Document:

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                                                                    Exhibit 10.2

                                ESCROW AGREEMENT

         THIS ESCROW AGREEMENT (this "Agreement") is made and entered into as of
August 15, 2002, by Y3K SECURE ENTERPRISE  SOFTWARE INC. , a Nevada  corporation
(the "Company");  CORNELL CAPITAL PARTNERS,  LP, a Delaware limited  partnership
(the "Investor");  BUTLER GONZALEZ LLP (the "Investor's Counsel");  and WACHOVIA
BANK,  N.A., a national  banking  association,  as Escrow Agent  hereunder  (the
"Escrow Agent").

                                   BACKGROUND

         WHEREAS,  the Company and the Investor have entered into an Equity Line
of Credit Agreement (the "Equity Line of Credit Agreement") dated as of the date
hereof, pursuant to which the Investor will purchase the Company's common stock,
(the "Common Stock"),  at a price per share equal to the Purchase Price, as that
term is defined  in the  Equity  Line of Credit  Agreement.  The Equity  Line of
Credit Agreement  provides that on each Advance Date the Investor,  as that term
is defined in the Equity  Line of Credit  Agreement,  shall  deposit the Advance
pursuant to the Advance  Notice in an escrow  account to be held by Escrow Agent
and the Company shall deposit shares of the Company's Common Stock,  which shall
be  purchased  by the  Investor  as set  forth  in the  Equity  Line  of  Credit
Agreement, with the Investor's Counsel, in order to effectuate a disbursement to
the  Company  of the  Advance  by the  Escrow  Agent and a  disbursement  to the
Investor of the shares of the Company's Common Stock by Investor's  Counsel at a
closing  to be held as set forth in the  Equity  Line of Credit  Agreement  (the
"Closing").

         WHEREAS,  Escrow  Agent has agreed to accept,  hold,  and  disburse the
funds deposited with it in accordance with the terms of this Agreement.

         WHEREAS,  Investor's  Counsel has agreed to accept,  hold, and disburse
the shares of the Company's  Common Stock which have been  deposited  with it in
accordance with the terms of this Agreement.

         WHEREAS, in order to establish the escrow of funds and shares to effect
the provisions of the Equity Line of Credit  Agreement,  the parties hereto have
entered into this Agreement.

         NOW THEREFORE,  in consideration of the foregoing,  it is hereby agreed
as follows:

         1. Definitions.  The following terms shall have the following  meanings
when used herein:

              a. "Escrow Funds" shall mean the Advance funds  deposited with the
Escrow Agent pursuant to this Agreement.

              b.  "Joint  Written  Direction"  shall  mean a  written  direction
executed by the Investor and the Company  directing Escrow Agent to disburse all
or a portion of the Escrow  Funds or to take or refrain  from  taking any action
pursuant to this Agreement.

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              c. "Common  Stock Joint  Written  Direction"  shall mean a written
direction executed by the Investor and the Company directing  Investor's Counsel
to disburse all or a portion of the shares of the  Company's  Common Stock or to
refrain from taking any action pursuant to this Agreement.

         2.  Appointment  of and  Acceptance  by  Escrow  Agent  and  Investor's
Counsel.

              a. The Investor  and the Company  hereby  appoint  Escrow Agent to
serve as Escrow Agent  hereunder.  Escrow Agent hereby accepts such  appointment
and,  upon  receipt by wire  transfer  of the Escrow  Funds in  accordance  with
Section  3 below,  agrees to hold,  invest  and  disburse  the  Escrow  Funds in
accordance with this Agreement.

              b. The Investor and the Company hereby appoint  Investor's Counsel
to serve as the holder of the shares of the  Company's  Common Stock which shall
be purchased by the Investor. Investor's Counsel hereby accepts such appointment
and, upon receipt via D.W.A.C or the certificates  representing of the shares of
the Company's  Common Stock in accordance  with Section 3 below,  agrees to hold
and disburse the shares of the Company's  Common Stock in  accordance  with this
Agreement.

         3. Creation of Escrow Account/Common Stock Account.

              a. On or prior  to the date of this  Agreement  the  Escrow  Agent
shall  establish an escrow  account for the deposit of the Escrow Funds entitled
as follows:Y3K SECURE ENTERPRISE SOFTWARE INC. /Cornell Capital Partners, LP The
Investor will wire funds to the account of the Escrow Agent as follows:

Bank:                       Wachovia Bank, N.A. of New Jersey

Routing #:                  031201467

Account #:                  2020000659170

Name on Account:            Butler Gonzalez LLP/First Union as Escrow Agent

Name on Sub-Account:        Y3K SECURE ENTERPRISE SOFTWARE INC./Cornell Capital
                            Partners, LP Escrow account

Reference Sub-Account #:    _________-02

Attn:                       Robert Mercado (732) 452-3005

                            Carmela Agugliaro (732) 452-3005

Note:                       Only wire transfers shall be accepted.

              b. On or prior to the date of this  Agreement  Investor's  Counsel
shall establish an account for the D.W.A.C.  of the shares of Common Stock.  The
Company will  D.W.A.C.  shares of the  Company's  Common Stock to the account of
Investor's Counsel as follows:

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Brokerage Firm:               Investec Ernst & Co.
Account #:                    400-07595
DTC #:                        0233
Name on Account:              Butler Gonzalez LLP Escrow Account

         4. Deposits into the Escrow Account.  The Investor agrees that it shall
promptly  deliver all monies for the  payment of the Common  Stock to the Escrow
Agent for deposit in the Escrow Account.

         5. Disbursements from the Escrow Account.

              a. At such  time as  Escrow  Agent  has  collected  and  deposited
instruments  of payment in the total  amount of the Advance  and the  Investor's
Counsel has received such Common Stock via D.W.A.C from the Company which are to
be issued to the  Investor  pursuant  to the  Equity  Line of Credit  Agreement,
Investor's  Counsel shall notify the Company and the Investor.  The Escrow Agent
will  continue to hold such funds  until the  Investor  and Company  execute and
deliver a Joint  Written  Direction  directing  the Escrow Agent to disburse the
Escrow Funds pursuant to Joint Written  Direction at which time the Escrow Agent
shall wire the Escrow Funds to the Company.  In  disbursing  such funds,  Escrow
Agent is authorized to rely upon such Joint Written  Direction  from Company and
may accept any signatory  from the Company  listed on the signature page to this
Agreement and any  signature  from the Investor that Escrow Agent already has on
file.  Simultaneous with delivery of the executed Joint Written Direction to the
Escrow Agent the Investor and Company  shall  execute and deliver a Common Stock
Joint Written Direction to Investor's  Counsel directing  Investor's  Counsel to
release via D.W.A.C to the Investor the shares of the Company's Common Stock. In
releasing such shares of Common Stock  Investor's  Counsel is authorized to rely
upon such Common Stock Joint Written  Direction  from Company and may accept any
signatory  from the Company  listed on the signature  page to this Agreement and
any signature from the Investor Investor's Counsel has on file.

         In the  event the  Escrow  Agent  does not  receive  the  amount of the
Advance  from the  Investor,  the Escrow  Agent shall notify the Company and the
Investor.  In the event Investor's Counsel does not receive the shares of Common
Stock to be  purchased  by the  Investor  Investor's  Counsel  shall  notify the
Company and the Investor.

         In the event that the Escrow Agent is advised by the Investor's Counsel
that the Common Stock has not been received  from the Company,  in no event will
the Escrow  Funds be released to the Company  until such shares are  received by
the Investor's Counsel.  For purposes of this Agreement,  the term "Common Stock
certificates"  shall mean Common Stock  certificates to be purchased pursuant to
the respective Advance Notice pursuant to the Equity Line of Credit Agreement.

         6.  Collection  Procedure.  The Escrow  Agent is hereby  authorized  to
forward each wire for  collection  and, upon  collection of the proceeds of each
wire deposit the collected proceeds in the Escrow Account.

         Any wires returned  unpaid to the Escrow Agent shall be returned to the
Investor.  In such cases,  the Escrow Agent will promptly  notify the Company of
such return.

