NCT GROUP INC
S-1/A, EX-10, 2000-10-25
MISCELLANEOUS ELECTRICAL MACHINERY, EQUIPMENT & SUPPLIES
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Exhibit 10(ak)



                      SECURITIES PURCHASE AND SUPPLEMENTAL
                            EXCHANGE RIGHTS AGREEMENT


     SECURITIES  PURCHASE  AND  SUPPLEMENTAL   EXCHANGE  RIGHTS  AGREEMENT  (the
"Agreement"),  dated as of August 10, 2000 by and among ConnectClearly.com Inc.,
a Delaware  corporation,  with principal executive offices at 20 Ketchum Street,
Westport,  Connecticut  06880  ("ConnectClearly"),  NCT Group,  Inc., a Delaware
corporation,  with principal  executive offices at 20 Ketchum Street,  Westport,
Connecticut  06880  ("NCT"),  and the  investors  listed on  Schedule 1 attached
hereto (individually, a "Buyer" and collectively, the "Buyers").

                                   WITNESSETH:

     WHEREAS,  ConnectClearly  is  authorized  to issue  shares of common  stock
having a par value of $0.01 per share (the "ConnectClearly Common Stock").

     WHEREAS,  ConnectClearly,  NCT and the Buyers are executing and  delivering
this  Agreement in reliance  upon the  exemption  from  securities  registration
pursuant to Section 4(2) and/or  Regulation D ("Regulation D") as promulgated by
the United  States  Securities  and  Exchange  Commission  (the "SEC") under the
Securities Act of 1933, as amended (the "1933 Act");

     WHEREAS,   the  Buyers   desire  to  purchase  from   ConnectClearly,   and
ConnectClearly  desires  to issue  and sell to the  Buyers,  upon the  terms and
conditions  stated in this  Agreement,  an  aggregate  amount of 2,000 shares of
ConnectClearly  Common Stock in the  respective  amounts set forth opposite each
Buyer's name on Schedule 1 (the "Shares");

     WHEREAS,  NCT is granting the Buyers  supplemental  exchange rights whereby
the Buyers may, in accordance  with and subject to the terms of this  Agreement,
exchange Shares for shares of NCT's common stock, $0.01 par value per share (the
"NCT Common Stock") (as exchanged, the "Exchange Shares"); and

     WHEREAS,   contemporaneously  with  the  execution  and  delivery  of  this
Agreement,  NCT,  ConnectClearly  and the Buyers are executing and  delivering a
Registration  Rights  Agreement  substantially  in the form  attached  hereto as
"Exhibit  A" (the  "Registration  Rights  Agreement")  pursuant to which NCT and
ConnectClearly have agreed to provide certain registration rights.

     NOW  THEREFORE,  in  consideration  of the  premises  hereof and the mutual
covenants,  representations and warranties contained herein, ConnectClearly, NCT
and each Buyer (severally and not jointly) hereby agree as follows:

      1.    PURCHASE AND SALE OF CONNECTCLEARLY
            COMMON STOCK.

          a.  Purchase  of   ConnectClearly   Common   Stock.   Subject  to  the
          satisfaction  (or waiver) of the  conditions  precedent to Closing (as
          defined below) as set forth in Sections 8 and 9 below,  on the Closing
          Dates (as defined below),  ConnectClearly  shall issue and sell to the
          Buyers, and the Buyers, severally and not jointly, shall purchase from
          ConnectClearly,  an  aggregate  of 2,000  Shares,  each share having a
          stated value of $1,000 (the "Stated Value"),  in consideration  for an
          aggregate  purchase price of $2,000,000 (the "Purchase  Price") in the
          respective amounts set forth opposite each Buyer's name on Schedule 1.

          b. The Closings.

               (i) The Initial Closing.

                    (A) The  closing  of the  purchase  and sale of the  Initial
                    Shares (as defined below) (the "Initial Closing") shall take
                    place at the  offices of Stroock & Stroock & Lavan LLP,  180
                    Maiden  Lane,  New York,  New York  10038-4982,  immediately
                    following  the  execution  hereof  or  such  later  date  or
                    different  location as the  parties  shall agree in writing,
                    but not prior to the date that the  conditions  set forth in
                    Sections  8 and 9  have  been  satisfied  or  waived  by the
                    appropriate  party.  The  date  of the  Initial  Closing  is
                    hereinafter  referred to as the "Initial  Closing  Date." At
                    the Initial Closing,  ConnectClearly shall sell and issue to
                    the Buyers, and the Buyers shall, severally and not jointly,
                    purchase  from  ConnectClearly,  1,000 Shares (the  "Initial
                    Shares") for an aggregate  purchase price of $1,000,000 (the
                    "Initial Purchase Price").

                    (B) At the Initial Closing (a) ConnectClearly  shall deliver
                    to  each  Buyer  (1)  stock  certificates  representing  the
                    Initial Shares  purchased by such Buyer as set forth next to
                    such Buyer's name on Schedule 1 attached  hereto,  each duly
                    executed on behalf of  ConnectClearly  and registered in the
                    name  of  such   Buyer  or  its   designee   (the   "Initial
                    ConnectClearly Common Stock Certificates"), (2) the Warrants
                    (the  "Initial  Warrants")  purchased  by such  Buyer as set
                    forth  next to such  Buyer's  name on  Schedule  1  attached
                    hereto,  registered  in the name of such Buyer,  (3) and all
                    other documents,  instruments and writings  required to have
                    been  delivered  at or  prior  to  the  Initial  Closing  by
                    ConnectClearly   pursuant   to   this   Agreement   and  the
                    Registration  Rights  Agreement,  and (b) each  Buyer  shall
                    deliver  to  ConnectClearly   the  portion  of  the  Initial
                    Purchase  Price set forth next to its name on Schedule 1, in
                    United States dollars in immediately available funds by wire
                    transfer   to  an   account   designated   in   writing   by
                    ConnectClearly  for such  purpose on or prior to the Initial
                    Closing Date,  and all documents,  instruments  and writings
                    required to have been  delivered  at or prior to the Initial
                    Closing by such Buyer  pursuant  to this  Agreement  and the
                    Registration Rights Agreement.

               (ii) Second Closing.

                    (A)  Subject  to the  terms  and  conditions  set  forth  in
                    Sections 8 and 9 and elsewhere in this Agreement,  on August
                    __, 2001, or upon another date which the parties  hereto may
                    otherwise  mutually agree (the "Second Closing  Date"),  the
                    Buyers  shall  purchase,   severally  and  not  jointly,  an
                    additional 1,000 Shares (the "Second Tranche Shares") for an
                    aggregate  purchase price of $1,000,000 (the "Second Tranche
                    Purchase Price"). At the Second Closing, each Buyer shall be
                    obligated  (subject to the terms and  conditions  herein) to
                    purchase  the number of Second  Tranche  Shares next to such
                    Buyer's name on Schedule 1 attached  hereto.  The closing of
                    the  purchase  and sale of the Second  Tranche  Shares  (the
                    "Second  Closing")  shall take  place on the Second  Closing
                    Date  and  in  the  same  manner  as  the  Initial  Closing;
                    provided,  however, that in no case shall the Second Closing
                    take place unless and until the conditions listed in Section
                    8 and 9 have been  satisfied  or  waived by the  appropriate
                    party.  "Closing  Date",  as used  herein,  shall  mean  the
                    Initial Closing Date or the Second Closing Date, or both, as
                    applicable.

                    (B) At the Second Closing (a)  ConnectClearly  shall deliver
                    to each Buyer (1) stock certificates representing the Second
                    Tranche Shares  purchased by such Buyer as set forth next to
                    such Buyer's name on Schedule 1 attached  hereto,  each duly
                    executed on behalf of  ConnectClearly  and registered in the
                    name of such Buyer or its designee  ("Second  ConnectClearly
                    Common Stock  Certificates")  (2) the Warrants  (the "Second
                    Tranche  Warrants";  and together with the Initial Warrants,
                    the "Warrants") purchased by such Buyer as set forth next to
                    such Buyer's name on Schedule 1 attached hereto,  registered
                    in the name of such  Buyer and (3) and all other  documents,
                    instruments and writings  required to have been delivered at
                    or prior to the Second Closing by ConnectClearly pursuant to
                    this Agreement and the Registration  Rights  Agreement,  and
                    (b) each Buyer shall deliver to  ConnectClearly  the portion
                    of the Second  Tranche  Purchase Price set forth next to its
                    name on Schedule 1 attached hereto, in United States dollars
                    in  immediately  available  funds  by  wire  transfer  to an
                    account  designated  in writing by  ConnectClearly  for such
                    purpose on or prior to the Second Closing Date.

     2. BUYER'S SUPPLEMENTAL RIGHTS TO EXCHANGE  CONNECTCLEARLY COMMON STOCK FOR
     NCT COMMON STOCK

     Each Buyer of Shares shall be entitled,  at its sole election,  to exchange
Shares for shares of NCT Common Stock on the following terms and conditions:

          a. Exchange  Rights.  At any time,  and from time to time, on or after
          the 180th day  following  the  applicable  Issuance  Date (as  defined
          below),  a Buyer (or its successors  and permitted  assigns) of Shares
          shall have the right,  but not the obligation,  to exchange any number
          of Shares for fully paid and nonassessable  shares of NCT Common Stock
          at the Exchange Rate (as defined below).

          b. Exchange  Rate.  The number of shares of NCT Common Stock  issuable
          upon  exchange  of each  Share  pursuant  to this  Section  2 shall be
          determined according to the following formula (the "Exchange Rate"):

            _____Stated Value_______ = Number of Shares of
                                       Exchange Price NCT Common Stock

     For  purposes  of this  Agreement,  the  following  terms  shall  have  the
following meanings:

               (i) "Exchange Price" means (i) the amount obtained by multiplying
               0.8 by the average of the  Closing Bid Prices (as defined  below)
               for NCT Common  Stock for the five (5)  consecutive  trading days
               immediately  preceding  the Exchange  Date (as defined  below) or
               (ii) in the event of any adjustment  thereof  pursuant to Section
               2A, such adjusted amount;

               (ii)  "Closing Bid Price"  means,  (a) for any security as of any
               date,  the last closing bid price on the OTC Bulletin  Board (the
               "OTCB") as reported by Bloomberg Financial Markets ("Bloomberg"),
               or,  if the OTCB is not the  principal  trading  market  for such
               security,  the last  closing  bid price of such  security  on the
               principal  securities  exchange  or  trading  market  where  such
               security is listed or traded as reported by Bloomberg,  or if the
               foregoing  do not  apply,  the  last  closing  bid  price of such
               security  in the  over-the-counter  market on the pink  sheets or
               bulletin board for such security as reported by Bloomberg, or, if
               no closing bid price is reported for such  security by Bloomberg,
               the last  closing  trade  price of such  security  as reported by
               Bloomberg.  If the Closing Bid Price for NCT Common  Stock cannot
               be  calculated  for  such  security  on  such  date on any of the
               foregoing  bases,  the Closing Bid Price of such security on such
               date shall be the fair market value as  reasonably  determined in
               good faith by the Board of Directors of NCT (the price determined
               pursuant to this  Section  2(ii)(a) is referred to as the "Actual
               Closing Bid Price"), or

          b) if the "Actual  Closing Bid Price" for NCT Common Stock at the time
          of the determination  thereof pursuant to Section 2(ii)(a) above shall
          be less than $0.20 (the "Floor Price"), then NCT may elect to deem the
          Closing Bid Price to be equal to the Floor  Price for the  purposes of
          the Exchange Rate calculation in Section 2(b); provided, however, that
          NCT may make such  election only if it pays, in cash, to an exchanging
          Buyer an amount equal to the Actual  Closing Bid Price  multiplied  by
          the  number of  additional  Exchange  Shares  such  Buyer  would  have
          received  had the  Actual  Closing  Bid Price  (rather  than the Floor
          Price) been used to calculate  the number of Exchange  Shares to which
          such Buyer was entitled.

               (iii) "Issuance Date" means,  with respect to the Initial Shares,
               the Initial  Closing Date and, with respect to the Second Tranche
               Shares, the Second Closing Date.

          c. Buyer's Delivery Requirements. To exchange Shares for shares of NCT
          Common Stock on any date (an "Exchange Date"), the Buyer thereof shall
          (A) deliver or transmit by facsimile, for receipt on or prior to 11:59
          p.m., Eastern Time, on such date, a copy of a fully executed notice of
          exchange  in the form  attached  hereto as  Exhibit 2 (the  "Notice of
          Exchange") to NCT (c/o Chief Financial  Officer,  NCT Group,  Inc., 20
          Ketchum Street,  Westport,  Connecticut 06880,  facsimile number (203)
          226-4338) and (B) surrender to a common carrier for delivery to NCT as
          soon as practicable  following such notice, the original  certificates
          representing  the  Shares  being  exchanged  (or  an   indemnification
          undertaking  with  respect to such  certificates  in the case of their
          loss,  theft  or  destruction)  (the   "ConnectClearly   Common  Stock
          Certificates") and the originally executed Notice of Exchange.

          d. NCT and  ConnectClearly  Response.  NCT  shall,  no later  than the
          Business  Day  following  receipt of a  facsimile  copy of a Notice of
          Exchange, send via facsimile, a confirmation of receipt of such Notice
          of Exchange to such Buyer ("Confirmation of Receipt"). Upon receipt by
          NCT of the ConnectClearly Common Stock Certificate(s) representing the
          Shares to be exchanged pursuant to a Notice of Exchange, together with
          the  originally   executed  Notice  of  Exchange  (such  date,  "NCT's
          Receipt"), (i) NCT shall within three Business Days, make any payments
          due to the  Buyer  pursuant  to  Section  2(ii)(b)  pursuant  to  wire
          instructions  provided  by the  Buyer  and (ii) NCT or NCT's  Transfer
          Agent (as applicable)  shall,  within five (5) Business Days following
          NCT's  Receipt,  issue and surrender to a common carrier for overnight
          delivery  to the address as  specified  in the Notice of  Exchange,  a
          certificate  or  certificates,  registered in the name of the Buyer or
          its  designee,  for the number of  Exchange  Shares to which the Buyer
          shall  be   entitled   under   this   Agreement.   ConnectClearly   or
          ConnectClearly's  Transfer Agent (as applicable)  shall, and NCT shall
          cause ConnectClearly to, within five (5) Business Days following NCT's
          Receipt,  issue  and  surrender  to a  common  carrier  for  overnight
          delivery  to the address as  specified  in the Notice of  Exchange,  a
          certificate  or  certificates,  registered in the name of the Buyer or
          its designee,  for the number of shares of ConnectClearly Common Stock
          represented   by   the   surrendered   ConnectClearly   Common   Stock
          Certificate(s)  which were not subject to the Notice of  Exchange.  As
          used in this Agreement,  "Business Day" means any day except Saturday,
          Sunday  and any day which  shall be a legal  holiday or a day on which
          banking institutions in the State of New York generally are authorized
          or required by law or other government actions to close.

          e.  Record  Buyer.  The person or  persons  entitled  to  receive  the
          Exchange Shares shall be treated for all purposes as the record holder
          or holders of such shares of NCT Common Stock as of the Exchange Date.
          NCT shall be treated by ConnectClearly  for all purposes as the record
          holder  of  such  Shares  as  of  the  Exchange   Date,  and  NCT  and
          ConnectClearly shall amend their respective records to so reflect.

          f. NCT's Failure to Timely Exchange. If NCT shall fail to deliver to a
          Buyer,  within seven (7) Business Days following NCT's Receipt,  then,
          in  addition  to all other  available  remedies  which  such Buyer may
          pursue  hereunder,  NCT shall pay to such  Buyer,  on and for each day
          after  such  seventh  (7th)  Business  Day until the day  delivery  is
          effected,  an amount equal to 1.0% of the product of (A) the number of
          shares of NCT Common  Stock not  delivered  to such Buyer and to which
          such Buyer is entitled (without regard to the application of the Floor
          Price) and (B) the highest  Closing Bid Price of the NCT Common  Stock
          during the period  beginning  on the first  Business  Day after  NCT's
          Receipt  and ending on the day NCT  delivers  to such  Buyer  Exchange
          Shares as set forth in the Notice of Exchange  (including any payments
          due to such Buyer  pursuant to Section  2(ii)(b))  (such  period,  the
          "Non-delivery  Period"). The parties agree that the timely exchange of
          Shares into Exchange  Shares is a material  element of this  Agreement
          and further  agree that the Buyers will  suffer  damages  which may be
          difficult to quantify if NCT fails, for any reason,  to timely deliver
          the Exchange Shares. Accordingly, the amount of such payments shall be
          aggregated daily and interest will accrue on such aggregated amount at
          the rate of 15% per annum, until such aggregate amount and any accrued
          interest  thereon  is  paid  in  full  (any  amount  paid  under  this
          subsection shall be paid as liquidated damages and not as a penalty).

