Document:

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                                                                   Exhibit 10.49

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                        SUPPLY AND DISTRIBUTION AGREEMENT
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1.            PARTIES

                  This Agreement is made between

                  VIRAGEN (EUROPE) LTD. having its principal address at 865 SW
                  78th Avenue, Suite 100, Plantation, FL 33324 and VIRAGEN
                  (SCOTLAND) LTD. having its principal address at Pentland
                  Science Park, Bush Loan, Peniculk, Midlothian EH260 PPZ,
                  UNITED KINGDOM,

                  hereinafter referred to as "the Company" and

                  TRADEWAY INCORPORATED, 187 W. Orangethorpe, Suite 1,
                  Placentia, CA 92870 and with offices in Taipei, Taiwan at 13
                  Lane 199, Section 6, YenPing North Road, Taipei, Taiwan 111.

                  hereinafter referred to as "the Distributor".

2.            PURPOSE

                  The purpose of this Agreement is to grant the Distributor the
                  exclusive right to market, sell and distribute the Product
                  within the Territory as defined in Exhibit A and in accordance
                  with the terms and conditions expressed herein.

3.            DEFINITIONS

                  In this Agreement, each time the following terms are used with
                  initial capitals, their meanings shall be as specified
                  hereunder.

                  -   "Affiliated Companies" shall mean, in relation to a given
                      company, any company which, directly or indirectly,
                      controls, is controlled by or is under common control with
                      such company.

                  -   "Batch" and "Lot" shall mean a defined quantity of the
                      Product which has been produced during a defined cycle of
                      manufacture, and which is identified by a unique
                      production number.

                  -   "Contract Year" shall mean any period of l2 (twelve)
                      consecutive calendar months following the Effective Date,
                      as defined hereunder, or anniversary thereof.

                  -   "Distribution Record" shall mean the record sheet
                      detailing every shipment of the Product made by the
                      Distributor to any of its customers including, but not
                      limited to, the customer's name, address, batch number,
                      number of bottles and date of shipment.

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                  -   "Effective Date" shall mean the first day of the month
                      following the month during which the Distributor is
                      granted the "Product License", hereinafter "PL", as
                      here-under defined.

                  -   "Parties" shall mean the Company and the Distributor.

                  -   "Party" shall mean either the Company or the Distributor.

                  -   "PL" shall mean the Product License (or authorization
                      under a physician prescription/named patient program)
                      granted by the competent medical authorities of Taiwan for
                      allowing the sale and distribution of the Product in the
                      Territory.

                  -   "Price" shall mean the price of the Product as described
                      in Exhibit B.

                  -   "Product" shall mean Interferon Alfanative(R) as
                      chemically described and with the specification given in
                      Exhibit C as modified from time to time according to the
                      provisions of Exhibit B.

                  -   "Recall Operation" shall mean the operation for recalling
                      the Product if it is suspected or known to be defective.

4.            APPOINTMENTS

                  The Company hereby appoints the Distributor as its exclusive
                  Distributor for the Product in the Territory (as defined in
                  Exhibit A) and Distributor hereby accepts such appointment in
                  accordance with the terms and conditions herein expressed.

5.            PRODUCT PURCHASE AND SUPPLY COMMITMENTS

5.1               Distributor  and Company agree to the purchase and supply of
                  the following U.S. Dollar purchase and sales of Product over
                  the initial term of this Agreement per the following
                  Performance Schedule, subject to the terms and conditions
                  herein expressed:
<TABLE>
<CAPTION>

                  ------------------------------------------------------------------------------------------
                                                    PERFORMANCE SCHEDULE
                  ------------------------------------------------------------------------------------------
                                                                                        ESTIMATED PURCHASE
                                                                                        AND SALES IN U.S.
                          PERIOD                            DURATION                         DOLLARS
                  ----------------------- -------------------------------------------- ---------------------
                  <S>                     <C>                                          <C>

                  Initial Period          First Consecutive 12 to 18 Months                  $5 Million
                  ----------------------- -------------------------------------------- ---------------------
                  First Period            Second Consecutive 12 to 18 Months                $50 Million
                  ----------------------- -------------------------------------------- ---------------------
                  Second Period           Third Consecutive 12 Months                       $50 Million
                  ----------------------- -------------------------------------------- ---------------------
                  Third Period            Fourth Consecutive 12 Months                      $50 Million
                  ----------------------- -------------------------------------------- ---------------------
                  Fourth Period           Fifth Consecutive 12 Months                       $50 Million
                  ----------------------- -------------------------------------------- ---------------------
                  Fifth Period            Sixth Consecutive 12 Months                       $50 Million
                  -------------------------------------------------------------------- ---------------------
                                                                                Total      $255 Million
                                                                                           ============
                  ------------------------------------------------------------------------------------------
</TABLE>

                  *  Fifth Period (and any portion thereof) is operative if less
                     than 18 months is achieved in either the First and/or
                     Second Periods.

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5.2               Distributor will initiate a 200 patient hepatitis C clinical
                  evaluation immediately after receipt of initial shipment of
                  Product. Distributor will pay for all materials (including
                  Product), costs and expenses incurred for clinical
                  evaluations. The Company agrees to provide Distributor with a
                  ten percent (10%) discount on the agreed pricing of the
                  Product up until the equivalent cost of the 200 patients'
                  material (Product) has been absorbed after which the full
                  price shall be paid by the Distributor.

6.            MEDICAL REGISTRATION

6.1               The Distributor shall take any and all necessary measures in
                  order to obtain and maintain appropriate approvals from the
                  Taiwanese regulatory authorities which shall include, but not
                  be limited to, a PL and authorization to distribute the
                  Product within Taiwan. All costs and expenses associated with
                  obtaining regulatory approval and the necessary permits to
                  sell the Product in the Territory shall be borne by the
                  Distributor (as described in Exhibit A).

