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THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE UNITED STATES  SECURITIES AND
EXCHANGE  COMMISSION OR THE  SECURITIES  COMMISSION OF ANY STATE  PURSUANT TO AN
EXEMPTION FROM REGISTRATION  UNDER REGULATION D PROMULGATED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "ACT") THIS WARRANT  SHALL NOT  CONSTITUTE AN OFFER
TO SELL NOR A SOLICITATION OF AN OFFER TO BUY THE SECURIITES IN ANY JURISDICTION
IN WHICH  SUCH OFFER OR  SOLICITATION  WOULD BE  UNLAWFUL.  THE  SECURIITES  ARE
"RESTRICTED" AND MAY NOT BE RESOLD OR TRANSFERRED  EXCEPT AS PERMITTED UNDER THE
ACT PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.

                          COMMON STOCK PURCHASE WARRANT

     To Purchase Shares of $0.001 Par Value Common Stock ("Common Stock") of

                           GENESISINTERMEDIA.COM, INC.

     THIS CERTIFIES that, for value received, WESTGATE INTERNATIONAL,  L.P. (the
"Investor")  is  entitled,   upon  the  terms  and  subject  to  the  conditions
hereinafter  set forth,  at any time on or after the date hereof and on or prior
to 8:00 p.m. New York City Time on April 27, 2003 (the "Termination  Date"), but
not thereafter, to subscribe for and purchase from GenesisIntermedia.com,  Inc.,
a Delaware  corporation  (the  "Company"),  56,000  shares of Common  Stock (the
"Warrant  Shares") at an  Exercise  Price equal to $17.74 per share [115% of the
Closing Price] (as adjusted from time to time pursuant to the terms hereof,  the
"Exercise  Price").  The  Exercise  Price and the number of shares for which the
Warrant is exercisable  shall be subject to adjustment as provided herein.  This
Warrant is being issued in connection  with the  Securities  Purchase  Agreement
dated April 28, 2000 (the "Purchase Agreement") entered into between the Company
and the Investor.  Capitalized terms used herein and not otherwise defined shall
have the meaning ascribed thereto in the Purchase Agreement.

     1.  Title of  Warrant.  Prior  to the  expiration  hereof  and  subject  to
compliance  with  applicable  laws,  this Warrant and all rights  hereunder  are
transferable, in whole or in part, at the office or agency of the Company by the
Holder hereof in person or by duly authorized  attorney,  upon surrender of this
Warrant together with (a) the Assignment Form annexed hereto properly  endorsed,
and (b) any other documentation reasonably necessary to satisfy the Company that
such transfer is in compliance  with all  applicable  securities  laws. The term
"Holder"  shall  refer to the  Investor  or any  subsequent  transferee  of this
Warrant.

     2. Authorization of Shares. The Company covenants that all shares of Common
Stock  which may be issued  upon the  exercise  of  rights  represented  by this
Warrant  will,  upon  exercise  of the rights  represented  by this  Warrant and
payment  of the  Exercise  Price as set forth  herein  will be duly  authorized,
validly issued,  fully paid and nonassessable and free from all taxes, liens and
charges  in  respect of the issue  thereof  (other  than taxes in respect of any
transfer  occurring  contemporaneously  with such issue or  otherwise  specified
herein).
<PAGE>

     3. Exercise of Warrant.

     (a) The Holder may exercise this Warrant,  in whole or in part, at any time
and from time to time,  by  delivering  to the  offices  of the  Company  or any
transfer  agent for the Common  Stock this  Warrant,  together  with a Notice of
Exercise in the form annexed hereto specifying the number of Warrant Shares with
respect to which this Warrant is being  exercised,  together with payment to the
Company of the Exercise Price therefor.

     In the event  that the  Warrant  is not  exercised  in full,  the number of
Warrant  Shares shall be reduced by the number of such Warrant  Shares for which
this Warrant is exercised and/or  surrendered,  and the Company, at its expense,
shall within three (3) Trading Days (as defined  below) issue and deliver to the
Holder a new  Warrant  of like  tenor in the name of the Holder or as the Holder
(upon  payment  by  Holder  of  any  applicable  transfer  taxes)  may  request,
reflecting such adjusted Warrant Shares.

     Certificates  for  shares  of Common  Stock  purchased  hereunder  shall be
delivered  to the Holder  hereof  within two (2) Trading  Days after the date on
which  this  Warrant  shall have been  exercised  as  aforesaid.  The Holder may
withdraw  its  Notice of  Exercise  at any time if the  Company  fails to timely
deliver the relevant certificates to the Holder as provided in this Agreement. A
Notice of Exercise  shall be deemed  sent on the date of  delivery if  delivered
before 8:00 p.m.  Eastern Time on such date, or the day  following  such date if
delivered after 8:00 p.m. East Time; provided that the Company is only obligated
to deliver Warrant Shares against delivery of the Exercise Price from the holder
hereof and surrender of this Warrant (or appropriate  affidavit and/or indemnity
in lieu thereof).

     In lieu of delivering physical certificates representing the Warrant Shares
issuable upon conversion of this Warrant,  provided the Company's transfer agent
is  participating  in  the  Depository  Trust  Company  ("DTC")  Fast  Automated
Securities  Transfer ("FAST") program,  upon request of the Holder,  the Company
shall  use its  best  efforts  to cause  its  transfer  agent to  electronically
transmit the Warrant Shares  issuable upon exercise to the Holder,  by crediting
the account of the Holder's prime broker with DTC through its Deposit Withdrawal
Agent Commission  ("DWAC") system. The time periods for delivery described above
shall apply to the electronic  transmittals through the DWAC system. The Company
agrees to coordinate with DTC to accomplish this objective.

     Notwithstanding  the foregoing  provision regarding payment of the Exercise
Price in cash,  during any time that the  Warrant  Shares are not  subject to an
effective  Registration  Statement as required by the terms of the  Registration
Rights Agreement (as defined in the Purchase Agreement), the Holder may elect to
receive a reduced  number of Warrant  Shares in lieu of  tendering  the Exercise
Price in cash.  In such case,  the number of Warrant  Shares to be issued to the
Holder shall be computed using the following formula:

                                       2
<PAGE>
                                X = Y x (A-B)

                                      A

where:   X = the number of Warrant Shares to be issued to the Holder;
         Y = the number of Warrant Shares to be exercised under this Warrant
             Certificate;
         A = the Market Value (defined below) of one share of Common Stock; and
         B = the Exercise Price.

     (b) The term  "Trading  Day" means (x) if the Common Stock is not listed on
the New York or American  Stock Exchange but sale prices of the Common Stock are
reported on Nasdaq National Market or another automated  quotation system, a day
on which  trading is reported on the  principal  automated  quotation  system on
which sales of the Common Stock are reported,  (y) if the Common Stock is listed
on the New York Stock  Exchange or the American Stock  Exchange,  a day on which
there is trading on such stock exchange,  or (z) if the foregoing provisions are
inapplicable,  a day on which  quotations  are  reported by  National  Quotation
Bureau Incorporated.

     The term "Market Value" means the closing bid price of the Common Stock (as
reported by  Bloomberg,  L.P.) on the day before the Notice of Exercise and this
Warrant  are duly  surrendered  to the  Company  for a full or partial  exercise
hereof.  Notwithstanding  the foregoing  definition,  if the Common Stock is not
listed on a national  securities  exchange or quoted in the Nasdaq System at the
time said  Notice of  Exercise  is  submitted  to the  Company in the  foregoing
manner,  the Market Value of the Common Stock shall be as reasonably  determined
in good faith by the Board of Directors  of the Company and such Holder,  unless
the  Company  shall  become   subject  to  a  merger,   acquisition,   or  other
consolidation  pursuant to which the  Company is not the  surviving  entity,  in
which case the Market  Value of the Common Stock shall be deemed to be the value
received  by  the  Company's  common  shareholders  pursuant  to  the  Company's
acquisition (subject to Section 12 below).

     4.  No  Fractional   Shares  or  Scrip.  No  fractional   shares  or  scrip
representing  fractional  shares  shall  be  issued  upon the  exercise  of this
Warrant.  In lieu of issuance of a fractional share upon any exercise hereunder,
the Company  will either  round up to nearest  whole number of shares or pay the
cash value of that fractional share calculated on the basis of the Market Value.

     5. Charges,  Taxes and  Expenses.  Issuance of  certificates  for shares of
Common Stock upon the exercise of this Warrant  shall be made without  charge to
the Holder hereof for any issue or transfer tax or other  incidental  expense in
respect of the  issuance of such  certificate,  all of which taxes and  expenses
shall be paid by the Company,  and such certificates shall be issued in the name
of the Holder of this Warrant or in such name or names as may be directed by the
Holder of this Warrant;  provided,  however,  that in the event certificates for
shares of Common  Stock  are to be issued in a name  other  than the name of the
Holder of this  Warrant,  this Warrant when  surrendered  for exercise  shall be
accompanied by the Assignment  Form attached  hereto duly executed by the Holder
hereof; and provided further,  that the Company shall not be required to pay any
tax or taxes  which may be payable in respect of any  transfer  involved  in the
issuance of any Warrant  certificates or any certificates for the Warrant Shares
other than the  issuance of a Warrant  Certificate  to the Holder in  connection
with the Holder's surrender of a Warrant Certificate upon the exercise of all or
less than all of the Warrants evidenced thereby.

     6.  Closing of Books.  The  Company  will at no time close its  shareholder
books or records in any manner which interferes with the timely exercise of this
Warrant.

                                       3
<PAGE>
     7. No Rights as Shareholder  until Exercise.  Subject to Section 12 of this
Warrant and the  provisions of any other written  agreement  between the Company
and the  Investor,  the  Investor  shall  not be  entitled  to  vote or  receive
dividends or be deemed the holder of Warrant  Shares or any other  securities of
the  Company  that may at any time be issuable  on the  exercise  hereof for any
purpose,  nor shall  anything  contained  herein be construed to confer upon the
Investor,  as such,  any of the rights of a  stockholder  of the  Company or any
right to vote for the  election of  directors  or upon any matter  submitted  to
stockholders  at any  meeting  thereof,  or to give or  withhold  consent to any
corporate  action  (whether  upon  any  recapitalization,   issuance  of  stock,
reclassification  of stock,  change of par  value,  or change of stock to no par
value,  consolidation,  merger, conveyance or otherwise) or to receive notice of
meetings,  or to receive dividends or subscription rights or otherwise until the
Warrant shall have been exercised as provided  herein.  However,  at the time of
the exercise of this Warrant pursuant to Section 3 hereof, the Warrant Shares so
purchased  hereunder  shall be deemed to be issued to such  Holder as the record
owner of such  shares  as of the  close of  business  on the date on which  this
Warrant shall have been exercised.

