Document:

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                                                                    EXHIBIT 10.5

                          NUANCE COMMUNICATIONS, INC.

                       2000 EMPLOYEE STOCK PURCHASE PLAN

                        AS ADOPTED ON FEBRUARY 1, 2000

          The following constitute the provisions of the 2000 Employee Stock
Purchase Plan of Nuance Communications.

          1.   Purpose.  The purpose of the Plan is to provide employees of the
               -------
Company and its Designated Subsidiaries with an opportunity to purchase Common
Stock of the Company through accumulated payroll deductions.  It is the
intention of the Company to have the Plan qualify as an "Employee Stock Purchase
Plan" under Section 423 of the Internal Revenue Code of 1986, as amended.  The
provisions of the Plan, accordingly, shall be construed so as to extend and
limit participation in a manner consistent with the requirements of that section
of the Code.

          2.   Definitions.
               -----------

               (a)  "Board" shall mean the Board of Directors of the Company
                     -----
or any committee thereof designated by the Board of Directors of the Company in
accordance with Section 14 of the Plan.

               (b)  "Code" shall mean the Internal Revenue Code of 1986, as
                     ----
amended.

               (c)  "Common Stock" shall mean the common stock of the Company.
                     ------------

               (d)  "Company" shall mean Nuance Communications, Inc. and any
                     -------
Designated Subsidiary of the Company.

               (e)  "Compensation" shall mean all base straight time gross
                     ------------
earnings, including base salary or hourly wage, and variable compensation,
including commissions and bonuses, or overtime for hourly workers, but not
including sign-on bonuses, relocation bonuses or payments, employee hiring
referral bonuses, spot bonuses, expatriate assignment stipends or bonuses, or
other out-of-plan compensation.

               (f)  "Designated Subsidiary" shall mean any Subsidiary that has
                     ---------------------
been designated by the Board from time to time in its sole discretion as
eligible to participate in the Plan.

               (g)  "Employee" shall mean any individual who is an Employee of
                     --------
the Company for tax purposes whose customary employment with the Company is at
least twenty (20) hours per week and more than five (5) months in any calendar
year. For purposes of the Plan, the employment relationship shall be treated as
continuing intact while the individual is on sick leave or other leave of
absence approved by the Company. Where the period of leave exceeds 90 days and
the individual's right to reemployment is not guaranteed either by statute or by
contract, the employment relationship shall be deemed to have terminated on the
91st day of such leave.
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          (h)  "Enrollment Date" shall mean the first Trading Day of each
                ---------------
Offering Period.

          (i)  "Exercise Date" shall mean the first Trading Day on or after
                -------------
May 1 and November 1 of each year.

          (j)  "Fair Market Value" shall mean, as of any date, the value of
                -----------------
Common Stock determined as follows:

               (i)   If the Common Stock is listed on any established stock
exchange or a national market system, including without limitation the Nasdaq
National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its
Fair Market Value shall be the closing sales price for such stock (or the
closing bid, if no sales were reported) as quoted on such exchange or system on
the date of determination, as reported in The Wall Street Journal or such other
source as the Board deems reliable;

               (ii)  If the Common Stock is regularly quoted by a recognized
securities dealer but selling prices are not reported, its Fair Market Value
shall be the mean of the closing bid and asked prices for the Common Stock on
the date of determination, as reported in The Wall Street Journal or such other
source as the Board deems reliable;

               (iii) In the absence of an established market for the Common
Stock, the Fair Market Value thereof shall be determined in good faith by the
Board; or

               (iv)  For purposes of the Enrollment Date of the first Offering
Period under the Plan, the Fair Market Value shall be the initial price to the
public as set forth in the final prospectus included within the registration
statement in Form S-1 filed with the Securities and Exchange Commission for the
initial public offering of the Company's Common Stock (the "Registration
Statement").

          (k)  "Offering Periods" shall mean the periods of approximately
                ----------------
twenty-four (24) months during which an option granted pursuant to the Plan may
be exercised, commencing on the first Trading Day on or after May 1 and November
1 of each year and terminating on the first Trading Day on or after the May 1
and November 1 Offering Period commencement date approximately twenty-four
months later; provided, however, that the first Offering Period under the Plan
shall commence with the first Trading Day on or after the date on which the
Securities and Exchange Commission declares the Company's Registration Statement
effective and ending on the first Trading Day on or after May 1, 2002. The
duration and timing of Offering Periods may be changed pursuant to Section 4 of
this Plan.

          (l)  "Plan" shall mean this 2000 Employee Stock Purchase Plan.
                ----

          (m)  "Purchase Period" shall mean the approximately six month period
                ---------------
commencing  on one Exercise Date and ending with the next Exercise Date, except
that the first Purchase Period of any Offering Period shall commence on the
Enrollment Date and end with the next Exercise Date.

                                      -2-
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          (n)  "Purchase Price" shall mean 85% of the Fair Market Value of a
                --------------
share of Common Stock on the Enrollment Date or on the Exercise Date, whichever
is lower; provided however, that the Purchase Price may be adjusted by the Board
pursuant to Section 20.

          (o)  "Reserves" shall mean the number of shares of Common Stock
                --------
covered by each option under the Plan which have not yet been exercised and the
number of shares of Common Stock which have been authorized for issuance under
the Plan but not yet placed under option.

          (p)  "Subsidiary" shall mean a corporation, domestic or foreign, of
                ----------
which not less than 50% of the voting shares are held by the Company or a
Subsidiary, whether or not such corporation now exists or is hereafter organized
or acquired by the Company or a Subsidiary.

          (q)  "Trading Day" shall mean a day on which national stock exchanges
                -----------
and the Nasdaq System are open for trading.

     3.   Eligibility.
          -----------

          (a)  Any Employee who shall be employed by the Company on a given
Enrollment Date shall be eligible to participate in the Plan.

          (b)  Any provisions of the Plan to the contrary notwithstanding, no
Employee shall be granted an option under the Plan (i) to the extent that,
immediately after the grant, such Employee (or any other person whose stock
would be attributed to such Employee pursuant to Section 424(d) of the Code)
would own capital stock of the Company and/or hold outstanding options to
purchase such stock possessing five percent (5%) or more of the total combined
voting power or value of all classes of the capital stock of the Company or of
any Subsidiary, or (ii) to the extent that his or her rights to purchase stock
under all employee stock purchase plans of the Company and its subsidiaries
accrues at a rate which exceeds Twenty-Five Thousand Dollars ($25,000) worth of
stock (determined at the fair market value of the shares at the time such option
is granted) for each calendar year in which such option is outstanding at any
time.

     4.   Offering Periods.  The Plan shall be implemented by consecutive,
          ----------------
overlapping Offering Periods with a new Offering Period commencing on the first
Trading Day on or after May 1 and November 1 each year, or on such other date as
the Board shall determine, and continuing thereafter until terminated in
accordance with Section 20 hereof; provided, however, that the first Offering
Period under the Plan shall commence with the first Trading Day on or after the
date on which the Securities and Exchange Commission declares the Company's
Registration Statement effective and ending on the first Trading Day on or after
May 1, 2002.  The Board shall have the power to change the duration of Offering
Periods (including the commencement dates thereof) with respect to future
offerings without shareholder approval if such change is announced at least five
(5) days prior to the scheduled beginning of the first Offering Period to be
affected thereafter.

     5.   Participation.
          -------------

          (a)  An eligible Employee may become a participant in the Plan by
completing a subscription agreement authorizing payroll deductions in the form
of Exhibit A to this Plan and filing it with the Company's payroll office prior
   ---------
to the applicable Enrollment Date.

                                      -3-
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          (b)  Payroll deductions for a participant shall commence on the first
payroll following the Enrollment Date and shall end on the last payroll in the
Offering Period to which such authorization is applicable, unless sooner
terminated by the participant as provided in Section 10 hereof.

     6.   Payroll Deductions.
          ------------------

          (a)  At the time a participant files his or her subscription
agreement, he or she shall elect to have payroll deductions made on each pay day
during the Offering Period in an amount not exceeding 15% of the Compensation
which he or she receives on each pay day during the Offering Period; provided,
however, that should a pay day occur on an Exercise Date, a participant shall
have the payroll deductions made on such day applied to his or her account under
the new Offering Period or Purchase Period, as the case may be.

          (b)  All payroll deductions made for a participant shall be credited
to his or her account under the Plan and shall be withheld in whole percentages
only. A participant may not make any additional payments into such account.

