Document:

Exhibit 10(g)

                          SECURITIES PURCHASE AGREEMENT

                  SECURITIES  PURCHASE AGREEMENT (the "Agreement"),  dated as of
January  21,  2000,  by  and  among  Capita  Research  Group,   Inc.,  a  Nevada
corporation,  with  headquarters  located at 591 Skippack Pike,  Suite 300, Blue
Bell,  Pennsylvania  19422  (the  "Company"),  and the  investors  listed on the
Schedule of Buyers attached hereto  (individually,  a "Buyer" and  collectively,
the "Buyers").

                  WHEREAS:

                  A. The Company  and the Buyers are  executing  and  delivering
this  Agreement in reliance  upon the  exemption  from  securities  registration
afforded by Rule 506 of  Regulation D  ("Regulation  D") as  promulgated  by the
United  States  Securities  and  Exchange   Commission  (the  "SEC")  under  the
Securities Act of 1933, as amended (the "1933 Act");

                  B. The Company has authorized the issuance of up to 260,000 of
the Company's units (the "Units"),  each unit consisting of (i) one share of the
Company's common stock, $.001 par value per share (the "Common Stock"), (ii) one
of the Company's A Common Stock  Purchase  Warrants to purchase one share of the
Company's  Common  Stock  exercisable  at a purchase  price of $.50 per share of
Common Stock (the "A Warrants"),  in the form attached  hereto as Exhibit A, and
(iii) one of the  Company's B Common  Stock  Purchase  Warrants to purchase  one
share of the Company's Common Stock exercisable at a purchase price of $1.00 per
share of  Common  Stock,  in the  form  attached  hereto  as  Exhibit  B (the "B
Warrants",  and together with the A Warrants,  the  "Warrants")  (such shares of
Common Stock issued upon exercise of the Warrants are hereinafter referred to as
the "Warrant  Shares",  and together with the Units,  Common Stock and Warrants,
the "Securities");

                  C. The Buyers wish to purchase,  upon the terms and conditions
stated in this  Agreement,  an aggregate of $130,000 of Units in the  respective
amounts set forth opposite each Buyer's name on the Schedule of Buyers; and

                  D.  Contemporaneously  with the execution and delivery of this
Agreement, the parties hereto are executing and delivering a Registration Rights
Agreement in the form  attached  hereto as Exhibit C (the  "Registration  Rights
Agreement")  pursuant  to which  the  Company  has  agreed  to  provide  certain
registration rights under the 1933 Act and the rules and regulations promulgated
thereunder, and applicable state securities laws.

                  NOW,  THEREFORE,  the Company and the Buyers  hereby  agree as
follows:

                  1.       PURCHASE AND SALE OF UNITS

                           a.       Purchase   of   Units.    Subject   to   the
satisfaction  (or waiver) of the conditions set forth in Sections 6 and 7 below,
the  Company  shall issue and sell to the Buyers and the Buyers  shall  purchase
from the Company an aggregate  of 260,000  Units in the  respective  amounts set
forth  opposite  each Buyer's name on the Schedule of Buyers at the Closing (the
"Closing"). The per unit purchase price (the "Purchase Price") of the Units

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shall be $.50 or an aggregate  purchase  price of $130,000.  On the Closing Date
(as  defined  below),  the  Company  shall issue and deliver to each Buyer (i) a
stock certificate(s)  representing such number of the shares of Common Stock and
(ii) certificates  representing such number of A Warrants and B Warrants,  which
such Buyer is then  purchasing  (as indicated  opposite such Buyer's name on the
Schedule of Buyers),  duly  executed on behalf of the Company and  registered in
the name of such Buyer or its designee (the "Stock Certificates").

                           b.       Closing  Date.  The  date  and  time  of the
Closing (the "Closing Date") shall be 1:00 p.m. Eastern Standard Time on January
21, 2000,  subject to notification of satisfaction (or waiver) of the conditions
to the  Closing  set forth in  Sections  6 and 7 below (or such later date as is
mutually  agreed to by the Company and the Buyers).  The Closing  shall occur on
the Closing Date at the offices of Torys,  237 Park Avenue,  New York,  New York
10017.

                           c.       Form of Payment.  On the Closing Date,  each
Buyer shall pay the Purchase Price to the Company for the Units to be issued and
sold to such Buyer at the Closing,  by wire  transfer of  immediately  available
funds in accordance  with the Company's  written wire  instructions  provided in
writing to the Buyers prior to the Closing Date.

                  2.       BUYER'S REPRESENTATIONS AND WARRANTIES.
                           --------------------------------------

                  Each Buyer represents and warrants with respect to only itself
that:

                           a.       Investment   Purpose.   Such  Buyer  (i)  is
purchasing  the Units  consisting  of Common  Stock and  Warrants  and (ii) upon
exercise of the Warrants, will acquire the Warrant Shares, then issuable for its
own  account  for  investment  only and not with a present  view  towards or for
resale in  connection  with,  the public sale or  distribution  thereof,  except
pursuant to sales registered or exempted under the 1933 Act; provided,  however,
that by making the representations herein, such Buyer does not agree to hold any
Securities  for any minimum or other  specific  term and  reserves  the right to
dispose  of the  Securities  at any time in  accordance  with or  pursuant  to a
registration statement or an exemption under the 1933 Act.

                           b.       Accredited Investor Status. Such Buyer is an
"accredited investor" as that term is defined in Rule 501(a) of Regulation D.

                           c.       Reliance   on    Exemptions.    Such   Buyer
understands  that the Units  are being  offered  and sold to it in  reliance  on
specific exemptions from the registration  requirements of United States federal
and state securities laws and that the Company is relying in part upon the truth
and  accuracy  of,  and  such  Buyer's  compliance  with,  the  representations,
warranties,  agreements,  acknowledgments  and  understandings of such Buyer set
forth herein in order to determine the  availability  of such exemptions and the
eligibility of such Buyer to acquire the Units.

                           d.       Information. Such Buyer and its advisors, if
any, have been furnished with all materials  relating to the business,  finances
and  operations of the Company and  materials  relating to the offer and sale of
the Units which have been requested by such Buyer. Such Buyer and its advisors,

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if any,  have been  afforded the  opportunity  to ask  questions of the Company.
Neither such inquiries nor any other due diligence  investigations  conducted by
such Buyer or its advisors,  if any, or its representatives  shall modify, amend
or  affect  such  Buyer's  right to rely on the  Company's  representations  and
warranties contained in Section 3 below.

                           e.       No   Governmental    Review.    Such   Buyer
understands  that  no  United  States  federal  or  state  agency  or any  other
government or governmental  agency has passed on or made any  recommendation  or
endorsement of the Units or the fairness or suitability of the investment in the
Securities nor have such  authorities  passed upon or endorsed the merits of the
offering of the Units.

                           f.       Transfer or Resale.  Such Buyer  understands
that except as provided in the Registration Rights Agreement: (i) the Securities
have not been  and are not  being  registered  under  the 1933 Act or any  state
securities laws, and may not be offered for sale, sold,  assigned or transferred
unless  (A)  subsequently  registered  thereunder,  (B) such  Buyer  shall  have
delivered to the Company an opinion of counsel, in a generally  acceptable form,
to the effect that such  Securities to be sold,  assigned or transferred  may be
sold,  assigned or transferred  pursuant to an exemption from such registration,
or (C) such securities can be sold, assigned or transferred pursuant to Rule 144
promulgated  under the 1933 Act (or a successor rule thereto) ("Rule 144"); (ii)
any sale of such  securities  made in  reliance  on Rule 144 may be made only in
accordance  with  the  terms  of  Rule  144  and  further,  if  Rule  144 is not
applicable,  any  resale of such  securities  under  circumstances  in which the
seller  (or the  person  through  whom the sale is made)  may be deemed to be an
underwriter  (as that term is  defined in the 1933 Act) may  require  compliance
with some other exemption under the 1933 Act or the rules and regulations of the
SEC thereunder;  and (iii) neither the Company nor any other person is under any
obligation  to  register  such  securities  under  the  1933  Act or  any  state
securities  laws or to comply  with the terms and  conditions  of any  exemption
thereunder.

                           g.       Legends.  Such  Buyer  understands  that the
certificates or other instruments representing the Warrants and, until such time
as the sale of the Common Stock or Warrant Shares have been registered under the
1933  Act as  contemplated  by the  Registration  Rights  Agreement,  the  stock
certificates or other documents representing the Common Stock and Warrant Shares
except as set forth below,  shall bear a restrictive legend in substantially the
following form (and a stop-transfer order may be placed against transfer of such
certificates):

         THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
         UNDER THE  SECURITIES  ACT OF 1933,  AS AMENDED,  OR  APPLICABLE  STATE
         SECURITIES  LAWS. THE SECURITIES  HAVE BEEN ACQUIRED FOR INVESTMENT AND
         MAY NOT BE OFFERED  FOR SALE,  SOLD,  TRANSFERRED  OR  ASSIGNED  IN THE
         ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER
         THE SECURITIES ACT OF 1933, AS AMENDED,  OR APPLICABLE STATE SECURITIES
         LAWS, OR AN OPINION OF COUNSEL,  IN A GENERALLY  ACCEPTABLE  FORM, THAT
         REGISTRATION  IS  NOT  REQUIRED  UNDER  SAID  ACT OR  APPLICABLE  STATE
         SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.

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The legend  set forth  above  shall be removed  and the  Company  shall  issue a
certificate without such legend to the holder of any Securities upon which it is
stamped,  if (i) any such Securities are registered for sale under the 1933 Act,
(ii) in connection  with a sale  transaction,  such holder  provides the Company
with an opinion of counsel, in a generally acceptable form, to the effect that a
public sale, assignment or transfer of any of the Securities may be made without
registration  under the 1933 Act,  or (iii)  any of the  Securities  can be sold
pursuant  to Rule 144  without any  restriction  as to the number of  securities
acquired as of a particular  date that can then be immediately  sold. Each Buyer
acknowledges,  covenants and agrees to sell any of the Securities represented by
a certificate(s) from which the legend has been removed,  only pursuant to (i) a
registration  statement  effective under the 1933 Act, or (ii) advice of counsel
that such sale is exempt  from  registration  required  by Section 5 of the 1933
Act. In the event the above  legend is removed from any of the  Securities,  the
Company may,  upon  reasonable  advance  notice to the holder,  require that the
above  legend  be  placed  on any of the  Securities  that  cannot  then be sold
pursuant to an  effective  registration  statement or Rule 144(k) under the 1933
Act (or any successor rule thereto).

                           h.       Authorization;  Enforcement.  This Agreement
has been duly and validly  authorized,  executed and delivered on behalf of such
Buyer  and is a valid  and  binding  agreement  of  such  Buyer  enforceable  in
accordance with its terms, subject as to enforceability to general principles of
equity and to applicable  bankruptcy,  insolvency,  reorganization,  moratorium,
liquidation  and other  similar laws  relating to, or affecting  generally,  the
enforcement of applicable creditors' rights and remedies.

                           i.       Residency.  Such Buyer is a resident of that
country specified in the Schedule of Buyers.

                  3.       REPRESENTATIONS AND WARRANTIES OF THE COMPANY.
                           ---------------------------------------------

                           The Company  represents  and  warrants to each of the
Buyers that:

                           a.       Organization and Qualification.  The Company
and its subsidiaries are corporations  duly incorporated and validly existing in
good standing under the laws of the jurisdiction in which they are incorporated,
and have the requisite  corporate power to own their  properties and to carry on
their business as now being conducted.  Each of the Company and its subsidiaries
is  duly  qualified  as a  foreign  corporation  to do  business  and is in good
standing in every  jurisdiction in which the nature of the business conducted by
it makes such qualification necessary,  except to the extent that the failure to
be so qualified or be in good standing would not have a Material Adverse Effect.
"Material Adverse Effect" means any material adverse effect on (i) the business,
properties,  operations,  condition  (financial  or  otherwise),  or  results of
operations of the Company and its  subsidiaries,  taken as a whole,  (ii) on the
ability  of  the  Company  to  perform  its  obligations  hereunder,  under  the
Registration Rights Agreement or under the other agreements or instruments to be
entered  into or  filed in  connection  herewith  or  therewith,  or  (iii)  the
Securities.

