Document:

EXHIBIT 10.3

                               SECURITY AGREEMENT

      This SECURITY AGREEMENT,  dated as of January 30, 2006 (this "Agreement"),
is entered into by and between BPK  RESOURCES,  INC. a Nevada  corporation  (the
"Debtor") and the TRIDENT  GROWTH FUND,  L.P., a Delaware  limited  partnership,
(the  "Secured  Party"),  the Holder of that  certain  12%  Secured  Convertible
Debenture  due January 30, 2007 (or such  earlier  contingent  date as set forth
therein)  in  the  original   aggregate   principal   amount  of  $600,000  (the
"Debenture"),  issued by Debtor to the  Secured  Party in  connection  with that
certain Securities Purchase Agreement entered into by and between the Debtor and
the Secured Party (the "Purchase Agreement").

                              W I T N E S S E T H:

      WHEREAS, pursuant to the Debenture, the Secured Party has agreed to extend
certain loans described above to the Debtor as evidenced by the Debenture; and

      WHEREAS,  in  order to  induce  the  Secured  Party to  extend  the  loans
evidenced by the Debenture,  the Debtor has agreed to execute and deliver to the
Secured Party this Agreement and to grant the Secured Party a perfected security
interest in all property of the Debtor to secure the prompt payment, performance
and discharge in full of all of the Debtor's obligations under the Debenture.

      NOW,  THEREFORE,  in consideration of the agreements  herein contained and
for other good and valuable consideration,  the receipt and sufficiency of which
is hereby acknowledged, the parties hereto hereby agree as follows:

      1. Certain  Definitions.  As used in this  Agreement,  the following terms
shall  have  the  meanings  set  forth in this  Section  1.  Terms  used but not
otherwise  defined in this  Agreement  that are  defined in Article 9 of the UCC
(such as  "general  intangibles"  and  "proceeds")  shall  have  the  respective
meanings  given such terms in Article 9 of the UCC,  and  capitalized  terms not
otherwise  defined  herein shall have the meaning  given them in the  Securities
Purchase Agreement described above.

            (a) "Collateral"  means the collateral in which the Secured Party is
      granted a security  interest by this Agreement and which shall include the
      following,  whether  presently owned or existing or hereafter  acquired or
      coming into  existence,  and all additions and accessions  thereto and all
      substitutions  and replacements  thereof,  and all proceeds,  products and
      accounts thereof,  including,  without  limitation,  all proceeds from the
      sale or transfer of the Collateral and of insurance  covering the same and
      of any tort claims in connection therewith:

                  (i) All Goods of the Debtor,  including,  without limitations,
            all machinery,  equipment, computers, motor vehicles, trucks, tanks,
            boats,  ships,  appliances,  furniture,  special and general  tools,
            fixtures,  test and quality  control  devices and other equipment of
            every kind and  nature  and  wherever  situated,  together  with all
            documents  of  title  and  documents   representing  the  same,  all
            additions and accessions thereto,  replacements  therefor, all parts
            therefor, and all substitutes for any of the foregoing and all other
            items used and useful in connection with the Debtor's businesses and
            all improvements thereto (collectively, the "Equipment"); and

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                  (ii) All Inventory of the Debtor; and

                  (iii)  All  of  the  Debtor's   contract  rights  and  general
            intangibles,   including,   without   limitation,   all  partnership
            interests,  stock or other  securities,  licenses,  distribution and
            other  agreements,   computer  software  (whether   "off-the-shelf",
            licensed  from any third  party or  developed  by  Debtor)  computer
            software  development rights,  leases,  franchises,  customer lists,
            quality control procedures, grants and rights, goodwill, trademarks,
            service  marks,   trade  styles,   trade  names,   patents,   patent
            applications,  copyrights,  deposit  accounts and income tax refunds
            (collectively, the "General Intangibles"); and

                  (iv) All Receivables and Accounts of the Debtor  including all
            insurance  proceeds,   and  rights  to  refunds  or  indemnification
            whatsoever  owing,  together with all instruments,  all documents of
            title  representing  any  of  the  foregoing,   all  rights  in  any
            merchandising, goods, equipment, motor vehicles and trucks which any
            of the  same may  represent,  and all  right,  title,  security  and
            guaranties with respect to each  Receivable,  including any right of
            stoppage in transit; and

                  (v) All of the  Debtor's  documents,  instruments  and chattel
            paper, files, records, books of account,  business papers,  computer
            programs  and the  products  and  proceeds  of all of the  foregoing
            Collateral set forth in clauses (i)-(iv) above.

            (b)  "Obligations"  means all of the Debtor's  obligations under the
      Transaction  Documents,  in each case, whether now or hereafter  existing,
      voluntary  or  involuntary,  direct or indirect,  absolute or  contingent,
      liquidated or unliquidated,  whether or not jointly owed with others,  and
      whether  or not from  time to time  decreased  or  extinguished  and later
      increased, created or incurred, and all or any portion of such obligations
      or  liabilities  that  are  paid,  to the  extent  all or any part of such
      payment is avoided or recovered  directly or  indirectly  from the Secured
      Party  as  a  preference,   fraudulent   transfer  or  otherwise  as  such
      obligations may be amended, supplemented,  converted, extended or modified
      from time to time.

            (c)  "UCC"  means  the  Uniform  Commercial  Code  and or any  other
      applicable law of any jurisdiction  (including,  without  limitation,  the
      state of Nevada and New York) as to any Collateral located therein.

      2. Grant of Perfected Security Interest.  As an inducement for the Secured
Party to extend  the  loans as  evidenced  by the  Debenture  and to secure  the
complete and timely payment,  performance and discharge in full, as the case may
be, of all of the Obligations, the Debtor hereby unconditionally and irrevocably
pledges, grants and hypothecates to the Secured Party a continuing and perfected
security  interest in and to, a lien upon and a right of set-off  against all of
their respective right,  title and interest of whatsoever kind and nature in and
to, the Collateral (the "Security Interest").

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      3.  Representations,  Warranties,  Covenants and Agreements of the Debtor.
The Debtor  represents  and warrants  to, and  covenants  and agrees  with,  the
Secured Party as follows:

            (a) The Debtor has the  requisite  corporate  power and authority to
      enter  into this  Agreement  and  otherwise  to carry out its  obligations
      hereunder.  The execution,  delivery and performance by the Debtor of this
      Agreement and the filings  contemplated  therein have been duly authorized
      by all necessary action on the part of the Debtor and no further action is
      required by the Debtor.

            (b) The Debtor  represents  and warrants  that they have no place of
      business or offices  where their  respective  books of account and records
      are kept  (other  than  temporarily  at the  offices of its  attorneys  or
      accountants)  or places where  Collateral is stored or located,  except as
      set forth on Schedule A attached hereto.

            (c) The  Debtor  is the sole  owner of the  Collateral  (except  for
      non-exclusive  licenses  granted by the Debtor in the  ordinary  course of
      business), free and clear of any liens, security interests,  encumbrances,
      rights or claims (other than those  disclosed in the Purchase  Agreement),
      and are fully  authorized to grant the Security  Interest in and to pledge
      the  Collateral.  There is not on file in any  governmental  or regulatory
      authority,  agency or recording office an effective  financing  statement,
      security  agreement,  license  or  transfer  or any  notice  of any of the
      foregoing  (other than as disclosed in the  Purchase  Agreement  and other
      than those that will be filed in favor of the  Secured  Party  pursuant to
      this Agreement)  covering or affecting any of the  Collateral.  So long as
      this Agreement shall be in effect,  Debtor shall not execute and shall not
      knowingly  permit  to be on file in any such  office  or  agency  any such
      financing  statement or other document or instrument (except to the extent
      as disclosed  in the  Purchase  Agreement or filed or recorded in favor of
      the Secured Party pursuant to the terms of this Agreement).

            (d)  No  part  of  the   Collateral   has  been  judged  invalid  or
      unenforceable.  No written claim has been received that any  Collateral or
      Debtor's  use of any  Collateral  violates  the rights of any third party.
      There has been no adverse  decision to Debtor's claim of ownership  rights
      in or exclusive  rights to use the  Collateral in any  jurisdiction  or to
      Debtor's  right to keep and  maintain  such  Collateral  in full force and
      effect,  and there is no proceeding  involving  said rights pending or, to
      the best knowledge of the Debtor,  threatened  before any court,  judicial
      body,   administrative   or   regulatory   agency,   arbitrator  or  other
      governmental authority.

            (e) The Debtor shall at all times  maintain its books of account and
      records  relating to the Collateral at its principal place of business and
      its  Collateral at the  locations set forth on Schedule A attached  hereto
      and may not  relocate  such  books of  account  and  records  or  tangible
      Collateral  unless it delivers to the Secured Party at least 30 days prior
      to such  relocation  (i)  written  notice of such  relocation  and the new
      location  thereof  (which  must be  within  the  United  States)  and (ii)
      evidence that  appropriate  financing  statements  under the UCC and other
      necessary documents have been filed and recorded and other steps have been
      taken to perfect the  Security  Interest to create in favor of the Secured
      Party a valid, perfected and continuing perfected lien in the Collateral.

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            (f) This  Agreement  creates in favor of the  Secured  Party a valid
      security  interest in the Collateral  securing the payment and performance
      of  the  Obligations  and,  upon  making  the  filings  described  in  the
      immediately  following  sentence,  a perfected  security  interest in such
      Collateral.

            (g) The Debtor  hereby  authorizes  the Secured Party to file one or
      more  financing  statements  under the UCC,  with  respect to the Security
      Interest with the proper filing and recording agencies in any jurisdiction
      deemed proper by them.