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         7. Suspension of Performance: Disbursement Into Court.

              a.  Escrow  Agent.  If at any time,  there shall exist any dispute
between the Company and the Investor with respect to holding or  disposition  of
any  portion  of the  Escrow  Funds or any other  obligations  of  Escrow  Agent
hereunder,  or if at any time  Escrow  Agent is unable to  determine,  to Escrow
Agent's sole  satisfaction,  the proper disposition of any portion of the Escrow
Funds  or  Escrow  Agent's  proper  actions  with  respect  to  its  obligations
hereunder,  or if the parties have not within thirty (30) days of the furnishing
by  Escrow  Agent of a notice  of  resignation  pursuant  to  Section  9 hereof,
appointed a successor  Escrow Agent to act hereunder,  then Escrow Agent may, in
its sole discretion, take either or both of the following actions:

              i. Suspend the  performance of any of its  obligations  (including
without  limitation any  disbursement  obligations)  under this Escrow Agreement
until such dispute or uncertainty  shall be resolved to the sole satisfaction of
Escrow Agent or until a successor  Escrow Agent shall be appointed  (as the case
may be);  provided  however,  Escrow  Agent shall  continue to invest the Escrow
Funds in accordance with Section 8 hereof; and/or

              ii.  petition  (by  means of an  interpleader  action or any other
appropriate method) any court of competent  jurisdiction in any venue convenient
to Escrow Agent, for  instructions  with respect to such dispute or uncertainty,
and to the  extent  required  by law,  pay into  such  court,  for  holding  and
disposition in accordance with the instructions of such court, all funds held by
it in the Escrow Funds,  after deduction and payment to Escrow Agent of all fees
and expenses  (including  court costs and attorneys'  fees) payable to, incurred
by, or expected to be incurred by Escrow Agent in connection with performance of
its duties and the exercise of its rights hereunder.

              iii.  Escrow Agent shall have no  liability  to the  Company,  the
Investor,  or any person with respect to any such  suspension of  performance or
disbursement  into  court,  specifically  including  any  liability  or  claimed
liability that may arise, or be alleged to have arisen, out of or as a result of
any delay in the  disbursement of funds held in the Escrow Funds or any delay in
with respect to any other action required or requested of Escrow Agent.

              b.  Investor's  Counsel.  If at any time,  there  shall  exist any
dispute  between  the  Company  and the  Investor  with  respect  to  holding or
disposition  of  any  portion  of the  shares  of  Common  Stock  or  any  other
obligations  of  Investor's  Counsel  hereunder,  or if at any  time  Investor's
Counsel is unable to determine,  to Investor's Counsel's sole satisfaction,  the
proper  disposition  of any portion of the shares of Common Stock or  Investor's
Counsel's  proper  actions  with  respect  to its  obligations  hereunder,  then
Investor's  Counsel  may,  in its sole  discretion,  take  either or both of the
following actions:

              i. suspend the  performance of any of its  obligations  (including
without  limitation any  disbursement  obligations)  under this Escrow Agreement
until such dispute or uncertainty  shall be resolved to the sole satisfaction of
Investor's Counsel or until a successor shall be appointed (as the case may be);
and/or

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              ii.  petition  (by  means of an  interpleader  action or any other
appropriate method) any court of competent  jurisdiction in any venue convenient
to  Investor's  Counsel,  for  instructions  with  respect  to such  dispute  or
uncertainty, and to the extent required by law, pay into such court, for holding
and disposition in accordance with the instructions of such court, all shares of
the  Company's  Common  Stock funds held by it, after  deduction  and payment to
Investor's  Counsel  of  all  fees  and  expenses  (including  court  costs  and
attorneys'  fees)  payable  to,  incurred  by, or  expected  to be  incurred  by
Investor's Counsel in connection with performance of its duties and the exercise
of its rights hereunder.

              iii.  Investor's  Counsel  shall have no liability to the Company,
the Investor,  or any person with respect to any such  suspension of performance
or  disbursement  into court,  specifically  including  any liability or claimed
liability that may arise, or be alleged to have arisen, out of or as a result of
any delay in the release of shares of the Company's Common Stock or any delay in
with respect to any other action required or requested of Investor's Counsel.

         8.  Investment  of Escrow  Funds.  The Escrow  Agent shall  deposit the
Escrow Funds in a non-interest bearing money market account.

         If Escrow Agent has not received a Joint Written  Direction at any time
that an investment  decision must be made,  Escrow Agent shall invest the Escrow
Fund, or such portion thereof,  as to which no Joint Written  Direction has been
received,  in investments  described above. The foregoing  investments  shall be
made by the Escrow Agent.  Notwithstanding  anything to the contrary  contained,
Escrow Agent may,  without  notice to the parties,  sell or liquidate any of the
foregoing  investments at any time if the proceeds  thereof are required for any
release of funds permitted or required hereunder,  and Escrow Agent shall not be
liable or responsible for any loss, cost or penalty resulting from any such sale
or liquidation.

         9.  Resignation  and Removal of Escrow  Agent.  Escrow Agent may resign
from the  performance of its duties  hereunder at any time by giving thirty (30)
days' prior  written  notice to the  parties or may be removed,  with or without
cause, by the parties,  acting jointly,  by furnishing a Joint Written Direction
to Escrow  Agent,  at any time by the  giving of ten (10)  days'  prior  written
notice  to  Escrow  Agent as  provided  herein  below.  Upon any such  notice of
resignation  or removal,  the  representatives  of the  Investor and the Company
identified  in Sections  15a.(iv) and 15b.(iv),  below,  jointly shall appoint a
successor  Escrow  Agent  hereunder,  which shall be a  commercial  bank,  trust
company or other financial  institution  with a combined  capital and surplus in
excess of  $10,000,000.00.  Upon the acceptance in writing of any appointment of
Escrow Agent hereunder by a successor Escrow Agent,  such successor Escrow Agent
shall  thereupon  succeed  to and become  vested  with all the  rights,  powers,
privileges  and duties of the retiring  Escrow  Agent,  and the retiring  Escrow
Agent  shall be  discharged  from its duties and  obligations  under this Escrow
Agreement,  but shall not be discharged  from any liability for actions taken as
Escrow Agent  hereunder  prior to such  succession.  After any  retiring  Escrow
Agent's  resignation or removal,  the provisions of this Escrow  Agreement shall
inure to its benefit as to any actions  taken or omitted to be taken by it while
it was Escrow Agent under this Escrow Agreement. The retiring Escrow Agent shall
transmit all records pertaining to the Escrow Funds and shall pay all funds held
by it in the Escrow Funds to the successor Escrow Agent,  after making copies of
such records as the retiring  Escrow Agent deems  advisable and after  deduction
and payment to the retiring  Escrow  Agent of all fees and  expenses  (including
court costs and  attorneys'  fees)  payable to,  incurred  by, or expected to be
incurred by the retiring  Escrow Agent in connection with the performance of its
duties and the exercise of its rights hereunder.

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         10. Liability of Escrow Agent.

              a. Escrow Agent shall have no liability or obligation with respect
to the Escrow  Funds  except  for Escrow  Agent's  willful  misconduct  or gross
negligence.  Escrow Agent's sole  responsibility  shall be for the  safekeeping,
investment, and disbursement of the Escrow Funds in accordance with the terms of
this  Agreement.  Escrow Agent shall have no implied duties or  obligations  and
shall not be charged with  knowledge or notice or any fact or  circumstance  not
specifically  set forth herein.  Escrow Agent may rely upon any instrument,  not
only as to its due  execution,  validity and  effectiveness,  but also as to the
truth and  accuracy of any  information  contained  therein,  which Escrow Agent
shall in good faith  believe to be genuine,  to have been signed or presented by
the person or parties  purporting to sign the same and conform to the provisions
of this  Agreement.  In no event shall  Escrow  Agent be liable for  incidental,
indirect, special, and consequential or punitive damages. Escrow Agent shall not
be obligated to take any legal action or commence any  proceeding  in connection
with the Escrow  Funds,  any account in which Escrow Funds are  deposited,  this
Agreement or the Equity Line of Credit Agreement,  or to appear in, prosecute or
defend any such legal  action or  proceeding.  Escrow  Agent may  consult  legal
counsel  selected  by  it  in  any  event  of  any  dispute  or  question  as to
construction  of any of the provisions  hereof or of any other  agreement or its
duties  hereunder,  or relating to any dispute  involving any party hereto,  and
shall  incur no  liability  and shall be fully  indemnified  from any  liability
whatsoever  in acting in  accordance  with the opinion or  instructions  of such
counsel.  The Company and the Investor jointly and severally shall promptly pay,
upon demand, the reasonable fees and expenses of any such counsel.

              b. The Escrow Agent is hereby authorized,  in its sole discretion,
to comply with orders issued or process entered by any court with respect to the
Escrow  Funds,  without  determination  by the  Escrow  Agent  of  such  court's
jurisdiction  in the matter.  If any portion of the Escrow  Funds is at any time
attached,  garnished  or  levied  upon  under any  court  order,  or in case the
payment, assignment, transfer, conveyance or delivery of any such property shall
be stayed or enjoined by any court order,  or in any case any order  judgment or
decree shall be made or entered by any court affecting such property or any part
thereof, then and in any such event, the Escrow Agent is authorized, in its sole
discretion, to rely upon and comply with any such order, writ judgment or decree
which it is advised by legal counsel  selected by it,  binding upon it,  without
the need for appeal or other action;  and if the Escrow Agent  complies with any
such  order,  writ,  judgment  or  decree,  it shall not be liable to any of the
parties  hereto  or to any other  person or entity by reason of such  compliance
even though such order,  writ judgment or decree may be  subsequently  reversed,
modified, annulled, set aside or vacated.