     8. Assignment and Transfer of Warrant.  This Warrant may be assigned by the
surrender of this Warrant and the  Assignment  Form annexed hereto duly executed
at the office of the Company  (or such other  office or agency of the Company or
its  transfer  agent as the  Company may  designate  by notice in writing to the
registered Holder hereof at the address of such Holder appearing on the books of
the  Company);  provided,  however,  that  this  Warrant  may not be  resold  or
otherwise  transferred  except  (i)  in  a  transaction   registered  under  the
Securities  Act of  1933,  as  amended  (the  "Act"),  or (ii) in a  transaction
pursuant to an exemption,  if  available,  from  registration  under the Act and
whereby,  if  reasonably  requested  by  the  Company,  an  opinion  of  counsel
reasonably satisfactory to the Company is obtained by the Holder of this Warrant
to the  effect  that the  transaction  is so  exempt.  If this  Warrant  is duly
assigned in accordance with the terms hereof,  then the Company agrees, upon the
request  of  the  assignee,  to  amend  or  supplement  promptly  any  effective
registration  statement  covering the Warrant Shares so that the direct assignee
of the original holder is added as a selling stockholder thereunder.

     9. Loss, Theft, Destruction or Mutilation of Warrant; Exchange. The Company
represents  warrants  and  covenants  that (a) upon  receipt  by the  Company of
evidence and/or  indemnity  reasonably  satisfactory  to it of the loss,  theft,
destruction or mutilation of any Warrant or stock  certificate  representing the
Warrant  Shares,  and in  case of  loss,  theft  or  destruction,  of  indemnity
reasonably  satisfactory to it, and (b) upon surrender and  cancellation of such
Warrant or stock certificate,  if mutilated, the Company will make and deliver a
new  Warrant  or  stock   certificate  of  like  tenor  and  dated  as  of  such
cancellation,  in lieu of this Warrant or stock certificate,  without any charge
therefor. This Warrant is exchangeable at any time for an equal aggregate number
of Warrants of different denominations,  as requested by the holder surrendering
the same, or in such  denominations  as may be requested by the Holder following
determination  of the Exercise  Price.  No service  charge will be made for such
registration or transfer, exchange or reissuance.

     10. Saturdays, Sundays, Holidays, etc. If the last or appointed day for the
taking of any action or the  expiration of any right  required or granted herein
shall be a Saturday, Sunday or a legal holiday, then such action may be taken or
such right may be exercised on the next succeeding day not a legal holiday.

                                       4
<PAGE>
     11.  Effect of Certain  Events.  If at any time  while this  Warrant or any
portion  thereof is outstanding  and unexpired  there shall be a transaction (by
merger or  otherwise)  in which more than 50% of the voting power of the Company
is disposed of  (collectively,  a "Sale or Merger  Transaction"),  the Holder of
this Warrant shall have the right  thereafter  to purchase,  by exercise of this
Warrant and payment of the aggregate  Exercise Price in effect immediately prior
to such action,  the kind and amount of shares and other securities and property
which it would have owned or have been  entitled to receive  after the happening
of such transaction had this Warrant been exercised  immediately  prior thereto,
subject to further adjustment as provided in Section 12.

     12. Adjustments of Exercise Price and Number of Warrant Shares.

     The number of and kind of  securities  purchasable  upon  exercise  of this
Warrant and the Exercise Price shall be subject to adjustment  from time to time
as set forth in this Section 12.

     (a) Subdivisions, Combinations, Stock Dividends and other Issuances. If the
Company shall,  at any time while this Warrant is  outstanding,  (A) pay a stock
dividend  or  otherwise  make a  distribution  or  distributions  on any  equity
securities (including instruments or securities convertible into or exchangeable
for such equity securities) in shares of Common Stock, (B) subdivide outstanding
shares  of  Common  Stock  into a  larger  number  of  shares,  or  (C)  combine
outstanding  Common Stock into a smaller  number of shares,  then each  Affected
Exercise  Price (as  defined  below)  shall be  multiplied  by a  fraction,  the
numerator  of which  shall be the number of shares of Common  Stock  outstanding
before such event and the  denominator of which shall be the number of shares of
Common Stock  outstanding after such event. Any adjustment made pursuant to this
Section 12(a) shall become effective  immediately  after the record date for the
determination of stockholders  entitled to receive such dividend or distribution
and shall become effective immediately after the effective date in the case of a
subdivision or combination.  As used herein,  the Affected Exercise Prices (each
an "Affected  Exercise  Price") shall refer to: (i) the Exercise  Price and (ii)
each reported price for the Common Stock on the Principal  Market (as defined in
the Purchase Agreement) occurring on any Trading Day included in the period used
for determining the Closing Price,  which Trading Day occurred before the record
date in the case of events referred to in clause (A) of this subparagraph  12(a)
and the effective date in the case of the events  referred to in clauses (B) and
(C) of this subparagraph 12(a). "Closing Price" shall have the meaning set forth
in the Purchase Agreement. The number of shares which may be purchased hereunder
shall be increased  proportionately  to any reduction in Exercise Price pursuant
to this paragraph 12(a), so that after such  adjustments the aggregate  Exercise
Price payable  hereunder for the increased number of shares shall be the same as
the aggregate Exercise Price in effect just prior to such adjustments.

     (b) Other  Distributions.  If at any time after the date hereof the Company
distributes  to  holders  of  its  Common  Stock,  other  than  as  part  of its
dissolution,  liquidation  or the winding up of its  affairs,  any shares of its
capital  stock,  any evidence of  indebtedness  or any of its assets (other than
Common  Stock),  then the  number of Warrant  Shares  for which this  Warrant is
exercisable  shall be increased to equal:  (i) the number of Warrant  Shares for
which  this  Warrant  is  exercisable  immediately  prior  to such  event,  (ii)
multiplied  by a fraction,  (A) the  numerator of which shall be the Fair Market
Value (as  defined  below) per share of Common  Stock on the record date for the
dividend or  distribution,  and (B) the  denominator  of which shall be the Fair
Market Value price per share of Common Stock on the record date for the dividend
or distribution  minus the amount  allocable to one share of Common Stock of the
value (as  jointly  determined  in good faith by the Board of  Directors  of the
Company and the Holder) of any and all such evidences of indebtedness, shares of
capital stock,  other  securities or property,  so distributed.  For purposes of
this Warrant,  "Fair Market Value" shall equal the 5 Trading Day average closing
trading  price of the Common  Stock on the  Principal  Market (as defined in the
Purchase  Agreement) for the 5 Trading Days preceding the date of  determination
or, if the Common  Stock is not listed or admitted  to trading on any  Principal
Market,  and the average price cannot be determined as contemplated  above,  the
Fair Market Value of the Common Stock shall be as reasonably  determined in good
faith by the  Company's  Board of Directors and the Holder.  The Exercise  Price
shall be reduced to equal: (i) the Exercise Price in effect  immediately  before
the occurrence of any event (ii) multiplied by a fraction,  (A) the numerator of
which is the number of Warrant  Shares  for which  this  Warrant is  exercisable
immediately  before  the  adjustment,  and (B) the  denominator  of which is the
number of Warrant Shares for which this Warrant is exercisable immediately after
the adjustment.

                                       5
<PAGE>
     (c)  Merger,  etc.  If at any time after the date  hereof  there shall be a
merger or  consolidation  of the  Company  with or into or a transfer  of all or
substantially  all of the  assets of the  Company to  another  entity,  then the
Holder  shall be  entitled  to receive  upon or after such  transfer,  merger or
consolidation becoming effective, and upon payment of the Exercise Price then in
effect,  the number of shares or other  securities or property of the Company or
of the successor corporation resulting from such merger or consolidation,  which
would have been  received by the Holder for the shares of stock  subject to this
Warrant had this Warrant been exercised  just prior to such transfer,  merger or
consolidation  becoming  effective or to the applicable record date thereof,  as
the case may be.  The  Company  will not merge or  consolidate  with or into any
other  corporation,  or sell or  otherwise  transfer  its  property,  assets and
business  substantially  as an  entirety  to  another  corporation,  unless  the
corporation resulting from such merger or consolidation (if not the Company), or
such  transferee  corporation,  as the case may be,  shall  expressly  assume in
writing  the due and  punctual  performance  and  observance  of each and  every
covenant  and  condition  of this  Warrant to be  performed  and observed by the
Company.

     (d) Reclassification, etc. If at any time after the date hereof there shall
be a reorganization or  reclassification  of the securities as to which purchase
rights  under  this  Warrant  exist  into  the  same or a  different  number  of
securities  of any other class or classes,  then the Holder shall  thereafter be
entitled to receive upon exercise of this Warrant,  during the period  specified
herein and upon  payment  of the  Exercise  Price then in effect,  the number of
shares or other  securities or property  resulting from such  reorganization  or
reclassification, which would have been received by the Holder for the shares of
stock subject to this Warrant had this Warrant at such time been exercised.

     (e)  Exercise  Price  Adjustment.  In the event that the Company  issues or
sells any Common Stock or securities  which are convertible into or exchangeable
for its Common  Stock or any  convertible  securities,  or any warrants or other
rights to  subscribe  for or to purchase or any options for the  purchase of its
Common Stock or any such  convertible  securities  (other than shares or options
issued or which may be issued  pursuant to (i) the  Company's  current  employee
option  plans or shares  issued upon  exercise  of  options,  warrants or rights
outstanding on the date of the Agreement and listed in the Company's most recent
periodic  report filed under the Exchange Act or in the Purchase  Agreement,  or
(ii)  arrangements  with the Investor) at an effective  price per share which is
less than the  greater of the  Exercise  Price then in effect or the Fair Market
Value (as  described in Section  12(b) above) of the Common Stock on the trading
day next  preceding  such issue or sale,  then in each such case,  the  Exercise
Price in  effect  immediately  prior  to such  issue  or sale  shall be  reduced
effective  concurrently  with  such  issue or sale to an  amount  determined  by
multiplying  the Exercise Price then in effect by a fraction,  (x) the numerator
of  which  shall  be the  sum of (1)  the  number  of  shares  of  Common  Stock
outstanding  immediately  prior to such  issue or sale,  plus (2) the  number of
shares of Common Stock which the aggregate consideration received by the Company
for such additional  shares would purchase at such Fair Market Value or Exercise
Price,  whichever is greater,  then in effect;  and (y) the denominator of which
shall be the  number  of  shares  of  Common  Stock of the  Company  outstanding
immediately after such issue or sale.