6.2               If the PL is not obtained within eighteen (18) months from the
                  date of the last signature to this Agreement, Viragen shall
                  have the right to terminate the Agreement according to the
                  conditions contained in Article 11 below.

6.3               The Distributor shall pay all regulatory and governmental
                  registration fees, all the annual registration maintenance
                  fees and other fees required for the sale of the Product as
                  promulgated by any local, regional or national governmental
                  authority.

6.4               In the event the Company is not free to disclose to the
                  Distributor any information required by the responsible
                  regulatory or other authorities, the Company shall be obliged
                  to make such secret information available to the authorities
                  on the Distributor's behalf at its own cost and expense.

6.5               The Company shall receive two (2) copies of all registration
                  certificates, documentation for reimbursement and any other
                  data or documentation forthwith upon their issuance. The
                  Distributor specifically agrees to provide the Company with
                  copies of all correspondence with the registration authorities
                  as well as any and all government agencies. Each party shall
                  furnish the other with information on any observed unexpected
                  side effects, injury, toxicity or sensitivity reaction
                  associated with the clinical use, studies, investigations or
                  tests of the Product in accordance with Exhibit D, which
                  contains a sub-agreement.

6.6               Distributor will at its own cost register the Product in
                  Taiwan and the Company will be the owner of the Registration
                  in accordance with the existing rules of the Taiwanese law.
                  Tradeway will complete the Registration of the Product in
                  Taiwan within six (6) months or earlier from the date of the
                  last signature to this Agreement.

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7.            COMPETITION, REPORTS, FORECASTS, INFORMATION AND INVENTORY

7.1           Obligation Not to Compete

                  The Company shall refrain from selling the Product in the
                  Territory and shall not grant nor appoint any other person or
                  entity as Distributor of the Product in the Territory.

                  The Distributor shall not manufacture, sell or distribute any
                  interferon or other products which compete with the Product.
                  The Distributor may, however, continue its business activities
                  with respect to such products as it sells or distributes on
                  the date of signing this agreement as reflected in Exhibit E.
                  The Distributor may nominate a Sub-Distributor upon submission
                  of a request for approval and a copy of the draft
                  Sub-Distributor Agreement which shall be submitted to the
                  Company for its approval. No Sub-Distributor agreement shall
                  be valid without the written approval of the Company.

                  From the date of this agreement, Distributor shall not
                  distribute, directly or indirectly, any products containing
                  the same active ingredients as the Product.

                  The Distributor hereby warrants that it shall not seek
                  customers for the Product outside the Territory, sell the
                  Product outside the Territory, or establish any branch or
                  maintain any distribution depot outside the Territory. The
                  Sub-Distributor Agreement shall require the Sub-Distributor to
                  so warrant and the Distributor shall be accountable to the
                  Company for enforcing this provision.

                  The Distributor shall not have the right to produce the active
                  ingredient of the Product.

7.2           Reports and Agreements

                  The Distributor agrees to furnish the Company each calendar
                  quarter, or at such intervals as agreed upon by the Company
                  and the Distributor, with a true and accurate report on all
                  sales of the Product in the Territory, as specified herein.
                  The Distributor agrees to also furnish the Company with copies
                  of all agreements, brochures, pamphlets and documents which
                  may relate to the Product including those developed, produced
                  or used by the Distributor in connection with the sale of the
                  Product. The Distributor agrees not to use any such material
                  without the Company's prior written approval. Upon submission,
                  the Company agrees to respond promptly without any unnecessary
                  delay and consent shall not be unreasonably withheld.

                  At any time upon reasonable request of the Company,
                  Distributor agrees provide the Company with information,
                  including but limited to, selling prices, market trends,
                  competitive environment and competitor's prices, technical or
                  commercial information useful for the adaptation of the
                  Product to market requirements. Distributor agrees to send to
                  the Company a quarterly report on market developments in the
                  Territory and Distributor's sales progress relating to the
                  Product.

                  At any time and upon reasonable request of the Company,
                  Distributor shall permit the Company's representative(s) to
                  accompany Distributor's representative(s) on visits made to
                  customers in order to have the Company better acquainted with
                  the specificity of the market for the Product in the
                  Territory. The Company agrees not to circumvent the
                  Distributor during the term hereof and any renewal.

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7.3           Forecasts

                  Following PL approval, the Distributor shall submit to the
                  Company each calendar quarter during each calendar year a
                  rolling forecast for the following 4 (four) quarters showing
                  the planned purchase quantities of the Product. The
                  Distributor shall place its firm orders for the Product for
                  the following quarter with the rolling forecast. Before
                  approval by the Company, the Distributor shall submit each
                  month a rolling forecast for the following twelve months
                  connected to firm orders for the Product for the following
                  quarter.

7.4           Information

                  The Company shall provide the Distributor with all presently
                  available data, information and documents necessary for the
                  carrying out of this Agreement, including technical documents
                  and advertising material.

7.5           Inventory

                  The Distributor shall buy and maintain, at his own cost, an
                  inventory of the Product equaling no less than the amount
                  forecasted for the following quarter and see to it that the
                  Product is kept in good condition and that all reasonable
                  precautions are taken to prevent its deterioration at its own
                  cost, expense and liability.

8.            THE DISTRIBUTOR

8.1           Independency

8.1.1         For Its Own Account

                  The Distributor shall buy and sell the Product in its own name
                  and for its own account and act in all respects as an
                  independent contractor. The Distributor shall organize the
                  distribution of the Product in such a manner as to most
                  effectively promote the sale of the Product and maintain a
                  level of product support necessary for the proper selling,
                  marketing and distribution of the Product.

8.1.2         Independent Contractor

                  This Agreement does not designate the Distributor to be the
                  agent, partner or legal representative of the Company for any
                  purpose whatsoever, and the business con-ducted by the
                  Distributor pursuant to this Agreement with third parties
                  shall be wholly at the Distributor's own risk and account as
                  an independent contractor.