            (h) The execution, delivery and performance of this Agreement by the
      Debtor does not conflict  with,  or constitute a default (or an event that
      with  notice or lapse of time or both would  become a default)  under,  or
      give to others  any  rights of  termination,  amendment,  acceleration  or
      cancellation  (with or  without  notice,  lapse of time or both)  of,  any
      agreement,  credit facility, debt or other instrument (evidencing Debtor's
      debt or otherwise) or other understanding to which Debtor is a party or by
      which any property or asset of the Debtor is bound or affected. No consent
      (including,  without  limitation,  from  stockholders  or creditors of the
      Debtor)  is  required  for the  Debtor  to  enter  into  and  perform  its
      obligations hereunder.

            (i) The Debtor  shall at all times  maintain  the liens and Security
      Interest  provided for hereunder as valid and perfected liens and security
      interests  in the  Collateral  in favor of the  Secured  Party  until this
      Agreement and the Security Interest hereunder shall be terminated pursuant
      to Section 11 hereof.  The Debtor hereby agrees to defend the same against
      any and all persons. The Debtor shall safeguard and protect all Collateral
      for the account of the Secured Party. At the request of the Secured Party,
      the Debtor will sign and deliver to the Secured  Party at any time or from
      time to time one or more financing  statements pursuant to the UCC in form
      reasonably  satisfactory  to the  Secured  Party  and will pay the cost of
      filing the same in all public offices  wherever filing is, or is deemed by
      the Secured  Party to be,  necessary or desirable to effect the rights and
      obligations  provided for herein.  Without  limiting the generality of the
      foregoing,  the  Debtor  shall  pay all  fees,  taxes  and  other  amounts
      necessary to maintain the Collateral and the Security Interest  hereunder,
      and the Debtor shall obtain and furnish to the Secured  Party from time to
      time, upon demand, such releases and/or subordinations of claims and liens
      which may be required to maintain the  priority of the  Security  Interest
      hereunder.

            (j) The Debtor will not  transfer,  pledge,  hypothecate,  encumber,
      license  (except  for  non-exclusive  licenses  granted by a Debtor in its
      ordinary  course of business  and sales of  inventory),  sell or otherwise
      dispose  of any of the  Collateral  except in the  ordinary  course of its
      business without the prior written consent of the Secured Party.

            (k) The Debtor shall keep and preserve its Equipment,  Inventory and
      other tangible  Collateral in good  condition,  repair and order and shall
      not  operate or locate any such  Collateral  (or cause to be  operated  or
      located) in any area excluded from insurance coverage.

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            (l) The Debtor  shall,  within ten (10) days of obtaining  knowledge
      thereof,  advise the Secured Party promptly,  in sufficient detail, of any
      substantial  change in the Collateral,  and of the occurrence of any event
      which would have a material  adverse effect on the value of the Collateral
      or on the Secured Party's security interest therein.

            (m) The Debtor  shall  promptly  execute  and deliver to the Secured
      Party such further deeds,  mortgages,  assignments,  security  agreements,
      financing  statements or other  instruments,  documents,  certificates and
      assurances and take such further action as the Secured Party may from time
      to time request and may in its sole  discretion deem necessary to perfect,
      protect or enforce  its  security  interest in the  Collateral  including,
      without  limitation,  if  applicable,  the  execution  and  delivery  of a
      separate  security  agreement  with respect to each Debtor's  intellectual
      property ("Intellectual Property Security Agreement") in which the Secured
      Party has been granted a security interest  hereunder,  substantially in a
      form acceptable to the Secured Party, which Intellectual Property Security
      Agreement,  other than as stated  therein,  shall be subject to all of the
      terms and conditions hereof.

            (n)  The   Debtor   shall   permit   the   Secured   Party  and  its
      representatives  and agents to inspect the  Collateral at any time, and to
      make copies of records pertaining to the Collateral as may be requested by
      the Secured Party from time to time.

            (o)  The  Debtor  shall  take  all  steps  reasonably  necessary  to
      diligently  pursue and seek to  preserve,  enforce and collect any rights,
      claims,  causes  of action  and  accounts  receivable  in  respect  of the
      Collateral.

            (p) The Debtor shall promptly notify the Secured Party in sufficient
      detail upon becoming aware of any  attachment,  garnishment,  execution or
      other  legal  process  levied  against  any  Collateral  and of any  other
      information received by the Debtor that may materially affect the value of
      the  Collateral,  the Security  Interest or the rights and remedies of the
      Secured Party hereunder.

            (q) All information heretofore,  herein or hereafter supplied to the
      Secured Party by or on behalf of the Debtor with respect to the Collateral
      is  accurate  and  complete  in  all  material  respects  as of  the  date
      furnished.

            (r) The Debtor  shall at all times  preserve  and keep in full force
      and effect their  respective  valid  existence  and good  standing and any
      rights and franchises material to its business.

            (s) The Debtor  will not change its name,  corporate  structure,  or
      identity,  or add any new  fictitious  name unless it provides at least 30
      days prior written  notice to the Secured Party of such change and, at the
      time of such written  notification,  such Debtor  provides  any  financing
      statements or fixture filings necessary to perfect and continue  perfected
      the perfected Security Interest granted and evidenced by this Agreement.

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            (t) The Debtor may not consign any of its  Inventory  or sell any of
      its Inventory on bill and hold, sale or return, sale on approval, or other
      conditional  terms of sale without the consent of the Secured  Party which
      shall not be unreasonably withheld..

            (u) The Debtor may not relocate its chief executive  office to a new
      location without providing 30 days prior written  notification  thereof to
      the  Secured   Party  and  so  long  as,  at  the  time  of  such  written
      notification,  the Debtor  provides any  financing  statements  or fixture
      filings  necessary to perfect and continue the Security  Interest  granted
      and evidenced by this Agreement.

      4. Defaults. The following events shall be "Events of Default":

            (a) The  occurrence  of an  Event  of  Default  (as  defined  in the
      Debenture) under the Debenture;

            (b) Any representation or warranty of Debtor in this Agreement shall
      prove to have been incorrect in any material respect when made;

            (c)  The  failure  by  Debtor  to  observe  or  perform  any  of its
      obligations hereunder for five (5) days after delivery to Debtor of notice
      of such failure by or on behalf of a Secured Party; or

            (d) If any  provision  of this  Agreement  shall at any time for any
      reason be declared to be null and void, or the validity or  enforceability
      thereof shall be contested by Debtor,  or a proceeding  shall be commenced
      by Debtor,  or by any  governmental  authority  having  jurisdiction  over
      Debtor,  seeking to establish the invalidity or unenforceability  thereof,
      or Debtor shall deny that Debtor has any liability or obligation purported
      to be created under this Agreement.

      5. Duty To Hold In Trust.  Upon the occurrence of any Event of Default and
at any time thereafter, the Debtor shall, upon receipt of any revenue, income or
other sums subject to the Security  Interest,  whether  payable  pursuant to the
Debenture or otherwise,  or of any check, draft, note, trade acceptance or other
instrument  evidencing an obligation to pay any such sum, hold the same in trust
for the Secured Party and shall forthwith  endorse and transfer any such sums or
instruments,  or both, to the Secured Party for application to the  satisfaction
of the Obligations.

      6. Rights and Remedies Upon Default.  Upon the  occurrence of any Event of
Default and at any time  thereafter,  the Secured  Party shall have the right to
exercise all of the remedies  conferred  hereunder and under the Debenture,  and
the  Secured  Party shall have all the rights and  remedies  of a secured  party
under the UCC.  Without  limitation,  the Secured Party shall have the following
rights and powers:

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            (a) The Secured Party shall have the right to take possession of the
      Collateral  and, for that purpose,  enter,  with the aid and assistance of
      any person, any premises where the Collateral,  or any part thereof, is or
      may be placed and  remove the same,  and the  Debtor  shall  assemble  the
      Collateral  and make it available to the Secured Party at places which the
      Secured Party shall reasonably select, whether at the Debtor's premises or
      elsewhere,  and make available to the Secured Party,  without rent, all of
      the Debtor's  respective  premises and  facilities  for the purpose of the
      Secured Party taking  possession of, removing or putting the Collateral in
      saleable or disposable form.

            (b) The Secured  Party shall have the right to operate the  business
      of the  Debtor  using the  Collateral  and shall have the right to assign,
      sell,  lease or  otherwise  dispose of and  deliver all or any part of the
      Collateral, at public or private sale or otherwise, either with or without
      special  conditions or  stipulations,  for cash or on credit or for future
      delivery,  in such parcel or parcels and at such time or times and at such
      place or places,  and upon such terms and  conditions as the Secured Party
      may deem commercially reasonable, all without (except as shall be required
      by applicable  statute and cannot be waived)  advertisement or demand upon
      or notice  to the  Debtor or right of  redemption  of a Debtor,  which are
      hereby expressly waived.  Upon each such sale, lease,  assignment or other
      transfer  of  Collateral,  the Secured  Party may,  unless  prohibited  by
      applicable  law which  cannot be waived,  purchase  all or any part of the
      Collateral  being sold,  free from and  discharged of all trusts,  claims,
      right of  redemption  and equities of the Debtor,  which are hereby waived
      and released.

