9. The provisions of
this Section 9(b) shall similarly apply to successive reclassifications,
reorganizations, consolidations, mergers or other business combinations.

         10. Successors. All the covenants and provisions of this Agreement by
or for the benefit of the Company or Holder shall bind and inure to the benefit
of their respective successor and assigns hereunder.

         11. Counterparts. This Agreement may be executed in any number of
counterparts and each of such counterparts shall for all proposes be deemed to
be an original, and such counterparts shall together constitute by one and the
same instrument.

         12. Notices. All notices or other communications under this Agreement
shall be in writing and shall be deemed to have been given if delivered by hand
or mailed by certified mail, postage prepaid, return receipt requested,
addressed as follows: if to the Company: Natural Gas Systems, Inc., Two Memorial
City Plaza, 820 Gessner, Suite 1340, Houston, TX 77024, Attention: Legal
Counsel, and to the Holder at the address of the Holder appearing on the books
of the Company or the Company's transfer agent, if any.

         Either the Company or the Holder may from time to time change the
address to which notices to it are to be mailed hereunder by notice in
accordance with the provisions of this Paragraph 12.
<PAGE>

         13. Supplements and Amendments. The Company may from time to time
supplement or amend this Agreement with the approval of the Holder in order to
cure any ambiguity or to be correct or supplement any provision contained herein
which may be defective or inconsistent with any other provision, or to make any
other provisions in regard to matters or questions herein arising hereunder
which the Company may deem necessary or desirable and which shall not materially
adversely affect the interest of the Holder. Except as set forth in the
immediately preceding sentence, this Agreement may not be amended without the
prior written consent of the Holder and Company.

         14. Severability. If for any reason any provision, paragraph or term of
this Agreement is held to be invalid or unenforceable, all other valid
provisions herein shall remain in full force and effect and all terms,
provisions and paragraphs of this Agreement shall be deemed to be severable.

         15. Governing Law. This Agreement shall be deemed to be a contract made
under the laws of the State of Nevada and for all purposes shall be governed and
construed in accordance with the laws of said State.

         16. Headings. Paragraphs and subparagraph headings, used herein are
included herein for convenience of reference only and shall not affect the
construction of this Agreement nor constitute a part of this Agreement for any
other purpose.

         17. Taxes. The acquisition of the Revocable Warrants (and common stock
issuable thereunder) may result in adverse tax consequences to the Holder. The
Holder understands that he may suffer adverse tax consequences as a result of
his acquisition or disposition of the Revocable Warrants (and common stock
issuable thereunder). Holder represents that he has consulted any tax
consultants Holder deems advisable in connection with the acquisition or
disposition of the Revocable Warrants (and common stock issuable thereunder),
including the advantages and disadvantages of filing the Code Section 83(b)
election. The Holder acknowledges that it is his or her sole responsibility, and
not the Company's, to file a timely election under Code Section 83(b), even if
the Holder requests the Company or its representatives to make this filing on
his or her behalf. and that Holder is not relying on the Company or the
Company's attorney for any tax advice. Acquisitions or dispositions of cash or
equity made under this Agreement may be subject to reduction to reflect taxes or
other charges required to be withheld by law.

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

 COMPANY                                   HOLDER:
 Natural Gas Systems, Inc.                 Daryl V. Mazzanti

By: _________________________________      By: _________________________________
Name: Robert S. Herlin, President--------------------------------------------------------------------------------

                          REGISTRATION RIGHTS AGREEMENT

                            Dated as of June 27, 2005

                                     between

                                 Mykonos 6420 LP

                                       and

                                iSecureTrac Corp.

--------------------------------------------------------------------------------

<PAGE>

            THIS  REGISTRATION  RIGHTS AGREEMENT (this  "Agreement") is made and
entered  into as of  June  27,  2005,  between  iSecureTrac  Corp.,  a  Delaware
corporation  (the "Company"),  and Mykonos 6420 LP, a Texas limited  partnership
(the "Investor").

                                    RECITALS

            WHEREAS,  this Agreement is made pursuant to that certain Securities
Purchase  Agreement,  dated  as of June 21,  2005  (the  "Purchase  Agreement"),
between the Company and the  Investor,  under which the Investor  will  purchase
from the Company, and the Company will issue,  1,000,000 shares of the Company's
Series C 8% Cumulative, Compounding Exchangeable Preferred Stock, par value $.01
per share (the  "Preferred  Stock") and warrants (the  "Purchased  Warrants") to
acquire  32,342,315  shares of the Company's  common stock,  par value $.001 per
share (the "Common Stock"); and

            WHEREAS,  the Preferred Stock is exchangeable for 47,826,087  shares
of Common Stock and warrants to acquire  62,870,447  shares of Common Stock (the
"Exchange Warrants" and, together with the Purchased Warrants,  the "Warrants");
and

            WHEREAS,  the  Company  and the  Investor  wish to  provide  for the
registration  of the shares of Common  Stock that will be issued by the  Company
upon the  exchange of the  Preferred  Stock and the exercise of the Warrants for
resale by the Company under federal securities laws.

                                    AGREEMENT

            NOW  THEREFORE,  in  consideration  of the mutual  covenants  herein
contained  and for other good and  valuable  consideration,  the parties  hereto
agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

SECTION 1.1 DEFINITIONS. Capitalized terms used herein and not otherwise defined
herein  have  the  meanings  ascribed  to them  in the  Purchase  Agreement.  In
addition,  the following  capitalized  terms shall have the meanings ascribed to
them below:

            "Affiliate,"  as applied  to any  specified  Person,  shall mean any
other Person directly or indirectly controlling or controlled by or under direct
or indirect  common  control  with such  specified  Person and, in the case of a
Person  who is an  individual,  shall  include  (i)  members  of such  specified
Person's  immediate  family  (as  defined  in  Instruction  2 of Item  404(a) of
Regulation  S-K under the Securities  Act) and (ii) trusts,  the trustee and all
beneficiaries  of which are such  specified  Person or members of such  Person's
immediate  family as determined in accordance with the foregoing clause (i). For
the  purposes  of this  definition,  "control,"  when used with  respect  to any
Person,  means the power to direct the  management  and policies of such Person,
directly or indirectly,  whether through the ownership of voting securities,  by
contract  or  otherwise;  and the  terms  "controlling"  and  "controlled"  have
meanings correlative to the foregoing.

                                        1
<PAGE>

            "Business Day" means any day that is not a Saturday, Sunday or a day
on which  banking  institutions  in  Dallas,  Texas or Omaha,  Nebraska  are not
required to be open.

            "Closing  Date"  means  the date on which  Preferred  Stock  and the
Purchased Warrants are first issued under the Purchase Agreement.

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

            "Deferral Period" is defined in Section 2.1.

            "Demand Notice" is defined in Section 2.1.

            "Demand Registration" is defined in Section 2.1.

            "Exchange  Act"  means  the  Securities  Exchange  Act of  1934,  as
amended, and the rules and regulations promulgated thereunder.

            "Exchange Warrants" is defined in the preamble.

            "Investor" is defined in the preamble.

            "Person"  means an  individual,  partnership,  corporation,  limited
liability  company,  trust or  unincorporated  organization,  or a government or
agency or political subdivision thereof.

            "Piggyback Registration" is defined in Section 2.2.

            "Preferred  Stock"  means  the  Series  C  Cumulative,   Compounding
Exchangeable Preferred Stock, par value, $.01 per share, of the Company.

            "Prospectus"  means  the  prospectus   included  in  a  Registration
Statement,  as amended or supplemented  by any prospectus  supplement and by all
other amendments thereto,  including post-effective amendments, and all material
incorporated by reference into such Prospectus.