     2A. CERTAIN ADJUSTMENTS.

          a. (i)  ConnectClearly  hereby  grants to each holder of Shares  (each
          such person a "Holder," and collectively, the "Holders") so long as it
          shall own, of record or beneficially,  at least 125 Shares,  the right
          to purchase  all or part of its pro rata share of New  Securities  (as
          defined below) which  ConnectClearly,  from time to time,  proposes to
          issue and sell.  Such  Holder's  pro rata share,  for purposes of this
          preemptive  right (the  "Preemptive  Right"),  is the ratio of (x) the
          number of shares of  ConnectClearly  Common Stock which such Holder of
          Shares  owns or has the  right to  acquire  from  ConnectClearly  upon
          exercise of options or warrants then exercisable or upon conversion of
          convertible  securities then  outstanding to (y) the sum of the number
          shares of ConnectClearly  Common Stock then outstanding and the number
          of such shares  issuable  upon  exercise  of options or warrants  then
          exercisable  or upon  conversion of any other  convertible  securities
          then  outstanding.  The Holders who are entitled to a preemptive right
          hereunder  shall  have a  right  of  over-allotment  pursuant  to this
          Section 2A such that,  to the extent any such Holder does not exercise
          its or his Preemptive Right in full hereunder,  such additional shares
          of New Securities  which such Holder did not purchase may be purchased
          by the other Holders who have a Preemptive  Right in proportion to the
          total number of shares of ConnectClearly  Common Stock which each such
          other  Holder  owns or has the right to  acquire  from  ConnectClearly
          compared to the total  number of shares of Common Stock which all such
          other Holders exercising their right of over-allotment own or have the
          right to acquire from ConnectClearly.

               (ii)  "New   Securities"   shall  mean  any   capital   stock  of
               ConnectClearly whether now authorized or not, and rights, options
               or warrants to purchase capital stock, and securities of any type
               whatsoever   that  are,  or  may  become   convertible   into  or
               exchangeable  for capital  stock,  issued on or after the Initial
               Closing Date;  provided,  that the term "New Securities" does not
               include (a) securities purchased under this Agreement, (b) shares
               of  ConnectClearly  Common Stock  issuable upon exercise of stock
               awards  granted   pursuant  to   ConnectClearly's   option  plans
               described in Schedule 4(c), (c) shares of  ConnectClearly  Common
               Stock issued pursuant to registered public offerings and (d) debt
               securities  that  are  not,  and will  not  become,  directly  or
               indirectly convertible into or exchangeable for capital stock.

               (iii)  In the  event  ConnectClearly  proposes  to  undertake  an
               issuance of New  Securities,  it shall give each  Holder  written
               notice of its  intention,  describing  the type of New Securities
               and the price and the terms upon which ConnectClearly proposes to
               issue the same. Each such Holder shall have 20 Business Days from
               the date of receipt of any such notice to agree to purchase up to
               such Holder's pro-rata share of such New Securities for the price
               and upon the terms  specified  in the  notice  by giving  written
               notice to ConnectClearly  and stating therein the quantity of New
               Securities to be purchased.

               (iv) In the event  any  Holder  entitled  to a  preemptive  right
               hereunder  fails to exercise in full its Preemptive  Right (after
               giving effect to the over-allotment provision of Section 2A(a)(i)
               hereof), ConnectClearly shall have 90 days thereafter to sell the
               New Securities with respect to which such Holder's option was not
               exercised,  so long as such New  Securities  are first offered to
               any other  Holders with a Preemptive  Right,  at a price and upon
               terms no more favorable to the purchasers  thereof than specified
               in  ConnectClearly's  notice to the  Holders  pursuant to Section
               2A(a)(iii).  To the extent ConnectClearly shall not issue or sell
               such New Securities in such 90-day period,  ConnectClearly  shall
               not thereafter  issue or sell such New  Securities  without first
               again offering such securities in the manner provided above.

          b.  A  Holder  may  deliver  a  Notice  of  Exchange  to NCT  and  the
          obligations  of NCT with  respect to such  notice  shall be  triggered
          under the terms and conditions described below:

               (i) If any of the following  (each,  a "Triggering  Event") shall
               occur after the Initial Closing Date: (1) NCT  consolidates  with
               or  merges  into  any  other  Person  and  NCT  shall  not be the
               continuing  or surviving  corporation  of such  consolidation  or
               merger,  (2) another Person  consolidates with or merges into NCT
               and NCT shall be the  continuing  or  surviving  Person  but,  in
               connection with such  consolidation or merger,  any capital stock
               of NCT shall be changed into or exchanged  for  securities of any
               other Person or cash or any other property, (3) NCT transfers all
               or  substantially  all of its  properties  or assets to any other
               Person,   or  (4)  NCT  effects  a  capital   reorganization   or
               reclassification  of its capital stock,  then, and in the case of
               each such  Triggering  Event,  proper  provision shall be made so
               that,  upon the basis and the terms and in the manner provided in
               this  Agreement,  each Holder  holding  Shares on the date of the
               entry by NCT into an agreement in principle to accomplish  any of
               such  Triggering  Event shall be entitled to written  notice from
               NCT,  delivered at least 30 days prior to such Triggering  Event,
               describing in detail the terms of such Triggering  Event.  Within
               20 days of receipt of such notice a Holder may elect,  by written
               notice to NCT, to exchange any Shares,  notwithstanding any other
               restriction  on the right to exchange  contained  herein,  at any
               time prior to such Triggering  Event at the Exchange Ratio (using
               the Actual  Closing Bid Price) in effect at the time  immediately
               prior to the date of the  consummation of such  Triggering  Event
               (the "Distribution Date").

               (ii) Notwithstanding  anything contained in this Agreement to the
               contrary,  NCT will not effect any Triggering Event unless, prior
               to the consummation  thereof,  each Person (other than NCT) which
               may deliver or issue any  securities,  cash and/or  property (any
               such delivery or issuance,  a "Distribution")  in connection with
               the  Triggering  Event,   shall  assume,  by  written  instrument
               delivered to, and reasonably  satisfactory  to, each Holder,  (1)
               the  obligations  of NCT under this  Agreement  (and if NCT shall
               survive  the   consummation  of  such  Triggering   Event,   such
               assumption  shall be in addition  to, and shall not release  NCT,
               any continuing  obligations of NCT under this  Agreement) and (2)
               the  obligation to deliver to such  Distribution  to the Holders,
               and such Person shall have delivered to each Holder an opinion of
               counsel  to  such  Person,  which  counsel  shall  be  reasonably
               satisfactory  to such  Holder,  stating that the  obligations  to
               exchange any outstanding Shares after such Triggering Event shall
               thereafter continue in full force and effect and the terms hereof
               (including,  without  limitation,  all of the  provisions of this
               subsection)  shall be applicable to the  Distribution  which such
               Person may be  required  to deliver  upon any  exchange of Shares
               prior to such  triggering  Event or the  exercise  of any  rights
               pursuant this Agreement.

               (iii) If, at any time while Shares are outstanding, NCT shall (1)
               pay a dividend on, or make any distribution of its assets upon or
               with respect to (including, but not limited to, a distribution of
               its property as a dividend in liquidation or partial  liquidation
               or by way of return  of  capital)  NCT  Common  Stock,  (2) offer
               options or rights to subscribe for shares of NCT Common Stock, or
               (3) issue any Common Stock Equivalents,  to any of its holders of
               Common Stock, then, at least 30 days prior to the record date for
               such  payment,  distribution  or offer  or, in the  absence  of a
               record date, on the date of such payment,  distribution or offer,
               each Holder  holding  Shares shall receive notice of such payment
               or dividend and the right,  notwithstanding any other restriction
               on the right to exchange  contained  herein,  to exchange some or
               all of its  Shares  for  Exchange  Shares at the  Exchange  Ratio
               (using the Actual Closing Bid Price) in effect  immediately prior
               to the record date of such payment,  distribution or offer or, in
               the absence of a record  date,  immediately  prior to the date of
               such payment, distribution or offer.

     "Additional  Shares" means, (a) with respect to ConnectClearly,  all shares
of  ConnectClearly  Common  Stock  issued by  ConnectClearly  after the  Initial
Closing Date, and all shares of Other Common,  if any, issued by  ConnectClearly
after the Initial  Closing Date,  except any Warrant Shares and (b) with respect
to NCT all shares of NCT Common  Stock  issued by NCT after the Initial  Closing
Date,  and all shares of Other Common,  if any,  issued by NCT after the Initial
Closing Date, except the Exchange Shares.

     "Common  Stock  Equivalents"  means any  Convertible  Security  or warrant,
option or other right to subscribe for or purchase any additional  shares of NCT
or ConnectClearly Common Stock, as applicable, or any Convertible Security.

     "Convertible  Security" mean evidences of  indebtedness,  shares of capital
stock or other  securities  which are or may be at any time  convertible into or
exchangeable for Additional Shares.

     "Other Common" means (a) with respect to ConnectClearly,  any capital stock
of  ConnectClearly  of any class which shall be authorized at any time after the
Initial  Closing  Date (other than the Shares) and which shall have the right to
participate in the distribution of earnings and assets of ConnectClearly without
limitation as to amount and (b) with respect to NCT, any capital stock of NCT of
any class which shall be authorized  at any time after the Initial  Closing Date
(other than the NCT Common Stock) and which shall have the right to  participate
in the  distribution  of  earnings  and assets of NCT without  limitation  as to
amount.

     3. BUYER'S REPRESENTATIONS AND WARRANTEES.

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

          a.  Investment  Purpose.  The Buyer is acquiring  the  Securities  (as
          defined in Section 4(d)) for its own account for  investment  purposes
          only and not with a view towards,  or for resale in  connection  with,
          the public  sale or  distribution  thereof,  except  pursuant to sales
          registered or exempted under the 1933 Act; provided,  however, that by
          making the  representations  herein, such Buyer does not agree to hold
          any Securities for any minimum or other specific term and reserves the
          right to dispose of the  Securities at any time in accordance  with or
          pursuant to an effective registration statement under the 1933 Act and
          in compliance  with applicable  state  securities laws or an exemption
          from such registration.

          b. Accredited  Investor Status.  As of the Closing Date, such Buyer is
          an  "accredited  investor" as that term is defined in Regulation D. As
          such,  the Buyer is able to bear the economic risk of an investment in
          the Securities  and, as of the date hereof,  is able to afford a total
          and complete loss of its investment.

          c. Reliance on Exemptions.  Such Buyer  understands  and  acknowledges
          that the  Securities  are  being  offered  and sold to it in a private
          placement  in reliance on specific  exemptions  from the  registration
          requirements  of United States federal and state  securities  laws and
          that  ConnectClearly  and NCT are  relying  in part upon the truth and
          accuracy of, and such Buyer's compliance with, the representations and
          warranties  of such Buyer set forth  above in order to  determine  the
          availability  of such  exemptions and the eligibility of such Buyer to
          acquire such securities.

          d.  Information.  Such  Buyer  and its  advisors,  if any,  have  been
          furnished  with all materials  relating to the business,  finances and
          operations of  ConnectClearly  and NCT and  materials  relating to the
          offer and sale of the  Securities  which have been  requested  by such
          Buyer.  Such Buyer and its  advisors,  if any,  have been afforded the
          opportunity to ask questions of  ConnectClearly  and NCT. Neither such
          inquiries nor any other due diligence investigations conducted by such
          Buyer or its advisors,  if any, or its  representatives  shall modify,
          amend  or  affect  such  Buyer's  right  to rely  on  ConnectClearly's
          representations  and warranties  contained in Section 4 below or NCT's
          representations  and  warranties  contained  in Section 5 below.  Such
          Buyer  understands  that its investment in the  Securities  involves a
          high degree of risk. Such Buyer has sought such accounting,  legal and
          tax  advice  as it  has  considered  necessary  to  make  an  informed
          investment decision with respect to its acquisition of the Securities.

          e. [Intentionally left Blank]

          f. Transfer or Resale of the Securities.  Such Buyer  understands that
          except as  provided  in the  Registration  Rights  Agreement:  (i) the
          Securities issued have not been and are not being registered under the
          1933 Act or any state  securities  laws,  and may not be  offered  for
          sale, sold, assigned,  transferred or otherwise disposed of unless (a)
          subsequently  registered under the 1933 Act and state securities laws,
          if applicable,  (b) such Buyer shall have delivered to  ConnectClearly
          an opinion of  counsel,  in  customary  form,  to the effect that such
          securities to be sold, assigned,  transferred or otherwise disposed of
          may be sold,  assigned,  transferred or otherwise disposed of pursuant
          to an  exemption  from  such  registration,  (c) such  Buyer  provides
          ConnectClearly  with customary  assurance that such  securities can be
          sold, assigned,  transferred or otherwise disposed of pursuant to Rule
          144  promulgated  under  the 1933 Act (or a  successor  rule  thereto)
          ("Rule  144"),  or (d) such Buyer  exchanges  the Shares for  Exchange
          Shares  pursuant to Section 2 above;  (ii) any sale of such securities
          made in reliance on Rule 144 may be made only in  accordance  with the
          terms of Rule 144 and  further,  if Rule  144 is not  applicable,  any
          resale of such securities under  circumstances in which the seller (or
          the  person  through  whom the sale is made)  may be  deemed  to be an
          underwriter  (as that term is  defined  in the 1933  Act) may  require
          compliance  with some other  exemption under the 1933 Act or the rules
          and regulations of the SEC thereunder; and (iii) except as provided in
          Section  6A herein,  neither  ConnectClearly  nor any other  person is
          under any  obligation to register the Shares under the 1933 Act or any
          state securities laws, if applicable,  or to comply with the terms and
          conditions of any exemption thereunder.

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

          h.  Legends  on Shares of  ConnectClearly  Common  Stock.  Such  Buyer
          understands  that the certificates or other  instruments  representing
          the Securities shall bear a restrictive  legend in  substantially  the
          following  form  (and a stop  transfer  order  may be  placed  against
          transfer of such certificates):

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

          The legend set forth above shall be removed and  ConnectClearly  shall
          issue  a  certificate  without  such  legend  to  the  holder  of  the
          Securities, upon which it is stamped, if, unless otherwise required by
          state  securities  laws, (i) the sale of such Securities is registered
          under  the  1933  Act,  (ii)  in  connection  with a sale  transaction
          ConnectClearly  shall have  received a written  opinion of its counsel
          (such opinion to be furnished at the sole expense of ConnectClearly at
          the request of a Buyer), to the effect that a public sale, assignment,
          transfer or other  disposition  of any of such  Securities may be made
          without registration under the 1933 Act, or (iii) such holder provides
          ConnectClearly  with customary  assurances that such Securities can be
          sold pursuant to Rule 144.

               i. Legends on Exchange Shares. Such Buyer understands that, until
               such time as the sale of the Exchange Shares have been registered
               under the 1933 Act as  contemplated  by the  Registration  Rights
               Agreement,  the  stock  certificates  representing  the  Exchange
               Shares  shall  bear a  restrictive  legend in  substantially  the
               following  form (and a stop transfer  order may be placed against
               transfer of such stock certificates):

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

          The legend set forth  above  shall be  removed  and NCT shall  issue a
          certificate  without such legend to the holder of the Exchange Shares,
          upon which it is  stamped,  if,  unless  otherwise  required  by state
          securities  laws,  (i) with respect to the Exchange  Shares only,  the
          Exchange Shares are registered  under the 1933 Act, (ii) in connection
          with a sale  transaction,  such holder provides NCT with an opinion of
          counsel,  in  customary  form,  to  the  effect  that a  public  sale,
          assignment,  transfer or other  disposition of the Exchange Shares may
          be made without  registration under the 1933 Act, or (iii) such holder
          provides NCT with customary assurances that the Exchange Shares can be
          sold pursuant to Rule 144.