                  The Distributor is not granted any right or authority to
                  assume or create any obligation or responsibility, express or
                  implied, on behalf of or in the name of the Company or to bind
                  the Company in any manner whatsoever.

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8.2           Unfair Competition and Infringement of Rights

                  The Distributor shall inform the Company of all acts of unfair
                  competition and of all infringement of patents, trade mark,
                  trade names, or similar rights of the Company which have come
                  to its attention to the extent that the rights of the Company
                  have been violated. If requested by the Company, the
                  Distributor shall assist the Company at the Company's expense
                  in any action or litigation involving such acts or
                  infringements.

8.3           Distribution Records

                  In order to enable the Company to comply with the requirements
                  of the European Code of Good Manufacturing Practice (Volume IV
                  of the Rules Governing Medical Products in the European
                  Community), the Distributor shall keep Distribution Records
                  for each Batch of the Product sold to the customers. This
                  information shall be made available to the Company in case of
                  Recall Operation or upon request, within two working days, by
                  sending a fax, confirmed by a letter, to:

                  BioNative AB                        Viragen (Scotland) LTD.
                  Tvistevagen 48                      Pentland Science Park
                  S-907 36 Umea                       Bush Loan, Peniculk
                  Sweden                              Midlothian EH260 PPZ
                                                      United Kingdom

                  Tel no:   46-90-172250              Tel no:   44-131-445-6268
                  Fax no:   46-90-193736              Fax no:   44-131-445-6269

9.            CONDITIONS OF SALE

9.1           Purchase Orders

                  The Distributor shall present all orders for the Product to be
                  purchased under this Agreement to the Company together with
                  adequate delivery instructions and pre-payment. Orders
                  presented by the Distributor shall bind the Company only after
                  written confirmation of acceptance thereof by the Company.

9.2           Price Guidelines

9.2.1         Price and Conditions

                  The Distributor shall purchase the Product at prices and on
                  conditions set forth by the Company from time to time in
                  Exhibit B. Notwithstanding the above, the Company shall be
                  entitled to change any Product Price at any time subject to
                  giving Distributor six (6) months prior written notice.

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9.2.2         Payment Terms

                  The Distributor shall pay the Company for the Product supplied
                  according to payment terms as set forth in Exhibit B.

9.3           Advertising and Promotion

9.3.1         Best Efforts

                  The Distributor shall use its best efforts and diligence in
                  promoting and initiating effectively the sales of the Product
                  throughout the whole of its Territory.

9.3.2         Advertising and Promotional Activities

                  The Distributor shall ensure the advertising and the promotion
                  of the Product and, to a reasonable extent, the participation
                  in conventions, trade shows and exhibitions held in the
                  Territory. The costs of advertising and promotion are to be
                  borne by the Distributor. All advertising and promotional copy
                  shall be submitted to the Company for its written approval
                  prior to release.

9.3.3         Conformity with Applicable Laws

9.3.4.        The Distributor shall be responsible for any advertising and
              promotional material for the Product and for their conformity with
              applicable laws and regulations.

9.3.5         Thirty (30) days before the first delivery takes place,
              Distributor shall provide the Company with the art works of:

                  -   the carton
                  -   the labels for the Product and the cardboard box per the
                      models communicated by the Company to the Distributor, and
                      the leaflets to be packed with the Product

              all of which shall be approved by the Company.

9.3.6         Before approval, the Company will deliver the Product in ampoules
              of 3 and 6 MIU, labeled with English text indicating batch numbers
              and expiration date, packed in plastic trays, each containing five
              ampoules.

9.3.7         Distributor shall be responsible for delivering copy of any text
              in Chinese that may be required under law, rule or regulation.

10.           GENERAL PROVISIONS

10.1          Trade Secrets

                  The Distributor shall not, even after the expiration of this
                  Agreement, use or communicate to any third party any trade
                  secrets which the Distributor has come to know in one way or
                  another through its work for the Company. The obligation shall

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                  cease at the end of a period of (five) 5 years from the date
                  of the termination or expiration of this Agreement; however,
                  the obligation shall not cease for any reason prior to the end
                  of the first (ten) 10 years after the signing of the
                  Agreement.

                  The Distributor assumes the responsibility, liability and
                  obligations that its employees and any Sub-Distributor and its
                  employees shall preserve the secrecy of trade secrets with
                  respect to third parties.

10.2          Trademarks

                  Trademarks, Tradenames and Copyrights used by the Distributor
                  for the Product shall be the property of the Company, and the
                  Distributor agrees to use only such Trademarks, Tradenames and
                  Copyrights as indicated and approved in writing by the
                  Company. It is agreed that the Company's registered trademark
                  of the Product, Interferon Alfanative(R), Omniferon(TM) or
                  Multiferon(TM) may be used in Taiwan, provided a registration
                  of these trademarks will be obtainable and maintained.

                  The Distributor shall not, without the Company's prior written
                  consent, use the Company's corporate name, telegraphic
                  address, graphic or other trademarks, whether during the
                  maintenance of or after the termination of this Agreement.

                  The Distributor shall not register or attempt to register for
                  any purpose any trade-mark, tradename, copyright, name, title
                  or expression of the Company as used on the Product or any
                  other trademark or any tradename which is similar thereto.

                  Electronic emails may be considered adequate consent if
                  originated at the Company's premises.

                  The Company shall not be liable to compensate the Distributor
                  for any claims, expenses, costs, losses or damages the
                  Distributor may suffer as a result of the infringement of any
                  third party intellectual property rights in connection with
                  the transactions contemplated hereunder.