            "Public  Distribution"  shall mean any bona fide underwritten public
distribution of Stock pursuant to an effective  registration statement under the
Securities Act or any other  applicable  law, or any bona fide public sale in an
open market  transaction  under Rule 144 of the Securities Act (or any successor
rule) if such sale is in compliance  with the  requirements  of paragraphs  (c),
(d), (e), (f) and (g) of such Rule  (notwithstanding the provisions of paragraph
(k) of such Rule).

            "Public  Offering"  shall  mean any bona  fide  underwritten  public
distribution of Stock pursuant to an effective  registration statement under the
Securities Act or any other applicable law.

                                        2
<PAGE>

            "Purchased Warrants" is defined in the preamble.

            "Registrable  Securities" means all shares of Common Stock issued to
the Investor upon  exchange of the  Preferred  Stock or upon the exercise of the
Warrants  (including,  for purposes hereof,  any shares of Common Stock to which
Investor  became entitled to receive due to a dividend on, or other payment made
to the holders of the Common Stock or issued in  connection  with a split of the
Common  Stock or as a result of any exchange or  reclassification  of the Common
Stock or any  reorganization,  consolidation,  merger or recapitalization of the
Company until (i) it has been  effectively  registered  under the Securities Act
and disposed of by the Investor pursuant to an effective registration statement,
or (ii)  it is  sold  by the  Investor  pursuant  to  Rule  144 (or any  similar
provisions  then in force) under the Securities  Act.  "Registrable  Securities"
shall include all shares of Common Stock issued or issuable upon exercise of the
Warrants.

            "Registration  Statement"  means any  registration  statement of the
Company relating to a Demand  Registration  pursuant to Section 2.1, a Piggyback
Registration  pursuant  to Section  2.2,  or a Shelf  Registration  pursuant  to
Section  2.3, in each case,  including  the  Prospectus  included  therein,  all
amendments and supplements thereto (including post-effective amendments) and all
exhibits and material incorporated by reference therein.

            "SEC" means the Securities and Exchange Commission.

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

            "Shelf Registration" or "Shelf Registration  Statement" is defined
in Section 2.3.

            "Stock" means the following  securities (i) the Common Stock or (ii)
any security or other instrument (a) received as a dividend on, or other payment
made to the holders of, the Common  Stock (or any other  security or  instrument
referred to in this  definition) or (b) issued in connection with a split of the
Common  Stock  (or  any  other  security  or  instrument  referred  to  in  this
definition)  or as a result of any  exchange or  reclassification  of the Common
Stock (or any other  security or  instrument  referred  to in this  definition),
reorganization, consolidation, merger or recapitalization.

            "Underwritten  Registration"  or  "Underwritten  Offering"  means  a
registration  in  which  Stock  of the  Company  is sold to an  underwriter  for
re-offering to the public.

            "Warrants" is defined in the preamble.

                                   ARTICLE II

                               REGISTRATION RIGHTS

            SECTION 2.1 DEMAND REGISTRATIONS.

            (a) Request for  Registration.  At any time and from time to time on
or after the 180th day following the Closing Date the Investor may make three

                                        3
<PAGE>

written  requests of the Company for  registration  with the SEC (some or all of
which may be shelf  registrations  under Section  2.3),  under and in accordance
with the  provisions of the  Securities  Act, of all or part of its  Registrable
Securities (a "Demand  Registration") by giving written notice to the Company of
such demand (a "Demand Notice"),  provided that the Company shall be required to
effect  only one Demand  Registration  during any  six-month  period.  Each such
Demand Notice will specify the number of Registrable  Securities  proposed to be
sold  pursuant to such Demand  Registration  and will also  specify the intended
method of disposition  thereof. The Company shall promptly forward a copy of any
Demand  Notice to each other  stockholder  of the  Company  having  registration
rights which are pari passu with those of the  Investor  (each,  an  "Equivalent
Rights Holder").

      Promptly after receipt of any Demand Notice, but in no event later than 60
days after receipt of such Demand Notice,  the Company shall file a Registration
Statement with the SEC with respect to the  Registrable  Securities  included in
the  Demand  Notice  and  shall use its  reasonable  best  efforts  to have such
Registration Statement declared effective as promptly as practicable;  provided,
however, that the Company may postpone the filing of such Registration Statement
for a period of up to 90 days (the "Deferral  Period") if the Board of Directors
reasonably determines that (i) such a filing would adversely affect any proposed
financing, acquisition, divestiture or other material transaction by the Company
or (ii)  such a filing  would  otherwise  represent  an undue  hardship  for the
Company.  The  Company  shall  not be  entitled  to  request  more than one such
deferral  (two in the case of events of the type  described in clause (i) above)
with  respect  to any Demand  Registration  within any  365-day  period.  If the
Company does elect to defer any such Demand  Registration,  the Investor may, at
its  election  by written  notice to the  Company,  (i)  confirm  its request to
proceed with such Demand Registration upon the expiration of the Deferral Period
or (ii) withdraw its request for such Demand  Registration in which case no such
request for a Demand  Registration shall be deemed to have occurred for purposes
of this Agreement.

            (b) Effective  Registration.  Except as provided in  subsection  (c)
below,  a  registration  will not be deemed to have  been  effected  as a Demand
Registration unless it has been declared effective by the SEC; provided that if,
after it has become effective,  the offering of Registrable  Securities pursuant
to such registration is or becomes the subject of any stop order,  injunction or
other  order  or   requirement  of  the  SEC  or  any  other   governmental   or
administrative  agency, or if any court prevents or otherwise limits the sale of
Registrable  Securities  pursuant to the registration (for any reason other than
the acts or omissions of the Investor),  such registration will be deemed not to
have been effected. If (i) a registration requested pursuant to this Section 2.1
is deemed not to have been  effected in  accordance  with the  provisions of the
preceding  sentence or (ii) the registration  requested pursuant to this Section
2.1 does not  remain  continuously  effective  for a period  of at least 90 days
beyond the  effective  date  thereof (or such  shorter  period as is required to
complete the distribution by the Investor of the Registrable Securities included
in such registration statement) (the "Demand Registration Statement"), then such
Demand Registration  Statement shall not count as a Demand Registration that may
be requested by the Investor and the Company  shall  continue to be obligated to
effect a registration pursuant to this Section 2.1.

            (c)  Withdrawal.  The  Investor  may withdraw all or any part of the
Registrable Securities from a Demand Registration at any time (whether before or

                                        4
<PAGE>

after the filing or effective date of the Demand Registration Statement), and if
all such  Registrable  Securities are withdrawn  before the filing of the Demand
Registration Statement, the Investor may withdraw the demand related thereto.

            (d)  Selection  of  Underwriter.  If the  Investor  so  elects,  the
offering of Registrable Securities pursuant to a Demand Registration shall be in
the form of an Underwritten Offering. The Investor and the Company shall jointly
select one or more nationally  recognized firms of investment  bankers to act as
the managing  underwriter or  underwriters  in connection with such offering and
shall  select any  additional  investment  bankers  and  managers  to be used in
connection  with such offering;  provided that in the event that the Company and
the  Investor  are  unable  to  jointly  agree on such  investment  bankers  and
managers, such investment bankers and managers shall be selected by the Investor
and shall be reasonably satisfactory to the Company. The Company shall (together
with the Investor) enter into an  underwriting  agreement in customary form with
the underwriter or underwriters selected for such underwriting in the manner set
forth above.