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

     4. CONNECTCLEARLY'S REPRESENTATIONS AND WARRANTIES

     ConnectClearly represents and warrants to each of the Buyers and NCT that:

          a.  Organization and  Qualification.  ConnectClearly  is a corporation
          duly organized and validly existing in good standing under the laws of
          the  state of  Delaware,  and has the  requisite  corporate  power and
          authority  to own and use its  properties  (if any) and  assets and to
          carry on its business as now being  conducted.  ConnectClearly  has no
          subsidiaries  other than as set forth in Schedule 4(a)  (collectively,
          the "Subsidiaries").  Each of the Subsidiaries is a corporation,  duly
          organized, validly existing and in good standing under the laws of the
          jurisdiction of its  incorporation  or organization  (as  applicable),
          with  the  full  corporate  power  and  authority  to own  and use its
          properties  and  assets  and to carry  on its  business  as  currently
          conducted.  Each  of  ConnectClearly  and  the  Subsidiaries  is  duly
          qualified  to  do  business  and  is in  good  standing  as a  foreign
          corporation in each  jurisdiction  in which the nature of the business
          conducted or property owned by it makes such qualification  necessary,
          except where the failure to be so qualified  or in good  standing,  as
          the case may be,  would not,  individually  or in the  aggregate,  (x)
          adversely affect the legality,  validity or  enforceability  of any of
          the Transaction  Documents (as defined below), (y) have or result in a
          material  adverse  effect  on  the  results  of  operations,   assets,
          prospects or condition  (financial or otherwise) of  ConnectClearly or
          (z) adversely impair the ConnectClearly's  ability to perform fully on
          a timely basis its obligations under any Transaction  Document (any of
          (x), (y) or (z), being a "Material Adverse Effect").

          b.  Authorization,  Enforcement,  Compliance  with Other  Instruments.
          ConnectClearly  has the  requisite  corporate  power and  authority to
          enter into and  perform  this  Agreement  and any  related  agreements
          (collectively,  the "Transaction Documents"),  to issue the Securities
          issued by it  accordance  with the terms hereof and otherwise to carry
          out its obligations under the Transaction Documents. The execution and
          delivery  of the  Transaction  Documents  by  ConnectClearly  and  the
          consummation  by  it  of  the   transactions   contemplated   thereby,
          including,  without limitation,  the issuance of the Securities,  have
          been duly  authorized  and no  further  consent  or  authorization  is
          required by ConnectClearly. Each of the Transaction Documents has been
          duly executed and delivered by ConnectClearly  and constitutes a valid
          and  binding   obligation  of   ConnectClearly   enforceable   against
          ConnectClearly   in  accordance   with  its  terms,   except  as  such
          enforceability  may be  limited by  general  principles  of equity and
          applicable   bankruptcy,   insolvency,   reorganization,   moratorium,
          liquidation  or similar laws  relating to, or affecting  generally the
          enforcement of, creditors' rights and remedies.  ConnectClearly is not
          in  violation  of  any  of  the  provisions  of  its   certificate  of
          incorporation, bylaws or other organizational documents.

          c. Capitalization. As of the date hereof, the authorized capital stock
          of  ConnectClearly  consists of  10,000,000  shares of  ConnectClearly
          Common Stock and 1,000,000  shares of Preferred  Stock, of which as of
          July 31,  2000,  18,000  shares of  ConnectClearly  Common  Stock were
          issued and  outstanding and no shares of preferred stock or notes were
          issued and outstanding.  All of such outstanding shares have been duly
          authorized  and validly  issued and are fully paid and  nonassessable.
          Except as disclosed in Schedule 4(c), as of the effective date of this
          Agreement:

               (i) no shares of  ConnectClearly's  capital  stock is  subject to
               preemptive  rights  or any other  similar  rights or any liens or
               encumbrances suffered or permitted by ConnectClearly,  nor is any
               holder of capital stock of ConnectClearly  entitled to preemptive
               or similar rights  arising out of any agreement or  understanding
               with   ConnectClearly   by  virtue  of  any  of  the  Transaction
               Documents;

               (ii)  except  as set  forth on  Schedule  4(c)(ii),  there are no
               outstanding  options,  warrants,  scrip,  rights to subscribe to,
               calls or commitments of any character  whatsoever relating to, or
               securities or rights  convertible  into or exchangeable  for, any
               shares  of  capital  stock  of   ConnectClearly,   or  contracts,
               commitments,    understandings    or    arrangements   by   which
               ConnectClearly  is or may become bound to issue additional shares
               of capital stock of ConnectClearly;

               (iii) there are no outstanding debt securities;

               (iv)  there  are  no  agreements  or  arrangements   under  which
               ConnectClearly  is  obligated  to register the sale of any of its
               securities under the 1933 Act;

               (v) there are no outstanding  securities of ConnectClearly  which
               contain any  redemption or similar  provisions,  and there are no
               contracts,  commitments,  understandings or arrangements by which
               ConnectClearly  is or may become  bound to redeem a  security  of
               ConnectClearly;

               (vi)  there  are  no   securities   or   instruments   containing
               anti-dilution or similar provisions that will be triggered by the
               issuance of the Securities as described in this Agreement;

               (vii)  ConnectClearly does not have any stock appreciation rights
               or "phantom  stock"  plans or  agreements  or any similar plan or
               agreement; and

               (viii)  to the best  knowledge  of  ConnectClearly,  no Person or
               group  of  related  Persons   beneficially  owns  (as  determined
               pursuant to Rule 13d-3 promulgated under the Securities  Exchange
               Act of 1934, as amended) or has the right to acquire by agreement
               with or by  obligation  binding  upon  ConnectClearly  beneficial
               ownership of in excess of 5% of the ConnectClearly  Common Stock.
               A  "Person"  means an  individual  or  corporation,  partnership,
               trust, incorporated or unincorporated association, joint venture,
               limited liability company, joint stock company, government (or an
               agency or subdivision thereof) or other entity of any kind.

          ConnectClearly  has furnished to the Buyers true and correct copies of
          ConnectClearly's  Certificate of  Incorporation,  as amended and as in
          effect  on  the  date  hereof  (the  "ConnectClearly   Certificate  of
          Incorporation"),  and  ConnectClearly's  By-laws,  as in effect on the
          date hereof (the "By-laws").

          d. Issuance of Securities.  The Securities  are duly  authorized  and,
          when issued and paid for in accordance with the terms hereof, shall be
          (i) validly issued,  fully paid and nonassessable,  and (ii) free from
          all taxes, liens,  encumbrances,  security interests,  rights of first
          refusal  and  charges  with  respect  to  the  issue   thereof.   Such
          securities,  upon  issuance,  will not subject the holders  thereof to
          personal  liability  by reason of being  such  holders.  The holder of
          Securities  shall be  entitled  to all rights  accorded to a holder of
          ConnectClearly Common Stock. The shares of ConnectClearly Common Stock
          issuable  upon  exercise of the Warrants are referred to herein as the
          "Warrant  Shares."  When  issued and paid for in  accordance  with the
          Warrants, the Warrant Shares will be duly authorized,  validly issued,
          fully paid and nonassessable, free and clear of all liens. The Shares,
          the  Warrants  and the  Warrant  Shares are  referred to herein as the
          "Securities."

          e. No  Conflicts.  The  execution,  delivery and  performance  of this
          Agreement and the other Transaction  Documents by  ConnectClearly  and
          the consummation by  ConnectClearly  of the transactions  contemplated
          hereby  and  thereby  will  not  (i)  conflict  with  or  violate  the
          Certificate  of  Incorporation  or By-laws,  or (ii)  conflict with or
          constitute  a default  (or an event which with notice or lapse of time
          or both would become a default) under, or give to others any rights of
          termination,   amendment,   acceleration  or   cancellation   of,  any
          agreement,  indenture or instrument  (evidencing a ConnectClearly debt
          or  otherwise)  to which  ConnectClearly  is a party  or by which  any
          property or asset of ConnectClearly is bound or affected, (iii) result
          in  a  violation  of  any  law,  rule,  regulation,  order,  judgment,
          injunction,  decree or other  restriction of any court or governmental
          authority to which  ConnectClearly is subject  (including  federal and
          state securities laws and regulations and the rules and regulations of
          the  principal  market or exchange on which the Common Stock is traded
          or listed),  or by which any  property or asset of  ConnectClearly  is
          bound or affected or (iv) result in the  creation of  imposition  of a
          lien or other restriction upon the Securities  purchased  hereunder or
          any of the assets of ConnectClearly, or any of its Affiliates (as such
          term is defined under Rule 405 promulgated under the Securities Act.

          f. No Default or  Violation.  Except as  disclosed  in Schedule  4(f),
          ConnectClearly  is not in violation of any term of or in default under
          its  Certificate  of  Incorporation  or By-laws or its  organizational
          charter or by-laws, respectively, or any material contract, agreement,
          mortgage, lease, indebtedness, indenture, instrument, judgment, decree
          or  order  or  any  statute,   rule  or   regulation   applicable   to
          ConnectClearly. The business of ConnectClearly is not being conducted,
          and shall not be  conducted,  in  violation  of any law,  ordinance or
          regulation of any governmental authority except for any such violation
          as would not,  individually  or in the aggregate,  have or result in a
          Material Adverse Effect.

          g. Consents. Except as specifically contemplated by this Agreement and
          as required under the 1933 Act and applicable  state  securities laws,
          neither  ConnectClearly  nor any  Subsidiary is required to obtain any
          consent,  waiver,  authorization  or order of,  or make any  filing or
          registration with, any court or governmental agency in connection with
          the execution, delivery or performance of any of its obligations under
          or  contemplated  by  this  Agreement  and/or  the  other  Transaction
          Documents in accordance with the terms hereof and/or  thereof.  Except
          as  disclosed  in  Section  6(f)  and  Schedule  4(g),  all  consents,
          authorizations, orders, filings and registrations which ConnectClearly
          is required to obtain  pursuant to the  preceding  sentence  have been
          obtained or effected  on or prior to the date  hereof.  ConnectClearly
          has no knowledge of any facts or  circumstances  which might give rise
          to any of the foregoing.

          h.  Absence  of  Litigation.  There is no  action,  suit,  proceeding,
          inquiry  or  investigation  before  or by  any  court,  public  board,
          government agency, self-regulatory organization or body pending or, to
          the  knowledge  of  ConnectClearly,  threatened  against or  affecting
          ConnectClearly  or any of the  Subsidiaries or any of their respective
          properties, or ConnectClearly Common Stock.

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

          j. No Undisclosed Events, Liabilities,  Developments or Circumstances.
          To the  best  of  ConnectClearly's  knowledge,  no  event,  liability,
          development or circumstance has occurred or exists, or is contemplated
          to  occur,   with  respect  to   ConnectClearly   or  its  businesses,
          properties,  prospects, operations or financial condition, which could
          be material but which has not been publicly  announced or disclosed in
          writing to the Buyer.

          k. No General  Solicitation.  Neither  ConnectClearly,  nor any of its
          Affiliates, nor any Person acting on its or their behalf, has made, or
          will make,  offers or sales of  ConnectClearly  Common  Stock,  or any
          securities   that  might  be  integrated  with  offers  and  sales  of
          ConnectClearly  Common Stock,  except to  "accredited  investors"  (as
          defined in Regulation D  ("Regulation  D") under the Securities Act of
          1933,  as  amended  (the   "Securities   Act"))  without  any  general
          solicitation  or  advertising  and  otherwise in  compliance  with the
          conditions of Regulation  D. The offer and sale by  ConnectClearly  to
          the  Buyers  of  the  Securities  is  exempt  from  the   registration
          requirements of the Securities Act.

          l. Title. Each of ConnectClearly  and the Subsidiaries have good title
          to, or the right to use, all personal property owned or leased by them
          which  is  material  to  the  business  of   ConnectClearly   and  the
          Subsidiaries,  in each case free and clear of all liens,  encumbrances
          and defects, except for those which do not materially affect the value
          of such  property or  interfere  with the use made and  proposed to be
          made of such property by ConnectClearly and the Subsidiaries.  Neither
          ConnectClearly nor any of the Subsidiaries owns any real property. Any
          real property and facilities  held under lease by  ConnectClearly  and
          the  Subsidiaries  are  held  by  them  under  valid,  subsisting  and
          enforceable leases with such exceptions as are not material and do not
          interfere  with the use made and proposed to be made of such  property
          and buildings by ConnectClearly and the Subsidiaries.

          m. Rights of First Refusal.  ConnectClearly  is not obligated to offer
          the securities  offered hereunder on a right of first refusal basis or
          similar  right to any third  parties  including,  but not  limited to,
          current  or  former  shareholders  of  ConnectClearly,   underwriters,
          brokers, agents or other third parties.

          n. Investment Company. ConnectClearly is not, and is not controlled by
          or under common control with an Affiliate of, an "investment  company"
          within  the  meaning  of the  Investment  Company  of Act of 1940,  as
          amended.

          o. Disclosure. To the best of ConnectClearly's knowledge, neither this
          Agreement nor the Schedules  attached hereto furnished by or on behalf
          of  ConnectClearly  contain any untrue statement of a material fact or
          omit to state any material fact relating to  ConnectClearly  necessary
          in order to make the statements made therein not misleading.

          p. Patents and Trademarks.  ConnectClearly  has, or has rights to use,
          all patents, patent applications,  trademarks, trademark applications,
          service   marks,   trade  names,   copyrights,   licenses  and  rights
          (collectively, the "Intellectual Property Rights") which are necessary
          for use in connection  with its business,  as currently  conducted and
          which the failure to so have would have a Material Adverse Effect.

          q. Regulatory Permits. ConnectClearly and the Subsidiaries possess all
          franchises,  certificates,  licenses,  authorizations  and  permits or
          similar authority issued by the appropriate federal,  state or foreign
          regulatory   authorities   necessary  to  conduct   their   respective
          businesses except where the failure to possess such permits would not,
          individually  or in the  aggregate,  have a  Material  Adverse  Effect
          ("Material  Permits"),   and  neither   ConnectClearly  nor  any  such
          Subsidiary  has  received  any notice of  proceedings  relating to the
          revocation or modification of any Material Permit.

          r. Insurance.  ConnectClearly  and each Subsidiary  maintains property
          and  casualty,  general  liability,  workers'  compensation,  personal
          injury and other similar types of insurance with financially sound and
          reputable   insurers  that  is  adequate,   consistent  with  industry
          standards.  Neither  ConnectClearly  nor any  Subsidiary  has received
          notice from, and has any knowledge of any threat by, any insurer (that
          has issued any insurance policy to  ConnectClearly  or any Subsidiary)
          that  such  insurer   intends  to  deny  coverage   under  or  cancel,
          discontinue or not renew any insurance  policy  presently in force. To
          the best of its knowledge,  ConnectClearly is not exposed to liability
          for environmental hazards.

          s.  Taxes.  All  applicable  tax  returns  required  to  be  filed  by
          ConnectClearly and each of the Subsidiaries have been filed, or if not
          yet filed  have been  granted  extensions  of the filing  dates  which
          extensions  have not  expired,  and all taxes,  assessments,  fees and
          other governmental charges upon ConnectClearly,  the Subsidiaries,  or
          upon any of their respective properties,  income or franchises,  shown
          in such returns and on assessments  received by  ConnectClearly or the
          Subsidiaries  to be due  and  payable  have  been  paid,  or  adequate
          reserves  therefor  have  been set up if any of such  taxes  are being
          contested  in good faith;  or if any of such tax returns have not been
          filed or if any such taxes have not been paid or so reserved  for, the
          failure  to  so  file  or  to  pay  would  not  in  the  aggregate  or
          individually have a Material Adverse Effect.

          t.  No  Integrated  Offering.   Other  than  to  the  Buyers,  neither
          ConnectClearly,  nor any of its  Affiliates,  nor any Person acting on
          its or their  behalf,  has directly or  indirectly  made any offers or
          sales in any  security or solicited  any offers to buy any  securities
          under  circumstances  that  would  require  registration  of any  such
          securities  under  the  Securities  Act or cause the  offering  of the
          Securities  pursuant to this  Agreement  to be  integrated  with prior
          offerings by Connect Clearly for purposes of the Securities Act.

          u. Registration Rights;  Rights of Participation.  Except as described
          on Schedule 4(u) attached hereto,  (A)  ConnectClearly has not granted
          or agreed to grant to any Person any  rights  (including  "piggy-back"
          registration   rights)  to  have  any  securities  of   ConnectClearly
          registered  with the Securities  and Exchange  Commission or any other
          governmental  authority which has not been satisfied and (B) except as
          set forth on Schedule 4(c) attached hereto, no Person,  including, but
          not  limited to,  current or former  shareholders  of  ConnectClearly,
          underwriters,  brokers  or  agents,  has any  right of first  refusal,
          preemptive  right,  right of  participation,  or any similar  right to
          participate in the transactions  contemplated by this Agreement or any
          other Transaction Document.

          v. Certain Fees. Except as specifically set forth in Schedule 4(v), no
          fees or commissions will be payable by  ConnectClearly  to any broker,
          financial advisor, finder,  investment banker, or bank with respect to
          the transactions contemplated by this Agreement. The Buyers shall have
          no  obligation  with respect to any fees or with respect to any claims
          made by or on behalf of other Persons for fees of a type  contemplated
          in  this  Section  4(v)  that  may  be  due  in  connection  with  the
          transactions  contemplated  by this  Agreement.  ConnectClearly  shall
          indemnify  and  hold  harmless  each  of the  Buyers,  its  employees,
          officers,  directors,  agents,  and  partners,  and  their  respective
          Affiliates,  from and  against  all  claims,  losses,  damages,  costs
          (including the costs of preparation and attorney's  fees) and expenses
          suffered in respect of any such claimed or existing fees.

          w.  Seniority.  No class of equity  securities  of  ConnectClearly  is
          senior  to  the   Securities   in  right  of  payment,   whether  upon
          liquidation, dissolution or otherwise.

          x.  Solicitation  Materials.  ConnectClearly  has not  distributed any
          offering  materials  in  connection  with the offering and sale of the
          shares of ConnectClearly purchased hereunder.  ConnectClearly confirms
          that it has not  provided  the Buyers or their  agents or counsel with
          any  information  that   constitutes  or  might  constitute   material
          non-public information.  ConnectClearly  understands and confirms that
          the  Buyers  shall be  relying  on the  foregoing  representations  in
          effecting transactions in securities of ConnectClearly.