     For the purposes of the foregoing  adjustment,  in the case of the issuance
of any convertible  securities,  warrants,  options or other rights to subscribe
for or to  purchase  or  exchange  for,  shares  of Common  Stock  ("Convertible

                                       6
<PAGE>
Securities"),  the  maximum  number  of shares of  Common  Stock  issuable  upon
exercise,  exchange or conversion of such Convertible Securities shall be deemed
to be outstanding,  provided that no further  adjustment  shall be made upon the
actual  issuance of Common Stock upon  exercise,  exchange or conversion of such
Convertible Securities.

     The number of shares  which may be purchased  hereunder  shall be increased
proportionately  to any reduction in Exercise  Price  pursuant to this paragraph
12(e),  so that after such  adjustments  the  aggregate  Exercise  Price payable
hereunder for the increased  number of shares shall be the same as the aggregate
Exercise Price in effect just prior to such adjustments.

     In the event of any such  issuance for a  consideration  which is less than
such Fair  Market  Value and also less than the  Exercise  Price then in effect,
than there shall be only one such  adjustment by reason of such  issuance,  such
adjustment  to be that which  results in the greatest  reduction of the Exercise
Price computed as aforesaid.

     (f) (i) The  terms  of any  reorganization,  consolidation,  merger,  sale,
transfer or share exchange shall include such terms so as to continue to give to
the holder  hereof the right to receive the  securities or property set forth in
this  Section  12  upon  any  exercise  following  any  such   reclassification,
consolidation, merger, sale, transfer or share exchange.

     (ii) In the  event  of any  adjustment  in the  number  of  Warrant  Shares
issuable  hereunder  upon  exercise,  the  Exercise  Price  shall  be  inversely
proportionately  increased or decreased as the case may be, such that  aggregate
purchase  price for Warrant  Shares upon full  exercise  of this  Warrant  shall
remain  the same.  Similarly,  in the event of any  adjustment  in the  Exercise
Price,  the number of Warrant Shares  issuable  hereunder upon exercise shall be
inversely  proportionately  increased or decreased as the case may be, such that
aggregate  purchase  price for Warrant Shares upon full exercise of this Warrant
shall remain the same.

     13. Voluntary  Adjustment by the Company. The Company may at its option, at
any time  during  the term of this  Warrant,  reduce but not  increase  the then
current  Exercise  Price  to any  amount  and for  any  period  of  time  deemed
appropriate by the Board of Directors of the Company.

     14.  Notice of  Adjustment;  Notice of Events.  (i)  Whenever the number of
Warrant  Shares or number or kind of  securities or other  property  purchasable
upon the exercise of this Warrant or the Exercise Price is adjusted, the Company
shall  promptly  mail to the Holder of this Warrant a notice  setting  forth the
number of Warrant Shares (and other securities or property) purchasable upon the
exercise of this  Warrant and the Exercise  Price of such  Warrant  Shares after
such adjustment and setting forth the computation of such adjustment and a brief
statement of the facts requiring such adjustment. (ii) If: (A) the Company shall
declare a dividend (or any other  distribution)  on its Common Stock; or (B) the
Company shall declare a special nonrecurring cash dividend on or a redemption of
its Common Stock; or (C) the Company shall authorize the granting to all holders
of the Common Stock  rights or warrants to subscribe  for or purchase any shares
of  capital  stock of any class or of any  rights;  or (D) the  approval  of any
stockholders   of  the  Company  shall  be  required  in  connection   with  any
reclassification of the Common Stock of the Company, any consolidation or merger
to which the Company is a party,  any sale or  transfer of all or  substantially
all of the assets of the Company,  or any compulsory  share exchange whereby the
Common Stock is converted into other  securities,  cash or property;  or (E) the
Company shall authorize the voluntary dissolution,  liquidation or winding up of
the affairs of the  Company,  then the Company  shall cause to be mailed to each
Warrant  holder at their last  addresses  as they shall  appear upon the Warrant
register  of the  Company,  at least 30  calendar  days prior to the  applicable

                                       7
<PAGE>
record or effective date hereinafter  specified (or such lesser time as is equal
to the period  between the date of fixing such record or effective date and such
record or effective  date,  but in no event less than 10 days), a notice stating
(x) the date on which a record is to be taken for the purpose of such  dividend,
distribution, redemption, rights or warrants, or if a record is not to be taken,
the date as of which the  holders of Common  Stock of record to be  entitled  to
such  dividend,  distributions,   redemption,  rights  or  warrants  are  to  be
determined  or (y)  the  date on  which  such  reclassification,  consolidation,
merger,  sale,  transfer or share  exchange is expected to become  effective  or
close,  and the date as of which it is expected  that holders of Common Stock of
record  shall  be  entitled  to  exchange  their  shares  of  Common  Stock  for
securities,  cash or other  property  deliverable  upon  such  reclassification,
consolidation,  merger, sale, transfer, share exchange, dissolution, liquidation
or winding up.

     15.  Authorized  Shares.  The Company  covenants that during the period the
Warrant is outstanding and exercisable,  it will reserve from its authorized and
unissued Common Stock a sufficient  number of shares to provide for the issuance
of the Warrant  Shares upon the  exercise of any and all  purchase  rights under
this Warrant.  The Company  further  covenants that its issuance of this Warrant
shall constitute full authority to its officers who are charged with the duty of
executing stock certificates to execute and issue the necessary certificates for
the Warrant Shares upon the exercise of the purchase  rights under this Warrant.
The Company will take all such  reasonable  action as may be necessary to assure
that such Warrant Shares may be issued as provided  herein without  violation of
any applicable law, regulation, or rule of any applicable market or exchange.

     16. 9.99% Limitation.

     (i)  Notwithstanding  anything to the contrary contained herein, the number
of shares of Common  Stock  that may be  acquired  by the holder  upon  exercise
pursuant to the terms hereof  shall not exceed a number that,  when added to the
total number of shares of Common Stock deemed  beneficially owned by such holder
(other  than by virtue  of the  ownership  of  securities  or rights to  acquire
securities that have  limitations on the holder's right to convert,  exercise or
purchase  similar to the limitation set forth herein),  together with all shares
of Common  Stock deemed  beneficially  owned by the  holder's  "affiliates"  (as
defined in Rule 144 of the Act) ("Aggregation Parties") that would be aggregated
for  purposes  of  determining  whether  a  group  under  Section  13(d)  of the
Securities  Exchange Act of 1934 as amended,  exists,  would exceed 9.99% of the
total  issued  and  outstanding  shares of the  Common  Stock  (the  "Restricted
Ownership  Percentage");  provided  that (w) each holder shall have the right at
any time and from time to time to reduce  its  Restricted  Ownership  Percentage
immediately  upon notice to the Company and (x) each holder shall have the right
(subject  to  waiver)  at any time  and  from  time to  time,  to  increase  its
Restricted Ownership Percentage  immediately in the event of the announcement as
pending or planned, of a transaction or event referred to in Section 5(m) of the
Certificate.

     (ii) Each time (a "Covenant Time") the holder or an Aggregation Party makes
a  Triggering  Acquisition  (as  defined  below) of shares of Common  Stock (the
"Triggering  Shares"),  the holder will be deemed to covenant  that it will not,
during the balance of the day on which such Triggering  Acquisition  occurs, and
during  the  61-day  period  beginning   immediately  after  that  day,  acquire
additional shares of Common Stock pursuant to rights-to-acquire existing at that
Covenant  Time, if the aggregate  amount of such  additional  shares so acquired
(without reducing that amount by any dispositions) would exceed (x) 9.99% of the
number of shares of Common Stock  outstanding  at that Covenant Time  (including
the  Triggering  Shares) minus (y) the number of shares of Common Stock actually
owned by the holder at that Covenant Time  (regardless  of how or when acquired,
and including the  Triggering  Shares).  A  "Triggering  Acquisition"  means the
giving of a Notice of Exercise or any other  acquisition  of Common Stock by the
holder or an  Aggregation  Party;  provided,  however,  that with respect to the
giving of such  Notice of  Exercise,  if the  associated  issuance  of shares of

                                       8
<PAGE>
Common  Stock  does  not  occur,  such  event  shall  cease  to be a  Triggering
Acquisition and the related  covenant under this paragraph shall  terminate.  At
each  Covenant  Time,  the  holder  shall be  deemed to waive any right it would
otherwise  have to  acquire  shares  of  Common  Stock to the  extent  that such
acquisition would violate any covenant given by the holder under this paragraph.
Notwithstanding  anything to the contrary in the Transaction  Documents,  in the
event of a conflict  between any  covenant  given under this  paragraph  and any
obligation  of the holder to exercise this Warrant  pursuant to the  Transaction
Documents,  the former  shall  supersede  the  latter,  and the latter  shall be
reduced accordingly. For the avoidance of doubt:

               (A) The covenant to be given  pursuant to this  paragraph will be
          given at every  Covenant  Time and  shall be  calculated  based on the
          circumstances then in effect. The making of a covenant at one Covenant
          Time shall not terminate or modify any prior covenants.

               (B) The  holder  may  therefore  from time to time be  subject to
          multiple  such  covenants,  each one having  been made at a  different
          Covenant Time, and some possibly being more  restrictive  than others.
          The holder must comply with all such covenants then in effect.

     17.  Compliance  with Securities  Laws. (a) The Holder hereof  acknowledges
that the Warrant  Shares  acquired  upon the  exercise of this  Warrant,  if not
registered (or if no exemption from registration exists), will have restrictions
upon  resale  imposed by state and federal  securities  laws.  Each  certificate
representing  the  Warrant  Shares  issued to the Holder upon  exercise  (if not
registered,  for  resale or  otherwise,  or if no  exemption  from  registration
exists) will bear substantially the following legend:

THE SHARES  REPRESENTED BY THIS  CERTIFICATE  HAVE NOT BEEN  REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES  COMMISSION OF ANY STATE IN
RELIANCE UPON AN EXEMPTION FROM  REGISTRATION  UNDER THE SECURITIES ACT OF 1933,
AS  AMENDED  (THE  "SECURITIES  ACT"),  AND,  ACCORDINGLY,  MAY NOT BE  OFFERED,
TRANSFERRED,  SOLD OR  OTHERWISE  DISPOSED OF EXCEPT  PURSUANT  TO AN  EFFECTIVE
REGISTRATION  STATEMENT  UNDER THE  SECURITIES  ACT OR PURSUANT TO AN  AVAILABLE
EXEMPTION  FROM,  OR  IN  A  TRANSACTION   NOT  SUBJECT  TO,  THE   REGISTRATION
REQUIREMENTS  OF THE  SECURITIES  ACT AND IN ACCORDANCE  WITH  APPLICABLE  STATE
SECURITIES LAWS.