10.3          Assignment

                  The Company shall have the right to assign this Agreement,
                  upon written notice to Distributor but without the prior
                  consent of Distributor, to:

                  a)  any of its Affiliated Companies; or

                  b)  its successors in interest as a result of a statutory
                      merger or consolidation; or

                  c)  a company acquiring all or substantially all of the
                      Company's  business and assets  including the part
                      concerned by this Agreement.

                  The Company reserves the right to terminate this Agreement
                  whenever the control of the Distributor's company passes over
                  to another party than the party controlling it at the time of
                  signature of this present Agreement. Exhibit F lists the
                  current stockholders of the Distributor and its affiliates.

10.4          Force Majeure

                  If due performance of this Agreement by either party is
                  affected in whole or in part by reason of any event, omission,

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                  accident, general shortage of commodities, legal circumstances
                  or other matter beyond the reasonable control of such party,
                  it shall give prompt notice thereof to the other party and
                  shall be under no liability for any loss, damage, injury or
                  expense suffered by the other party for this reason. Both
                  parties shall use all reasonable efforts to avoid or overcome
                  the causes affecting performance and the party whose
                  performance is affected by such force majeure shall fulfill
                  all outstanding obligations as soon as possible.

10.5          Warranties and Liability

10.5.1        The Company warrants to the Distributor that the Product delivered
              hereunder shall comply with the specification set forth in the
              Product License and consistent with Exhibit C.

                  a)  If the parties agree that a certain lot of the Product
                      supplied hereunder fails to meet said specification or is
                      otherwise defective or if such lot is recognized as
                      defective by an independent laboratory as provided for
                      hereafter in this section, and unless otherwise mutually
                      agreed upon, the Distributor shall send such lot back to
                      the Company and the Company shall replace it at its own
                      expense, including the freight back, with a new lot of the
                      Product conforming with said specification. The
                      Distributor shall have no other remedies against the
                      Company for defects in the Product.

                  b)  If the parties fail to agree that a certain lot of the
                      Product supplied hereunder meets said specification,
                      Distributor may request an expert appraisal by an
                      independent laboratory, not associated with any of the
                      parties hereto, to determine whether the Product complies
                      with said specification. Should the Company disagree with
                      regard to the choice of laboratory, the Company has the
                      right to request that the laboratory is appointed by the
                      International Chamber of Commerce provided that the
                      Company informs the Distributor within two weeks after
                      having been informed by the Distributor about its choice
                      of laboratory, that the Company requests that the
                      appraisal shall be carried out by a laboratory appointed
                      by the Chamber. The report of the laboratory shall be
                      conclusive and binding on the parties hereto. All expenses
                      related to such appraisal shall be borne by the party,
                      whose opinion of which has been found not to be correct.

                      No other warranties, expressed or implied, including,
                      without limitation, merchantability or fitness for a
                      particular purpose, are made or will be deemed to have
                      been made by the Company regarding the Products, except to
                      the extent expressly stated herein. Neither the
                      Distributor, nor any of its employees, agents or
                      representatives is authorized to give any warranties or
                      make any representations on behalf of the Company. In no
                      event shall the Company be held liable for any lost
                      profits or any other incidental or consequential damages
                      in connection with any claims arising out of or related to
                      any products supplied by the Company to the Distributor.

10.5.2            The Distributor shall indemnify and hold the Company harmless
                  from and against any and all liability, damage, loss, cost or
                  expense arising out of or resulting from any claims made or
                  suits brought against the Company or the Distributor, which
                  arise out of or result from the Distributor's negligent act or
                  omission in the marketing, selling or distribution of the
                  Product.

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10.5.3            The Distributor has, and shall at all times during the term of
                  this Agreement and for a period of two years thereafter, have
                  full insurance coverage with reputable and sound insurance
                  covering all and any risks, including (without limitation) any
                  liabilities to third parties and the public (including without
                  limitation product liability). The Company will have the right
                  to review the insurance policies in order to make sure the
                  Distributor's insurance coverage is sufficient.

10.5.4            The Company represents that it will add the Distributor as a
                  Named Insured on its current International Liability Insurance
                  Policy held with MedMarc Casualty and Insurance Company under
                  Policy Number 00FL020010 within 30 days from the date of
                  execution of this agreement.

10.5.5        Compliance with Applicable Laws

                  The Distributor agrees that it will, on its own comply with
                  all laws, statutes and ordinance in the Territory relating to
                  the import and sale of the Product and agrees to indemnify and
                  hold the Company harmless in the event that any claim is made
                  against it by reason of the Distributor's failure to so
                  comply. In particular, the Distributor agrees to comply with
                  all safety laws and regulations in the Territory relating to
                  the Product and the Company agrees to provide all necessary
                  information and assistance to the Distributor to enable it to
                  so comply.

10.6          Taxes

                  The Distributor shall pay all excise or sales taxes that may
                  be required to be paid by the Company or the Distributor by
                  any statute, ordinance or regulation of any taxation
                  authority. In the event that the Company is required to or
                  does pay any of such taxes, the Distributor, upon being
                  informed of such payment, shall at once repay the amount
                  thereof to the Company. The Distributor, unless prohibited by
                  any such statute, ordinance or regulation, shall have the
                  right to require any dealer or Sub-Distributor handling such
                  goods to pay any such excise or sales taxes on the goods so
                  handled by him.

11.           DURATION AND TERMINATION

11.1          Duration

                  This Agreement shall have immediate force and effect and shall
                  remain in effect until the completion of the Fifth Period
                  described in Paragraph 5.1 of this Agreement and shall
                  continue thereafter for an additional three (3) year term and
                  continue thereafter for two automatic three (3) year terms
                  unless and until terminated by either party giving to the
                  other six (6) months notice in writing prior to the end of the
                  Initial Term or any Subsequent Term.