                           b.       Authorization;  Enforcement; Compliance with
Other  Instruments.  (i) The  Company  has the  requisite  corporate  power  and
authority to enter into and perform its obligations  under this  Agreement,  the

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Warrants and the  Registration  Rights  Agreement,  (collectively,  the "Closing
Agreements")  to issue,  sell and perform its  obligations  with  respect to the
Units and Warrant  Shares in  accordance  with the terms hereof and the Warrants
and to issue the Warrant  Shares upon  exercise of the  Warrants,  in accordance
with the terms and  conditions of the Warrants,  (ii) the execution and delivery
of the  Closing  Agreements  by the Company  and the  consummation  by it of the
transactions contemplated hereby and thereby, including, without limitation, the
issuance of the Common Stock and the Warrants and the  reservation  for issuance
and the issuance of the Warrant  Shares upon  exercise of the Warrants have been
duly  authorized by the Company's  Board of Directors and no further  consent or
authorization  is  required  by the  Company,  its  Board  of  Directors  or its
shareholders, (iii) the Closing Agreements have been duly executed and delivered
by the Company, and (iv) the Closing Agreements  constitute the legal, valid and
binding obligations of the Company enforceable against the Company in accordance
with  their  terms,  except as such  enforceability  may be  limited  by general
principles  of  equity or  applicable  bankruptcy,  insolvency,  reorganization,
moratorium, liquidation or similar laws relating to, or affecting generally, the
enforcement of creditors' rights and remedies.

                           c.       Capitalization  and Indebtedness.  As of the
date hereof, the authorized capital stock of the Company consists of 100,000,000
shares of Common Stock,  of which as of the date hereof,  21,295,946  shares are
issued and outstanding and no shares of Preferred Stock. All of such outstanding
shares have been validly issued and are fully paid and nonassessable.  No shares
of Common Stock are subject to preemptive  rights or any other similar rights or
any liens or  encumbrances  suffered  or  permitted  by the  Company.  Except as
disclosed in Schedule 3(c), as of the date hereof,  (i) there are no outstanding
options,  warrants,  scrip,  rights to subscribe to, calls or commitments of any
character  whatsoever relating to, or securities or rights convertible into, any
shares of capital stock of the Company or any of its subsidiaries, or contracts,
commitments,  understandings  or arrangements by which the Company or any of its
subsidiaries is or may become bound to issue additional  shares of capital stock
of the Company or any of its subsidiaries or options, warrants, scrip, rights to
subscribe to, calls or commitments of any character  whatsoever  relating to, or
securities  or rights  convertible  into,  any  shares of  capital  stock of the
Company  or  any  of its  subsidiaries,  (ii)  there  are  no  outstanding  debt
securities,  notes,  credit  agreements,  or  other  agreements,   documents  or
instruments evidencing indebtedness of the Company or any of its subsidiaries or
by which the Company or any of its subsidiaries is or may become bound and (iii)
there are no  agreements or  arrangements  under which the Company or any of its
subsidiaries is obligated to register the sale of any of their  securities under
the 1933 Act (except the Registration Rights Agreement). There are no securities
or  instruments  containing  anti-dilution  or similar  provisions  that will be
triggered  by the  issuance  of  any of the  Securities  as  described  in  this
Agreement. The Company has furnished to the Buyer true and correct copies of the
Company's  Certificate of  Incorporation as amended and as in effect on the date
hereof (the "Certificate of  Incorporation"),  and the Company's By-laws,  as in
effect on the date  hereof  (the  "By-laws"),  and the  terms of all  securities
convertible  into or exercisable for Common Stock and the material rights of the
holders thereof in respect thereto.

                           d.       Issuance of  Securities.  The Securities are
duly  authorized and, upon issuance in accordance with the terms hereof shall be
(i) validly  issued,  fully paid and  non-assessable,  (ii) free from all taxes,
liens and charges with respect to the issue thereof and are not and shall not be
subject to preemptive  rights or other  similar  rights of  stockholders  of the
Company.  Seven hundred eighty  thousand  (780,000)  shares of Common Stock have
been duly authorized and reserved for issuance in connection with the Units.

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                           e.      No Conflicts.  The  execution,  delivery and
performance of the Closing Agreements by the Company and the consummation by the
Company of the transactions contemplated hereby and thereby (including,  without
limitation,  the issuance of the Securities)  will not (i) result in a violation
of the  Certificate of  Incorporation  or By-laws or (ii) except as disclosed in
Schedule 3(e),  violate or conflict with, or result in a breach of any provision
of, or  constitute  a default (or an event which with notice or lapse of time or
both would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any material agreement, indenture or
instrument to which the Company or any of its subsidiaries is a party, or result
in a  violation  of  any  law,  rule,  regulation,  order,  judgment  or  decree
(including  federal and state  securities laws and regulations and the rules and
regulations  of the  principal  market or exchange on which the Common  Stock is
traded or listed)  applicable  to the Company or any of its  subsidiaries  or by
which any property or asset of the Company or any of its  subsidiaries  is bound
or affected.  Neither the Company nor its  subsidiaries  are in violation of any
term of or in default under its Certificate of Incorporation or By-laws or their
organizational charter or by-laws,  respectively, or in violation of any term of
or in default under any contract, agreement, mortgage, indebtedness,  indenture,
instrument,  judgment,  decree  or  order  or any  statute,  rule or  regulation
applicable to the Company or its subsidiaries, except for violations or defaults
which  would not,  individually  or in the  aggregate,  have a Material  Adverse
Effect.  The business of the Company and its subsidiaries is not being conducted
in violation of any law,  ordinance or  regulation of any  governmental  entity,
which  violations,  individually  or in the  aggregate,  would  have a  Material
Adverse  Effect.  Except as  specifically  contemplated by this Agreement and as
required  under the 1933 Act, the Company is not required to obtain any consent,
authorization or order of, or make any filing or registration with, any court or
governmental or regulatory or self-regulatory agency in order for it to execute,
deliver  or  perform  any of its  obligations  under  or  contemplated  by  this
Agreement,  the Registration Rights Agreement or the Warrants in accordance with
the terms hereof or thereof. Except as disclosed in Schedule 3(e), all consents,
authorizations,  orders, filings and registrations which the Company is required
to obtain  pursuant to the preceding  sentence have been obtained or effected on
or prior to the date hereof. The Company and its subsidiaries are unaware of any
facts or circumstances which might give rise to any of the foregoing.

                           f.       SEC Documents;  Financial Statements.  Since
December  31,  1997,  the  Company  has filed  all  reports,  schedules,  forms,
statements and other documents  required to be filed by it with the SEC pursuant
to the reporting requirements of the Securities Exchange Act of 1934, as amended
(the "1934  Act") (all of the  foregoing  filed prior to the date hereof and all
exhibits  included  therein and financial  statements and schedules  thereto and
documents incorporated by reference therein being hereinafter referred to as the
"SEC  Documents").  The Company has delivered or made available to each Buyer or
its  representative  true and complete copies of the SEC Documents and agrees to
deliver or make available to each Buyer or its representatives true and complete
copies of any  additional SEC Documents,  upon request.  As of their  respective
dates, the SEC Documents complied in all material respects with the requirements
of the 1934 Act and the rules and regulations of the SEC promulgated  thereunder
applicable to the SEC Documents, and none of the SEC Documents, at the time they

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were filed with the SEC,  contained  any untrue  statement of a material fact or
omitted to state a material fact  required to be stated  therein or necessary in
order to make the statements  therein, in light of the circumstances under which
they were made, not  misleading.  As of their  respective  dates,  the financial
statements of the Company  included in the SEC Documents  complied as to form in
all material respects with applicable accounting  requirements and the published
rules and regulations of the SEC with respect thereto. Such financial statements
have been prepared in accordance with generally accepted accounting  principles,
consistently applied during the periods involved (except (i) as may be otherwise
indicated in such financial statements or the notes thereto, or (ii) in the case
of unaudited interim statements, to the extent they may exclude footnotes or may
be condensed or summary  statements) and fairly present in all material respects
the financial position of the Company as of the dates thereof and the results of
its operations and cash flows for the periods then ended  (subject,  in the case
of unaudited statements, to normal year-end audit adjustments).

                           g.       Absence  of  Certain   Changes.   Except  as
expressly set forth in Schedule 3(g) or as otherwise  disclosed in SEC Documents
filed after  December 31,  1998,  since  December  31,  1998,  there has been no
material  adverse  change and no material  adverse  development in the business,
properties,  operations,  condition  (financial  or  otherwise),  or  results of
operations of the Company and its subsidiaries taken as a whole. The Company has
not taken any steps,  and does not currently  expect to take any steps,  to seek
protection  pursuant  to  any  bankruptcy  law  nor  does  the  Company  or  its
subsidiaries  have any knowledge or reason to believe that its creditors  intend
to initiate involuntary bankruptcy proceedings.

                           h.       Absence of  Litigation.  Except as set forth
in Schedule 3(h), there is no action, suit, proceeding, inquiry or investigation
before  or by  any  court,  public  board,  government  agency,  self-regulatory
organization  or body pending or, to the  knowledge of the Company or any of its
subsidiaries, threatened against or affecting the Company or its subsidiaries or
their  respective  directors  or  officers,  or the  Common  Stock,  wherein  an
unfavorable  decision,  ruling or finding would individually or in the aggregate
have a Material Adverse Effect.

                           i.       Acknowledgment Regarding Buyers' Purchase of
the Securities.  The Company  acknowledges and agrees that each of the Buyers is
acting  solely in the  capacity of arm's length  purchaser  with respect to this
Agreement  and  the  transactions   contemplated  hereby.  The  Company  further
acknowledges  that each Buyer is not acting as a financial  advisor or fiduciary
of the Company (or in any similar  capacity)  with respect to this Agreement and
the transactions  contemplated  hereby and any advice given by any of the Buyers
or any of their  respective  representatives  or agents in connection  with this
Agreement and the transactions  contemplated hereby is merely incidental to such
Buyer's purchase of the Securities. The Company further represents to each Buyer
that the Company's  decision to enter into this  Agreement has been based solely
on the independent evaluation by the Company and its representatives.

                           j.       No   General   Solicitation.   Neither   the
Company,  nor any of its  affiliates,  nor any  person  acting  on its or  their
behalf, has engaged in any form of general  solicitation or general  advertising
(within the meaning of Regulation D under the 1933 Act) in  connection  with the
offer or sale of any of the Securities offered hereby.

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                           k.       No Integrated Offering. Neither the Company,
nor any of its  affiliates,  nor any person  acting on its or their  behalf has,
directly or  indirectly,  made any offers or sales of any  security or solicited
any  offers  to  buy  any  security,  under  circumstances  that  would  require
registration  of any of the Securities  under the 1933 Act or cause the offering
of any of the  Securities to be integrated  with prior  offerings by the Company
for purposes of the 1933 Act or any applicable shareholder approval provisions.

                           l.       Employment  Matters;   ERISA  Matters.   The
Company and its  subsidiaries are in compliance with all federal,  state,  local
and foreign laws and regulations respecting employment and employment practices,
terms and  conditions of employment  and wages and hours except where failure to
be in compliance would not have a Material Adverse Effect.  There are no pending
investigations  involving  the  Company or any of its  subsidiaries  by the U.S.
Department  of  Labor  or any  other  governmental  agency  responsible  for the
enforcement of such federal, state, local or foreign laws and regulations. There
is no unfair labor  practice  charge or complaint  against the Company or any of
its  subsidiaries  pending  before the  National  Labor  Relations  Board or any
strike,  picketing,  boycott,  dispute,  slowdown or stoppage pending or, to the
Company's  knowledge,  threatened against or involving the Company or any of its
subsidiaries.  No representation question exists respecting the employees of the
Company or any of its subsidiaries,  and no collective  bargaining  agreement or
modification  thereof is currently being negotiated by the Company or any of its
subsidiaries.  No  grievance  or  arbitration  proceeding  is pending  under any
expired or existing  collective  bargaining  agreements of the Company or any of
its subsidiaries. No material labor dispute with the employees of the Company or
any of its subsidiaries exists or, to the knowledge of the Company, is imminent.
The Company has no employee  benefit  plans  subject to the Employee  Retirement
Income Security Act of 1974, as amended.