         11. Liability of Investor's Counsel.

              a.  Notwithstanding  any  liability   attributable  to  Investor's
Counsel as counsel to the Investor,  Investor's  Counsel shall have no liability
or obligation  with respect to the shares of the  Company's  Common Stock except
for Investor's  Counsel's  willful  misconduct or gross  negligence.  Investor's
Counsel's sole  responsibility  shall be for the  safekeeping and release of the
shares  of the  Company's  Common  Stock in  accordance  with the  terms of this
Agreement.

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Investor's  Counsel shall have no implied duties or obligations and shall not be
charged with knowledge or notice or any fact or  circumstance  not  specifically
set forth herein.  Investor's Counsel may rely upon any instrument,  not only as
to its due execution,  validity and effectiveness,  but also as to the truth and
accuracy of any information contained therein, which Investor's Counsel shall in
good faith believe to be genuine, to have been signed or presented by the person
or parties  purporting  to sign the same and conform to the  provisions  of this
Agreement.  In no event  shall  Investor's  Counsel  be liable  for  incidental,
indirect,  special,  and consequential or punitive damages.  Investor's  Counsel
shall not be obligated to take any legal  action or commence any  proceeding  in
connection with the shares of the Company's  Common Stock,  any account in which
shares of Common  Stock  are  deposited  and this  Agreement,  or to appear  in,
prosecute or defend any such legal action or proceeding.  Investor's Counsel may
consult legal counsel  selected by it in any event of any dispute or question as
to construction of any of the provisions hereof or of any other agreement or its
duties  hereunder,  or relating to any dispute  involving any party hereto,  and
shall  incur no  liability  and shall be fully  indemnified  from any  liability
whatsoever  in acting in  accordance  with the opinion or  instructions  of such
counsel.  The Company and the Investor jointly and severally shall promptly pay,
upon demand, the reasonable fees and expenses of any such counsel.

              b.  Investor's   Counsel  is  hereby   authorized,   in  its  sole
discretion,  to comply with orders  issued or process  entered by any court with
respect to the shares of the Company's  Common Stock,  without  determination by
Butler Gonzalez of such court's  jurisdiction  in the matter.  If any portion of
the shares of the Company's Common Stock are at any time attached,  garnished or
levied upon under any court order, or in case the payment, assignment, transfer,
conveyance or delivery of any such  property  shall be stayed or enjoined by any
court  order,  or in any case any  order  judgment  or  decree  shall be made or
entered by any court  affecting  such property or any part thereof,  then and in
any such event, the Investor's Counsel is authorized, in its sole discretion, to
rely upon and comply with any such order,  writ  judgment or decree  which it is
advised by legal counsel  selected by it,  binding upon it, without the need for
appeal or other action;  and if Investor's Counsel complies with any such order,
writ, judgment or decree, it shall not be liable to any of the parties hereto or
to any other  person or entity by reason of such  compliance  even  though  such
order, writ judgment or decree may be subsequently reversed, modified, annulled,
set aside or vacated.

         12.  Indemnification  of Escrow Agent.  From and at all times after the
date of this Agreement, the parties jointly and severally, shall, to the fullest
extent  permitted by law and to the extent provided  herein,  indemnify and hold
harmless Escrow Agent and each director, officer, employee,  attorney, agent and
affiliate of Escrow Agent (collectively,  the "Indemnified Parties") against any
and all actions,  claims (whether or not valid), losses,  damages,  liabilities,
costs  and  expenses  of  any  kind  or  nature  whatsoever  (including  without
limitation  reasonable  attorney's  fees,  costs and  expenses)  incurred  by or
asserted against any of the Indemnified  Parties from and after the date hereof,
whether direct, indirect or consequential,  as a result of or arising from or in
any way relating to any claim,  demand,  suit, action, or proceeding  (including
any inquiry or  investigation) by any person,  including without  limitation the
parties to this Agreement,  whether  threatened or initiated,  asserting a claim
for any legal or  equitable  remedy  against  any  person  under any  statute or
regulation, including, but not limited to, any federal or state securities laws,
or under any common law or  equitable  cause or  otherwise,  arising  from or in
connection with the negotiation,  preparation, execution, performance or failure
of performance

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of this Agreement or any  transaction  contemplated  herein,  whether or not any
such Indemnified Party is a party to any such action or proceeding,  suit or the
target  of any  such  inquiry  or  investigation;  provided,  however,  that  no
Indemnified Party shall have the right to be indemnified hereunder for liability
finally determined by a court of competent  jurisdiction,  subject to no further
appeal, to have resulted solely from the gross negligence or willful  misconduct
of such  Indemnified  Party.  If any such  action or claim  shall be  brought or
asserted against any Indemnified  Party,  such Indemnified  Party shall promptly
notify the  Company  and the  Investor  hereunder  in  writing,  and the and the
Company shall assume the defense  thereof,  including the  employment of counsel
and the payment of all  expenses.  Such  Indemnified  Party  shall,  in its sole
discretion,  have the right to employ  separate  counsel (who may be selected by
such  Indemnified  Party  in its sole  discretion)  in any  such  action  and to
participate and to participate in the defense thereof, and the fees and expenses
of such  counsel  shall  be paid by such  Indemnified  Party,  except  that  the
Investor  and/or the  Company  shall be required to pay such fees and expense if
(a) the Investor or the Company agree to pay such fees and expenses,  or (b) the
Investor  and/or the Company  shall fail to assume the defense of such action or
proceeding or shall fail, in the sole discretion of such  Indemnified  Party, to
employ counsel  reasonably  satisfactory  to the  Indemnified  Party in any such
action or proceeding,  (c) the Investor and the Company are the plaintiff in any
such  action or  proceeding  or (d) the named or  potential  parties to any such
action or proceeding  (including any potentially impleaded parties) include both
Indemnified  Party the Company and/or the Investor and  Indemnified  Party shall
have been  advised  by  counsel  that  there may be one or more  legal  defenses
available to it which are different from or additional to those available to the
Company or the  Investor.  The  Investor  and the  Company  shall be jointly and
severally  liable to pay fees and expenses of counsel  pursuant to the preceding
sentence, except that any obligation to pay under clause (a) shall apply only to
the party so agreeing.  All such fees and expenses payable by the Company and/or
the Investor pursuant to the foregoing  sentence shall be paid from time to time
as incurred,  both in advance of and after the final  disposition of such action
or claim.  The  obligations  of the parties under this section shall survive any
termination of this  Agreement,  and  resignation or removal of the Escrow Agent
shall be independent of any obligation of Escrow Agent.

         13.  Indemnification of Investor's Counsel. From and at all times after
the date of this  Agreement,  the parties  jointly and severally,  shall, to the
fullest extent permitted by law and to the extent provided herein, indemnify and
hold harmless Investor's Counsel and each partner, director,  officer, employee,
attorney,   agent  and  affiliate  of  Investor's  Counsel  (collectively,   the
"Indemnified  Parties")  against  any and all  actions,  claims  (whether or not
valid), losses, damages,  liabilities,  costs and expenses of any kind or nature
whatsoever  (including without limitation  reasonable attorney's fees, costs and
expenses)  incurred by or asserted  against any of the Indemnified  Parties from
and after the date  hereof,  whether  direct,  indirect or  consequential,  as a
result of or arising  from or in any way  relating to any claim,  demand,  suit,
action,  or proceeding  (including any inquiry or  investigation) by any person,
including without  limitation the parties to this Agreement,  whether threatened
or initiated,  asserting a claim for any legal or equitable  remedy  against any
person  under any  statute or  regulation,  including,  but not  limited to, any
federal or state  securities laws, or under any common law or equitable cause or
otherwise,  arising from or in  connection  with the  negotiation,  preparation,
execution,  performance  or  failure of  performance  of this  Agreement  or any
transaction  contemplated herein, whether or not any such Indemnified Party is a
party to any such action or  proceeding,  suit or the target of any such inquiry
or investigation;  provided,  however,  that no Indemnified Party shall have the
right to be

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indemnified  hereunder for liability finally  determined by a court of competent
jurisdiction,  subject to no further  appeal,  to have resulted  solely from the
gross negligence or willful  misconduct of such  Indemnified  Party. If any such
action or claim shall be brought or asserted against any Indemnified Party, such
Indemnified  Party shall promptly notify the Company and the Investor  hereunder
in writing,  and the Investor and the Company shall assume the defense  thereof,
including  the  employment  of counsel  and the  payment of all  expenses.  Such
Indemnified  Party  shall,  in its sole  discretion,  have the  right to  employ
separate  counsel  (who may be  selected by such  Indemnified  Party in its sole
discretion)  in any such action and to  participate  and to  participate  in the
defense thereof, and the fees and expenses of such counsel shall be paid by such
Indemnified Party, except that the Investor and/or the Company shall be required
to pay such fees and expense if (a) the  Investor  or the  Company  agree to pay
such fees and  expenses,  or (b) the Investor  and/or the Company  shall fail to
assume the  defense of such  action or  proceeding  or shall  fail,  in the sole
discretion of such Indemnified Party, to employ counsel reasonably  satisfactory
to the Indemnified Party in any such action or proceeding,  (c) the Investor and
the Company are the  plaintiff in any such action or proceeding or (d) the named
or potential parties to any such action or proceeding (including any potentially
impleaded  parties)  include  both  Indemnified  Party the  Company  and/or  the
Investor and the Indemnified Party shall have been advised by counsel that there
may be one or more legal  defenses  available to it which are different  from or
additional to those  available to the Company or the Investor.  The Investor and
the Company  shall be jointly and  severally  liable to pay fees and expenses of
counsel  pursuant to the preceding  sentence,  except that any obligation to pay
under  clause (a) shall apply only to the party so  agreeing.  All such fees and
expenses  payable by the Company  and/or the Investor  pursuant to the foregoing
sentence  shall be paid from time to time as  incurred,  both in  advance of and
after the final  disposition  of such action or claim.  The  obligations  of the
parties under this section shall survive any termination of this Agreement.