     (b) Without limiting the Investor's right to transfer,  assign or otherwise
convey  the  Warrant  or  Warrant  Shares  in  compliance  with  all  applicable
securities   laws,  the  Investor  of  this  Warrant,   by  acceptance   hereof,
acknowledges that this Warrant and the Warrant Shares to be issued upon exercise
hereof are being  acquired  solely for the  Investor's  own account and not as a
nominee  for any other  party,  and that the  Investor  will not offer,  sell or
otherwise  dispose  of this  Warrant  or any  Warrant  Shares to be issued  upon
exercise hereof except under  circumstances  that will not result in a violation
of applicable federal and state securities laws.

     18. Miscellaneous.

     (a) Issue Date; Choice of Law; Venue; Jurisdiction.  The provisions of this
Warrant  shall be  construed  and shall be given effect in all respects as if it
had been issued and  delivered by the Company on the date  hereof.  This Warrant
shall be binding upon any  successors  or assigns of the  Company.  This Warrant
will be construed  and enforced in  accordance  with and governed by the laws of

                                       9
<PAGE>
the  State of New York,  except  for  matters  arising  under  the Act,  without
reference to principles of conflicts of law. Each of the parties consents to the
exclusive  jurisdiction of the FEDERAL AND STATE CourtS sitting in the COUNTY of
New York in the State of New York in connection  with any dispute  arising under
this  Warrant and hereby  waives,  to the maximum  extent  permitted by law, any
objection,  including any objection  based on forum non conveniens OR VENUE,  to
the  bringing of any such  proceeding  in such  jurisdiction.  Each party hereby
agrees that if the other party to this Warrant obtains a judgment  against it in
such a  proceeding,  the party which  obtained such judgment may enforce same by
summary judgment in the courts of any country having jurisdiction over the party
against  whom such  judgment  was  obtained,  and each party  hereby  waives any
defenses available to it under local law and agrees to the enforcement of such a
judgment.  Each party to this  Warrant  irrevocably  consents  to the service of
process in any such proceeding by the mailing of copies thereof by registered or
certified mail, postage prepaid, to such party at its address in accordance with
Section  18(c).  Nothing  herein  shall  affect  the right of any party to serve
process in any other manner permitted by law.

     (b) Modification and Waiver.  This Warrant and any provisions hereof may be
changed,  waived,  discharged  or  terminated  only by an  instrument in writing
signed  by the  party  against  which  enforcement  of the same is  sought.  Any
amendment  effected in accordance  with this paragraph shall be binding upon the
Investor,  each future holder of this Warrant and the Company. No waivers of, or
exceptions to, any term,  condition or provision of this Warrant,  in any one or
more instances,  shall be deemed to be, or construed as, a further or continuing
waiver of any such term, condition or provision.

     (c) Notices. Any notice, request or other document required or permitted to
be given or delivered to the  Investor or future  holders  hereof or the Company
shall be personally  delivered or shall be sent by certified or registered mail,
postage prepaid,  to the Investor or each such holder at its address as shown on
the books of the  Company  or to the  Company  at the  address  set forth in the
Purchase Agreement.  All notices under this Warrant shall be deemed to have been
given when received.

     A party may from time to time change the address to which notices to it are
to be delivered or mailed  hereunder by notice in accordance with the provisions
of this Section 18(c).

     (d) Severability.  Whenever possible,  each provision of this Warrant shall
be interpreted in such manner as to be effective and valid under applicable law,
but if any  provision  of  this  Warrant  is  held  to be  invalid,  illegal  or
unenforceable   in  any  respect  under  any  applicable  law  or  rule  in  any
jurisdiction,  such invalidity,  illegality or unenforceability shall not affect
the validity,  legality or enforceability of any other provision of this Warrant
in such  jurisdiction or affect the validity,  legality or enforceability of any
provision  in any  other  jurisdiction,  but this  Warrant  shall  be  reformed,
construed  and  enforced in such  jurisdiction  as if such  invalid,  illegal or
unenforceable provision had never been contained herein.

     (e) No Impairment. The Company will not, by amendment of its Certificate of
Incorporation or through any reorganization,  transfer of assets, consolidation,
merger, dissolution,  issue or sale of securities or any other voluntary 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  action  as may be  necessary  or
appropriate  in order to protect  the rights of the Holder  against  impairment.
Without  limiting  the  generality  of the  foregoing,  the Company (a) will not
increase the par value of any Warrant Shares above the amount  payable  therefor
on such  exercise,  and (b)  will  take  all such  action  as may be  reasonably
necessary or appropriate in order that the Company may validly and legally issue
fully paid and nonassessable Warrant Shares on the exercise of this Warrant.

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

                            [Signature Page Follows]

                                       10
<PAGE>
     IN WITNESS  WHEREOF,  the Company has caused this Warrant to be executed by
its officers thereunto duly authorized.

Dated: April _______, 2000

                                          GenesisIntermedia.com, Inc.

                                          By: ______________________________
                                                 Name:    Ramy El-Batrawi
                                                 Title:   President

ATTEST:

________________________
Print Name:

<PAGE>
                               NOTICE OF EXERCISE

To:      GenesisIntermedia.com, Inc.

     (1) The undersigned  hereby elects to exercise the attached Warrant for and
to purchase  thereunder,  ______  shares of Common  Stock,  and  herewith  makes
payment therefor of $_______,  or elects to use the cashless  exercise option of
the Warrant in the event  Warrant  Shares are not  registered as required in the
Registration Rights Agreement.

     (2) Please issue a certificate or certificates  representing said shares of
Common  Stock  in the  name  of the  undersigned  or in  such  other  name as is
specified below:

                           _______________________________
                           (Name)

                           _______________________________
                           (Address)
                           _______________________________

     (3) Please issue a new Warrant for the unexercised  portion of the attached
Warrant in the name of the  undersigned  or in such  other name as is  specified
below:

                                     ___________________________________
                                     (Name)

____________________                 ___________________________________
(Date)                               (Signature)
                                     ___________________________________
                                     (Address)

Dated:

______________________________
Signature

<PAGE>

                                 ASSIGNMENT FORM

                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

     FOR VALUE RECEIVED,  the foregoing Warrant and all rights evidenced thereby
are   hereby   assigned   to   ___________________________   whose   address  is
____________________________________________.

Dated:  ______________,

                           Holder's Signature: _____________________________

                           Holder's Address:   _____________________________

                                               _____________________________

Signature Guaranteed:  ___________________________________________

NOTE: The signature to this  Assignment Form must correspond with the name as it
appears on the face of the Warrant,  without  alteration or  enlargement  or any
change whatsoever,  and must be guaranteed by a bank or trust company.  Officers
of  corporations  and  those  acting  in an  fiduciary  or other  representative
capacity  should  file  proper  evidence of  authority  to assign the  foregoing
Warrant.REGISTRATION RIGHTS AGREEMENT

     This  Registration  Rights  Agreement  ("Agreement")  is entered into as of
April __, 2000, between GenesisIntermedia.com, Inc., a Delaware corporation with
offices at 5805 Sepulveda Boulevard,  Van Nuys, California 91411 (the "Company")
and Elliott  Associates,  L.P.,  a Delaware  limited  partnership,  and Westgate
International,  L.P., a Cayman Islands  limited  partnership  (individually  and
collectively, the "Investor").

                              W I T N E S S E T H:

     Whereas,  pursuant to that certain Securities Purchase Agreement,  dated on
or about the date  hereof,  by and between the  Company  and the  Investor  (the
"Purchase Agreement"), the Company has agreed to sell and issue to the Investor,
and the Investor has agreed to purchase from the Company,  an aggregate of 4,000
shares, Liquidation Preference $1,000 each, of the Company's Series B Cumulative
Convertible  Preferred Stock (the "Preferred  Shares")  subject to the terms and
conditions set forth therein,  and Warrants (the  "Warrants") to purchase shares
of the Company's  Common Stock,  par value $0.001 per share (the "Common Stock")
subject to the terms and conditions set forth therein; and

     Whereas, the Purchase Agreement contemplates that the Preferred Shares will
be convertible into shares (the "Common Shares") of Common Stock pursuant to the
terms  and  conditions  set forth in the  Certificate  of  Designations  for the
Preferred Shares (the "Certificate"); and

     Now, Therefore,  in consideration of the mutual promises,  representations,
warranties,  covenants and  conditions  set forth in the Purchase  Agreement and
this Agreement, the Company and the Investors agree as follows:

     1. Certain  Definitions.  Capitalized  terms used herein and not  otherwise
defined shall have the meaning ascribed thereto in the Purchase Agreement or the
Certificate.  As used in this  Agreement,  the  following  terms  shall have the
following respective meanings:

     "Closing" and "Closing Date" shall have the meanings ascribed to such terms
in the Purchase Agreement.

     "Commission" or "SEC" shall mean the Securities and Exchange  Commission or
any other federal agency at the time administering the Securities Act.

     "Holder" and  "Holders"  shall  include the Investor and any  transferee or
transferees  of the Preferred  Shares,  Warrants,  Common Shares or  Registrable
Securities  which  have not been  sold to the  public  to whom the  registration
rights conferred by this Agreement have been transferred in compliance with this
Agreement and the Purchase Agreement.

<PAGE>
     The terms  "register",  "registered"  and  "registration"  shall refer to a
registration  effected  by  preparing  and filing a  registration  statement  in
compliance  with  the  Securities  Act  and  applicable  rules  and  regulations
thereunder,  and  the  declaration  or  ordering  of the  effectiveness  of such
registration statement.

     "Registrable  Securities"  shall  mean:  (i) the  Common  Shares  or  other
securities  issued or  issuable to each Holder or its  permitted  transferee  or
designee upon  conversion  of the Preferred  Shares or exercise of the Warrants;
(ii)  securities  issued or  issuable  upon any  stock  split,  stock  dividend,
recapitalization  or similar event with respect to such Common Shares; and (iii)
any other security issued as a dividend or other  distribution  with respect to,
in exchange for or in replacement of the securities referred to in the preceding
clauses.

     "Registration  Expenses"  shall mean all  expenses  to be  incurred  by the
Company  in  connection  with  each  Holder's  registration  rights  under  this
Agreement,  including,  without  limitation,  all  registration and filing fees,
printing expenses,  fees and disbursements of counsel for the Company,  blue sky
fees and  expenses,  reasonable  fees and  disbursements  of  counsel to Holders
(using a single counsel selected by a majority in interest of the Holders) for a
review of the Registration  Statement and related documents,  and the expense of
any  special  audits  incident  to or  required  by any such  registration  (but
excluding the compensation of regular  employees of the Company,  which shall be
paid in any event by the Company).