                           m.       Intellectual  Property  Rights.  The Company
and its  subsidiaries own or possess the requisite rights or licenses to use all
trademarks,  trade names,  service marks,  service mark  registrations,  service
names, patents,  patent rights,  copyrights,  inventions,  licenses,  approvals,
governmental   authorizations,    trade   secrets   and   rights   (collectively
"Intellectual Property Rights") necessary to conduct their respective businesses
as now  conducted  and as presently  contemplated  to be operated in the future,
except  where the failure to possess the same would not have a Material  Adverse
Effect. None of the Intellectual  Property Rights or other material intellectual
property rights owned or possessed by the Company have expired or terminated, or
are  expected to expire or  terminate  in the near  future.  The Company and its
subsidiaries  do not have  any  knowledge  of any  event,  fact or  circumstance
relating  to (i) any  infringement  by the  Company or its  subsidiaries  of any
trademarks,  trade names,  service marks,  service mark  registrations,  service
names, patents,  patent rights,  copyrights,  inventions,  licenses,  approvals,
governmental authorizations, trade secrets or other similar rights of others, or
of any such  development  of similar or  identical  trade  secrets or  technical
information  by others or (ii) except as set forth on Schedule  3(m), any person
or entity now  infringing  any  Intellectual  Property  Rights or other  similar
rights  or any such  development  of  similar  or  identical  trade  secrets  or
technical  information  owned or used by the Company or any of its  subsidiaries
and,  except  as set  forth on  Schedule  3(m),  there is no  claim,  action  or
proceeding being made or brought against, or to the Company's  knowledge,  being
threatened against, the Company or its subsidiaries regarding any trademarks,

                                        8
<PAGE>

trade names, service marks, service mark registrations,  service names, patents,
patent  rights,  copyrights,   inventions,  licenses,  approvals,   governmental
authorizations,  trade secrets or other similar rights of others, or of any such
development  of similar or identical  trade secrets or technical  information by
others or any person or entity now infringing any  Intellectual  Property Rights
or other similar rights or any such  development  of similar or identical  trade
secrets or other infringement;  and the Company and its subsidiaries are unaware
of any facts or circumstances which might give rise to any of the foregoing. The
Company and its subsidiaries have taken reasonable  security measures to protect
the secrecy,  confidentiality  and value of all of their  Intellectual  Property
Rights.

                  n.  Environmental  Laws. The Company and its  subsidiaries (A)
are in compliance  with any and all  Environmental  Laws,  (B) have received all
permits,   licenses  or  other  approvals  required  of  them  under  applicable
Environmental  Laws  to  conduct  their  respective  businesses,  and (C) are in
compliance  with all  terms  and  conditions  of any  such  permit,  license  or
approval,  except  where the  failure to be in  compliance  or to  receive  such
permits,  licenses or approvals would not have a Material  Adverse Effect.  With
respect to the Company and/or its  subsidiaries (A) there are no past or present
releases  of  any   material   into  the   environment,   actions,   activities,
circumstances,  conditions,  events, incidents, or contractual obligations which
may give rise to any material common law environmental liability or any material
liability under any Environmental Law and (B) neither the Company nor any of its
subsidiaries  has received any notice with respect to the foregoing,  nor is any
action pending or to the Company's knowledge,  threatened in connection with the
foregoing.  The term  "Environmental  Laws" means all federal,  state,  local or
foreign  laws  relating  to  pollution  or  protection  of human  health  or the
environment  (including,   without  limitation,   ambient  air,  surface  water,
groundwater,  land surface or subsurface strata), including, without limitation,
laws  relating to  emissions,  discharges,  releases or  threatened  releases of
chemicals, pollutants,  contaminants, or toxic or hazardous substances or wastes
(collectively,   "Hazardous  Materials")  into  the  environment,  or  otherwise
relating to the manufacture,  processing, distribution, use, treatment, storage,
disposal,  transport  or  handling  of  Hazardous  Materials,  as  well  as  all
authorizations,   codes,  decrees,  demands  or  demand  letters,   injunctions,
judgments,  licenses,  notices  or notice  letters,  orders,  permits,  plans or
regulations issued, entered, promulgated or approved thereunder.

                           o.       Title. The Company and its subsidiaries have
good and  marketable  title in fee  simple  to all  real  property  and good and
marketable title to all personal property owned by them which is material to the
business of the Company and its subsidiaries, in each case free and clear of all
liens,  encumbrances  and defects  except such as do not  materially  affect the
value of such  property and do not  materially  interfere  with the use made and
proposed to be made of such  property by the Company and its  subsidiaries.  Any
real  property  and  facilities   held  under  lease  by  the  Company  and  its
subsidiaries  are held by them under valid,  subsisting and  enforceable  leases
with such  exceptions as are not material and do not interfere with the use made
and proposed to be made of such  property  and  buildings by the Company and its
subsidiaries.

                           p.       Insurance.  The  Company  and  each  of  its
subsidiaries  are  insured by insurers of  recognized  financial  responsibility
against such losses and risks and in such amounts as is prudent and customary in
the businesses in which the Company and its  subsidiaries  are engaged.  Neither
the Company nor any such  subsidiary  has any reason to believe that it will not
be able to renew its  existing  insurance  coverage  as and when  such  coverage
expires or to obtain similar  coverage from similar insurers as may be necessary
to  continue  its  business  at a cost  that  would not  individually  or in the
aggregate have a Material Adverse Effect.

                                        9
<PAGE>

                           q.       Regulatory Permits;  Compliance. The Company
and its subsidiaries possess all franchises, grants,  authorizations,  licenses,
permits, easements,  consents,  certificates,  approvals and orders necessary to
own,  lease  and  operate  their  respective  properties  and to  conduct  their
respective businesses as currently being conducted  (collectively,  the "Company
Permits"),  except for any such  Company  Permits the  failure to possess  which
would not have a Material Adverse Effect.  There is no action pending, or to the
knowledge of the Company, threatened regarding the suspension or cancellation of
any of the Company  Permits.  Neither the Company nor any of its subsidiaries is
in conflict  with,  or in default or violation  of, any of the Company  Permits,
which  conflict,  default or  violation  would have a Material  Adverse  Effect.
Neither the Company nor any of its  subsidiaries  has received any  notification
with respect to possible conflicts, defaults, or violations of applicable laws.

                           r.       Internal  Accounting  Controls.  The Company
and each of its subsidiaries  maintain a system of internal  accounting controls
sufficient, in the judgment of the Company's board of directors, and in relation
to the size and complexity of their respective businesses, to provide reasonable
assurance that (i)  transactions  are executed in accordance  with  management's
general or specific authorizations,  (ii) transactions are recorded as necessary
to permit  preparation  of financial  statements  in conformity  with  generally
accepted  accounting  principles  and to maintain  asset  accountability,  (iii)
access to assets is permitted only in accordance  with  management's  general or
specific  authorization  and (iv) the  recorded  accountability  for  assets  is
compared with the existing assets at reasonable intervals and appropriate action
is taken with respect to any differences.

                           s.       No  Materially   Adverse   Contracts,   Etc.
Neither  the  Company  nor any of its  subsidiaries  is subject to any  charter,
corporate or other legal restriction,  or any judgment,  decree,  order, rule or
regulation which in the reasonable  judgment of the Company's officers has or is
expected  in the  future  individually  or in the  aggregate  to have a Material
Adverse  Effect.  Neither the Company nor any of its  subsidiaries is a party to
any  contract or agreement  which in the  reasonable  judgment of the  Company's
officers has or is expected to have a Material Adverse Effect.

                           t.       Tax Status.  Except as set forth on Schedule
3(t),  the Company and each of its  subsidiaries  has made or filed all federal,
state and foreign  income and all other tax  returns,  reports and  declarations
required  by any  jurisdiction  to which it is subject  (unless  and only to the
extent that the Company and each of its  subsidiaries has set aside on its books
provisions  reasonably  adequate  for the  payment of all unpaid and  unreported
taxes) and has paid all taxes and other  governmental  assessments  and  charges
that are  material in amount,  shown or  determined  to be due on such  returns,
reports and declarations, except those being contested in good faith and has set
aside on its books provisions  reasonably  adequate for the payment of all taxes
for  periods  subsequent  to the  periods  to which  such  returns,  reports  or
declarations  apply. There are no unpaid taxes in any material amount claimed to
be due by the taxing  authority  of any  jurisdiction,  and the  officers of the
Company  know of no basis for any such claim.  The  Company  has not  executed a
waiver with respect to the statute of limitations  relating to the assessment or
collection of any foreign, federal, state or local tax. The Company has not been
notified  that any of its tax returns is currently  being  audited by any taxing
authority.

                                       10
<PAGE>

                           u.       Certain Transactions. Except as set forth on
Schedule  3(u) and except for arm's  length  transactions  pursuant to which the
Company  makes  payments in the ordinary  course of business  upon terms no less
favorable  than the Company  could obtain from third  parties and other than the
grant of  stock  options  disclosed  on  Schedule  3(c),  none of the  officers,
directors  or  employees  of the Company is  presently  a party to any  material
transaction with the Company (other than for services as employees, officers and
directors), including any contract, agreement or other arrangement providing for
the  furnishing  of services to or by,  providing for rental of real or personal
property to or from,  or  otherwise  requiring  payments to or from any officer,
director or such employee or, to the knowledge of the Company,  any corporation,
partnership,  trust or other entity in which any  officer,  director or any such
employee  has a  substantial  interest  or is an officer,  director,  trustee or
partner.

                           v.       Disclosure.  To the Company's knowledge, all
information relating to or concerning the Company or any of its subsidiaries set
forth in this  Agreement  and  provided to the Buyer  pursuant  to Section  2(d)
hereof and otherwise in connection with the transactions  contemplated hereby is
true and  correct in all  material  respects  and the Company has not omitted to
state any material fact necessary in order to make the statements made herein or
therein,  in  light  of the  circumstances  under  which  they  were  made,  not
misleading.  No event or  circumstance  has occurred or information  exists with
respect to the  Company  or any of its  subsidiaries  or its or their  business,
properties, operations or financial condition, which, under applicable law, rule
or regulation,  requires  public  disclosure or  announcement by the Company but
which has not been so publicly announced or disclosed (assuming for this purpose
that the Company's reports filed under the 1934 Act are being  incorporated into
an effective  registration  statement  filed by the Company under the 1933 Act).
The Company has not provided any Buyer with any material non-public  information
nor any projections or assurance  regarding the future financial  performance of
the Company.

                           w.       Investment  Company  Status.  The Company is
not  and  upon  consummation  of the  sale  of  the  Securities  will  not be an
"investment  company," a company  controlled  by an  "investment  company" or an
"affiliated  person"  of, or  "promoter"  or  "principal  underwriter"  for,  an
"investment  company" as such terms are defined in the Investment Company Act of
1940, as amended.

                           x.       Foreign  Corrupt   Practices.   Neither  the
Company nor any of its subsidiaries,  nor any director, officer, agent, employee
or other person  acting on behalf of the Company or any  subsidiary  has, in the
course of his actions for, or on behalf of, the Company used any corporate funds
for any unlawful  contribution,  gift,  entertainment or other unlawful expenses
relating to political activity;  made any direct or indirect unlawful payment to
any foreign or domestic  government  official or employee from corporate  funds;
violated  or is in  violation  of any  provision  of the  U.S.  Foreign  Corrupt
Practices Act of 1977; or made any bribe,  rebate,  payoff,  influence  payment,
kickback  or other  unlawful  payment  to any  foreign  or  domestic  government
official or employee.

