Document:

EXHIBIT B (FORM OF WARRANT)

THIS WARRANT AND THE SHARES OF COMMON STOCK  ISSUABLE UPON EXERCISE  HEREOF HAVE
NOT  BEEN  REGISTERED  UNDER  THE  SECURITIES  ACT  OF  1933,  AS  AMENDED  (THE
"SECURITIES ACT"), OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED
OR OTHERWISE  DISPOSED OF UNLESS  REGISTERED  UNDER THE SECURITIES ACT AND UNDER
APPLICABLE STATE SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN OPINION OF
ITS COUNSEL THAT  REGISTRATION OF SUCH  SECURITIES  UNDER THE SECURITIES ACT AND
UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.

                               WARRANT TO PURCHASE

                             SHARES OF COMMON STOCK

                                       OF

                            SALES ONLINE DIRECT, INC.

                        Date of Issuance: March 23, 2000

No.: 01                                                Number of Shares: 300,000
                             Expires March 31, 2005

     FOR VALUE RECEIVED,  subject to the provisions  hereinafter set forth,  the
undersigned,  Sales Online Direct, Inc., a Delaware  corporation  (together with
its successors and assigns, the "Issuer"), hereby certifies that Augustine Fund,
L.P., or its permitted and  registered  assigns is entitled to subscribe for and
purchase,  during the period  specified in this  Warrant,  up to 300,000  shares
(subject to adjustment as hereinafter provided) of the duly authorized,  validly
issued,  fully paid and  non-assessable  Common  Stock of the  Issuer  ("Warrant
Stock"),  at an  exercise  price per share  equal to the  Warrant  Price then in
effect,  subject,  however,  to the provisions and upon the terms and conditions
hereinafter set forth.  Capitalized terms used in this Warrant and not otherwise
defined herein shall have the respective meanings specified in Section 7 hereof.

     1. Term.  The right to subscribe  for and purchase  shares of Warrant Stock
represented  hereby  shall  commence on the date of issuance of this Warrant and
shall expire at 5:00 p.m.,  central  time,  on March 31, 2005 (such period being
the "Term").

     2.  Method of  Exercise  Payment:  Issuance of New  Warrant:  Transfer  and
Exchange.

     (a) Time of Exercise.  The purchase rights  represented by this Warrant may
be exercised in whole or in part at any time and from time to time  beginning on
the date which is ninety (90) days after the first day of the Term.

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     (b) Method of Exercise.  The Holder hereof may exercise  this  Warrant,  in
whole or in part,  by the  surrender  of this Warrant  (with the  exercise  form
attached hereto duly executed) at the principal office of the Issuer, and by the
payment  to the  Issuer  of an  amount of  consideration  therefor  equal to the
Warrant Price in effect on the date of such exercise multiplied by the number of
shares of  Warrant  Stock  with  respect  to which  this  Warrant  is then being
exercised,  payable at such Holder's  election (i) by certified or official bank
check or (ii) by surrender to the Issuer for  cancellation  of a portion of this
Warrant  representing  that number of unissued  shares of Warrant Stock which is
equal  to the  quotient  obtained  by  dividing  (A)  the  product  obtained  by
multiplying  the  Warrant  Price by the number of shares of Warrant  Stock being
purchased upon such exercise by (B) the difference  obtained by subtracting  the
Warrant  Price from the Per Share Market Value as of the date of such  exercise,
or (iii) by a combination  of the foregoing  methods of payment  selected by the
Holder of this Warrant.  In any case where the  consideration  payable upon such
exercise is being paid in whole or in part pursuant to the  provisions of clause
(ii) of this  subsection  (b), such  exercise  shall be  accompanied  by written
notice from the Holder of this Warrant  specifying the manner of payment thereof
and containing a calculation  showing the number of shares of Warrant Stock with
respect to which rights are being  surrendered  thereunder and the net number of
shares to be issued after giving effect to such surrender.

     (c)  Issuance of Stock  Certificates.  In the event of any  exercise of the
rights  represented by this Warrant in accordance  with and subject to the terms
and  conditions  hereof,  (i)  certificates  for the shares of Warrant  Stock so
purchased  shall be dated the date of such  exercise and delivered to the Holder
hereof within a reasonable  time,  not  exceeding  three Trading Days after such
exercise,  and the  Holder  hereof  shall be deemed for all  purposes  to be the
Holder  of the  shares  of  Warrant  Stock so  purchased  as of the date of such
exercise,  and (ii) unless this Warrant has expired, a new Warrant  representing
the  number of shares of  Warrant  Stock,  if any,  with  respect  to which this
Warrant shall not then have been exercised  (less any amount thereof which shall
have been  canceled  in  payment  or partial  payment  of the  Warrant  Price as
hereinabove  provided) shall also be issued to the Holder hereof at the Issuer's
expense within such time.

     (d)  Transferability  of  Warrant.  This  Warrant may be  transferred  by a
Purchaser  only in  accordance  with the terms of the Purchase  Agreement and in
compliance with applicable law.

     (e) Compliance with Securities Laws.

          (i) The Holder of this  Warrant,  by acceptance  hereof,  acknowledges
     that this Warrant or the shares of Warrant Stock to be issued upon exercise
     hereof are being acquired  solely for the Holder's own account and not as a
     nominee for any other party,  and for investment,  and that the Holder will
     not  offer,  sell or  otherwise  dispose  of this  Warrant or any shares of
     Warrant  Stock to be issued  upon  exercise  hereof  except  pursuant to an
     effective  registration  statement,  or  an  exemption  from  registration,
     under the Securities  Act  and  any  applicable  state securities laws. The
     Holder agrees to  abide  by the trading limitations imposed by Section 4(k)
     of the Purchase Agreement with respect to any sales of Warrant Stock.

          (ii) Except as provided in paragraph (iii) below, this Warrant and all
     certificates  representing  shares of Warrant  Stock  issued upon  exercise
     hereof shall be stamped or  imprinted  with a legend in  substantially  the
     following form:

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               THIS  WARRANT AND THE SHARES OF COMMON  STOCK  ISSUABLE
          UPON  EXERCISE  HEREOF  HAVE NOT BEEN  REGISTERED  UNDER THE
          SECURITIES ACT OF 1933, AS AMENDED (THE  "SECURITIES  ACT"),
          OR  ANY  STATE   SECURITIES   LAWS  AND  MAY  NOT  BE  SOLD,
          TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER
          THE SECURITIES  ACT AND UNDER  APPLICABLE  STATE  SECURITIES
          LAWS OR THE  ISSUER  SHALL HAVE  RECEIVED  AN OPINION OF ITS
          COUNSEL  THAT  REGISTRATION  OF SUCH  SECURITIES  UNDER  THE
          SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE  STATE
          SECURITIES LAWS IS NOT REQUIRED.

          (iii)  The  restrictions  imposed  by this  subsection  (e)  upon  the
     transfer  of this  Warrant or the shares of Warrant  Stock to be  purchased
     upon exercise hereof shall  terminate (A) when such  securities  shall have
     been resold pursuant to being  effectively  registered under the Securities
     Act,  (B) upon the Issuer's  receipt of an opinion of counsel,  in form and
     substance reasonably satisfactory to the Issuer, addressed to the Issuer to
     the  effect  that  such  restrictions  are no  longer  required  to  ensure
     compliance  with the Securities Act and state  securities  laws or (C) upon
     the  Issuer's  receipt of other  evidence  reasonably  satisfactory  to the
     Issuer that such registration and qualification under state securities laws
     is not required. Whenever such restrictions shall cease and terminate as to
     any such  securities,  the Holder thereof shall be entitled to receive from
     the Issuer (or its transfer agent and  registrar),  without  expense (other
     than  applicable  transfer taxes, if any), new Warrants (or, in the case of
     shares of Warrant Stock, new stock  certificates) of like tenor not bearing
     the  applicable  legend  required by paragraph  (ii) above  relating to the
     Securities Act and state securities laws.

     (f) Continuing Rights of Holder.  The Issuer will, at the time of or at any
time after each exercise of this Warrant, upon the request of the Holder hereof,
acknowledge  in writing the  extent,  if any, of its  continuing  obligation  to
afford to such  Holder all  rights to which such  Holder  shall  continue  to be
entitled  after such  exercise  in  accordance  with the terms of this  Warrant,
provided  that if any such  Holder  shall  fail to make any  such  request,  the
failure shall not affect the continuing  obligation of the Issuer to afford such
rights to such Holder.

     3. Stock Fully Paid: Reservation and Listing of Shares: Covenants.

     (a) Stock Fully Paid. The Issuer represents, warrants, covenants and agrees
that all shares of Warrant  Stock which may be issued upon the  exercise of this
Warrant or otherwise  hereunder  will,  upon issuance and payment of the Warrant
Price for such shares of Warrant  Stock,  be duly  authorized,  validly  issued,
fully paid and non-assessable and free from all taxes, liens and charges created
by or through  Issuer.  The Issuer further  covenants and agrees that during the
period within which this Warrant may be exercised,  the Issuer will at all times
have  authorized and reserved for the purpose of the issue upon exercise of this
Warrant  a  sufficient  number of shares  of  Common  Stock to  provide  for the
exercise of this Warrant.

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<PAGE>

     (b) Reservation.  If any shares of Common Stock required to be reserved for
issuance  upon  exercise  of this  Warrant or as  otherwise  provided  hereunder
require registration or qualification with any governmental  authority under any
federal or state law before  such  shares may be so issued,  the Issuer  will in
good faith use its best efforts as  expeditiously  as possible at its expense to
cause such shares to be duly  registered or qualified.  If the Issuer shall list
any shares of Common Stock on any securities  exchange or market it will, at its
expense,  list thereon,  maintain and increase when necessary such listing,  of,
all  shares of Warrant  Stock from time to time  issued  upon  exercise  of this
Warrant or as otherwise provided hereunder, and, to the extent permissible under
the applicable  securities  exchange rules, all unissued shares of Warrant Stock
which are at any time issuable hereunder,  so long as any shares of Common Stock
shall be so listed. The Issuer will also so list on each securities  exchange or
market, and will maintain such listing of, any other securities which the Holder
of this  Warrant  shall be entitled to receive upon the exercise of this Warrant
if at the time  any  securities  of the  same  class  shall  be  listed  on such
securities exchange or market by the Issuer.

     (c)  Covenants.  The  Issuer  shall not by any  action  including,  without
limitation,  amending the  Certificate  of  Incorporation  or the by-laws of the
Issuer,  or through  any  reorganization,  transfer  of  assets,  consolidation,
merger,  dissolution,  issue or sale of securities or any other action, avoid or
seek to avoid the observance or performance of any of the terms of this Warrant,
but will at all times in good faith assist in the carrying out of all such terms
and in the taking of all such  actions as may be  necessary  or  appropriate  to
protect  the  rights  of the  Holder  hereof  against  dilution  (to the  extent
specifically provided herein) or impairment.  Without limiting the generality of
the  foregoing,  the Issuer will (i) use its best  efforts to not permit the par
value,  if any, of its Common Stock to exceed the then effective  Warrant Price,
(ii) not amend or modify any provision of the  Certificate of  Incorporation  or
by-laws of the Issuer in any manner that would  adversely  affect in any way the
powers, preferences or relative participating,  optional or other special rights
of the Common Stock or which would adversely affect the rights of the Holders of
the Warrants, (iii) take all such action as may be reasonably necessary in order
that the Issuer may  validly  and  legally  issue  fully paid and  nonassessable
shares of Common Stock,  free and clear of any liens,  claims,  encumbrances and
restrictions  (other than as provided herein) upon the exercise of this Warrant,
and (iv) use its best efforts to obtain all such  authorizations,  exemptions or
consents from any public regulatory body having  jurisdiction  thereof as may be
reasonably  necessary to enable the Issuer to perform its obligations under this
Warrant.