      7. Applications of Proceeds. The proceeds of any such sale, lease or other
disposition of the Collateral  hereunder shall be applied first, to the expenses
of retaking,  holding, storing,  processing and preparing for sale, selling, and
the like  (including,  without  limitation,  any  taxes,  fees and  other  costs
incurred  in  connection  therewith)  of  the  Collateral,   to  the  reasonable
attorneys'  fees and expenses  incurred by the Secured  Party in  enforcing  its
rights hereunder and in connection with collecting, storing and disposing of the
Collateral,  and then to  satisfaction  of the  Obligations to the Secured Party
based on its then  outstanding  principal  amount of the  Debenture,  and to the
payment of any other amounts required by applicable law, after which the Secured
Party  shall pay to the  applicable  Debtor any surplus  proceeds.  If, upon the
sale,  license or other disposition of the Collateral,  the proceeds thereof are
insufficient to pay all amounts to which the Secured Party is legally  entitled,
the Debtor will be liable for the deficiency, together with interest thereon, at
the rate of 18% per annum or the lesser amount  permitted by applicable law (the
"Default  Rate"),  and the  reasonable  fees of any  attorneys  employed  by the
Secured Party to collect such deficiency.  To the extent permitted by applicable
law, the Debtor waives all claims, damages and demands against the Secured Party
arising out of the repossession,  removal,  retention or sale of the Collateral,
unless due to the gross negligence or willful misconduct of the Secured Party.

      8.  Costs  and  Expenses.   The  Debtor  agrees  to  pay  all   reasonable
out-of-pocket  fees,  costs and expenses  incurred in connection with any filing
required  hereunder,  including  without  limitation,  any financing  statements
pursuant  to  the  UCC,   continuation   statements,   partial  releases  and/or
termination   statements  related  thereto  or  any  expenses  of  any  searches
reasonably  required by the Secured  Party.  The Debtor shall also pay all other
claims and charges  which in the  reasonable  opinion of the Secured Party might
prejudice,  imperil or otherwise affect the Collateral or the Security  Interest
therein.  The Debtor will also, upon demand, pay to the Secured Party the amount
of any and all reasonable  expenses,  including the reasonable fees and expenses
of its counsel and of any experts and agents,  which the Secured Party may incur
in connection with (i) the  enforcement of this  Agreement,  (ii) the custody or
preservation of, or the sale of, collection from, or other realization upon, any
of the Collateral,  or (iii) the exercise or enforcement of any of the rights of
the Secured Party under the Debenture. Until so paid, any fees payable hereunder
shall be added to the principal  amount of the Debenture and shall bear interest
at the Default Rate.

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      9.  Responsibility for Collateral.  The Debtor assumes all liabilities and
responsibility in connection with all Collateral,  and the Obligations in no way
be affected or diminished by reason of the loss, destruction, damage or theft of
any of the Collateral or its unavailability for any reason.

      10. Security  Interest  Absolute.  All rights of the Secured Party and all
Obligations  of the  Debtor  hereunder,  shall be  absolute  and  unconditional,
irrespective of: (a) any lack of validity or  enforceability  of this Agreement,
the Debenture or any agreement entered into in connection with the foregoing, or
any portion  hereof or thereof;  (b) any change in the time,  manner or place of
payment  or  performance  of,  or in  any  other  term  of,  all  or  any of the
Obligations, or any other amendment or waiver of or any consent to any departure
from the Debenture or any other  agreement  entered into in connection  with the
foregoing; (c) any exchange,  release or nonperfection of any of the Collateral,
or any release or amendment or waiver of or consent to departure  from any other
collateral for, or any guaranty,  or any other  security,  for all or any of the
Obligations;  (d) any action by the Secured Party to obtain,  adjust, settle and
cancel in its sole discretion any insurance claims or matters made or arising in
connection  with the  Collateral;  or (e) any  other  circumstance  which  might
otherwise  constitute any legal or equitable defense available to a Debtor, or a
discharge of all or any part of the Security Interest granted hereby.  Until the
Obligations  shall  have  been paid and  performed  in full,  the  rights of the
Secured Party shall continue even if the  Obligations are barred for any reason,
including,  without  limitation,  the running of the statute of  limitations  or
bankruptcy. The Debtor expressly waives presentment, protest, notice of protest,
demand,  notice of nonpayment and demand for  performance.  In the event that at
any time any transfer of any  Collateral or any payment  received by the Secured
Party  hereunder  shall  be  deemed  by  final  order  of a court  of  competent
jurisdiction to have been a voidable  preference or fraudulent  conveyance under
the bankruptcy or insolvency laws of the United States, or shall be deemed to be
otherwise  due to any party  other than the  Secured  Party,  then,  in any such
event,  the Debtor's  obligations  hereunder shall survive  cancellation of this
Agreement, and shall not be discharged or satisfied by any prior payment thereof
and/or  cancellation  of this  Agreement,  but shall  remain a valid and binding
obligation  enforceable in accordance with the terms and provisions  hereof. The
Debtor  waives all right to require  the  Secured  Party to proceed  against any
other person or to apply any Collateral  which the Secured Party may hold at any
time, or to marshal assets, or to pursue any other remedy. The Debtor waives any
defense  arising by reason of the  application  of the statute of limitations to
any obligation secured hereby.

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      11. Term of  Agreement.  This  Agreement and the Security  Interest  shall
terminate on the date on which all payments  under the Debenture  have been made
in full or have  been  satisfied  and all  other  Obligations  have been paid or
discharged. Upon such termination,  the Secured Party, at the request and at the
expense of the Debtor,  will join in executing any  termination  statement  with
respect  to  any  financing  statement  executed  and  filed  pursuant  to  this
Agreement.

      12. Power of Attorney; Further Assurances.

            (a) The Debtor  authorizes the Secured Party,  and does hereby make,
      constitute  and  appoint the Secured  Party and its  respective  officers,
      agents,  successors  or assigns  with full power of  substitution,  as the
      Debtor's true and lawful attorney-in-fact,  with power, in the name of the
      Secured  Party or the  Debtor,  to,  after the  occurrence  and during the
      continuance of an Event of Default, (i) endorse any note, checks,  drafts,
      money orders or other instruments of payment  (including  payments payable
      under  or in  respect  of any  policy  of  insurance)  in  respect  of the
      Collateral  that may come into  possession of the Secured  Party;  (ii) to
      sign  and  endorse  any  financing  statement  pursuant  to the UCC or any
      invoice,  freight or express  bill,  bill of lading,  storage or warehouse
      receipts, drafts against debtors,  assignments,  verifications and notices
      in  connection  with  accounts,   and  other  documents  relating  to  the
      Collateral;  (iii) to pay or discharge taxes, liens, security interests or
      other  encumbrances at any time levied or placed on or threatened  against
      the Collateral;  (iv) to demand, collect, receipt for, compromise,  settle
      and sue for monies due in respect of the Collateral; and (v) generally, to
      do, at the option of the Secured Party,  and at the expense of the Debtor,
      at any time,  or from time to time,  all acts and things which the Secured
      Party deem necessary to protect,  preserve and realize upon the Collateral
      and the Security Interest granted therein in order to effect the intent of
      this  Agreement  and the  Debenture  all as fully and  effectually  as the
      Debtor  might or could do; and the Debtor  hereby  ratifies  all that said
      attorney  shall  lawfully  do or cause to be done by virtue  hereof.  This
      power of attorney is coupled with an interest and shall be irrevocable for
      the  term  of  this  Agreement  and  thereafter  as  long  as  any  of the
      Obligations shall be outstanding.

            (b)  On  a  continuing   basis,  the  Debtor  will  make,   execute,
      acknowledge, deliver, file and record, as the case may be, with the proper
      filing and  recording  agencies in any  jurisdiction,  including,  without
      limitation, the jurisdictions indicated on Schedule B attached hereto, all
      such  instruments,  and take all such action as may  reasonably  be deemed
      necessary or advisable,  or as reasonably  requested by the Secured Party,
      to perfect the Security  Interest granted hereunder and otherwise to carry
      out the  intent  and  purposes  of this  Agreement,  or for  assuring  and
      confirming  to the Secured  Party the grant or  perfection  of a perfected
      security interest in all the Collateral under the UCC.

            (c) The Debtor hereby irrevocably  appoints the Secured Party as the
      Debtor's attorney-in-fact, with full authority in the place and instead of
      the Debtor and in the name of the Debtor, from time to time in the Secured
      Party's discretion, to take any action and to execute any instrument which
      the Secured  Party may deem  necessary  or  advisable  to  accomplish  the
      purposes of this Agreement,  including the filing, in its sole discretion,
      of one  or  more  financing  or  continuation  statements  and  amendments
      thereto,  relative to any of the  Collateral  without the signature of the
      Debtor where permitted by law.

                                     Page 9
<PAGE>

      13.  Notices.  All  notices,  requests,  demands and other  communications
hereunder shall be subject to the notice provision of the Purchase Agreement.

      14.  Other  Security.  To the  extent  that  the  Obligations  are  now or
hereafter  secured by property  other than the  Collateral or by the  guarantee,
endorsement or property of any other person, firm,  corporation or other entity,
then the Secured Party shall have the right, in its sole discretion,  to pursue,
relinquish,  subordinate,  modify or take any other action with respect thereto,
without in any way modifying or affecting any of the Secured  Party's rights and
remedies hereunder.

      15.  Best  Efforts  for  Licensed  Collateral.  Notwithstanding  any other
provision  contained  herein  or any  of the  Transaction  Documents,  upon  the
occurrence of an Event of Default, the Debtor hereby agrees that with respect to
any part of the  Collateral  which may require the consent of any third party or
third parties in order for Debtor to transfer  and/or convey its interest in and
to such  Collateral  to the Secured  Party,  as may be  required  in  accordance
herewith,  Debtor  agrees  to and  shall use its best  efforts  to  obtain  such
consents or approvals in as expedient manner as possible.

      16. Miscellaneous.

            (a) No course of dealing  between the Debtor and the Secured  Party,
      nor any failure to exercise,  nor any delay in exercising,  on the part of
      the Secured Party,  any right,  power or privilege  hereunder or under the
      Debenture  shall  operate  as a waiver  thereof;  nor shall any  single or
      partial exercise of any right, power or privilege  hereunder or thereunder
      preclude  any other or further  exercise  thereof or the  exercise  of any
      other right, power or privilege.