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11.2          Termination

11.2.1        Failure to Fulfill Obligations or to Obtain or Maintain PL

                  This Agreement may be terminated with three (3) months written
                  notice forthwith by either party if the other party fails to
                  fulfill any of its obligations under this Agreement and such
                  default is not remedied within thirty (30) days of the date on
                  which a written notice thereof has been dispatched to the
                  defaulting party or if the Distributor fails to obtain or
                  maintain the PL as set forth in Article 6, Medical
                  Registration.

11.2.2        Termination for Bankruptcy or Insolvency

                  This Agreement may be terminated immediately in the event that
                  either party is declared insolvent, is adjudged bankrupt or
                  files a petition for bankruptcy or re-organization under any
                  bankruptcy law, is expropriated or sequestrated or submits or
                  has to submit to any other administrative or judicial measures
                  of control.

                  Insolvency is defined to mean the inability to pay debts, as
                  they become due and the excess of liabilities over assets.

11.2.3        Termination for Loss of License to Sell Product

                  The Company shall have a right to terminate this Agreement
                  with immediate effect should the Company's license to sell the
                  Product be withdrawn.

11.3          Effect of Termination

                  On the termination of this agreement, the Distributor shall
                  return, without delay, all registration and permission
                  documents to the Company together with all formulas,
                  manufacturing procedures and other confidential documentation
                  which the Distributor has obtained from the Company. The
                  Distributor agrees that it shall not make any further use of
                  this documentation. The Company shall have the option to
                  repurchase any paid unsold Product at prices paid by the
                  Distributor to the Company.

11.4          Notice of Termination

                  Provided that notice of termination has been dispatched by
                  registered letter, the notice shall be considered to have been
                  received by the addressee four days after the letter was so
                  dispatched.

11.5     Exclusive and Non-Exclusive Distribution Rights

                  In the event Distributor fails to achieve one-half (50%) of
                  the sales figures set forth under "Performance Standards" in
                  paragraph 5.1, then the exclusive distribution rights as set
                  forth herein may be cancelled in the Company's sole
                  discretion. If the exclusive rights are so cancelled, then
                  Distributor shall have non-exclusive distribution rights
                  within the Territory. Distributor shall remain the exclusive
                  distributor within the Territory during the term of this

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                  agreement and any renewal thereof in the event Distributor has
                  generated one-half or more of the sales figures set forth
                  under Performance Standards in paragraph 5.1. This provision
                  shall not apply during the first 18 months of the term of this
                  Agreement and sales shall be calculated on a 12-month basis
                  thereafter.

11.6          Termination Compensation

                  Neither party hereto shall be liable to the other for any
                  termination compensation whether based on goodwill, loss of
                  income or otherwise.

12.           FINAL PROVISIONS

12.1          Governing Law

                  This Agreement shall be governed by the laws of the U.K..

12.2          Language

                  The English text of this Agreement shall prevail.

12.3          Arbitration

                  Any dispute in connection with this agreement shall be finally
                  settled by arbitration in accordance with the Rules of the
                  Arbitration Act of the International Chamber of Commerce and
                  the settlement will take place in Edinburgh, Scotland and be
                  conducted in the English language.

12.4          Modifications

                  All modifications and amendments to this Agreement shall be in
writing.

12.5.         Notices and Communications

                  All notices in connection with this Agreement shall be in
                  writing and be in the English language, as shall all other
                  written communications and correspondence, and may be given by
                  personal delivery, prepaid registered airmail letter,
                  telecopier, or telegram addressed to the Party required or
                  entitled to receive the same at its address or telefax number
                  set out below, or to such other address or telefax number as
                  such Party shall have designated by like notice to the other
                  Party. Notice of termination of this Agreement if given by
                  telecopier or telegram shall be confirmed by prepaid
                  registered airmail letter dated and posted within 24 hours.
                  The effective date of any notice if served by personal
                  delivery, telecopier, or telegram shall be deemed the first
                  business day in the city of destination following the dispatch
                  and if given by prepaid registered airmail letter only, it
                  shall be deemed served seven days after the date of posting.

12.6          Exhibits

                  All Exhibits attached hereto shall be made a part of this
                  Agreement.

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12.7          No Waiver

                  The omission by either Party to exercise any right hereunder
                  shall not constitute a waiver thereof and shall not prevent
                  the subsequent enforcement of that right and shall not be
                  deemed to be a waiver of any subsequent right.

  12.8        Survival of Provisions

                  The provisions of this Agreement shall survive its termination
                  for so long as may be necessary to give efficacy thereto.

  12.9        Entire Agreement

                  This Agreement, which includes the Exhibits attached hereto,
                  contains the entire understanding and supersedes all prior
                  agreements of the parties with respect to the transactions
                  contemplated hereby. There are no agreements, promises,
                  warranties, covenants or understandings other than those
                  expressly set forth herein.

  12.10       Invalidity

                  Any provision of this Agreement that is invalid or
                  unenforceable in any jurisdiction shall, as to such
                  jurisdiction, be ineffective to the extent of such invalidity
                  or unenforceability without invalidating the remaining
                  provisions hereof or affecting the validity or enforceability
                  of such provision in any other jurisdiction.

IN WITNESS WHEREOF the parties hereto have hereunto set their hands the day and
year indicated below.

VIRAGEN (EUROPE) LTD.                            TRADEWAY INCORPORATED

By: /s/ Gerald Smith, Chairman                   By: /s/ Ian Huang, Coo
    --------------------------                       ------------------
(Name and Title)                                     (Name and Title)

Print: Gerald Smith                              Print: Ian Huang
Date: October 25, 2001                           Date: October 30, 2001

VIRAGEN (SCOTLAND) LTD.