     5. NCT'S REPRESENTATIONS AND WARRANTIES

     NCT represents and warrants to each of the Buyers that:

          a. Organization and Qualification. NCT is a corporation duly organized
          and validly  existing in good standing  under the laws of the state of
          Delaware,  and has the requisite  corporate power and authority to own
          and use its  properties  (if  any)  and  assets  and to  carry  on its
          business  as now being  conducted.  NCT has no  material  subsidiaries
          other than as set forth on NCT's most recently  filed Annual Report on
          Form  10-K  (collectively,  the "NCT  Subsidiaries").  Each of the NCT
          Subsidiaries is a corporation duly organized,  validly existing and in
          good standing under the laws of the jurisdiction of its  incorporation
          or  organization  (as  applicable),  with the full corporate power and
          authority to own and use its properties and assets and to carry on its
          business as currently conducted.  Each of NCT and the NCT Subsidiaries
          is duly  qualified as a foreign  corporation  to do business and is in
          good  standing  in every  jurisdiction  in  which  the  nature  of the
          business  conducted or property  owned by it makes such  qualification
          necessary, except to the extent that the failure to be so qualified or
          be in good  standing  would not (x)  adversely  affect  the  legality,
          validity or enforceability of any of the NCT Transaction Documents (as
          defined below), (y) have or result in a material adverse effect on the
          results of operations,  assets,  prospects or condition  (financial or
          otherwise) of NCT or the NCT  Subsidiaries or (z) adversely impair the
          NCT's ability to perform fully on a timely basis its obligations under
          any NCT  Transaction  Document  (any of (x), (y) or (z),  being a "NCT
          Material Adverse Effect").

          b. Authorization,  Enforcement, Compliance with Other Instruments. NCT
          has the  requisite  corporate  power and  authority  to enter into and
          perform this  Agreement,  the  Registration  Rights  Agreement and any
          related agreements (collectively, the "NCT Transaction Documents"), to
          issue the  Exchange  Shares in  accordance  with the terms  hereof and
          otherwise  to carry  out its  obligations  under  the NCT  Transaction
          Documents. The execution and delivery of the NCT Transaction Documents
          by NCT  and the  consummation  by it of the  transaction  contemplated
          thereby,  including,  without limitation, the reservation for issuance
          of the Exchange Shares issuable upon exchange thereof,  have been duly
          authorized  by NCT's  Board of  Directors  and no  further  consent or
          authorization  is  required  by NCT,  its  Board of  Directors  or its
          stockholders.  Each of the NCT  Transaction  Documents  has been  duly
          executed and delivered by NCT and, when delivered, constitutes a valid
          and binding  obligation of NCT  enforceable  against NCT in accordance
          with its  terms,  except  as such  enforceability  may be  limited  by
          general  principles of equity and applicable  bankruptcy,  insolvency,
          reorganization,  moratorium,  liquidation or similar laws relating to,
          or affecting  generally  the  enforcement  of,  creditors'  rights and
          remedies,  and subject to the limitation that the  indemnification and
          contribution  provisions of the  Registration  Rights Agreement may be
          unenforceable as a matter of public policy. NCT is not in violation of
          any of the provisions of its certificate of  incorporation,  bylaws or
          other organizational documents.

          c. Capitalization. As of the date hereof, the authorized capital stock
          of NCT  consists  of  450,000,000  shares  of  NCT  Common  Stock  and
          10,000,000  shares of NCT Preferred  Stock,  of which,  as of June 30,
          2000, approximately 275,014,933 shares of NCT Common Stock were issued
          and  outstanding,  and,  except for 3,464 shares of Series F Preferred
          Stock and  2,004  shares of  Series G  Preferred  Stock,  no shares of
          preferred   stock,   NCT  Common   Stock  or  notes  were  issued  and
          outstanding.  All of such outstanding shares have been duly authorized
          and  validly  issued and are fully paid and  nonassessable.  Except as
          disclosed in NCT's SEC  Documents  (as defined  below) and in Schedule
          5(c), as of the effective date of this Agreement:

               (i) no shares of NCT's  capital  stock are subject to  preemptive
               rights or any other similar  rights or any liens or  encumbrances
               suffered or permitted by NCT, nor is any holder of capital  stock
               of NCT entitled to  preemptive or similar  rights  arising out of
               any agreement or  understanding  with NCT by virtue of any of the
               NCT Transaction Documents;

               (ii) there are no outstanding options, warrants, scrip, rights to
               subscribe to, calls or  commitments  of any character  whatsoever
               relating  to,  or  securities  or  rights   convertible  into  or
               exchangeable  for,  any  shares  of  capital  stock  of  NCT,  or
               contracts,  commitments,  understandings or arrangements by which
               NCT is or may become bound to issue additional  shares of capital
               stock of NCT;

               (iii) there are no outstanding debt securities;

               (iv) there are no agreements or  arrangements  under which NCT or
               any of its  subsidiaries is obligated to register the sale of any
               of its  securities  under the 1933 Act (except  the  Registration
               Rights Agreement);

               (v) there are no outstanding  securities of NCT which contain any
               redemption  or similar  provisions,  and there are no  contracts,
               commitments,  understandings  or  arrangements by which NCT is or
               may become bound to redeem a security of NCT;

               (vi)  there  are  no   securities   or   instruments   containing
               anti-dilution or similar provisions that will be triggered by the
               issuance of the NCT Common Stock as described in this Agreement;

               (vii) NCT does not have any stock appreciation rights or "phantom
               stock" plans or agreements or any similar plan or agreement; and

               (viii)  to the  best  knowledge  of NCT,  no  Person  or group of
               related Persons beneficially owns (as determined pursuant to Rule
               13d-3 promulgated  under the Securities  Exchange Act of 1934, as
               amended)  or has the right to  acquire  by  agreement  with or by
               obligation binding upon NCT beneficial  ownership of in excess of
               5% of the NCT Common Stock.

          NCT has  furnished  to the  Buyers  true and  correct  copies of NCT's
          Restated Certificate of Incorporation,  as amended and as in effect on
          the date hereof (the "NCT  Certificate of  Incorporation"),  and NCT's
          By-laws, as in effect on the date hereof (the "NCT By-laws").

          d.  Issuance of Exchange  Shares.  The Exchange  Shares  issuable upon
          exchange of the Shares have been duly authorized.  Upon exchange,  the
          Exchange Shares will be validly issued,  fully paid and nonassessable,
          free from all taxes, liens, encumbrances,  security interests,  rights
          of first  refusal and charges with respect to the issue  thereof.  The
          holders  of the  Exchange  Shares  will  not be  subject  to  personal
          liability  by reason of being such  holders.  The  holders of Exchange
          Shares  shall be  entitled  to all rights  accorded to a holder of NCT
          Common Stock.

          e. No  Conflicts.  The  execution,  delivery and  performance  of this
          Agreement  and the  other  NCT  Transaction  Documents  by NCT and the
          consummation  by NCT  of  the  transactions  contemplated  hereby  and
          thereby will not (i) conflict with or violate the NCT  Certificate  of
          Incorporation  or NCT By-laws,  or (ii)  conflict with or constitute a
          default  (or an event which with notice or lapse of time or both would
          become a default)  under, or give to others any rights of termination,
          amendment,  acceleration or cancellation of, any agreement,  indenture
          or instrument (evidencing a NCT debt or otherwise) to which NCT or any
          of its  subsidiaries  is a party or by which any  property or asset of
          NCT is bound or  affected,  (iii)  result in a  violation  of any law,
          rule,  regulation,  order,  judgment,   injunction,  decree  or  other
          restriction of any court or governmental authority to which NCT or any
          NCT Subsidiary is subject (including federal and state securities laws
          and regulations and the rules and regulations of the principal  market
          or exchange  on which the NCT Common  Stock is traded or listed) or by
          which any property or asset of NCT or any NCT  Subsidiary  is bound or
          affected or (iv) result in the  creation  of  imposition  of a lien or
          other  restriction  upon the  Exchange  Shares or any of the assets of
          NCT, or any of its Affiliates (as such term is defined in Section 6(k)
          hereof).

          f. No Default or  Violation.  Except as  disclosed  in Schedule  5(f),
          neither NCT nor its  subsidiaries is in violation of any term of or in
          default under the NCT Certificate of  Incorporation  or NCT By-laws or
          their organizational charter or by-laws, respectively, or any material
          contract,   agreement,   mortgage,  lease,  indebtedness,   indenture,
          instrument,  judgment,  decree  or  order  or  any  statute,  rule  or
          regulation applicable to NCT or its subsidiaries.  The business of NCT
          and the NCT  Subsidiaries  is not being  conducted in violation of any
          law, ordinance or regulation of any governmental  authority except for
          any such  violation as would not,  individually  or in the  aggregate,
          have or result in a NCT Material Adverse Effect.

          g. Consents. Except as specifically contemplated by this Agreement and
          as required under the 1933 Act and applicable  state  securities laws,
          neither NCT nor any of the NCT  Subsidiaries is required to obtain any
          consent,  waiver,  authorization  or order of,  or make any  filing or
          registration with, any court or governmental agency in connection with
          the execution, delivery or performance of any of its obligations under
          or  contemplated  by this Agreement  and/or the other NCT  Transaction
          Documents in accordance with the terms hereof and/or  thereof.  Except
          as  disclosed  in  Section  6(f)  and  Schedule  5(g),  all  consents,
          authorizations, orders, filings and registrations which ConnectClearly
          is required to obtain  pursuant to the  preceding  sentence  have been
          obtained  or  effected  on or prior to the  date  hereof.  NCT and its
          subsidiaries  have no  knowledge of any facts or  circumstances  which
          might give rise to any of the foregoing.

          h. SEC Documents: Financial Statements. Since January 1, 1998, NCT has
          filed all reports,  schedules,  forms,  statements and other documents
          required  to be  filed by it with the SEC  pursuant  to the  reporting
          requirements of the 1934 Act,  including  pursuant to Section 13(a) or
          15(d) thereof (all of the foregoing  materials filed prior to the date
          hereof and all exhibits  included  therein and  financial  statements,
          schedules  and  documents  incorporated  by reference  therein,  being
          hereinafter  collectively  referred to as "NCT's SEC  Documents") on a
          timely basis or has received a valid  extension of such time of filing
          and has filed any such SEC  Documents  prior to the  expiration of any
          such  extension.  As of their  respective  dates,  NCT's SEC Documents
          complied  in  all  material  respects  with  the  requirements  of the
          Exchange  Act and the rules  and  regulations  of the SEC  promulgated
          thereunder,  and none of the SEC Documents,  when filed, contained any
          untrue  statement  of a  material  fact or omitted to state a material
          fact  required to be stated  therein or necessary in order to make the
          statements  therein not misleading.  All material  agreements to which
          NCT is a party or to which the  property  or assets of NCT are subject
          have been filed as  exhibits  to the NCT SEC  Documents  as  required;
          neither  NCT nor  any of the  NCT  Subsidiaries  is in  breach  of any
          agreement   where  such  breach  would   reasonably  be  expected  to,
          individually or in the aggregate,  have a NCT Material Adverse Effect.
          As  of  their  respective  dates,  the  financial  statements  of  NCT
          contained  in NCT's SEC  Documents  (the "NCT  Financial  Statements")
          complied  in  all  material   respects  with   applicable   accounting
          requirements  and the published  rules and regulations of the SEC with
          respect thereto as in effect at the time of filing. Such NCT Financial
          Statements  have  been  prepared  in  accordance  with  United  States
          generally accepted accounting principles, consistently applied, during
          the periods involved (except (i) as may be otherwise indicated in such
          NCT Financial  Statements or the notes thereto, or (ii) in the case of
          unaudited interim statements, to the extent they may exclude footnotes
          or may be condensed or summary  statements)  and fairly present in all
          material   respects  the  financial   position  of  NCT  and  the  NCT
          Subsidiaries  as of and for the dates  thereof  and the results of its
          operations and cash flows for the periods then ended (subject,  in the
          case of unaudited  statements,  to normal year-end audit adjustments).
          Since the date of the  financial  statements  included  in NCT's  last
          filed  Quarterly  Report on Form 10-Q for the period  ended  March 31,
          2000, there has been no event, occurrence or development that has had,
          or would reasonably be expected to have, a NCT Material Adverse Effect
          which has not been  specifically  disclosed  to the Buyers by NCT.  No
          other  information  provided by or on behalf of NCT to the Buyer which
          is not included in NCT's SEC Documents, including, without limitation,
          information  referred to in Section 3(d) of this  Agreement,  contains
          any untrue statement of a material fact or omits to state any material
          fact necessary in order to make the statements  therein,  in the light
          of the circumstance under which they are or were made, not misleading.

          i. Absence of Certain  Changes.  Except as disclosed in Schedule  5(i)
          and in NCT's SEC Documents  (as defined in Section 5(h) above),  there
          has  been  no  material   adverse  change  and  no  material   adverse
          development  in  the  business,  properties,   operations,   financial
          condition,  results  of  operations  or  prospects  of NCT or the  NCT
          Subsidiaries.  NCT has not taken  any  steps,  and does not  currently
          expect  to  take  any  steps,  to  seek  protection  pursuant  to  any
          bankruptcy law, nor does NCT or its subsidiaries have any knowledge or
          reason to believe that its  creditors  intend to initiate  involuntary
          bankruptcy proceedings.

          j. Absence of  Litigation.  Except as disclosed in NCT's SEC Documents
          (as  defined  in  section  5(h)  above),  there  is no  action,  suit,
          proceeding,  inquiry or investigation  before or by any court,  public
          board, government agency, self-regulatory organization or body pending
          or, to the  knowledge  of NCT or any of its  subsidiaries,  threatened
          against  or  affecting  NCT,  the NCT  Common  Stock or any of the NCT
          Subsidiaries,  wherein  an  unfavorable  decision,  ruling or  finding
          would,   except  as  expressly  set  forth  in  Schedule  5(j),  would
          reasonably be expected to have a NCT Material Adverse Effect.

          k.   Acknowledgment   Regarding   Buyer's   Purchase   of   Shares  of
          ConnectClearly  Common Stock. NCT acknowledges and agrees,  based upon
          Buyers'  representations,  that the Buyers  are  acting  solely in the
          capacity of an  arms-length  purchaser  with respect to this Agreement
          and the transactions  contemplated  hereby.  NCT further  acknowledges
          that the Buyers are not acting as a financial  advisor or fiduciary of
          NCT (or in any similar  capacity)  with respect to this  Agreement and
          the transactions  contemplated  hereby.  NCT further represents to the
          Buyers that NCT's decision to enter into this Agreement has been based
          solely on the independent evaluation by NCT and its representatives.

          l. No Undisclosed Events, Liabilities,  Developments or Circumstances.
          To the best of NCT's knowledge,  no event,  liability,  development or
          circumstance has occurred or exists, or is contemplated to occur, with
          respect to NCT or its  subsidiaries  or their  respective  businesses,
          properties,  prospects, operations or financial condition, which could
          be material but which has not been publicly  announced or disclosed in
          writing to the Buyer.

          m. No General  Solicitation.  Neither NCT, nor any of its  affiliates,
          nor any Person acting on its or their behalf,  has made, or will make,
          offers or sales of NCT Common Stock,  or any securities  that might be
          integrated  with  offers  and  sales of NCT  Common  Stock,  except to
          "accredited investors" without any general solicitation or advertising
          and otherwise in compliance  with the  conditions of Regulation D. The
          offer  and sale by  ConnectClearly  to the  Buyers  of the  Securities
          purchased  hereunder and the shares of NCT Common Stock  issuable upon
          exchange of the Shares is exempt from the registration requirements of
          the Securities Act.