            (e) Priority on Demand Registrations. If, in any Demand Registration
involving an  Underwritten  Offering the managing  underwriter  or  underwriters
thereof  advise the  Investor  or the  Company  in writing  that in its or their
reasonable opinion the number of Registrable  Securities  proposed to be sold by
the Investor in such Demand  Registration  and by each Equivalent  Rights Holder
that has duly  demanded  registration  of its shares of Common Stock exceeds the
number that can be sold in such offering or will adversely affect the success of
such offering (including,  without limitation, an impact on the selling price or
the number of Registrable Securities that any participant may sell), the Company
shall include in such registration only the number of Registrable Securities, if
any,  which in the  opinion  of such  underwriter  or  underwriters  can be sold
without  having  an  adverse  effect  on the  success  of the  offering.  If all
Registrable  Securities  requested to be sold in the  Underwritten  Offering are
included therein, the Company may include other shares of Stock in such offering
in  accordance  with  the  following  priority,  but not to  exceed  the  number
recommended by the managing  underwriter or  underwriters:  (x) first,  pro rata
among any other  stockholders  of the Company having  piggyback or other similar
registration  rights and (y) second,  shares of Stock  proposed to be sold by or
for the account of the Company.

            SECTION 2.2 PIGGYBACK REGISTRATIONS.

            (a) Right to Participate in Registration. If at any time the Company
proposes to file a registration  statement under the Securities Act with respect
to an  offering  by the  Company  for its own  account or for the account of any
holders of any class of common equity  securities (other than (i) a registration
statement on Form S-4 or S-8 (or any substitute  form that may be adopted by the
SEC)  or  (ii) a  registration  statement  filed  in  connection  with a  Demand
Registration or a Shelf Registration or (iii) a registration  statement filed in
connection  with an  offering of  securities  solely to the  Company's  existing
securityholders),  then the Company  shall give written  notice of such proposed
filing to the Investor as soon as practicable (but in no event less than 20 days
before the  anticipated  filing date),  and such notice shall offer the Investor
the  opportunity to register such number of shares of Registrable  Securities as
the Investor may request, which request shall specify the Registrable Securities
intended  to be  disposed  of  by  the  Investor  and  the  intended  method  of
distribution thereof (or, if the offering is a proposed  Underwritten  Offering,
that the  Investor  elects  to have the  number  of  Registrable  Securities  so
specified included in such Underwritten Offering) (a "Piggyback Registration").

                                        5
<PAGE>

            The  Company  shall use its  reasonable  best  efforts  to cause the
managing  underwriter or  underwriters  of a proposed  Underwritten  Offering to
permit  the  Registrable  Securities  requested  by the  Investor  thereof to be
included  in a  Piggyback  Registration  to be  included  on the same  terms and
conditions as any similar securities of the Company or any other  securityholder
included therein and to permit the sale or other disposition of such Registrable
Securities in accordance with the intended method of distribution thereof.

            No  registration  effected  under this Section 2.2 and no failure of
the Investor to seek registration  under this Section 2.2(a),  shall relieve the
Company  of its  obligations  pursuant  to  Section  2.1,  and no failure of the
Investor to seek registration under this Section 2.2(a) and complete the sale of
shares in connection therewith shall relieve the Company of any other obligation
under this Agreement (including,  without limitation,  the Company's obligations
under Sections 3.2 and 4.1).

            (b) Priority on  Piggyback  Registrations.  Unless the  registration
statement is being filed  pursuant to a Demand  Registration  (in which case the
priority of piggyback  rights shall be as provided in Section 2.1(e) above),  if
the managing  underwriter or underwriters  advise the Company in writing that in
its or their reasonable  opinion the number of equity  securities of the Company
proposed to be sold in such registration (including Registrable Securities to be
included  pursuant to subsection (a) above) will adversely affect the success of
such offering (including,  without limitation, an impact on the selling price or
the number of equity  securities of the Company that any  participant may sell),
the Company shall include in such  registration the number of equity  securities
of the Company, if any, which in the opinion of such underwriter or underwriters
can be sold without  having an adverse  effect on the offering and in accordance
with the following  priority:  (i) first, the securities the Company proposes to
sell for its own  account,  and (ii)  second,  pro rata  based on the  number of
Registrable  Securities that the Investor or any Equivalent  Rights Holder shall
have requested to be included therein.

            (c)  Withdrawal.  The  Investor  may withdraw all or any part of the
Registrable Securities from a Piggyback Registration at any time (before but not
after the effective date of such registration statement),  by delivering written
notice  of  such  withdrawal  request  to the  Company,  unless  such  Piggyback
Registration is underwritten,  in which case  Registrable  Securities may not be
withdrawn after the effective date of the Registration Statement.

            (d) Termination of Registration by the Company. If the Company shall
determine  for any reason  (x) not to  register  or (y) to delay a  registration
which includes Registrable  Securities pursuant to this Section 2.2, the Company
may, at its election,  give written notice of such determination to the Investor
and,  thereupon  (i) in the case of a  determination  not to register,  shall be
relieved of its obligation to register any Registrable  Securities in connection
with such  registration  (but not from its  obligation  to pay the  Registration
Expenses  (as  defined  below)  in  connection  therewith),  without  prejudice,
however,  to  the  rights,  if  any,  of  the  Investor  to  request  that  such
registration be effected as a Demand Registration under Section 2.1, and (ii) in
the case of a delay in registering,  shall be permitted to delay registering any
Registrable  Securities  for the same  period as the delay in  registering  such
other shares.

                                        6
<PAGE>

            SECTION 2.3 SHELF REGISTRATION.

            (a) Filing and  Effectiveness.  Subject to Section 2.1 hereof,  upon
the  request  of the  Investor  at any time  after the 180th day  following  the
Closing  Date,  the Company  shall cause to be filed with the SEC as promptly as
practicable after such request, but in no event later than 90 days thereafter, a
shelf  registration  statement  pursuant to Rule 415 under the Securities Act (a
"Shelf  Registration"  or  a  "Shelf  Registration   Statement"),   which  Shelf
Registration  Statement shall provide for resales of all Registrable  Securities
held by the Investor who shall have provided the information  required  pursuant
to Section  3.1(b).  The Company shall use its  reasonable  best efforts to have
such Shelf Registration declared effective, subject to Section 2.3(c) below, and
to keep such Shelf Registration Statement continuously  effective,  supplemented
and amended to the extent  necessary to ensure that it is available  for resales
of Registrable  Securities by the Investor,  and to ensure that it conforms with
the requirements of this Agreement,  the Securities Act and the policies,  rules
and  regulations  of the SEC as announced  from time to time, for a period of at
least  two (2)  years  following  the  date on  which  such  Shelf  Registration
Statement  becomes effective under the Securities Act. A request of the Investor
under  this  Section  2.3(a)  shall  be  deemed  to be a  request  for a  Demand
Registration under Section 2.1 above.

            (b) Effective  Registration.  A  registration  will not be deemed to
have been effected as a Shelf Registration unless it has been declared effective
by the SEC and the  Company  has  complied  in all  material  respects  with its
obligations  under this Agreement with respect thereto;  provided that if, after
it has become effective, the offering of Registrable Securities pursuant to such
registration  is or becomes the subject of any stop order,  injunction  or other
order or  requirement  of the SEC or any other  governmental  or  administrative
agency,  or if any court  prevents or otherwise  limits the sale of  Registrable
Securities  pursuant to the registration  (for any reason other than the acts or
omissions of the Investor),  such  registration  will be deemed not to have been
effected.  If (i) the Shelf  Registration is deemed not to have been effected in
accordance  with the  provisions  of the  preceding  sentence  or (ii) the Shelf
Registration does not remain continuously  effective for the period described in
subsection (a) above, then such Shelf Registration  Statement shall not count as
a Shelf  Registration and the Company shall continue to be obligated to effect a
registration pursuant to this Section 2.3.

            (c) Suspension. With respect to any Shelf Registration that has been
declared effective (i) the Company may suspend use of such Shelf Registration at
any time if the  continued  effectiveness  thereof  would require the Company to
disclose a material financing, acquisition or other corporate transaction, which
disclosure  the Board of Directors of the Company shall have  determined in good
faith is not in the best interests of the Company and its stockholders, and (ii)
the Company may suspend use of such Shelf Registration during any period if each
of the Company and the Investor  consents in writing to such suspension for such
period.