          (c)  A participant may discontinue his or her participation in the
Plan as provided in Section 10 hereof, or may increase or decrease the rate of
his or her payroll deductions during the Offering Period by completing or filing
with the Company a new subscription agreement authorizing a change in payroll
deduction rate. The Company may, in its discretion, limit the nature and/or
number of participation rate changes during any Offering Period, and may
establish such other conditions or limitations as it deems appropriate for
proper Plan administration. The change in rate shall be effective with the first
full payroll period following five (5) business days after the Company's receipt
of the new subscription agreement unless the Company elects to process a given
change in participation more quickly. A participant's subscription agreement
shall remain in effect for successive Offering Periods unless terminated as
provided in Section 10 hereof.

          (d)  Notwithstanding the foregoing, to the extent necessary to comply
with Section 423(b)(8) of the Code and Section 3(b) hereof, a participant's
payroll deductions may be decreased to zero percent (0%) at any time during a
Purchase Period.  Payroll deductions shall recommence at the rate provided in
such participant's subscription agreement at the beginning of the first Purchase
Period which is scheduled to end in the following calendar year, unless
terminated by the participant as provided in Section 10 hereof.

          (e)  At the time the option is exercised, in whole or in part, or at
the time some or all of the Company's Common Stock issued under the Plan is
disposed of, the participant must make adequate provision for the Company's
federal, state, or other tax withholding obligations, if any, which arise upon
the exercise of the option or the disposition of the Common Stock.  At any time,
the Company may, but shall not be obligated to, withhold from the participant's
compensation the amount necessary for the Company to meet applicable withholding
obligations, including any withholding required to make available to the Company
any tax deductions or benefits attributable to sale or early disposition of
Common Stock by the Employee.

     7.   Grant of Option.  On the Enrollment Date of each Offering Period,
          ---------------
each eligible Employee participating in such Offering Period shall be granted an
option to purchase on each

                                      -4-
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Exercise Date during such Offering Period (at the applicable Purchase Price) up
to a number of shares of the Company's Common Stock determined by dividing such
Employee's payroll deductions accumulated prior to such Exercise Date and
retained in the Participant's account as of the Exercise Date by the applicable
Purchase Price; provided that in no event shall an Employee be permitted to
purchase during each Purchase Period more than 2,000 shares of the Company's
Common Stock (subject to any adjustment pursuant to Section 19), and provided
further that such purchase shall be subject to the limitations set forth in
Sections 3(b) and 12 hereof. The Board may, for future Offering Periods,
increase or decrease, in its absolute discretion, the maximum number of shares
of the Company's Common Stock an Employee may purchase during each Purchase
Period of such Offering Period. Exercise of the option shall occur as provided
in Section 8 hereof, unless the participant has withdrawn pursuant to Section 10
hereof. The option shall expire on the last day of the Offering Period.

     8.   Exercise of Option.
          ------------------

          (a)  Unless a participant withdraws from the Plan as provided in
Section 10 hereof, his or her option for the purchase of shares shall be
exercised automatically on the Exercise Date, and the maximum number of full
shares subject to option shall be purchased for such participant at the
applicable Purchase Price with the accumulated payroll deductions in his or her
account.  No fractional shares shall be purchased; any payroll deductions
accumulated in a participant's account which are not sufficient to purchase a
full share shall be retained in the participant's account for the subsequent
Purchase Period or Offering Period, subject to earlier withdrawal by the
participant as provided in Section 10 hereof.  Any other monies left over in a
participant's account after the Exercise Date shall be returned to the
participant.  During a participant's lifetime, a participant's option to
purchase shares hereunder is exercisable only by him or her.

          (b)  If the Board determines that, on a given Exercise Date, the
number of shares with respect to which options are to be exercised may exceed
(i) the number of shares of Common Stock that were available for sale under the
Plan on the Enrollment Date of the applicable Offering Period, or (ii) the
number of shares available for sale under the Plan on such Exercise Date, the
Board may in its sole discretion (x) provide that the Company shall make a pro
rata allocation of the shares of Common Stock available for purchase on such
Enrollment Date or Exercise Date, as applicable, in as uniform a manner as shall
be practicable and as it shall determine in its sole discretion to be equitable
among all participants exercising options to purchase Common Stock on such
Exercise Date, and continue all Offering Periods then in effect, or (y) provide
that the Company shall make a pro rata allocation of the shares available for
purchase on such Enrollment Date or Exercise Date, as applicable, in as uniform
a manner as shall be practicable and as it shall determine in its sole
discretion to be equitable among all participants exercising options to purchase
Common Stock on such Exercise Date, and terminate any or all Offering Periods
then in effect pursuant to Section 20 hereof. The Company may make pro rata
allocation of the shares available on the Enrollment Date of any applicable
Offering Period pursuant to the preceding sentence, notwithstanding any
authorization of additional shares for issuance under the Plan by the Company's
shareholders subsequent to such Enrollment Date.

                                      -5-
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     9.   Delivery.  As promptly as practicable after each Exercise Date on
          --------
which a purchase of shares occurs, the Company shall arrange the delivery to
each participant, as appropriate, of a certificate representing the shares
purchased upon exercise of his or her option.

     10.  Withdrawal.
          ----------

          (a)  A participant may withdraw all but not less than all the payroll
deductions credited to his or her account and not yet used to exercise his or
her option under the Plan at any time by giving written notice to the Company in
the form of Exhibit B to this Plan.  All of the participant's payroll deductions
            ---------
credited to his or her account shall be paid to such participant promptly after
receipt of notice of withdrawal and such participant's option for the Offering
Period shall be automatically terminated, and no further payroll deductions for
the purchase of shares shall be made for such Offering Period.  If a participant
withdraws from an Offering Period, payroll deductions shall not resume at the
beginning of the succeeding Offering Period unless the participant delivers to
the Company a new subscription agreement.

          (b)  A participant's withdrawal from an Offering Period shall not have
any effect upon his or her eligibility to participate in any similar plan which
may hereafter be adopted by the Company or in succeeding Offering Periods which
commence after the termination of the Offering Period from which the participant
withdraws.

     11.  Termination of Employment.
          -------------------------

          Upon a participant's ceasing to be an Employee, for any reason, he or
she shall be deemed to have elected to withdraw from the Plan and the payroll
deductions credited to such participant's account during the Offering Period but
not yet used to exercise the option shall be returned to such participant or, in
the case of his or her death, to the person or persons entitled thereto under
Section 15 hereof, and such participant's option shall be automatically
terminated.  The preceding sentence notwithstanding, a participant who receives
payment in lieu of notice of termination of employment shall be treated as
continuing to be an Employee for the participant's customary number of hours per
week of employment during the period in which the participant is subject to such
payment in lieu of notice.

     12.  Interest.  No interest shall accrue on the payroll deductions of a
          --------
participant in the Plan.

     13.  Stock.
          -----

          (a)  Subject to adjustment upon changes in capitalization of the
Company as provided in Section 19 hereof, the maximum number of shares of the
Company's Common Stock which shall be made available for sale under the Plan
shall be one million (1,000,000) shares plus an annual increase to be added on
the first day of the Company's fiscal year beginning in 2001, equal to the
lesser of (i) 1,500,000 shares, (ii) 2% of the outstanding shares on such date
or (iii) a lesser amount determined by the Board.

          (b)  The participant shall have no interest or voting right in shares
covered by his option until such option has been exercised.

                                      -6-
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          (c)  Shares to be delivered to a participant under the Plan shall be
registered in the name of the participant or in the name of the participant and
his or her spouse.

     14.  Administration.  The Plan shall be administered by the Board or a
          --------------
committee of members of the Board appointed by the Board.  The Board or its
committee shall have full and exclusive discretionary authority to construe,
interpret and apply the terms of the Plan, to determine eligibility and to
adjudicate all disputed claims filed under the Plan.  Every finding, decision
and determination made by the Board or its committee shall, to the full extent
permitted by law, be final and binding upon all parties.

     15.  Designation of Beneficiary.
          --------------------------

          (a)  A participant may file a written designation of a beneficiary who
is to receive any shares and cash, if any, from the participant's account under
the Plan in the event of such participant's death subsequent to an Exercise Date
on which the option is exercised but prior to delivery to such participant of
such shares and cash.  In addition, a participant may file a written designation
of a beneficiary who is to receive any cash from the participant's account under
the Plan in the event of such participant's death prior to exercise of the
option.  If a participant is married and the designated beneficiary is not the
spouse, spousal consent shall be required for such designation to be effective.