          n. Employee Relations.  Neither NCT nor any of the NCT Subsidiaries is
          involved in any labor  dispute nor, to the  knowledge of NCT or any of
          the NCT Subsidiaries, is any such dispute threatened. None of NCT's or
          the  NCT  Subsidiaries'  employees  is a  member  of a  union  and NCT
          believes its and the NCT Subsidiaries'  relations with their employees
          are  satisfactory.  Each of NCT and each of the NCT Subsidiaries is in
          compliance  in all material  respects  with all  presently  applicable
          provisions of the Employee  Retirement Income Security Act of 1974, as
          amended,  including  the  regulations  and  published  interpretations
          thereunder ("ERISA");  no "reportable event" (as defined in ERISA) has
          occurred with respect to any "pension  plan" (as defined in ERISA) for
          which NCT or any NCT Subsidiary would have any liability;  neither NCT
          nor any NCT  Subsidiary  has incurred  and expects to incur  liability
          under  (i)  Title IV of ERISA  with  respect  to  termination  of,  or
          withdrawal  from,  any "pension  plan" or (ii) Sections 412 or 4971 of
          the  Internal  Revenue  Code  of  1986,  as  amended,   including  the
          regulations and published interpretations thereunder (the "Code"); and
          each  "pension  plan" for which NCT or any  subsidiary  would have any
          liability that is intended to be qualified under Section 401(a) of the
          Code  is so  qualified  in  all  material  respects  and  nothing  has
          occurred,  whether by action or by failure to act,  which  would cause
          the loss of such qualification.

          o.  Environmental  Laws.  NCT  and  the  NCT  Subsidiaries,  to  NCT's
          knowledge,  (i) are in compliance with any and all applicable foreign,
          federal,  state  and  local  laws  and  regulations  relating  to  the
          protection of human health and safety, the environment or hazardous or
          toxic substances or wastes, pollutants or contaminants ("Environmental
          Laws");  (ii) have received all permits,  licenses or other  approvals
          required of them under applicable  Environmental Laws to conduct their
          respective businesses;  and (iii) are in compliance with all terms and
          conditions of any such permit, license or approval.

          p. Title.  Each of NCT and the NCT Subsidiaries have good title to, or
          the right to use, all personal  property owned or leased by them which
          is material to the business of NCT and the NCT  Subsidiaries,  in each
          case free and clear of all liens,  encumbrances and defects, except as
          described  in  Schedule  5(p)  and  except  for  those  which  do  not
          materially affect the value of such property or interfere with the use
          made  and  proposed  to be made of  such  property  by NCT and the NCT
          Subsidiaries.  Neither  NCT nor the NCT  Subsidiaries  owns  any  real
          property. Any real property and facilities held under lease by NCT and
          the NCT  Subsidiaries  are held by them under  valid,  subsisting  and
          enforceable leases with such exceptions as are not material and do not
          interfere  with the use made and proposed to be made of such  property
          and buildings by NCT and the NCT Subsidiaries.

          q.  Insurance.  NCT and each NCT  Subsidiary  maintains  property  and
          casualty,  general liability,  workers' compensation,  personal injury
          and  other  similar  types of  insurance  with  financially  sound and
          reputable   insurers  that  is  adequate,   consistent  with  industry
          standards.  Neither NCT nor any NCT  Subsidiary  has  received  notice
          from,  and has any  knowledge of any threat by, any insurer  (that has
          issued any insurance  policy to NCT or any NCT  Subsidiary)  that such
          insurer  intends to deny coverage under or cancel,  discontinue or not
          renew any  insurance  policy  presently  in force.  To the best of its
          knowledge, NCT is not exposed to liability for environmental hazards.

          r.  Regulatory  Permits.  NCT  and the NCT  Subsidiaries  possess  all
          franchises, certificates, authorizations, licenses, permits or similar
          authority  issued  by  the  appropriate  federal,   state  or  foreign
          regulatory   authorities   necessary  to  conduct   their   respective
          businesses,   except   where   failure   to  have   such   franchises,
          certificates, authorizations, licenses, permits or similar authorities
          would  not  have a NCT  Material  Adverse  Effect  on  the  condition,
          financial or otherwise, or the earnings, business or operations of NCT
          and the NCT Subsidiaries, taken as a whole have a NCT Material Adverse
          Effect ("NCT  Material  Permits").  NCT and each NCT Subsidiary has no
          knowledge of, and has received no notice of,  proceedings  relating to
          the revocation or modification of any NCT Material Permits.

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

          t. No Materially  Adverse  Contracts,  etc. Neither NCT nor any of the
          NCT  Subsidiaries is subject to any charter,  corporate or other legal
          restriction, or any judgment, decree, order, rule or regulation which,
          in the judgment of NCT's officers, has or is expected in the future to
          have a NCT  Material  Adverse  Effect on the  businesses,  properties,
          operations, financial condition, results of operations or prospects of
          NCT  or  the  NCT  Subsidiaries.  Neither  NCT  nor  any  of  the  NCT
          Subsidiaries  is a party to any  contract or agreement  which,  in the
          judgment of NCT's officers,  has or is expected to have a NCT Material
          Adverse Effect on the businesses,  properties,  operations,  financial
          condition,  results  of  operations  or  prospects  of NCT or the  NCT
          Subsidiaries.

          u. Tax Status.  Except as set forth on Schedule  5(u), NCT and each of
          the NCT  Subsidiaries  has made or filed all federal and state  income
          and all other tax returns,  reports and  declarations  required by any
          jurisdiction  to which they are subject (unless and only to the extent
          that NCT and each of the NCT  Subsidiaries  has set aside on its books
          provisions  reasonably  adequate  for the  payment  of all  unpaid and
          unreported  taxes)  and has  paid all  taxes  and  other  governmental
          assessments  and  charges,  shown  or  determined  to be due  on  such
          returns,  reports and  declarations  (except those being  contested in
          good  faith)  and has set  aside on its  books  provisions  reasonably
          adequate  for the payment of all taxes for periods  subsequent  to the
          periods to which such returns,  reports or  declarations  apply; or if
          any of such tax returns  have not been filed of if any such taxes have
          not been paid or so  reserved  for,  the  failure to so file or to pay
          would not in the aggregate or individually have a NCT Material Adverse
          Effect.  There are no unpaid  taxes  claimed  to be due by the  taxing
          authority  of any  jurisdiction,  and  the  officers  of NCT  have  no
          knowledge of, and know of no basis for, any such claim.

          v.  Certain  Transactions.  Except as set forth on Schedule  5(v),  in
          NCT's SEC Documents,  arms-length  transactions  pursuant to which NCT
          makes  payments in the ordinary  course of business upon terms no less
          favorable  than NCT could obtain from third parties and other than the
          grant  of  stock  options  disclosed  on  Schedule  5(c),  none of the
          officers,  directors,  or employees of NCT is presently a party to any
          transaction  with NCT (other than for services as employees,  officers
          and directors), including any contract, agreement or other arrangement
          providing  for the  furnishing  of  services to or by,  providing  for
          rental of real or personal property to or from, or otherwise requiring
          payments to or from any officer,  director or such employee or, to the
          knowledge of NCT, any corporation,  partnership, trust or other entity
          in which any officer, director, or any such employee has a substantial
          interest or is an officer, director, trustee or partner.

          w. Dilutive Effect.  NCT understands and acknowledges  that the number
          of Exchange  Shares issuable upon exchange of the Shares will increase
          in certain circumstances. NCT further acknowledges that its obligation
          to  issue  NCT  Common  Stock  upon  the  exchange  of the  Shares  in
          accordance   with  this   Agreement  is  absolute  and   unconditional
          regardless  of the dilutive  effect that such issuance may have on the
          ownership interests of other stockholders of NCT.

          x. Rights of First  Refusal.  NCT is not obligated to offer NCT Common
          Stock on a right of first  refusal basis or similar right to any third
          parties including,  but not limited to, current or former shareholders
          of NCT, underwriters, brokers, agents or other third parties.

          y. Investment  Company.  NCT is not, and is not controlled by or under
          common  control with an affiliate of, an "investment  company"  within
          the meaning of the Investment Company of Act of 1940, as amended.

          z. Disclosure. To the best of NCT's knowledge,  neither this Agreement
          nor the  Schedules  attached  hereto  furnished by or on behalf of NCT
          contain any untrue  statement of a material  fact or omit to state any
          material fact necessary in order to make the  statements  made therein
          not misleading.

          aa. Patents and  Trademarks.  NCT and each NCT Subsidiary  has, or has
          rights to use, all patents, patent applications, trademarks, trademark
          applications,  service marks,  trade names,  copyrights,  licenses and
          rights which are necessary for use in connection with its business, as
          currently  conducted and which the failure to so have would have a NCT
          Material Adverse Effect.

      6.    COVENANTS.

          a. Best  Efforts.  Each  party  shall use its best  efforts  to timely
          satisfy  each of the  conditions  precedent  to Closing as provided in
          Sections 8, 9 and 10 of this Agreement.

          b. Form D. ConnectClearly  agrees to file a Form D with respect to the
          Securities as required under  Regulation D promulgated  under the 1933
          Act and to provide a copy  thereof to each Buyer  promptly  after such
          filing.

     NCT agrees to file a Form D with respect to the Exchange Shares as required
under Regulation D promulgated  under the 1933 Act and to provide a copy thereof
to each Buyer promptly after such filing.  NCT shall, on or before an applicable
Exchange  Date (as  defined in Section 2 above),  take such action as the Buyers
shall  reasonably  request to qualify the sale of Exchange  Shares to the Buyers
for exemption from  applicable  securities laws of the state of Delaware and New
York, or other  applicable  "Blue Sky" laws,  and shall provide  evidence of any
such action so taken to the Buyers as soon as practicable following the Exchange
Date.

          c.  Until the  earlier of (i) the date as of which the  Investors  (as
          that term is defined in the  Registration  Rights  Agreement) may sell
          all of the Exchange Shares without restriction pursuant to Rule 144(k)
          promulgated  under the 1933 Act (or  successor  thereto),  or (ii) the
          date on which the  Investors  shall have sold all the Exchange  Shares
          (the "Registration Period"), NCT shall file all reports required to be
          filed  with  the SEC  pursuant  to the 1934  Act,  and NCT  shall  not
          terminate  its status as an issuer  required to file reports under the
          1934 Act even if the 1934 Act or the rules and regulations  thereunder
          would otherwise permit such termination.

          d. Use of Proceeds.  ConnectClearly shall use all of the proceeds from
          the sale of the Securities purchased hereunder for working capital and
          general corporate purposes and not for the satisfaction of any portion
          of  ConnectClearly  borrowings  outside the normal course of business.
          While Shares remain outstanding,  ConnectClearly shall not satisfy any
          obligation or liability of any kind,  including,  without  limitation,
          those owed to a shareholder, officer or director of ConnectClearly, or
          redeem ConnectClearly equity or equity-equivalent securities.

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

          f.  Reservation of Shares.  NCT shall take all action necessary to, at
          all times,  have  authorized and reserved for the purpose of issuance,
          no less than 115% of the number of shares of NCT Common  Stock  needed
          to  provide  for the  issuance  of the  Exchange  Shares to effect the
          exchange of the Shares then issued and outstanding.

          g.  Listings.  NCT shall cause the Exchange  Shares to be approved for
          quotation  on the OTC  Bulletin  Board or if NCT  Common  Stock is not
          currently listed thereon, on the national exchange on which such stock
          is currently  listed,  and NCT shall maintain the quotation of its NCT
          Common Stock on such market.  NCT shall promptly provide to each Buyer
          copies of any notices it receives regarding the continued  eligibility
          of NCT Common Stock for trading on the facility on which it is listed.

          h.   Expenses.   Except  as  provided  in  Section   12(p),   each  of
          ConnectClearly,  NCT and the Buyer  shall  pay all costs and  expenses
          incurred   by  such  party  in   connection   with  the   negotiation,
          investigation,  preparation, execution and delivery of the Transaction
          Documents and the NCT Transaction Documents.

          i. [INTENTIONALLY LEFT BLANK]

          j.  Corporate  Existence.  So  long  as any of the  Securities  remain
          outstanding,   ConnectClearly   shall  not   directly  or   indirectly
          consummate any merger, reorganization,  restructuring,  consolidation,
          sale of all or  substantially  all of  ConnectClearly's  assets or any
          similar transaction or related transactions (each such transaction,  a
          "Sale of ConnectClearly")  except if the surviving or successor entity
          in such transaction  expressly assumes,  in writing,  ConnectClearly's
          obligations  hereunder and under any other  agreements and instruments
          entered into or delivered by ConnectClearly in connection herewith.

          k. Transactions With Affiliates.  So long as (i) any of the Securities
          are outstanding or (ii) any Buyer owns Shares with an aggregate Stated
          Value equal to or greater than  [$250,000],  ConnectClearly  shall not
          enter into,  amend,  modify or supplement any agreement,  transaction,
          commitment, or arrangement with any of its officers, directors, person
          who were  officers or  directors  at any time during the  previous two
          years,  stockholders  who  beneficially  own 5% or more of the  Common
          Stock,  Affiliates,  any  individual  related by blood,  marriage,  or
          adoption to any such  individual  or with any entity in which any such
          entity or individual  owns a 5% or more  beneficial  interest  (each a
          "Related Party"), except for (a) customary employment arrangements and
          benefit programs on reasonable  terms (b) any agreement,  transaction,
          commitment,  or arrangement  on an arms-length  basis on terms no less
          favorable  than terms which would have been  obtainable  from a person
          other  than  such  Related  Party,  (c)  any  agreement,  transaction,
          commitment,  or  arrangement  which is  approved  by a majority of the
          disinterested  directors of  ConnectClearly.  For purposes hereof, any
          director who is also an officer of ConnectClearly or any subsidiary of
          ConnectClearly  shall not be a disinterested  director with respect to
          any  such   agreement,   transaction,   commitment,   or  arrangement.
          "Affiliate" for purposes  hereof means,  with respect to any person or
          entity, another person or entity that, directly or indirectly, (i) has
          a 5% or more equity interest in that person or entity,  (ii) has 5% or
          more common ownership with that person or entity, (iii) controls or is
          controlled by that person or entity,  or (iv) is under common  control
          with that  person or entity.  "Control"  or  "controls"  for  purposes
          hereof  means  that a  person  or  entity  has the  power,  direct  or
          indirect,  to  conduct  or govern the  policies  of another  person or
          entity.