     "Registration  Statement"  shall have the meaning set forth in Section 2(a)
herein.

     "Regulation  D" shall mean  Regulation  D as  promulgated  pursuant  to the
Securities Act, and as subsequently amended.

     "Securities  Act" or "Act"  shall  mean  the  Securities  Act of  1933,  as
amended.

     "Selling  Expenses"  shall  mean all  underwriting  discounts  and  selling
commissions  applicable to the sale of  Registrable  Securities and all fees and
disbursements   of  counsel  for  Holders  not  included  within   "Registration
Expenses".

     2.  Registration  Requirements.  The Company  shall use its best efforts to
effect  the  registration  of the  Registrable  Securities  (including,  without
limitation,  the execution of an undertaking to file post-effective  amendments,
appropriate  qualification  under  applicable blue sky or other state securities
laws and appropriate  compliance with  applicable  regulations  issued under the
Securities  Act) as would permit or facilitate the sale or  distribution  of all
the Registrable  Securities in the manner  (including manner of sale) and in all
states  reasonably  requested  by the Holder.  Such best  efforts by the Company
shall include,  without  limitation,  the following:

                                       2
<PAGE>

     (a) The Company shall, as expeditiously as possible after the Closing Date:

          i) But in any event within 75 days of the Closing,  prepare and file a
     registration  statement with the Commission  pursuant to Rule 415 under the
     Securities  Act on Form S-3 under the  Securities Act (or in the event that
     the Company is ineligible to use such form,  such other form as the Company
     is eligible to use under the  Securities  Act provided that such other form
     shall be converted into an S-3 as soon as Form S-3 becomes available to the
     Company) covering resales by the Holders of the Registrable  Securities and
     no  other  securities   ("Registration   Statement"),   which  Registration
     Statement,  to the extent  allowable under the Securities Act and the rules
     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  conversion  of the
     Preferred  Shares and  exercise  of the  Warrants.  The number of shares of
     Common Stock initially included in such Registration  Statement shall be no
     less than the sum of two times the  number of Common  Shares  that are then
     issuable upon  conversion of the Preferred  Shares and the number of shares
     issuable  upon  exercise  of the  Warrants  (assuming  full  conversion  or
     exercise, respectively, at the then applicable Conversion Price (as defined
     in the Certificate) or Exercise Price (as defined in the Warrant).  Nothing
     in the preceding  sentence will limit the Company's  obligations to reserve
     shares of Common Stock  pursuant to Section 3.7 of the Purchase  Agreement.
     Thereafter   the  Company   shall  use  its  best  efforts  to  cause  such
     Registration  Statement and other filings to be declared  effective as soon
     as possible, and in any event prior to 135 days following the Closing Date.
     Without  limiting the foregoing,  the Company will promptly  respond to all
     SEC comments,  inquiries and requests,  and shall request  acceleration  of
     effectiveness at the earliest  possible date. The Company shall provide the
     Holders reasonable opportunity to review any such Registration Statement or
     amendment or supplement thereto prior to filing.

          ii) Prepare and file with the SEC such  amendments and  supplements to
     such Registration Statement and the prospectus used in connection with such
     Registration Statement as may be necessary to comply with the provisions of
     the Act with respect to the  disposition of all securities  covered by such
     Registration   Statement   and  notify  the   Holders  of  the  filing  and
     effectiveness  of  such  Registration   Statement  and  any  amendments  or
     supplements.

          iii)  Furnish  to each  Holder  such  numbers  of  copies of a current
     prospectus  conforming  with the  requirements  of the Act,  copies  of the
     Registration  Statement,  any  amendment  or  supplement  thereto  and  any
     documents  incorporated  by reference  therein and such other  documents as
     such Holder may reasonably  require in order to facilitate the  disposition
     of Registrable  Securities  owned by such Holder.

                                       3
<PAGE>
          iv) Register and qualify the securities  covered by such  Registration
     Statement  under  the  securities  or  "Blue  Sky"  laws  of  all  domestic
     jurisdictions;   provided  that  the  Company  shall  not  be  required  in
     connection therewith or as a condition thereto to qualify to do business or
     to file a general  consent to  service  of  process  in any such  states or
     jurisdictions.

          v) Notify each Holder  immediately  of the happening of any event (but
     not the  substance  or  details  of any  such  events  unless  specifically
     requested by a Holder) as a result of which the  prospectus  (including any
     supplements thereto or thereof) included in such Registration Statement, as
     then in effect,  includes an untrue  statement of material fact or omits to
     state a material  fact  required to be stated  therein or necessary to make
     the statements  therein not misleading in light of the  circumstances  then
     existing,  and use its best efforts to promptly  update and/or correct such
     prospectus.

          vi) Notify each Holder  immediately  of the issuance by the Commission
     or any state  securities  commission or agency of any stop order suspending
     the effectiveness of the Registration Statement or the threat or initiation
     of any proceedings for that purpose. The Company shall use its best efforts
     to prevent the issuance of any stop order and, if any stop order is issued,
     to obtain the lifting thereof at the earliest possible time.

          vii)  Permit  counsel  to  the  Holders  to  review  the  Registration
     Statement and all  amendments and  supplements  thereto within a reasonable
     period of time (but not less than 5 full  Trading  Days (as  defined in the
     Certificate))  prior to each  filing,  and shall not file any document in a
     form to  which  such  counsel  reasonably  objects  and  will  not  request
     acceleration  of the  Registration  Statement  without prior notice to such
     counsel. viii) List the Registrable Securities covered by such Registration
     Statement  with all  securities  exchange(s)  and/or  markets  on which the
     Common Stock is then listed and prepare and file any required  filings with
     the Nasdaq National  Market and Pacific  Exchange or any exchange or market
     where the Common Shares are traded.

          ix) Take all steps necessary to enable Holders to avail  themselves of
     the  prospectus  delivery  mechanism  set  forth in Rule 153 (or  successor
     thereto) under the Act.

     (b) Set forth below in this Section 2(b) are (I) events that may arise that
the Investors  consider will  interfere  with the full enjoyment of their rights
under this Agreement,  the Purchase Agreement,  the Warrants and the Certificate
(the  "Interfering  Events"),  and (II) certain  remedies  applicable in each of
these events.

                                       4
<PAGE>
     Paragraphs  (i) through (iv) of this Section 2(b) describe the  Interfering
Events,  provide a remedy to the  Investors if an  Interfering  Event occurs and
provide that the Investors may require that the Company  repurchase  outstanding
Preferred Shares and Warrants at a specified price if certain Interfering Events
are not timely cured.

     Paragraph (v) provides, inter alia, that if default adjustments required as
the  remedy in the case of certain of the  Interfering  Events are not  provided
when due,  the Company may be required by the  Investors  to redeem  outstanding
Preferred Shares and Warrants at a specified price.

     Paragraph (vi) provides,  inter alia,  that the Investors have the right to
specific performance.

     The preceding paragraphs in this Section 2(b) are meant to serve only as an
introduction to this Section 2(b), are for  convenience  only, and are not to be
considered in applying,  construing or interpreting  this Section 2(b). i) Delay
in Effectiveness of Registration Statement.

          (A) In the  event  that  such  Registration  Statement  has  not  been
     declared effective within 135 days from the Closing Date, or the Company at
     any time fails to issue  unlegended  Registrable  Securities as required by
     Article  VI of the  Purchase  Agreement,  then the  Company  shall pay each
     Holder a Monthly  Delay  Payment (as defined  below) for each 30-day period
     (or portion thereof) that  effectiveness  of the Registration  Statement is
     delayed  or  failure  to  issue  such  unlegended   Registrable  Securities
     persists. In addition to the foregoing,  if the Registration  Statement has
     not been declared  effective  within 210 days after the Closing Date,  then
     each Holder  shall have the right to sell,  at any time after the 210th day
     after the Closing Date, any or all of its Preferred  Shares and Warrants to
     the Company for consideration  (the "Mandatory  Repurchase Price") equal to
     (I) for the Preferred  Shares,  the greater of (x) 125% of the  Liquidation
     Preference of all such Preferred  Shares being sold to the Company,  or (y)
     the  Liquidation  Preference  for the  Preferred  Shares  being sold to the
     Company divided by the then applicable  Conversion  Price multiplied by the
     greater of the last  closing  price of the  Common  Stock on (i) the date a
     Holder  exercises  its  option  pursuant  to this  Section  2(b) to require
     repurchase  of  Preferred  Shares  or (ii)  the  date on  which  the  event
     triggering  Holder's  remedies under this Section 2(b) first  occurred,  in
     each case payable in cash and (II) for the Warrants, 125% of the product of
     (a) the difference between the greater of clauses (i) or (ii) above and the

                                       5
<PAGE>
     exercise  price of the  Warrants,  multiplied by (b) the number of Warrants
     being sold to the Company, payable in cash.

          (B) As used in this  Agreement,  a "Monthly  Delay Payment" shall be a
     cash payment  equal to 1% of the  Liquidation  Preference  of the Preferred
     Shares held by a Holder for the first  30-day  period (or portion  thereof)
     that the specified condition in this Section 2(b) has not been fulfilled or
     the specified  deficiency  has not been  remedied,  2% of such  Liquidation
     Preference  for the  next  30-day  period  (or  portion  thereof)  that the
     specified  condition  in this  Section  2(b) has not been  fulfilled or the
     specified  deficiency  has not been  remedied,  and 3% of such  Liquidation
     Preference  thereafter  for  each  subsequent  30-day  period  (or  portion
     thereof)  that the  specified  condition  in this Section 2(b) has not been
     fulfilled or the specified  deficiency  has not been remedied  (prorated in
     each case as  appropriate).  Payment  of the  Monthly  Delay  Payments  and
     Mandatory  Repurchase  Price shall be due and  payable  from the Company to
     such Holder within 5 business days of demand therefor. Without limiting the
     foregoing,  if cash payment of the Mandatory  Repurchase  Price is not made
     within such 5 business  day period,  the Holder may revoke and withdraw its
     election to cause the Company to make such  mandatory  purchase at any time
     prior to its  receipt of such cash.  At the option of the  Holder,  Monthly
     Delay Payments may be added to the Liquidation  Preference of the Preferred
     Shares held by it.

          (C)  Notwithstanding  the foregoing,  there shall be excluded from the
     calculation of the number of days that the  Registration  Statement has not
     been declared effective the delays which are solely  attributable to delays
     in  the  Investor  providing  information  required  for  the  Registration
     Statement.