            (b) All of the rights and remedies of the Secured Party with respect
      to the Collateral,  whether  established  hereby or by the Debenture or by
      any  other  agreements,  instruments  or  documents  or by  law  shall  be
      cumulative and may be exercised singly or concurrently.

            (c) This Agreement  constitutes the entire  agreement of the parties
      with respect to the subject matter hereof and is intended to supersede all
      prior  negotiations,  understandings  and agreements with respect thereto.
      Except as specifically  set forth in this Agreement,  no provision of this
      Agreement  may be  modified  or  amended  except  by a  written  agreement
      specifically referring to this Agreement and signed by the parties hereto.

            (d) In the  event  any  provision  of this  Agreement  is held to be
      invalid,  prohibited or  unenforceable in any jurisdiction for any reason,
      unless such provision is narrowed by judicial construction, this Agreement
      shall,  as  to  such  jurisdiction,  be  construed  as  if  such  invalid,
      prohibited or  unenforceable  provision had been more narrowly drawn so as
      not to be invalid,  prohibited or unenforceable.  If,  notwithstanding the
      foregoing,  any  provision  of  this  Agreement  is  held  to be  invalid,
      prohibited or unenforceable  in any  jurisdiction,  such provision,  as to
      such jurisdiction,  shall be ineffective to the extent of such invalidity,
      prohibition or unenforceability without invalidating the remaining portion
      of such  provision or the other  provisions of this  Agreement and without
      affecting the validity or  enforceability  of such  provision or the other
      provisions of this Agreement in any other jurisdiction.

                                    Page 10
<PAGE>

            (e) No  waiver of any  breach or  default  or any right  under  this
      Agreement  shall be  considered  valid unless in writing and signed by the
      party giving such  waiver,  and no such waiver shall be deemed a waiver of
      any subsequent breach or default or right,  whether of the same or similar
      nature or otherwise.

            (f) This Agreement shall be binding upon and inure to the benefit of
      each party hereto and its successors and assigns.

            (g) Each  party  shall take such  further  action  and  execute  and
      deliver such further documents as may be necessary or appropriate in order
      to carry out the provisions and purposes of this Agreement.

            (h) All questions concerning the construction, validity, enforcement
      and  interpretation  of this Agreement  shall be governed by and construed
      and enforced in  accordance  with the internal laws of the State of Texas,
      without regard to the  principles of conflicts of law thereof.  Each party
      agrees that all proceedings  concerning the  interpretations,  enforcement
      and defense of the  transactions  contemplated  by this  Agreement and the
      Debenture  (whether  brought  against  a party  hereto  or its  respective
      affiliates, directors, officers, shareholders,  employees or agents) shall
      be  commenced  exclusively  in the state and  federal  courts  sitting  in
      Dallas,  Texas.  Each  party  hereto  hereby  irrevocably  submits  to the
      exclusive  jurisdiction of the state and federal courts sitting in Dallas,
      Texas 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 proceeding,
      any claim that it is not  personally  subject to the  jurisdiction  of any
      such court,  that such  proceeding  is improper.  Each party hereto hereby
      irrevocably  waives  personal  service of process and  consents to process
      being  served  in any  such  proceeding  by  mailing  a copy  thereof  via
      registered  or certified  mail or  overnight  delivery  (with  evidence of
      delivery)  to such party at the  address in effect for notices to it under
      this  Agreement  and agrees that such service  shall  constitute  good and
      sufficient service of process and notice thereof. Nothing contained herein
      shall be  deemed  to limit in any way any  right to serve  process  in any
      manner permitted by law. Each party hereto hereby  irrevocably  waives, to
      the fullest extent permitted by applicable law, any and all right to trial
      by  jury  in any  legal  proceeding  arising  out of or  relating  to this
      Agreement or the transactions  contemplated  hereby. If either party shall
      commence a proceeding to enforce any  provisions of this  Agreement,  then
      the prevailing  party in such proceeding  shall be reimbursed by the other
      party  for its  reasonable  attorneys  fees and other  costs and  expenses
      incurred  with the  investigation,  preparation  and  prosecution  of such
      proceeding.

                                    Page 11
<PAGE>

            (i) This  Agreement  may be executed in any number of  counterparts,
      each of which when so executed  shall be deemed to be an original and, all
      of which taken together shall  constitute one and the same  Agreement.  In
      the event that any signature is delivered by facsimile transmission,  such
      signature  shall create a valid binding  obligation of the party executing
      (or on whose behalf such  signature  is  executed)  the same with the same
      force and effect as if such facsimile signature were the original thereof.

                            [SIGNATURE PAGE FOLLOWS]

                                    Page 12
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Security Agreement
to be duly executed on the day and year first above written.

DEBTOR

BPK RESOURCES, INC.                           Address for Notice and Delivery:
                                              264 Union Boulevard, First Floor
                                              Totowa, New Jersey 07512
                                              Telephone:  (____) ____-_______
                                              Facsimile:  (____) ____-________
                                              Attn: Christopher H. Giordano, CEO

By: /s/ Christopher H. Giordano
   --------------------------------
     Name:  Christopher H. Giordano
     Title:    Chief Executive Officer

SECURED PARTY

TRIDENT GROWTH FUND, L.P.                     Address for Notice and Delivery:
                                              700 Gemini
By: TRIDENT MANAGEMENT, LLC, its              Houston, TX 77058
      GENERAL PARTNER                         Attn: Larry St. Martin

By: /s/ Scott Cook
   --------------------------------
     Name: Scott Cook
     Title:Authorizzed Member

<PAGE>

                                   SCHEDULE A

Principal Place of Business of Debtor:

264 Union Boulevard, First Floor
Totowa, New Jersey 07512

Locations Where Collateral is Located or Stored:

264 Union Boulevard, First Floor
Totowa, New Jersey 07512

<PAGE>

                                   SCHEDULE B

State of DelawareEXHIBIT 10.4

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE
HAVE  BEEN  REGISTERED  WITH  THE  SECURITIES  AND  EXCHANGE  COMMISSION  OR THE
SECURITIES   COMMISSION  OF  ANY  STATE  IN  RELIANCE  UPON  AN  EXEMPTION  FROM
REGISTRATION  UNDER THE  SECURITIES  ACT OF 1933,  AS AMENDED  (THE  "SECURITIES
ACT"),  AND,  ACCORDINGLY,  MAY NOT BE OFFERED  OR SOLD  EXCEPT  PURSUANT  TO AN
EFFECTIVE  REGISTRATION  STATEMENT  UNDER THE  SECURITIES  ACT OR PURSUANT TO AN
AVAILABLE  EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE  REGISTRATION
REQUIREMENTS  OF THE  SECURITIES  ACT AND IN ACCORDANCE  WITH  APPLICABLE  STATE
SECURITIES  LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH  EFFECT,  THE  SUBSTANCE  OF WHICH SHALL BE  REASONABLY  ACCEPTABLE  TO THE
COMPANY.  THIS  SECURITY  AND THE  SECURITIES  ISSUABLE  UPON  EXERCISE  OF THIS
SECURITY MAY BE PLEDGED IN CONNECTION  WITH A BONA FIDE MARGIN  ACCOUNT OR OTHER
LOAN SECURED BY SUCH SECURITIES AS PERMITTED BY LAW AND THE SECURITIES  PURCHASE
AGREEMENT PURSUANT TO WHICH THE SECURITIES WERE ISSUED.

                          COMMON STOCK PURCHASE WARRANT           NO. BPK-2006-1

                      To Purchase Shares of Common Stock of

                               BPK RESOURCES, INC.

      This COMMON STOCK PURCHASE  WARRANT (this  "Warrant")  certifies that, for
value received,  TRIDENT GROWTH FUND, L.P., a Delaware limited  partnership (the
"Holder"),  is  entitled,  upon the  terms and  subject  to the  limitations  on
exercise and the conditions  hereinafter  set forth, at any time on or after the
date hereof,  January 30, 2006 (the "Initial Exercise Date"), and on or prior to
the close of business on the fifth anniversary of the Initial Exercise Date (the
"Termination  Date"), to subscribe for and purchase from BPK RESOURCES,  INC., a
Nevada  corporation  (the  "Company"),  up to ONE MILLION  TWO HUNDRED  THOUSAND
(1,200,000)  shares of common  stock,  par value $001 per share,  of the Company
(the "Common Stock"),  subject to adjustment herein (the "Warrant Shares").  The
purchase price of one share of Common Stock under this Warrant shall be equal to
the Exercise Price, as defined in Section 2(b).

      Section 1.  Definitions.  Capitalized terms used and not otherwise defined
herein shall have the meanings  set forth in that  certain  Securities  Purchase
Agreement (the "Purchase Agreement"), of even date herewith, entered into by and
among the Company and the Purchaser signatory thereto.

      Section 2. Exercise.

            a) Exercise of Warrant.  Exercise of the purchase rights represented
      by this  Warrant  may be made at any time or times on or after the Initial
      Exercise Date and on or before the  Termination  Date (each,  an "Exercise
      Date") by delivery to the Company of a duly executed facsimile copy of the
      Notice of Exercise Form annexed  hereto (or such other office or agency of
      the  Company as it may  designate  by notice in writing to the  registered
      Holder  at the  address  of such  Holder  appearing  on the  books  of the
      Company);  provided,  however,  within 5  Business  Days of the date  said
      Notice of Exercise is  delivered  to the  Company,  the Holder  shall have
      surrendered  this  Warrant  to the  Company  and the  Company  shall  have
      received  payment of the aggregate  Exercise  Price of the shares  thereby
      purchased  by wire  transfer or cashier's  check drawn on a United  States
      bank.