                                       11
<PAGE>

                           y.       Year 2000.  Any  reprogramming  required  to
permit the proper functioning,  in and following the year 2000, of the Company's
and its  subsidiaries'  (i)  computer  systems  and  (ii)  equipment  containing
embedded microchips  (including systems and equipment supplied by others or with
which the  Company's  or any of its  subsidiaries'  systems  interface)  and the
testing of such systems and  equipment,  as so  reprogrammed  were  completed by
September  1,  1999.  The  cost  to the  Company  and its  subsidiaries  of such
reprogramming and testing and of the reasonably foreseeable consequences of year
2000  to  the  Company  and  its  subsidiaries  (including  without  limitation,
reprogramming  errors and the failure of others'  systems or equipment) will not
have a Material Adverse Effect. Except for the reprogramming  referred to herein
as may be  necessary,  the computer and  management  information  systems of the
Company and each of its subsidiaries are and, with ordinary course upgrading and
maintenance,  will  continue  to be,  sufficient  to permit the Company and each
subsidiary to conduct its business without a Material Adverse Effect.

                  4.       COVENANTS AND AGREEMENTS.
                           ------------------------

                           a.       Best Efforts.  Each party shall use its best
efforts  timely to  satisfy  each of the  conditions  to be  satisfied  by it as
provided in Sections 6 and 7 of this Agreement.

                           b.       Form D. The Company  agrees to file a Form D
with respect to the Securities as required  under  Regulation D and to provide a
copy thereof to each Buyer promptly after such filing.  The Company shall, on or
before the  Closing  Date,  take such  action as the  Company  shall  reasonably
determine is necessary to qualify the  Securities  for, or obtain  exemption for
the Securities for, sale to the Buyers at the Closing pursuant to this Agreement
under  applicable  securities  or "Blue  Sky" laws of the  states of the  United
States,  and shall provide evidence of any such action so taken to the Buyers on
or prior to the Closing Date.

                           c.       Reporting  Status.  Until the earlier of (i)
six months after the date as of which the  Investors (as that term is defined in
the  Registration  Rights  Agreement)  may  sell all of the  Securities  without
restriction pursuant to Rule 144(k) promulgated under the 1933 Act (or successor
thereto)  or (ii) the date which is six  months  after the date on which none of
the Securities are outstanding (the  "Registration  Period"),  the Company shall
timely file all reports  required to be filed with the SEC  pursuant to the 1934
Act, and the Company  shall not  terminate  its status as an issuer  required to
file  reports  under  the  1934  Act  even  if the  1934  Act or the  rules  and
regulations thereunder would otherwise permit such termination.

                           d.       Use of  Proceeds.  The Company  will use the
proceeds  from  the sale of the  Securities  for  working  capital  and  general
corporate  purposes and shall not otherwise,  directly or  indirectly,  use such
proceeds for any loan to or  investment in any other  corporation,  partnership,
enterprise  or other person  (except in  connection  with its direct or indirect
subsidiaries)  or for the  repurchase,  redemption  or retirement of any capital
stock of the Company.

                           e.       Financial Information. The Company agrees to
file all reports,  schedules,  forms, statements and other documents required to
be filed by it with the SEC pursuant to the reporting  requirements  of the 1934
Act. The financial statements of the Company will be prepared in accordance with
generally accepted accounting principles, consistently applied (except for any

                                       12
<PAGE>

required  changes in such  principles),  and will fairly present in all material
respects the consolidated financial position of the Company and its consolidated
subsidiaries and results of their operations and cash flows for the periods then
ended (subject,  in the case of unaudited  statements,  to normal year-end audit
adjustments). The Company agrees to send the following to each Investor (as that
term is defined in the Registration  Rights  Agreement)  during the Registration
Period:  (i) within five (5) days after the filing  thereof with the SEC, a copy
of its Annual Reports on Form 10-K or Form 10-KSB, as applicable,  its Quarterly
Reports on Form 10-Q or Form 10-QSB, as applicable,  any Current Reports on Form
8-K and any  registration  statements or amendments  filed  pursuant to the 1933
Act; (ii) within one (1) day after release thereof, copies of all press releases
issued  by the  Company  or any of its  subsidiaries;  and  (iii)  copies of any
notices and other information made available or given to the shareholders of the
Company generally, contemporaneously with the making available or giving thereof
to the shareholders.

                           f.       Reservation  of Shares.  The  Company  shall
take all action necessary to at all times have authorized,  and reserved for the
purpose of issuance,  no less than  2,000,000  shares of Common Stock to provide
for the  issuance  of the  Warrant  Shares  upon  exercise  of the  Warrants  in
accordance with the terms of this Agreement and the Warrants.

                           g.       Expenses.  The  Company  agrees  to  pay  on
demand  all  reasonable  costs  and  expenses  (including,  without  limitation,
reasonable fees and expenses of counsel to the Buyers) incurred by the Buyers in
connection  with the  enforcement of the Buyers' rights and/or the collection of
all amounts due under the Closing Agreements and all other related documents.

                           h.       Additional Issuances of Securities.

                                    (a)     Right of First Refusal. For a period
of 180 days from and after the Closing Date if the Company shall desire to issue
any Common Stock or any security  convertible,  exchangeable  or exercisable for
Common Stock or any other right to acquire any Common Stock  pursuant to Section
4(2) of the 1933 Act or an offering  under  Regulation D or  Regulation S of the
1933 Act or in any other private  placement  (other than Exempt  Issuances under
Section  4(h)(e)  below),  then the Company  shall comply with the terms of this
Section 4(i).

                                    (b)     Notice  Requirements.   The  Company
shall  notify,  or cause  to be  notified,  the  Buyers  not less  than ten (10)
business  days nor more than  twenty  (20)  business  days prior to the time the
Company  intends to  consummate  such  issuance  (the  "Issuance  Notice").  The
Issuance Notice shall set forth all of the terms of such proposed issuance.

                                    (c)     Exercise of Right of First  Refusal.
The right of first refusal provided for in this Section 4(i) may be exercised by
the  Buyers by  delivery  of a  written  notice to the  Company  (the  "Exercise
Notice"), within ten (10) business days following receipt of the Issuance Notice
(the "Refusal Period"). The Exercise Notice shall state that the Buyers agree to
purchase all or any specified part of the proposed issuance of such Common Stock
or Convertible Securities on terms substantially equal to the terms set forth in
the Issuance Notice.

                                       13
<PAGE>

                                    (d)     Right  to  Issue  Securities.  After
expiration of the Refusal  Period,  if the  provisions of this Section 4(h) have
been  complied  with in all  respects by the Company and no Exercise  Notice has
been  given,  or if given,  the Buyers  have not agreed to  purchase  all of the
securities  set forth in the Issuance  Notice,  the Company shall have the right
for  forty-five  (45) calendar days  following  the  termination  of the Refusal
Period to issue such  securities,  or any portion thereof not being purchased by
the Buyers,  specified  in the  Issuance  Notice on the terms  described  in the
Issuance Notice without further notice to the Buyers,  but after such forty-five
(45) calendar  days, no such issuance may be made without again giving notice to
the Buyers and complying with all of the requirements of this Section 4(h).

                                    (e)     Exempt   Issuances.   The  following
issuances of Common Stock or Convertible  Securities shall be "Exempt Issuances"
not subject to the right of purchase in this Section 4(h):

                                    (a)     any shares of the  Company's  Common
Stock issued pursuant to Approved Stock Plans (as defined in the Warrants);

                                    (b)     any shares  issued upon  exercise of
options,  warrants and other convertible  securities  outstanding as of the date
hereof; and

                                    (c)     shares issued to bonafide  suppliers
or vendors in consideration  for services or supplies rendered to the Company or
to a bank or other  financial  institution  as an  inducement  to  enter  into a
financing  arrangement  with the  Company  in an amount not to exceed 10% of the
outstanding capital stock of the Company.

                           i.       Disclosure.  From and after the date hereof,
the Company  will not provide to any Buyer any material  non-public  information
which,  according to  applicable  law,  rule or  regulation  should be disclosed
publicly by the Company but which has not been so disclosed.

                           j.       Corporate  Existence.  So long as any  Buyer
beneficially  owns any  Securities,  the Company  shall  maintain its  corporate
existence in good  standing  under the laws of the  jurisdiction  in which it is
incorporated  and  shall  not sell  all or  substantially  all of the  Company's
assets,  except  in the  event of a merger  or  consolidation  or sale of all or
substantially  all of the  Company's  assets,  where  either  (i) no part of the
consideration  consists of securities  of the  surviving or successor  entity in
such  transaction or (ii) the surviving or successor  entity in such transaction
(A) assumes the Company's  obligations  hereunder and under the  agreements  and
instruments  entered into or filed in connection  herewith and (B) is a publicly
traded corporation whose common stock is registered pursuant to Section 12(b) or
(g) of the 1934 Act.

                           k.       Solvency;  Compliance with Law. The Company,
individually,  and together with its subsidiaries on a consolidated  basis (both
before  and  after  giving  effect  to the  transactions  contemplated  by  this
Agreement)  is solvent  (i.e.,  its assets have a fair market value in excess of
the amount  required to pay its probable  liabilities  on its existing  debts as
they become  absolute and matured) and currently the Company has no  information
that would lead it to reasonably  conclude that the Company would not have,  nor
does it intend to take any action  that  would  impair,  its  ability to pay its
debts from time to time incurred in  connection  therewith as such debts mature.
The Company will conduct its business in compliance  with all  applicable  laws,
rules, ordinances and regulations of the jurisdictions in which it is conducting
business, including, without limitation, all applicable local, state and federal
environmental laws and regulations,  the failure to comply with which would have
a Material Adverse Effect.

                                       14
<PAGE>

                           l.       Insurance.   The  Company   shall   maintain
liability,  casualty and other  insurance  (subject to customary  deductions and
retentions) with responsible  insurance companies against such risk of the types
and in the amounts customarily maintained by companies of comparable size to the
Company.

                           m.       No Integration. The Company will not conduct
any future  offering that will be integrated with the issuance of the Securities
for purposes of the rules promulgated by the SEC.

                           n.       Year 2000. The Company will take all actions
to  assure  that  the  Company's  and its  subsidiaries'  computer  systems  and
equipment  containing  embedded  microchips  (including  systems  and  equipment
supplied  by others  or with  which the  Company's  or any of its  subsidiaries'
systems   interface)  will  operate  and  effectively   process  data  including
datafields  requiring  references  to dates on and after January 1, 2000 and the
testing of such systems and equipment.

                  5.       TRANSFER AGENT INSTRUCTIONS.
                           ---------------------------

                  The  Company  shall  issue  irrevocable  instructions  to  its
transfer agent (in the form attached hereto as Exhibit D) to issue certificates,
or at a Buyer's request, to electronically issue if possible, such shares (e.g.,
through  DWAC or DTC),  registered  in the name of each Buyer or its  respective
nominee(s), for the Securities in such amounts as specified from time to time by
each Buyer to the Company (the "Irrevocable Transfer Agent Instructions"). Prior
to  registration  of the Common Stock and the Warrant Shares under the 1933 Act,
all such  certificates  shall bear the restrictive  legend  specified in Section
2(g) of this Agreement.  The Company warrants that no instruction other than (i)
the Irrevocable  Transfer Agent Instructions  referred to in this Section 5, and
(ii) stop  transfer  instructions  (a) to give effect to Section 2(f) hereof (in
the case of the Common Stock and the Warrant Shares prior to registration  under
the 1933 Act), (b) to comply with any SEC or court order,  or (c) to suspend use
of a  then  effective  registration  statement  in the  event  an  amendment  or
supplement  thereto is  necessary,  will be given by the Company to its transfer
agent and that the  Securities  shall  otherwise be freely  transferable  on the
books and  records of the  Company as and to the extent  provided in the Closing
Agreements.  Nothing  in this  Section 5 shall  affect  in any way each  Buyer's
obligations  and agreement to comply with all  applicable  securities  laws upon
resale of any of the Securities. If a Buyer provides the Company with an opinion
of counsel,  reasonably  satisfactory in form and substance to the Company, that
registration  of a resale by such Buyer of any of the Securities is not required
under the 1933 Act, the Company shall permit the  transfer,  and, in the case of
the  Securities,  promptly  instruct  its  transfer  agent to issue  one or more
certificates in such name and in such  denominations as specified by such Buyer.
The Company  acknowledges that a breach by it of its obligations  hereunder will
cause  irreparable harm to the Buyers by vitiating the intent and purpose of the
transaction contemplated hereby. Accordingly,  the Company acknowledges that the
remedy  at law for a breach  of its  obligations  under  this  Section 5 will be
inadequate  and  agrees,  in the event of a breach or  threatened  breach by the
Company of the  provisions of this Section 5, that the Buyers shall be entitled,
in addition to all other available  remedies,  to an injunction  restraining any
breach and requiring  immediate issuance and transfer,  without the necessity of
showing economic loss and without any bond or other security being required.