     (ii) No Listing; Premium Price Redemption for Delisting of Class of Shares.

          (A) In the event  that the  Company  fails,  refuses  or for any other
     reason  is  unable  to cause  the  Registrable  Securities  covered  by the
     Registration  Statement  to be listed  with the  Pacific  Exchange  and the
     Nasdaq National Market or one of the other Approved  Markets (as defined in
     the Purchase  Agreement) at all times during the period ("Listing  Period")
     from the earlier of the effectiveness of the Registration Statement and the
     135th day  following  the Closing Date until such time as the  registration
     period specified in Section 5 terminates, then the Company shall provide to
     each  Holder a Monthly  Delay  Payment,  for each 30 day  period or portion

                                       6
<PAGE>
     thereof  during  which such  listing is not in effect.  In  addition to the
     foregoing,  following the 10th day that such listing is not in effect, each
     Holder  shall  have  the  right  to sell to the  Company  any or all of its
     Preferred  Shares and  Warrants  at the  Mandatory  Repurchase  Price.  The
     provisions of Section 2(b)(i)(B) shall apply to this Section 2(b)(ii)(A).

          (B) In the event that  shares of Common  Stock of the  Company are not
     listed on any of the Approved  Markets at all times  following  the Closing
     Date,  or are  otherwise  suspended  from  trading  and remain  unlisted or
     suspended  for 3 consecutive  days,  then the Company shall provide to each
     Holder a Monthly Delay  Payment for each 30-day  period or portion  thereof
     (appropriately  prorated)  during which such  listing is not in effect.  In
     addition to the foregoing, following the 5th day that the shares are not so
     listed or are otherwise suspended,  at the option of each Holder and to the
     extent such Holder so elects,  each Holder  shall have the right to sell to
     the Company the Preferred  Shares and the Warrants held by such Holder,  in
     whole or in part, for the Mandatory Repurchase Price on the terms set forth
     in Section 2(b)(i)(B) above.

     (iii)  Blackout  Periods.  In  the  event  any  Holder's  ability  to  sell
Registrable  Securities under the  Registration  Statement is suspended for more
than (i) five (5) consecutive days or (ii) twenty (20) days in any calendar year
("Suspension  Grace  Period"),  including  without  limitation  by reason of any
suspension or stop order with respect to the Registration  Statement or the fact
that an event has occurred as a result of which the  prospectus  (including  any
supplements  thereto)  included in such  Registration  Statement  then in effect
includes an untrue  statement of material fact or omits to state a material fact
required to be stated  therein or necessary to make the  statements  therein not
misleading in light of the circumstances then existing (a "Blackout"),  then the
Company  shall  provide to each Holder a Monthly  Delay  Payment for each 30-day
period or portion thereof (appropriately prorated) from and after the expiration
of the  Suspension  Grace Period,  on the terms set forth in Section  2(b)(i)(B)
above. In addition, at any time following the expiration of the Suspension Grace
Period if the Blackout  continues for more than five (5) additional  consecutive
days, a Holder shall have the right to sell to the Company its Preferred  Shares
and/or  Warrants in whole or in part for the Mandatory  Repurchase  Price on the
terms set forth in Section 2(b)(i)(B) above.

     (iv)  Redemption for Conversion  Deficiency.  In the event that the Company
does not have a  sufficient  number of Common  Shares  available  to satisfy the

                                       7
<PAGE>
Company's  obligations  to any Holder upon  receipt of a  Conversion  Notice (as
defined in the  Certificate) or exercise of the Warrants or is otherwise  unable
or unwilling  for any reason to issue such Common  Shares (other than failure of
the Holder to comply with the  conversion  notice and delivery  requirements  of
Section 5 of the  Certificate)  (each, a  "Conversion/Exercise  Deficiency")  in
accordance with the terms of the  Certificate,  Purchase  Agreement and Warrants
for any reason after receipt of a Conversion  Notice or exercise notice from any
Holder,  then:

          (A) The Company  shall  provide to each Holder a Monthly Delay Payment
     for  each  30-day  period  or  portion  thereof  (appropriately   prorated)
     following the  Conversion/Exercise  Deficiency on all outstanding Preferred
     Shares and Warrants, on the terms set forth in Section 2(b)(i)(B) above.

          (B) At any time five days after the commencement of the running of the
     first 30-day period  described  above in clause (A) of this paragraph (iv),
     at the request of any Holder, the Company promptly shall purchase from such
     Holder,  for the Mandatory  Repurchase  Price and on the terms set forth in
     Section  2(b)(i)(B) above, any and all outstanding  Preferred Shares and/or
     Warrants,  if the failure to issue Common Shares results from the lack of a
     sufficient number thereof and shall purchase all of such Holder's Preferred
     Shares and/or Warrants (or such portion  requested by such Holder) for such
     consideration  and on such  terms if the  failure  to issue  Common  Shares
     results from any other cause, or is without cause.

          (C) The  Holder  shall  have the right to  withdraw  any  request  for
     redemption  hereunder  at any time prior to its  receipt  of the  Mandatory
     Repurchase Price.

     (v) Mandatory Purchase Price for Defaults.

          (A) The Company acknowledges that any failure, refusal or inability by
     the  Company  to  perform  the  obligations   described  in  the  foregoing
     paragraphs  (i) through (iv) will cause the Holders to suffer damages in an
     amount that will be difficult to ascertain,  including  without  limitation
     damages resulting from the loss of liquidity in the Registrable  Securities
     and  the  additional  investment  risk in  holding  the  Preferred  Shares,
     Warrants and Registrable Securities.  Accordingly, the parties agree, after
     consulting  with  counsel,  that  it is  appropriate  to  include  in  this
     Agreement the foregoing provisions for Monthly Delay Payments and mandatory

                                       8
<PAGE>
     redemptions  in order to  compensate  the  Holders  for such  damages.  The
     parties acknowledge and agree that the Monthly Delay Payments and mandatory
     redemptions  set forth above  represent  the parties'  good faith effort to
     quantify such damages and, as such,  agree that the form and amount of such
     payments and mandatory redemptions are reasonable and will not constitute a
     penalty.

          (B) In the  event  that the  Company  fails to pay any  Monthly  Delay
     Payment within 5 business days of demand  therefor,  each Holder shall have
     the right to sell to the Company any or all of its Preferred  Shares and/or
     Warrants  at the  Mandatory  Repurchase  Price on the  terms  set  forth in
     Section 2(b)(i)(B) above.

          (C) The  Holder  shall  have the right to  withdraw  any  request  for
     redemption  hereunder  at any time prior to its  receipt  of the  Mandatory
     Repurchase Price.

     (vi)  Cumulative  Remedies.   The  Monthly  Delay  Payments  and  mandatory
purchases provided for above are in addition to and not in lieu or limitation of
any other  rights the  Holders  may have at law, in equity or under the terms of
the  Certificate,  the Purchase  Agreement,  the  Warrants  and this  Agreement,
including without limitation the right to monetary contract damages and specific
performance.  Each Holder shall be entitled to specific  performance  of any and
all obligations of the Company in connection with the registration rights of the
Holders hereunder.

     (vii) Remedies for Registrable Securities. In any case in which a Holder of
Preferred  Shares  and/or  Warrants  has the right to cause the  purchase of its
securities  under this Section  2(b),  it shall also have the right to cause the
purchase of the Registrable  Securities that it owns, in whole or in part at the
Holder's option, as follows:  such shares shall be purchased at a price ("Common
Purchase Price") equal to the Mandatory Repurchase Price of the Preferred Shares
which were  converted  into Common Shares or Warrants  which were  exercised for
Common Shares.

     In the case in which a Holder of  Preferred  Shares or Warrants  would have
the right to receive Monthly Delay Payments with respect to Preferred  Shares or
Warrants  under Section  2(b), it shall also have the right to receive  payments
with respect to Registrable  Securities  owned by it in an amount at the rate of
the Monthly Delay  Payments  that would have applied to the Preferred  Shares or
Warrants converted into or exercised for Common Shares had such Preferred Shares
or Warrants not been  converted or  exercised.

                                       9
<PAGE>
     (c) If the Holder(s)  intend to distribute  the  Registrable  Securities by
means of an  underwriting,  the Holder(s) shall so advise the Company.  Any such
underwriting  may only be  administered  by nationally or regionally  recognized
investment bankers reasonably satisfactory to the Company.

     (d) The Company shall enter into such  customary  agreements  for secondary
offerings (including a customary  underwriting agreement with the underwriter or
underwriters,  if any) and take all such  other  reasonable  actions  reasonably
requested  by the  Holders  in  connection  therewith  in order to  expedite  or
facilitate  the  disposition  of  such   Registrable   Securities  and  in  such
connection, whether or not an underwriting agreement is entered into and whether
or not the Registrable Securities are to be sold in an underwritten offering:

          i) make such  representations  and  warranties  to the Holders and the
     underwriter or  underwriters,  if any, in form,  substance and scope as are
     customarily made by issuers to underwriters in secondary offerings;

          ii) cause to be delivered to the sellers of Registrable Securities and
     the underwriter or underwriters, if any, opinions of independent counsel to
     the  Company,  on and dated as of the  effective  day (or in the case of an
     underwritten  offering,  dated  the  date of  delivery  of any  Registrable
     Securities sold pursuant thereto) of the Registration Statement, and within
     ninety (90) days  following the end of each fiscal year  thereafter,  which
     counsel and opinions (in form,  scope and  substance)  shall be  reasonably
     satisfactory  to the  Holders  and the  underwriter(s),  if any,  and their
     counsel  and  covering,  without  limitation,   such  matters  as  the  due
     authorization   and  issuance  of  the  securities   being  registered  and
     compliance  with  securities  laws by the  Company in  connection  with the
     authorization, issuance and registration thereof and other matters that are
     customarily given to underwriters in underwritten  offerings,  addressed to
     the Holders and each underwriter, if any;

          iii) cause to be delivered,  immediately prior to the effectiveness of
     the Registration  Statement (and, in the case of an underwritten  offering,
     at the  time  of  delivery  of any  Registrable  Securities  sold  pursuant
     thereto),  and at the beginning of each fiscal year following a year during
     which the Company's  independent  certified public  accountants  shall have
     reviewed any of the Company's books or records, a "comfort" letter from the
     Company's  independent  certified  public  accountants  addressed  to  each
     underwriter,  if any, stating that such accountants are independent  public
     accountants  within the meaning of the  Securities  Act and the  applicable
     published rules and regulations thereunder, and otherwise in customary form
     and covering  such  financial  and  accounting  matters as are  customarily
     covered  by  letters  of  the  independent   certified  public  accountants
     delivered in connection with secondary  offerings;  such accountants  shall

                                       10
<PAGE>
     have  undertaken  in each such  letter to update the same  during each such
     fiscal year in which such books or records are being  reviewed so that each
     such letter shall remain  current,  correct and  complete  throughout  such
     fiscal  year;  and each such letter and update  thereof,  if any,  shall be
     reasonably  satisfactory  to  such  underwriters;

          iv) if an  underwriting  agreement  is  entered  into,  the same shall
     include customary  indemnification and contribution  provisions to and from
     the underwriters and procedures for secondary underwritten offerings; and

          v)  deliver  such  documents  and  certificates  as may be  reasonably
     requested by the Holders of the  Registrable  Securities  being sold or the
     managing  underwriter or underwriters,  if any, to evidence compliance with
     clause  (i)  above  and  with any  customary  conditions  contained  in the
     underwriting agreement, if any.