                                    Page 1
<PAGE>

            b) Exercise  Price.  The Exercise  Price (so called  herein) of each
      share of Common Stock under this Warrant shall be equal to the lesser of:

                  (i) $0.13; or

                  (ii) the  average  price  per  share of the  Common  Stock and
            Common Stock  Equivalents sold to any Person in the first Qualifying
            Transaction  to be  consummated  following  the Original  Issue Date
            (determined  by dividing  the total number of shares of Common Stock
            issued plus shares  issuable under Common Stock  Equivalents in such
            Qualifying   Transaction,   by  the  aggregate  gross  consideration
            received by the Company plus all  consideration  to be received upon
            exercise or  conversion  of all Common Stock  Equivalents  issued in
            such Qualifying Transaction).  With respect to determining the price
            paid per share in any asset  purchase,  only shares of Common  Stock
            actually  issued and outstanding  shall be used in determining  such
            per share calculation.

            c) Cashless Exercise. If at any time after one year from the date of
      issuance of this  Warrant  there is no  effective  Registration  Statement
      registering  the resale of the  Warrant  Shares by the  Holder,  then this
      Warrant  may  also be  exercised  at such  time by  means  of a  "cashless
      exercise" in which the Holder  shall be entitled to receive a  certificate
      for the  number  of  Warrant  Shares  equal to the  quotient  obtained  by
      dividing [(A-B) (X)] by (A), where:

            (A) = the price of said Common Stock  determined by reference to the
      last reported sale price for the Common Stock on such day on the principal
      securities  exchange  on which the Common  Stock is listed or  admitted to
      trading or if no such sale takes  place on such date,  the  average of the
      closing bid and asked prices thereof as officially reported, or, if not so
      listed or admitted to trading on any  securities  exchange,  the last sale
      price for the  Common  Stock on the  National  Association  of  Securities
      Dealers  national market system on such date, or, if there shall have been
      no trading on such date or if the Common Stock shall not be listed on such
      system,   the  average  of  the  closing  bid  and  asked  prices  in  the
      over-the-counter market as furnished by any NASD member firm selected from
      time to time by the  Company for such  purpose or, if the Common  Stock is
      not traded,  then such price as is reasonably  determined by the Company's
      Board of Directors (the "Market Value");

            (B) = the Exercise Price of this Warrant, as adjusted; and

                                     Page 2
<PAGE>

            (X) = the number of Warrant Shares  issuable upon exercise of this
                  Warrant in accordance  with the terms of this Warrant by means
                  of a cash exercise rather than a cashless exercise.

            Notwithstanding  anything herein to the contrary, on the Termination
      Date, this Warrant shall be automatically  exercised via cashless exercise
      pursuant to this Section 2(c).

            d)  Exercise  Limitations.  At any time  after the  Common  Stock is
      registered under Section 12 of the Exchange Act, the Holder shall not have
      the right to  exercise  any portion of this  Warrant,  pursuant to Section
      2(c) or otherwise, to the extent that after giving effect to such issuance
      after exercise, the Holder (together with the Holder's affiliates), as set
      forth on the  applicable  Notice of Exercise,  would  beneficially  own in
      excess of 4.99% (or as  applicable,  9.99%) of the number of shares of the
      Common Stock outstanding immediately after giving effect to such issuance.
      For  purposes  of the  foregoing  determination,  the  number of shares of
      Common Stock  beneficially  owned by the Holder and its  affiliates  shall
      include the number of shares of Common Stock  issuable  upon such exercise
      of this  Warrant  less the number of shares of Common Stock which would be
      issuable upon (A) exercise of the remaining,  nonexercised portion of this
      Warrant and (B) exercise or conversion of the  unexercised  or unconverted
      portion of any other Securities (including,  without limitation, any other
      Debentures or Warrants)  subject to a limitation on conversion or exercise
      analogous to the limitation  contained  herein  beneficially  owned by the
      Holder.  Except as set forth in the  preceding  sentence,  for purposes of
      this Section 2(d),  beneficial ownership shall be calculated in accordance
      with Section 13(d) of the Exchange Act. To the extent that the  limitation
      contained in this Section 2(d) applies,  the determination of whether this
      Warrant is  exercisable  (in  relation  to other  securities  owned by the
      Holder) and of which a portion of this Warrant is exercisable  shall be in
      the sole discretion of such Holder.  For purposes of this Section 2(d), in
      determining the number of outstanding  shares of Common Stock,  the Holder
      may rely on the number of outstanding  shares of Common Stock as reflected
      in (x) Schedule 3.1(g) to the Purchase Agreement, (y) a more recent public
      announcement  by the Company or (z) any other notice by the Company or the
      Company's  Transfer  Agent  setting  forth the  number of shares of Common
      Stock  outstanding.  Upon the written or oral  request of the Holder,  the
      Company  shall within two Business  Days confirm  orally and in writing to
      the  Holder the number of shares of Common  Stock  then  outstanding.  The
      provisions  of this Section 2(d) may be waived by the Holder upon,  at the
      election  of the  Holder,  not less  than 61  days'  prior  notice  to the
      Company,  and the  provisions of this Section 2(d) shall continue to apply
      until such 61st day (or such later date, as  determined by the Holder,  as
      may be specified in such notice of waiver).

            e) Mechanics of Exercise.

                  i. Authorization of Warrant Shares. The Company covenants that
            all  Warrant  Shares  which may be issued  upon the  exercise of the
            purchase  rights  represented by this Warrant will, upon exercise of
            the purchase rights represented by this Warrant, be duly authorized,
            validly  issued,  fully  paid and  nonassessable  and free  from all
            taxes, liens and charges in respect of the issue thereof (other than
            taxes in respect of any transfer  occurring  contemporaneously  with
            such  issue).  The  Company  covenants  that  during  the period the
            Warrant is  outstanding,  it will  reserve from its  authorized  and
            unissued  Common Stock a sufficient  number of shares to provide for
            the issuance of the Warrant Shares upon the exercise of any purchase
            rights under this Warrant.  The Company  further  covenants that its
            issuance of this  Warrant  shall  constitute  full  authority to its
            officers  who  are  charged   with  the  duty  of  executing   stock
            certificates to execute and issue the necessary certificates for the
            Warrant  Shares upon the exercise of the purchase  rights under this
            Warrant.  The Company will take all such reasonable action as may be
            necessary  to  assure  that  such  Warrant  Shares  may be issued as
            provided   herein  without   violation  of  any  applicable  law  or
            regulation,  or of any requirements of the Trading Market upon which
            the Common Stock may be listed.

                                     Page 3
<PAGE>

                  ii. Delivery of Certificates  Upon Exercise.  Certificates for
            shares  purchased  hereunder  shall be  transmitted  by the transfer
            agent of the Company to the Holder by  crediting  the account of the
            Holder's prime broker with the Depository  Trust Company through its
            Deposit  Withdrawal Agent Commission  ("DWAC") system if the Company
            is a  participant  in such  system  and if the  certificates  may be
            issued without a restrictive  legend in accordance  with  applicable
            federal  securities laws, and otherwise by physical  delivery to the
            address specified by the Holder in the Notice of Exercise within two
            (2) Business  Days from the delivery to the Company of the Notice of
            Exercise  Form,  surrender  of  this  Warrant  and  payment  of  the
            aggregate Exercise Price as set forth above ("Warrant Share Delivery
            Date").  This Warrant shall be deemed to have been  exercised on the
            date the  Exercise  Price is  received by the  Company.  The Warrant
            Shares shall be deemed to have been issued,  and Holder or any other
            person so  designated  to be named  therein  shall be deemed to have
            become a holder of record of such shares for all purposes, as of the
            date the Warrant has been exercised by payment to the Company of the
            Exercise Price and all taxes  required to be paid by the Holder,  if
            any,  pursuant to Section  2(e)(vii)  prior to the  issuance of such
            shares, have been paid.

                  iii.  Delivery of New Warrants Upon Exercise.  If this Warrant
            shall have been exercised in part, the Company shall, at the time of
            delivery of the  certificate or  certificates  representing  Warrant
            Shares,  deliver to Holder a new  Warrant  evidencing  the rights of
            Holder to purchase the unpurchased Warrant Shares called for by this
            Warrant,  which new Warrant shall in all other respects be identical
            with this Warrant.

                  iv.  Rescission  Rights.  If the  Company  fails to cause  its
            transfer   agent  to  transmit  to  the  Holder  a  certificate   or
            certificates  representing  the  Warrant  Shares  pursuant  to  this
            Section 2(e)(iv) by the Warrant Share Delivery Date, then the Holder
            will have the right to rescind such exercise.