          (b)  Such designation of beneficiary may be changed by the participant
at any time by written notice.  In the event of the death of a participant and
in the absence of a beneficiary validly designated under the Plan who is living
at the time of such participant's death, the Company shall deliver such shares
and/or cash to the executor or administrator of the estate of the participant,
or if no such executor or administrator has been appointed (to the knowledge of
the Company), the Company, in its discretion, may deliver such shares and/or
cash to the spouse or to any one or more dependents or relatives of the
participant, or if no spouse, dependent or relative is known to the Company,
then to such other person as the Company may designate.

     16.  Transferability.  Neither payroll deductions credited to a
          ---------------
participant's account nor any rights with regard to the exercise of an option or
to receive shares under the Plan may be assigned, transferred, pledged or
otherwise disposed of in any way (other than by will, the laws of descent and
distribution or as provided in Section 15 hereof) by the participant.  Any such
attempt at assignment, transfer, pledge or other disposition shall be without
effect, except that the Company may treat such act as an election to withdraw
funds from an Offering Period in accordance with Section 10 hereof.

     17.  Use of Funds.  All payroll deductions received or held by the
          ------------
Company under the Plan may be used by the Company for any corporate purpose, and
the Company shall not be obligated to segregate such payroll deductions.

     18.  Reports.  Individual accounts shall be maintained for each
          -------
participant in the Plan.  Statements of account shall be given to participating
Employees at least annually, which statements shall set forth the amounts of
payroll deductions, the Purchase Price, the number of shares purchased and the
remaining cash balance, if any.

     19.  Adjustments Upon Changes in Capitalization, Dissolution, Liquidation,
          --------------------------------------------------------------------
Merger or Asset Sale.
--------------------

                                      -7-
<PAGE>

          (a)  Changes in Capitalization.  Subject to any required action by the
               -------------------------
shareholders of the Company, the Reserves, the maximum number of shares each
participant may purchase each Purchase Period (pursuant to Section 7), the
number of shares that may be added annually to the shares reserved under the
Plan (pursuant to Section 13(a)(i)), as well as the price per share and the
number of shares of Common Stock covered by each option under the Plan which has
not yet been exercised shall be proportionately adjusted for any increase or
decrease in the number of issued shares of Common Stock resulting from a stock
split, reverse stock split, stock dividend, combination or reclassification of
the Common Stock, or any other increase or decrease in the number of shares of
Common Stock effected without receipt of consideration by the Company; provided,
however, that conversion of any convertible securities of the Company shall not
be deemed to have been "effected without receipt of consideration."  Such
adjustment shall be made by the Board, whose determination in that respect shall
be final, binding and conclusive.  Except as expressly provided herein, no
issuance by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, shall affect, and no adjustment
by reason thereof shall be made with respect to, the number or price of shares
of Common Stock subject to an option.

          (b)  Dissolution or Liquidation.  In the event of the proposed
               --------------------------
dissolution or liquidation of the Company, the Offering Period then in progress
shall be shortened by setting a new Exercise Date (the "New Exercise Date"), and
shall terminate immediately prior to the consummation of such proposed
dissolution or liquidation, unless provided otherwise by the Board.  The New
Exercise Date shall be before the date of the Company's proposed dissolution or
liquidation.  The Board shall notify each participant in writing, at least ten
(10) business days prior to the New Exercise Date, that the Exercise Date for
the participant's option has been changed to the New Exercise Date and that the
participant's option shall be exercised automatically on the New Exercise Date,
unless prior to such date the participant has withdrawn from the Offering Period
as provided in Section 10 hereof.

          (c)  Merger or Asset Sale.  In the event of a proposed sale of all or
               --------------------
substantially all of the assets of the Company, or the merger of the Company
with or into another corporation, each outstanding option shall be assumed or an
equivalent option substituted by the successor corporation or a Parent or
Subsidiary of the successor corporation.  In the event that the successor
corporation refuses to assume or substitute for the option, any Purchase Periods
then in progress shall be shortened by setting a new Exercise Date (the "New
Exercise Date") and any Offering Periods then in progress shall end on the New
Exercise Date.  The New Exercise Date shall be before the date of the Company's
proposed sale or merger.  The Board shall notify each participant in writing, at
least ten (10) business days prior to the New Exercise Date, that the Exercise
Date for the participant's option has been changed to the New Exercise Date and
that the participant's option shall be exercised automatically on the New
Exercise Date, unless prior to such date the participant has withdrawn from the
Offering Period as provided in Section 10 hereof.

     20.  Amendment or Termination.
          ------------------------

          (a)  The Board of Directors of the Company may at any time and for any
reason terminate or amend the Plan.  Except as provided in Section 19 hereof, no
such termination can affect options previously granted, provided that an
Offering Period may be terminated by the Board of Directors on any Exercise Date
if the Board determines that the termination of the Offering Period or the Plan
is in the best interests of the Company and its shareholders.  Except as
provided in

                                      -8-
<PAGE>

Section 19 and this Section 20 hereof, no amendment may make any change in any
option theretofore granted which adversely affects the rights of any
participant. To the extent necessary to comply with Section 423 of the Code (or
any successor rule or provision or any other applicable law, regulation or stock
exchange rule), the Company shall obtain shareholder approval in such a manner
and to such a degree as required.

          (b)  Without shareholder consent and without regard to whether any
participant rights may be considered to have been "adversely affected," the
Board (or its committee) shall be entitled to change the Offering Periods, limit
the frequency and/or number of changes in the amount withheld during an Offering
Period, establish the exchange ratio applicable to amounts withheld in a
currency other than U.S. dollars, permit payroll withholding in excess of the
amount designated by a participant in order to adjust for delays or mistakes in
the Company's processing of properly completed withholding elections, establish
reasonable waiting and adjustment periods and/or accounting and crediting
procedures to ensure that amounts applied toward the purchase of Common Stock
for each participant properly correspond with amounts withheld from the
participant's Compensation, and establish such other limitations or procedures
as the Board (or its committee) determines in its sole discretion advisable
which are consistent with the Plan.

          (c)  In the event the Board determines that the ongoing operation of
the Plan may result in unfavorable financial accounting consequences, the Board
may, in its discretion and, to the extent necessary or desirable, modify or
amend the Plan to reduce or eliminate such accounting consequence including, but
not limited to:

               (i)   altering the Purchase Price for any Offering Period
including an Offering Period underway at the time of the change in Purchase
Price;

               (ii)  shortening any Offering Period so that Offering Period ends
on a new Exercise Date, including an Offering Period underway at the time of the
Board action; and

               (iii) allocating shares.

Such modifications or amendments shall not require stockholder approval or the
consent of any Plan participants.

     21.  Notices.  All notices or other communications by a participant to the
          -------
Company under or in connection with the Plan shall be deemed to have been duly
given when received in the form specified by the Company at the location, or by
the person, designated by the Company for the receipt thereof.

     22.  Conditions Upon Issuance of Shares.  Shares shall not be issued with
          ----------------------------------
respect to an option unless the exercise of such option and the issuance and
delivery of such shares pursuant thereto shall comply with all applicable
provisions of law, domestic or foreign, including, without limitation, the
Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as
amended, the rules and regulations promulgated thereunder, and the requirements
of any stock exchange upon which the shares may then be listed, and shall be
further subject to the approval of counsel for the Company with respect to such
compliance.

                                      -9-
<PAGE>

          As a condition to the exercise of an option, the Company may require
the person exercising such option to represent and warrant at the time of any
such exercise that the shares are being purchased only for investment and
without any present intention to sell or distribute such shares if, in the
opinion of counsel for the Company, such a representation is required by any of
the aforementioned applicable provisions of law.

     23.  Term of Plan.  The Plan shall become effective upon the earlier to
          ------------
occur of its adoption by the Board of Directors or its approval by the
shareholders of the Company. It shall continue in effect for a term of ten (10)
years unless sooner terminated under Section 20 hereof.

     24.  Automatic Transfer to Low Price Offering Period.  To the extent
          -----------------------------------------------
permitted by any applicable laws, regulations, or stock exchange rules if the
Fair Market Value of the Common Stock on any Exercise Date in an Offering Period
is lower than the Fair Market Value of the Common Stock on the Enrollment Date
of such Offering Period, then all participants in such Offering Period shall be
automatically withdrawn from such Offering Period immediately after the exercise
of their option on such Exercise Date and automatically re-enrolled in the
immediately following Offering Period.

                                      -10-EXHIBIT  10.54

     REGISTRATION  RIGHTS  AGREEMENT

     REGISTRATION  RIGHTS  AGREEMENT  (this  "AGREEMENT"), dated as of April 28,
2000,  by  and  among Nettaxi.com, a Nevada corporation (the "COMPANY"), and the
undersigned  (together  with  its  affiliates  and  any  permitted  assignee  or
transferee  of all of its respective rights hereunder, the "INITIAL INVESTORS").