     (e) The  Company  shall  make  available  for  inspection  by the  Holders,
representative(s) of all the Holders together, any underwriter  participating in
any  disposition  pursuant  to a  Registration  Statement,  and any  attorney or
accountant  retained  by any  Holder or  underwriter,  all  financial  and other
records customary for purposes of the Holders' due diligence  examination of the
Company and review of any Registration Statement,  all SEC Documents (as defined
in the Purchase Agreement) filed subsequent to the Closing,  pertinent corporate
documents  and  properties  of the Company,  and cause the  Company's  officers,
directors and employees to supply all  information  reasonably  requested by any
such representative, underwriter, attorney or accountant in connection with such
Registration   Statement,   provided  that  such  parties  agree  to  keep  such
information  confidential.

     (f) Subject to Section  2(b) above,  the Company may suspend the use of any
prospectus used in connection with the Registration Statement only in the event,
and for such period of time as, such a  suspension  is required by the rules and
regulations  of the  Commission.  The Company will use its best efforts to cause
such suspension to terminate at the earliest possible date.

     (g) The Company  shall file a  Registration  Statement  with respect to any
newly authorized  and/or reserved  Registrable  Securities  consisting of Common
Shares  described  in clause (i) of the  definition  of  Registrable  Securities
within five (5) business days of any stockholders  meeting  authorizing same and
shall  use its best  efforts  to cause  such  Registration  Statement  to become
effective within sixty (60) days of such  stockholders  meeting.  If the Holders
become entitled,  pursuant to an event described in clause (ii) and (iii) of the
definition of  Registrable  Securities,  to receive any securities in respect of
Registrable Securities that were already included in a Registration Statement,

                                       11
<PAGE>
subsequent to the date such Registration  Statement is declared  effective,  and
the Company is unable under the  securities  laws to add such  securities to the
then  effective  Registration  Statement,  the Company shall  promptly  file, in
accordance  with the  procedures  set forth herein,  an additional  Registration
Statement with respect to such newly Registrable  Securities.  The Company shall
use its best efforts to (i) cause any such  additional  Registration  Statement,
when filed,  to become  effective  under the Securities  Act, and (ii) keep such
additional  Registration  Statement  effective  during the period  described  in
Section 5 below and cause such Registration Statement to become effective within
30 days of that date that the need to file the Registration Statement arose. All
of the registration  rights and remedies under this Agreement shall apply to the
registration of such newly reserved shares and such new Registrable  Securities,
including without  limitation the provisions  providing for default payments and
mandatory redemptions contained herein.

     3. Expenses of Registration.  All Registration  Expenses in connection with
any registration, qualification or compliance with registration pursuant to this
Agreement  shall be borne by the Company,  and all Selling  Expenses of a Holder
shall be borne by such Holder.

     4.  Registration  on Form S-3.  The Company  shall use its best  efforts to
remain  qualified for  registration  on Form S-3 or any  comparable or successor
form or forms,  or in the event that the Company is ineligible to use such form,
such form as the Company is eligible to use under the Securities  Act,  provided
that if such other form is used,  the Company shall convert such other form to a
Form S-3 as soon as the Company becomes so eligible.

     5.  Registration  Period.  In the case of the registration  effected by the
Company  pursuant to this  Agreement,  the Company shall keep such  registration
effective  until  the  later  of (a) the  date on  which  all the  Holders  have
completed  the sales or  distribution  described in the  Registration  Statement
relating thereto or, if earlier,  until such Registrable  Securities may be sold
by the Holders under Rule 144(k) (provided that the Company's transfer agent has
accepted an instruction from the Company to such effect), or (b) the third (3rd)
anniversary of the Closing Date.

     6. Indemnification.

     (a) Company Indemnity.  The Company will indemnify each Holder, each of its
officers,  directors,  agents and partners,  and each person controlling each of
the  foregoing,  within the meaning of Section 15 of the  Securities Act and the
rules  and   regulations   thereunder   with  respect  to  which   registration,
qualification  or compliance has been effected  pursuant to this Agreement,  and
each  underwriter,  if any, and each person who controls,  within the meaning of
Section 15 of the Securities Act and the rules and regulations  thereunder,  any
underwriter,  against all claims, losses, damages and liabilities (or actions in
respect  thereof)  arising out of or based on any untrue  statement  (or alleged
untrue  statement)  of a material  fact  contained in any  prospectus,  offering
circular  or other  document  (including  any  related  registration  statement,
notification or the like) incident to any such  registration,  qualification  or
compliance,  or based on any omission (or alleged  omission) to state  therein a
material fact required to be stated  therein or necessary to make the statements
therein not misleading in light of the circumstances under which they were made,

                                       12
<PAGE>
or any violation by the Company of the  Securities  Act or any state  securities
law or in either  case,  any rule or  regulation  thereunder  applicable  to the
Company and relating to action or inaction required of the Company in connection
with any such registration, qualification or compliance, and will reimburse each
Holder, each of its officers,  directors,  agents and partners,  and each person
controlling  each of the foregoing,  each such  underwriter  and each person who
controls any such underwriter,  for any legal and any other expenses  reasonably
incurred in connection with  investigating  and defending any such claim,  loss,
damage, liability or action, provided that the Company will not be liable in any
such case to a Holder to the extent that any such claim, loss, damage, liability
or expense  arises out of or is based on any untrue  statement or omission based
upon  written  information  furnished  to the  Company  by  such  Holder  or the
underwriter (if any) therefor and stated to be specifically for use therein. The
indemnity  agreement  contained  in this Section 6(a) shall not apply to amounts
paid in settlement of any such loss, claim, damage,  liability or action if such
settlement is effected  without the consent of the Company  (which  consent will
not be unreasonably withheld).

     (b) Holder  Indemnity.  Each Holder will,  severally  and not  jointly,  if
Registrable  Securities  held by it are included in the  securities  as to which
such registration,  qualification or compliance is being effected, indemnify the
Company,  each  of its  directors,  officers,  agents  and  partners,  and  each
underwriter,  if any, of the Company's securities covered by such a registration
statement,  each person who controls the Company or such underwriter  within the
meaning  of  Section  15 of the  Securities  Act and the rules  and  regulations
thereunder,  each other Holder (if any), and each of their  officers,  directors
and  partners,  and each person  controlling  such other  Holder(s)  against all
claims,  losses, damages and liabilities (or actions in respect thereof) arising
out of or based on any untrue  statement  (or  alleged  untrue  statement)  of a
material fact contained in any such registration statement, prospectus, offering
circular or other  document,  or any  omission  (or alleged  omission)  to state
therein a material fact  required to be stated  therein or necessary to make the
statement therein not misleading in light of the circumstances  under which they
were made,  and will  reimburse  the Company and such other  Holder(s) and their
directors, officers and partners,  underwriters or control persons for any legal
or any other expenses  reasonably  incurred in connection with investigating and
defending any such claim, loss, damage, liability or action, in each case to the
extent,  but only to the extent,  that such untrue  statement (or alleged untrue
statement)  or  omission  (or  alleged  omission)  is made in such  registration
statement,  prospectus, offering circular or other document in reliance upon and
in conformity with written  information  furnished to the Company by such Holder
and stated to be  specifically  for use therein,  and provided  that the maximum
amount for which such  Holder  shall be liable  under this  indemnity  shall not
exceed the net proceeds received by such Holder from the sale of the Registrable
Securities  pursuant to the  registration  statement in question.  The indemnity
agreement  contained  in this  Section  6(b) shall not apply to amounts  paid in
settlement of any such claims, losses, damages or liabilities if such settlement
is  effected  without the consent of such  Holder  (which  consent  shall not be
unreasonably withheld).

     (c) Procedure.  Each party entitled to indemnification under this Section 6
(the  "Indemnified  Party")  shall give notice to the party  required to provide

                                       13
<PAGE>
indemnification (the "Indemnifying Party") promptly after such Indemnified Party
has actual knowledge of any claim as to which indemnity may be sought, and shall
permit the  Indemnifying  Party to assume  the  defense of any such claim in any
litigation  resulting  therefrom,  provided  that  counsel for the  Indemnifying
Party,  who shall conduct the defense of such claim or any litigation  resulting
therefrom,  shall be approved by the Indemnified Party (whose approval shall not
be unreasonably  withheld),  and the  Indemnified  Party may participate in such
defense  at its own  expense,  and  provided  further  that the  failure  of any
Indemnified  Party to give  notice as  provided  herein  shall not  relieve  the
Indemnifying  Party of its obligations under this Section 6 except to the extent
that the Indemnifying Party is materially and adversely affected by such failure
to provide notice.  No  Indemnifying  Party, in the defense of any such claim or
litigation, shall, except with the consent of each Indemnified Party, consent to
entry of any judgment or enter into any settlement  which does not include as an
unconditional  term  thereof  the giving by the  claimant or  plaintiff  to such
Indemnified  Party of a release  from all  liability in respect to such claim or
litigation. Each Indemnified Party shall furnish such non-privileged information
regarding  itself  or  the  claim  in  question  as an  Indemnifying  Party  may
reasonably request in writing and as shall be reasonably  required in connection
with the defense of such claim and litigation resulting therefrom.

     7. Contribution. If the indemnification provided for in Section 6 herein is
unavailable to the Indemnified Parties in respect of any losses, claims, damages
or  liabilities  referred  to herein  (other  than by  reason of the  exceptions
provided  therein),  then each such 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,  claims, damages or liabilities as
between  the  Company  on the one  hand and any  Holder  on the  other,  in such
proportion as is appropriate to reflect the relative fault of the Company and of
such Holder in connection  with the  statements or omissions  which  resulted in
such  losses,  claims,  damages or  liabilities,  as well as any other  relevant
equitable considerations.  The relative fault of the Company on the one hand and
of any Holder on the other shall be  determined  by  reference  to,  among other
things,  whether the untrue or alleged  untrue  statement of a material  fact or
omission or alleged  omission to state a material  fact  relates to  information
supplied by the Company or by such Holder.