     (d)  Loss,  Theft,  Destruction  of  Warrants.  Upon  receipt  of  evidence
satisfactory to the Issuer of the ownership of and the loss, theft,  destruction
or  mutilation  of any  Warrant  and,  in the  case of any such  loss,  theft or
destruction,  upon receipt of indemnity or security  satisfactory  to the Issuer
or, in the case of any such mutilation,  upon surrender and cancellation of such
Warrant,  the  Issuer  will  make and  deliver,  in lieu of such  lost,  stolen,
destroyed or mutilated Warrant, a new Warrant of like tenor and representing the
right to purchase the same number of shares of Common Stock.

     (e) Rights and Obligations  under the Registration  Rights  Agreement.  The
shares of Warrant Stock are entitled to the benefits and subject to the terms of
the  Registration  Rights  Agreement dated as of even date herewith  between the
Issuer and the Holders  listed on the  signature  pages thereof (as amended from
time to time, the  "Registration  Rights  Agreement").  The Issuer shall keep or
cause to be kept a copy of the Registration Rights Agreement, and any amendments

                                      -4-
<PAGE>

thereto, at its chief executive office and shall furnish, without charge, copies
thereof to the Holder upon reasonable request.

     4.  Adjustment of Warrant  Price and Warrant  Share Number.  The number and
kind of Securities purchasable upon the exercise of this Warrant and the Warrant
Price shall be subject to  adjustment  from time to time upon the  happening  of
certain events as follows:

     (a)  Recapitalization,   Reorganization,  Reclassification,  Consolidation,
Merger or Sale.  (i) In case the Issuer after the  Original  Issue Date shall do
any of the following (each, a "Triggering Event"): (a) consolidate with or merge
into any other  Person and the Issuer shall not be the  continuing  or surviving
corporation of such  consolidation or merger,  or (b) permit any other Person to
consolidate with or merge into the Issuer and the Issuer shall be the continuing
or surviving Person but, in connection with such  consolidation  or merger,  any
Capital Stock of the Issuer shall be changed into or exchanged for Securities of
any  other  Person  or  cash  or any  other  property,  or (c)  transfer  all or
substantially all of its properties or assets to any other Person, or (d) effect
a capital  reorganization or reclassification of its Capital Stock, then, and in
the case of each such Triggering Event,  proper provision shall be made so that,
upon the basis and the terms and in the manner  provided  in this  Warrant,  the
Holder of this Warrant  shall be entitled  (x) upon the  exercise  hereof at any
time after the consummation of such Triggering Event, to the extent this Warrant
is not exercised prior to such Triggering Event, to receive at the Warrant Price
in effect at the time  immediately  prior to the consummation of such Triggering
Event in lieu of the Common Stock  issuable  upon such  exercise of this Warrant
prior to such Triggering Event, the Securities,  cash and property to which such
Holder would have been entitled upon the  consummation of such Triggering  Event
if such Holder had exercised the rights represented by this Warrant  immediately
prior thereto,  subject to adjustments  (subsequent to such corporate action) as
nearly  equivalent  as possible  to the  adjustments  provided  for in Section 4
hereof or (y) to sell this Warrant  (or, at such  Holder's  election,  a portion
hereof) concurrently with the Triggering Event to the Person continuing after or
surviving such  Triggering  Event, or to the Issuer (if Issuer is the continuing
or  surviving  Person) at a sales  price  equal to the amount of cash,  property
and/or  Securities  to which a holder of the  number  of shares of Common  Stock
which would  otherwise  have been  delivered  upon the  exercise of this Warrant
would  have  been  entitled  upon  the  effective  date or  closing  of any such
Triggering Event (the "Event Consideration"), less the amount or portion of such
Event  Consideration  having a fair value equal to the  aggregate  Warrant Price
applicable to this Warrant or the portion hereof so sold.

     (ii)  Notwithstanding  anything  contained in this Warrant to the contrary,
the  Issuer  will  not  effect  any  Triggering  Event  unless,   prior  to  the
consummation  thereof, each Person (other than the Issuer) which may be required
to deliver any Securities, cash or property upon the exercise of this Warrant as
provided herein shall assume, by written instrument delivered to, and reasonably
satisfactory  to, the Holder of this Warrant,  (A) the obligations of the Issuer
under this  Warrant (and if the Issuer shall  survive the  consummation  of such
Triggering Event, such assumption shall be in addition to, and shall not release
the Issuer from,  any  continuing  obligations of the Issuer under this Warrant)
and (B) the obligation to deliver to such Holder such shares of Securities, cash
or property as, in accordance  with the foregoing  provisions of this subsection
(a),  such  Holder  shall be entitled  to  receive,  and such Person  shall have
similarly delivered to such Holder an opinion of counsel for such Person,  which
counsel  shall be  reasonably  satisfactory  to such  Holder,  stating that this
Warrant shall thereafter  continue in full force and effect and the terms hereof
(including,  without  limitation,  all of the provisions of this subsection (a))

                                      -5-
<PAGE>

shall be applicable to the Securities, cash or property which such Person may be
required to deliver  upon any  exercise of this  Warrant or the  exercise of any
rights pursuant hereto.

     (b) Subdivision or Combination of Shares.  If the Issuer, at any time while
this  Warrant is  outstanding,  shall  subdivide or combine any shares of Common
Stock,  (i) in case of  subdivision  of  shares,  the  Warrant  Price  shall  be
proportionately reduced (as at the effective date of such subdivision or, if the
Issuer  shall take a record of Holders of its Common Stock for the purpose of so
subdividing,  as at the applicable record date, whichever is earlier) to reflect
the  increase in the total  number of shares of Common  Stock  outstanding  as a
result of such subdivision,  or (ii) in the case of a combination of shares, the
Warrant Price shall be  proportionately  increased (as at the effective  date of
such  combination or, if the Issuer shall take a record of Holders of its Common
Stock  for the  purpose  of so  combining,  as at the  applicable  record  date,
whichever is earlier) to reflect the  reduction in the total number of shares of
Common Stock outstanding as a result of such combination.

     (c) Certain Dividends and  Distributions.  If the Issuer, at any time while
this Warrant is outstanding, shall:

          (i) Stock Dividends. Pay a dividend in, or make any other distribution
     to its stockholders (without  consideration  therefor) of, shares of Common
     Stock, the Warrant Price shall be adjusted, as at the date the Issuer shall
     take a record of the Holders of the Issuer's  Capital Stock for the purpose
     of receiving such dividend or other  distribution  (or if no such record is
     taken, as at the date of such payment or other distribution), to that price
     determined by multiplying the Warrant Price in effect  immediately prior to
     such record date (or if no such record is taken,  then immediately prior to
     such payment or other  distribution),  by a fraction  (1) the  numerator of
     which  shall be the total  number of  shares  of Common  Stock  outstanding
     immediately prior to such dividend or distribution, and (2) the denominator
     of which shall be the total  number of shares of Common  Stock  outstanding
     immediately after such dividend or distribution (plus in the event that the
     Issuer paid cash for  fractional  shares,  the number of additional  shares
     which would have been outstanding had the Issuer issued  fractional  shares
     in connection with said dividends); or

          (ii) Other Actions.  In the event that the Company shall offer options
     or rights to  subscribe  for  shares of Common  Stock,  or issue any Common
     Stock  Equivalents,  to all of its  holders  of Common  Stock,  then on the
     record date for such payment, distribution or offer or, in the absence of a
     record date, on the date of such payment, distribution or offer, the Holder
     shall  receive  what the Holder would have  received had it exercised  this
     Warrant  in full  immediately  prior to the  record  date of such  payment,
     distribution  or offer or, in the  absence  of a record  date,  immediately
     prior to the date of such payment, distribution or offer.

          (d) Issuance of Additional  Shares of Common Stock. If the Issuer,  at
any time while this Warrant is outstanding, shall issue any Additional Shares of
Common  Stock  (otherwise  than as provided  in the  foregoing  subsections  (a)
through (c) of this Section 4 or with  respect to Interest  Shares as defined in
the Purchase  Agreement),  at a price per share less than Per Share Market Value
then in effect or without  consideration,  then the Warrant Price upon each such
issuance  shall  be  adjusted  to  that  price  (rounded  to the  nearest  cent)
determined by multiplying the Warrant Price then in effect by a fraction:

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               (i) the  numerator  of which shall be equal to the sum of (A) the
     number  of  shares of Common  Stock  outstanding  immediately  prior to the
     issuance of such  Additional  Shares of Common Stock plus (B) the number of
     shares of Common  Stock  (rounded to the  nearest  whole  share)  which the
     aggregate  consideration  for the total number of such Additional Shares of
     Common Stock so issued would purchase at a price per share equal to the Per
     Share Market Value then in effect, and

               (ii) the  denominator  of which  shall be equal to the  number of
     shares of Common Stock  outstanding  immediately after the issuance of such
     Additional Shares of Common Stock.

The  provisions  of  this  subsection  (d)  shall  not  apply  under  any of the
circumstances for which an adjustment is provided in subsections (a), (b) or (c)
of this Section 4. No  adjustment  of the Warrant Price shall be made under this
subsection (d) upon the issuance of any Additional  Shares of Common Stock which
are issued pursuant to any Common Stock  Equivalent if upon the issuance of such
Common Stock  Equivalent  (x) any  adjustment  shall have been made  pursuant to
subsection (e) of this Section 4 or (y) no adjustment  was required  pursuant to
subsection  (e) of this Section 4. The  provisions of this  subsection (d) shall
not apply in the event  securities  are  issued (I) to the Holder as a result of
the  Holder's  acceptance  of the First Offer (as defined in Section 4(l) of the
Purchase  Agreement)  or (II) to a third  party  pursuant  to an  Exception  (as
defined in Section 4(l) of the Purchase Agreement). No adjustment of the Warrant
Price  shall be made under this  subsection  (d) in an amount less than $.01 per
share, but any such lesser adjustment shall be carried forward and shall be made
at the time and together  with the next  subsequent  adjustment,  if any,  which
together with any  adjustments so carried forward shall amount to $.01 per share
or more,  provided that upon any  adjustment of the Warrant Price as a result of
any dividend or distribution  payable in Common Stock or Convertible  Securities
or the  reclassification,  subdivision  or  combination  of Common  Stock into a
greater or smaller number of shares,  the foregoing figure of $.01 per share (or
such figure as last adjusted)  shall be adjusted (to the nearest  one-half cent)
in proportion to the adjustment in the Warrant Price.