     WHEREAS:

     A.     In  connection  with  that  certain  Settlement Agreement and Mutual
General  Release  by  and  among  the  parties hereto of even date herewith (the
"SETTLEMENT  AGREEMENT"),  the Company has agreed, upon the terms and subject to
the conditions contained therein, to issue to the Initial Investors, in exchange
for  that  certain  Convertible  Debenture  dated  March 31, 1999, (i) 1,750,000
shares  of  the  Company's common stock, par value $0.001 per share (the "COMMON
STOCK"),  and  (ii)  stock  purchase  warrants  (the  "NEW  WARRANTS")  that are
exercisable in to 2,200,000 shares of Common Stock upon the terms and conditions
set  forth  in  the  New  Warrants;  and

     B.     To  induce  the  Initial  Investors  to  execute  and  deliver  the
Settlement  Agreement,  the  Company  has agreed to provide certain registration
rights  under  the  Securities  Act  of  1933,  as  amended,  and  the rules and
regulations  thereunder,  or  any  similar  successor statute (collectively, the
"1933  ACT"),  and  applicable  state  securities  laws;

     NOW,  THEREFORE,  in consideration of the premises and the mutual covenants
contained  herein  and  other  good  and valuable consideration, the receipt and
sufficiency  of  which  are  hereby  acknowledged,  the  Company and each of the
Initial  Investors  hereby  agree  as  follows:

     1.     DEFINITIONS.
            -----------

          a.     As  used  in this Agreement, the following terms shall have the
following  meanings:

               (i)     "INVESTORS"  means  the  Initial  Investors  and  any
transferee  or  assignee  who  agrees  to become bound by the provisions of this
Agreement  in  accordance  with  Section  9  hereof.

               (ii)     "REGISTER,"  "REGISTERED," and "REGISTRATION" refer to a
registration  effected  by  preparing  and  filing  a  Registration Statement or
Statements  in  compliance  with the 1933 Act and pursuant to Rule 415 under the
1933 Act or any successor rule providing for offering securities on a continuous
basis  ("RULE  415"),  and  the declaration or ordering of effectiveness of such
Registration  Statement  by the United States Securities and Exchange Commission
(the  "SEC").

<PAGE>
               (iii)     "REGISTRABLE  SECURITIES"  means  (A)  the  Settlement
Shares;  (B) the Warrant Shares issued or issuable upon exercise of or otherwise
pursuant  to  the  New  Warrants; (C) the Warrant Shares issued or issuable upon
exercise  of  or  otherwise pursuant to those certain Stock Purchase Warrants to
purchase  150,000  shares  of  the Company's Common Stock, issued in August 1999
(the  "Second  Warrants") and (D) any shares of capital stock issued or issuable
as  a  dividend  on  or  in exchange for or otherwise with respect to any of the
foregoing

               (iv)     "REGISTRATION  STATEMENT(S)"  means  a  registration
statement(s)  of  the  Company  under  the  1933  Act.

          b.     Capitalized  terms used herein and not otherwise defined herein
shall  have  the  respective  meanings  set  forth  in the Settlement Agreement.

     2.     REGISTRATION.
            ------------

          a.     MANDATORY REGISTRATION.  The Company shall use its best efforts
                 ----------------------
to  prepare  and file with the SEC a Registration Statement on Form S-1 covering
the  resale  of the Registrable Securities as soon as practicable after the date
hereof,  but  in any event not later than  the date (the "FILING DATE") which is
thirty  (30)  days after the date of the Settlement Agreement, whichRegistration
Statement,  to  the  extent  allowable  under  the  1933  Act  and the rules and
regulations  promulgated thereunder (including Rule 416),  shall state that such
Registration  Statement  also  covers  such  indeterminate  number of additional
shares  of  Common  Stock  as  may become issuable upon exercise of or otherwise
pursuant  to  the  New  Warrants  and  the  Second  Warrants to prevent dilution
resulting  from  stock  splits,  stock  dividends  or similar transactions.  The
number  of  shares  of  Common  Stock  initially  included  in such Registration
Statement  shall  be  no  less  than  the  aggregate  number  of the Registrable
Securities.  The  Registrable  Securities included in the Registration Statement
shall  be  allocated to the Investors as set forth in Section 11(k) hereof.  The
Registration  Statement  (and  each  amendment  or supplement thereto , and each
request  for  acceleration  of  effectiveness thereof) shall be provided to (and
subject  to  the  approval,  which  shall  not be unreasonably withheld, of) the
Initial  Investors  and  its  counsel  prior  to its filing or other submission.

          b.     REGISTRATION  DEADLINE.  The Company shall use its best efforts
                 ----------------------
to  obtain  effectiveness  of the Registration Statement as soon as practicable,
but  in  any  event not later than the 90th day after the date of the Settlement
Agreement  (the  "REGISTRATION  DEADLINE").

          c.     ELIGIBILITY  FOR FORM S-1; CONVERSION TO FORM S-3.  The Company
                 -------------------------------------------------
represents  and  warrants that it meets the requirements for the use of Form S-1
for registration of the sale by the Initial Investors and any other Investors of
the  Registrable Securities.  The Company agrees to file all reports required to
be  filed  by  the Company with the SEC pursuant to Section 13 of the Securities
Exchange  Act  of 1934, as amended (the "1934 ACT").  The Company further agrees
to file all reports required to be filed by the Company with the SEC in a timely
manner so as to become eligible, and thereafter to maintain its eligibility, for

<PAGE>
the  use  of  Form S-3.  Not later than thirty (30) days after the Company first
meets  the  registration eligibility and transaction requirements for the use of
Form  S-3  (or any successor form) for registration of the offer and sale by the
Initial Investors and any other Investors of Registrable Securities, the Company
shall  file  a  Registration Statement on Form S-3 (or such successor form) with
respect  to  the Registrable Securities covered by the Registration Statement on
Form  S-1  filed  pursuant  to  Section  2(a)  (and include in such Registration
Statement  on  Form S-3 the information required by Rule 429 under the 1933 Act)
or convert the Registration Statement on Form S-1 filed pursuant to Section 2(a)
to  a  Form S-3 pursuant to Rule 429 under the 1933 Act and use its best efforts
to  have  such  Registration Statement (or such amendment) declared effective as
soon  as  practicable  thereafter.

     3.     OBLIGATIONS  OF  THE  COMPANY.
            -----------------------------

     In  connection  with  the  registration  of the Registrable Securities, the
Company  shall  have  the  following  obligations:

          a.     The  Company  shall  prepare promptly and file with the SEC the
Registration Statement required by Section 2(a) as soon as practicable after the
date  hereof  (but in no event later than the Filing Date), and thereafter cause
such  Registration  Statement to become effective as soon as possible after such
filing  (but  in  no  event  later than the Registration Deadline), and keep the
Registration  Statement  (and,  following  the effectiveness of the Registration
Statement  on  Form  S-3  referred  to  in Section 2(c), such later Registration
Statement) effective pursuant to Rule 415 at all times until such date as is the
earlier  of  (i)  the  date on which all of the Registrable Securities have been
sold  and  (ii)  the date on which the Registrable Securities (in the opinion of
counsel  to the Initial Investors) may be immediately sold to the public without
registration  or  restriction (including without limitation as to volume by each
holder  thereof)  under  the  1933  Act  (the  "REGISTRATION  PERIOD"),  which
Registration  Statement  (including  any  amendments  or supplements thereto and
prospectuses  contained  therein)  shall  not  contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein, or
necessary  to  make  the  statements  therein  not  misleading.

          b.     The Company shall prepare and file with the SEC such amendments
(including  post-effective  amendments)  and  supplements  to  the  Registration
Statement  and the prospectus used in connection with the Registration Statement
as  may  be  necessary to keep the Registration Statement effective at all times
during  the  Registration  Period,  and,  during  such  period,  comply with the
provisions  of  the  1933 Act with respect to the disposition of all Registrable
Securities  of the Company covered by the Registration Statement until such time
as  all  of such Registrable Securities have been disposed of in accordance with
the  intended  methods  of  disposition  by the seller or sellers thereof as set
forth  in  the  Registration  Statement.  In  the  event  the  number  of shares
available under a Registration Statement filed pursuant to this Agreement is, on
any  trading  day  (such  trading  day  being  the "REGISTRATION TRIGGER DATE"),
insufficient  to  cover  100%  of  the Registrable Securities, the Company shall
amend  the  Registration Statement, or file a new Registration Statement (on the
short  form  available therefor, if applicable), or both, so as to cover 100% of
the  Registrable Securities so issued or issuable as of the Registration Trigger
Date,  in each case, as soon as practicable, but in any event within 15 business
days  after  the  Registration  Trigger  Date.  The  Company  shall use its best
efforts  to  cause  such  amendment  and/or new Registration Statement to become
effective  as soon as practicable following the filing thereof, but in any event
within  60  days  after  the  Registration  Trigger  Date.