By: /s/ Gerald Smith, Chairman
    ------------------------------------
(Name and Title)

Print: Gerald Smith    Date: October 25, 2001

                                       13Exhibit 10.1

THIS  DEBENTURE  HAS BEEN ACQUIRED FOR  INVESTMENT  PURPOSES ONLY AND MAY NOT BE
TRANSFERRED UNTIL (I) A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE "ACT") SHALL HAVE BECOME  EFFECTIVE WITH RESPECT THERETO OR (II)
RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL  REASONABLY  SATISFACTORY TO THE
COMPANY  TO THE  EFFECT  THAT  REGISTRATION  UNDER  THE ACT IS NOT  REQUIRED  IN
CONNECTION  WITH SUCH  PROPOSED  TRANSFER NOR IS IN VIOLATION OF ANY  APPLICABLE
STATE  SECURITIES  LAWS. THIS LEGEND SHALL BE ENDORSED UPON ANY DEBENTURE ISSUED
IN EXCHANGE FOR THIS DEBENTURE.

                        DIMENSIONAL VISIONS INCORPORATED

                            14% Convertible Debenture

$25,000.00                                                         July 13, 2001

     FOR  VALUE  RECEIVED,   Dimensional   Visions   Incorporated,   a  Delaware
corporation  (the  "Company") with its principal  executive  office at 2301 West
Dunlap Avenue, Suite 207, Phoenix,  Arizona 85021,  promises to pay to the order
of Glen Crotts, 6209 North 22nd Avenue,  Phoenix,  Arizona 85015 (the "Payee" or
the "Holder of this  Debenture") or registered  assigns on or before October 13,
2001 (the "Maturity  Date"),  the principal sum of Twenty-Five  Thousand Dollars
($25,000.00)  (the "Principal  Amount"),  in such coin or currency of the United
States  of  America  as at the time of  payment  shall be legal  tender  for the
payment of public and private debts,  together with interest thereon at the rate
of fourteen (14%) percent per annum (the "Stated Rate"),  payable as hereinafter
set forth in cash,  or at the  option of the  Holder of this  Debenture,  in the
Company's Common Stock as provided in SECTION 4 hereof. Payment of the Principal
Amount and  interest  shall be made at the address  designated  above or at such
other  place as the Payee  shall have  notified  the Company in writing at least
five (5) days before such payment is due.

     Payment by the Company  pursuant to this  Debenture  shall be made  without
setoff or counterclaim and in immediately available funds.

     The  amount of all  repayments  of  principal,  interest  rates  applicable
thereto and  interest  accrued  thereon  shall be recorded on the records of the
Payee and,  prior to any transfer of, or any action to collect,  this  Debenture
shall be endorsed on this Debenture.  Any such recordation or endorsement  shall
constitute  PRIMA FACIE evidence of the accuracy of the  information so recorded
or  endorsed,  but the failure to record any such amount or rate shall not limit
or otherwise affect the obligations of the Company hereunder to make payments of
principal or interest when due. All payments by the Company  hereunder  shall be
applied first to pay any interest which is due, but unpaid ("Accrued Interest"),
then to reduce the Principal Amount.

     The Company (i) waives presentment,  demand, protest, or notice of any kind
in connection  with this Debenture and (ii) agrees,  in the event of an Event of
Default  (as  defined  in  Section  2  hereof),  to pay to the  Holder  of  this
Debenture,  on demand, all costs and expenses (including  reasonable legal fees)
incurred in connection with the enforcement and collection of this Debenture. If
the date for any payment due hereunder  would  otherwise  fall on a day which is
not a Business  Day,  such payment or  expiration  date shall be extended to the
next  following  Business  Day with  interest  payable  at the  applicable  rate
specified herein during such extension.  "Business Day" shall mean any day other
than a  Saturday,  Sunday,  or any day which  shall be in the State of Arizona a
legal holiday or a day on which banking  institutions  are  authorized by law to
close.

     1.   CONVERSION OF DEBENTURE.

          A. CONVERSION.  This Debenture is convertible, in whole or in part, at
the option of the Holder,  into shares of the Company's  common stock, par value
$.001 (the "Common  Stock") at any time prior to the repayment of this Debenture
at the rate of $0.125 per share (the  "Conversion  Price")  (i.e.,  one share of
Common  Stock  for  each  $0.125  of  principal  amount  converted)  subject  to
adjustment as hereinafter provided.

          B.  ADJUSTMENT  BASED UPON STOCK  DIVIDENDS,  COMBINATION OF SHARES OR
RECAPITALIZATION.  In the  event  that the  Company  shall at any time (i) pay a
stock  dividend,  (ii) subdivide its  outstanding  shares of Common Stock into a
greater number of shares,  (iii) combine its outstanding  shares of Common Stock
into a smaller number of shares, or (iv) issue by reclassification of its shares
of Common Stock any other special capital stock of the Company, the Holder, upon
surrender of this  Debenture  for  conversion,  shall be entitled to receive the
number of shares of Common Stock or other  capital stock of the Company which he

                                       1
<PAGE>
would have owned or have been  entitled to receive after the happening of any of
the events described above had this Debenture been converted  immediately  prior
to the happening of such event.

          C.  ADJUSTMENT  BASED  UPON  MERGER OR  CONSOLIDATION.  In case of any
consolidation  or merger to which the Company is a party (other than a merger in
which the  Company  is the  surviving  entity  and which  does not result in any
reclassification  of or change in the outstanding  Common Stock of the Company),
or in case of any sale or conveyance to another  corporation  of the property of
the Company as an entirety or  substantially  as an  entirety,  the Holder shall
have the right to convert this  Debenture into the kind and amount of securities
and property receivable upon such consolidation, merger, sale or conveyance by a
holder of the number of shares of Common Stock into which such  Debenture  might
have been converted immediately prior thereto.

          D. EXERCISE OF CONVERSION PRIVILEGE. The conversion privilege provided
for  herein  shall be  exercisable  in whole or in part by the Holder by written
notice to the Company and the surrender of this  Debenture in exchange for up to
the number of shares of Common Stock into which this  Debenture  is  convertible
based upon the Conversion  Price.  If the entire amount of this Debenture is not
so exercised, the Company shall issue a new Debenture representing the remaining
outstanding Principal Amount.