     (e) Other  Provisions  Applicable to Adjustments  Under this Section 4. The
following  provisions  shall be applicable to the making of  adjustments  in the
Warrant Price hereinbefore provided in Section 4:

          (i) Computation of Consideration.  The  consideration  received by the
     Issuer  shall  be  deemed  to be the  following:  to the  extent  that  any
     Additional  Shares of Common Stock or any Common Stock Equivalents shall be
     issued for a cash consideration,  the consideration  received by the Issuer
     therefor,  or if such  Additional  Shares of Common  Stock or Common  Stock
     Equivalents are offered by the Issuer for  subscription,  the  subscription
     price,  or,  if such  Additional  Shares of  Common  Stock or Common  Stock
     Equivalents are sold to underwriters or dealers for public offering without
     a  subscription  offering,  the  public  offering  price,  in any such case
     excluding  any amounts paid or receivable  for accrued  interest or accrued
     dividends   and  without   deduction   of  any   compensation,   discounts,
     commissions,  or  expenses  paid  or  incurred  by  the  Issuer  for  or in
     connection  with the  underwriting  thereof or otherwise in connection with

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<PAGE>

     the  issue  thereof;  to the  extent  that  such  issuance  shall  be for a
     consideration  other than cash, then, except as herein otherwise  expressly
     provided,  the fair market value of such  consideration at the time of such
     issuance as determined in good faith by the Board.  The  consideration  for
     any Additional Shares of Common Stock issuable pursuant to any Common Stock
     Equivalents shall be the  consideration  received by the Issuer for issuing
     such Common Stock Equivalents, plus the additional consideration payable to
     the Issuer upon the  exercise,  conversion or exchange of such Common Stock
     Equivalents.  In case of the issuance at any time of any Additional  Shares
     of Common Stock or Common Stock  Equivalents in payment or  satisfaction of
     any  dividend  upon any class of  Capital  Stock of the  Issuer  other than
     Common  Stock,  the  Issuer  shall  be  deemed  to have  received  for such
     Additional   Shares  of  Common  Stock  or  Common  Stock   Equivalents   a
     consideration equal to the amount of such dividend so paid or satisfied. In
     any case in which the  consideration  to be received or paid shall be other
     than  cash,  the Board  shall  notify  the  Holder of this  Warrant  of its
     determination  of the  fair  market  value of such  consideration  prior to
     payment or accepting receipt thereof.  If, within thirty days after receipt
     of said notice,  the Majority  Holders shall notify the Board in writing of
     their objection to such  determination,  a determination of the fair market
     value  of such  consideration  shall  be made by an  Independent  Appraiser
     selected by the  Majority  Holders  with the  approval of the Board  (which
     approval shall not be unreasonably withheld), whose fees and expenses shall
     be paid by the Issuer.

          (ii) Outstanding Common Stock. The number of shares of Common Stock at
     any time outstanding shall (A) not include any shares thereof then directly
     or  indirectly  owned or held by or for the account of the Issuer or any of
     its  Subsidiaries,  and (B) be deemed to include all shares of Common Stock
     then issuable upon conversion, exercise or exchange of any then outstanding
     Common Stock Equivalents or any other evidences of Indebtedness (including,
     without limitation, the Notes), shares of Capital Stock or other Securities
     which are or may be at any time convertible into or exchangeable for shares
     of Common Stock or Other Common Stock.

     (h) Other Action  Affecting  Common Stock. In case after the Original Issue
Date the Issuer shall take any action affecting its Common Stock,  other than an
action  described in any of the  foregoing  subsections  (a) through (g) of this
Section 4,  inclusive,  and the failure to make any adjustment  would not fairly
protect the purchase  rights  represented by this Warrant in accordance with the
essential  intent and  principle of this Section 4, then the Warrant Price shall
be  adjusted  in such  manner  and at such time as the  Board may in good  faith
determine to be equitable in the circumstances.

     (i) Adjustment of Warrant Share Number. Upon each adjustment in the Warrant
Price pursuant to any of the foregoing provisions of this Section 4, the Warrant
Share  Number  shall be adjusted,  to the nearest  whole  share,  to the product
obtained by  multiplying  the Warrant  Share  Number  immediately  prior to such
adjustment in the Warrant  Price by a fraction,  the numerator of which shall be
the Warrant Price  immediately  before giving effect to such  adjustment and the
denominator of which shall be the Warrant Price  immediately after giving effect
to such adjustment.

     (j) Form of Warrant after Adjustments. The form of this Warrant need not be
changed  because of any  adjustments in the Warrant Price or the number and kind
of Securities purchasable upon the exercise of this Warrant.

                                      -8-
<PAGE>

     5.  Notice of  Adjustments.  Whenever  the Warrant  Price or Warrant  Share
Number  shall be adjusted  pursuant  to Section 4 hereof  (for  purposes of this
Section 5, each an  "adjustment"),  the Issuer  shall cause its Chief  Financial
Officer to prepare  and  execute a  certificate  setting  forth,  in  reasonable
detail,  the event requiring the adjustment,  the amount of the adjustment,  the
method by which such  adjustment was calculated  (including a description of the
basis on which the Board  made any  determination  hereunder),  and the  Warrant
Price and Warrant Share Number after giving effect to such adjustment, and shall
cause copies of such  certificate  to be delivered to the Holder of this Warrant
promptly after each adjustment. Any dispute between the Issuer and the Holder of
this Warrant with  respect to the matters set forth in such  certificate  may at
the option of the Holder of this  Warrant be  submitted  to one of the  national
accounting  firms  currently  known as the "big five"  selected  by the  Holder,
provided  that the Issuer shall have ten days after  receipt of notice from such
Holder  of its  selection  of such firm to object  thereto,  in which  case such
Holder shall select another such firm and the Issuer shall have no such right of
objection.  The firm  selected by the Holder of this  Warrant as provided in the
preceding  sentence shall be instructed to deliver a written  opinion as to such
matters to the Issuer and such Holder within thirty days after  submission to it
of such dispute.  Such opinion shall be final and binding on the parties hereto.
The fees and expenses of such accounting firm shall be paid by the Issuer.

     6. Fractional  Shares. No fractional shares of Warrant Stock will be issued
in connection  with an exercise  hereof;  rather the number of shares of Warrant
Stock shall be rounded up or down to the nearest whole share.

     7. Definitions.  For the purposes of this Warrant, the following terms have
the following meanings:

              "Additional  Shares of Common  Stock"  means all  shares of Common
       Stock issued by the Issuer after the Original  Issue Date, and all shares
       of Other Common,  if any,  issued by the Issuer after the Original  Issue
       Date, except any shares of Common Stock presently outstanding, any shares
       of Common  Stock issued upon the exercise of any existing or future stock
       options  or  grants  issued  to any  directors,  officers,  employees  or
       consultants  of the Issuer  under any  employee  incentive  stock  option
       and/or any stock option plan approved by the Board, the Warrant Stock and
       the Conversion Shares.

              "Board" shall mean the Board of Directors of the Issuer.

              "Capital  Stock"  means  and  includes  (i) any  and  all  shares,
       interests,  participations  or  other  equivalents  of  or  interests  in
       (however  designated)  corporate stock,  including,  without  limitation,
       shares of preferred or preference stock,  (ii) all partnership  interests
       (whether general or limited) in any Person which is a partnership,  (iii)
       all membership  interests or limited  liability  company interests in any
       limited liability company,  and (iv) all equity or ownership interests in
       any Person of any other type.

              "Certificate   of   Incorporation"   means  the   Certificate   of
       Incorporation  of the Issuer as in effect on the Original Issue Date, and
       as  hereafter  from  time  to time  amended,  modified,  supplemented  or
       restated in accordance  with the terms hereof and thereof and pursuant to
       applicable law.

                                      -9-

<PAGE>

              "Common  Stock" means the Common  Stock,  $.001 par value,  of the
       Issuer and any other Capital Stock into which such stock may hereafter be
       changed.

              "Common  Stock  Equivalent"  means  any  Convertible  Security  or
       warrant,  option  or  other  right  to  subscribe  for  or  purchase  any
       Additional Shares of Common Stock or any Convertible Security.

              "Convertible  Securities" means evidences of Indebtedness,  shares
       of  Capital  Stock  or  other  Securities  that are or may be at any time
       convertible into or exchangeable  for Additional  Shares of Common Stock.
       The term "Convertible Security" means one of the Convertible Securities.

              "Governmental Authority" means any governmental, regulatory or
     self-regulatory entity, department, body, official, authority,  commission,
     board,  agency or  instrumentality,  whether  federal,  state or local, and
     whether domestic or foreign.

              "Holders"  mean the  Persons  who shall  from time to time own any
       Warrant. The term "Holder" means one of the Holders.

              "Independent  Appraiser"  means a nationally  recognized  or major
       regional investment banking firm or firm of independent  certified public
       accountants of recognized  standing (which may be the firm that regularly
       examines  the  financial  statements  of the  Issuer)  that is  regularly
       engaged in the  business of  appraising  the  Capital  Stock or assets of
       corporations  or other  entities  as  going  concerns,  and  which is not
       affiliated with either the Issuer or the Holder of any Warrant.

              "Issuer" means Sales Online Direct, Inc., a Delaware  corporation,
       and its successors.

              "Majority  Holders"  means  at any time the  Holders  of  Warrants
       exercisable  for a majority of the shares of Warrant Stock issuable under
       the Warrants at the time outstanding.

              "Notes"  means the Series A 8%  Convertible  Notes issued and sold
       pursuant to the Purchase Agreement.

              "Conversion   Shares"   means  Common  Stock   issuable  upon  the
       conversion of any Notes.

              "Original  Issue Date" means the date first  written at the top of
       this Warrant.

              "Other  Common" means any other Capital Stock of the Issuer of any
       class  which  shall  be  authorized  at any time  after  the date of this
       Warrant  (other  than  Common  Stock)  and which  shall have the right to
       participate  in the  distribution  of  earnings  and assets of the Issuer
       without limitation as to amount.

              "OTC  Bulletin  Board"  means  the   over-the-counter   electronic
       bulletin board.

                                      -10-

<PAGE>

              "Person"  means  an  individual,  corporation,  limited  liability
       company,   partnership,   joint  stock  company,  trust,   unincorporated
       organization,  joint venture,  Governmental  Authority or other entity of
       whatever nature.

              "Per Share  Market  Value"  means on any  particular  date (a) the
       closing  bid price per share of the Common  Stock on such date on the OTC
       Bulletin Board or other  registered  national stock exchange on which the
       Common  Stock is then  listed or if there is no such  price on such date,
       then the closing bid price on such  exchange or  quotation  system on the
       date  nearest  preceding  such date,  or (b) if the  Common  Stock is not
       listed then on the OTC Bulletin  Board or any  registered  national stock
       exchange,  the  closing  bid  price  for a share of  Common  Stock in the
       over-the-counter  market, as reported by the OTC Bulletin Board or in the
       National Quotation Bureau Incorporated or similar  organization or agency
       succeeding to its functions of reporting prices) at the close of business
       on such date,  or (c) if the Common Stock is not then reported by the OTC
       Bulletin Board or the National Quotation Bureau  Incorporated (or similar
       organization or agency succeeding to its functions of reporting  prices),
       then the average of the "Pink Sheet"  quotes for the relevant  conversion
       period,  as determined in good faith by the holder,  or (d) if the Common
       Stock is not then  publicly  traded the fair  market  value of a share of
       Common Stock as determined by an Independent  Appraiser  selected in good
       faith by the Majority Holders; provided,  however, that the Issuer, after
       receipt of the  determination by such Independent  Appraiser,  shall have
       the right to select an additional Independent  Appraiser,  in which case,
       the fair market value shall be equal to the average of the determinations
       by each  such  Independent  Appraiser;  and  provided,  further  that all
       determinations  of the Per  Share  Market  Value  shall be  appropriately
       adjusted  for  any  stock  dividends,   stock  splits  or  other  similar
       transactions  during such period.  The determination of fair market value
       by an Independent  Appraiser shall be based upon the fair market value of
       the Issuer determined on a going concern basis as between a willing buyer
       and a willing  seller  and  taking  into  account  all  relevant  factors
       determinative of value, and shall be final and binding on all parties. In
       determining  the fair  market  value of any  shares of Common  Stock,  no
       consideration  shall be  given to any  restrictions  on  transfer  of the
       Common Stock imposed by agreement or by federal or state securities laws,
       or to the existence or absence of, or any limitations on, voting rights.