          So long as (i) any Securities purchased pursuant to this Agreement are
          outstanding or (ii) any Buyer owns Exchange Shares with a market value
          equal to or greater  than  [$250,000],  NCT shall not, and shall cause
          each  of its  subsidiaries  not  to,  enter  into,  amend,  modify  or
          supplement,  or permit any subsidiary to enter into, amend,  modify or
          supplement any agreement, transaction, commitment, or arrangement with
          any of its or any subsidiary's  officers,  directors,  person who were
          officers  or  directors  at any time  during the  previous  two years,
          stockholders  who beneficially own 5% or more of the NCT Common Stock,
          Affiliates,  any individual related by blood, marriage, or adoption to
          any such  individual  or with any  entity in which any such  entity or
          individual owns a 5% or more beneficial interest (each an "NCT Related
          Party"),  except for (a) customary employment arrangements and benefit
          programs  on  reasonable   terms,  (b)  any  agreement,   transaction,
          commitment,  or arrangement  on an arms-length  basis on terms no less
          favorable  than terms which would have been  obtainable  from a person
          other than such NCT Related  Party,  (c) any  agreement,  transaction,
          commitment,  or  arrangement  which is  approved  by a majority of the
          disinterested  directors of NCT. For purposes hereof, any director who
          is also an  officer  of NCT or any  subsidiary  of NCT  shall not be a
          disinterested   director   with   respect   to  any  such   agreement,
          transaction, commitment, or arrangement.

          l. [Intentionally left Blank]

          m. No Buyer shall engage in "short  sales" of NCT Common Stock so long
          as such Buyer owns Shares; provided, however, that the foregoing shall
          not  prevent  any Buyer from  selling  any shares of NCT Common  Stock
          which  it is  otherwise  permitted  to  sell  pursuant  to  any  other
          agreement to which both NCT and such Buyer are parties.

          n. [INTENTIONALLY LEFT BLANK]

          o. Permitted Transfers of Shares. Notwithstanding any provision herein
          to the contrary,  (i) ConnectClearly  hereby consents to and agrees to
          register (A) any transfer of Shares by one Buyer to another Buyer, and
          agrees that no documentation  other than executed  transfer  documents
          shall be required for any such  transfer,  and (B) any transfer by any
          Buyer to an  Affiliate  of such  Buyer or to an  Affiliate  of another
          Buyer,  or any  transfer  among  any such  Affiliates,  provided  such
          transfer is otherwise in accordance  with applicable law and that such
          transferee  certifies  in  writing  to  ConnectClearly  that  it is an
          "accredited   investor"  (as  defined  in  Regulation   D).  Any  such
          transferee  shall  agree in  writing  to be bound by the terms of this
          Agreement  and shall have the rights of a Buyer  under this  Agreement
          and the Registration Rights Agreement; and (ii) NCT hereby consents to
          and agrees to register  (A) any  transfer  of  Exchange  Shares by one
          Buyer to another Buyer,  and agrees that no  documentation  other than
          executed  transfer  documents shall be required for any such transfer,
          and (B) any  transfer by any Buyer to an Affiliate of such Buyer or to
          an  Affiliate  of  another  Buyer,  or any  transfer  among  any  such
          Affiliates,  provided such  transfer is otherwise in  accordance  with
          applicable  law and that such  transferee  certifies in writing to NCT
          that it is an "accredited  investor" (as defined in Regulation D). Any
          such  transferee  shall  agree in  writing to be bound by the terms of
          this  Agreement  and  shall  have the  rights  of a Buyer  under  this
          Agreement and the Registration Rights Agreement.

          p. Stop Transfer Orders;  Suspension of Qualification.  ConnectClearly
          and NCT may not make any notation on their respective  records or give
          instructions  to any transfer agent of  ConnectClearly  or NCT, as the
          case may be, which enlarge the  restrictions  of transfer set forth in
          this  Agreement.  ConnectClearly  and  NCT  will  advise  the  Buyers,
          promptly after either of them receives  notice of issuance by the SEC,
          any state securities  commission or any other regulatory  authority of
          any stop order or of any order preventing or suspending the use of any
          offering of any  securities  of  ConnectClearly  and/or NCT, or of the
          suspension of the qualification of ConnectClearly  Common Stock and/or
          NCT Common  Stock for  offering  or sale in any  jurisdiction,  or the
          initiation of any proceeding for any such purpose.

          q.  Blue  Sky  Laws.  In  accordance  with  the  Registration   Rights
          Agreement,  NCT shall qualify the Exchange Shares under the securities
          or Blue Sky laws of such  jurisdictions  as the Buyers may  reasonably
          request and shall continue such qualification at all times through the
          third  anniversary  of the Closing Date,  unless a valid  exemption is
          otherwise available and applicable under such laws.

          r. Integration.  ConnectClearly and NCT shall not sell, offer for sale
          or  solicit  offers to buy or  otherwise  negotiate  in respect of any
          security (as defined in Section 2 of the Securities Act) that would be
          integrated with the offer or sale of the Shares or Exchange Shares, as
          the case may be, in a manner that would require the registration under
          the Securities Act of the sale of any or all of such securities to any
          Buyer.

          s. Certain Agreements. As long as any Buyer owns Shares, NCT shall not
          and shall  cause  ConnectClearly  not to,  without  the consent of the
          holders  of  all  of  the  Shares  then  outstanding,  (i)  amend  its
          certificate of incorporation,  bylaws or other charter documents so as
          to adversely affect any rights of any Buyer; (ii) repay, repurchase or
          offer to repay,  repurchase  or  otherwise  acquire  shares of capital
          stock in any  manner;  (iii)  issue any series of  preferred  stock or
          other  securities  with  rights  senior (in  respect of  liquidations,
          dividends,  preferences  and similar rights) to those of the Shares or
          the Exchange  Shares;  or (v) enter into any agreement with respect to
          any of the foregoing.

          t. Listing and  Reservation of Exchange  Shares;  Compliance with Law.
          (i) NCT  shall,  (a) take all steps  necessary  to cause the  Exchange
          Shares to be  approved  for listing on any other  national  securities
          exchange  or market  on which  NCT  Common  Stock is  listed,  and (b)
          provide to the Buyers evidence of such listing,  if applicable and (c)
          NCT shall  maintain  the  listing of NCT Common  Stock on at least one
          national securities exchange or market.

               (ii) NCT shall at all times  have  authorized  and  reserved  for
               issuance  upon  exchange of the Shares  purchased  hereunder  the
               number of Exchange Shares required to provide for the exchange of
               115% of the outstanding Shares.

               (iii) Until the earlier to occur of the fifth  anniversary of the
               Initial  Closing  Date or the second  anniversary  of the date no
               Shares purchased  hereunder  remained  outstanding (if all Shares
               are  exchanged),  (A) NCT will cause NCT Common Stock to continue
               to be registered  under  Sections  12(b) or 12(g) of the Exchange
               Act,  will comply in all respects  with its  reporting and filing
               obligations  under  such  Exchange  Act,  will  comply  with  all
               requirements related to any registration statement filed pursuant
               to this Agreement or the  Registration  Rights Agreement and will
               not  take  any  action  or  file  any  document  (whether  or not
               permitted by the  Securities Act or the Exchange Act or the rules
               and   regulations   thereunder)  to  terminate  or  suspend  such
               registration  or to terminate or suspend its reporting and filing
               obligations  under the Securities Act and Exchange Act, except as
               permitted  herein  and (B) NCT will take all  action  within  its
               power to continue  the listing or trading of NCT Common  Stock on
               the OTC Bulletin Board.

          u. Notice of Breaches.  (i) Each of  ConnectClearly,  NCT and the each
          Buyer shall give prompt  written notice to the other parties hereto of
          any  breach  of  any  representation,   warranty  or  other  agreement
          contained in this Agreement,  the other  Transaction  Documents or the
          other NCT Transaction Documents,  as well as any events or occurrences
          arising  after the date  hereof and prior to any Closing  Date,  which
          would reasonably be likely to cause any  representation or warranty or
          other agreement of such party, as the case may be, contained herein to
          be  incorrect  or  breached  as of  such  Closing  Date.  However,  no
          disclosure  by any party  pursuant to this Section  shall be deemed to
          cure any breach of any  representation,  warranty  or other  agreement
          contained herein or in the Registration Rights Agreement.

               (ii)    Notwithstanding   the   generality   of   this   Section,
               ConnectClearly  and NCT shall  promptly  notify each Buyer of any
               notice  or claim  (written  or oral)  that it  receives  from any
               lender  of   ConnectClearly   or  NCT  to  the  effect  that  the
               consummation of the  transactions  contemplated  hereby or by the
               other  Transaction   Documents  and  NCT  Transaction   Documents
               violates or would violate any written  agreement or understanding
               between  such lender and  ConnectClearly  or NCT, as the case may
               be,  and   ConnectClearly  and  NCT  shall  promptly  furnish  by
               facsimile  to  each  Buyer  a copy of any  written  statement  in
               support of or relating to such claim or notice.

               (iii)  The  default  by any  Buyer  of  any  of its  obligations,
               representations  or warranties under any Transaction  Document or
               any NCT  Transaction  Document shall not be imputed to, and shall
               have no effect upon,  any other Buyer or affect  ConnectClearly's
               or NCT's obligations  under the Transaction  Documents or the NCT
               Transaction  Documents  to  any  non-defaulting  Buyer  or to the
               defaulting Buyer with respect to any outstanding Shares purchased
               hereunder or Exchange Shares.

               (iv) Exchange Obligations of NCT. NCT covenants to convert Shares
               and to deliver the Exchange  Shares in accordance  with the terms
               and conditions and within the time period set forth herein.

     6A.  PIGGYBACK  REGISTRATION  RIGHTS.  If,  at any  time  when  Shares  are
     outstanding and there is no effective  registration  statement covering the
     Shares,  ConnectClearly  shall  determine  to  prepare  and  file  with the
     Securities  Exchange  Commission a  registration  statement  relating to an
     offering for its own account or the account of others under the  Securities
     Act of any of its  equity  securities,  other  than on Form S-4 or Form S-8
     (each as promulgated  under the Securities  Act) or their then  equivalents
     relating to equity  securities to be issued  solely in connection  with any
     acquisition  of any entity or  business  or equity  securities  issuable in
     connection   with   stock   option  or  other   employee   benefit   plans,
     ConnectClearly  shall send to each holder of Shares  written notice of such
     determination and, if within thirty (30) days after receipt of such notice,
     any such holder shall so request in writing,  (which  request shall specify
     the Shares intended to be disposed of by such holders), ConnectClearly will
     cause  the  registration  under  the  Securities  Act of all  Shares  which
     ConnectClearly  has been so  requested  to register  by the holder,  to the
     extent  requisite  to  permit  the  disposition  of  the  Shares  so  to be
     registered, provided that if at any time after giving written notice of its
     intention to register any securities and prior to the effective date of the
     registration   statement  filed  in  connection  with  such   registration,
     ConnectClearly  shall  determine for any reason not to register or to delay
     registration of such securities,  ConnectClearly may, at its election, give
     written notice of such determination to such holder and, thereupon,  (i) in
     the case of a  determination  not to  register,  shall be  relieved  of its
     obligation to register any Shares in connection with such registration, and
     (ii)  in the  case  of a  determination  to  delay  registering,  shall  be
     permitted to delay registering any Shares being registered pursuant to this
     Section  for the  same  period  as the  delay  in  registering  such  other
     securities. ConnectClearly shall include in such registration statement all
     or any part of such Shares such holder requests to be registered. The terms
     and  conditions  governing any and all  registrations  of Shares under this
     Section 6A, and the rights and  obligations  of the  Holders in  connection
     therewith,  shall be  substantially  similar  to the terms  and  conditions
     prescribed in the Registration Rights Agreement.

     7. TRANSFER AGENT INSTRUCTIONS.

          a. Prior to any  registration  of the Shares  under the 1933 Act,  all
          such  certificates  shall bear the  restrictive  legend  specified  in
          Section  3(g)  of  this  Agreement.  ConnectClearly  warrants  that no
          instruction  and stop transfer  instructions to give effect to Section
          3(f) hereof (prior to  registration of such shares under the 1933 Act)
          will be given by  ConnectClearly  to its  transfer  agent and that the
          Shares shall otherwise be freely transferable on the books and records
          of  ConnectClearly  as and to the extent  provided in this  Agreement.
          Nothing  in this  Section  7  shall  affect  in any  way  the  Buyers'
          obligations  and agreement to comply with all  applicable  federal and
          state  securities laws upon resale of the Shares.  If a Buyer provides
          ConnectClearly with an opinion of counsel (which may apply to multiple
          Buyers), in customary form, that registration for resale by such Buyer
          of  any  of  the   Shares  is  not   required   under  the  1933  Act,
          ConnectClearly  shall permit the transfer,  and promptly  instruct its
          transfer agent to issue one or more  certificates  in such name and in
          such  denominations  as  specified by the Buyer free from such legend.
          ConnectClearly  acknowledges  that a breach  by it of its  obligations
          hereunder  will cause  irreparable  harm to the Buyer by vitiating the
          intent  and   purpose   of  the   transaction   contemplated   hereby.
          Accordingly,  ConnectClearly acknowledges that the remedy at law for a
          breach of its obligations  under this Section 7 will be inadequate and
          agrees,   in  the   event  of  a  breach  or   threatened   breach  by
          ConnectClearly  of the  provisions  of this  Section 7, that the Buyer
          shall be entitled,  in addition to all other available remedies, to an
          injunction restraining any breach and requiring immediate issuance and
          transfer,  without the necessity of showing  economic loss and without
          any bond or other security being required.

          b. NCT shall issue  irrevocable  instructions to its transfer agent to
          issue  certificates,  registered  in  the  name  of the  Buyer  or its
          respective  nominee(s),  for the  Exchange  Shares in such  amounts as
          specified  from time to time by the Buyer to NCT upon  exchange of the
          Shares for NCT Common  Stock (the "NCT's  Irrevocable  Transfer  Agent
          Instructions"). Prior to registration of the Exchange Shares under the
          1933 Act,  all such  certificates  shall bear the  restrictive  legend
          specified in Section  3(g) of this  Agreement.  NCT  warrants  that no
          instruction  other than the  Irrevocable  Transfer Agent  Instructions
          referred to in this Section 7, and stop transfer  instructions to give
          effect to Section 3(f) hereof  (prior to  registration  of such shares
          under  the 1933 Act)  will be given by NCT to its  transfer  agent and
          that the Exchange Shares shall otherwise be freely transferable on the
          books  and  records  of NCT as and to  the  extent  provided  in  this
          Agreement  and the  Registration  Rights  Agreement.  Nothing  in this
          Section  7  shall  affect  in any  way  the  Buyer's  obligations  and
          agreement to comply with all applicable  federal and state  securities
          laws upon resale of the  Exchange  Shares.  If the Buyer  provides NCT
          with an  opinion  of  counsel,  reasonably  satisfactory  in form  and
          substance to NCT, that  registration for resale by the Buyer of any of
          the  Exchange  Shares is not  required  under the 1933 Act,  NCT shall
          permit the transfer and promptly  instruct its transfer agent to issue
          one or more  certificates  in such name and in such  denominations  as
          specified by the Buyer, free from such legend. NCT acknowledges that a
          breach by it of its obligations  hereunder will cause irreparable harm
          to the Buyer by  vitiating  the intent and purpose of the  transaction
          contemplated hereby. Accordingly,  NCT acknowledges that the remedy at
          law for a breach  of its  obligations  under  this  Section  7 will be
          inadequate and agrees,  in the event of a breach or threatened  breach
          by NCT of the  provisions  of this  Section 7, that the Buyer shall be
          entitled,   in  addition  to  all  other  available  remedies,  to  an
          injunction restraining any breach and requiring immediate issuance and
          transfer,  without the necessity of showing  economic loss and without
          any bond or other security being required.

      8.    CONDITIONS PRECEDENT TO CONNECTCLEARLY'S OBLIGATION TO SELL.

     The obligation of ConnectClearly  hereunder to issue and sell the Shares to
the Buyers at the  Closing is subject  to the  satisfaction,  at or before  each
Closing  Date,  of  each  of  the  following  conditions,  provided  that  these
conditions may be waived by ConnectClearly at any time in its sole discretion:

          a. The Buyers shall have executed  this  Agreement,  the  Registration
          Rights Agreement and delivered same to ConnectClearly.

          b. NCT shall have executed this Agreement and the Registration  Rights
          Agreement and delivered same to ConnectClearly.

          c. The Buyers shall have  delivered to  ConnectClearly  the applicable
          Purchase  Price for the  Shares  being  purchased  by the Buyer at the
          Closing in United  States  dollars  by wire  transfer  of  immediately
          available  funds  pursuant  to  the  wire  instructions   provided  by
          ConnectClearly.  The amount of any such wire transfer shall be reduced
          by the  outstanding  amount of unpaid  principle  and interest due and
          owing  under any  promissory  note issued by  ConnectClearly  which is
          surrendered to ConnectClearly.