<PAGE>
          c.     The  Company  shall  furnish to each Investor whose Registrable
Securities  are included in the Registration Statement and one legal counsel for
all  of  the  Investors  (i)  promptly  after  the same is prepared and publicly
distributed,  filed  with  the  SEC,  or  received  by  the Company, one copy of
eachRegistration  Statement  and  any  amendment  thereto,  each  preliminary
prospectus  and  prospectus  and  each amendment or supplement thereto, and each
letter  written  by  or  on behalf of the Company to the SEC or the staff of the
SEC,  and  each  item of correspondence from the SEC or the staff of the SEC, in
each case relating to such Registration Statement (other than any portion of any
thereof which contains information for which the Company has sought confidential
treatment),  and  (ii)  such  number  of  copies  of  a  prospectus, including a
preliminary  prospectus,  and  all  amendments  and supplements thereto and such
other  documents  as such Investor may reasonably request in order to facilitate
the  disposition  of  the  Registrable  Securities  owned by such Investor.  The
Company  will immediately notify each Investor by facsimile of the effectiveness
of  the  Registration  Statement  or  any  post-effective  amendment  to  the
Registration  Statement.  The  Company  will  promptly  respond  to  any and all
comments  received  from  the  SEC, with a view towards causing the Registration
Statement  or  each  amendment  to  the  Registration  Statement  to be declared
effective  by  the  SEC  as  soon  as practicable and shall file an acceleration
request  as soon as practicable following the resolution or clearance of all SEC
comments  or,  if  applicable,  following  notification by the SEC that any such
Registration  Statement  or any amendment thereto will not be subject to review.

          d.     The  Company  shall  use reasonable efforts to (i) register and
qualify  the  Registrable Securities covered by the Registration Statement under
such  other  securities  or  "blue sky" laws of such jurisdictions in the United
States  as  the  Investors  who  hold  a majority in interest of the Registrable
Securities  being  offered  reasonably  request,  (ii) prepare and file in those
jurisdictions  such  amendments  (including  post-effective  amendments)  and
supplements  to  such  registrations  and  qualifications as may be necessary to
maintain  the  effectiveness  thereof during the Registration Period, (iii) take
such  other  actions  as  may  be  necessary  to maintain such registrations and
qualifications  in  effect at all times during the Registration Period, and (iv)
take  all  other  actions  reasonably  necessary  or  advisable  to  qualify the
Registrable  Securities  for sale in such jurisdictions; provided, however, that
                                                         --------  -------
the  Company  shall  not  be  required in connection therewith or as a condition
thereto  to  (a)  qualify  to do business in any jurisdiction where it would not
otherwise  be  required to qualify but for this Section 3(d), (b) subject itself
to  general  taxation  in  any  such jurisdiction, (c) file a general consent to
service  of  process in any such jurisdiction, (d) provide any undertakings that
cause the Company undue expense or burden, or (e) make any change in its charter
or  by-laws, which in each case the Board of Directors of the Company determines
to  be  contrary  to  the  best  interests  of the Company and its stockholders.

          e.     In  the  event Investors who hold a majority-in-interest of the
Registrable  Securities  being  offered in the offering  (with the approval of a
majority-in-interest  of  the  Initial  Investors)  select  underwriters for the
offering,  the  Company  shall  enter  into and perform its obligations under an
underwriting  agreement,  in  usual  and  customary  form,  including,  without
limitation,  customary  indemnification  and  contribution obligations, with the
underwriters  of  such  offering.

<PAGE>
          f.     As  promptly as practicable after becoming aware of such event,
the  Company  shall notify each Investor of the happening of any event, of which
the  Company  has knowledge, as a result of which the prospectus included in any
Registration  Statement  hereunder,  as  then  in  effect,  includes  an  untrue
statement of a material fact or omission to state a material fact required to be
stated  therein  or necessary to make the statements therein not misleading, and
use  its  best  efforts  promptly  to  prepare  a supplement or amendment to any
Registration Statement to correct such untrue statement or omission, and deliver
such  number  of copies of such supplement or amendment to each Investor as such
Investor  may  reasonably  request;  provided  that,  for not more than ten (10)
consecutive  trading  days (or a total of not more than thirty (30) trading days
in  any  twelve  (12)  month  period),  the  Company may delay the disclosure of
material  non-public information concerning the Company (as well as a prospectus
or  Registration Statement updating) the disclosure of which at the time is not,
in  the  good faith opinion of the Company, in the best interests of the Company
(an  "ALLOWED  DELAY");  provided,  further, that the Company shall promptly (i)
notify  the  Investors  in writing of the existence of (but in no event, without
the  prior  written  consent  of an Investor, shall the Company disclose to such
investor  any  of  the  facts  or  circumstances  regarding) material non-public
information  giving  rise  to  an Allowed Delay and (ii) advise the Investors in
writing  to  cease  all sales under such Registration Statement until the end of
the Allowed Delay. Upon expiration of the Allowed Delay, the Company shall again
be  bound  by  the  first  sentence  of  this  Section  3(f) with respect to the
information  giving  rise  thereto.

          g.     The  Company shall use its best efforts to prevent the issuance
of  any  stop  order  or  other  suspension of effectiveness of any Registration
Statement  hereunder,  and, if such an order is issued, to obtain the withdrawal
of  such  order  at the earliest possible moment and to notify each Investor who
holds  Registrable  Securities  being  sold (or, in the event of an underwritten
offering,  the  managing  underwriters)  of  the  issuance of such order and the
resolution  thereof.

          h.     The Company shall permit a single firm of counsel designated by
the  Initial  Investors to review such Registration Statement and all amendments
and  supplements  to  the  Registration  Statement  (as well as all requests for
acceleration  or  effectiveness  thereof)  a  reasonable period of time prior to
their  filing  with  the  SEC, and not file any document in a form to which such
counsel  reasonably  objects  and  will  not  request  acceleration  of  such
Registration  Statement  without  prior notice to such counsel.  The sections of
such  Registration Statement covering information with respect to the Investors,
the  Investor's  beneficial  ownership  of  securities  of  the  Company  or the
Investors intended method of disposition of Registrable Securities shall conform
to  the  information  provided  to  the  Company  by  each  of  the  Investors.

          i.     The  Company  shall  make  available  for inspection by (i) any
Investor  and  (ii)  one  firm of attorneys and one firm of accountants or other
agents  retained  by  the Initial Investors (collectively, the "INSPECTORS") all
pertinent  financial  and  other  records, and pertinent corporate documents and
properties  of the Company (collectively, the "RECORDS"), as shall be reasonably
deemed  necessary by each Inspector to enable each Inspector to exercise its due
diligence  responsibility,  and  cause  the  Company's  officers,  directors and
employees  to  supply all information which any Inspector may reasonably request
for purposes of such due diligence; provided, however, that each Inspector shall
                                    --------  -------
hold  in confidence and shall not make any disclosure (except to an Investor) of
any Record or other information which the Company determines in good faith to be

<PAGE>
confidential,  and of which determination the Inspectors are so notified, unless
(a)  the  disclosure  of  such  Records  is  necessary  to  avoid  or  correct a
misstatement  or omission in theRegistration Statement , (b) the release of such
Records  is  ordered  pursuant  to  a  subpoena  or  other order from a court or
government  body  of  competent  jurisdiction,  or  (c)  the information in such
Records has been made generally available to the public other than by disclosure
in  violation of this or any other agreement.  The Company shall not be required
to  disclose any confidential information in such Records to any Inspector until
and unless such Inspector shall have entered into confidentiality agreements (in
form  and  substance  satisfactory to the Company) with the Company with respect
thereto,  substantially  in the form of this Section 3(i).  Each Investor agrees
that  it shall, upon learning that disclosure of such Records is sought in or by
a  court  or governmental body of competent jurisdiction or through other means,
give  prompt  notice  to  the  Company and allow the Company, at its expense, to
undertake appropriate action to prevent disclosure of, or to obtain a protective
order  for,  the  Records  deemed confidential.  Nothing herein (or in any other
confidentiality  agreement between the Company and any Investor) shall be deemed
to limit the Investor's ability to sell Registrable Securities in a manner which
is  otherwise  consistent  with  applicable  laws  and  regulations.