                                        7
<PAGE>

                                   ARTICLE III

                             REGISTRATION PROCEDURES

            SECTION 3.1 REGISTRATION PROCEDURES.

            (a)  General   Provisions.   In  connection  with  any  Registration
Statement and any related  Prospectus  required by this  Agreement to permit the
sale or resale of Registrable Securities, the Company shall:

                  (1)  prepare  and file with the SEC a  registration  statement
            with respect to such Registrable  Securities within the time periods
            specified  herein,  make all required  filings with the NASD and use
            its best  efforts to cause  such  registration  statement  to become
            effective as promptly as practicable (subject to the Company's right
            to  withdraw  the  registration  statement  under the  circumstances
            described in Sections 2.1(c) or 2.2(d));

                  (2) promptly prepare and file with the SEC such amendments and
            post-effective  amendments to the  Registration  Statement as may be
            necessary  to keep  the  Registration  Statement  effective  for the
            applicable  period  set  forth  in  Sections  2.1,  2.2 or  2.3,  as
            applicable,  or such  shorter  period  as will  terminate  when  all
            Registrable  Securities covered by such Registration  Statement have
            been sold (subject to Section  2.3(c));  cause the  Prospectus to be
            supplemented  by  a  required  Prospectus  supplement,   and  as  so
            supplemented  to be filed  pursuant to Rule 424 under the Securities
            Act, and to comply fully with the applicable  provision of Rules 424
            and 430A under the  Securities  Act in a timely  manner;  and comply
            with  the  provisions  of the  Securities  Act with  respect  to the
            disposition of all securities covered by such Registration Statement
            during the applicable  period in accordance with the intended method
            or methods of  distribution by the sellers thereof set forth in such
            Registration Statement or supplement to the Prospectus;

                  (3) use its reasonable best efforts to keep such  Registration
            Statement continuously effective and provide all requisite financial
            statements for the period  specified in Sections 2.1, 2.2 or 2.3, as
            applicable  (subject to Section 2.3(c));  upon the occurrence of any
            event  that  would  cause  any such  Registration  Statement  or the
            Prospectus contained therein (A) to contain a material  misstatement
            or  omission  or (B) not to be  effective  and  usable for resale of
            Registrable Securities during the period required by this Agreement,
            the Company  shall file as promptly as  practicable  an  appropriate
            amendment to such Registration Statement, in the case of clause (A),
            correcting any such  misstatement  or omission,  and, in the case of
            either clause (A) or (B), use its  reasonable  best efforts to cause
            such  amendment  to be  declared  effective  and  such  Registration
            Statement and related Prospectus to become usable for their intended
            purposes(s) as soon as practicable thereafter;

                  (4)  provide (A) the  Investor,  (B) the  underwriters  (which
            term, for purposes of this Agreement,  shall include a Person deemed
            to be an  underwriter  within the  meaning  of Section  2(11) of the
            Securities  Act),  if  any,  of  the  Registrable  Securities  to be
            registered,  (C) the sale or placement agent  therefor,  if any, (D)
            counsel  for such  underwriters  or agent,  and (E)  counsel for the

                                       8
<PAGE>

            Investor,  the opportunity to participate in the preparation of such
            registration  statement,  each prospectus  included therein or filed
            with the SEC, and each  amendment or supplement  thereto,  and for a
            reasonable   period  prior  to  the  filing  of  such   registration
            statement,  and  throughout  the period  specified in Section 3.4(b)
            hereof,  make available for inspection by the parties referred to in
            (A) through (E) above such financial and other information and books
            and records of the  Company,  provide  access to  properties  of the
            Company and cause the officers,  directors,  employees,  counsel and
            independent  certified public  accountants of the Company to respond
            to such  inquiries  as shall be  reasonably  necessary  to conduct a
            reasonable  investigation  within  the  meaning of Section 11 of the
            Securities Act;

                  (5) advise the underwriters, if any, and the Investor promptly
            and,  if  requested  by such  Persons,  to  confirm  such  advice in
            writing,  (A) when the  Prospectus or any  Prospectus  supplement or
            post-effective  amendment  has been filed,  and, with respect to any
            Registration Statement or any post-effective amendment thereto, when
            the same has  become  effective,  (B) of any  request by the SEC for
            amendments   to  the   Registration   Statement  or   amendments  or
            supplements to the Prospectus or for additional information relating
            thereto, (C) of the issuance by the SEC of any stop order suspending
            the effectiveness of the Registration Statement under the Securities
            Act or of the suspension by any state  securities  commission of the
            qualification of the Registrable  Securities for offering or sale in
            any jurisdiction, or the initiation of any proceeding for any of the
            preceding  purposes,  (D)  of  the  existence  of  any  fact  or the
            happening of any event that makes any  statement of a material  fact
            made in the Registration Statement, the Prospectus, any amendment or
            supplement  thereto,  or  any  document  incorporated  by  reference
            therein  untrue,  or that requires the making of any additions to or
            changes in the Registration  Statement or the Prospectus in order to
            make the statements  therein not misleading.  If at any time the SEC
            shall  issue any stop  order  suspending  the  effectiveness  of the
            Registration  Statement, or any state securities commission or other
            regulatory   authority   shall   issue  an  order   suspending   the
            qualification  or exemption from  qualification  of the  Registrable
            Securities  under  state  securities  or Blue Sky laws,  the Company
            shall use its  reasonable  best efforts to obtain the  withdrawal or
            lifting of such order at the earliest possible time;

                  (6) furnish to the Investor and each of the  underwriter(s) in
            connection  with such  sale,  if any,  such  number of copies of any
            Registration   Statement  or  Prospectus  included  therein  or  any
            amendments  or  supplements  to any such  Registration  Statement or
            Prospectus (including all documents  incorporated by reference after
            the initial filing of such  Registration  Statement and all exhibits
            filed therewith), reasonably requested by such Person;

                  (7) if  requested  by the  Investor or the  underwriter(s)  in
            connection  with  such  sale,  if  any,   promptly  include  in  any
            Registration  Statement or  Prospectus,  pursuant to a supplement or
            post-effective  amendment  if  necessary,  such  information  as the
            Investor and such underwriter(s),  if any, may reasonably request to
            have included therein,  including,  without limitation,  information
            relating  to  the  "Plan  of   Distribution"   of  the   Registrable
            Securities,  information  with  respect to the  principal  amount of
            Registrable  Securities  being  sold  to  such  underwriter(s),  the
            purchase  price  being  paid  therefor  and any  other  terms of the
            offering of the Registrable  Securities to be sold in such offering,

                                       9
<PAGE>

            and make all  required  filings  of such  Prospectus  supplement  or
            post-effective amendment as soon as practicable after the Company is
            notified of the matters to be included in such Prospectus supplement
            or post-effective amendment;

                  (8) deliver to the Investor and each of the underwriter(s), if
            any,  without  charge,  as many copies of the Prospectus  (including
            each preliminary prospectus) and any amendment or supplement thereto
            as such Persons reasonably may request;  the Company hereby consents
            to the use of the Prospectus and any amendment or supplement thereto
            by  the  Investor  and  each  of  the  underwriter(s),  if  any,  in
            connection  with  the  offering  and  the  sale  of the  Registrable
            Securities  covered by the Prospectus or any amendment or supplement
            thereto;