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

     9. CONDITIONS PRECEDENT TO the BUYER'S OBLIGATIONS TO PURCHASE.

          a. Initial Closing. The obligation of each Buyer hereunder to purchase
          the  Initial  Shares  at  the  Initial   Closing  is  subject  to  the
          satisfaction,  at or before the Initial  Closing  Date, of each of the
          following  conditions,  provided that these  conditions  may be waived
          with  respect  to  solely  to  such  Buyer  at any  time  in its  sole
          discretion:

               i.  ConnectClearly and NCT shall have executed this Agreement and
               delivered same to Buyers.

               ii. NCT and  ConnectClearly  shall have executed the Registration
               Rights Agreement and delivered same to the Buyers.

               iii. NCT Common Stock shall be  authorized  for  quotation on the
               OTC Bulletin  Board,  over-the-counter  market,  AMEX, the NASDAQ
               Small  Cap or  National  Market or The New York  Stock  Exchange,
               Inc.,  and  trading  in NCT  Common  Stock  shall  not have  been
               suspended for any reason.

               iv. The representations and warranties of ConnectClearly shall be
               true and correct in all material  respects  (except to the extent
               that  any of  such  representations  and  warranties  is  already
               qualified as to  materiality  in Section 4 above,  in which case,
               such  representations  and  warranties  shall be true and correct
               without further qualification) as of the date when made and as of
               the Initial  Closing Date as though made at that time (except for
               representations  and warranties that speak as of a specific date)
               and ConnectClearly  shall have performed,  satisfied and complied
               in all  material  respects  with the  covenants,  agreements  and
               conditions required by this Agreement to be performed,  satisfied
               or  complied  with by  ConnectClearly  at or prior to the Initial
               Closing  Date.  The  Buyers  shall have  received a  certificate,
               executed  by  the  President  or  Chief   Financial   Officer  of
               ConnectClearly,  dated as of the  Initial  Closing  Date,  to the
               foregoing effect.

               v. The  representations  and  warranties of NCT shall be true and
               correct in all material  respects  (except to the extent that any
               of such representations and warranties is already qualified as to
               materiality   in   Section   5  above,   in  which   case,   such
               representations  and warranties shall be true and correct without
               further  qualification)  as of the date  when  made and as of the
               Initial  Closing  Date as though  made at that time  (except  for
               representations  and warranties that speak as of a specific date)
               and NCT shall  have  performed,  satisfied  and  complied  in all
               material  respects with the covenants,  agreements and conditions
               required by this Agreement to be performed, satisfied or complied
               with by  ConnectClearly  at or prior to the Initial Closing Date.
               The Buyer  shall have  received a  certificate,  executed  by the
               Chief  Financial  Officer of NCT, dated as of the Initial Closing
               Date, to the foregoing effect.

               vi. Since the date of the financial  statements included in NCT's
               Quarterly  Report  on Form 10-Q or  Annual  Report on Form  10-K,
               whichever  is more  recent,  last filed prior to the date of this
               Agreement,  no event which had a Material Adverse Effect,  an NCT
               Material  Adverse Effect and/or a material  adverse change in the
               financial  condition  of NCT shall have  occurred  (for  purposes
               hereof changes in the market price of the NCT Common Stock may be
               considered as a factor in determining  whether there has occurred
               an event  which has had a  Material  Adverse  Effect or whether a
               material adverse change has occurred).

               vii. No  statute,  rule,  regulation,  executive  order,  decree,
               ruling  or   injunction   shall  have  been   enacted,   entered,
               promulgated or endorsed by any court or governmental authority of
               competent jurisdiction which prohibits the consummation of any of
               the transactions  contemplated by this Agreement, the Warrants or
               the Registration Rights Agreement.

               viii. The Buyer shall have received the opinion of NCT's counsel,
               dated as of the  Initial  Closing  Date,  in form  and  substance
               reasonably  satisfactory to the Buyers and in  substantially  the
               form of Exhibit 3 attached hereto.

               ix. ConnectClearly shall have executed and delivered to the Buyer
               (or the Buyer's designee) (i) the Initial  ConnectClearly  Common
               Stock  Certificates  (in such  denominations  as the Buyer  shall
               request) for the Initial Shares being  purchased by the Buyers at
               the Initial Closing and (ii) warrant certificate(s)  representing
               the Initial  Warrants,  registered in the name of such Buyer,  in
               form satisfactory to the Buyer.

               x. On or prior to the Initial Closing Date,  ConnectClearly shall
               have duly  reserved  the number of  Exchange  Shares and  Warrant
               Shares  required by this  Agreement  to be reserved  for issuance
               upon exchange of the Shares and upon exercise of the Warrants.

               xi. NCT's Irrevocable  Transfer Agent  Instructions,  in form and
               substance  satisfactory to the Buyers,  shall have been delivered
               to and acknowledged in writing by NCT's transfer agent.

          b. Second Closing.  The obligation of each Buyer hereunder to purchase
          the  Second  Tranche  Shares at the  Second  Closing is subject to the
          satisfaction,  at or before the Second  Closing  Date,  of each of the
          following  conditions,  provided that these  conditions  may be waived
          with  respect  to  solely  to  such  Buyer  at any  time  in its  sole
          discretion:

               i. The Initial Closing shall have occurred.

               ii. The  registration  statement  with  respect  to the  Exchange
               Shares shall have been declared  effective  under the  Securities
               Act by the SEC,  shall not be  subject  to any stop  order or any
               suspension.

               iii. NCT Common Stock shall be  authorized  for  quotation on the
               OTC Bulletin  Board,  over-the-counter  market,  AMEX, the NASDAQ
               Small  Cap or  National  Market or The New York  Stock  Exchange,
               Inc.,  and  trading  in NCT  Common  Stock  shall  not have  been
               suspended for any reason.

               iv. The representations and warranties of ConnectClearly shall be
               true and correct in all material  respects  (except to the extent
               that  any of  such  representations  and  warranties  is  already
               qualified as to  materiality  in Section 4 above,  in which case,
               such  representations  and  warranties  shall be true and correct
               without further qualification) as of the date when made and as of
               the Second  Closing  Date as though made at that time (except for
               representations  and warranties that speak as of a specific date)
               and ConnectClearly  shall have performed,  satisfied and complied
               in all  material  respects  with the  covenants,  agreements  and
               conditions required by this Agreement to be performed,  satisfied
               or  complied  with by  ConnectClearly  at or prior to the  Second
               Closing  Date.  The  Buyers  shall have  received a  certificate,
               executed  by  the  President  or  Chief   Financial   Officer  of
               ConnectClearly,  dated  as of the  Second  Closing  Date,  to the
               foregoing effect.

               v. The  representations  and  warranties of NCT shall be true and
               correct in all material  respects  (except to the extent that any
               of such representations and warranties is already qualified as to
               materiality   in   Section   5  above,   in  which   case,   such
               representations  and warranties shall be true and correct without
               further  qualification)  as of the date  when  made and as of the
               Second  Closing  Date as  though  made at that time  (except  for
               representations  and warranties that speak as of a specific date)
               and NCT shall  have  performed,  satisfied  and  complied  in all
               material  respects with the covenants,  agreements and conditions
               required by this Agreement to be performed, satisfied or complied
               with by  ConnectClearly  at or prior to the Second  Closing Date.
               The Buyer  shall have  received a  certificate,  executed  by the
               Chief  Financial  Officer of NCT,  dated as of the Second Closing
               Date, to the foregoing effect.

               vi. Since the date of the financial  statements included in NCT's
               Quarterly  Report  on Form 10-Q or  Annual  Report on Form  10-K,
               whichever  is more  recent,  last filed prior to the date of this
               Agreement,  no event which had a Material Adverse Effect,  an NCT
               Material  Adverse Effect and/or a material  adverse change in the
               financial  condition  of NCT shall have  occurred  (for  purposes
               hereof changes in the market price of the NCT Common Stock may be
               considered as a factor in determining  whether there has occurred
               an event  which has had a  Material  Adverse  Effect or whether a
               material adverse change has occurred).

               vii. No  statute,  rule,  regulation,  executive  order,  decree,
               ruling  or   injunction   shall  have  been   enacted,   entered,
               promulgated or endorsed by any court or governmental authority of
               competent jurisdiction which prohibits the consummation of any of
               the transactions  contemplated by this Agreement, the Warrants or
               the Registration Rights Agreement.

               viii. The Buyer shall have received the opinion of NCT's counsel,
               dated  as of the  Second  Closing  Date,  in form  and  substance
               reasonably  satisfactory to the Buyers and in  substantially  the
               form of Exhibit 3 attached hereto.

               ix. ConnectClearly shall have executed and delivered to the Buyer
               (or the Buyer's  designee) (i) the Second  ConnectClearly  Common
               Stock  Certificates  (in such  denominations  as the Buyer  shall
               request) for the Second  Tranche  Shares  being  purchased by the
               Buyers at the  Second  Closing  and (ii)  warrant  certificate(s)
               representing the Second Tranche Warrants,  registered in the name
               of such Buyer, in form satisfactory to the Buyer.

               x. NCT's  Irrevocable  Transfer Agent  Instructions,  in form and
               substance  satisfactory to the Buyers,  shall have been delivered
               to and acknowledged in writing by NCT's transfer agent.

               xi. No Change of Control  shall have  occurred  since the Initial
               Closing Date.  "Change of Control" means the occurrence of any of
               (i) an  acquisition  after the date  hereof by an  individual  or
               legal  entity  or  "group"  (as  described  in  Rule   13d5(b)(1)
               promulgated  under the  Exchange  Act) of in excess of 50% of the
               voting   securities   of   ConnectClearly   and/or  NCT,  (ii)  a
               replacement of more than one-half of the members of the Boards of
               Directors of  ConnectClearly  and/or NCT which is not approved by
               those  individuals who are members of such Boards of Directors on
               the date hereof in one or a series of related transactions, (iii)
               the  merger of  ConnectClearly  and/or  NCT with or into  another
               entity,  consolidation or sale of all or substantially all of the
               assets of ConnectClearly and/or NCT in one or a series of related
               transactions or (iv) the execution by  ConnectClearly  and/or NCT
               of an agreement to which ConnectClearly  and/or NCT is a party or
               by which it is bound,  providing  for any of the events set forth
               above in (i), (ii) or (iii).

     10. CONDITIONS PRECEDENT TO NCT'S OBLIGATION TO EXCHANGE

     The obligation of NCT hereunder to issue the Exchange  Shares to a Buyer on
an Exchange  Date is subject the  occurrence  of the Initial  Closing  Date with
respect to the Initial  Shares and the Second  Closing  Date with respect to the
Second Tranche Shares.

     11. INDEMNIFICATION.

          a.  By  NCT  and  ConnectClearly.  In  consideration  of  the  Buyers'
          execution and delivery of this Agreement and acquisition of the Shares
          hereunder,  and in addition to all of ConnectClearly's and NCT's other
          obligations under this Agreement,  ConnectClearly and NCT, jointly and
          severally,  shall  defend,  protect,  indemnify and hold harmless each
          Buyer and each  other  holder of the  Shares  and/or  Exchange  Shares
          (collectively,  the  "Indemnitees")  from  and  against  any  and  all
          actions,  causes of action, suits, claims,  losses, costs,  penalties,
          fees,  liabilities and damages,  and expenses in connection  therewith
          (irrespective  of whether any such Indemnitee is a party to the action
          for  which   indemnification   hereunder  is  sought),  and  including
          reasonable   attorneys'  fees  and  disbursements   (the  "Indemnified
          Liabilities") incurred by the Indemnitees or any of them in connection
          with or as a  result  of any  matter  referred  to in the  Transaction
          Documents  and/or the NCT Transaction  Documents,  including,  but not
          limited to: (a) any  misrepresentation or breach of any representation
          or  warranty  made by  ConnectClearly  and/or  NCT in the  Transaction
          Documents   and/or  the  NCT   Transaction   Documents  or  any  other
          certificate, instrument or document contemplated hereby or thereby; or
          (b)  any  breach  of  any   covenant,   agreement  or   obligation  of
          ConnectClearly  and/or  NCT  contained  in the  Transaction  Documents
          and/or  the  NCT  Transaction  Documents  or  any  other  certificate,
          instrument  or  document  contemplated  hereby or  thereby;  provided,
          however, that this Section 11 shall not apply to the extent that it is
          finally  judicially  determined  that such actions,  causes of action,
          suits,  claims,  losses,  costs,  penalties,   fees,  liabilities  and
          damages, and expenses in connection therewith resulted solely from the
          gross  negligence  or bad faith of the  Buyers.  If for any reason the
          foregoing  indemnification  is unavailable to one or more Buyers or is
          insufficient to hold any such Indemnitee harmless, then ConnectClearly
          and NCT shall  contribute  to the amount paid or payable by such Buyer
          or Buyers  as a result  of such  actions,  causes  of  action,  suits,
          claims, losses, costs,  penalties,  fees, liabilities and damages, and
          expenses in such  proportion as is appropriate to reflect the relative
          economic  interests  of  ConnectClearly  and NCT and their  respective
          shareholders  on the one hand and the  Buyers on the other hand in the
          matters  contemplated  by  the  Transaction   Documents  and  the  NCT
          Transaction  Documents as well as the relative fault of ConnectClearly
          and NCT and the Buyers with respect to such actions, causes of action,
          suits,  claims,  losses,  costs,  penalties,   fees,  liabilities  and
          damages, and expenses and any other relevant equitable considerations.
          The   reimbursement,   indemnity  and   contribution   obligations  of
          ConnectClearly  and NCT under this  paragraph  shall be in addition to
          any liability which  ConnectClearly  and NCT may otherwise have, shall
          extend  upon the same terms and  conditions  to any  Affiliate  of the
          Buyers and the partners,  directors, agents, employees and controlling
          persons  (if  any),  as the case may be,  of the  Buyers  and any such
          Affiliate,  and shall be binding  upon and inure to the benefit of any
          successors,   assigns,   heirs   and   personal   representatives   of
          ConnectClearly,  NCT,  the  Buyers,  any such  Affiliate  and any such
          Person.  ConnectClearly and NCT also agree that neither the Buyers nor
          any of such  Affiliates,  partners,  directors,  agents,  employees or
          controlling persons shall have any liability to ConnectClearly and NCT
          or  any  Person   asserting  claims  on  behalf  of  or  in  right  of
          ConnectClearly  and/or  NCT in  connection  with or as a result of any
          matter  referred to in this Agreement  except to the extent that it is
          finally  judicially  determined  that  any  losses,  claims,  damages,
          liabilities or expenses incurred by  ConnectClearly  and/or NCT result
          solely from the gross negligence or bad faith of, or knowing breach of
          this Agreement by, the Buyers. Promptly after receipt by the Buyers or
          any Affiliate,  partners, directors, agents, employees and controlling
          persons,  as the  case  may  be,  of  notice  of any  claim  or  other
          commencement  of any  action  in  respect  of which  indemnity  may be
          sought,  such party will notify  ConnectClearly  and NCT in writing of
          the receipt or commencement  thereof and  ConnectClearly and NCT shall
          have  the  right  to  assume  the  defense  of such  claim  or  action
          (including the employment of counsel  reasonably  satisfactory  to the
          indemnified  parties  and the  payment  of fees and  expenses  of such
          counsel).  The indemnified  party shall cooperate with  ConnectClearly
          and NCT and their counsel in the defense of such claim or action.  The
          Buyers understand that  ConnectClearly and NCT shall not in connection
          with any one such  claim  or  action  or  separate  but  substantially
          similar related claims or actions in the same jurisdiction arising out
          of the same general  allegations or  circumstances,  be liable for the
          reasonable  fees  and  expenses  of more  than  one  separate  firm of
          attorneys for all of the indemnified parties unless the defense of one
          indemnified   party  is  unique  or  separate  from  that  of  another
          indemnified  party or one or more legal  defenses are  available to an
          indemnified party but not to other indemnified  parties subject to the
          same  claim or  action.  In the  event  ConnectClearly  and NCT do not
          promptly  assume the  defense of a claim or  action,  the  indemnified
          parties shall have the right to employ counsel reasonably satisfactory
          to ConnectClearly,  at ConnectClearly's  expense, to defend such claim
          or action.  The  indemnified  party shall not admit any liability with
          respect to the claim or action or settle, compromise, pay or discharge
          the same without the prior written consent of  ConnectClearly  and NCT
          so long as they are  reasonably  contesting  or defending  the same in
          good faith.  ConnectClearly  and NCT shall not  compromise,  settle or
          discharge  any  claim  or  action  without  the  Buyers'  consent,  as
          applicable,  which consent will not be unreasonably  withheld,  unless
          there is no finding or admission  of any  violation of any law against
          the indemnified  party and the sole relief is monetary damages paid in
          full by  ConnectClearly  and NCT.  Any  right  to  trial by jury  with
          respect to any action or proceeding arising in connection with or as a
          result of either  our  engagement  or any matter  referred  to in this
          Agreement is hereby waived by the parties  hereto.  The  provisions of
          this Section 11 shall  survive any  termination  or  completion of the
          Transaction Documents and the NCT Transaction Documents.

          b.  By the  Buyers.  Each  Buyer,  severally  and not  jointly,  shall
          indemnify each of ConnectClearly  and NCT from and against any and all
          actions,  causes of action, suits, claims,  losses, costs,  penalties,
          fees,  liabilities and damages,  and expenses in connection  therewith
          (including reasonable  attorneys' fees and disbursements)  incurred by
          them in connection  with or as a result of such Buyer's  breach of any
          representation  or  warranty  made by such  Buyer  in the  Transaction
          Documents and the NCT Transaction Documents.

          c. Limitation of Liability. No Buyer shall be liable to ConnectClearly
          or NCT pursuant to this Section 11 in an aggregate amount greater than
          the ratable  amount of the Purchase  Price  relating to the Securities
          purchased by such Buyer. ConnectClearly and NCT shall not be liable to
          the Buyers pursuant to this Section 11 for any amount in excess of the
          aggregate  Purchase  Price. No party may seek to limit their liability
          pursuant  to this  subsection  11(c) in the event the  liability  such
          party seeks to limit arises from (i) such  party's  knowing or willful
          misconduct or gross negligence or (ii) in the case of  indemnification
          by NCT or  ConnectClearly,  a third party claim or governmental  claim
          arising from NCT or ConnectClearly's violation or alleged violation of
          federal or state securities laws.