     In no event shall the  obligation of any  Indemnifying  Party to contribute
under this Section 7 exceed the amount that such  Indemnifying  Party would have
been obligated to pay by way of indemnification if the indemnification  provided
for  under   Section  6(a)  or  6(b)  hereof  had  been   available   under  the
circumstances.

     The Company and the Holders  agree that it would not be just and  equitable
if  contribution  pursuant  to  this  Section  7 were  determined  by  pro  rata
allocation (even if the Holders or the  underwriters  were treated as one entity
for such  purpose)  or by any other  method of  allocation  which  does not take
account of the equitable considerations referred to in the immediately preceding
paragraphs.  The amount paid or payable by an  Indemnified  Party as a result of
the losses,  claims,  damages  and  liabilities  referred to in the  immediately

                                       14
<PAGE>
preceding paragraphs shall be deemed to include,  subject to the limitations set
forth above, any legal or other expenses reasonably incurred by such Indemnified
Party in connection  with  investigating  or defending any such action or claim.
Notwithstanding  the provisions of this section,  no Holder or underwriter shall
be required to contribute any amount in excess of the amount by which (i) in the
case of any Holder,  the net  proceeds  received by such Holder from the sale of
Registrable  Securities  pursuant to the  registration  statement in question or
(ii) in the case of an  underwriter,  the total  price at which the  Registrable
Securities  purchased  by it and  distributed  to the public were offered to the
public exceeds,  in any such case, the amount of any damages that such Holder or
underwriter  has  otherwise  been  required  to pay by reason of such  untrue or
alleged untrue  statement or omission or alleged  omission.  No person guilty of
fraudulent  misrepresentation  (within  the  meaning  of  Section  11(f)  of the
Securities  Act) shall be entitled to  contribution  from any person who was not
guilty of such fraudulent misrepresentation.

     8.  Survival.  The  indemnity  and  contribution  agreements  contained  in
Sections 6 and 7 and the  representations and warranties of the Company referred
to in  Section  2(d)(i)  shall  remain  operative  and in full  force and effect
regardless of (i) any termination of this Agreement or the Purchase Agreement or
any underwriting  agreement,  (ii) any investigation made by or on behalf of any
Indemnified Party or by or on behalf of the Company,  and (iii) the consummation
of the sale or successive resales of the Registrable Securities.

     9.  Information  by Holders.  Each Holder shall furnish to the Company such
information  regarding such Holder and the distribution  and/or sale proposed by
such  Holder as the Company  may  reasonably  request in writing and as shall be
reasonably  required  in  connection  with any  registration,  qualification  or
compliance  referred to in this  Agreement.  The  intended  method or methods of
disposition and/or sale (Plan of Distribution) of such securities as so provided
by such  Investor  shall be  included  without  alteration  in the  Registration
Statement  covering the Registrable  Securities and shall not be changed without
written consent of such Holder.

     10. Replacement  Certificates.  The certificate(s)  representing the Common
Shares held by any Investor  (or then Holder) may be exchanged by such  Investor
(or  such  Holder)  at any time and  from  time to time  for  certificates  with
different denominations representing an equal aggregate number of Common Shares,
as reasonably  requested by such Investor (or such Holder) upon surrendering the
same.  No service  charge  will be made for such  registration  or  transfer  or
exchange. Upon receipt by the Corporation of evidence reasonably satisfactory to
it of the loss, theft, destruction or mutilation of any certificate representing
the Preferred Shares or the Warrants,  or the underlying Common Shares of any of
the  foregoing,  and, in the case of loss,  theft or  destruction,  of indemnity
reasonably  satisfactory  to it,  or upon  surrender  and  cancellation  of such
certificate  if  mutilated,   the  Corporation  will  make  and  deliver  a  new
certificate of like tenor and dated as of such  cancellation at no charge to the
holder.

     11.  Transfer or  Assignment.  Except as otherwise  provided  herein,  this
Agreement  shall be binding  upon and inure to the  benefit of the  parties  and
their  successors and permitted  assigns.  The rights granted to the Investor by

                                       15
<PAGE>
the Company  under this  Agreement to cause the Company to register  Registrable
Securities  may be transferred or assigned (in whole or in part) to a transferee
or assignee of Preferred  Shares,  Warrants or Registrable  Securities,  and all
other rights granted to the Investor by the Company hereunder may be transferred
or assigned to any transferee or assignee of any Preferred  Shares,  Warrants or
Registrable  Securities;  provided in each case that the  Company  must be given
written notice by the Investor at the time of or within a reasonable  time after
said transfer or assignment,  stating the name and address of said transferee or
assignee and identifying the securities with respect to which such  registration
rights  are  being  transferred  or  assigned;  and  provided  further  that the
transferee  or  assignee  of such  rights  agrees in  writing to be bound by the
registration provisions of this Agreement.

     12. Miscellaneous.

     (a)  Remedies.  The Company  and the  Investor  acknowledge  and agree that
irreparable  damage would occur in the event that any of the  provisions of this
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 Agreement and to enforce specifically the terms and provisions hereof, this
being in  addition  to any other  remedy to which any of them may be entitled by
law or equity.

     (b)  Jurisdiction.  Each  of  the  Company  and  the  Investor  (i)  hereby
irrevocably submits to the exclusive  jurisdiction of the United States District
Court,  the New York State courts and other courts of the United States  sitting
in the Borough of Manhattan, New York County, New York State for the purposes of
any suit, action or proceeding  arising out of or relating to this 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.  The
Company  and the  Investor  consent  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  paragraph  shall  affect or limit any right to serve  process in any other
manner permitted by law.

     (c) Notices. Any notice or other communication  required or permitted to be
given hereunder shall be in writing by facsimile,  mail or personal delivery and
shall be effective  upon actual  receipt of such notice.  The addresses for such
communications shall be:

                                       16
<PAGE>
                  to the Company:

                           GenesisIntermedia.com, Inc.
                           5805 Sepulveda Boulevard
                           Van Nuys, CA  91411
                           Telephone:       (818) 902-4100
                           Facsimile:       (818) 902-4301
                           Attention: Ramy El-Batrawi

                  with a copy to:

                           Nida & Maloney, LLP
                           800 Anacapa Street
                           Santa Barbara, CA  93101
                           Telephone:       (805) 568-1151
                           Facsimile:       (805) 568-1955
                           Attention:       Theodore R. Maloney

                  to the Investor:

                           Elliott Associates, L.P.
                           c/o Stonington Management Corporation
                           712 Fifth Avenue
                           New York, New York  10019
                           Telephone:       212-506-2999
                           Facsimile:       212-974-2093 and (212) 586-9467
                           Attention:       Brett Cohen

                           and

                           Westgate International, L.P.
                           c/o Stonington Management Corporation
                           712 Fifth Avenue
                           New York, New York  10019
                           Telephone:       212-506-2999
                           Facsimile:       212-974-2093 and (212) 586-9467
                           Attention:       Brett Cohen

                  with a copy to:

                           Kleinberg, Kaplan, Wolff & Cohen, P.C.
                           551 Fifth Avenue, 18th Floor
                           New York, New York 10176
                           Telephone:       212-986-6000
                           Facsimile:       212-986-8866
                           Attention:       Stephen M. Schultz

                                       17
<PAGE>
Any party  hereto may from time to time change its address for notices by giving
at least five days' written notice of such changed  address to the other parties
hereto.

     (d)  Indemnity.  Each party shall  indemnify  each other party  against any
loss,  cost or damages  (including  reasonable  attorney's  fees)  incurred as a
result of such  parties'  breach of any  representation,  warranty,  covenant or
agreement in this Agreement,  including,  without limitation, any enforcement of
this indemnity.

     (e)  Waivers.  No waiver by any party of any  default  with  respect to any
provision,  condition or requirement  of this Agreement  shall be deemed to be a
continuing waiver in the future or a waiver of any other provision, condition or
requirement hereof, nor shall any delay or omission of any party to exercise any
right  hereunder in any manner impair the exercise of any such right accruing to
it  thereafter.  The  representations  and  warranties  and the  agreements  and
covenants of the Company and each  Investor  contained  herein shall survive the
Closing.

     (f) Execution in Counterpart. This Agreement may be executed in two or more
counterparts,  all of which shall be considered one and the same  agreement,  it
being understood that all parties need not sign the same counterpart.

     (g)  Signatures.  Facsimile  signatures  shall be valid and binding on each
party submitting the same.

     (h) Entire Agreement; Amendment. This Agreement, together with the Purchase
Agreement,  the  Certificate,  the Warrants  and the  agreements  and  documents
contemplated hereby and thereby, contains the entire understanding and agreement
of the  parties,  and may not be  amended,  modified or  terminated  except by a
written agreement signed by the Company plus the Holders of 75% of the Preferred
Shares issued under the Purchase  Agreement to that date;  provided that for the
purposes of this Section  12(h) the Holders of Common  Shares still  entitled to
registration  rights under this  Agreement will be deemed to still be Holders of
that number of Preferred  Shares which were converted into such number of Common
Shares issued upon conversion which are still held by them.

     (i) Governing Law. This  Agreement and the validity and  performance of the
terms hereof shall be governed by and construed in  accordance  with the laws of
the State of New York  applicable  to  contracts  executed  and to be  performed
entirely  within such  state,  except to the extent that the law of the State of
Delaware regulates the Company's issuance of securities.

     (j) Jury Trial. EACH PARTY HERETO WAIVES THE RIGHT TO A TRIAL BY JURY.

     (k) Titles. The titles used in this Agreement are used for convenience only
and are not to be considered in construing or interpreting this Agreement.

                                       18
<PAGE>

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

                            [Signature Page Follows]

                                       19
<PAGE>

     In Witness  Whereof,  the parties  hereto have caused this  Agreement to be
duly executed as of the date first above written.

                                    GENESISINTERMEDIA.COM, INC.

                                    By: ______________________________
                                         Name:   Ramy El-Batrawi
                                         Title:  President

                                    WESTGATE INTERNATIONAL, L.P.
                                    By: MARTLEY INTERNATIONAL, INC., as
                                          attorney-in-fact

                                     By: ____________________________
                                            Name:    Paul E. Singer
                                            Title:   President

                                    ELLIOTT ASSOCIATES, L.P.

                                    By:______________________________
                                         Name:   Paul E. Singer
                                         Title:  General Partner

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