         14.  Expenses  of Escrow  Agent.  Except as set forth in Section 12 the
Company shall  reimburse  Escrow Agent for all of its  reasonable  out-of-pocket
expenses,  including  attorneys' fees, travel expenses,  telephone and facsimile
transmission  costs,  postage  (including  express mail and  overnight  delivery
charges),   copying  charges  and  the  like.  All  of  the   compensation   and
reimbursement  obligations  set forth in this  Section  shall be  payable by the
Company,  upon demand by Escrow Agent. The obligations of the Company under this
Section shall survive any  termination of this Agreement and the  resignation or
removal of Escrow Agent.

         15. Warranties.

              a. The Investor makes the following representations and warranties
to the Escrow Agent and Investor's Counsel:

              i. The  Investor  has full  power and  authority  to  execute  and
deliver this Agreement and to perform its obligations hereunder.

              ii. This Agreement has been duly approved by all necessary  action
of the Investor,  including any necessary approval of the limited partner of the
Investor,  has been  executed  by duly  authorized  officers  of the  Investor's
general partner, enforceable in accordance with its terms.

                                       9
<PAGE>

              iii. The execution,  delivery,  and performance of the Investor of
this  Agreement  will not violate,  conflict  with, or cause a default under the
agreement  of  limited  partnership  of  the  Investor,  any  applicable  law or
regulation,  any  court  order or  administrative  ruling or degree to which the
Investor  is a  party  or any of its  property  is  subject,  or any  agreement,
contract, indenture, or other binding arrangement.

              iv.  Mark  A.  Angelo  has  been  duly  appointed  to  act  as the
representative  of  Investor  hereunder  and has full  power  and  authority  to
execute,  deliver, and perform this Agreement,  to execute and deliver any Joint
Written Direction,  to amend,  modify, or waive any provision of this Agreement,
and to take any and all other  actions as the  Investor's  representative  under
this Agreement, all without further consent or direction form, or notice to, the
Investor or any other party.

              v. No party other than the parties hereto have, or shall have, any
lien,  claim or security  interest in the Escrow Funds or any part  thereof.  No
financing  statement  under  the  Uniform  Commercial  Code  is on  file  in any
jurisdiction claiming a security interest in or describing (whether specifically
or generally) the Escrow Funds or any part thereof.

              vi. All of the  representations  and  warranties  of the  Investor
contained  herein are true and  complete  as of the date hereof and will be true
and complete at the time of any disbursement from the Escrow Funds.

            b. The Company makes the following  representations and warranties
to Escrow Agent, the Investor and Investor's Counsel:

              i. The Company is a corporation duly organized,  validly existing,
and in good standing  under the laws of the State of Nevada,  and has full power
and  authority  to  execute  and  deliver  this  Agreement  and to  perform  its
obligations hereunder.

              ii.  This  Agreement  has  been  duly  approved  by all  necessary
corporate action of the Company,  including any necessary  shareholder approval,
has been executed by duly  authorized  officers of the Company,  enforceable  in
accordance with its terms.

              iii. The execution,  delivery,  and  performance by the Company of
this Escrow  Agreement is in accordance with the Equity Line of Credit Agreement
and will not violate, conflict with, or cause a default under the certificate of
incorporation  or bylaws of the Company,  any applicable law or regulation,  any
court order or  administrative  ruling or decree to which the Company is a party
or any of its property is subject,  or any agreement,  contract,  indenture,  or
other binding arrangement.

              iv. King Cole has been duly appointed to act as the representative
of the Company  hereunder and has full power and authority to execute,  deliver,
and perform this Agreement,  to execute and deliver any Joint Written Direction,
to amend,  modify or waive any provision of this Agreement and to take all other
actions as the  Company's  Representative  under  this  Agreement,  all  without
further consent or direction from, or notice to, the Company or any other party.

                                       10
<PAGE>

              v. No party other than the parties  hereto  shall have,  any lien,
claim or security interest in the Escrow Funds or any part thereof. No financing
statement  under  the  Uniform  Commercial  Code is on file in any  jurisdiction
claiming  a  security  interest  in  or  describing  (whether   specifically  or
generally) the Escrow Funds or any part thereof.

              vi.  All of the  representations  and  warranties  of the  Company
contained  herein are true and  complete  as of the date hereof and will be true
and complete at the time of any disbursement from the Escrow Funds.

         16.  Consent to  Jurisdiction  and  Venue.  In the event that any party
hereto commences a lawsuit or other proceeding  relating to or arising from this
Agreement,  the parties  hereto agree that the United States  District Court for
the District of New Jersey shall have the sole and exclusive  jurisdiction  over
any  such   proceeding.   If  all  such  courts  lack  federal   subject  matter
jurisdiction,  the parties agree that the Superior Court Division of New Jersey,
Chancery  Division of Essex County shall have sole and  exclusive  jurisdiction.
Any of these  courts  shall be proper  venue for any such  lawsuit  or  judicial
proceeding and the parties hereto waive any objection to such venue. The parties
hereto consent to and agree to submit to the  jurisdiction  of any of the courts
specified  herein  and agree to accept the  service of process to vest  personal
jurisdiction over them in any of these courts.

         17. Notice. All notices and other communications  hereunder shall be in
writing and shall be deemed to have been validly served, given or delivered five
(5) days after deposit in the United States mails, by certified mail with return
receipt requested and postage prepaid,  when delivered  personally,  one (1) day
delivered  to  any  overnight   courier,   or  when   transmitted  by  facsimile
transmission and addressed to the party to be notified as follows:

If to Investor, to:             Cornell Capital Partners, LP
                                101 Hudson Street - Suite 3606
                                Jersey City, New Jersey  07302
                                Attention:        Mark Angelo
                                Facsimile:        (201) 985-8266

With copy to:                   Butler Gonzalez LLP
                                1000 Stuyvesant Avenue - Suite 6
                                Union, New Jersey 07083
                                Attention:        David Gonzalez, Esq.
                                Facsimile:        (908) 810-0973

If to Company, to:              Y3K SECURE ENTERPRISE SOFTWARE INC.
                                108 West Stewart Avenue
                                Puyallup, Washington, 98371
                                Attention: King Cole
                                Telephone:  (253) 284-2935
                                Facsimile:   (253) 284-2944

With a copy to:                 The Law Office of Jack G. Orr
                                Attention: Jack G. Orr, Esq.
                                3019 Narrows Place
                                Tacoma, Washington
                                Telephone: (253) 756-9795

                                       11
<PAGE>

If to the Escrow Agent, to:     Wachovia Bank, N.A.,
                                407 Main Street
                                Metuchen, New Jersey  08840
                                Attention:  Robert Mercado
                                            Carmela Agugliaro
                                Facsimile:  (732) 548-5973

         Or to such other address as each party may designate for itself by like
notice.

         18.  Amendments  or Waiver.  This  Agreement  may be  changed,  waived,
discharged or terminated  only by a writing  signed by the parties of the Escrow
Agent.  No delay or omission by any party in  exercising  any right with respect
hereto  shall  operate  as  waiver.  A waiver on any one  occasion  shall not be
construed as a bar to, or waiver of, any right or remedy on any future occasion.

         19.  Severability.  To the extent any  provision  of this  Agreement is
prohibited  by  or  invalid  under  applicable  law,  such  provision  shall  be
ineffective  to  the  extent  of  such  prohibition,   or  invalidity,   without
invalidating the remainder of such provision or the remaining provisions of this
Agreement.

         20. Governing Law. This Agreement shall be construed and interpreted in
accordance  with the  internal  laws of the State of New Jersey  without  giving
effect to the conflict of laws principles thereof.

         21. Entire Agreement.  This Agreement  constitutes the entire Agreement
between the parties relating to the holding, investment, and disbursement of the
Escrow Funds and sets forth in their entirety the  obligations and duties of the
Escrow  Agent  with  respect to the Escrow  Funds.  The terms of this  Agreement
should be read in  conjunction  with the  Equity  Line of Credit  Agreement  and
should there be a conflict of terms,  the language and intent of the Equity Line
of Credit Agreement shall govern.

         22. Binding Effect. All of the terms of this Agreement, as amended from
time to time,  shall be binding upon, inure to the benefit of and be enforceable
by the respective heirs, successors and assigns of the Investor, the Company, or
the Escrow Agent.