          E.  CORPORATE  STATUS  OF  SHARES  TO BE  ISSUED..  All  shares of the
Company's Common Stock which may be issued upon the conversion of this Debenture
shall, upon issuance, be fully paid and non-assessable.

          F.  ISSUANCE  OF  STOCK  CERTIFICATE.  Upon  the  conversion  of  this
Debenture,  the Company shall in due course issue to the Holder a certificate or
certificates  representing the number of shares of its Common Stock to which the
conversion relates.

          G. STAMP TAXES,  ETC. The Company shall pay all documentary,  stamp or
other transactional taxes attributable to the issuance or delivery of the Common
Stock upon conversion of this  Debenture;  PROVIDED,  HOWEVER,  that the Company
shall not be  required  to pay any taxes  which may be payable in respect of any
transfer involved in the issuance or delivery of any certificate for such Common
Stock in a name other than that of the Holder of this  Debenture and the Company
shall not be required to issue or deliver any such certificate  unless and until
the person  requesting  the issuance  thereof shall have paid to the Company the
amount of such tax or shall have established to the Company's  satisfaction that
such tax has been paid.

     2.   EVENTS OF DEFAULT

          A. The term "Event of Default"  shall mean any of the events set forth
in this SECTION 2A:

               (a) NON-PAYMENT OF OBLIGATIONS.. The Company shall default in the
          payment of the principal or accrued  interest of this Debenture as and
          when  the  same  shall   become  due  and   payable,   including   the
          aforementioned 90-day extension, whether by acceleration or otherwise.

               (b) BANKRUPTCY, INSOLVENCY, ETC. The Company shall:

                    (i) become  insolvent or generally fail or be unable to pay,
               or admit in  writing  its  inability  to pay,  its  debts as they
               become due;

                    (ii) apply for, consent to, or acquiesce in, the appointment
               of a trustee,  receiver,  sequestrator or other custodian for the
               Company or any of its property,  or make a general assignment for
               the benefit of creditors;

                    (iii)  in  the  absence  of  such  application,  consent  or
               acquiesce  in,  permit or suffer  to exist the  appointment  of a
               trustee,  receiver,  sequestrator  or  other  custodian  for  the
               Company or for any part of its property;

                    (iv)  permit  or suffer  to exist  the  commencement  of any
               bankruptcy,  reorganization,  debt  arrangement  or other case or
               proceeding  under  any  bankruptcy  or  insolvency  law,  or  any
               dissolution,  winding up or liquidation proceeding, in respect of

                                       2
<PAGE>
               the Company,  and, if such case or proceeding is not commenced by
               the  Company  or  converted  to a  voluntary  case,  such case or
               proceeding  shall be consented to or acquiesced in by the Company
               or shall result in the entry of an order for relief; or

                    (v) take any  corporate or other action  authorizing,  or in
               furtherance of, any of the foregoing.

               (c)  JUDGMENTS.  A judgment  which,  with other such  outstanding
          judgments  against the Company and its  subsidiaries  (in each case to
          the extent not  covered by  insurance),  exceeds an  aggregate  of One
          Hundred  Thousand  Dollars($100,000),  shall be  rendered  against the
          Company or any  subsidiary  and,  within fifteen (15) days after entry
          thereof,  such  judgment  shall not have been  discharged or execution
          thereof stayed pending appeal,  or, within fifteen (15) days after the
          expiration  of any such  stay,  such  judgment  shall  not  have  been
          discharged.

          B. ACTION IF BANKRUPTCY.  If any Event of Default described in clauses
(b)(i) through (v) of Section 2A shall occur,  the outstanding  principal amount
of this Debenture and all other obligations hereunder shall automatically be and
become immediately due and payable, without notice or demand.

          C. ACTION IF OTHER EVENT OF  DEFAULT.  If any Event of Default  (other
than any Event of Default described in clauses (b)(i) through (v) of Section 2A)
shall occur for any reason, whether voluntary or involuntary, and be continuing,
the Holder of this Debenture may, upon notice to the Company, declare all or any
portion of the  outstanding  principal  amount of this  Debenture  together with
interest accrued thereon to be due and payable and any or all other  obligations
hereunder  to be due and payable,  whereupon  the full unpaid  principal  amount
hereof,  such accrued  interest,  and any and all other such  obligations  which
shall be so declared  due and payable  shall be and become  immediately  due and
payable, without further notice, demand, or presentment.

          D. REMEDIES. Subject to the provisions of Section 2C and 3A hereof, in
case any Event of  Default  shall  occur and be  continuing,  the Holder of this
Debenture may proceed to protect and enforce its rights by a proceeding  seeking
the  specific  performance  of any  covenant  or  agreement  contained  in  this
Debenture  or the  Security  Agreement,  or in aid of the  exercise of any power
granted  in this  Debenture  or may  proceed  to  enforce  the  payment  of this
Debenture or to enforce any other legal or equitable rights as such Holder.

     3.   AMENDMENTS AND WAIVERS.

          A. WAIVERS, AMENDMENTS, ETC.

               (a) The  provisions  of this  Debenture  may from time to time be
          amended,  modified  or waived,  if such  amendment,  modification,  or
          waiver is in writing and  consented  to by the Company and the holders
          of not less  than  50% in  principal  amount  of the  Debentures  (the
          "Required  Holders");  PROVIDED,  HOWEVER,  that  no  such  amendment,
          modification or waiver:

                    (i)  which  would  modify  this   Section  3A,   change  the
               definition of "Required  Holders",  extend the Maturity  Date, or
               subject  the  Payee  under  each   Debenture  to  any  additional
               obligations  shall be made  without  the  consent of the Payee of
               each Debenture, or

                    (ii)  which  would  reduce  the  amount  of any  payment  or
               prepayment  of principal of or interest on any  principal  amount
               payable  hereunder (or reduce the principal  amount of or rate of
               interest payable  hereunder) shall be made without the consent of
               the Holder of each Debenture so affected.