                                       15
<PAGE>

                  6.       CONDITIONS TO THE COMPANY'S OBLIGATION TO SELL.
                           ----------------------------------------------

                  The obligation of the Company  hereunder to issue and sell the
Units to each Buyer at the Closing is subject to the satisfaction,  with respect
to each  Buyer,  at or  before  the  Closing  Date,  of  each  of the  following
conditions,  provided that these  conditions  are for the Company's sole benefit
and may be waived by the Company at any time in its sole discretion:

                           a.       Such   Buyer   shall  have   executed   this
Agreement and the  Registration  Rights  Agreement and delivered the same to the
Company.

                           b.       Such  Buyer  shall  have  delivered  to  the
Company the  Purchase  Price for the Units being  purchased by such Buyer at the
Closing by wire transfer of  immediately  available  funds  pursuant to the wire
instructions provided by the Company.

                           c.       The  representations  and warranties of such
Buyer  shall be true and  correct in all  material  respects as of the date when
made  and as of the  Closing  Date  as  though  made at that  time  (except  for
representations and warranties that speak as of a specific date), and such Buyer
shall have performed,  satisfied and complied in all material  respects with the
covenants, agreements and conditions required by this Agreement to be performed,
satisfied or complied with by such Buyer at or prior to the Closing Date.

                           d.       The transactions  contemplated  hereby shall
not violate any law,  regulation or order then in effect and  applicable to such
Buyer or the Company.

                  7.       CONDITIONS TO EACH BUYER'S OBLIGATION TO PURCHASE.
                           -------------------------------------------------

                  The  obligation of each Buyer  hereunder to purchase the Units
is subject to the  satisfaction,  at or before the Closing  Date, of each of the
following  conditions,  provided that these conditions are for each Buyer's sole
benefit and may be waived by such Buyer at any time in its sole discretion:

                           a.       The  Company   shall  have   executed   this
Agreement, the Warrants and the Registration Rights Agreement, and delivered the
same to such Buyer.

                           b.       Trading  in  the  Common  Stock  or  Warrant
Shares  issuable  upon the  conversion  of the  Warrants  shall  not  have  been
suspended by the SEC.

                           c.       The  representations  and  warranties of the
Company shall be true and correct in all material respects (except to the extent
that any of such  representations  and  warranties  is already  qualified  as to
materiality  in  Section  3  above,  in  which  case  such  representations  and
warranties  shall be true and correct without further  qualification)  as of the
date when made and as of the Closing  Date as though  made at that time  (except
for  representations  and  warranties  that speak as of a specific date) and the
Company shall have performed, satisfied and complied in all material respects

                                       16
<PAGE>

with the covenants,  agreements and conditions  required by this Agreement to be
performed,  satisfied or complied with by the Company at or prior to the Closing
Date.  Such Buyer  shall  have  received a  certificate,  executed  by the Chief
Executive Officer of the Company, dated as of the Closing Date, to the foregoing
effect and as to such other matters as may be reasonably requested by such Buyer
including,  without  limitation,  an update as of the Closing Date regarding the
representation contained in Section 3(c) above.

                           d.       The   Company   shall  have   executed   and
delivered  to such  Buyer the Stock  Certificates  for the  Common  Stock  being
purchased by such Buyer at the Closing.

                           e.       The   Company   shall  have   executed   and
delivered  to each  Buyer the  Warrants  being  purchased  by such  Buyer at the
Closing.

                           f.       As of the Closing  Date,  the Company  shall
have reserved out of its  authorized and unissued  Common Stock,  solely for the
purpose of effecting  the  exercise of the  Warrants,  520,000  shares of Common
Stock.

                           g.       The Board of Directors of the Company  shall
have adopted the  resolutions  in  substantially  the form of Exhibit E attached
hereto.

                           h.       The Irrevocable Transfer Agent Instructions,
in the form of  Exhibit D attached  hereto,  shall  have been  delivered  to and
acknowledged in writing by the Company's transfer agent.

                           i.       The transactions  contemplated  hereby shall
not violate any law, regulation or order then in effect and applicable to Buyers
or the Company.

                           j.       There shall not have  occurred  any material
adverse change in the business condition (financial or otherwise), or results of
operations of the Company since the date of this Agreement.

                  8.       INDEMNIFICATION.
                           ---------------

                  In  consideration  of each Buyer's  execution  and delivery of
this Agreement and acquiring the Securities  hereunder and in addition to all of
the Company's other obligations under this Agreement,  the Company shall defend,
protect,  indemnify  and hold  harmless  each  Buyer  and each  other  holder of
Securities  and  all  of  their  officers,   directors,   employees  and  agents
(including,   without   limitation,   those  retained  in  connection  with  the
transactions   contemplated  by  this  Agreement)   (collectively,   the  "Buyer
Indemnitees")  from and against any and all  actions,  causes of action,  suits,
claims, losses, costs, penalties, fees, liabilities and damages, and expenses in
connection  therewith  (irrespective  of whether any such Buyer  Indemnitee is a
party  to the  action  for  which  indemnification  hereunder  is  sought),  and
including  reasonable  attorneys' fees and disbursements (the "Buyer Indemnified
Liabilities"),  incurred by any Buyer Indemnitee (and shall advance the same) as
a result of, or arising out of, or relating to (a) subject to Section 9(i),  any
misrepresentation or breach of any representation or warranty made by the

                                       17
<PAGE>

Company  in the  Closing  Agreements  or any other  certificate,  instrument  or
document  contemplated  hereby  or  thereby,  (b) any  breach  of any  covenant,
agreement or  obligation of the Company  contained in the Closing  Agreements or
any other certificate, instrument or document contemplated hereby or thereby, or
(c) any transaction  financed or to be financed in whole or in part, directly or
indirectly, with the proceeds of the issuance of the Units or the status of such
Buyer or holder of any of the  Securities as an investor in the Company.  To the
extent that the foregoing  undertaking by the Company may be  unenforceable  for
any reason,  the Company shall make the maximum  contribution to the payment and
satisfaction of each of the Buyer  Indemnified  Liabilities which is permissible
under applicable law.

                  9.       GOVERNING LAW; MISCELLANEOUS.
                           -----------------------------

                           a.       Governing  Law.  This  Agreement   shall  be
governed by and interpreted in accordance with the laws of the State of New York
without regard to the principles of conflict of laws.

                           b.       Counterparts. This Agreement may be executed
in two or more identical counterparts,  all of which shall be considered one and
the same agreement and shall become effective when counterparts have been signed
by each party and delivered to the other party.  In the event any signature page
is delivered by facsimile  transmission,  the party using such means of delivery
shall  cause  four  (4)  additional  original  executed  signature  pages  to be
physically  delivered to the other party  within five (5) days of the  execution
and delivery hereof.

                           c.       Headings. The headings of this Agreement are
for  convenience  of  reference  and  shall  not form  part of,  or  affect  the
interpretation of, this Agreement.

                           d.       Severability.   If  any  provision  of  this
Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity
or  unenforceability  shall not affect the  validity  or  enforceability  of the
remainder  of  this   Agreement  in  that   jurisdiction   or  the  validity  or
enforceability of any provision of this Agreement in any other jurisdiction.

                           e.       Entire Agreement; Amendments. This Agreement
supersedes all other prior oral or written  agreements  between the Buyers,  the
Company, their affiliates and persons acting on their behalf with respect to the
matters discussed  herein,  and this Agreement and the instruments and documents
referenced  herein contain the entire  understanding of the parties with respect
to the matters covered herein and therein and, except as specifically  set forth
herein or therein,  neither the Company nor any Buyer makes any  representation,
warranty,  covenant or undertaking with respect to such matters. No provision of
this  Agreement  may be waived or amended other than by an instrument in writing
signed by the party to be charged with enforcement.

                           f.       Notices. Any notices,  consents,  waivers or
other  communications  required or permitted to be given under the terms of this
Agreement shall be in writing and will be deemed to have been delivered (i) upon
receipt, when delivered  personally;  (ii) upon receipt, when sent by facsimile,
provided a copy is mailed by U.S.  certified  mail,  return  receipt  requested;
(iii) three (3) days after being sent by U.S.  certified  mail,  return  receipt
requested,  or (iv)  one (1) day  after  deposit  with a  nationally  recognized
overnight  delivery  service,  in each case  properly  addressed to the party to
receive the same.  The addresses and facsimile  numbers for such  communications
shall be:

                                       18
<PAGE>

                  if to the Company:

                           Capita Research Group, Inc.
                           591 Skippack Pike
                           Suite 300
                          Blue Bell, Pennsylvania 19422
                             Telephone: 215-619-7777
                             Facsimile: 215-619-0775
                           Attention:  Chief Financial Officer

                  with a copy to:

                           Andrew J. Beck, Esq.
                           Torys
                           237 Park Avenue
                            New York, New York 10017
                             Facsimile: 212-682-0200

                  if to the Transfer Agent:

                           Nevada Agency and Trust Company
                           50 West Liberty Street, Suite 880
                           Reno, Nevada 89501
                           Telephone:  775-322-0626
                           Facsimile:   775-322-5623
                           Attention:   Compliance Department

                  If to a Buyer,  to its  address  and  facsimile  number on the
Schedule  of Buyers,  with  copies to such  Buyer's  counsel as set forth on the
Schedule of Buyers. Each party shall provide five (5) days' prior written notice
to the other party of any change in address or facsimile number.

                           g.       Successors and Assigns. This Agreement shall
be binding  upon and inure to the benefit of the  parties  and their  respective
successors and assigns, including any purchasers of the Units. The Company shall
not assign this  Agreement or any rights or  obligations  hereunder  without the
prior  written  consent of the  Buyers.  A Buyer may  assign  some or all of its
rights hereunder without the consent of the Company, provided, however, that (i)
any such assignment shall not release such Buyer from its obligations  hereunder
unless  such  obligations  are  assumed by such  assignee  and the  Company  has
consented to such  assignment and  assumption,  and (ii) no Buyer may assign its
rights  hereunder  in a manner  that  would  cause the  offering  of  Securities
hereunder to be required to be registered under the 1933 Act.

                           h.       No Third Party Beneficiaries. This Agreement
is intended for the benefit of the parties hereto and their respective permitted
successors  and  assigns,  and is not for the benefit of, nor may any  provision
hereof be enforced by, any other person.

                           i.       Survival. The representations and warranties
of the Company and the Buyers contained in Sections 3 and 2, respectively, shall
survive the Closing until eighteen months after the Closing Date. The agreements
and  covenants  set  forth  in  Sections  4, 5 and 9,  and  the  indemnification
provisions  set forth in Section 8, shall survive the Closing.  Each Buyer shall
be  responsible  only for its own  representations,  warranties,  agreements and
covenants hereunder.