         23.  Execution of  Counterparts.  This  Agreement and any Joint Written
Direction  may be  executed  in  counter  parts,  which when so  executed  shall
constitute one and same agreement or direction.

         24.  Termination.  Upon the first to occur of the  disbursement  of all
amounts in the  Escrow  Funds,  as  defined  above,  pursuant  to Joint  Written
Directions  or the  disbursement  of all amounts in the Escrow  Funds into court
pursuant to Section 7 hereof,  this Agreement  shall  terminate and Escrow Agent
shall have no further  obligation or liability  whatsoever  with respect to this
Agreement or the Escrow Funds.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       12
<PAGE>

         IN WITNESS  WHEREOF the parties have hereunto set their hands and seals
the day and year above set forth.

                            Y3K SECURE ENTERPRISE SOFTWARE INC.
                            By: /s/ King Cole
                               -----------------------------------
                            Name:    King Cole
                            Title:   President

                            WACHOVIA BANK, N.A.

                            By: /s/ Robert Mercado
                              ------------------------------------
                            Name:    Robert Mercado
                            Title:   As the Escrow Agent

                            CORNELL CAPITAL PARTNERS, LP

                            By:      Yorkville Advisors, LLC
                            Its:     General Partner

                            By: /s/ Mark Angelo
                              -----------------------------------
                            Name:    Mark A. Angelo
                            Title:   Portfolio Manager

                            BUTLER GONZALEZ LLP

                            By: /s/ David Gonzalez
                              -----------------------------------
                            Name:    David Gonzalez, Esq.
                            Title:   Partner

                                       13<PAGE>

                                                                    Exhibit 10.3

                          REGISTRATION RIGHTS AGREEMENT

         REGISTRATION  RIGHTS AGREEMENT (this  "Agreement"),  dated as of August
15,  2002  by  and  between  Y3K  SECURE  ENTERPRISE  SOFTWARE  INC.,  a  Nevada
corporation,  with its  principal  office  located at 108 West  Stewart  Avenue,
Puyallup, Washington, 98371 (the "Company"), and CORNELL CAPITAL PARTNERS, LP, a
Delaware limited partnership (the "Investor").

         WHEREAS:

         A. In  connection  with the  Equity  Line of  Credit  Agreement  by and
between the parties  hereto of even date  herewith  (the  "Equity Line of Credit
Agreement"),  the  Company  has  agreed,  upon  the  terms  and  subject  to the
conditions  of the  Equity  Line of Credit  Agreement,  to issue and sell to the
Investor  that number of shares of the Company's  common stock,  par value $.001
per share (the "Common Stock"),  which can be purchased pursuant to the terms of
the Equity Line Credit Agreement for an aggregate  purchase price of up to Seven
Million Dollars  ($7,000,000) . Capitalized  terms not defined herein shall have
the meaning ascribed to them in the Equity Line of Credit Agreement.

         B. To induce the  Investor  to execute  and  deliver the Equity Line of
Credit Agreement,  the Company has agreed to provide certain registration rights
under the  Securities  Act of 1933,  as amended,  and the rules and  regulations
there under, or any similar  successor statute  (collectively,  the "1933 Act"),
and applicable state securities laws.

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

         1. DEFINITIONS.

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

              a. "Person" means a corporation,  a limited liability company,  an
association,  a partnership,  an  organization,  a business,  an  individual,  a
governmental or political subdivision thereof or a governmental agency.

              b.  "Register,"   "registered,"  and  "registration"  refer  to  a
registration   effected  by  preparing  and  filing  one  or  more  Registration
Statements  (as defined  below) in compliance  with the 1933 Act and pursuant to
Rule 415  under  the 1933  Act or any  successor  rule  providing  for  offering
securities on a continuous or delayed basis ("Rule 415"), and the declaration or
ordering of effectiveness of such Registration Statement(s) by the United States
Securities and Exchange Commission (the "SEC").

              c.  "Registrable  Securities"  means the  shares  of Common  Stock
issuable to Investors pursuant to the Equity Line of Credit Agreement.

<PAGE>

              d. "Registration  Statement" means a registration  statement under
the 1933 Act which covers the Registrable Securities.

         2. REGISTRATION.

              a. Mandatory Registration. The Company shall prepare and file with
the SEC a  Registration  Statement on Form S-1, SB-2 or on such other form as is
available.  The Company shall cause such  Registration  Statement to be declared
effective by the SEC prior to the first sale to Investor of the Company's Common
Stock pursuant to the Equity Line of Credit Agreement.

              b. Sufficient Number of Shares Registered. In the event the number
of shares  available  under a Registration  Statement  filed pursuant to Section
2(a) is  insufficient  to cover  all of the  Registrable  Securities  which  the
Investor  has  purchased  pursuant to the Equity Line of Credit  Agreement,  the
Company  shall  amend the  Registration  Statement,  or file a new  Registration
Statement (on the short form available therefore, if applicable), or both, so as
to cover all of such  Registrable  Securities  which the Investor has  purchased
pursuant to the Equity Line of Credit  Agreement as soon as practicable,  but in
any event not later than fifteen (15) days after the necessity therefore arises.
The  Company  shall use it best  efforts  to cause  such  amendment  and/or  new
Registration  Statement to become effective as soon as practicable following the
filing thereof.  For purposes of the foregoing  provision,  the number of shares
available under a Registration  Statement shall be deemed "insufficient to cover
all of the  Registrable  Securities"  if at any time the  number of  Registrable
Securities  issuable  on an Advance  Notice  Date is greater  than the number of
shares available for resale under such Registration Statement.

         3. RELATED OBLIGATIONS.

              a. The Company  shall keep the  Registration  Statement  effective
pursuant  to Rule 415 at all times  until the date on which the  Investor  shall
have sold all the Registrable  Securities covered by such Registration Statement
(the  "Registration  Period"),   which  Registration  Statement  (including  any
amendments or supplements thereto and prospectuses  contained therein) shall not
contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein,  or necessary to make the statements  therein, in
light of the circumstances in which they were made, not misleading.

              b. The Company shall prepare and file with the SEC such amendments
(including   post-effective   amendments)  and  supplements  to  a  Registration
Statement  and  the  prospectus  used  in  connection  with  such   Registration
Statement,  which  prospectus  is to be filed  pursuant to Rule 424  promulgated
under the 1933 Act,  as may be  necessary  to keep such  Registration  Statement
effective at all times during the Registration  Period, and, during such period,
comply with the  provisions of the 1933 Act with respect to the  disposition  of
all Registrable Securities of the Company covered by such Registration Statement
until such time as all of such  Registrable  Securities shall have been disposed
of in  accordance  with the  intended  methods of  disposition  by the seller or
sellers  thereof  as set forth in such  Registration  Statement.  In the case of
amendments and supplements to a Registration  Statement which are required to be
filed  pursuant to this Agreement  (including  pursuant to this Section 3(b)) by
reason of the Company's filing a report on Form 10-KSB,  Form 10-QSB or Form 8-K
or any analogous  report under the  Securities  Exchange Act of 1934, as amended
(the "1934 Act"), the Company shall have  incorporated  such report by reference
into the Registration Statement, if applicable, or shall file such amendments or
supplements  with the SEC on the same day on which the 1934 Act  report is filed
which  created  the  requirement  for the  Company  to amend or  supplement  the
Registration Statement.

                                       2
<PAGE>

              c. The Company shall furnish to the Investor  without charge,  (i)
at least one copy of such  Registration  Statement as declared  effective by the
SEC and any amendment(s) thereto,  including financial statements and schedules,
all  documents  incorporated  therein  by  reference,   all  exhibits  and  each
preliminary prospectus, (ii) ten (10) copies of the final prospectus included in
such Registration  Statement and all amendments and supplements thereto (or such
other number of copies as such Investor may  reasonably  request) and (iii) such
other  documents as such  Investor may  reasonably  request from time to time in
order to facilitate the disposition of the Registrable  Securities owned by such
Investor.

              d. The  Company  shall use its best  efforts to (i)  register  and
qualify the  Registrable  Securities  covered by a Registration  Statement under
such other  securities  or "blue sky" laws of such  jurisdictions  in the United
States as the  Investor  reasonably  requests,  (ii)  prepare  and file in those
jurisdictions,   such  amendments  (including  post-effective   amendments)  and
supplements  to such  registrations  and  qualifications  as may be necessary to
maintain the effectiveness  thereof during the Registration  Period,  (iii) take
such other  actions as may be  necessary  to  maintain  such  registrations  and
qualifications in effect at all times during the Registration  Period,  and (iv)
take all  other  actions  reasonably  necessary  or  advisable  to  qualify  the
Registrable Securities for sale in such jurisdictions;  provided,  however, that
the  Company  shall not be required in  connection  therewith  or as a condition
thereto to (w) make any change to its certificate of  incorporation  or by-laws,
(x) qualify to do business in any  jurisdiction  where it would not otherwise be
required to qualify but for this  Section  3(d),  (y) subject  itself to general
taxation in any such  jurisdiction,  or (z) file a general consent to service of
process in any such jurisdiction. The Company shall promptly notify the Investor
of the receipt by the Company of any notification with respect to the suspension
of the registration or  qualification  of any of the Registrable  Securities for
sale under the securities or "blue sky" laws of any  jurisdiction  in the United
States or its  receipt  of  actual  notice  of the  initiation  or threat of any
proceeding for such purpose.