              "Purchase Agreement" means the Securities Purchase Agreement dated
       as of March 23, 2000, among the Issuer and the investors a party thereto.

              "Registration  Rights  Agreement"  has the  meaning  specified  in
       Section 3(e) hereof.

              "Securities"  means any debt or equity  securities  of the Issuer,
       whether now or hereafter authorized,  any instrument  convertible into or
       exchangeable  for  Securities or a Security,  and any option,  warrant or
       other right to purchase or acquire any Security.  "Security" means one of
       the Securities.

              "Securities Act" means the Securities Act of 1933, as amended,  or
       any similar federal statute then in effect.

                                       11

<PAGE>

              "Subsidiary"   means  any   corporation  at  least  50%  of  whose
       outstanding  Voting  Stock  shall  at  the  time  be  owned  directly  or
       indirectly by the Issuer or by one or more of its Subsidiaries, or by the
       Issuer and one or more of its Subsidiaries.

              "Trading  Day" means (a) a day on which the Common Stock is traded
       on the over the counter market as reported by the OTC Bulletin  Board, or
       (b) if the Common Stock is not listed on the OTC Bulletin Board, a day on
       which the Common Stock is traded on any other  registered  national stock
       exchange,  or (c) if the Common  Stock is not quoted on the OTC  Bulletin
       Board, a day on which the Common Stock is quoted in the  over-the-counter
       market as reported by the National Quotation Bureau  Incorporated (or any
       similar  organization  or agency  succeeding  its  functions of reporting
       prices);  provided,  however,  that in the event that the Common Stock is
       not  listed  or  quoted as set  forth in (a),  (b) and (c)  hereof,  then
       Trading Day shall mean any day except Saturday,  Sunday and any day which
       shall be a legal  holiday or a day on which banking  institutions  in the
       State of New York are  authorized or required by law or other  government
       action to close.

              "Term" has the meaning specified in Section 1 hereof.

              "Voting   Stock",   as  applied  to  the  Capital   Stock  of  any
       corporation,  means  Capital  Stock  of any  class  or  classes  (however
       designated)  having  ordinary voting power for the election of a majority
       of the members of the Board of  Directors  (or other  governing  body) of
       such  corporation,  other than  Capital  Stock  having such power only by
       reason of the happening of a contingency.

              "Warrants"  means the  Warrants  issued and sold  pursuant  to the
       Purchase Agreement,  including, without limitation, this Warrant, and any
       other warrants of like tenor issued in  substitution  or exchange for any
       thereof  pursuant to the provisions of Section 2(c),  2(d) or 2(e) hereof
       or of any of such other Warrants.

              "Warrant  Price" means  initially  120% of the lowest  closing bid
       price of the Common Stock for the five (5) the trading  days  immediately
       preceding  the  Closing  Date (as such term is  defined  in the  Purchase
       Agreement),  as such  price  may be  adjusted  from time to time as shall
       result from the adjustments specified in Section 4 hereof.

              "Warrant  Share Number" means at any time the aggregate  number of
       shares of Warrant Stock which may at such time be purchased upon exercise
       of this  Warrant,  after  giving  effect  to all  prior  adjustments  and
       increases  to such  number  made or  required  to be made under the terms
       hereof.

              "Warrant  Stock" means Common Stock  issuable upon exercise of any
       Warrant or  Warrants  or  otherwise  issuable  pursuant to any Warrant or
       Warrants.

         8.   Other Notices.  In case at any time:

              (A)    the Issuer shall make any  distributions  to the holders of
                     Common Stock; or

                                      -12-

<PAGE>

              (B)    the Issuer shall  authorize  the granting to all holders of
                     its Common Stock of rights to subscribe for or purchase any
                     shares of Capital Stock of any class or of any Common Stock
                     Equivalents or Convertible Securities or other rights; or

              (C)    there shall be any reclassification of the Capital Stock of
                     the Issuer; or

              (D)    there shall be any capital reorganization by the Issuer; or

              (E)    there shall be any (i)  consolidation  or merger  involving
                     the Issuer or (ii) sale,  transfer or other  disposition of
                     all or substantially all of the Issuer's  property,  assets
                     or  business  (except a merger or other  reorganization  in
                     which the Issuer shall be the surviving corporation and its
                     shares of Capital  Stock shall  continue to be  outstanding
                     and unchanged  and except a  consolidation,  merger,  sale,
                     transfer  or other  disposition  involving  a  wholly-owned
                     Subsidiary); or

              (F)    there  shall be a  voluntary  or  involuntary  dissolution,
                     liquidation  or  winding-up  of the  Issuer or any  partial
                     liquidation  of the  Issuer or  distribution  to holders of
                     Common Stock;

then, in each of such cases,  the Issuer shall give written notice to the Holder
of the date on which (i) the books of the Issuer  shall close or a record  shall
be taken for such dividend,  distribution  or  subscription  rights or (ii) such
reorganization,    reclassification,    consolidation,    merger,   disposition,
dissolution,  liquidation or  winding-up,  as the case may be, shall take place.
Such notice also shall  specify the date as of which the holders of Common Stock
of record shall  participate  in such  dividend,  distribution  or  subscription
rights, or shall be entitled to exchange their certificates for Common Stock for
securities   or   other   property   deliverable   upon   such   reorganization,
reclassification,  consolidation, merger, disposition,  dissolution, liquidation
or  winding-up,  as the case may be. Such notice  shall be given at least twenty
days prior to the action in question  and not less than twenty days prior to the
record  date or the date on which the  Issuer's  transfer  books  are  closed in
respect thereto.  The Issuer shall give to the Holder notice of all meetings and
actions by written  consent  of its  stockholders,  at the same time in the same
manner as notice of any  meetings  of  stockholders  is  required to be given to
stockholders who do not waive such notice (or, if such requires no notice,  then
two Trading Days written notice thereof describing the matters upon which action
is to be taken).  The Holder shall have the right, at Holder's expense,  to send
two  representatives  selected by it to each meeting,  who shall be permitted to
attend, but not vote at, such meeting and any adjournments thereof. This Warrant
entitles the Holder to receive  copies of all  financial  and other  information
distributed or required to be distributed to the holders of the Common Stock.

         9. Amendment and Waiver. Any term, covenant,  agreement or condition in
this  Warrant may be amended,  or  compliance  therewith  may be waived  (either
generally   or  in  a   particular   instance   and  either   retroactively   or
prospectively),  by a written instrument or written instruments  executed by the

                                      -13-
<PAGE>

Issuer and the Majority Holders;  provided,  however,  that no such amendment or
waiver  shall  reduce the Warrant  Share  Number,  increase  the Warrant  Price,
shorten the period  during  which this  Warrant may be  exercised  or modify any
provision of this Section 9 without the consent of the Holder of this Warrant.

        10. Governing Law.  This  warrant shall  be governed by and construed in
 accordance  with  the  laws  of the state of Delaware, without giving effect to
 principles of conflicts of law.

         11. Notices.  Any and all notices or other communications or deliveries
required or permitted to be provided  hereunder shall be in writing and shall be
deemed given and  effective on the earlier of (i) the date of  transmission,  if
such  notice or  communication  is  delivered  via  facsimile  at the  facsimile
telephone number specified for notice prior to 5:00 p.m., central standard time,
on a Business Day, (ii) the Business Day after the date of transmission, if such
notice or  communication  is delivered via facsimile at the facsimile  telephone
number specified for notice later than 5:00 p.m.,  central standard time, on any
date and earlier than 11:59 p.m., central standard time, on such date, (iii) the
Business Day  following the date of mailing,  if sent by  nationally  recognized
overnight  courier  service  or (iv)  actual  receipt  by the party to whom such
notice is required to be given. The addresses for such  communications  shall be
with respect to the Holder of this Warrant or of Warrant  Stock issued  pursuant
hereto,  addressed to such Holder at its last known address or facsimile  number
appearing  on the books of the  Issuer  maintained  for such  purposes,  or with
respect to the Issuer, addressed to:

                  Sales Online Direct, Inc.
                  4 Brussels Street
                  Worcester, Massachusetts 01610
                  Telephone Number:  781.821.0199 or 508.791.6710
                  Facsimile Number:  508.797.5398 and 305.489.6114
                  Attention: Greg Rotman, CEO

or to such other address or addresses or facsimile number or numbers as any such
party may most recently have  designated in writing to the other parties  hereto
by such notice.

         12. Warrant Agent.  The Issuer may, by written notice to each Holder of
this  Warrant,  appoint an agent having an office in New York,  New York for the
purpose  of issuing  shares of Warrant  Stock on the  exercise  of this  Warrant
pursuant to subsection (b) of Section 2 hereof, exchanging this Warrant pursuant
to  subsection  (d) of Section 2 hereof or replacing  this  Warrant  pursuant to
subsection (d) of Section 3 hereof, or any of the foregoing,  and thereafter any
such  issuance,  exchange or  replacement,  as the case may be, shall be made at
such office by such agent.

         13. Remedies.  The  Issuer  stipulates  that the remedies at law of the
Holder  of  this Warrant  in the  event  of any default or threatened default by
the Issuer in the performance  of  or  compliance  with any of the terms of this
Warrant are not and  will not  be  adequate  and  that,  to  the  fullest extent
permitted  by  law, such  terms may be specifically enforced by a decree for the
specific  performance  of  any  agreement  contained  herein or by an injunction
against a violation of any of the terms hereof or otherwise.

                                      -14-

<PAGE>

         14. Successors and Assigns.  This  Warrant  and  the  rights  evidenced
hereby  shall  inure  to  the benefit  of and be binding upon the successors and
assigns  of  the  Issuer, the  Holder hereof and (to the extent provided herein)
the Holders of Warrant Stock issued pursuant hereto, and shall be enforceable by
any such Holder or Holder of Warrant Stock.

         15. Modification and Severability.  If,  in any action before any court
or agency  legally  empowered to enforce any  provision  contained  herein,  any
provision  hereof is found to be  unenforceable,  then such  provision  shall be
deemed modified to the extent  necessary to make it enforceable by such court or
agency.  If any such provision is not  enforceable as set forth in the preceding
sentence,  the  unenforceability  of such  provision  shall not affect the other
provisions  of this  Warrant,  but this  Warrant  shall be  construed as if such
unenforceable provision had never been contained herein.

         16. Headings.  The  headings  of  the  Sections of this Warrant are for
convenience  of  reference only and shall not, for any purpose, be deemed a part
of this Warrant.

        IN WITNESS WHEREOF,  the  Issuer has executed this Warrant as of the day
and year first above written.

                                          SALES ONLINE DIRECT, INC.

                                         By:____________________________________
                                            Greg Rotman, Chief Executive Officer

                                      -15-

<PAGE>

                                  EXERCISE FORM

                            SALES ONLINE DIRECT, INC.