                  (9) in connection with any Underwritten Offering pursuant to a
            Demand Registration,  enter into an underwriting  agreement with one
            or more  underwriter  designated in accordance  with this Agreement,
            such  agreement  to  be of  the  form,  scope  and  substance  as is
            customary in underwritten offerings, and take all such other actions
            as are reasonably requested by the managing  underwriter(s) in order
            to  expedite  or  facilitate  the  disposition  of such  Registrable
            Securities and in such connections (i) make such representations and
            warranties to the  underwriters in form,  scope and substance as are
            customarily   made  by  issuers  to   underwriters  in  underwritten
            offerings  with respect to the business of the Company;  (ii) obtain
            opinions  of counsel  to the  Company  and  updates  thereof  (which
            counsel  and  opinions  (in  form,  scope  and  substance)  shall be
            reasonably satisfactory to the managing underwriter(s)) addressed to
            the managing underwriter(s) covering the matters customarily covered
            in  opinions  requested  in  underwritten  offerings  and such other
            matters as may be reasonably  requested by the  underwriters;  (iii)
            obtain  "comfort"  letters and updates  thereof  from the  Company's
            independent   certified   public   accountants   addressed   to  the
            underwriters,  such  "comfort"  letters to be in customary  form and
            covering  matters  of the  type  customarily  covered  in  "comfort"
            letters in connection with underwritten offerings; (iv) deliver such
            documents and  certificates  as may be  reasonably  requested by the
            managing  underwriter(s)  to evidence  compliance with any customary
            conditions   contained  in  the  underwriting   agreement  or  other
            agreement  entered into by the  Company.  The above shall be done at
            each closing under such underwriting or similar agreement;

                  (10) prior to any public  offering of Registrable  Securities,
            cooperate with the Investor,  the underwriter(s),  if any, and their
            respective   counsel  in  connection  with  the   registration   and
            qualification of the Registrable  Securities under the securities or
            Blue   Sky  laws  of  such   jurisdictions   as  the   Investor   or
            underwriter(s), if any, may request and do any and all other acts or
            things  necessary  or advisable  to enable the  disposition  in such
            jurisdictions   or  the  Registrable   Securities   covered  by  the
            applicable  Registration  Statement;  provided,  however,  that  the
            Company  shall not be  required  to register or qualify as a foreign
            corporation  where it is not now so  qualified or to take any action
            that  would  subject  it to the  service  of  process in suits or to
            taxation,  except as is  required  as a result  of the  Registration
            Statement, in any jurisdiction where it is not now so subject;

                  (11) in  connection  with any sale of  Registrable  Securities
            that will  result in such  securities  no longer  being  Registrable

                                       10
<PAGE>

            Securities,  cooperate with the Investor and the underwriter(s),  if
            any,  to  facilitate   the  timely   preparation   and  delivery  of
            certificates  representing Registrable Securities to be sold and not
            bearing any restrictive  legends;  and to register such  Registrable
            Securities in such  denominations  and such names as the Investor or
            the  underwriter(s),  if any, may request at least two Business Days
            prior to such sale of Registrable Securities;

                  (12) if requested by the Investor,  provide a CUSIP number for
            all Registrable  Securities not later than the effective date of the
            Registration  Statement  covering such  Registrable  Securities  and
            provide the Company's  transfer  agent(s) and  registrar(s)  for the
            Registrable Securities with printed certificates for the Registrable
            Securities;

                  (13)  if  applicable,  cooperate  and  assist  in any  filings
            required to be made with the NASD or any stock exchange on which the
            Company's stock are then listed (each, a "Relevant  Exchange");  and
            in  the  performance  of  any  due  diligence  investigation  by any
            underwriter (including any "qualified independent underwriter") that
            is  required  to be  retained  in  accordance  with  the  rules  and
            regulations of any Relevant Exchange,  and use their best efforts to
            cause such  Registration  Statement to become effective and approved
            by such governmental  agencies or authorities as may be necessary to
            enable the  Investor  or  underwriters,  if any, to  consummate  the
            disposition of such Registrable Securities;

                  (14)  otherwise  use its  best  efforts  to  comply  with  all
            applicable  rules and  regulations  of the SEC,  and make  generally
            available  to its  security  holders,  as  soon  as  practicable,  a
            consolidated earnings statement meeting the requirements of Rule 158
            under the  Securities  Act (which  need not be  audited)  covering a
            period of at least twelve month periods,  but not more than eighteen
            months,  beginning  with  the  first  month of the  Company's  first
            quarter  commencing  after the  effective  date of the  Registration
            Statement,  which earnings statement shall satisfy the provisions of
            Section 11(a) of the Securities Act; and

                  (15)  cause  all   Registrable   Securities   covered  by  the
            Registration  Statement to be listed on each securities  exchange on
            which  securities  of the same class  issued by the Company are then
            listed if requested by the Investor.

            The  Investor,  upon  receipt of any notice  from the Company of the
happening of any event  described in subsection  (5)(B),  (C), or (D) of Section
3.1(a) or in Section 2.3(c) (a "Suspension Notice"), shall forthwith discontinue
disposition of the Registrable Securities pursuant to the Registration Statement
relating  thereto  until the Investor  receives  copies of the  supplemented  or
amended  Prospectus  contemplated  hereby or until it is advised in writing (the
"Advice") by the Company that the use of the Prospectus may be resumed,  and has
received copies of any additional or supplemented  filings that are incorporated
by reference in the Prospectus, and, if so directed by the Company, the Investor
will,  or will  request the managing  underwriter  or  underwriters,  if any, to
deliver  to the  Company  (at the  Company's  expense)  all  copies,  other than
permanent  file  copies then in the  Investor's  possession,  of the  Prospectus
covering  such  Registrable  Securities  current  at the time of receipt of such
notice.  The period from the date on which the  Investor  receives a  Suspension
Notice to the date on which the Investor receives either the Advice or copies of

                                       11
<PAGE>

the  supplemented  or amended  Prospectus  contemplated  hereby relating to such
notice  shall  hereinafter  be  referred to as the  "Suspension  Period." If the
Company  shall  give  any  Suspension  Notice,  (i) the  Company  shall  use its
reasonable  best  efforts and take such actions as are  reasonably  necessary to
render Advice and end the Suspension  Period as promptly as practicable and (ii)
the time  periods  for which a  Registration  Statement  is  required to be kept
effective  pursuant to Sections  2.1,  2.2 or 2.3, as the case may be,  shall be
extended by the number of days during the period from and  including the date of
the giving of such Suspension Notice to and including the date when the Investor
shall have  received (A) the copies of the  supplemented  or amended  Prospectus
contemplated by Section 3.1 (a) or (B) the Advice.

            (b) Provision by the Investor of Certain  Information.  The Investor
shall  not  include  any  of its  Registrable  Securities  in  any  Registration
Statement  pursuant to this Agreement unless and until the Investor furnishes to
the Company in writing, within 20 days after receipt of a request therefor, such
information  as the  Company may  reasonably  request  specified  in item 507 of
Regulation  S-K  under  the  Securities  Act  for  use in  connection  with  any
Registration Statement or Prospectus or preliminary Prospectus included therein.
The Investor agrees to furnish promptly to the Company all information  required
to be disclosed  in order to make the  information  previously  furnished to the
Company by the Investor not materially misleading.

            SECTION 3.2 REGISTRATION EXPENSES.

            (a)  All  expenses  incident  to  the  Company's  performance  of or
compliance  with this  Section 3.2 will be paid by the  Company,  regardless  of
whether  any  registration   statement  required  hereunder  becomes  effective,
including, without limitation:

                  (1) all registration and filing fees;

                  (2) fees and expenses of  compliance  with  securities or blue
            sky  laws  (including,  without  limitation,   reasonable  fees  and
            disbursements of counsel in connection with blue sky  qualifications
            of the Registrable Securities and determination of their eligibility
            for investment under the laws of such  jurisdictions as the managing
            underwriters or Investor may designate);

                  (3)  printing  (including,  without  limitation,  expenses  of
            printing or engraving certificates for the Registrable Securities in
            a form eligible for trading on any Relevant  Exchange or for deposit
            with the  Depository  Trust  Company and of printing  prospectuses),
            messenger, telephone and delivery expenses;

                  (4)  reasonable  fees and  disbursements  of  counsel  for the
            Company;

                  (5)  reasonable  fees  and  disbursements  of all  independent
            certified  public  accountants  of the Company  (including,  without
            limitation,  the  expenses of any special  audit and "cold  comfort"
            letters required by or incident to such performance);

                  (6)  fees  and  expenses  of  other  Persons  retained  by the
            Company; and

                                       12
<PAGE>

                  (7) fees and expenses  associated  with any filing required to
            be made by any Relevant Exchange in connection with the registration
            of  the  Registrable  Securities,   including,  if  applicable,  the
            reasonable   fees  and  expenses  of  any   "qualified   independent
            underwriter"  (and its  counsel)  that is required to be retained in
            accordance with the rules and  regulations of any Relevant  Exchange
            (all such  expenses  being herein called  "Registration  Expenses");
            provided,  however,  nothing  herein  imposes any  obligation on the
            Company to seek to have the Common  Stock  listed for trading on the
            Nasdaq or any other stock exchange.