              e. As promptly as  practicable  after becoming aware of such event
or  development,  the  Company  shall  notify  the  Investor  in  writing of the
happening  of any  event  as a result  of which  the  prospectus  included  in a
Registration  Statement,  as then in effect,  includes an untrue  statement of a
material fact or omission to state a material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances under
which they were  made,  not  misleading  (provided  that in no event  shall such
notice  contain any material,  nonpublic  information),  and promptly  prepare a
supplement  or amendment to such  Registration  Statement to correct such untrue
statement  or  omission,  and  deliver  ten (10)  copies of such  supplement  or
amendment to each Investor.  The Company shall also promptly notify the Investor
in writing (i) when a prospectus or any prospectus  supplement or post-effective
amendment   has  been  filed,   and  when  a   Registration   Statement  or  any
post-effective   amendment   has   become   effective   (notification   of  such
effectiveness shall be delivered to the Investor by facsimile on the same day of
such  effectiveness),  (ii)  of  any  request  by  the  SEC  for  amendments  or
supplements  to a  Registration  Statement  or  related  prospectus  or  related
information,  and  (iii)  of  the  Company's  reasonable  determination  that  a
post-effective amendment to a Registration Statement would be appropriate.

                                       3
<PAGE>

              f. The Company  shall use its best efforts to prevent the issuance
of any  stop  order or  other  suspension  of  effectiveness  of a  Registration
Statement,  or the  suspension of the  qualification  of any of the  Registrable
Securities for sale in any jurisdiction within the United States of America and,
if such an order or suspension is issued, to obtain the withdrawal of such order
or suspension at the earliest  possible moment and to notify the Investor of the
issuance  of such  order and the  resolution  thereof  or its  receipt of actual
notice of the initiation or threat of any proceeding for such purpose.

              g. At the  reasonable  request of the Investor,  the Company shall
furnish to the Investor,  on the date of the  effectiveness  of the Registration
Statement  and  thereafter  from time to time on such dates as the  Investor may
reasonably request (i) a letter, dated such date, from the Company's independent
certified  public  accountants in form and substance as is customarily  given by
independent  certified  public  accountants to  underwriters  in an underwritten
public  offering,  and  (ii) an  opinion,  dated  as of such  date,  of  counsel
representing the Company for purposes of such Registration  Statement,  in form,
scope and substance as is customarily given in an underwritten  public offering,
addressed to the Investor.

              h. The Company  shall make  available  for  inspection  by (i) the
Investor  and (ii) one firm of  accountants  or  other  agents  retained  by the
Investor  (collectively,  the  "Inspectors")  all pertinent  financial and other
records,  and  pertinent  corporate  documents  and  properties  of the  Company
(collectively,  the "Records"),  as shall be reasonably deemed necessary by each
Inspector,  and cause the Company's officers,  directors and employees to supply
all information which any Inspector may reasonably request;  provided,  however,
that each Inspector  shall agree,  and the Investor  hereby  agrees,  to hold in
strict  confidence and shall not make any disclosure  (except to an Investor) or
use of any Record or other  information  which the  Company  determines  in good
faith to be  confidential,  and of which  determination  the  Inspectors  are so
notified,  unless (a) the  disclosure  of such  Records is necessary to avoid or
correct a misstatement or omission in any Registration Statement or is otherwise
required under the 1933 Act, (b) the release of such Records is ordered pursuant
to a final,  non-appealable subpoena or order from a court or government body of
competent  jurisdiction,  or (c) the  information  in such Records has been made
generally  available to the public other than by disclosure in violation of this
or any other  agreement of which the Inspector  and the Investor has  knowledge.
The Investor agrees that it shall, upon learning that disclosure of such Records
is sought in or by a court or  governmental  body of competent  jurisdiction  or
through other means, give prompt notice to the Company and allow the Company, at
its expense,  to undertake  appropriate  action to prevent  disclosure of, or to
obtain a protective order for, the Records deemed confidential.

              i.  The  Company  shall  hold  in  confidence  and  not  make  any
disclosure of information concerning the Investor provided to the Company unless
(i) disclosure of such  information is necessary to comply with federal or state
securities  laws, (ii) the disclosure of such  information is necessary to avoid
or correct a misstatement or omission in any Registration

                                       4
<PAGE>

Statement,  (iii) the  release  of such  information  is ordered  pursuant  to a
subpoena or other final,  non-appealable order from a court or governmental body
of competent  jurisdiction,  or (iv) such  information  has been made  generally
available to the public other than by disclosure in violation of this  Agreement
or any other  agreement.  The Company  agrees that it shall,  upon learning that
disclosure  of such  information  concerning  the  Investor is sought in or by a
court or  governmental  body of competent  jurisdiction  or through other means,
give  prompt  written  notice to the  Investor  and allow the  Investor,  at the
Investor's expense, to undertake appropriate action to prevent disclosure of, or
to obtain a protective order for, such information.

              j. The Company shall use its best efforts  either to cause all the
Registrable  Securities covered by a Registration  Statement (i) to be listed on
each securities  exchange on which securities of the same class or series issued
by the Company  are then  listed,  if any,  if the  listing of such  Registrable
Securities is then  permitted  under the rules of such exchange or to secure the
inclusion for quotation on the National Association of Securities Dealers,  Inc.
OTC Bulletin Board for such  Registrable  Securities.  The Company shall pay all
fees and  expenses in  connection  with  satisfying  its  obligation  under this
Section 3(j).

              k. The Company  shall  cooperate  with the  Investor to the extent
applicable,  to facilitate the timely  preparation  and delivery of certificates
(not bearing any restrictive legend) representing the Registrable  Securities to
be offered pursuant to a Registration  Statement and enable such certificates to
be in such  denominations  or amounts,  as the case may be, as the  Investor may
reasonably request and registered in such names as the Investor may request.

              l. The Company shall use its best efforts to cause the Registrable
Securities  covered by the  applicable  Registration  Statement to be registered
with or approved by such other  governmental  agencies or  authorities as may be
necessary to consummate the disposition of such Registrable Securities.

              m. The Company  shall make  generally  available  to its  security
holders  as soon as  practical,  but not later than  ninety  (90) days after the
close of the period covered  thereby,  an earnings  statement (in form complying
with the  provisions  of Rule 158 under the 1933 Act)  covering  a  twelve-month
period  beginning not later than the first day of the Company's  fiscal  quarter
next following the effective date of the Registration Statement.

              n. The Company shall otherwise use its best efforts to comply with
all  applicable  rules  and  regulations  of the  SEC  in  connection  with  any
registration hereunder.

              o. Within two (2)  business  days after a  Registration  Statement
which covers Registrable Securities is ordered effective by the SEC, the Company
shall deliver,  and shall cause legal counsel for the Company to deliver, to the
transfer  agent for such  Registrable  Securities  (with copies to the Investor)
confirmation that such Registration Statement has been declared effective by the
SEC in the form attached hereto as Exhibit A.

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

                                       5
<PAGE>

         4. OBLIGATIONS OF THE INVESTOR.

         The Investor  agrees that,  upon receipt of any notice from the Company
of the happening of any event of the kind described in Section 3(f) or the first
sentence of 3(e),  the Investor  will  immediately  discontinue  disposition  of
Registrable  Securities pursuant to any Registration  Statement(s) covering such
Registrable  Securities  until  the  Investor's  receipt  of the  copies  of the
supplemented  or amended  prospectus  contemplated by Section 3(e) or receipt of
notice that no supplement or amendment is required.  Notwithstanding anything to
the contrary,  the Company shall cause its transfer agent to deliver  unlegended
certificates  for shares of Common  Stock to a  transferee  of the  Investor  in
accordance  with the terms of the Equity Line of Credit  Agreement in connection
with any sale of Registrable  Securities  with respect to which the Investor has
entered  into a contract  for sale prior to the  Investor's  receipt of a notice
from the Company of the happening of any event of the kind  described in Section
3(f) or the  first  sentence  of 3(e) and for  which  the  Investor  has not yet
settled.

         5. EXPENSES OF REGISTRATION.

         All expenses  incurred in  connection  with  registrations,  filings or
qualifications pursuant to Sections 2 and 3, including,  without limitation, all
registration,  listing and qualifications fees,  printers,  legal and accounting
fees shall be paid by the Company.