                                     Page 4
<PAGE>

                  v. Failure to Timely Deliver  Certificates  Upon Exercise.  In
            addition to any other rights available to the Holder, if the Company
            or the  Company's  transfer  agent  fails to cause  delivery  to the
            Holder of a certificate  or  certificates  representing  the Warrant
            Shares or if the Company or its transfer agent fails to deliver such
            certificates  without the  restrictive  legend (if applicable) on or
            before the Warrant  Share  Delivery  Date,  the Company shall pay to
            Purchaser,  in cash,  as  partial  liquidated  damages  and not as a
            penalty,  the  greater of (i) $500 for each  Business  Day after the
            Warrant Share Delivery Date until such certificate is delivered with
            an appropriate  legend or without a restrictive  legend, as the case
            may be; and (ii) the  difference  in the Market Value of the Warrant
            Shares on the Warrant  Share  Delivery Date and the date such shares
            are  actually  received by the Holder.  Nothing  herein  shall limit
            Purchaser's right to pursue actual damages for the Company's failure
            to deliver  certificates  representing  any  Securities  as required
            herein,  and  Purchaser  shall have the right to pursue all remedies
            available to it at law or in equity including, without limitation, a
            decree of specific performance and/or injunctive relief.

                  vi. No Fractional  Shares or Scrip.  No  fractional  shares or
            scrip  representing  fractional  shares  shall  be  issued  upon the
            exercise of this Warrant. As to any fraction of a share which Holder
            would  otherwise  be entitled to purchase  upon such  exercise,  the
            Company  shall  round  such  fractional  share up to the next  whole
            number.

                  vii. Charges, Taxes and Expenses. Issuance of certificates for
            Warrant  Shares shall be made  without  charge to the Holder for any
            issue or transfer tax or other incidental  expense in respect of the
            issuance of such certificate,  all of which taxes and expenses shall
            be paid by the Company, and such certificates shall be issued in the
            name of the  Holder or in such name or names as may be  directed  by
            the Holder;  provided,  however,  that in the event certificates for
            Warrant Shares are to be issued in a name other than the name of the
            Holder,   this  Warrant  when  surrendered  for  exercise  shall  be
            accompanied by the Assignment  Form attached hereto duly executed by
            the Holder; and the Company may require, as a condition thereto, the
            payment of a sum  sufficient  to  reimburse  it for any transfer tax
            incidental thereto.

                  viii.  Closing  of  Books.  The  Company  will not  close  its
            stockholder books or records in any manner which prevents the timely
            exercise of this Warrant, pursuant to the terms hereof.

                                     Page 5
<PAGE>

      Section 3. Certain Adjustments.

            a) Stock  Dividends  and Splits.  If the Company,  at any time while
      this Warrant is outstanding: (A) pays a stock dividend or otherwise make a
      distribution or  distributions  on shares of its Common Stock or any other
      equity or equity equivalent  securities  payable in shares of Common Stock
      (which,  for  avoidance  of doubt,  shall not include any shares of Common
      Stock  issued by the Company  pursuant to this  Warrant),  (B)  subdivides
      outstanding  shares of Common  Stock into a larger  number of shares,  (C)
      combines  (including by way of reverse stock split)  outstanding shares of
      Common  Stock  into  a  smaller  number  of  shares,   or  (D)  issues  by
      reclassification of shares of the Common Stock any shares of capital stock
      of the Company,  then in each case the Exercise  Price shall be multiplied
      by a  fraction  of which the  numerator  shall be the  number of shares of
      Common Stock (excluding  treasury shares, if any) outstanding  before such
      event and of which the denominator shall be the number of shares of Common
      Stock  outstanding after such event and the number of shares issuable upon
      exercise of this Warrant shall be proportionately adjusted. Any adjustment
      made  pursuant to this  Section 3(a) shall  become  effective  immediately
      after the record date for the  determination  of stockholders  entitled to
      receive  such  dividend  or  distribution   and  shall  become   effective
      immediately  after  the  effective  date  in the  case  of a  subdivision,
      combination or re-classification.

            b) Subsequent  Equity  Sales.  If the Company at any time while this
      Warrant is outstanding, shall offer, sell, grant any option to purchase or
      offer,  sell or grant any right to reprice its  securities,  or  otherwise
      dispose of or issue any Common Stock or Common Stock Equivalents entitling
      any Person to acquire  shares of Common Stock,  at an price per share less
      than the then Exercise Price (such lower price, the "Base Share Price" and
      such issuances collectively, a "Dilutive Issuance"), as adjusted hereunder
      (if the holder of the Common Stock or Common Stock  Equivalents  so issued
      shall at any time,  whether by  operation of purchase  price  adjustments,
      reset  provisions,  floating  conversion,  exercise or exchange  prices or
      otherwise, or due to warrants, options or rights per share which is issued
      in connection with such issuance,  be entitled to receive shares of Common
      Stock at an  effective  price  per share  which is less than the  Exercise
      Price,  such  issuance  shall be deemed to have occurred for less than the
      Exercise  Price),  then,  the Exercise Price shall be reduced to equal the
      Base Share Price. Such adjustment shall be made whenever such Common Stock
      or Common  Stock  Equivalents  are issued.  The Company  shall  notify the
      Holder in writing,  no later than the Business Day  following the issuance
      of any Common Stock or Common Stock  Equivalents  subject to this section,
      indicating  therein the applicable  issuance price, or of applicable reset
      price,  exchange  price,  conversion  price and other  pricing terms (such
      notice the "Dilutive  Issuance  Notice").  For purposes of  clarification,
      whether or not the Company provides a Dilutive Issuance Notice pursuant to
      this Section 3(b), upon the occurrence of any Dilutive Issuance, after the
      date of such Dilutive  Issuance the Holder is entitled to receive a number
      of Warrant  Shares based upon the Base Share Price  regardless  of whether
      the  Holder  accurately  refers to the Base  Share  Price in the Notice of
      Exercise.

                                     Page 6
<PAGE>

            c) Pro Rata Distributions.  If the Company, at any time prior to the
      Termination Date, shall distribute to all holders of Common Stock (and not
      to Holders of the  Warrants)  evidences of its  indebtedness  or assets or
      rights or warrants to subscribe  for or purchase  any security  other than
      the Common Stock (which  shall be subject to Section  3(b)),  then in each
      such case the Exercise Price shall be adjusted by multiplying the Exercise
      Price  in  effect   immediately   prior  to  the  record  date  fixed  for
      determination of stockholders  entitled to receive such  distribution by a
      fraction  of which the  denominator  shall be the closing bid price of the
      Common Stock on the then  principal  Trading  Market  determined as of the
      record date mentioned  above (if the closing bid price of the Common Stock
      on the then  principal  Trading  Market  shall  then be  determinable  and
      otherwise  the fair market value per share as  determined  by the Board of
      Directors in good faith,  and of which the numerator shall be such closing
      bid price of the Common Stock on the then principal Trading Market on such
      record date less the then per share fair market  value at such record date
      of the portion of such assets or evidence of  indebtedness  so distributed
      applicable to one  outstanding  share of the Common Stock as determined by
      the Board of Directors in good faith. In either case the adjustments shall
      be  described  in a  statement  provided  to the Holders of the portion of
      assets or evidences of  indebtedness  so distributed or such  subscription
      rights  applicable to one share of Common Stock.  Such adjustment shall be
      made  whenever any such  distribution  is made and shall become  effective
      immediately after the record date mentioned above.

            d)  Fundamental  Transaction.  If, at any time while this Warrant is
      outstanding,  there  occurs  a  Fundamental  Transaction,  then,  upon any
      subsequent  conversion of this Warrant, the Holder shall have the right to
      receive,  for each Warrant  Share that would have been  issuable upon such
      exercise absent such Fundamental Transaction, at the option of the Holder,
      (a) upon exercise of this Warrant, the number of shares of Common Stock of
      the  successor or acquiring  corporation  or of the Company,  if it is the
      surviving corporation, and Alternate Consideration receivable upon or as a
      result of such reorganization,  reclassification, merger, consolidation or
      disposition  of assets by a Holder of the number of shares of Common Stock
      for which this Warrant is exercisable  immediately  prior to such event or
      (b) if the Company is acquired in an all cash  transaction,  cash equal to
      the value of this  Warrant as  determined  by the  difference  between the
      applicable  Exercise  Price  and the  amount of cash paid per share to the
      shareholders of the Company (the "Alternate Consideration").  For purposes
      of any such  exercise,  the  determination  of the Exercise Price shall be
      appropriately  adjusted to apply to such Alternate  Consideration based on
      the amount of Alternate  Consideration issuable in respect of one share of
      Common  Stock  in such  Fundamental  Transaction,  and the  Company  shall
      apportion  the  Exercise  Price  among the  Alternate  Consideration  in a
      reasonable   manner   reflecting  the  relative  value  of  any  different
      components of the Alternate Consideration.  If holders of Common Stock are
      given any choice as to the securities,  cash or property to be received in
      a Fundamental Transaction,  then the Holder shall be given the same choice
      as to the  Alternate  Consideration  it receives upon any exercise of this
      Warrant following such Fundamental Transaction. To the extent necessary to
      effectuate  the  foregoing  provisions,  any  successor  to the Company or
      surviving entity in such Fundamental Transaction shall issue to the Holder
      a new warrant consistent with the foregoing  provisions and evidencing the
      Holder's right to exercise such warrant into Alternate Consideration.  The
      terms of any  agreement  pursuant to which a  Fundamental  Transaction  is
      effected  shall  include terms  requiring any such  successor or surviving
      entity to comply with the  provisions  of this  Section  3(d) and insuring
      that this  Warrant (or any such  replacement  security)  will be similarly
      adjusted  upon  any  subsequent  transaction  analogous  to a  Fundamental
      Transaction.