          j.     The  Company  shall  hold  in  confidence  and  not  make  any
disclosure  of information concerning an Investor provided to the Company unless
(i)  disclosure of such information is necessary to comply with federal or state
securities  laws,  (ii) the disclosure of such information is necessary to avoid
or  correct  a misstatement or omission in any Registration Statement hereunder,
(iii) the release of such information is ordered pursuant to a subpoena or other
order  from a court or governmental body of competent jurisdiction, or (iv) such
information  has  been  made  generally  available  to  the public other than by
disclosure in violation of this or any other agreement.  The Company agrees that
it  shall,  upon  learning  that  disclosure  of  such information concerning an
Investor  is  sought  in  or  by  a  court  or  governmental  body  of competent
jurisdiction  or  through other means, give prompt notice to such Investor prior
to  making such disclosure, and allow the Investor, at its expense, to undertake
appropriate  action  to  prevent  disclosure of, or to obtain a protective order
for,  such  information.

          k.     The  Company  shall  (i)  cause  all the Registrable Securities
covered  by  the Registration Statement to be listed on each national securities
exchange  on  which securities of the same class or series issued by the Company
are  then  listed, if any, if the listing of such Registrable Securities is then
permitted under the rules of such exchange, or (ii) to the extent the securities
of  the  same  class  or  series  are  not  then listed on a national securities
exchange, secure the designation and quotation of all the Registrable Securities
covered  by  the Registration Statement on the NNM or the Nasdaq SmallCap or, if
not  eligible  for  the  NNM  or the Nasdaq SmallCap, on the OTC BB and, without
limiting  the  generality  of  the foregoing, to arrange for at least two market
makers  to  register  with  the National Association of Securities Dealers, Inc.
("NASD")  as  such  with  respect  to  such  Registrable  Securities.

          l.     The  Company  shall  cooperate  with  the  Investors  who  hold
Registrable  Securities  being  offered to facilitate the timely preparation and
delivery  of  certificates  (not  bearing  any restrictive legends) representing
Registrable  Securities to be offered pursuant to the Registration Statement and
enable such certificates to be in such denominations or amounts, as the case may
be,  as the Investors may reasonably request and registered in such names as the
the  Investors  may  request,  and,  within  three  (3)  business days after any
Registration  Statement  which  includes  Registrable  Securities  is  ordered
effective  by  the SEC, the Company shall deliver, and shall cause legal counsel
selected  by  the  Company to deliver, to the transfer agent for the Registrable

<PAGE>
Securities  (with  copies  to  the  Investors  whose  Registrable Securities are
included  in  such  Registration  Statement) an instruction in the form attached
hereto  as EXHIBIT 1 and an opinion of such counsel  in the form attached hereto
as  EXHIBIT  2

          m.     At  the request of the holders of a majority-in-interest of the
Registrable  Securities,  the  Company  shall prepare and file with the SEC such
amendments  (including  post-effective  amendments)  and  supplements  to  a
Registration  Statement  and  any  prospectus  used  in  connection  with  the
Registration  Statement  as  may  be  necessary  in  order to change the plan of
distribution  set  forth  in  such  Registration  Statement.

          n.     The  Company shall comply with all applicable laws related to a
Registration  Statement  and  offering and sale of securities and all applicable
rules  and  regulations  of  governmental  authorities  in  connection therewith
(including  without  limitation  the 1933 Act and the 1934 Act and the rules and
regulations  promulgated  by  the  SEC).

          o.     The  Company  shall  maintain  a  transfer agent and registrar,
which may be  a  single  entity.

          p.     The  Company  shall take all other reasonable actions necessary
to  expedite  and  facilitate  disposition  by  the  Investors  of  Registrable
Securities  pursuant  to  a  Registration  Statement.

     4.     OBLIGATIONS  OF  THE  INVESTORS.
            -------------------------------

     In  connection  with  the  registration  of the Registrable Securities, the
Investors  shall  have  the  following  obligations:

          a.     It  shall  be  a  condition precedent to the obligations of the
Company  to complete the registration pursuant to this Agreement with respect to
the  Registrable  Securities  of  a particular Investor that such Investor shall
furnish  to  the  Company  such  information  regarding  itself, the Registrable
Securities  held by it and the intended method of disposition of the Registrable
Securities held by it as shall be reasonably required to effect the registration
of  such  Registrable  Securities and shall execute such documents in connection
with  such  registration  as the Company may reasonably request.  At least three
(3) business days prior to the first anticipated filing date of the Registration
Statement, the Company shall notify each Investor of the information the Company
requires  from  each  such  Investor.

          b.     Each Investor, by such Investor's acceptance of the Registrable
Securities,  agrees to cooperate with the Company as reasonably requested by the
Company  in  connection  with  the  preparation  and  filing of any Registration
Statement hereunder, unless such Investor has notified the Company in writing of
such  Investor's  election  to  exclude  all  of  such  Investor's  Registrable
Securities  from  the  Registration  Statement.

          c.     In  the  event  Investors holding a majority-in-interest of the
Registrable  Securities  being  registered  (with  the  approval  of the Initial
Investors)  determine  to  engage  the services of an underwriter, each Investor
agrees  to  enter  into  and  perform  such  Investor's  obligations  under  an

<PAGE>
underwriting  agreement,  in  usual  and  customary  form,  including,  without
limitation,  customary  indemnification  and  contribution obligations, with the
managing  underwriter  of  such  offering  and  take  such  other actions as are
reasonably  required  in  order to expedite or facilitate the disposition of the
Registrable Securities, unless such Investor has notified the Company in writing
of  such  Investor's  election  to  exclude  all  of such Investor's Registrable
Securities  from  such  Registration  Statement.

          d.     Each  Investor agrees that, upon receipt of any notice from the
Company  of  the happening of any event of the kind described in Section 3(f) or
3(g),  such  Investor  will  immediately  discontinue disposition of Registrable
Securities  pursuant  to  the  Registration  Statement covering such Registrable
Securities  until  such  Investor's receipt of the copies of the supplemented or
amended  prospectus  contemplated by Section 3(f) or 3(g) and, if so directed by
the  Company,  such Investor shall deliver to the Company (at the expense of the
Company)  or  destroy  (and deliver to the Company a certificate of destruction)
all  copies  in  such  Investor's  possession,  of  the prospectus covering such
Registrable  Securities  current  at  the  time  of  receipt  of  such  notice.

          e.     No  Investor  may  participate in any underwritten registration
hereunder  unless  such  Investor (i) agrees to sell such Investor's Registrable
Securities  on  the basis provided in any underwriting arrangements in usual and
customary  form  entered  into  by  the Company, (ii) completes and executes all
questionnaires,  powers  of  attorney,  indemnities, underwriting agreements and
other  documents  reasonably  required  under  the  terms  of  such underwriting
arrangements,  and  (iii)  agrees  to pay its pro rata share of all underwriting
discounts  and  commissions  and  any expenses in excess of those payable by the
Company  pursuant  to  Section  5  below.

     5.     EXPENSES  OF  REGISTRATION.
            --------------------------

     All reasonable expenses, other than underwriting discounts and commissions,
incurred in connection with registrations, filings or qualifications pursuant to
Sections  2  and 3, including, without limitation, all registration, listing and
qualification fees, printers and accounting fees, and the fees and disbursements
of  counsel  for  the  Company  shall  be  borne  by  the  Company.