     12. GOVERNING LAW, MISCELLANEOUS.

          a. GOVERNING  LAW. THIS  AGREEMENT  SHALL BE GOVERNED BY AND CONSTRUED
          AND  ENFORCED  IN  ACCORDANCE  WITH THE LAWS OF THE STATE OF NEW YORK,
          WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF.

          b. Consent to Jurisdiction.  (1) The parties  expressly consent to the
          exclusive jurisdiction and venue of the federal courts whose districts
          encompass  any part of the  City of New  York,  New York or the  state
          courts of the State of New York  sitting in the City of New York,  New
          York, for the  adjudication  of any civil action related to or arising
          out of, in whole or in part,  this  Agreement,  the other  Transaction
          Documents and the other NCT Transaction Documents.

               (2) In connection  with any dispute between  ConnectClearly,  NCT
               and/or any Buyer related to, connected with or arising out of, in
               whole  or in  part,  the  Transaction  Documents  and/or  the NCT
               Transaction Documents,  the prevailing party shall be awarded all
               reasonable  attorneys' fees and expenses  incurred by it. In that
               connection,  fees  and  expenses  actually  paid  by a  party  in
               connection  with the  litigation of any dispute shall be presumed
               reasonable.

               (3) In the event that any Buyer becomes  involved in any capacity
               in any action,  proceeding or investigation brought by or against
               any person,  including  shareholders of ConnectClearly or NCT, in
               connection  with or as a result of any matter  referred to in the
               Transaction  Documents  and/or  the  NCT  Transaction  Documents,
               ConnectClearly  will  reimburse such Buyer for its legal fees and
               expenses  and  other   expenses   (including   the  cost  of  any
               investigation and preparation)  incurred in connection therewith;
               provided,  however,  that if at the  conclusion  of such  action,
               proceeding  or  investigation  it  shall  be  finally  judicially
               determined by a court of competent  jurisdiction  that  indemnity
               for such fees and expenses is contrary to law, or that a judgment
               adverse to the Buyer is entered,  then in that event,  such party
               and/or any other person having received such advances of fees and
               expenses  shall  reimburse  ConnectClearly  in full  for the sums
               advanced.

          c.  Waiver of Jury  Trial.  (1) The  parties  hereto  each waive their
          respective  rights  to a trial by jury of any claim or cause of action
          based upon or arising out of or related to the  Transaction  Documents
          and/or the NCT Transaction Documents, or the transactions contemplated
          by the Transaction Documents and/or the NCT Transaction Documents,  in
          any action,  proceeding  or other  litigation  of any type  brought by
          either of the  parties  against  the other,  whether  with  respect to
          contract claims,  tort claims,  or otherwise.  The parties hereto each
          agree that any such claim or cause of action shall be tried by a court
          trial  without a jury.  Without  limiting the  foregoing,  the parties
          further agree that their respective right to a trial by jury is waived
          by operation of this Section 12(c) as to any action,  counterclaim  or
          other  proceeding  which seeks,  in whole or in part, to challenge the
          validity or  enforceability of any of the Transaction  Documents,  the
          NCT  Transaction  Documents or any  provision  hereof or thereof.  The
          waiver shall apply to any subsequent amendments, renewals, supplements
          or  modifications  to any of the Transaction  Documents and/or the NCT
          Transaction Documents.

               (2) The  provisions  of this  Section  12(c)  shall  survive  any
               termination  or completion of the  Transaction  Documents and the
               NCT Transaction Documents.

          d.  Counterparts.  This  Agreement  may be  executed  in three or more
          identical  counterparts,  all of which  when taken  together  shall be
          considered one and the same agreement and shall become  effective when
          counterparts have been signed by each party and delivered to the other
          parties.  All of the  signature  pages of this  Agreement  when  taken
          together  shall be  considered  one and the same  agreement  and shall
          become effective when  counterparts have been signed by each party and
          delivered to the other  party,  it being  understood  that all parties
          need not sign the same counterpart. In the event that any signature is
          delivered by facsimile  transmission,  such  signature  shall create a
          valid  and  binding  obligation  of the party  executing  (or on whose
          behalf such  signature is  executed)  the same with the same force and
          effect as if such facsimile signature page were an original thereof.

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

          f. Severability.  If any term,  provision,  covenant or restriction of
          this Agreement is held to be illegal,  void,  invalid or unenforceable
          in any  jurisdiction,  such invalidity or  unenforceability  shall not
          affect  the  validity  or  enforceability  of the  remainder  of  this
          Agreement in that  jurisdiction or the validity or  enforceability  of
          any provision of this Agreement in any other jurisdiction.

          g. Entire Agreement,  Amendments.  This Agreement supersedes all other
          prior oral or written  agreements  between the Buyer,  ConnectClearly,
          NCT, their  Affiliates and persons acting on their behalf with respect
          to  the  matters  discussed   herein,   and  this  Agreement  and  the
          instruments  referenced herein contain the entire understanding of the
          parties  with  respect to the matters  covered  herein and,  except as
          specifically  set forth herein,  neither  ConnectClearly,  NCT nor any
          Buyer makes any representation, warranty, covenant or undertaking with
          respect to such matters.  No provision of this Agreement may be waived
          or amended other than by an  instrument  in writing  signed by each of
          the  parties  hereto.  No waiver 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 or thereof,  nor shall any
          delay or  omission  of any party to exercise  any right  hereunder  or
          thereunder  in any  manner  impair  the  exercise  of any  such  right
          accruing to it thereafter.

          h. Notices.  Any notices,  consents,  waivers, or other communications
          required or  permitted  to be given under the terms of this  Agreement
          must be in writing  and will be deemed to have been  delivered  on the
          earlier of (i) receipt, when delivered personally;  (ii) receipt, when
          sent by facsimile,  provided a copy is mailed by U.S.  certified mail,
          return  receipt  requested;  (iii)  three (3) days after being sent by
          U.S.  certified  mail,  return  receipt  requested;  (iv)  the date of
          transmission,  if such  notice  or  communication  is  delivered  on a
          Business Day via facsimile to the facsimile telephone number specified
          below prior to 5:00 p.m., New York City time, or (v) one (1) day after
          deposit with a nationally  recognized  overnight delivery service,  in
          each case  properly  addressed  to the party to receive the same.  The
          addresses and facsimile numbers for such communications shall be:

      If to NCT   :           20 Ketchum Street
                              Westport, Connecticut 06880
                              Attention: Chief Financial Officer

                              Telephone:  (203) 226-4447
                              Facsimile:  (203) 226-4338

      With a copy to:         William P. O'Neill, Esq.
                              Crowell & Moring LLP
                              1001 Pennsylvania Avenue, NW, 10th floor
                              Washington, DC  20004-2595

                              Telephone:  (202) 624-2603
                              Facsimile:  (202) 628-5116

      If to ConnectClearly:   20 Ketchum Street
                              Westport, Connecticut 06880
                              Attention: Treasurer

                              Telephone:  (203) 226-4447
                              Facsimile:  (203) 226-4338


      With a copy to:         William P. O'Neill, Esq.
                              Crowell & Moring LLP
                              1001 Pennsylvania Avenue, NW, 10th floor
                              Washington, DC  20004-2595

                              Telephone:  (202) 624-2603
                              Facsimile:  (202) 628-5116


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

          i.  Successors and Assigns.  This Agreement  shall be binding upon and
          inure to the benefit of the parties  hereto and their  successors  and
          permitted  assigns.  NCT and/or  ConnectClearly  may not  assign  this
          Agreement,  or any rights or obligations  hereunder  without the prior
          written  consent of the Buyers.  Each Buyer may assign this Agreement,
          or any rights or  obligations  hereunder  (i) to its  Affiliates or to
          another  Buyer without the prior  written  consent of  ConnectClearly,
          (ii)  to  any  other  person  with  the  prior   written   consent  of
          ConnectClearly, such consent not to be unreasonably withheld and (iii)
          to a permitted  transferee of the Shares or the Exchange Shares to the
          extent permitted by applicable law. This provision shall not limit the
          Buyer's  right to transfer  securities  or  transfer or assign  rights
          under any Registration Rights Agreement to which it is a party.

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

          k. Survival.  Unless this Agreement is terminated under Section 12(n),
          the  representations  and  warranties of  ConnectClearly,  NCT and the
          Buyer  contained in Sections 3, 4 and 5 shall  survive for a period of
          three (3) years from the Closing. Any covenants or agreements relating
          to the Shares or Exchange Shares shall expire only when no such shares
          remain  outstanding.  Each Buyer shall be responsible only for its own
          representations, warranties, agreements and covenants hereunder.

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

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

          n. Termination.  In the event that the Closing shall not have occurred
          with respect to the Buyer on or before five (5) Business Days from the
          date hereof due to  ConnectClearly's,  NCT's or the Buyer's failure to
          satisfy the conditions precedent to Closing as set forth in Sections 8
          and 9  above  (and a  non-breaching  party's  failure  to  waive  such
          unsatisfied  condition(s)),  any  non-breaching  party  shall have the
          option to terminate  this  Agreement  with  respect to such  breaching
          party at the close of business on such date  without  liability of any
          party to any other party.

          o. Effect and Construction of Agreement.  Except as expressly provided
          herein,  this  Agreement  shall  remain in full  force  and  effect in
          accordance  with its respective  terms,  and shall not be construed to
          (i) waive or impair any rights, powers or remedies of the Buyers under
          this Agreement and the related  documents,  or (ii) require the Buyers
          to make any  investments,  loans  or other  extensions  of  credit  to
          ConnectClearly or NCT.

          p. Certain Fees and Expenses.  ConnectClearly shall pay the reasonable
          legal fees and  expenses of Stroock & Stroock & Lavan LLP,  counsel to
          the  Buyers,  incident  to the  negotiation,  preparation,  execution,
          delivery and  performance  of the  Transaction  Documents  and the NCT
          Transaction  Documents to a maximum amount of $30,000.  ConnectClearly
          shall pay the fees and expenses of its advisers, counsel,  accountants
          and other  experts,  if any,  and all other  expenses  incurred  by it
          incident to the  negotiation,  preparation,  execution,  delivery  and
          performance  of the  Transaction  Documents  and the  NCT  Transaction
          Documents.  ConnectClearly  shall pay all  stamp  and other  taxes and
          duties  levied  in  connection  with the  issuance  of its  securities
          pursuant to the Transaction Documents.

          q.  Remedies.  In  addition to being  entitled to exercise  all rights
          provided herein or granted by law, including recovery of damages,  the
          Buyers will be entitled to specific  performance of the obligations of
          NCT and  ConnectClearly  under the  Transaction  Documents and the NCT
          Transaction  Documents  and  injunctive  relief.  Each of the  parties
          hereto  (severally and not jointly) agrees that monetary damages would
          not be adequate  compensation  for any loss  incurred by reason of any
          breach of its  obligations  described  in the  foregoing  sentence and
          hereby agrees to waive in any action for specific  performance  of any
          such obligation or injunctive  relief the defense that a remedy at law
          would be adequate.

          r.  Joint  and  Several  Liability.  NCT and  ConnectClearly  shall be
          jointly and severally liable for the performance of this Agreement.
<PAGE>

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

                             CONNECTCLEARLY.COM, INC.


                        By: /S/CY E. Hammond
                            ----------------------------------
                             Name: Cy E. Hammond
                             Its:  Senior Vice President
                                   and Treasurer


                             NCT GROUP, INC.


                        By: /s/CY E. HAMMOND
                            ----------------------------------
                             Name: Cy E. Hammond
                             Its:  Senior Vice President and
                                   Chief Financial Officer




                       [SIGNATURES CONTINUE ON NEXT PAGE]

<PAGE>


                             "BUYER"

                             BALMORE FUNDS, S.A.

                             By:         /s/Gisela Kindle
                             Name:       Gisela Kindle
                             Title:      Director
                             Address:    Balmore Funds, S.A.
                                         Trident Chambers
                                         P.O. Box 146
                                         Proadstown, Tortola BVI

                             Telephone:(011) 4175-384-1953
                             Facsimile:(077)4175-384-1946




                               AUSTOST ANSTALT SCHAAN


                             By:         /s/Thomas Harkel
                             Name:       Thomas Harkel
                             Title:      Representative
                             Address:    Austost Anstalt Schaan
                                         744 Fuerstentum
                                         Landstrusse, 163
                                         Lichtestein

                             Telephone:(____) ___________________
                             Facsimile:(____) ___________________




                               ZAKENI LIMITED


                             By:         /s/BERNARD MULLER
                             Name:       Bernard Muller
                             Title:      President
                             Address:    Zakeni Limited
                                         Grand Bahamas

                             Telephone:(011) 4141-727-5070
                             Facsimile:(011)4141-727-5080
<PAGE>


                                   EXHIBIT 1

                                 NCT GROUP, INC.
                              NOTICE OF EXCHANGE

     Reference  is made to the  Securities  Purchase and  Supplemental  Exchange
Rights Agreement (the "Securities Purchase  Agreement").  In accordance with and
pursuant to the Securities Purchase Agreement,  the undersigned hereby elects to
exchange  the number of shares of common  stock,  $0.01 par value per share,  of
ConnectClearly.com,  a Delaware corporation (the "Shares"),  indicated below for
shares of common  stock,  $.01 par value per  share,  of NCT  Group,  Inc.  (the
"Exchange  Shares"),  by tendering  the stock  certificate(s)  representing  the
share(s) of ConnectClearly Common Stock specified below as of the date specified
below.

     The  undersigned  acknowledges  that  no  sale  by the  undersigned  of the
securities issuable to the undersigned upon exchange of the Shares shall be made
unless (i) a registration  statement for such shares under the Securities Act of
1933, as amended (the "Act") is in effect,  (ii) the Corporation has received an
opinion  of  counsel,   in  customary  form,  that  such  sale  is  exempt  from
registration required by Section 5 of the Act.

     Date of Exchange:



     Number of Shares to be exchanged:


     Stock certificate no(s). representing Shares to be exchanged:

     Please confirm the following information:

     Exchange Rate:


     Number of shares of NCT Common Stock to be issued:


     Wire Instructions:

<PAGE>



     Please issue the NCT Common Stock for which the Shares are being  exchanged
in the following name and to the following address:

     Issue to:


     Facsimile Number:

     Authorization:


     By:______________________________________
     Title:_____________________________________
     Dated:


ACKNOWLEDGED AND AGREED:

NCT GROUP, INC.

By: _____________________________
Name:___________________________
Title:____________________________

Date:____________________________


<PAGE>


                                  SCHEDULE 4(a)

                         Organization and Qualification

None.



<PAGE>


                                  SCHEDULE 4(c)

                                Capitalization

<PAGE>


                                  SCHEDULE 4(f)

                              Defaults, Violations


    None.



<PAGE>


                                 SCHEDULE 4(g)

                                    Consents

      None.


<PAGE>


                                  SCHEDULE 4(u)

                           Registration Rights; Rights of Participation

      None.


<PAGE>


                                  SCHEDULE 4(v)

                                  Certain Fees





<PAGE>


                                  SCHEDULE 5(c)

                                 Capitalization


Carole Salkind:  beneficial  ownership of 10.77% of the outstanding Common Stock
as of June 30, 2000.




<PAGE>


                                 SCHEDULE 5(f)

                              Defaults, Violations


      None.





<PAGE>


                                 SCHEDULE 5(g)

                                    Consents

      None.



<PAGE>


                                  SCHEDULE 5(i)

                           Absence of Certain Changes




<PAGE>


                                 SCHEDULE 5(j)

                                  Litigation


      None.



<PAGE>


                                 SCHEDULE 5(p)

                                      Title



     Salkind Secured Convertible Notes:


     Security  interest in the NCT's now owned and after  acquired  inventory or
receivables in respect thereof and all products and proceeds thereof.


<PAGE>


                                 SCHEDULE 5(u)

                                  Tax Status



      None.


<PAGE>


                                 SCHEDULE 5(v)

                             Certain Transactions


      None.


<PAGE>



125


                                   SCHEDULE I

                                     BUYERS

<TABLE>
<CAPTION>


Name and Address of Buyer                    Purchase Price     Second       Purchase Price                 Second
                                Initial       for Initial       Tranche        for Second      Initial     Tranche
                                Shares          Shares          Shares       Tranche Shares    Warrants    Warrants
-------------------------------------------------------------------------------------------------------------------------
<S>                              <C>           <C>               <C>            <C>              <C>         <C>
Austost Anstalt Schaan           375           $375,000          375            $375,000         375         375
      744 Fuerstentum
      Landstrasse 163,
      Lichtenstein
-------------------------------------------------------------------------------------------------------------------------

Balmore Funds S.A.               375           $375,000          375            $375,000         375         375
      Trident Chambers
      P.O. Box 146
      Roadstown Tortola, BVI
-------------------------------------------------------------------------------------------------------------------------

Zakeni, Ltd                      250           $250,000          250            $250,000         250         250
Grand Bahamas
-------------------------------------------------------------------------------------------------------------------------
</TABLE>


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