                                     Page 7
<PAGE>

            e) Exempt Issuance.  Notwithstanding the foregoing,  no adjustments,
      Alternate Consideration,  nor notices shall be made, paid, or issued under
      this Section 3 in respect of an Exempt Issuance.

            f) Calculations. All calculations under this Section 3 shall be made
      to the nearest cent or the nearest 1/100th of a share, as the case may be.
      The number of shares of Common Stock  outstanding  at any given time shall
      not includes shares of Common Stock owned or held by or for the account of
      the Company,  and the description of any such shares of Common Stock shall
      be  considered  on issue or sale of Common  Stock.  For  purposes  of this
      Section  3, the number of shares of Common  Stock  deemed to be issued and
      outstanding as of a given date shall be the sum of the number of shares of
      Common Stock (excluding treasury shares, if any) issued and outstanding.

            g)  Voluntary  Adjustment  By  Company.  The Company may at any time
      during the term of this Warrant reduce the then current  Exercise Price to
      any amount and for any period of time deemed  appropriate  by the Board of
      Directors of the Company.

            h) Intentionally Omitted.

            i) Notice to Holders.

                  i. Adjustment to Exercise  Price.  Whenever the Exercise Price
            is adjusted  pursuant to this Section 3, the Company shall  promptly
            mail to each Holder a notice  setting forth the Exercise Price after
            such  adjustment  and setting  forth a brief  statement of the facts
            requiring  such  adjustment.  If the Company  issues a variable rate
            security, despite the prohibition thereon in the Purchase Agreement,
            the Company  shall be deemed to have issued  Common  Stock or Common
            Stock  Equivalents  at the lowest  possible  conversion  or exercise
            price at which such  securities may be converted or exercised in the
            case of a Variable  Rate  Transaction  (as  defined in the  Purchase
            Agreement),  or the lowest possible  adjustment price in the case of
            an  MFN  Transaction.  The  term  "MFN  Transaction"  shall  mean  a
            transaction in which the Company issues or sells any securities in a
            capital raising transaction or series of related  transactions which
            grants to an investor the right to receive  additional  shares based
            upon future transactions of the Company on terms more favorable than
            those granted to such investor in such offering.

                                     Page 8
<PAGE>

                  ii.  Notice to Allow  Exercise  by Holder.  If (A) the Company
            shall declare a dividend (or any other  distribution)  on the Common
            Stock;  (B) the Company  shall declare a special  nonrecurring  cash
            dividend on or a  redemption  of the Common  Stock;  (C) the Company
            shall  authorize  the  granting to all  holders of the Common  Stock
            rights or  warrants  to  subscribe  for or  purchase  any  shares of
            capital stock of any class or of any rights; (D) the approval of any
            stockholders of the Company shall be required in connection with any
            reclassification of the Common Stock, any consolidation or merger to
            which  the  Company  is a  party,  any  sale or  transfer  of all or
            substantially  all of the assets of the Company,  of any  compulsory
            share  exchange  whereby the Common  Stock is  converted  into other
            securities,  cash or property;  (E) the Company shall  authorize the
            voluntary or involuntary  dissolution,  liquidation or winding up of
            the affairs of the Company;  then,  in each case,  the Company shall
            cause to be mailed to the Holder at its last  addresses  as it shall
            appear  upon  the  Warrant  Register  of the  Company,  at  least 20
            calendar  days  prior to the  applicable  record or  effective  date
            hereinafter  specified,  a  notice  stating  (x) the date on which a
            record  is  to  be  taken  for  the   purpose   of  such   dividend,
            distribution,  redemption, rights or warrants, or if a record is not
            to be taken, the date as of which the holders of the Common Stock of
            record to be entitled to such dividend,  distributions,  redemption,
            rights or  warrants  are to be  determined  or (y) the date on which
            such  reclassification,  consolidation,  merger,  sale,  transfer or
            share  exchange is expected to become  effective  or close,  and the
            date as of which it is expected  that holders of the Common Stock of
            record  shall be  entitled to  exchange  their  shares of the Common
            Stock for securities,  cash or other property  deliverable upon such
            reclassification,  consolidation,  merger,  sale,  transfer or share
            exchange;  provided,  that the  failure  to mail such  notice or any
            defect  therein  or in the  mailing  thereof  shall not  affect  the
            validity of the  corporate  action  required to be specified in such
            notice.  The Holder is entitled to exercise this Warrant  during the
            20-day  period  commencing  the date of such notice to the effective
            date of the event triggering such notice.

      Section 4. Transfer of Warrant.

            a)  Transferability.  Subject  to  compliance  with  any  applicable
      securities  laws and the  conditions  set forth in Sections  5(a) and 4(d)
      hereof and to the  provisions  of Section 4.1 of the  Purchase  Agreement,
      this Warrant and all rights  hereunder  are  transferable,  in whole or in
      part,  upon  surrender  of this  Warrant  at the  principal  office of the
      Company,  together with a written assignment of this Warrant substantially
      in the form  attached  hereto duly  executed by the Holder or its agent or
      attorney and funds  sufficient to pay any transfer  taxes payable upon the
      making of such  transfer.  Upon such  surrender  and,  if  required,  such
      payment,  the Company  shall execute and deliver a new Warrant or Warrants
      in the  name of the  assignee  or  assignees  and in the  denomination  or
      denominations specified in such instrument of assignment,  and shall issue
      to the assignor a new Warrant  evidencing  the portion of this Warrant not
      so assigned,  and this Warrant shall promptly be cancelled.  A Warrant, if
      properly  assigned,  may be  exercised by a new holder for the purchase of
      Warrant Shares without having a new Warrant issued.

                                     Page 9
<PAGE>

            b) New Warrants.  This Warrant may be divided or combined with other
      Warrants upon presentation  hereof at the aforesaid office of the Company,
      together with a written notice  specifying the names and  denominations in
      which new Warrants are to be issued,  signed by the Holder or its agent or
      attorney.  Subject to  compliance  with Section  4(a),  as to any transfer
      which may be involved in such division or  combination,  the Company shall
      execute and deliver a new Warrant or Warrants in exchange  for the Warrant
      or Warrants to be divided or combined in accordance with such notice.

            c) Warrant Register.  The Company shall register this Warrant,  upon
      records to be  maintained  by the Company for that purpose  (the  "Warrant
      Register"), in the name of the record Holder hereof from time to time. The
      Company may deem and treat the  registered  Holder of this  Warrant as the
      absolute  owner  hereof  for the  purpose  of any  exercise  hereof or any
      distribution  to the Holder,  and for all other  purposes,  absent  actual
      notice to the contrary.

            d) Transfer  Restrictions.  If, at the time of the surrender of this
      Warrant in connection  with any transfer of this Warrant,  the transfer of
      this Warrant shall not be registered pursuant to an effective registration
      statement under the Securities Act and under  applicable  state securities
      or blue sky laws, the Company may require, as a condition of allowing such
      transfer (i) that the Holder or transferee  of this  Warrant,  as the case
      may be, furnish to the Company a written opinion of counsel (which opinion
      shall be in form, substance and scope customary for opinions of counsel in
      comparable  transactions)  to the effect  that such  transfer  may be made
      without  registration  under the Securities Act and under applicable state
      securities or blue sky laws,  (ii) that the holder or  transferee  execute
      and  deliver to the  Company an  investment  letter in form and  substance
      acceptable to the Company and (iii) that the  transferee be an "accredited
      investor" as defined in Rule 501(a)(1),  (a)(2), (a)(3), (a)(7), or (a)(8)
      promulgated under the Securities Act or a qualified institutional buyer as
      defined in Rule 144A(a) under the Securities Act.

      Section 5. Covenants.

      (a)  Negative  Covenants.  Other than with  respect  to  actions  taken in
furtherance of consummating the Graphite  Transaction as set forth and described
in  accordance  with the  Purchase  Agreement,  so long as any  portion  of this
Warrant is outstanding,  without the prior written consent of the Holder,  which
consent may be withheld in the sole  discretion of the Holder,  the Company will
not and will not permit any of its Subsidiaries to directly or indirectly:

                  i. Sale of Assets,  Dissolution,  Etc. Transfer, sell, assign,
            lease  or  otherwise  dispose  of  all or  substantially  all of its
            properties  or assets,  or any  assets or  properties  necessary  or
            desirable for the proper conduct of its business, or transfer, sell,
            assign or  otherwise  dispose of any of its  accounts,  or  contract
            rights  to any  person  or  entity,  or  change  the  nature  of its
            business,  wind-up,  liquidate or  dissolve,  or agree to any of the
            foregoing,  other than in the ordinary  course of  business;

                                    Page 10
<PAGE>

                  ii.  No  Further   Issuance  of  Securities.   Other  than  in
            accordance  herewith,  and other  than with  respect  to any  Exempt
            Issuance  or any  issuance of  securities  to any Person or group of
            Persons in any transaction or series of related transactions, which,
            does not exceed,  in the aggregate,  30% of the then outstanding and
            issued  securities  of the  Company,  create,  issue or  permit  the
            issuance of any  additional  securities  of the Company or of any of
            its  Subsidiaries,  if any,  or any  rights,  options or warrants to
            acquire any such securities;

                  iii.  Agreement.  Enter  into  any  agreement  obligating  the
            Company to  undertake  any of the matters set forth in this  Section
            5(a).

      (b)  Affirmative  Covenants.  Other than with respect to actions  taken in
furtherance of consummating the Graphite  Transaction as set forth and described
in  accordance  with the  Purchase  Agreement,  so long as any  portion  of this
Warrant is  outstanding  and unless the Holder  otherwise  consents  in writing,
which consent may be withheld in the sole discretion of the Holder,  the Company
will:

            i. True Books.  Keep true books of record and account in which full,
      true  and  correct  entries  will  be  made  of all of  its  dealings  and
      transactions,  and set aside on its books such reserves as may be required
      by GAAP,  consistently  applied,  with respect to all taxes,  assessments,
      charges,  levies and claims referred to in (a) above,  and with respect to
      its business in general,  and include such  reserves in interim as well as
      year-end financial statements;

            ii. Right of Inspection. Permit any person designated by the Holder,
      at the Holder's expense, to visit and inspect any of the properties, books
      and financial  reports of the Company,  all at such reasonable  times upon
      three (3)  Business  Days  prior  notice to  Company,  and as often as the
      Holder may reasonably  request,  provided the Holder does not unreasonably
      interfere with the daily  operations of the Company and Holder  executes a
      confidentiality agreement; and

      iii.  Financial  Reporting.  The Company shall  provide to Holder  audited
annual  financial  statements,  audited by the Company's  independent  certified
public  accounting  firm.  Said  financial   statements  shall  be  prepared  in
accordance  with GAAP,  consistently  applied,  and shall be delivered to Holder
within  ninety  (90) days  after the close of the  Company's  fiscal  year.  The
Company  shall  provide  to  Holder  unaudited  quarterly  financial  statements
(including period to date and year to date actual to prior periods) presented in
accordance  with GAAP,  consistently  applied  (subject to such  exceptions  for
interim  financials  as may be  noted  by the  Company  thereon),  and  shall be
delivered to Holder within forty-five (45) days after the close of the Company's
quarter.  The Company shall also deliver any other reports reasonably  requested
by Holder.