     6.     INDEMNIFICATION.
            ---------------

     In  the  event  any  Registrable  Securities are included in a Registration
Statement  under  this  Agreement:

          a.     To  the  extent  permitted  by law, the Company will indemnify,
hold  harmless  and  defend  (i)  each  Investor  who  holds  such  Registrable
Securities,  (ii)  the directors, officers, partners, employees, agents and each
person  who controls any Investor within the meaning of the 1933 Act or the 1934
Act,  if  any,  (iii)  any  underwriter  (as  defined  in  the 1933 Act) for the
Investors, and (iv) the directors, officers, partners, employees and each person
who controls any such underwriter within the meaning of the 1933 Act or the 1934
Act,  if  any  (each,  an  "INDEMNIFIED  PERSON"),  against any joint or several
losses,  claims,  damages,  liabilities or expenses (collectively, together with
actions,  proceedings  or  inquiries  by  any  regulatory  or  self-regulatory
organization,  whether commenced or threatened, in respect thereof, "CLAIMS") to

<PAGE>
which  any of them may become subject insofar as such Claims arise out of or are
based  upon:  (i) any untrue statement or alleged untrue statement of a material
fact  in  a  Registration Statement or the omission or alleged omission to state
therein  a  material  fact  required  to  be  stated  or  necessary  to make the
statements  therein  not misleading; (ii) any untrue statement or alleged untrue
statement  of  a  material  fact contained in any preliminary prospectus if used
prior  to the effective date of such Registration Statement, or contained in the
final prospectus (as amended or supplemented, if the Company files any amendment
thereof  or supplement thereto with the SEC) or the omission or alleged omission
to  state  therein  any  material  fact  necessary  to  make the statements made
therein,  in  light of the circumstances under which the statements therein were
made, not misleading; or (iii) any violation or alleged violation by the Company
of the 1933 Act, the 1934 Act, any other law, including, without limitation, any
state securities law, or any rule or regulation thereunder relating to the offer
or  sale of the Registrable Securities (the matters in the foregoing clauses (i)
through  (iii)  being, collectively, "VIOLATIONS").  Subject to the restrictions
set  forth  in  Section  6(c)  with  respect to the number of legal counsel, the
Company  shall  reimburse  the Indemnified Person, promptly as such expenses are
incurred  and  are  due  and  payable,  for  any  reasonable legal fees or other
reasonable  expenses  incurred  by  them  in  connection  with  investigating or
defending  any  such  Claim.  Notwithstanding anything to the contrary contained
herein,  the indemnification agreement contained in this Section 6(a): (i) shall
not  apply  to  a Claim arising out of or based upon a Violation which occurs in
reliance  upon  and  in  conformity with information furnished in writing to the
Company  by  any  Indemnified  Person or underwriter for such Indemnified Person
expressly  for  use  in  connection  with  the  preparation of such Registration
Statement  or  any  such amendment thereof or supplement thereto; (ii) shall not
apply  to amounts paid in settlement of any Claim if such settlement is effected
without  the  prior  written  consent of the Company, which consent shall not be
unreasonably  withheld;  and  (iii)  with respect to any preliminary prospectus,
shall not inure to the benefit of any Indemnified Person if the untrue statement
or  omission  of  material  fact  contained  in  the  preliminary prospectus was
corrected  on a timely basis in the prospectus, as then amended or supplemented,
such  corrected  prospectus was timely made available by the Company pursuant to
Section  3(c) hereof, and the Indemnified Person was promptly advised in writing
not  to use the incorrect prospectus prior to the use giving rise to a Violation
and  such  Indemnified  Person,  notwithstanding  such  advice,  used  it.  Such
indemnity  shall remain in full force and effect regardless of any investigation
made by or on behalf of the Indemnified Person and shall survive the transfer of
the  Registrable  Securities  by  the  Investors  pursuant  to  Section  9.

          b.     In  connection  with  any  Registration  Statement  in which an
Investor  is  participating, each such Investor agrees severally and not jointly
to  indemnify,  hold  harmless  and  defend,  to the same extent and in the same
manner  set  forth  in Section 6(a), the Company, each of its directors, each of
its  officers  who  signs  the  Registration Statement, each person, if any, who
controls  the  Company  within  the meaning of the 1933 Act or the 1934 Act, any
underwriter  and  any  other  stockholder  selling  securities  pursuant  to the
Registration  Statement  or  any  of its directors or officers or any person who
controls  such  stockholder or underwriter within the meaning of the 1933 Act or
the  1934  Act  (collectively  and  together  with  an  Indemnified  Person,  an
"INDEMNIFIED PARTY"), against any Claim to which any of them may become subject,
under  the 1933 Act, the 1934 Act or otherwise, insofar as such Claim arises out
of  or  is based upon any Violation by such Investor, in each case to the extent
(and  only  to  the  extent)  that such Violation occurs in reliance upon and in
conformity  with  written  information furnished to the Company by such Investor
expressly for use in connection with such Registration Statement; and subject to
Section  6(c) such Investor will reimburse any legal or other expenses (promptly

<PAGE>
as  such  expenses  are incurred and are due and payable) reasonably incurred by
them  in  connection  with  investigating or defending any such Claim; provided,
                                                                       --------
however,  that  the indemnity agreement contained in this Section 6(b) shall not
-------
apply  to amounts paid in settlement of any Claim if such settlement is effected
without  the  prior written consent of such Investor, which consent shall not be
unreasonably  withheld;  provided,  further, however, that the Investor shall be
                         --------   -------  -------
liable under this Agreement (including this Section 6(b) and Section 7) for only
that  amount as does not exceed the net proceeds to such Investor as a result of
the  sale  of  Registrable  Securities  pursuant to such Registration Statement.
Such  indemnity  shall  remain  in  full  force  and  effect  regardless  of any
investigation  made  by or on behalf of such Indemnified Party and shall survive
the  transfer of the Registrable Securities by the Investors pursuant to Section
9.  Notwithstanding  anything  to  the  contrary  contained  herein,  the
indemnification  agreement  contained  in  this Section 6(b) with respect to any
preliminary  prospectus  shall not inure to the benefit of any Indemnified Party
if  the  untrue  statement  or  omission  of  material  fact  contained  in  the
preliminary  prospectus  was  corrected  on a timely basis in the prospectus, as
then  amended  or  supplemented.

          c.     Promptly  after receipt by an Indemnified Person or Indemnified
Party  under  this  Section  6  of  notice  of  the  commencement  of any action
(including  any  governmental  action),  such  Indemnified Person or Indemnified
Party  shall,  if  a  Claim  in  respect  thereof  is  to  be  made  against any
indemnifying  party  under  this  Section 6, deliver to the indemnifying party a
written  notice  of  the  commencement thereof, and the indemnifying party shall
have  the  right to participate in, and, to the extent the indemnifying party so
desires,  jointly with any other indemnifying party similarly noticed, to assume
control  of  the  defense  thereof  with  counsel  mutually  satisfactory to the
indemnifying  party  and the Indemnified Person or the Indemnified Party, as the
case  may be; provided, however, that an Indemnified Person or Indemnified Party
              --------  -------
shall  have the right to retain its own counsel with the fees and expenses to be
paid  by  the  indemnifying  party,  if,  in  the  reasonable opinion of counsel
retained  by  the  indemnifying party, the representation by such counsel of the
Indemnified  Person  or  Indemnified  Party  and the indemnifying party would be
inappropriate  due  to  actual  or  potential  differing  interests between such
Indemnified  Person or Indemnified Party and any other party represented by such
counsel  in  such  proceeding.  The  indemnifying  party  shall pay for only one
separate  legal counsel for  the Indemnified Persons or the Indemnified Parties,
as  applicable,  and such legal counsel shall be selected by Investors holding a
majority-in-interest of the  Registrable Securities included in the Registration
Statement  to  which  the  Claim  relates  (with  the  approval  of  a
majority-in-interest of the Initial Investors), if the Investors are entitled to
indemnification  hereunder,  or  the  Company,  if  the  Company  is entitled to
indemnification hereunder, as applicable.  The failure to deliver written notice
to  the  indemnifying  party within a reasonable time of the commencement of any
such  action  shall  not relieve such indemnifying party of any liability to the
Indemnified  Person  or  Indemnified  Party  under this Section 6, except to the
extent  that  the  indemnifying  party  is actually prejudiced in its ability to
defend  such  action.  The  indemnification  required by this Section 6 shall be
made  by  periodic  payments  of  the  amount  thereof  during the course of the
investigation or defense, as such expense, loss, damage or liability is incurred
and  is  due  and  payable.

     7.     CONTRIBUTION.
            ------------

     To the extent any indemnification by an indemnifying party is prohibited or
limited  by  law, the indemnifying party agrees to make the maximum contribution
with respect to any amounts for which it would otherwise be liable under Section

<PAGE>
6  to  the  fullest  extent  permitted  by  law;  provided, however, that (i) no
                                                  --------  -------
contribution  shall  be  made under circumstances where the maker would not have
been  liable  for indemnification under the fault standards set forth in Section
6,  (ii)  no  seller  of  Registrable  Securities  guilty  of  fraudulent
misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be
entitled  to  contribution from any seller of Registrable Securities who was not
guilty  of  such  fraudulent misrepresentation, and (iii) contribution (together
with  any  indemnification  or  other  obligations  under this Agreement) by any
seller of Registrable Securities shall be limited in amount to the net amount of
proceeds  received  by such seller from the sale of such Registrable Securities.