The undersigned, pursuant to the provisions of the within Warrant, hereby elects
to purchase _____ shares of Common Stock of  ___________________  covered by the
within Warrant. Check here if purchase will be by cashless exercise: ______. No.
of Warrant Shares surrendered pursuant to exercise: _______________.

Dated: _________________           Signature         ___________________________

                                   Address           _____________________

                                                     _____________________

                                   ASSIGNMENT

FOR VALUE RECEIVED,  _________________  hereby sells, assigns and transfers unto
__________________  the within Warrant and all rights evidenced thereby and does
irrevocably constitute and appoint _____________, attorney, to transfer the said
Warrant on the books of the within named corporation.

Dated: _________________            Signature        ___________________________

                                    Address          _____________________

                                                     _____________________

                               PARTIAL ASSIGNMENT

FOR VALUE RECEIVED,  _________________  hereby sells, assigns and transfers unto
__________________  the right to  purchase  _________  shares of  Warrant  Stock
evidenced  by the within  Warrant  together  with all rights  therein,  and does
irrevocably  constitute and appoint  ___________________,  attorney, to transfer
that part of the said Warrant on the books of the within named corporation.

Dated: _________________           Signature         ___________________________

                                   Address           _____________________

                                                     _____________________

                           FOR USE BY THE ISSUER ONLY:

This Warrant No. _____ cancelled (or transferred or exchanged) this _____ day of
___________,  _____,  shares  of Common  Stock  issued  therefor  in the name of
_______________,  Warrant No. ____ issued for ____ shares of Common Stock in the
name of _______________.

                                      -16-

<PAGE>EXHIBIT C

                         REGISTRATION RIGHTS AGREEMENT

          This  Registration  Rights Agreement (this  "Agreement") is made as of
March 23,  2000,  by and  between  Sales  Online  Direct,  Inc.,  a  corporation
organized  under the laws of the State of Delaware,  U.S.A.,  with  headquarters
located at 4 Brussels Street, Worcester, Massachusetts 01610 (the "Company") and
Augustine Fund,  L.P., an Illinois  limited  partnership  with its  headquarters
located at 141 West Jackson Boulevard,  Suite 2181, Chicago, Illinois 60604 (the
"Purchaser").

          This  Agreement  is being  entered  into  pursuant to that  Securities
Purchase Agreement,  dated as of the date hereof, by and between the Company and
the Purchaser (the "Purchase Agreement").

          The Company and the Purchaser hereby agree as follows:

     1.   Definitions.

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

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

          "Affiliate"  means, with respect to any Person,  any other Person that
directly or indirectly controls or is controlled by or under common control with
such Person.  For the  purposes of this  definition,  "control,"  when used with
respect to any Person, means the possession, direct or indirect, of the power to
direct or cause the  direction  of the  management  and policies of such Person,
whether  through the ownership of voting  securities,  by contract or otherwise;
and the terms of  "affiliated,"  "controlling"  and  "controlled"  have meanings
correlative to the foregoing.

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

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

          "Business Day" means any day except Saturday,  Sunday and any day that
shall be a legal holiday or a day on which banking  institutions in the state of
New York generally are authorized or required by law or other government actions
to close.

          "Commission" means the Securities and Exchange Commission.

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

          "Effectiveness Date" means with respect to the Registration  Statement
September 30, 2000.

<PAGE>

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

          "Event" shall have the meaning set forth in Section 7(e)(i).

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

          "Filing Date" means the 180th day following the Closing Date.

          "Holder" or "Holders" means the holder or holders, as the case may be,
from time to time of Registrable Securities.  "Indemnified Party" shall have the
meaning set forth in Section 5(c).

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

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

          "Note" or "Notes"  means the Series A Eight  Percent (8%)  Convertible
Notes of the  Company,  the form of which is shown as Exhibit A to the  Purchase
Agreement,  issued or to be issued to the  Purchaser  pursuant  to the  Purchase
Agreement.

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

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

          "Proceeding" means an action, claim, suit, investigation or proceeding
(including,  without limitation, an investigation or partial proceeding, such as
a deposition), whether commenced or threatened.

          "Prospectus"  means  the  prospectus   included  in  the  Registration
Statement  (including,  without  limitation,  a  prospectus  that  includes  any
information  previously  omitted from a prospectus filed as part of an effective
registration  statement  in  reliance  upon  Rule  430A  promulgated  under  the
Securities Act), as amended or supplemented by any prospectus  supplement,  with
respect  to  the  terms  of  the  offering  of any  portion  of the  Registrable
Securities covered by the Registration  Statement,  and all other amendments and
supplements to the  Prospectus,  including  post-effective  amendments,  and all
material incorporated by reference in such Prospectus.

          "Registrable Securities" means (i) the shares of Common Stock issuable
upon conversion of the Note (the "Conversion  Shares") or in payment of interest
in accordance  with the terms of the Note ("Interest  Shares"),  and exercise of
the Warrants (the "Warrant  Shares"),  and upon any stock split, stock dividend,
recapitalization  or similar  event  with  respect  to such  Conversion  Shares,
Interest  Shares,  Warrant  Shares or any Note,  (ii) the shares of Common

                                       2
<PAGE>

Stock issued upon any  redemption  of a Note  pursuant to the terms of the Notes
and (iii) any other dividend or other  distribution  with respect to, conversion
or exchange of, or in replacement of, Registrable Securities; provided, however,
that  Registrable  Securities  shall include (but not be limited to) a number of
shares of Common Stock (the "Required Number") equal to no less than the greater
of (x) 2,000,000  shares of Common Stock,  or (y) 200% of the maximum  number of
shares of Common Stock which would be issuable  upon  conversion  of the Not and
upon exercise of the Warrants, assuming such conversion and exercise occurred on
the Closing Date or the Filing Date,  whichever date would result in the greater
number of Registrable Securities.  Notwithstanding  anything contained herein to
the  contrary,  if the actual  number of shares of Common  Stock  issuable  upon
conversion  of the Note and upon  exercise of the Warrants  exceeds the Required
Number,  the term  "Registrable  Securities"  shall be  deemed to  include  such
additional  shares of Common  Stock as ar necessary to include all of the shares
of Common Stock issuable upon conversion of the Note, in payment of Interest (if
applicable) and upon exercise of the Warrants.

          "Registration  Statement"  means the  registration  statements and any
additional  registration  statements contemplated by Section 2(a), including (in
each case) the  Prospectus,  amendments  and  supplements  to such  registration
statement or  Prospectus,  including  pre- and  post-effective  amendments,  all
exhibits   thereto,   and  all  material   incorporated  by  reference  in  such
registration statement.

          "Rule 144" means Rule 144  promulgated by the  Commission  pursuant to
the  Securities  Act,  as such Rule may be  amended  from  time to time,  or any
similar  rule  or  regulation   hereafter   adopted  by  the  Commission  having
substantially the same effect as such Rule.

          "Rule 158" means Rule 158  promulgated by the  Commission  pursuant to
the  Securities  Act,  as such Rule may be  amended  from  time to time,  or any
similar  rule  or  regulation   hereafter   adopted  by  the  Commission  having
substantially the same effect as such Rule.

          "Rule 415" means Rule 415  promulgated by the  Commission  pursuant to
the  Securities  Act,  as such Rule may be  amended  from  time to time,  or any
similar  rule  or  regulation   hereafter   adopted  by  the  Commission  having
substantially the same effect as such Rule.

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

     2.   Registration.

          (a) Required Registration.  On or prior to the Filing Date the Company
shall prepare and file with the Commission a Registration Statement covering all
Registrable Securities for an offering to be made on a continuous basis pursuant
to Rule 415.  The  Registration  Statement  shall be on Form S-3  (except if the
Company is not then eligible to register for resale the  Registrable  Securities
on Form S-3,  in which case such  registration  shall be on another  appropriate
form in  accordance  herewith).  The Company shall use its best efforts to cause
the Registration  Statement to be declared effective under the Securities Act as
promptly as  possible  after the filing  thereof,  but in any event prior to the
Effectiveness  Date,  and  to  keep  such  Registration  Statement  continuously
effective  under the Securities Act until such date as is the earlier of (x) the
date when all Registrable Securities covered by such Registration Statement

                                      3

<PAGE>

have been sold or (y) the date on which the  Registrable  Securitie  may be sold
without any restriction  pursuant to Rule 144(k) as determined by the counsel to
the Company  pursuant to a written  opinion  letter,  addressed to the Company's
transfer  agent to such effect (the  "Effectiveness  Period").  If an additional
Registration  Statement  is  required to be filed  because the actual  number of
shares of Common Stock into which the Note is  convertible  and the Warrants are
exercisable exceeds the number of shares of Common Stock initially registered in
respect of the  Conversion  Shares,  the Interest  Shares and the Warrant Shares
based upon the  computation  on the Closing Date,  the Company shall have twenty
(20)  Business  Days to file such  additional  Registration  Statement,  and the
Company  shall  use its best  efforts  to  cause  such  additional  Registration
Statement to be declared effective by the Commission as soon as possible, but in
no event later than ninety (90) days after filing.

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

     3.   Registration Procedures.

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

          (a)  Prepare  and file with the  Commission  on or prior to the Filing
Date,  a  Registration  Statement  on Form  S-3 (or if the  Company  is not then
eligible  to register  for resale the  Registrable  Securities  on Form S-3 such
registration  shall be on another  appropriate  form in accordance  herewith) in
accordance  with the method or methods of  distribution  thereof as specified by
the  Holder  (except  if  otherwise  directed  by the  Holder),  and  cause  the
Registration  Statement  to become  effective  and remain  effective as provided
herein;  provided,  however,  that not less than five (5) Business Days prior to
the  filing of the  Registration  Statement  or any  related  Prospectus  or any
amendment  or  supplement   thereto   (including  any  document  that  would  be
incorporated therein by reference),  the Company shall (i) furnish to the Holder
and its  counsel,  copies of all such  documents  proposed  to be  filed,  which
documents  (other than those  incorporated  by reference) will be subject to the
review of the  Holder an its  counsel , and (ii) at the  request  of the  Holder
cause its officers  and  directors,  counsel and  independent  certified  public
accountants  to  respond  to  such  inquiries  as  shall  be  necessary,  in the
reasonable   opinion  of  counsel  to  such  Holder,  to  conduct  a  reasonable
investigation  within the meaning of the  Securities  Act. The Company shall not
file the  Registration  Statement or any such  Prospectus  or any  amendments or
supplements  thereto to which the Holder or its counsel shall reasonably  object
in writing within three (3) Business Days of their receipt thereof.

                                       4

<PAGE>

          (b)  (i)  Prepare  and  file  with  the  Commission  such  amendments,
including  post-effective  amendments,  to the Registration  Statement as may be
necessary to keep the Registration  Statement  continuously  effective as to the
applicable  Registrable  Securities for the Effectiveness Period and prepare and
file with the Commission  such  additional  Registration  Statements in order to
register for resale under the Securities Act all of the Registrable  Securities;
(ii) cause the related  Prospectus to be amended or supplemented by any required
Prospectus supplement, and as so supplemented or amended to be filed pursuant to
Rule  424 (or any  similar  provisions  then in  force)  promulgated  under  the
Securities  Act; (iii) respond as promptly as possible to any comments  received
from the Commission with respect to the Registration  Statement or any amendment
thereto and as promptly as possible  provide the Holder true and complete copies
of all  correspondence  from and to the Commission  relating to the Registration
Statement;  and (iv) comply in all material  respects with the provisions of the
Securities  Act and the  Exchange  Act with  respect to the  disposition  of all
Registrable   Securities  covered  by  the  Registration  Statement  during  the
applicable  period in accordance with the intended methods of disposition by the
Holder thereof set forth in the Registration  Statement as so amended or in such
Prospectus as so supplemented.