         6. INDEMNIFICATION.

         With  respect  to  Registrable  Securities  which  are  included  in  a
Registration Statement under this Agreement:

              a. To the fullest  extent  permitted by law, the Company will, and
hereby does,  indemnify,  hold harmless and defend the Investor,  the directors,
officers, partners,  employees, agents,  representatives of, and each Person, if
any, who  controls  the Investor  within the meaning of the 1933 Act or the 1934
Act (each,  an  "Indemnified  Person"),  against  any losses,  claims,  damages,
liabilities,  judgments, fines, penalties, charges, costs, reasonable attorneys'
fees,  amounts paid in settlement or expenses,  joint or several  (collectively,
"Claims") incurred in investigating,  preparing or defending any action,  claim,
suit, inquiry,  proceeding,  investigation or appeal taken from the foregoing by
or before any court or governmental,  administrative or other regulatory agency,
body or the SEC,  whether  pending or threatened,  whether or not an indemnified
party is or may be a party thereto ("Indemnified Damages"), to which any of them
may become subject  insofar as such Claims (or actions or  proceedings,  whether
commenced or threatened, in respect thereof) arise out of or are based upon: (i)
any  untrue  statement  or alleged  untrue  statement  of a  material  fact in a
Registration Statement or any post-effective  amendment thereto or in any filing
made in connection with the  qualification  of the offering under the securities
or other "blue sky" laws of any jurisdiction in which Registrable Securities are
offered  ("Blue Sky  Filing"),  or the  omission or alleged  omission to state a
material fact required to be stated  therein or necessary to make the statements
therein not misleading; (ii) any untrue statement or alleged untrue statement of
a material fact contained in any final  prospectus (as amended or  supplemented,
if the Company files any amendment  thereof or supplement  thereto with the SEC)
or the omission or alleged omission to state therein any material fact necessary
to make the statements made therein,  in light of the circumstances  under which
the  statements

                                       6
<PAGE>

therein were made, not misleading;  or (iii) any violation or alleged  violation
by the Company of the 1933 Act, the 1934 Act, any other law, including,  without
limitation,  any state  securities  law, or any rule or  regulation  there under
relating  to the  offer  or sale of the  Registrable  Securities  pursuant  to a
Registration  Statement (the matters in the foregoing  clauses (i) through (iii)
being, collectively, "Violations"). The Company shall reimburse the Investor and
each such controlling  person promptly as such expenses are incurred and are due
and payable,  for any legal fees or disbursements  or other reasonable  expenses
incurred by them in connection with  investigating  or defending any such Claim.
Notwithstanding  anything to the contrary contained herein, the  indemnification
agreement  contained in this Section 6(a):  (x) shall not apply to a Claim by an
Indemnified  Person  arising  out of or based upon a Violation  which  occurs in
reliance upon and in  conformity  with  information  furnished in writing to the
Company by such  Indemnified  Person  expressly for use in  connection  with the
preparation  of the  Registration  Statement  or any such  amendment  thereof or
supplement thereto; (y) shall not be available to the extent such Claim is based
on a  failure  of the  Investor  to  deliver  or to  cause to be  delivered  the
prospectus  made  available by the Company,  if such  prospectus was timely made
available by the Company  pursuant to Section  3(e);  and (z) shall not apply to
amounts paid in settlement of any Claim if such  settlement is effected  without
the  prior  written  consent  of  the  Company,   which  consent  shall  not  be
unreasonably  withheld.  Such  indemnity  shall  remain in full force and effect
regardless of any investigation made by or on behalf of the Indemnified Person.

              b. In  connection  with a  Registration  Statement,  the  Investor
agrees to  indemnify,  hold  harmless and defend,  to the same extent and in the
same manner as is set forth in Section 6(a), the Company, each of its directors,
each of its officers who signs the  Registration  Statement and each Person,  if
any, who controls the Company within the meaning of the 1933 Act or the 1934 Act
(each an "Indemnified Party"), against any Claim or Indemnified Damages to which
any of them may become  subject,  under the 1933 Act, the 1934 Act or otherwise,
insofar as such Claim or  Indemnified  Damages arise out of or is based upon any
Violation,  in each  case to the  extent,  and  only to the  extent,  that  such
Violation  occurs in reliance  upon and in conformity  with written  information
furnished to the Company by the Investor  expressly for use in  connection  with
such  Registration  Statement;  and,  subject to Section 6(d), the Investor will
reimburse any legal or other expenses  reasonably incurred by them in connection
with  investigating  or defending any such Claim;  provided,  however,  that the
indemnity  agreement  contained  in this  Section  6(b) and the  agreement  with
respect to  contribution  contained in Section 7 shall not apply to amounts paid
in  settlement  of any Claim if such  settlement  is effected  without the prior
written  consent  of the  Investor,  which  consent  shall  not be  unreasonably
withheld;  provided,  further,  however, that the Investor shall be liable under
this Section 6(b) for only that amount of a Claim or Indemnified Damages as does
not  exceed  the  net  proceeds  to the  Investor  as a  result  of the  sale of
Registrable Securities pursuant to such Registration  Statement.  Such indemnity
shall remain in full force and effect regardless of any investigation made by or
on behalf of such Indemnified  Party.  Notwithstanding  anything to the contrary
contained herein, the  indemnification  agreement contained in this Section 6(b)
with respect to any prospectus shall not inure to the benefit of any Indemnified
Party if the untrue  statement  or omission of material  fact  contained  in the
prospectus  was corrected and such new  prospectus was delivered to the Investor
prior to the Investor's use of the prospectus to which the Claim relates.

                                       7
<PAGE>

              c. Promptly after receipt by an Indemnified  Person or Indemnified
Party  under  this  Section  6 of notice of the  commencement  of any  action or
proceeding  (including any governmental action or proceeding) involving a Claim,
such  Indemnified  Person or  Indemnified  Party  shall,  if a Claim in  respect
thereof is to be made  against  any  indemnifying  party  under this  Section 6,
deliver to the indemnifying party a written notice of the commencement  thereof,
and the  indemnifying  party shall have the right to participate in, and, to the
extent the indemnifying  party so desires,  jointly with any other  indemnifying
party similarly  noticed,  to assume control of the defense thereof with counsel
mutually  satisfactory to the indemnifying  party and the Indemnified  Person or
the  Indemnified  Party,  as  the  case  may  be;  provided,  however,  that  an
Indemnified  Person or Indemnified  Party shall have the right to retain its own
counsel  with the fees  and  expenses  of not  more  than one  counsel  for such
Indemnified  Person or Indemnified  Party to be paid by the indemnifying  party,
if, in the reasonable opinion of counsel retained by the indemnifying party, the
representation  by such counsel of the Indemnified  Person or Indemnified  Party
and the  indemnifying  party would be  inappropriate  due to actual or potential
differing interests between such Indemnified Person or Indemnified Party and any
other party  represented  by such counsel in such  proceeding.  The  Indemnified
Party or Indemnified Person shall cooperate fully with the indemnifying party in
connection  with any  negotiation  or defense of any such action or claim by the
indemnifying  party and shall furnish to the indemnifying  party all information
reasonably  available  to the  Indemnified  Party or  Indemnified  Person  which
relates  to such  action  or  claim.  The  indemnifying  party  shall  keep  the
Indemnified  Party or  Indemnified  Person fully apprised at all times as to the
status of the defense or any settlement  negotiations  with respect thereto.  No
indemnifying  party shall be liable for any  settlement of any action,  claim or
proceeding effected without its prior written consent,  provided,  however, that
the indemnifying party shall not unreasonably  withhold,  delay or condition its
consent.  No indemnifying party shall,  without the prior written consent of the
Indemnified  Party or  Indemnified  Person,  consent to entry of any judgment or
enter into any  settlement  or other  compromise  which  does not  include as an
unconditional  term  thereof  the giving by the  claimant or  plaintiff  to such
Indemnified  Party or  Indemnified  Person of a release  from all  liability  in
respect to such claim or litigation.  Following  indemnification as provided for
hereunder,  the  indemnifying  party  shall be  subrogated  to all rights of the
Indemnified Party or Indemnified Person with respect to all third parties, firms
or corporations  relating to the matter for which indemnification has been made.
The  failure  to  deliver  written  notice to the  indemnifying  party  within a
reasonable  time of the  commencement  of any such action shall not relieve such
indemnifying  party of any liability to the  Indemnified  Person or  Indemnified
Party under this Section 6, except to the extent that the indemnifying  party is
prejudiced in its ability to defend such action.

              d. The indemnification required by this Section 6 shall be made by
periodic  payments of the amount thereof during the course of the  investigation
or defense, as and when bills are received or Indemnified Damages are incurred.

              e. The indemnity  agreements contained herein shall be in addition
to (i) any  cause  of  action  or  similar  right  of the  Indemnified  Party or
Indemnified  Person  against  the  indemnifying  party or  others,  and (ii) any
liabilities the indemnifying party may be subject to pursuant to the law.