          (b) No  failure  or delay on the part of the Payee in  exercising  any
     power or right under this Debenture  shall not operate as a waiver thereof,
     nor  shall  any  single  or  partial  exercise  of any such  power or right
     preclude any other or further exercise thereof or the exercise of any other
     power or right.  No notice to or demand on the  Company  in any case  shall
     entitle it to any notice or demand in  similar or other  circumstances.  No
     waiver or approval by the Payee shall, except as may be otherwise stated in
     such waiver or approval,  be  applicable  to  subsequent  transactions.  No
     waiver or approval hereunder shall require any similar or dissimilar waiver
     or approval thereafter to be granted hereunder.

                                       3
<PAGE>
          (c) To the extent that the Company  makes a payment or payments to the
     Payee,  and such payment or payments or any part  thereof are  subsequently
     for any reason  invalidated,  set aside,  and/or required to be repaid to a
     trustee,  receiver,  or any other party under any bankruptcy  law, state or
     federal  law,  common law, or equitable  cause,  then to the extent of such
     recovery,  the  obligation  or  part  thereof  originally  intended  to  be
     satisfied,  and all  rights and  remedies  therefor,  shall be revived  and
     continued  in full force and effect as if such payment had not been made or
     such enforcement or setoff had not occurred.

          (d) After any waiver,  amendment,  or  supplement  under this  section
     becomes effective,  the Company shall mail to the Holders of the Debentures
     a copy thereof.

     4.   COMMON STOCK IN LIEU OF INTEREST.

          At the sole discretion of the Holder,  the Holder may elect to receive
one share of  Common  Stock for each  $0.125  of  interest  due to Holder on any
Interest  Payment  Date  (i.e.,  Common  Stock at the rate of $0.125  per share)
partially  or entirely in lieu of cash payment of  interest,  by  notifying  the
Company of its election to receive the Common Stock at least five (5) days prior
to any  Interest  Payment  Date.  The number of shares of Common Stock so issued
shall be subject to adjustment in accordance with SECTION 1B AND 1C hereof.

     5.   MISCELLANEOUS.

          A. PARTIES IN INTEREST. All covenants, agreements, and undertakings in
this Debenture binding upon the Company or the Payee shall bind and inure to the
benefit of the  successors  and permitted  assigns of the Company and the Payee,
respectively, whether so expressed or not.

          (a) REGISTERED  HOLDER.  The Company may consider and treat the person
     in whose name this  Debenture  shall be  registered  as the absolute  owner
     thereof for all purposes whatsoever (whether or not this Debenture shall be
     overdue)  and the  Company  shall  not be  affected  by any  notice  to the
     contrary.  In case of transfer of this  Debenture  by operation of law, the
     transferee  agrees  to  notify  the  Company  of such  transfer  and of its
     address, and to submit appropriate evidence regarding such transfer so that
     this  Debenture  may be  registered  in the  name of the  transferee.  This
     Debenture  is  transferable  only on the books of the Company by the Holder
     hereof, in person or by attorney,  on the surrender hereof,  duly endorsed.
     Communications  sent to any registered  owner shall be effective as against
     all Holders or  transferees  of the Debenture not registered at the time of
     sending the communication.

          B. GOVERNING LAW. This Debenture shall be governed by and construed in
accordance with the laws of the State of Delaware without regard to any conflict
provisions therein.

          C.  NOTICES.  Unless  otherwise  provided,  all  notices  required  or
permitted  under  this  Debenture  shall  be in  writing  and  shall  be  deemed
effectively given (i) upon personal  delivery to the party to be notified,  (ii)
upon  confirmed  delivery  by  Federal  Express or other  nationally  recognized
courier  service  providing  next-business-day  delivery,  or  (iii)  three  (3)
business days after deposit with the United States Postal Service, by registered
or certified mail, postage prepaid and addressed to the party to be notified, in
each case at the address set forth below, or at such other address as such party
may  designate  by written  notice to the other party  (provided  that notice of
change of  address  shall be  effective  upon  receipt by the party to whom such
notice is addressed).

     If sent to Payee, notices shall be sent to the following address:

          Glen Crotts
          6209 North 22nd Avenue
          Phoenix, Arizona 85015

                                       4
<PAGE>
     If sent to the Company, notices shall be sent to the following address:

          Dimensional Visions Incorporated
          2301 West Dunlap Avenue
          Suite 207
          Phoenix, Arizona  85201
          John D. McPhilimy, President

          D. WAIVER OF JURY TRIAL.  THE PAYEE AND THE COMPANY HEREBY  KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY  WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY
IN RESPECT OF ANY  LITIGATION  BASED  HEREON,  OR ARISING OUT OF,  UNDER,  OR IN
CONNECTION WITH, THIS DEBENTURE OR ANY OTHER DOCUMENT OR INSTRUMENT EXECUTED AND
DELIVERED IN CONNECTION HEREWITH,  OR ANY COURSE OF CONDUCT,  COURSE OF DEALING,
STATEMENTS (WHETHER VERBAL OR WRITTEN),  OR ACTIONS OF THE PAYEE OR THE COMPANY.
THIS  PROVISION  IS A  MATERIAL  INDUCEMENT  FOR THE  PAYEE'S  EXTENDING  CREDIT
PURSUANT TO THIS DEBENTURE.

     IN WITNESS  WHEREOF,  this Debenture has been executed and delivered on the
date specified above by the duly authorized representative of the Company.

                                        DIMENSIONAL VISIONS INCORPORATED

                                        By: /s/ John D. Mcphilimy
                                            ------------------------------------
                                            John D. McPhilimy
                                            President

                                       5

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