      Section 6. Miscellaneous.

      a) Title  to  Warrant.  Prior  to the  Termination  Date  and  subject  to
compliance with applicable laws and Section 4 of this Warrant,  this Warrant and
all rights  hereunder  are  transferable,  in whole or in part, at the office or
agency of the  Company by the Holder in person or by duly  authorized  attorney,
upon surrender of this Warrant  together with the Assignment Form annexed hereto
properly  endorsed.  The transferee shall sign an investment  letter in form and
substance reasonably satisfactory to the Company.

                                    Page 11
<PAGE>

      b) No Rights as Shareholder Until Exercise.  This Warrant does not entitle
the Holder to any voting rights or other rights as a shareholder  of the Company
prior to the exercise hereof. Upon the surrender of this Warrant and the payment
of the  aggregate  Exercise  Price  (or by means of a  cashless  exercise),  the
Warrant  Shares so purchased  shall be and be deemed to be issued to such Holder
as the record  owner of such  shares as of the close of business on the later of
the date of such surrender or payment.

      c)  Loss,  Theft,  Destruction  or  Mutilation  of  Warrant.  The  Company
covenants that upon receipt by the Company of evidence  reasonably  satisfactory
to it of the loss, theft, destruction or mutilation of this Warrant or any stock
certificate  relating  to the  Warrant  Shares,  and in case of  loss,  theft or
destruction,  of indemnity or security reasonably  satisfactory to it (which, in
the case of the  Warrant,  shall not include the posting of any bond),  and upon
surrender and cancellation of such Warrant or stock  certificate,  if mutilated,
the Company  will make and deliver a new  Warrant or stock  certificate  of like
tenor  and  dated  as of such  cancellation,  in lieu of such  Warrant  or stock
certificate.

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

      e) Authorized Shares.

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

      Except  and to the extent as waived or  consented  to by the  Holder,  the
Company shall not by any action,  including,  without  limitation,  amending its
certificate of incorporation or through any reorganization,  transfer of assets,
consolidation,  merger,  dissolution,  issue or sale of  securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms of this  Warrant,  but will at all times in good  faith  assist in the
carrying  out of all such terms and in the taking of all such  actions as may be
necessary  or  appropriate  to protect the rights of Holder as set forth in this
Warrant against  impairment.  Without  limiting the generality of the foregoing,
the Company will (a) not increase the par value of any Warrant  Shares above the
amount payable therefor upon such exercise immediately prior to such increase in
par value,  (b) take all such action as may be necessary or appropriate in order
that the Company may  validly  and  legally  issue fully paid and  nonassessable
Warrant  Shares upon the  exercise  of this  Warrant,  and (c) use  commercially
reasonable  efforts to obtain all such  authorizations,  exemptions  or consents
from any public regulatory body having jurisdiction  thereof as may be necessary
to enable the Company to perform its obligations under this Warrant.

                                    Page 12
<PAGE>

      Before taking any action which would result in an adjustment in the number
of Warrant  Shares for which this  Warrant  is  exercisable  or in the  Exercise
Price, the Company shall obtain all such  authorizations or exemptions  thereof,
or consents  thereto,  as may be necessary  from any public  regulatory  body or
bodies having jurisdiction thereof.

      f)  Jurisdiction.  All questions  concerning the  construction,  validity,
enforcement and interpretation of this Warrant shall be determined in accordance
with the provisions of the Purchase Agreement.

      g) Restrictions.  The Holder acknowledges that the Warrant Shares acquired
upon the exercise of this Warrant,  if not  registered,  will have  restrictions
upon resale imposed by state and federal securities laws.

      h) Expenses.  If the Company  willfully and knowingly fails to comply with
any  provision of this  Warrant,  which  results in any material  damages to the
Holder,  the Company  shall pay to Holder such amounts as shall be sufficient to
cover  any  costs  and  expenses  including,  but  not  limited  to,  reasonable
attorneys' fees, including those of appellate proceedings, incurred by Holder in
collecting any amounts due pursuant hereto or in otherwise  enforcing any of its
rights, powers or remedies hereunder.

      i) Notices. Any notice, request or other document required or permitted to
be given or  delivered  to the  Holder  by the  Company  shall be  delivered  in
accordance with the notice provisions of the Purchase Agreement.

      j)  Limitation of Liability.  No provision  hereof,  in the absence of any
affirmative  action by Holder to  exercise  this  Warrant  or  purchase  Warrant
Shares, and no enumeration  herein of the rights or privileges of Holder,  shall
give rise to any liability of Holder for the purchase  price of any Common Stock
or as a stockholder  of the Company,  whether such  liability is asserted by the
Company or by creditors of the Company.

      k) Remedies.  Holder, in addition to being entitled to exercise all rights
granted by law,  including  recovery  of  damages,  will be entitled to specific
performance  of its rights under this Warrant.  The Company agrees that monetary
damages would not be adequate  compensation for any loss incurred by reason of a
breach by it of the  provisions  of this Warrant and hereby  agrees to waive the
defense  in any action for  specific  performance  that a remedy at law would be
adequate.

                                    Page 13
<PAGE>

      l) Successors and Assigns.  Subject to applicable  securities  laws,  this
Warrant  and the rights and  obligations  evidenced  hereby  shall  inure to the
benefit of and be binding upon the  successors of the Company and the successors
and permitted assigns of Holder.  The provisions of this Warrant are intended to
be for the benefit of all Holders from time to time of this Warrant and shall be
enforceable by any such Holder or holder of Warrant Shares.

      m) Amendment and Waiver. This Warrant may be modified or amended only with
the written  consent of the Company and the Holder.  No course of dealing or any
delay or failure to exercise  any right  hereunder  on the part of Holder  shall
operate as a waiver of such right or otherwise prejudice Holder's rights, powers
or remedies, notwithstanding the fact that all rights hereunder terminate on the
Termination Date.

      n) Severability.  Wherever possible,  each provision of this Warrant shall
be interpreted in such manner as to be effective and valid under applicable law,
but if any  provision of this Warrant  shall be  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 provisions
or the remaining provisions of this Warrant.

      o) Headings.  The headings used in this Warrant are for the convenience of
reference only and shall not, for any purpose, be deemed a part of this Warrant.

      p) Registration  Rights. The Holder has certain rights with respect to the
registration  of the Warrant  Shares upon exercise of this Warrant,  such rights
being  specifically  set forth in the  Purchase  Agreement  entered  into by and
between Holder and the Company on the date hereof.

                            [Signature Page Follows]

<PAGE>

      IN WITNESS WHEREOF,  the Company has caused this Warrant to be executed by
its officer thereunto duly authorized as of the date first written above.

BPK RESOURCES, INC.

By:  /s/ Christopher H. Giordano
  -------------------------------------
     Name:  Christopher H. Giordano
     Title:    Chief Executive Officer

<PAGE>

                               NOTICE OF EXERCISE

TO:      BPK RESOURCES, INC.

            (1)______The  undersigned hereby elects to purchase ________ Warrant
Shares of BPK  Resources,  Inc.  pursuant to the terms of the  attached  Warrant
(only if exercised in full),  and tenders herewith payment of the exercise price
in full, together with all applicable transfer taxes, if any.

            (2)______Payment shall take the form of (check applicable box):

                  [ ] in lawful money of the United States; or

                  [ ] the  cancellation  of such number of Warrant  Shares as is
necessary,  in  accordance  with the formula set forth in  subsection  2(c),  to
exercise  this  Warrant  with  respect to the maximum  number of Warrant  Shares
purchasable  pursuant to the cashless exercise procedure set forth in subsection
2(c).

            (3)______Please  issue a certificate  or  certificates  representing
said Warrant  Shares in the name of the  undersigned or in such other name as is
specified below:

         ----------------------------------------

The Warrant Shares shall be delivered to the following:

        ----------------------------------------

        ----------------------------------------

        ----------------------------------------

            (4) Accredited Investor.  The undersigned,  and, if applicable,  the
person or entity  identified in subsection 3 above, is an "accredited  investor"
as defined in  Regulation D  promulgated  under the  Securities  Act of 1933, as
amended.

[SIGNATURE OF HOLDER]

Name of Investing Entity: ______________________________________________________
Signature of Authorized Signatory of Investing Entity: _________________________
Name of Authorized Signatory: __________________________________________________
Title of Authorized Signatory: _________________________________________________
Date: __________________________________________________________________________

<PAGE>

                                 ASSIGNMENT FORM

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

            FOR VALUE RECEIVED,  the foregoing  Warrant and all rights evidenced
thereby are hereby assigned to

_______________________________________________ whose address is

_________________________________________________________________.

_________________________________________________________________

                                                  Dated: ______________, _______

                 Holder's Signature:  _____________________________

                 Holder's Address:    _____________________________

                                      _____________________________

Signature Guaranteed:  ___________________________________________

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

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]