                                       8
<PAGE>

         7. CONTRIBUTION.

         To  the  extent  any   indemnification  by  an  indemnifying  party  is
prohibited or limited by law, the indemnifying  party agrees to make the maximum
contribution  with respect to any amounts for which it would otherwise be liable
under Section 6 to the fullest extent permitted by law; provided, however, that:
(i) no seller of Registrable  Securities guilty of fraudulent  misrepresentation
(within  the  meaning of Section  11(f) of the 1933 Act)  shall be  entitled  to
contribution  from any seller of  Registrable  Securities  who was not guilty of
fraudulent misrepresentation; and (ii) contribution by any seller of Registrable
Securities shall be limited in amount to the net amount of proceeds  received by
such seller from the sale of such Registrable Securities.

         8. REPORTS UNDER THE 1934 ACT.

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

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

              b.  file with the SEC in a timely  manner  all  reports  and other
documents required of the Company under the 1933 Act and the 1934 Act so long as
the Company  remains  subject to such  requirements  (it being  understood  that
nothing  herein shall limit the Company's  obligations  under Section 6.3 of the
Equity  Line of  Credit  Agreement)  and the  filing of such  reports  and other
documents is required for the applicable provisions of Rule 144; and

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

         9. AMENDMENT OF REGISTRATION RIGHTS.

         Provisions of this Agreement may be amended and the observance  thereof
may  be  waived  (either  generally  or  in a  particular  instance  and  either
retroactively  or  prospectively),  only with the written consent of the Company
and the  Investor.  Any  amendment or waiver  effected in  accordance  with this
Section 9 shall be binding upon the Investor and the Company.  No  consideration
shall be  offered  or paid to any  Person  to amend or  consent  to a waiver  or
modification  of  any  provision  of any  of  this  Agreement  unless  the  same
consideration also is offered to all of the parties to this Agreement.

                                       9
<PAGE>

         10. MISCELLANEOUS.

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

              b. Any notices, 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:  (i) upon  receipt,  when  delivered
personally;  (ii) upon receipt, when sent by facsimile (provided confirmation of
transmission is mechanically or electronically generated and kept on file by the
sending  party);  or (iii) one  business  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 the Company, to:             Y3K SECURE ENTERPRISE SOFTWARE INC.
                                   108 West Stewart Avenue
                                   Puyallup, Washington, 98371
                                   Attention: King Cole
                                   Telephone:  (253) 284-2935
                                   Facsimile:   (253) 284-2944

With a copy to:                    Law Office of Jack G.Orr
                                   Attention: Jack G. Orr, Esq.
                                   3019 Narrows Place
                                   Tacoma, Washington
                                   Telephone: (253) 756-9795

If to the Investor, to:            Cornell Capital Partners, LP
                                   101 Hudson Street - Suite 3606
                                   Jersey City, NJ 07302
                                   Attention:        Mark Angelo
                                                     Portfolio Manager
                                   Telephone:        (201) 985-8300
                                   Facsimile:        (201) 985-8266

With copy to:                      Butler Gonzalez LLP
                                   1000 Stuyvesant Avenue - Suite 6
                                   Union, NJ 07083
                                   Attention:        David Gonzalez, Esq.
                                   Telephone:        (908) 810-8588
                                   Facsimile:        (908) 810-0973

Any party may  change  its  address  by  providing  written  notice to the other
parties  hereto at least five days prior to the  effectiveness  of such  change.
Written  confirmation  of receipt  (A) given by the  recipient  of such  notice,
consent,  waiver or other  communication,  (B)  mechanically  or

                                       10
<PAGE>

electronically  generated by the sender's facsimile machine containing the time,
date,  recipient  facsimile  number  and an  image  of the  first  page  of such
transmission or (C) provided by a courier or overnight  courier service shall be
rebuttable evidence of personal service,  receipt by facsimile or receipt from a
nationally  recognized overnight delivery service in accordance with clause (i),
(ii) or (iii) above, respectively.

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

              d. The  corporate  laws of the State of Nevada  shall  govern  all
issues concerning the relative rights of the Company and the Investor. All other
questions concerning the construction,  validity, enforcement and interpretation
of this  Agreement  shall be governed by the  internal  laws of the State of New
Jersey,  without giving effect to any choice of law or conflict of law provision
or rule  (whether  of the State of New  Jersey or any other  jurisdiction)  that
would cause the application of the laws of any jurisdiction other than the State
of New  Jersey.  Each party  hereby  irrevocably  submits  to the  non-exclusive
jurisdiction  of the  Superior  Courts of the State of New  Jersey,  sitting  in
Hudson County, New Jersey and the Federal District Court for the District of New
Jersey  sitting in Newark,  New  Jersey,  for the  adjudication  of any  dispute
hereunder or in connection herewith or with any transaction  contemplated hereby
or discussed herein, and hereby irrevocably  waives, and agrees not to assert in
any suit, action or proceeding,  any claim that it is not personally  subject to
the  jurisdiction  of any such court,  that such suit,  action or  proceeding is
brought  in an  inconvenient  forum or that the  venue of such  suit,  action or
proceeding is improper. Each party hereby irrevocably waives personal service of
process  and  consents  to  process  being  served in any such  suit,  action or
proceeding  by  mailing a copy  thereof to such  party at the  address  for such
notices to it under this Agreement and agrees that such service shall constitute
good and sufficient  service of process and notice  thereof.  Nothing  contained
herein  shall be deemed to limit in any way any  right to serve  process  in any
manner  permitted by law. If any provision of this Agreement shall be 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.  EACH PARTY HEREBY  IRREVOCABLY WAIVES ANY
RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST,  A JURY TRIAL FOR THE ADJUDICATION
OF ANY  DISPUTE  HEREUNDER  OR IN  CONNECTION  HEREWITH  OR ARISING  OUT OF THIS
AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

              e. This  Agreement,  the Equity Line of Credit  Agreement  and the
Escrow  Agreement  constitute the entire agreement among the parties hereto with
respect to the subject  matter  hereof and thereof.  There are no  restrictions,
promises, warranties or undertakings,  other than those set forth or referred to
herein and therein. This Agreement,  the Equity Line of Credit Agreement and the
Escrow  Agreement  supersede all prior agreements and  understandings  among the
parties hereto with respect to the subject matter hereof and thereof.

              f. This  Agreement  shall  inure to the  benefit of and be binding
upon the permitted successors and assigns of each of the parties hereto.

                                       11
<PAGE>

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

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

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

              j. The language  used in this  Agreement  will be deemed to be the
language  chosen by the parties to express  their mutual  intent and no rules of
strict  construction  will be  applied  against  any  party.  The  terms of this
Agreement should be read in conjunction with the Equity Line of Credit Agreement
and should  there be a conflict of terms,  the language and intent of the Equity
Line of Credit Agreement shall govern.

              k. 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.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       12
<PAGE>

         IN WITNESS WHEREOF,  the parties have caused this  Registration  Rights
Agreement to be duly executed as of day and year first above written.

                                   COMPANY:
                                   Y3K SECURE ENTERPRISE SOFTWARE INC.

                                   By:/S/ KINGWM. S. COLE
                                      ------------------------------
                                   Name:KINGWM. S. COLE
                                   Title:PRESIDENT

                                   INVESTOR:
                                   CORNELL CAPITAL PARTNERS, LP

                                   By: Yorkville Advisors, LLC
                                   Its: General Partner

                                   By:/S/ MARK ANGELO
                                      ------------------------------
                                   Name:    Mark Angelo
                                   Title:   Portfolio Manager

                                       13
<PAGE>

                                                                       EXHIBIT A

                         FORM OF NOTICE OF EFFECTIVENESS
                            OF REGISTRATION STATEMENT

[TRANSFER AGENT]
Attn:

        Re: Y3K SECURE ENTERPRISE SOFTWARE INC.

Ladies and Gentlemen:

         We are  counsel  to Y3K  SECURE  ENTERPRISE  SOFTWARE  INC.,  a  Nevada
corporation (the "Company"), and have represented the Company in connection with
that  certain  Equity  Line of  Credit  Agreement  (the  "Equity  Line of Credit
Agreement")  entered  into  by and  between  the  Company  and  Cornell  Capital
Partners,  LP (the  "Investor")  pursuant  to which  the  Company  issued to the
Investor  shares of its Common  Stock,  par value  $.001 per share (the  "Common
Stock").  Pursuant to the Equity Line of Credit Agreement,  the Company also has
entered  into  a   Registration   Rights   Agreement   with  the  Investor  (the
"Registration  Rights  Agreement")  pursuant to which the Company agreed,  among
other  things,  to  register  the  Registrable  Securities  (as  defined  in the
Registration Rights Agreement) under the Securities Act of 1933, as amended (the
"1933 Act"). In connection with the Company's obligations under the Registration
Rights  Agreement,  on  ____________  ____,  the  Company  filed a  Registration
Statement  on Form  ________  (File No.  333-_____________)  (the  "Registration
Statement") with the Securities and Exchange  Commission (the "SEC") relating to
the  Registrable  Securities  which names the Investor as a selling  stockholder
thereunder.

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

                                        Very truly yours,

                                        [ISSUER'S COUNSEL]

                                        By:
                                           ---------------------------------

cc: Cornell Capital Partners, LP

                                       14

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