          (c)  Notify the Holder of  Registrable  Securities  to be sold and its
counsel as promptly as possible (and, in the case of (i)(A) below, not less than
five (5)  Business  Days prior to such  filing)  and (if  requested  by any such
Person)  confirm  such  notice in  writing no later  than one (1)  Business  Day
following  the day (i)(A) when a  Prospectus  or any  Prospectus  supplement  or
post-effective  amendment to the Registration Statement is proposed to be filed;
(B) when the Commission  notifies th Company whether there will be a "review" of
such Registration  Statement and whenever the Commission  comments in writing on
such Registration  Statement and (C) with respect to the Registration  Statement
or any post-effective amendment, when the same has become effective; (ii) of any
request by the Commission or any other Federal or state  governmental  authority
for amendments or supplements to the Registration Statement or Prospectus or for
additional  information;  (iii) of the  issuance by the  Commission  of any stop
order suspending the effectiveness of the Registration Statement covering any or
all of the Registrable  Securities or the initiation of any Proceedings for that
purpose;  (iv) if at any time any of the  representations  and warranties of the
Company  contained in any  agreement  contemplated  hereby ceases to be true and
correct in all  material  respects;  (v) of the  receipt  by the  Company of any
notification  with respect to the suspension of the  qualification  or exemption
from  qualification  of  any of  the  Registrable  Securities  for  sale  in any
jurisdiction,  or the  initiation  or  threatening  of any  Proceeding  for such
purpose;  and (vi) of the  occurrence of any event that makes any statement made
in the  Registration  Statement or  Prospectus or any document  incorporated  or
deemed to be incorporated therein by reference untrue in any material respect or
that requires any revisions to the Registration  Statement,  Prospectus or other
documents so that, in the case of the Registration  Statement or the Prospectus,
as the case may be, it will not contain any untrue  statement of a material fact
or omit to state any material fact required to be stated therein or necessary to
make the statements  therein, in the light of the circumstances under which they
were made, not misleading.

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

                                       5

<PAGE>

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

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

          (g) Promptly deliver to the Holder and its counsel, without charge, as
many  copies  of  the  Prospectus  or  Prospectuses   (including  each  form  of
prospectus)  and each  amendment  or  supplement  thereto  as such  Persons  may
reasonably  request;  and  the  Company  hereby  consents  to the  use  of  such
Prospectus  and each  amendment  or  supplement  thereto by each of the  selling
Holders in connection with the offering and sale of the  Registrable  Securities
covered by such Prospectus and any amendment or supplement thereto.

          (h) Prior to any public  offering of Registrable  Securities,  use its
best  efforts to register or qualify or cooperate  with the selling  Holders and
its counsel in connection with the registration or  qualification  (or exemption
from such  registration or  qualification)  of such  Registrable  Securities for
offer  and sale  under  the  securities  or Blue Sky laws of such  jurisdictions
within the United States as any Holder reasonably  requests in writing,  to keep
each such  registration  or  qualification  (or exemption  therefrom)  effective
during  the  Effectiveness  Period  and to do any and all  other  acts or things
necessary or advisable to enable the  disposition in such  jurisdictions  of the
Registrable Securities covered by a Registration Statement;  provided,  however,
that the Company  shall not be required to qualify  generally  to do business in
any  jurisdiction  where it is not then so  qualified or to take any action that
would subject it to general service of process in any such jurisdiction where it
is not then so subject or subject  the Company to any  material  tax in any such
jurisdiction where it is not then so subject.

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

          (j) Upon the occurrence of any event contemplated by Section 3(c)(vi),
as  promptly  as  possible,  prepare a  supplement  or  amendment,  including  a
post-effective  amendment,  to the Registration Statement or a supplement to the
related  Prospectus or any document  incorporated  or deemed to be  incorporated
therein  by  reference,  and file  any  other  required  document  so  that,  as
thereafter  delivered,  neither the  Registration  Statement nor such Prospectus
will contain an untrue  statement of a material fact or omit to state a material
fact

                                       6

<PAGE>

required to be stated therein or necessary to make the statements  therein,
in the light of the circumstances under which they were made, not misleading.

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

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

          (m) Require each selling Holder to furnish to the Company  information
regarding such Holder and the distribution of such Registrable  Securities as is
required by law to be disclosed in the Registration  Statement,  and the Company
may exclude from such registration the Registrable Securities of any such Holder
who fails to furnish  such  information  within a  reasonable  time prior to the
filing of each Registration  Statement,  supplemented  Prospectus and/or amended
Registration Statement.

          If  the  Registration  Statement  refers  to any  Holder  by  name  or
otherwise as the holder of any securities of the Company, then such Holder shall
have the right to require (if such reference to such Holder by name or otherwise
is not required by the  Securities  Act or any similar  federal  statute then in
force)  the  deletion  of the  reference  to such  Holder  in any  amendment  or
supplement to the  Registration  Statement  filed or prepared  subsequent to the
time that such reference ceases to be
required.

          Each  Holder  covenants  and  agrees  that  (i) it will  not  sell any
Registrable  Securities under the  Registration  Statement until it has received
copies of the  Prospectus as then amended or  supplemented  as  contemplated  in
Section 3(g) and notice from the Company that such  Registration  Statement  and
any  post-effective  amendments thereto have become effective as contemplated by
Section 3(c) and (ii) it and its officers, directors or Affiliates, if any, will
comply  with the  prospectus  delivery  requirements  of the  Securities  Act as
applicable to them in connection with sales of Registrable  Securities  pursuant
to the Registration Statement.

          Each Holder agrees by its acquisition of such  Registrable  Securities
that,  upon receipt of a notice from the Company of the  occurrence of any event
of the kind  described  in Section  3(c)(ii),  3(c)(iii),  3(c)(iv),  3(c)(v) or
3(c)(vi), such Holder will forthwith discontinue disposition of such Registrable
Securities under the  Registration  Statement until such Holder's receipt of the
copies of the  supplemented  Prospectus  and/or amended  Registration  Statement
contemplated  by Section 3(j), or until it is advised in writing (the  "Advice")
by the Company that the use of the applicable Prospectus may be resumed, and, in
either case, has received copies of any additional or supplemental  filings that
are incorporated or deemed to be incorporated by reference in such Prospectus or
Registration Statement.

                                       7

<PAGE>

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

     4.   Registration Expenses

          All fees and expenses  incident to the  performance  of or  compliance
with this Agreement by the Company shall be borne by the Company  whether or not
the Registration  Statement is filed or becomes effective and whether or not any
Registrable Securities are sold pursuant to the Registration Statement. The fees
and  expenses  referred to in the  foregoing  sentence  shall  include,  without
limitation, (i) all registration and filing fees (including, without limitation,
fees and expenses  (A) with respect to filings  required to be made with the OTC
Bulletin Board and each other securities exchange or market on which Registrable
Securities  are  required  hereunder  to be listed,  (B) with respect to filings
required to be made with the Commission, (C) with respect to filings required to
be made under the OTC Bulletin Board and (D) in compliance with state securities
or Blue Sky laws  (including,  without  limitation,  fees and  disbursements  of
counsel  for the  Holder  in  connection  with  Blue  Sky  qualification  of the
Registrable  Securities and  determination of the eligibility of the Registrable
Securities for investment under the laws of such jurisdictions as the Holders of
a majority of Registrable  Securities may  designate)),  (ii) printing  expenses
(including,   without   limitation,   expenses  of  printing   certificates  for
Registrable   Securities  and  of  printing  prospectuses  if  the  printing  of
prospectuses  is  requested  by the  holders  of a majority  of the  Registrable
Securities included in the Registration Statement),  (iii) messenger,  telephone
and delivery  expenses,  (iv) fees and disbursements of counsel for the Company,
(v)  Securities  Act  liability  insurance,  if  the  Company  so  desires  such
insurance,  and (vi) fees and  expenses  of all other  Persons  retained  by the
Company in connection with the consummation of the transactions  contemplated by
this Agreement,  including, without limitation, the Company's independent public
accountants  (including the expenses of any comfort letters or costs  associated
with the  delivery  b  independent  public  accountants  of a comfort  letter or
comfort letters).  In addition,  the Company shall be responsible for all of its
internal   expenses   incurred  in  connection  with  the  consummation  of  the
transactions contemplated by this Agreement (including,  without limitation, all
salaries  and  expenses  of its  officers  and  employees  performing  legal  or
accounting  duties),  the  expense of any annual  audit,  the fees and  expenses
incurred in  connection  with the listing of the  Registrable  Securities on any
securities exchange as required hereunder.

                                       8

<PAGE>

          5. Indemnification

          (a) Indemnification by the Company. The Company shall, notwithstanding
any termination of this Agreement,  indemnify and hold harmless each Holder, the
officers,  directors,  agents,  and  employees of each of them,  each Person who
controls any such Holder (within the meaning of Section 15 of the Securities Act
or Section  20 of the  Exchange  Act) and the  officers,  directors,  agents and
employees of each such  controlling  Person,  to the fullest extent permitted by
applicable  law,  from  and  against  any  and  all  losses,  claims,   damages,
liabilities,  costs  (including,  without  limitation,  costs of preparation and
attorneys' fees) and expenses (collectively, "Losses"), as incurred, arising out
of or  relating to any untrue or alleged  untrue  statement  of a material  fact
contained  in  the  Registration  Statement,  any  Prospectus  or  any  form  of
prospectus  or in any  amendment  or  supplement  thereto or in any  preliminary
prospectus, or arising out of or relating to any omission or alleged omission of
a  material  fact  required  to be  stated  therein  or  necessary  to make  the
statements  therein  (in the case of any  Prospectus  or form of  prospectus  or
supplement  thereto,  in the light of the  circumstances  under  which they were
made) not misleading,  except to the extent,  but only to the extent,  that such
untrue statements or omissions are based upon information  regarding such Holder
furnished  in writing to the Company by such Holder  expressly  for use therein,
which  information was reasonably relied on by the Company for use therein or to
the  extent  that such  information  relates  to such  Holder  or such  Holder's
proposed method of  distribution of Registrable  Securities and was reviewed and
expressly  approved  in  writing  by  such  Holder  expressly  for  use  in  the
Registration  Statement,  such  Prospectus  or such form of Prospectus or in any
amendment or supplement thereto. The Company shall notify the Holder promptly of
the  institution,  threat or assertion of any Proceeding of which the Company is
aware in connection with the transactions  contemplated by this Agreement.  Such
indemnity shall remain in full force and effect  regardless of any investigation
made by or on behalf of an  Indemnified  Party and shall survive the transfer of
the Registrable Securities by the Holder.