            (b) The  Company  will,  in any  event,  pay its  internal  expenses
(including,  without  limitation,  all salaries and expenses of its officers and
employees  performing  legal or  accounting  duties),  the expense of any annual
audit,  the fees and  expenses  incurred in  connection  with the listing of the
Registrable  Securities to be  registered on any Relevant  Exchange and the fees
and expenses of any Person, including special experts, retained by the Company.

            SECTION  3.3  PARTICIPATION  IN  UNDERWRITTEN   REGISTRATIONS.   The
Investor may not participate in any Underwritten  Registration  hereunder unless
the Investor (i) agrees to sell its Registrable Securities on the basis provided
in any underwriting  arrangements  approved by the Persons entitled hereunder to
approve  such  arrangements  and  (b)  completes  and  executes  all  reasonable
questionnaires,   powers  of  attorney,   underwriting   agreements,   hold-back
agreements letters and other documents  customarily  required under the terms of
such underwriting arrangements.  Notwithstanding the foregoing, (x) the Investor
shall not be required to make any  representations  or  warranties  except those
which relate solely to the Investor and its intended method of distribution, and
(y) the  liability of the Investor to any  underwriter  under such  underwriting
agreement will be limited to liability  arising from  misstatements or omissions
regarding  the  Investor and its intended  method of  distribution  and any such
liability  shall not exceed an amount  equal to the amount of net  proceeds  the
Investor derives from such registration;  provided, however, that in an offering
by the  Company in which the  Investor  requests  to be  included in a Piggyback
Registration, the Company shall use its best efforts to arrange the terms of the
offering  such  that the  provisions  set forth in  clauses  (x) and (y) of this
Section 3.3 are true.  Nothing in this  Section 3.3 shall be construed to create
any additional  rights regarding the  registration of Registrable  Securities in
any Person otherwise than as set forth herein.

            SECTION 3.4 HOLD-BACK AGREEMENTS.

            (a)  Restrictions  on Public  Distribution  by Holder of Registrable
Securities. Upon the written request of the managing underwriter or underwriters
of a Public Offering,  the Investor shall not effect any Public  Distribution of
such  securities,   or  any  securities  convertible  into  or  exchangeable  or
exercisable for such securities, including a sale pursuant to Rule 144 under the
Securities  Act  (except  as part of such  Public  Offering),  during the 14-day
period prior to, and during the 90-day period  following,  the offering date for
each Public Offering made pursuant to such registration statement (as identified
by such underwriter or underwriters or the Company in good faith). The foregoing
provisions  shall not apply to the  Investor  if the  Investor is  prevented  by
applicable  statute  or  regulation  from  entering  into  any  such  agreement;
provided,  however,  that the Investor shall  undertake not to effect any Public
Distribution of the class of securities  covered by such registration  statement
(except as part of such Underwritten  Offering) during such period unless it has
provided  60 days'  prior  written  notice of such  Public  Distribution  to the
managing underwriter.

                                       13
<PAGE>

            (b)  Restrictions on Public  Distribution by the Company and Others.
The Company  agrees and it shall use its  reasonable  best  efforts to cause its
Affiliates to agree: (1) not to effect any Public Distribution of any securities
being  registered  in  accordance  with  Article  II hereof,  or any  securities
convertible into or exchangeable or exercisable for such securities,  during the
14-day  period prior to, and during the 90-day  period  following,  the offering
date for each Public  Offering made pursuant to a registration  statement  filed
under  Article II hereof,  if requested in writing by the managing  underwriters
(except  as part  of such  Public  Offering  or  pursuant  to  registrations  in
connection with mergers,  acquisitions,  exchange offers,  subscription  offers,
dividend  reinvestment  plans or stock options or other employee benefit plans);
and (2) to use its reasonable best efforts to cause each holder of its privately
placed  Registrable  Securities that are issued by the Company at any time on or
after the date of this Agreement to agree not to effect any Public Distribution,
including  a sale  pursuant  to  Rule  144  under  the  Securities  Act,  of any
Registrable  Securities  during the period set forth in clause (1) above (except
as part of such Public Offering, if and to the extent permitted).

                                   ARTICLE IV

                        INDEMNIFICATION AND CONTRIBUTION

            SECTION 4.1  INDEMNIFICATION  BY THE COMPANY.  The Company agrees to
indemnify and hold harmless the Investor,  each person, if any, who controls the
Investor  (within the meaning of Section 15 of the  Securities Act or Section 20
of the Exchange Act) (hereinafter  referred to as a "controlling  person"),  the
respective officers, directors, partners, employees,  representatives and agents
of the Investor or any controlling  person,  solely in their  capacities as such
(each an "Indemnified  Holder"),  to the fullest extent lawful, from and against
any and  all  losses,  claims,  damages,  liabilities,  judgments,  actions  and
expenses  (including  without  limitation and as incurred,  reimbursement of all
reasonable costs of investigating, preparing, pursuing or defending any claim or
action, or any  investigation or proceeding by any governmental  agency or body,
commenced or threatened,  including the reasonable  fees and expenses of counsel
to any Indemnified  Holder) directly or indirectly  caused by, related to, based
upon,  arising  out of or in  connection  with any untrue  statement  or alleged
untrue statement of a material fact contained in any  Registration  Statement or
Prospectus (or any amendment or supplement thereto),  or any omission or alleged
omission  to state  therein a material  fact  required  to be stated  therein or
necessary to make the statements therein not misleading,  except insofar as such
losses,  claims,  damages,  liabilities  or  expenses  are  caused  by an untrue
statement or omission or alleged  untrue  statement or omission  that is made in
reliance  upon and in  conformity  with  information  relating  to the  Investor
furnished in writing to the Company by the Investor expressly for use therein.

            SECTION 4.2  INDEMNIFICATION  BY HOLDERS OF REGISTRABLE  SECURITIES.
The Investor agrees,  severally and not jointly,  to indemnify and hold harmless
the Company and its directors,  officers and any person controlling  (within the
meaning of Section 15 of the  Securities  Act or Section 20 of the Exchange Act)
the  Company  and  its  respective  officers,  directors,  partners,  employees,
representatives  and  agents  of each  such  person,  to the same  extent as the