                                       19
<PAGE>

                           j.       Publicity.  The Company and each Buyer shall
have the right to approve before issuance any press releases or any other public
statements  with  respect to the  transactions  contemplated  hereby;  provided,
however,  that the Company shall be entitled,  without the prior approval of any
Buyer, to make any press release or other public disclosure with respect to such
transactions  as is required by applicable  law and  regulations  (although each
Buyer  shall be  consulted  by the  Company  in  connection  with any such press
release or other  public  disclosure  prior to its release and shall be provided
with a copy thereof), but only to the extent required by such law or regulation.

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

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

                           m.       Equitable  Relief.  The  Company  recognizes
that in the event that it fails to perform,  observe, or discharge any or all of
its  obligations  under  this  Agreement,  any  remedy  at law may  prove  to be
inadequate  relief to the Buyers.  The Company  therefore agrees that the Buyers
shall be entitled to temporary and permanent  injunctive relief in any such case
without the necessity of proving actual damages.

                           n.      Consent to Jurisdiction.  The parties hereto
expressly  submit  themselves  to the  exclusive  jurisdiction  of the state and
federal  courts  of New  York  in any  action  or  proceeding  relating  to this
Agreement  or any of  the  other  documents  contemplated  hereby  or any of the
transactions  contemplated  hereby or  thereby.  Each party  hereby  irrevocably
waives, to the fullest extent permitted by law, any objection that it may now or
hereafter  have to the laying of venue of any such  action,  suit or  proceeding
brought in such a court and any claim that any such action,  suit or  proceeding
brought in such a court has been brought in an inconvenient  forum.  The parties
hereto irrevocably and unconditionally  consent to the service of process of any
of the  aforementioned  courts in any such  action,  suit or  proceeding  by the
mailing of copies thereof by registered or certified mail,  postage prepaid,  at
their  respective  addresses  set forth or provided for herein,  such service to
become  effective 10 days after such  mailing.  Nothing  herein shall affect the
right  of any  party to  serve  process  in any  manner  permitted  by law or to
commence legal proceedings or otherwise proceed against the other parties in any
other jurisdiction.

                                      * * *

                                       20
<PAGE>

                  IN WITNESS  WHEREOF,  the Buyers and the  Company  have caused
this  Securities  Purchase  Agreement  to be duly  executed as of the date first
written above.

                                            COMPANY:

                                            CAPITA RESEARCH GROUP, INC.

                                            By: /s/ David B. Hunter
                                            -----------------------
                                                Name:  David B. Hunter
                                                Its:  President

                                       21
<PAGE>

                                            THE BUYERS:

                                             /s/ Andrew Gitlin
                                             -----------------
                                             Andrew Gitlin

                                             /s/John Lepore
                                             --------------
                                             John Lepore

                                             /s/ Edward Okine
                                             ----------------
                                             Edward Okine

                                             /s/ Philip Platek
                                             -----------------
                                             Philip Platek

                                             /s/ Howard Fischer
                                             ------------------
                                             Howard Fischer

                                             /s/ Michael Hamblett
                                             --------------------
                                             Michael Hamblett

                                       22
<PAGE>

                               SCHEDULE OF BUYERS

                               SCHEDULE OF BUYERS

Investor Name, Address and          Number of shares of     Number of
     Facsimile Number                   Common Stock        Warrants
     ----------------                   ------------        --------

Andrew Gitlin                             30,000            30,000 (A Warrants)
16 Outlook Drive
Darien, CT 06820                                            30,000 (B Warrants)
(203) 324-8498

John Lepore                               20,000            20,000(A Warrants)
167 Old Hyde Road
Weston, CT 06883
(2030 324-8498)                                             20,000(B Warrants)

Edward Okine                              10,000            10,000(A Warrants)
162 Steephill Road
Weston, CT 06883                                            10,000(B Warrants)

Philip Platek                             20,000            20,000(A Warrants)
10 Old Redding Rd
Weston, CT 06883                                            20,000(B Warrants)

Howard Fischer                            80,000            80,000(A Warrants)
36 Wampus Lake Drive
Armonk, NY 10504                                            80,000(B Warrants)
(203) 324-8498

Michael Hamblett                         100,000           100,000(A Warrants)
5 Mckinnel Court
Branford, CT 06405                                         100,000(B Warrants)
(203) 324-8498Exhibit 10(h)

                  REGISTRATION RIGHTS AGREEMENT dated as of August 5, 1999 (this
"Agreement")  between Capita Research  Group,  Inc., a Nevada  corporation  (the
"Corporation"), and Jim Salim (the "Stockholder").

                              W I T N E S S E T H:
                              - - - - - - - - - --

                  WHEREAS,  the  Corporation  desires to provide the Stockholder
with   certain   registration   rights  and  the   parties   wish  to  make  the
representations and enter into the covenants set forth herein.

                  NOW, THEREFORE,  in consideration of the mutual benefits to be
derived and the conditions and promises  herein  contained,  and intending to be
legally bound hereby, the parties hereto agree as follows:

                  1. Registration of Common Stock. (a) In the event that, at any
time, the Corporation  proposes to register the sale of any shares of its common
stock, $.001 par value, ("Common Stock") to be issued by the Corporation or sold
by any holder of shares of Common Stock (the  "Registration  Shares")  under the
Securities Act of 1933, as amended (the "Securities  Act"),  other than pursuant
to a registration statement on Forms S-4 or S-8, or any successor to such Forms,
for the purpose of the  issuance,  sale or other  transfer  of the  Registration
Shares by the Corporation or such holder,  the Corporation shall mail or deliver
to the  Stockholder  at least 25 days  prior to the  filing of the  registration
statement  covering such Registration  Shares, a written notice (a "Registration
Notice") of its intention so to register the Registration Shares, and specifying
the date by which the Supplemental Notice referred to in Section 1(b) below must
be returned to the Corporation.

                  (b) In the event that a Registration Notice shall have been so
mailed or delivered,  the Stockholder,  at such person's  election,  may mail or
deliver  to the  Corporation  a written  notice (a  "Supplemental  Notice")  (i)
specifying  the  number of shares of Common  Stock  ("Supplemental  Registration
Shares")  issued or issuable upon the exercise of Warrants and/or the conversion
of, or as interest upon, that certain Convertible  Promissory Note, in each case
acquired by the Stockholder  pursuant to the Loan Agreement dated as of the date
hereof  between  the  Corporation  and the  Stockholder,  proposed to be sold or
otherwise transferred by the Stockholder, (ii) describing the proposed manner of
sale or other transfer  thereof and (iii)  requesting the  registration  thereof
under the Securities Act; provided, however, that such Supplemental Notice shall
be so mailed or  delivered  by the  Stockholder  not more than 15 days after the
date of the Registration Notice.

                  (c) From and  after  receipt  of a  Supplemental  Notice,  the
Corporation shall, subject to the prior sale or other transfer of some or all of
such  Registration  Shares,  use  its  reasonable  best  efforts  to  cause  the
Supplemental  Registration  Shares specified in such  Supplemental  Notice to be
registered  under the  Securities  Act and to effect and to comply with all such
regulatory  qualifications  and  requirements  as may be necessary to permit the
sale or other transfer of such  Supplemental  Registration  Shares in the manner
described  in  such  Supplemental   Notice,   including,   without   limitation,
qualifications  under  applicable  blue  sky  or  other  state  securities  laws
(provided that the Corporation shall not be required in connection  therewith to
qualify as a foreign  corporation or to execute a general  consent to service of
process in any jurisdiction);  provided,  however, that (i) if in the case of an
underwritten public offering of the Registration Shares the managing underwriter
shall advise the Corporation that the inclusion of some or all of such

                                        2
<PAGE>

Supplemental Registration Shares would, in such managing underwriter's judgment,
materially interfere with the proposed  distribution of the Registration Shares,
then the  Corporation  may, upon written  notice to the  Stockholder,  reduce or
eliminate the Supplemental  Registration  Shares otherwise to be included in the
registration  statement (if and to the extent such  reduction or  elimination is
indicated  by  such  managing   underwriter   as  necessary  to  eliminate  such
interference),  (ii) if any firm of  counsel  representing  the  Corporation  in
connection  with such  registration  or  representing  the  Stockholder  that is
reasonably  satisfactory to the Corporation shall advise the Corporation and the
Stockholder in writing that in its opinion the registration under the Securities
Act contemplated  hereby is not necessary to permit the sale of the Supplemental
Registration  Shares in the intended  method of disposition by the  Stockholder,
then the  Corporation  shall not be required to take any action with  respect to
such registration or other steps  contemplated  hereby and (iii) the Corporation
shall have the right to delay or abandon  such  registration  at any time in the
event that the Board of Directors of the  Corporation  determines  in good faith
that such delay or abandonment is in the best interest of the Corporation.

                  (d) At any time  after  April 1,  2000,  in the event that the
Stockholder  shall not have theretofore been offered the opportunity to register
the  Stockholder's  Supplemental  Registration  Shares pursuant to Sections 1(a)
through  1(c),  the  Stockholder  shall  have  the  right  to  request  that the
Corporation  effect  the  registration  under the  Securities  Act of any or all
Supplemental Registration Shares. The Corporation shall not be obligated to file
and cause to become  effective  more than one  registration  statement  in which
Supplemental Registration Shares are registered pursuant to this subsection (d).
The  Stockholder's  rights under this  subsection  (d) shall  terminate upon the
second anniversary of the date hereof.

                  (e) In the event that the Stockholder,  if the Stockholder has
the right to do so,  exercises  such person's  rights under  Section  1(d),  the
Corporation  shall  use its  reasonable  best  efforts  to cause the sale of the
Supplemental  Registration  Shares to be registered under the Securities Act and
to effect and to comply with all such regulatory qualifications, compliances and
requirements  as may be necessary  to permit the sale or other  transfer of such
Supplemental  Registration  Shares,  in the manner  described  in such  request,
including, without limitation, qualifications under applicable blue sky or other
state  securities laws (provided that the  Corporation  shall not be required in
connection therewith to qualify as a foreign corporation or to execute a general
consent to service of process in any jurisdiction);  provided, however, that (i)
if any firm of counsel  representing the Corporation in connection with any such
registration shall advise the Corporation and the Stockholder in writing that in
its opinion the registration under the Securities Act contemplated hereby is not
necessary  to permit  the sale of the  Supplemental  Registration  Shares in the
intended method of disposition by the  Stockholder,  then the Corporation  shall
not be required to take any action with  respect to such  registration  or other
steps contemplated hereby and (ii) the Corporation shall have the right to delay
such  registration  for one  period of up to 120 days by  written  notice to the
Stockholder  in the  event  that  the  Board  of  Directors  of the  Corporation
determines  in good  faith  that  such  delay  is in the best  interests  of the
Corporation,  provided that the  Stockholder  shall be entitled to withdraw such
request  within  30 days  of  receipt  of such  notice  and if such  request  is
withdrawn,  such  registration  shall not constitute a registration to which the
Stockholder is entitled pursuant to Section 1(d).