          (b) Indemnification by Holder. The Holders shall,  notwithstanding any
termination  of this  Agreement,  severally and not jointly,  indemnify and hold
harmless the Company, the directors, officers, agents and employees, each Person
who controls the Company (within the meaning of Section 15 of the Securities Act
and Section 20 of the Exchange  Act),  and the  directors,  officers,  agents or
employees  of such  controlling  Persons,  to the fullest  extent  permitted  by
applicable  law,  from and against all Losses,  as  incurred,  arising out of or
based upon any untrue statement of a material fact contained in the Registration
Statement, any Prospectus,  or any form of prospectus,  or arising solely out of
or based  solely  upon any  omission  of a material  fact  required to be stated
therein  or  necessary  to make  the  statements  therein  (in  the  case of any
Prospectus  or form of prospectus  or  supplement  thereto,  in the light of the
circumstances  under which they were made) not  misleading,  to the extent,  but
only to the extent,  that such untrue  statement  or omission is contained in or
omitted  from any  information  so  furnished  in writing by such  Holder to the
Company  specifically  for  inclusion  in the  Registration  Statement  or  such
Prospectus and that such  information was reasonably  relied upon by the Company
for  use  in the  Registration  Statement,  such  Prospectus  or  such  form  of
prospectus or to the extent that such information relates to such Holder or such
Holder's  proposed  method of  distribution  of  Registrable  Securities and was
reviewed and expressly  approved in writing by such Holder  expressly for use in
the  Registration  Statement,   such  Prospectus  or  such  form  of  Prospectus
Supplement.

                                       9

<PAGE>

          (c) Conduct of Indemnification Proceedings. If any Proceeding shall be
brought or asserted  against  any Person  entitled to  indemnity  hereunder  (an
"Indemnified  Party"),  such Indemnified  Party promptly shall notify the Person
from whom  indemnity  is sought (the  "Indemnifying  Party) in writing,  and the
Indemnifying Party shall assume the defense thereof, including the employment of
counsel reasonably  satisfactory to the Indemnified Party and the payment of all
fees and expenses incurre in connection with defense thereof; provided, that the
failure of any  Indemnified  Party to give such  notice  shall not  relieve  the
Indemnifying Party of its obligations or liabilities pursuant to this Agreement,
except (and only) to the extent that it shall be finally  determined  by a court
of  competent  jurisdiction  (which  determination  is not  subject to appeal or
further  review)  that  such  failure  shall  have  proximately  and  materially
adversely prejudiced the Indemnifying Party.

          An Indemnified  Party shall have the right to employ separate  counsel
in any such Proceeding and to participate in the defense  thereof,  but the fees
and expenses of such counsel shall be at the expense of such  Indemnified  Party
or Parties unless:  (1) the Indemnifying Party has agreed in writing to pay such
fees and expenses;  or (2) the Indemnifying  Party shall have failed promptly to
assume  the  defense  of  such  Proceeding  and  to  employ  counsel  reasonably
satisfactory to such Indemnified Party in any such Proceeding;  or (3) the named
parties to any such Proceeding  (including any impleaded  parties)  include both
such Indemnified  Party and the Indemnifying  Party, and such Indemnified  Party
shall have been  advised by counsel  that a conflict  of  interest  is likely to
exist if the same  counsel  were to  represent  such  Indemnified  Party and the
Indemnifying  Party (in which  case,  if such  Indemnified  Party  notifies  the
Indemnifying  Party in writing that it elects to employ separate  counsel at the
expense of the Indemnifying  Party,  the  Indemnifying  Party shall not have the
right to assume the defense  thereof and such counsel shall be at the expense of
the  Indemnifying  Party).  The  Indemnifying  Party shall not be liable for any
settlement of any such Proceeding  effected without its written  consent,  which
consent shall not be unreasonably withheld. No Indemnifying Party shall, without
the prior written consent of the Indemnified Party, effect any settlement of any
pending Proceeding in respect of which any Indemnified Party is a party,  unless
such settlement includes an unconditional release of such Indemnified Party from
all liability on claims that are the subject matter of such Proceeding.

          All fees and expenses of the Indemnified  Party (including  reasonable
fees and expenses to the extent  incurred in connection  with  investigating  or
preparing  to defend  such  Proceeding  in a manner not  inconsistent  with this
Section) shall be paid to the Indemnified  Party,  as incurred,  within ten (10)
Business Days of written notice thereof to the Indemnifying Party (regardless of
whether it is ultimately determined that an Indemnified Party is not entitled to
indemnification  hereunder;  provided,  that the Indemnifying  Party may require
such  Indemnified  Party to undertake to reimburse all such fees and expenses to
the extent it is finally  judicially  determined that such Indemnified  Party is
not entitled to indemnification hereunder).

          (d) Contribution. If a claim for indemnification under Section 5(a) or
5(b) is unavailable to an Indemnified Party because of a failure or refusal of a
governmental  authority to enforce such  indemnification  in accordance with its
terms (by reason of public policy or otherwise),  then each Indemnifying  Party,
in lieu of indemnifying such Indemnified  Party,  shall contribute to the amount
paid or payable by such Indemnified Party as a result of such Losses, in

                                       10

<PAGE>

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

          The parties  hereto  agree that it would not be just and  equitable if
contribution  pursuant  to  this  Section  5(d)  were  determined  by  pro  rata
allocation or by any other method of allocation  that does not take into account
the equitable considerations referred to in the immediately preceding paragraph.
No Person guilty of fraudulent  misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to  contribution  from any Person
who was not guilty of such fraudulent misrepresentation.

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

     6.   Rule 144.

          As long as any Holder owns Notes, Interest Shares,  Conversion Shares,
Warrants  or Warrant  Shares,  the Company  covenants  to timely file (or obtain
extensions in respect  thereof and file within the applicable  grace period) all
reports  required to be filed by the Company  after the date hereof  pursuant to
Section  13(a) or 15(d) of the Exchange  Act and to promptly  furnish the Holder
with true and complete  copies of all such  filings.  As long as any Holder owns
Notes,  Interest Shares,  Conversion Shares,  Warrants or Warrant Shares, if the
Company is not  required to file reports  pursuant to Section  13(a) or 15(d) of
the Exchange  Act, it will  prepare and furnish to the Holder and make  publicly
available in accordance  with Rule 144(c)  promulgated  under the Securities Act
annual and  quarterly  financial  statements,  together  with a  discussion  and
analysis  of such  financial  statements  in form  and  substance  substantially
similar to those that would  otherwise  be  required  to be  included  in report
required  by Section  13(a) or 15(d) of the  Exchange  Act, as well as any other
information  required  thereby,  in the time period that such filings would have
been  required to have been made under the  Exchange  Act.  The Company  further
covenants  that it will take such  further  action as any Holder may  reasonably
request,  all to the extent  required from time to time to enable such Person to
sell Interest Shares,  Conversion Shares and Warrant Shares without registration
under the Securities  Act within the  limitation of the  exemptions  provided by
Rule 144  promulgated  under the Securities Act,  including  providing any legal
opinions of counsel to the Company referred to in the Purchase  Agreement.  Upon
the request of any Holder,  the Company  shall  deliver to such Holder a written
certification  of a duly  authorized  officer as to whether it has complied with
such requirements.

                                       11

<PAGE>

     7.   Miscellaneous.

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

          (b) No  Inconsistent  Agreements.  Neither  the Company nor any of its
subsidiaries  has, as of the date hereof  entered into and  currently in effect,
nor shall the Company or any of its  subsidiaries,  on or after the date of this
Agreement,  enter into any  agreement  with  respect to its  securities  that is
inconsistent  with  the  rights  granted  to the  Holder  in this  Agreement  or
otherwise  conflicts with the provisions  hereof except for registration  rights
provisions  disclosed  in the  Company's  Disclosure  Schedule  to the  Purchase
Agreement.  Except for registration rights provisions disclosed in the Company's
Disclosure  Schedule to the Purchase  Agreement,  neither the Company nor any of
its subsidiaries has previously  entered into any agreement  currently in effect
granting any  registration  rights with respect to any of its  securities to any
Person.

          (c) [Intentionally Omitted.]

          (d)  Piggy-Back  Registrations.  If at any time  when  there is not an
effective  Registration  Statement  covering (i) Conversion  Shares and Interest
Shares or (ii) Warrant  Shares,  the Company shall determine to prepare and file
with the Commission a registration statement relating to an offering for its own
account or the account of others under the  Securities  Act of any of its equity
securities,  other than on Form S-4 or Form S-8 (each as  promulgated  under the
Securities  Act) or its the  equivalents  relating  to equity  securities  to be
issued solely in connection  with any  acquisition  of any entity or business or
equity  securities  issuable in connection  with stock option or other  employee
benefit plans,  the Company shall send to each holder of Registrable  Securities
written  notice of such  determination  and,  if within  thirty  (30) days after
receipt of such  notice,  any such  holder  shall so  request in writing  (which
request shall specify the Registrable  Securities  intended to be disposed of by
the Purchaser), the Company will cause the registration under the Securities Act
of all  Registrable  Securities  which  the  Company  has been so  requested  to
register by the holder, to the extent requisite to permit the disposition of the
Registrable  Securities so to be registered,  provided that if at any time after
giving  written  notice of its intention to register any securities and prior to
the effective date of the  registration  statement filed in connection with such
registration,  the Company shall  determine for any reason not to register or to
delay  registration of such securities,  the Company may, at its election,  give
written notice of such determination to such holder and,  thereupon,  (i) in the
case of a determination not to register,  shall be relieved of its obligation to
register any Registrable  Securities in connection with such  registration  (but
not from its  obligation to pay expenses in  accordance  with Section 4 hereof),
and (ii) in the case of a determination to delay

                                       12

<PAGE>

registering,  shall be permitted to delay registering any Registrable Securities
being registered  pursuant to this Section 7(d) for the same period as the delay
in  registering  such  other  securities.  The  Company  shall  include  in such
registration  statement  all or any  part of such  Registrable  Securities  such
holder requests to be registered;  provided, however, that the Company shall not
be required to register any Registrable Securities pursuant to this Section 7(d)
that are eligible for sale pursuant to Rule 144(k) of the Securities Act. In the
case of an  underwritten  public  offering,  if the managing  underwriter(s)  or
underwriter(s)  should  reasonably  object to the  inclusion of the  Registrable
Securities  in  such   registration   statement,   then  if  the  Company  after
consultation with the managing  underwriter should reasonably determine that the
inclusion of such Registrable Securities,  would materially adversely affect the
offering  contemplated  in  such  registration  statement,  and  based  on  such
determination  recommends  inclusion in such registration  statement of fewer or
none of the  Registrable  Securities  of the  Holder,  then  (x) the  number  of
Registrable  Securities of the Holders included in such  registration  statement
shall  be  reduced  pro-rata  among  such  Holders  (based  upon the  number  of
Registrable  Securities  requested to be included in the  registration),  if the
Company after consultation with the  underwriter(s)  recommends the inclusion of
fewer Registrable  Securities,  or (y) none of the Registrable Securities of the
Holder shall be included in such  registration  statement,  if the Company after
consultation  with the  underwriter(s)  recommends the inclusion of none of such
Registrable Securities;  provided, however, that if securities are being offered
for the  account  of other  persons or  entities  as well as the  Company,  such
reduction  shall not represent a greater  fraction of the number of  Registrable
Securities  intended  to be offered by the Holder  than the  fraction of similar
reductions imposed on such other persons or entities (other than the Company).