                                       14
<PAGE>

foregoing  indemnity from the Company to each of the  Indemnified  Holders,  but
only with respect to losses, claims, damages,  liabilities,  judgments,  actions
and expenses (including without limitation and as incurred, reimbursement of all
reasonable costs of investigating, preparing, pursuing or defending any claim or
action, or any  investigation or proceeding by any governmental  agency or body,
commenced or threatened,  including the reasonable  fees and expenses of counsel
to the  Company)  directly or  indirectly  caused by,  related  to,  based upon,
arising out of or in  connection  with any untrue  statement  or alleged  untrue
statement  of a  material  fact  contained  in  any  Registration  Statement  or
Prospectus (or any amendment or supplement thereto),  or any omission or alleged
omission  to state  therein a material  fact  required  to be stated  therein or
necessary to make the statements therein not misleading, to the extent, but only
to the extent,  that such untrue  statement  or  omission  is  contained  in any
information  relating  to the  Investor  furnished  in writing  by the  Investor
expressly  for use in any  Registration  Statement  or  Prospectus.  In case any
action or  proceeding  shall be brought  against the Company or its directors or
officers or any such  controlling  person in respect of which  indemnity  may be
sought against the Investor, the Investor shall have the rights and duties given
the Company,  and the Company or its  directors or officers or such  controlling
person shall have the rights and duties  given to the Investor by the  preceding
paragraph.  The  Investor  also  agrees  to  indemnify  and hold  harmless  each
underwriter participating in the distribution on substantially the same basis as
that of the  indemnification  of the Company provided in this Section 4.2. In no
event shall the  liability of the  Investor  hereunder be greater in amount than
the dollar amount of the proceeds  received by the Investor upon the sale of the
Registrable  Securities  giving  rise to such  indemnification  obligation.  The
Company  shall be entitled to receive  indemnities  from  underwriters,  selling
brokers,   dealer  managers  and  similar  securities   industry   professionals
participating  in the  distribution,  to the same extent as provided  above with
respect to information so furnished in writing by such Persons  specifically for
inclusion in any Registration Statement or Prospectus.

            SECTION  4.3  CONDUCT  OF  INDEMNIFICATION  PROCEEDINGS.  Any Person
entitled to indemnification hereunder (an "Indemnified Party") will (i) promptly
give notice of any claim,  action or proceeding  (including any  governmental or
regulatory  investigation  or proceeding) or the commencement of any such action
or  proceeding  to the  Person  against  whom such  indemnity  may be sought (an
"Indemnifying  Party");  provided that the failure to give such notice shall not
relieve the  Indemnifying  Party of its  obligations  pursuant to this Agreement
except to the extent that such  Indemnifying  Party has been  prejudiced  in any
material  respect by such  failure,  and (ii) permit the  Indemnifying  Party to
assume the defense of such claim with counsel  reasonably  satisfactory  to such
Indemnified  Party;  provided that the Indemnified Party shall have the right to
employ separate  counsel and  participate in the defense of such claim,  but the
fees and  expenses of such counsel  shall be at the expense of such  Indemnified
Party  unless  (a) the  Indemnifying  Party has  agreed to pay for such fees and
expenses,  or (b) the Indemnifying Party shall have failed to assume the defense
of such claim and employ counsel  reasonably  satisfactory  to such  Indemnified
Party or (c) in the reasonable  judgment of such Indemnified  Party,  based upon
advice of its counsel, a conflict of interest may exist between such Indemnified
Party and the  Indemnifying  Party  with  respect to such  claims  which make it
unreasonable for the defense of such claim on behalf of the Indemnified Party to
be conducted by the  Indemnifying  Party.  If such defense is not assumed by the
Indemnifying  Party, the Indemnifying Party will not be subject to any liability
for any settlement of any such claim effected without the  Indemnifying  Party's

                                       15
<PAGE>

prior written  consent,  which consent shall not be unreasonably  withheld.  The
Indemnifying  Party  shall not be liable for any  settlement  of any  proceeding
effected  without its written  consent,  but if settled  with such consent or if
there be a final judgment for the plaintiff,  the  Indemnifying  Party agrees to
indemnify  and hold  harmless any  Indemnified  Party from and against any loss,
claim damage, liability or expense by reason of any settlement of any such claim
or action.  No  Indemnifying  Party shall,  without the prior written consent of
each Indemnified Party, settle or compromise or consent to the entry of judgment
in or  otherwise  seek to terminate  any pending or  threatened  action,  claim,
litigation or proceeding in respect of which indemnification or contribution may
be sought hereunder  (whether or not any Indemnified  Party is a party thereto),
unless  such  settlement,   compromise,   consent  or  termination  includes  an
unconditional  release of each Indemnified  Party from all liability arising out
of such action,  claim,  litigation or proceeding.  An Indemnifying Party who is
not entitled  to, or elects not to,  assume the defense of the claim will not be
obligated  to pay the fees and expenses of more than one counsel for all parties
indemnified by such Indemnifying Party with respect to such claim, unless in the
reasonable  judgment of any  Indemnified  Party a conflict of interest may exist
between  such  Indemnified  Party and any other such  Indemnified  Parties  with
respect to such claim which make it  unreasonable  for the defense of such claim
on behalf of both such Indemnified  Parties to be conducted by a single counsel,
in which event the  Indemnifying  Party shall be  obligated  to pay the fees and
expenses of such additional counsel.

            SECTION 4.4  CONTRIBUTION.  If the  indemnification  provided for in
this Article IV is unavailable to an Indemnified  Party (other than by reason of
exceptions  provided  in those  Sections)  in  respect  of any  losses,  claims,
damages,  liabilities  or expenses  referred to  therein,  then each  applicable
Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall have a
joint and  severable  obligation  to contribute to the amount paid or payable by
such Indemnified Party as a result of such losses, claims, damages,  liabilities
or expenses in such  proportion as is  appropriate to reflect the relative fault
of the Indemnifying Party, on the one hand, and of the Indemnified Party, on the
other,  in connection  with the  statements or omissions  which resulted in such
losses, claims, damages,  liabilities or expenses, as well as any other relevant
equitable  considerations.  The relative fault of the Indemnifying Party, on the
one hand, and of the  Indemnified  Party,  on the other,  shall be determined by
reference to, among other things, whether the untrue or alleged untrue statement
of a  material  fact  or the  omission  to  state a  material  fact  relates  to
information  supplied by the Indemnifying  Party or by the Indemnified Party and
the parties' relative intent,  knowledge,  access to information and opportunity
to correct or prevent such statement or omission.  The amount paid or payable by
a party as a result of the losses,  claims,  damages,  liabilities  and expenses
referred  to above shall be deemed to include,  subject to the  limitations  set
forth in the  second  paragraph  of  Section  4.1,  any  legal or other  fees or
expenses  reasonably  incurred by such party in connection with investigating or
defending any action or claim.

            The amount  paid or payable by an  indemnified  party as a result of
the  losses,  claims,  damages,  liabilities  or  expenses  referred  to in  the
immediately  preceding  paragraph  shall be deemed to  include,  subject  to the
limitations set forth above, any legal or other expenses  reasonably incurred by
such  indemnified  party in connection with  investigating or defending any such
action or  claim.  Notwithstanding  the  provisions  of this  Section  4.4,  the
Investor  shall not be required to contribute,  in the aggregate,  any amount in
excess of the amount by which the net  proceeds  received by the  Investor  with
respect to the Registrable Securities exceeds the greater of (A) the amount paid
by the Investor for its Registrable Securities and (B) the amount of any damages

                                       16
<PAGE>

which the Investor has  otherwise  been required to pay by reason of such untrue
or alleged untrue statement or omission or alleged omission. No person guilty of
fraudulent  misrepresentation  (within  the  meaning  of  Section  11(f)  of the
Securities  Act) shall be entitled to  contribution  from any person who was not
guilty of such fraudulent misrepresentation.

            For  purposes of this  Article IV,  each  controlling  person of the
Investor shall have the same rights to  contribution  as the Investor,  and each
officer,  director,  and person,  if any, who  controls  the Company  within the
meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act
shall have the same rights to contribution as the Company,  subject in each case
to the limitations set forth in the immediately  preceding paragraph.  Any party
entitled to contribution will,  promptly after receipt of notice of commencement
of any action, suit or proceeding against such party in respect of which a claim
for contribution may be made against another party or parties under this Article
IV, notify such party or parties from whom  contribution may be sought,  but the
omission  to so notify  such party or  parties  shall not  relieve  the party or
parties from who  contribution  may be sought from any obligation it or they may
have under this  Article IV or  otherwise  except to the extent that it has been
prejudiced in any material respect by such failure. No party shall be liable for
contribution  with  respect to any action or claim  settled  without its written
consent;  provided,  however,  that such  written  consent was not  unreasonably
withheld.