                                        3
<PAGE>

                  (f)  If  and  whenever  the  Corporation  is  required  by the
provisions  of this Section 1 to use its  reasonable  best efforts to effect the
registration  under the  Securities  Act of any  securities  requested  to be so
registered by the Stockholder, the Corporation will, as promptly as practicable:

                           (i) prepare and file with the Securities and Exchange
                  Commission (the  "Commission")  a registration  statement with
                  respect to such securities and use its reasonable best efforts
                  to cause such registration statement to become effective;

                           (ii)  prepare  and  file  with  the  Commission  such
                  amendments and supplements to such registration  statement and
                  the  prospectus  used  in  connection   therewith  as  may  be
                  necessary to keep such registration  statement effective for a
                  period from the date of the effectiveness  thereof through the
                  earlier  of (1) the date  which is nine (9)  months  after the
                  date of  effectiveness  thereof  and (2) the date on which all
                  Supplemental Registration Shares included in such registration
                  statement shall have been sold or otherwise disposed of by the
                  Stockholder  pursuant to such registration  statement,  and to
                  comply with the  provisions of the Securities Act with respect
                  to the sale or other disposition of all shares of Common Stock
                  covered   by  such   registration   statement   whenever   the
                  Stockholder  shall desire to sell or otherwise  dispose of the
                  same within such period;

                           (iii)  furnish  to the  Stockholder  such  number  of
                  copies of a prospectus, including a preliminary prospectus and
                  final  prospectus,  in conformity with the requirements of the
                  Securities  Act, and such other documents as may reasonably be
                  requested  thereby in order to  facilitate  the public sale or
                  other  disposition  of  such  shares  of  Common  Stock  owned
                  thereby;

                           (iv) notify the  Stockholder  promptly of any request
                  by the  Commission  for the  amendment or  supplement  of such
                  registration   statement  or  prospectus  or  for   additional
                  information, and notify the Stockholder promptly of the filing
                  of each amendment or supplement to such registration statement
                  or prospectus;

                           (v) advise the  Stockholder,  promptly after it shall
                  receive  notice,  of the  issuance  of any  stop  order by the
                  Commission  suspending the  effectiveness of such registration
                  statement or the  initiation or  threatening of any proceeding
                  for that purpose and promptly use its reasonable  best efforts
                  to  prevent  the  issuance  of any stop order or to obtain its
                  withdrawal if such stop order should be issued;

                           (vi) with respect to any registration statement being
                  prepared  as a result of the  exercise  of rights  pursuant to
                  Section 1(d) hereof relating to an underwritten offering, upon
                  the  request  of  the  Stockholder,   the  Corporation   shall
                  cooperate  with the  Stockholder  to obtain and furnish at the
                  closing  provided  for in the  underwriting  agreement  (1) an
                  opinion  of  counsel  to the  Corporation,  dated  such  date,
                  addressed  to  the   underwriters   and  to  the   Stockholder
                  registering  the sale of  shares of  Common  Stock,  and (2) a
                  "cold comfort" letter from the independent certified public

                                        3
<PAGE>

                  accountants of the Corporation,  dated such date, addressed to
                  the  underwriters  and  to  the  Stockholder,  in  each  case,
                  covering  substantially  the same  matters with respect to the
                  issuer,  such  registration   statement  (and  the  prospectus
                  included therein) and with respect to the events subsequent to
                  the  date  of  the  financial   statements  included  in  such
                  registration statement, as are customarily covered in opinions
                  of issuer's counsel and in accountants'  letters  delivered to
                  the   underwriters   in  underwritten   public   offerings  of
                  securities; and

                           (vii) notify the Stockholder, in writing, at any time
                  when a  prospectus  relating to such shares of Common Stock is
                  required to be delivered  under the  Securities Act within the
                  appropriate   period  mentioned  in  clause  (ii)  immediately
                  preceding,  of the happening of any event as a result of which
                  the prospectus  included in such  registration  statement,  as
                  then in effect,  includes  an untrue  statement  of a material
                  fact or omits to state a material  fact  required to be stated
                  therein  or  necessary  to make  the  statements  therein  not
                  misleading in the light of the  circumstances  then  existing,
                  and  promptly  prepare  (and  file  with the  Commission)  and
                  furnish to the Stockholder a reasonable  number of copies of a
                  supplement  to or an  amendment of such  prospectus  as may be
                  necessary so that, as thereafter  delivered to the  purchasers
                  of such  shares of Common  Stock,  such  prospectus  shall not
                  include  an untrue  statement  of a  material  fact or omit to
                  state  a  material  fact  required  to be  stated  therein  or
                  necessary to make the statements therein not misleading in the
                  light of the circumstances then existing.

                  (g) The  Stockholder  agrees to furnish the  Corporation  such
information  regarding  itself and the  proposed  distribution  of  Supplemental
Registration  Shares by the Stockholder as the Corporation may from time to time
reasonably  request in writing in order to prepare a registration  statement and
prospectus or any supplement or amendment thereto pursuant to the Securities Act
and the rules and regulations promulgated thereunder.

                  (h) The  Stockholder  agrees  that,  upon receipt of a written
notice from the  Corporation of the happening of any event of the kind described
in clause  (vii) of  Section  1(f)  above,  it will  forthwith  discontinue  its
disposition of Supplemental  Registration  Shares  pursuant to the  registration
statement relating to such Supplemental Registration Shares until its receipt of
the copies of the  supplemented  or amended  prospectus  contemplated  by clause
(vii) of Section 1(f) above and, if so requested by the  Corporation in writing,
will deliver to the Corporation (at the  Corporation's  expense) all copies then
in its possession,  other than permanent file copies, of the prospectus relating
to such Supplemental  Registration Shares; provided,  however, that in the event
that the Stockholder  discontinues its disposition of Supplemental  Registration
Shares  pursuant  to the  foregoing  provisions,  the nine month  period for the
effectiveness  of the  registration  statement  shall be  extended by the period
during which the Stockholder discontinued its disposition.

                  (i) The Corporation shall pay all expenses (the  "Registration
Expenses")  necessary  to  effect  under  the  Securities  Act any  registration
statements,  amendments or  supplements  filed pursuant to this Section 1 (other
than any underwriters'  discounts and commissions and any brokerage  commissions
and fees payable with respect to shares of Common Stock sold by the  Stockholder
and legal fees and expenses of counsel to the Stockholder), including, without

                                        4
<PAGE>

limitation,   printing  expenses,  fees  of  the  Commission  and  the  National
Association of Securities  Dealers,  Inc.,  expenses of compliance with blue sky
and other state  securities  laws, and accounting and legal fees and expenses of
counsel to the Corporation; provided, however, that the Stockholder shall pay up
to the first $50,000 of any  Registration  Expenses in connection  with a demand
registration pursuant to Sections 1(d) and (e).

                  (j) The Stockholder  agrees that, in the event the Corporation
files a  registration  statement  under the  Securities  Act with  respect to an
underwritten  public  offering of any  securities of the  Corporation  for cash,
primarily  for the  account of the  Corporation,  in which the  Stockholder  was
permitted  to  participate   (whether  or  not  the  Stockholder  does  in  fact
participate), if required by an underwriter, the Stockholder will not effect any
public sale or distribution, including any sale pursuant to Rule 144 promulgated
under the  Securities  Act, of any equity  securities of the  Corporation or any
securities  convertible  into or  exchangeable  or  exercisable  for any  equity
security  of the  Corporation  (other than as part of such  underwritten  public
offering)  during the seven days prior to, and such period  after (not to exceed
in any event 180 days), the effectiveness of such registration  statement as may
be required by such underwriter.

                  (k) In the event of any registration  pursuant to this Section
1 covering shares of Common Stock  beneficially  owned by the  Stockholder,  the
Corporation will indemnify and hold harmless the Stockholder, and each person or
entity,  if  any,  who  controls  the  Stockholder  within  the  meaning  of the
Securities Act  (collectively,  the "Indemnitees")  against any losses,  claims,
damages,  costs, expenses (including reasonable attorneys' fees), or liabilities
(or actions in respect  thereof) to which the Stockholder or controlling  person
or entity becomes  subject,  under the  Securities Act or otherwise,  insofar as
such losses,  claims,  damages,  costs,  expenses or liabilities  (or actions in
respect  thereof) arise out of or are based upon any untrue statement or alleged
untrue  statement of any  material  fact  contained in the related  registration
statement,  any preliminary prospectus or final prospectus contained therein, or
any  amendment  or  supplement  thereto,  or arise out of or are based  upon the
omission or alleged  omission to state  therein a material  fact  required to be
stated  therein or necessary to make the  statements  therein not  misleading in
light of the circumstances in which they were made; provided,  however, that the
Corporation  will not be liable in any such case to an  Indemnitee to the extent
that any such loss, claim,  damage,  cost, expense or liability arises out of or
is primarily based upon (x) an untrue  statement or alleged untrue  statement or
omission or alleged omission made in such  registration  statement,  preliminary
prospectus,  prospectus  or  amendment  or  supplement  in reliance  upon and in
conformity with written  information  furnished by any Indemnitee,  specifically
for use in the preparation thereof or (y) such Indemnitee's failure to deliver a
copy of the prospectus or any amendments or supplements  thereto (if required by
applicable  law) to the person  asserting any loss,  claim,  damage or liability
after  the  Corporation  has  furnished  such  Indemnitee  with  the  same.  The
Corporation  also agrees to  reimburse  each  Indemnitee  for any legal or other
expenses reasonably incurred by such Indemnitee in connection with investigating
or defending any such loss, claim, damage, liability or action.

                                        5
<PAGE>

                  (l) In the event of any registration  pursuant to this Section
1 covering shares of Common Stock  beneficially  owned by the  Stockholder,  the
Stockholder  shall  indemnify  and hold  harmless the  Corporation,  each of its
directors  and  officers  who has signed any  registration  statement,  and each
person or entity, if any, who controls the Corporation within the meaning of the
Securities Act, against any losses, claims,  damages, costs, expenses (including
reasonable  attorneys'  fees) or liabilities (or actions in respect  thereof) to
which the  Corporation or any such  director,  officer,  or  controlling  person
becomes subject, under the Securities Act or otherwise,  insofar as such losses,
claims,  damages, costs, expenses or liabilities (or actions in respect thereof)
primarily arise out of or are based upon any untrue or alleged untrue  statement
of any material fact contained in the related  registration  statement,  and any
preliminary  prospectus or final prospectus  contained therein, or any amendment
or supplement  thereto, or primarily arise out of or are based upon the omission
or the alleged  omission to state  therein a material fact required to be stated
therein or necessary to make the  statements  therein not misleading in light of
the circumstances in which they were made, in each case to the extent,  but only
to the  extent,  that such loss,  claim,  damage,  cost,  expense  or  liability
primarily  arises  out of or is based  upon (x) an untrue  statement  or alleged
untrue  statement  or omission  or alleged  omission  made in such  registration
statement,  preliminary  prospectus,  prospectus,  amendment  or  supplement  in
reliance  upon and in  conformity  with  written  information  furnished  by the
Stockholder  specifically  for  use  in  the  preparation  thereof  or  (y)  the
Stockholder's  failure to deliver a copy of the  prospectus or any amendments or
supplements  thereto (if required by applicable law) to the person asserting any
loss,  claim,  damage or  liability  after the  Corporation  has  furnished  the
Stockholder  with the same. The  Stockholder  shall reimburse any legal or other
expenses reasonably  incurred by the Corporation or any such director,  officer,
or controlling  person or entity in connection with  investigating  or defending
any such  loss,  claim,  damage,  liability  or  action.  The  liability  of the
Stockholder pursuant to this Section 1(l) shall be limited to the total proceeds
from the offering (net of sales commissions) received by the Stockholder.

                  (m) Promptly after receipt by an indemnified  party under this
Section 1 of notice of the commencement of any action,  such  indemnified  party
shall,  if a claim in respect  thereof is to be made  against  any  indemnifying
party under this Section 1, notify the  indemnifying  party of the  commencement
thereof;  provided,  however,  that failure to so notify the indemnifying  party
shall not affect an indemnifying  party's obligations  hereunder,  except to the
extent that the indemnifying party is materially prejudiced by such failure. The
indemnifying  party  shall be entitled  to appoint  counsel of the  indemnifying
party's choice at the indemnifying  party's expense to represent the indemnified
party in any  action  for which  indemnification  is sought  (in which  case the
indemnifying party shall not thereafter be responsible for the fees and expenses
of any separate counsel  retained by the indemnified  party or parties except as
set forth  below);  provided,  however,  that such counsel  shall be  reasonably
satisfactory to the indemnified party.  Notwithstanding the indemnifying party's
election to appoint counsel to represent the indemnified party in an action, the
indemnified  party shall have the right to employ  separate  counsel  (including
local counsel), and the indemnifying party shall bear the reasonable fees, costs
and expenses of such  separate  counsel if (i) the use of counsel  chosen by the
indemnifying party to represent the indemnified party would present such counsel
with a conflict of  interest,  (ii) the actual or  potential  defendants  in, or
targets  of,  any  such  action  include  both  the  indemnified  party  and the
indemnifying  party and the indemnified  party shall have  reasonably  concluded
that  there  may be legal  defenses  available  to it and/or  other  indemnified
parties which are different from or additional to those available to the

                                        6
<PAGE>

indemnifying party, (iii) the indemnifying party shall not have employed counsel
reasonably  satisfactory to the  indemnified  party to represent the indemnified
party within a reasonable time after notice of the institution of such action or
(iv) the  indemnifying  party shall  authorize the  indemnified  party to employ
separate  counsel at the expense of the  indemnifying  party.  It is understood,
however,  that the  indemnifying  party shall,  in connection  with any one such
action or  separate  but  substantially  similar or related  actions in the same
jurisdiction  arising out of the same general  allegations or circumstances,  be
liable  for the  reasonable  fees  and  expenses  of only one  separate  firm of
attorneys (in addition to any local counsel) at any time.