     8.     REPORTS  UNDER  THE  1934  ACT.
            ------------------------------

     With  a  view to making available to the Investors the benefits of Rule 144
promulgated  under  the  1933 Act or any other similar rule or regulation of the
SEC  that may at any time permit the investors to sell securities of the Company
to  the  public  without  registration  ("RULE  144"),  the  Company  agrees to:

          a.     make  and keep public information available, as those terms are
understood  and  defined  in  Rule  144;

          b.     file  with  the  SEC  in  a timely manner all reports and other
documents required of the Company under the 1933 Act and the 1934 Act so long as
the  Company  remains  subject  to  such  requirements (it being understood that
nothing  herein  shall limit the Company's obligations under Section 4(c) of the
Settlement  Agreement)  and  the  filing  of such reports and other documents is
required  for  the  applicable  provisions  of  Rule  144;  and

          c.     furnish  to  each  Investor  so  long  as  such  Investor  owns
Registrable  Securities,  promptly  upon request, (i) a written statement by the
Company  that  it  has complied with the reporting requirements of Rule 144, the
1933  Act  and  the 1934 Act, (ii) a copy of the most recent annual or quarterly
report  of  the  Company  and  such  other reports and documents so filed by the
Company,  and  (iii)  such  other  information as may be reasonably requested to
permit  the  Investors  to  sell  such  securities  pursuant to Rule 144 without
registration.

     9.     ASSIGNMENT  OF  REGISTRATION  RIGHTS.
            ------------------------------------

     The  rights  under  this Agreement shall be automatically assignable by the
Investors  to any transferee of all or any portion of Registrable Securities if:
(i)  the  Investor  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 assignee is restricted under the 1933 Act and
applicable  state  securities  laws,  (iv)  at  or  before  the time the Company
receives  the  written  notice contemplated by clause (ii) of this sentence, the
transferee  or assignee agrees in writing with the Company to be bound by all of
the  provisions  contained  herein,  (v)  such  transfer shall have been made in
accordance  with  the  applicable  requirements  of  the 1933 Act, and (vi) such

<PAGE>
transferee shall be an "ACCREDITED INVESTOR" as that term defined in Rule 501 of
Regulation  D  promulgated  under  the  1933  Act.

     10.     AMENDMENT  OF  REGISTRATION  RIGHTS.
             -----------------------------------

     Provisions  of this Agreement may be amended and the observance thereof may
be waived (either generally or in a particular instance and either retroactively
or prospectively), only with written consent of the Company, each of the Initial
Investors  (to  the  extent  such  Initial  Investor  still  owns  Registrable
Securities)  and  Investors  who  hold  a  majority  interest of the Registrable
Securities.  Any amendment or waiver effected in accordance with this Section 10
shall  be  binding  upon  each  Investor  and  the  Company.

     11.     MISCELLANEOUS.
             -------------

          a.     A  person  or  entity  is  deemed to be a holder of Registrable
Securities  whenever  such  person  or  entity  owns  of record such Registrable
Securities.  If  the  Company  receives  conflicting  instructions,  notices  or
elections  from  two  or  more  persons  or  entities  with  respect to the same
Registrable  Securities,  the  Company shall act upon the basis of instructions,
notice  or  election  received  from  the  registered  owner of such Registrable
Securities.

          b.     Any  notices  required or permitted to be given under the terms
hereof  shall be sent by certified or registered mail (return receipt requested)
or delivered personally or by courier (including a recognized overnight delivery
service)  or by facsimile and shall be effective five days after being placed in
the mail, if mailed by regular United States mail, or upon receipt, if delivered
personally  or by courier (including a recognized overnight delivery service) or
by  facsimile,  in  each  case  addressed  to  a  party.  The addresses for such
communications  shall  be:

                       If  to  the  Company:

                               Nettaxi.com
                               1696  Dell  Avenue
                               Campbell,  California  95008
                               Attention: Chairman and Chief Executive Officer
                               Facsimile:  (408)  879-9907

                       With  copy  to:

                               Silicon  Valley  Law  Group
                               50  West  San  Fernando  Street,  Suite  950
                               San  Jose,  California  95113
                               Attention:  James  C.  Chapman,  Esquire
                               Facsimile:(408)  286-1400

If  to  an  Investor: to the address set forth immediately below such Investor's
name  on  the  signature  pages  to  this  Agreement.

<PAGE>
          c.     Failure of any party to exercise any right or remedy under this
Agreement  or otherwise, or delay by a party in exercising such right or remedy,
shall  not  operate  as  a  waiver  thereof.

          d.     This  Agreement shall be interpreted and enforced in accordance
with  the  laws  of  the  State of Delaware, without regard to conflicts of laws
principles  thereof.  The  parties  irrevocably  consent  to  the  exclusive
jurisdiction  of  the  United States District Court for the Northern District of
California,  in  San  Jose,  California,  with respect to any suit or proceeding
based  on  or arising under this Agreement and irrevocably agree that all claims
in  respect  of  such  suit  or  proceeding  shall  be determined in such court.

          e.     This  Agreement,  the  Settlement  Agreement  (including  all
schedules  and  exhibits  thereto),  the  New  Warrants  and the Second Warrants
constitute  the  entire  agreement  among the parties hereto with respect to the
subject  matter  hereof  and  thereof.  There  are  no  restrictions,  promises,
warranties or undertakings, other than those set forth or referred to herein and
therein.  This  Agreement,  the  Settlement  Agreement, the New Warrants and the
Second  Warrants  supersede  all  prior  agreements and understandings among the
parties  hereto  with  respect  to  the  subject  matter  hereof  and  thereof.

          f.     Subject to the requirements of Section 9 hereof, this Agreement
shall  inure to the benefit of and be binding upon the successors and assigns of
each  of  the  parties  hereto.

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

          h.     This  Agreement  may  be  executed in two or more counterparts,
each  of which shall be deemed an original but all of which shall constitute one
and  the  same  agreement.  This  Agreement,  once  executed  by a party, may be
delivered  to the other party hereto by facsimile transmission of a copy of this
Agreement  bearing  the  signature  of  the  party so delivering this Agreement.

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

<PAGE>
          j.     Except  as  otherwise  provided  herein, all consents and other
determinations  to  be made by the Investors pursuant to this Agreement shall be
made  by  Investors holding a majority of the Registrable Securities (determined
as  if  all  of  the Second Warrants and New Warrants then outstanding have been
converted  into  or  exercised  for  Registrable  Securities)  then  held by all
Investors,  as  the  case  may  be.

          k.     The  initial  number  of Registrable Securities included on any
Registration Statement and each increase to the number of Registrable Securities
included  thereon  shall  be allocated pro rata among the Investors based on the
number  of  Registrable  Securities  held  by  each Investor at the time of such
establishment  or  increase, as the case may be.  In the event an Investor shall
sell  or  otherwise  transfer  any of such holder's Registrable Securities, each
transferee  shall  be  allocated a pro rata portion of the number of Registrable
Securities included on a Registration Statement for such transferor.  Any shares
of  Common Stock included on a Registration Statement and which remain allocated
to  any person or entity which does not hold any Registrable Securities shall be
allocated  to the remaining Investors, pro rata based on the number of shares of
Registrable Securities then held by such Investors.  For the avoidance of doubt,
the  number of Registrable Securities held by an Investor shall be determined as
if  all  New  Warrants  and  the Second Warrants then outstanding and held by an
Investor  were  converted  into  or  exercised  for  Registrable  Securities.

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

          m.     In the event that any provision of this Agreement is invalid or
unenforceable  under  any applicable statute or rule of law, then such provision
shall  be  deemed  inoperative  to the extent that it may conflict therewith and
shall  be  deemed  modified  to  conform  with such statute or rule of law.  Any
provision  hereof  which  may prove invalid or unenforceable under any law shall
not  affect  the  validity  or  enforceability  of  any  other provision hereof.

REMAINDER  OF  THIS  PAGE  INTENTIONALLY  LEFT  BLANK]

<PAGE>
     IN WITNESS WHEREOF, the Company and  the undersigned Initial Investors have
caused  this  Agreement  to be duly executed as of the date first above written.

NETTAXI,  INC.

By:  /s/  Robert  Rositano,  Jr.
   ------------------------------
   Robert  Rositano,  Jr.
   Chairman  and  Chief  Executive  Officer

RGC  INTERNATIONAL  INVESTORS,  LDC

By:  Rose  Glen  Capital  Management,  L.P.,  Investment  Manager
        By:  RGC  General  Partner  Corp.,  as  General  Partner

By:  /s/  Wayne  D.  Bloch
   -------------------------
   Wayne  D.  Bloch
   Managing  Director

<PAGE>

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