            SECTION 4.5 ADDITIONAL  INDEMNITY.  The indemnity,  contribution and
expense reimbursement  obligations under this Article IV shall be in addition to
any liability each  Indemnifying  Party may otherwise have;  provided,  however,
that any  payment  made by the Company  which  results in an  Indemnified  Party
receiving from any source(s) indemnification,  contribution or reimbursement for
an amount in excess of the actual loss,  liability  or expense  incurred by such
Indemnified  Party,  shall be refunded to the Company by the  Indemnified  Party
receiving such excess payment.

                                    ARTICLE V

                                  MISCELLANEOUS

            SECTION 5.1 RULE 144.  The  Company  agrees it will file in a timely
manner all reports required to be filed by it pursuant to the Securities Act and
the Exchange Act and the rules and regulations adopted by the SEC thereunder and
will take such further  action as the Investor may  reasonably  request in order
that  the  Investor  may  effect  sales  of   Registrable   Securities   without
registration  within the limitations of the exemptions  provided by Rule 144, as
such Rule may be amended from time to time,  or any similar  rule or  regulation
hereafter adopted by the SEC. At any reasonable time and upon the request of the
Investor,  the Company will furnish the Investor with such information as may be
necessary  to enable the  Investor  to effect  sales of  Registrable  Securities
pursuant to Rule 144 under the Securities Act and will deliver to the Investor a
written  statement  as to  whether it has  complied  with such  information  and
requirements.

            SECTION 5.2 SPECIFIC PERFORMANCE. The Investor, in addition to being
entitled to exercise  all rights  provided  herein or granted by law,  including
recovery  of  liquidated  or  other  damages,   will  be  entitled  to  specific
performance of its rights under this Agreement. The Company agrees that monetary

                                       17
<PAGE>

damages would not be adequate  compensation for any loss incurred by reason of a
breach by it of the  provisions of this Agreement and hereby agrees to waive the
defense  in any action for  specific  performance  that a remedy at law would be
adequate.

            SECTION 5.3 OTHER  AGREEMENTS.  The Company will not on or after the
date of this  Agreement  enter into any agreement with respect to its securities
that is  inconsistent  with the rights granted to the Investor in this Agreement
or otherwise  conflicts with the provisions hereof except for similar agreements
entered into with Equivalent Rights Holders.

            SECTION 5.4 CHARTER AMENDMENTS AFFECTING THE COMPANY'S COMMON STOCK.
The Company will not amend its Certificate of  Incorporation in any respect that
would materially and adversely affect the rights of the Investor hereunder.

            SECTION 5.5 AMENDMENTS AND WAIVERS. This Agreement may be amended by
the parties  hereto by an instrument in writing  signed by the parties hereto at
any time prior to closing.

            SECTION 5.6 NOTICES.  Unless otherwise  provided herein, any notice,
request, instruction or other document to be given hereunder by any party to the
others shall be made in writing, by hand-delivery, telegraph, telex, telecopier,
registered  first-class mail or air courier  guaranteeing  overnight delivery as
follows:

                  If to the Investor:

                        Mykonos 6420 LP
                        5449 Sherry Lane, Suite 1900
                        Dallas, Texas  75225
                        Attention: Heather Kreager

                  With a copy to:

                        Mykonos 6420 LP
                        5420 LBJ Freeway
                        Two Lincoln Centre, Suite 1450
                        Dallas, Texas 75240
                        Attention: Bruce Leadbetter

                  If to the Company:

                        iSecureTrac Corp.
                        5078 S. 111th Street
                        Omaha, NE  68137
                        Attention:  Tom Wharton

                                       18
<PAGE>

                  With a copy to:

                        Kutak Rock LLP
                        1650 Farnam Street
                        Omaha, NE 68102
                        Attention: Steven P. Amen

or to such  other  place and with such  other  copies  as any party  hereto  may
designate  as to itself by written  notice to the others.  All such  notices and
communications shall be deemed to have been duly given: at the time delivered by
hand, if personally  delivered;  five Business Days after being deposited in the
mail, postage prepaid, if mailed;  when answered back, if telexed;  when receipt
acknowledged, if telecopied: and on the next Business Day if timely delivered to
an air courier guaranteeing overnight delivery.

            SECTION 5.7  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, including without limitation and without the need for an express
assignment,  subsequent  holders of  Registrable  Securities or of the Warrants,
provided  that the Company may not assign its rights or  obligations  under this
Agreement  to any other  person or entity  without  the  written  consent of the
Investor.

            SECTION  5.8  COUNTERPARTS.  This  Agreement  may be executed in any
number of counterparts and by the parties hereto in separate 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.

            SECTION  5.9  HEADINGS.  The  headings  in  this  Agreement  are for
convenience  of  reference  only and  shall not limit or  otherwise  affect  the
meaning hereof.

            SECTION 5.10 GOVERNING LAW. This Agreement  shall be governed by and
construed in accordance  with the laws of the State of Texas,  without regard to
the choice of law provisions thereof.

            SECTION 5.11 SEVERABILITY.  In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstance,  is
held   invalid,   illegal  or   unenforceable,   the   validity,   legality  and
enforceability of any such provision in every other respect and of the remaining
provisions contained herein shall not be affected or impaired thereby. Upon such
determination that any term or other provision is invalid,  illegal or incapable
of being  enforced,  the parties hereto shall  negotiate in good faith to modify
this Agreement so as to effect the original  intent of the parties as closely as
possible  in a  mutually  acceptable  manner  in  order  that  the  transactions
contemplated  hereby be  consummated as originally  contemplated  to the fullest
extent possible.

            SECTION  5.12 ENTIRE  AGREEMENT.  This  Agreement is intended by the
parties as a final  expression of their  agreement and intended to be a complete
and exclusive statement of the agreement and understanding of the parties hereto
in respect of the subject matter  contained  herein.  There are no restrictions,

                                       19
<PAGE>

promises, warranties or undertakings,  other than those set forth or referred to
herein with  respect to the  registration  rights  granted by the  Company  with
respect to the  Registrable  Securities.  This  Agreement  supersedes  all prior
agreements and  understandings  between the parties with respect to such subject
matter.

            SECTION  5.13  PRONOUNS.  Whenever  the  context  may  require,  any
pronouns used herein shall be deemed also to include the  corresponding  neuter,
masculine or feminine forms.

            SECTION 5.14 ATTORNEY'S FEES. In any action or proceeding brought to
enforce any provision of this Agreement,  the successful party shall be entitled
to recover reasonable  attorney's fees in addition to its costs and expenses and
any other available remedy.

            SECTION 5.15 FURTHER ASSURANCES. Each party shall cooperate and take
such action as may be  reasonably  requested by another  party in order to carry
out  the  provisions  and  purposes  of  this  Agreement  and  the  transactions
contemplated hereby.

            SECTION 5.16  TERMINATION.  Unless  sooner  terminated in accordance
with its  terms or as  otherwise  herein  provided,  including  specifically  in
Section 2.3(a),  this Agreement shall terminate upon the earlier to occur of (i)
the mutual agreement by the parties hereto, (ii) the Investor ceasing to own any
Registrable Securities, or (iii) the tenth anniversary of the Closing.

                            (signature page follows)

                                       20
<PAGE>

            IN WITNESS  HEREOF,  the parties  hereto have executed and delivered
this Agreement as of the date first written above.

                                    COMPANY:

                                    ISECURETRAC CORP.

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

                                    INVESTOR:

                                    MYKONOS 6420 LP

                                    By:  Sponsor Investments LLC
                                    Its: General Partner

                                    By:  Herakles Investments, Inc.
                                    Its: Manager

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

                                       21

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