                  (n) No  indemnifying  party shall,  without the prior  written
consent of the  indemnified  party,  effect  any  settlement  of any  pending or
threatened action,  suit or proceeding in respect of which any indemnified party
is or could have been a party and indemnity could have been sought  hereunder by
such indemnified party, unless such settlement includes an unconditional release
of such  indemnified  party from all  liability  on claims  that are the subject
matter of such action, suit or proceeding.

                  (o) With respect to any underwritten offering, the Stockholder
(if  shares of Common  Stock of the  Stockholder  are  included  in the  subject
registration statement) and the Corporation shall, in addition to the foregoing,
provide the  underwriter  of such offering with  customary  representations  and
warranties,  and indemnification and contribution,  in each instance as shall be
reasonably  requested  by the  underwriter,  provided,  however,  that  any such
agreement to indemnify an underwriter with respect to any preliminary prospectus
shall not inure to the  benefit of any such  underwriter  to the extent that any
loss, claim,  damage, cost, expense or liability of any such underwriter results
solely from an untrue  statement of material fact  contained in, or the omission
of a material fact from, such  preliminary  prospectus which untrue statement or
omission was corrected in the final  prospectus,  if such underwriter  failed to
send or give a copy of the final  prospectus to the person  asserting such loss,
claim,   damage,  cost,  expense  or  liability  at  or  prior  to  the  written
confirmation of the sale of such securities to such person, and provided further
that any such agreement by the Stockholder to indemnify an underwriter  shall be
on a several (and not joint)  basis in  proportion  to the number of  securities
sold by the  Stockholder in such  underwritten  offering and shall be limited in
amount to the net  proceeds  received by the  Stockholder  in such  underwritten
offering.

                  (p) If the  indemnification  provided for in this Section 1 is
unavailable  to any  indemnified  party  with  respect  to any  losses,  claims,
damages,  liabilities  or expenses  referred to therein,  then the  indemnifying
party, in lieu of indemnifying  such indemnified  party,  will contribute to the
amount paid or payable by such  indemnified  party,  as a result of such losses,
claims,  damages,   liabilities  or  expenses  (i)  in  such  proportion  as  is
appropriate to reflect the relative  benefits  received by the indemnified party
on the one hand, and the indemnifying party on the other hand, from the offering
or (ii) if the  allocation  provided  by clause  (i) above is not  permitted  by
applicable  law, in such  proportion as is  appropriate  to reflect not only the
relative benefits referred to in clause (i) above but also the relative fault of
the  indemnified  party on the one hand,  and of the  indemnifying  party on the
other hand, 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  benefits  received  by  the
indemnified party on the one hand, and the indemnifying party on the other hand,
shall be deemed to be in the same  proportion  as the  total  proceeds  from the
offering (net of sales  commissions)  received by the indemnified party relative
to such proceeds  received by the indemnifying  party. The relative fault of the
indemnified party on the one hand, and the indemnifying party on the other hand,

                                        7
<PAGE>

will be determined with 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  indemnified   party  or  the
indemnifying  party, and its relative intent,  knowledge,  access to information
and  opportunity  to correct or prevent such  statement or omission.  The amount
payable by a party as a result of the losses,  claims,  damages,  liabilities or
expenses referred to above will be deemed to include, subject to the limitations
set forth in Section 1(q) below, any legal or other fees or expenses  reasonably
incurred by such party in connection with  investigating or defending any action
or claim.

                  (q) The  indemnified  party and the  indemnifying  party agree
that it would not be just and equitable if contribution pursuant to this Section
1 were  determined  by pro rata  allocation or by any other method of allocation
which does not take into  account the  equitable  considerations  referred to in
Section  1(p). No person  committing  fraudulent  misrepresentation  (within the
meaning  of  Section  11(f)  of  the  Securities   Act)  shall  be  entitled  to
contribution or  indemnification  from any person not committing such fraudulent
misrepresentation.

                  2.                Legend and Compliance with Securities  Laws.
(a) The  stock  certificates  evidencing  the  shares  of  Common  Stock  of the
Stockholder subject to this Agreement shall bear a legend reading  substantially
as follows:

                           "The Shares  represented by this Certificate have not
                  been  registered  under the Securities Act of 1933, as amended
                  (the  "Act"),  but have been issued  pursuant to an  exemption
                  from such  registration.  Neither such Shares nor any interest
                  therein may be sold,  transferred,  pledged,  hypothecated  or
                  otherwise  disposed  of until  either (i) the  holder  thereof
                  shall  have  received  an  opinion  from  counsel   reasonably
                  satisfactory  to the Company that  registration  thereof under
                  the Act is not required or (ii) a registration statement under
                  the  Act  covering  such  Shares  or  such  interest  and  the
                  disposition  thereof  shall have  become  effective  under the
                  Act."

                  (b) In the event that a  registration  statement  covering the
shares of Common Stock of the  Corporation  owned by the  Stockholder  which are
subject to this Agreement  shall become  effective  under the Securities Act and
under any applicable  state securities laws or in the event that the Corporation
shall receive an opinion of counsel to the holder of such shares of Common Stock
in form and substance  reasonably  satisfactory to the Corporation  that, in the
opinion  of such  counsel,  the above  stated  legend is not,  or is no  longer,
necessary or required  under  applicable  law  (including,  without  limitation,
because of the availability of the exemption afforded by Rule 144(k) promulgated
under the Securities Act), the Corporation shall, or shall instruct its transfer
agents  and  registrars  to,  remove  the  above  stated  legend  from the stock
certificates  evidencing  such shares of Common Stock or issue new  certificates
without such legend in lieu thereof.

                  (c) The  Stockholder  consents  to the  Corporation  making  a
notation on its records and giving  instructions  to any transfer  agent for the
Common Stock in order to implement the  restrictions on transfer  established in
this Section 2.

                                        8
<PAGE>

                  3. Reorganization, Etc. The provisions of this Agreement shall
apply mutatis  mutandi to any shares of capital stock  resulting  from any stock
split or reverse split, stock dividend, reclassification of the capital stock of
the Corporation, consolidation, merger or reorganization of the Corporation, and
any shares or other  securities of the  Corporation or of any successor  company
which may be  received by the  Stockholder  (and/or  its  successors,  permitted
assigns,  legal  representatives and heirs) by virtue of its ownership of Common
Stock or other capital stock of the Corporation.

                  4.       Notices.  Any notice or other  communication
under this Agreement shall be in writing and sufficient if delivered personally,
by telecopy or sent by registered or certified mail, postage prepaid,  addressed
as follows:

                  If to the Corporation:

                           Capita Research Group, Inc.
                          591 Shippack Pike, Suite 300
                          Blue Bell, Pennsylvania 19422
                           Attention: President
                            Telecopy: (215) 619-0775
                            Telephone: (215) 619-7777

                  If to the Stockholder:

                           Mr. Jim Salim
                           3510 Turtle Creek Boulevard, #2D
                           Dallas, Texas 75219
                            Telecopy: (214) 526-0435
                            Telephone: (214) 526-0205

All such notices and  communications  shall be deemed to have been duly given at
the time delivered by hand, if personally  delivered,  upon receipt,  if sent by
telecopy,  or three (3) business days after being deposited in the mail, if sent
by registered or certified mail. Any party may, upon written notice to the other
parties hereto,  change the address to which notices or other  communications to
such party are to be delivered or mailed.

                  5. Counterparts.  This Agreement may be executed in any number
of  counterparts,  each of which shall be deemed an  original,  but all of which
taken together shall constitute one and the same instrument.

                  6.  Entire  Agreement.  This  Agreement  contains  the  entire
agreement  among the parties  hereto with respect to the subject  matter hereof.
This Agreement may be amended or modified or any provision  hereof may be waived
by a  written  agreement  between  the  Stockholder  and the  Corporation.  This
Agreement  supersedes  all prior  understandings,  negotiations  and  agreements
relating to the subject matter hereof.

                                        9
<PAGE>

                  7.  Governing  Law.  This  Agreement  shall be governed by and
construed  in  accordance  with the laws of the  State of Nevada  applicable  to
agreements made and to be performed  entirely within such State,  without regard
to any conflict of laws  principles  of such State which would apply the laws of
any other jurisdiction.

                  8.  Jurisdiction;  Waiver of Trial by Jury. THE PARTIES HERETO
HEREBY  IRREVOCABLY  SUBMIT TO THE  JURISDICTION  OF ANY  PENNSYLVANIA  STATE OR
UNITED STATES FEDERAL COURT SITTING IN THE CITY OF PHILADELPHIA  OVER ANY ACTION
OR  PROCEEDING  ARISING  OUT  OF OR  RELATING  TO  THIS  AGREEMENT,  AND  HEREBY
IRREVOCABLY AGREE THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE
HEARD AND DETERMINED IN SUCH  PENNSYLVANIA  STATE OR FEDERAL COURT.  THE PARTIES
AGREE THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE
AND MAY BE ENFORCED  IN OTHER  JURISDICTIONS  BY SUIT ON THE  JUDGMENT OR IN ANY
OTHER  MANNER  PROVIDED BY LAW.  THE PARTIES  FURTHER  WAIVE TRIAL BY JURY,  ANY
OBJECTION TO VENUE IN SUCH STATE AND ANY  OBJECTION TO ANY ACTION OR  PROCEEDING
IN SUCH STATE ON THE BASIS OF FORUM NON  CONVENIENS.  THE PARTIES  FURTHER AGREE
THAT ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL
BE BROUGHT ONLY IN A  PENNSYLVANIA  STATE OR UNITED STATES FEDERAL COURT SITTING
IN THE CITY OF PHILADELPHIA.

                  9.  Headings.  The headings in this  Agreement  are solely for
convenience of reference and shall not affect the  interpretation  of any of the
provisions hereof.

                  10.  Severability.  If any provision herein contained shall be
held to be illegal or unenforceable,  such holding shall not affect the validity
or enforceability of the other provisions of this Agreement.

                  11. Binding  Effect.  This Agreement shall be binding upon and
inure  to the  benefit  of the  Corporation,  the  Stockholder,  each  of  their
respective  successors,  permitted  assigns,  executors,  administrators,  legal
representatives and heirs, as applicable.

                  12. Construction. The parties hereto agree that this Agreement
is the product of negotiations  between  sophisticated  parties and individuals,
all of whom were represented by counsel,  and each of whom had an opportunity to
participate in, and did  participate in, the drafting of each provision  hereof.
Accordingly,  ambiguities  in this  Agreement,  if any,  shall not be  construed
strictly or in favor of or against any party  hereto but rather shall be given a
fair  and  reasonable   construction  without  regard  to  the  rule  of  contra
proferentum.

                                      * * *

                                       10
<PAGE>

                  IN WITNESS  WHEREOF,  each of the parties  hereto has executed
this Registration Rights Agreement on the date first above written.

                                CAPITA RESEARCH GROUP, INC.

                                By /s/ David B. Hunter
                                ----------------------
                                 David B. Hunter
                                Title: President

                                  /s/ Jim Salim
                                -------------
                                Jim Salim

                                       11

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