          (e)  Failure to File  Registration  Statement  and Other  Events.  The
Company  and the  Purchaser  agree that the Holder  will  suffer  damages if the
Registration  Statement  is not  filed on or prior  to the  Filing  Date and not
declared  effective by the Commission on or prior to the Effectiveness  Date and
maintained in the manner contemplated herein during the Effectiveness  Period or
if certain other events occur.  The Company and the Holder further agree that it
would not be feasible to ascertain  the extent of such  damages with  precision.
Accordingly,  if (i) the Registration  Statement is not filed on or prior to the
Filing Date, or is not declared  effective by the  Commission on or prior to the
Effectiveness  Date (or in the event an  additional  Registration  Statement  is
filed because the actual number of shares of Common Stock into which the Note is
convertible  and the  Warrants are  exercisable  exceeds the number of shares of
Common Stock initially registered is not filed and declared effective within the
time periods set forth in Section 2(a)),  or (ii) the Company fails to file with
the  Commission  a request  for  acceleration  in  accordance  with Rule  12dl-2
promulgated  under the Exchange  Act within five (5)  Business  Days of the date
that the Company is notified (orally or in writing, whichever is earlier) by the
Commission that a Registration  Statement will not be "reviewed," or not subject
to  further  review,  or (iii)  the  Registration  Statement  is filed  with and
declared effective by the Commission but thereafter ceases to be effective as to
all  Registrable  Securities  at  any  time  prior  to  the  expiration  of  the
Effectiveness  Period,  without  being  succeeded  immediately  by a  subsequent
Registration  Statement filed with and declared effective by the Commission,  or
(iv)  trading in the Common  Stock shall be  suspended or if the Common Stock is
delisted  from the OTC  Bulletin  Board for any reason for more than ninety (90)
days in the aggregate,  or (v) the conversion rights of the Holder are suspended
for any reason,  including  by the  Company,  or (vi) the Company  breaches in a
material  respect  any  covenant or other  material  term or  condition  to this
Agreement, the the Notes, the Purchase Agreement (other than a representation or
warranty

                                       13

<PAGE>

contained  therein)  or any  other  agreement,  document,  certificate  or other
instrument delivered in connection with the transactions contemplated hereby and
thereby,  and such breach  continues  for a period of thirty days after  written
notice thereof to the Company, or (vii) the Company has breached Section 3(n) of
this Agreement (any such failure or breach being referred to as an "Event"), the
Company  shall pay in cash as  liquidated  damages for such failure and not as a
penalty to the Holder an amount  equal to 2% of the  Purchase  Price paid by the
Holder  for all Notes and  Warrants  (or Common  Stock  held by the Holder  upon
conversion or exercise thereof)  purchased and then outstanding  pursuant to the
Purchase  Agreement for each thirty (30) day period until the  applicable  Event
has been cured,  which shall be pro rated for such periods less than thirty (30)
days (the "Periodic Amount").  Payments to be made pursuant to this Section 7(e)
shall be due and payable immediately upon demand in immediately available funds.
The parties agree that the Periodic Amount  represents a reasonable  estimate on
the part of the  parties,  as of the date of this  Agreement,  of the  amount of
damages that may be incurred by the Holder if the Registration  Statement is not
filed on or prior to the Filing Date or has not been  declared  effective by the
Commission on or prior to the  Effectiveness  Date and  maintained in the manner
contemplated  herein  during the  Effectiveness  Period or if any other Event as
described herein has occurred.

          (f) Specific Enforcement, Consent to Jurisdiction.

              (i) The  Company  and the  Purchaser  acknowledge  and agree  that
irreparable  damage would occur in the event that any of the  provisions of this
Registration  Rights  Agreement or the Purchase  Agreement were not performed in
accordance  with  their  specific  terms  or  were  otherwise  breached.  It  is
accordingly  agreed that the  parties  shall be  entitled  to an  injunction  or
injunctions to prevent or cure breaches of the  provisions of this  Registration
Rights Agreement or the Purchase Agreement and to enforce specifically the terms
and provisions hereof or thereof,  this being in addition to any other remedy to
which any of them may be entitled by law or equity.

              (ii) Each of the Company and the Purchaser (i) hereby  irrevocably
submits to the  jurisdiction  of the United States District Court sitting in the
County of Cook,  State of  Illinois  for the  purposes  of any  suit,  action or
proceeding  arising  out of or  relating  to  this  Agreement  or  the  Purchase
Agreement  and (ii)  hereby  waives,  and agrees not to assert in any such suit,
action  or  proceeding,  any  claim  that it is not  personally  subject  to the
jurisdiction of such court, that the suit, action or proceeding is brought in an
inconvenient  forum or that the  venue of the  suit,  action  or  proceeding  is
improper. Each of the Company and the Purchaser consents to process being served
in any such suit,  action or  proceeding by mailing a copy thereof to such party
at the address in effect for notices to it under this  Agreement and agrees that
such service shall constitute good and sufficient  service of process and notice
thereof.  Nothing in this  Section 7(f) shall affect or limit any right to serve
process in any other manner permitted by law.

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

                                       14

<PAGE>

be given by Holders  of at least a majority  of the  Registrable  Securities  to
which such waiver or consent relates; provided,  however, that the provisions of
this sentence may not be amended, modified, or supplemented except in accordance
with the provisions of the immediately preceding sentence.

          (h) Notices. Any and all notices or other communications or deliveries
required or permitted to be provided  hereunder shall be in writing and shall be
deemed given and  effective on the earlier of (i) the date of  transmission,  if
such  notice or  communication  is  delivered  via  facsimile  at the  facsimile
telephone number specified for notice prior to 5:00 p.m., central standard time,
on a Business Day, (ii) the Business Day after the date of transmission, if such
notice or  communication  is delivered via facsimile at the facsimile  telephone
number specified for notice later than 5:00 p.m.,  central standard time, on any
date and earlier than 11:59 p.m., central time, on such date, (iii) the Business
Day following the date of mailing,  if sent by nationally  recognized  overnight
courier  service  or (iv)  actual  receipt  by the party to whom such  notice is
required  to be  given.  The  addresses  for such  communications  shall be with
respect  to each  party at such  party's  address  as set forth in the  Purchase
Agreement or to such other  address or addresses or facsimile  number or numbers
as any such  party may most  recently  have  designated  in writing to the other
parties hereto by such notice.

          (i) Successors and Assigns.  This Agreement  shall be binding upon and
inure to the benefit of the parties and their  successors and permitted  assigns
and shall inure to the benefit of the Holder and its successors and assigns. The
Company  may not  assign  this  Agreement  or any of its  rights or  obligations
hereunder    without    the   prior    written    consent    of   the    Holder.

          (j)  Assignment  of  Registration  Rights.  The rights of each  Holder
hereunder,  including  the  right  to  have  the  Company  register  for  resale
Registrable Securities in accordance with the terms of this Agreement,  shall be
automatically  assignable by each Holder to any transferee of such Holder of all
or a portion  of the Notes or the  Registrable  Securities  if:  (i) the  Holder
agrees in writing with the  transferee or assignee to assign such rights,  and a
copy of such  agreement  is furnished  to the Company  within a reasonable  time
after such assignment,  (ii) the Company is, within a reasonable time after such
transfer  or  assignment,  furnished  with  written  notice  of (a) the name and
address of such  transferee or assignee,  and (b) the securities with respect to
which  such  registration  rights  are  being  transferred  or  assigned,  (iii)
following such transfer or assignment the further disposition of such securities
by the  transferee  or  assignees is  restricted  under the  Securities  Act and
applicable  state  securities  laws,  (iv) at or  before  the time  the  Company
receives the written  notice  contemplated  by clause (ii) of this Section,  the
transferee or assignee  agrees in writing with the Company to be bound by all of
the provisions of this Agreement,  and (v) such transfer shall have been made in
accordance  with the  applicable  requirements  of the  Purchase  Agreement.  In
addition, each Holder shall have the right to assign its rights hereunder to any
other Person with the prior written consent of the Company,  which consent shall
not be  unreasonably  withheld.  The  rights to  assignment  shall  apply to the
Holders (and to subsequent) successors and assigns.

          (k)  Counterparts.  This  Agreement  may be  executed in any number of
counterparts,  each of which when so executed  shall be deemed to be an original
and, all of which taken together shall constitute one and the same Agreement. In
the event that any signature is

                                       15

<PAGE>

delivered by facsimile transmission, such signature shall create a valid binding
obligation  of the  party  executing  (or on  whose  behalf  such  signature  is
executed) the same with the same force and effect as if such facsimile signature
were the original thereof.

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

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

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

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

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

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

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

                            [SIGNATURE PAGE FOLLOWS]

                                       16
<PAGE>

          [SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT DATED AS OF
                                MARCH 23, 2000]

                                   SALES ONLINE DIRECT, INC.

                                   By:  /s/Greg Rotman
                                        ----------------------------------------
                                        Name: Greg Rotman
                                        Title:  Chief Executive Officer

                                   AUGUSTINE FUND, L.P.

                                   By: Augustine Capital Management, L.L.C.

                                   By: /s/Thomas F. Duszynski
                                       -----------------------------------------
                                       Mr. Thomas F. Duszynski, Member

<PAGE>

                                    EXHIBIT A

            FORM OF NOTICE OF EFFECTIVENESS OF REGISTRATION STATEMENT

[NAME AND ADDRESS OF TRANSFER AGENT]
Attn:  _____________

The Augustine Fund, L.P.
C/o Augustine Capital Mangement, L.L.C.
141 West Jackson Blvd., Suite 2182
Chicago, Illinois 60604
Attn: Mr. Thomas F. Duszynski

                  Re:   Sales Online Direct, Inc.

Ladies and Gentlemen:

          We are counsel to Sales Online  Direct,  Inc., a Delaware  corporation
(the  "Company"),  and have  represented  the  Company in  connection  with that
certain Securities  Purchase Agreement (the "Purchase  Agreement"),  dated as of
March 23, 2000,  by and among the Company and the  Purchaser  named therein (the
"Holder")  pursuant to which the Company issued to the Holder its Series A Eight
Percent  (8%)   Convertible   Notes  (the  "Notes")  along  with  warrants  (the
"Warrants") to purchase shares of the Company's commo stock, $.001 par value per
share (the "Common Stock").  Pursuant to the Purchase Agreement, the Company has
also  entered  into  a  Registration  Rights  Agreement  with  the  Holder  (the
"Registration  Rights  Agreement"),   dated  of  even  date  with  the  Purchase
Agreement, pursuant to which the Company agreed, among other things, to register
the Registrable  Securities (as defined in the Registration  Rights  Agreement),
including the shares of Common Stock  issuable upon  conversion of the Notes and
exercise of the  Warrants,  under the  Securities  Act of 1933,  as amended (the
"1933 Act"). In connection with the Company's obligations under the Registration
Rights Agreement,  on , 2000, the Company filed a Registration Statement on Form
___ (File No. 333- ) (the  "Registration  Statement")  with the  Securities  and
Exchange  Commission  (the  "SEC")  relating  to the  resale of the  Registrable
Securities which names the Holder as a selling stockholder thereunder.

          In connection  with the foregoing,  we advise you that a member of the
SEC's  staff has  advised  us by  telephone  that the SEC has  entered  an order
declaring the Registration Statement effective under the 1933 Act at [ENTER TIME
OF  EFFECTIVENESS]  on [ENTER DATE OF  EFFECTIVENESS]  and we have no knowledge,
after  telephonic  inquiry of a member of the SEC's  staff,  that any stop order
suspending its  effectiveness  has been issued or that any  proceedings for that
purpose  are  pending  before,  or  threatened  by, the SEC and the  Registrable
Securities  are  available  for  resale  under  the  1933  Act  pursuant  to the
Registration Statement.

                                                 Very truly  yours,
                                                 [COMPANY  COUNSEL]
                                                 By: /s/

<PAGE>

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