Document:

EXHIBIT 4.1
                            STOCK PURCHASE AGREEMENT

      THIS STOCK PURCHASE  AGREEMENT is made as of the 15th day of January 2004,
by and between Diversinet Corp. (the "Company"),  a corporation  organized under
the laws of the province of Ontario,  Canada, with its principal offices at 2225
Sheppard Avenue East, Suite 1801,  Toronto,  Ontario,  M2J 5C2, Canada,  and the
purchasers  whose names and addresses are set forth on the signature page hereof
(collectively the "Purchaser").

      IN CONSIDERATION of the mutual covenants contained in this Agreement,  the
Company and the Purchaser agree as follows:

SECTION 1.  AUTHORIZATION OF ISSUANCE OF SECURITIES.  The Company has authorized
the issuance to the  Purchaser of one million  (1,000,000)  common shares of the
Company (the "Shares"),  no par value (a "Common Share") and one million and one
hundred thousand (1,100,000) purchase warrants of the Company (a "Warrant"), set
forth on the signature page hereof.  The Warrants will be  substantially  in the
form of Appendix III to this Agreement.

SECTION 2. CONSIDERATION.  At the Closing (as defined in Section 3), the Company
will issue the  Shares and the  Warrants  to the  Purchaser  as set forth on the
signature page hereof, and the Purchaser will enter into a consulting  agreement
with the  Company  and pay  U.S.$2,000,000  to the  Company,  upon the terms and
conditions hereinafter set forth.

SECTION  3.  DELIVERY  OF  SECURITIES  AT THE  CLOSING.  The  completion  of the
transaction (the "Closing") shall occur simultaneously with the execution hereof
and the consulting  agreement (the "Closing Date"). At the Closing,  the Company
will issue to the Purchaser (i) one or more stock certificates  representing the
Shares and (ii) one or more warrant  certificates  (in the form of Appendix III)
representing the Warrants, in each case registered in the name of the Purchaser,
or  in  such  nominee  name(s)  as  designated  by  the  Purchaser  in  writing,
representing the Shares. The name(s) in which the stock certificates and warrant
certificates  are to be  registered  are  set  forth  in the  Stock  Certificate
Questionnaire  attached  hereto  as  APPENDIX  I. The  Company's  obligation  to
complete the transaction herein  contemplated at the Closing shall be subject to
the following conditions, any one or more of which may be waived by the Company:
(a)  receipt  by the  Company  of  same-day  funds  in the full  amount  of U.S.
$2,000,000; (b) the accuracy in all material respects of the representations and
warranties  made by the Purchaser and the  fulfillment of those  undertakings of
the  Purchaser to be fulfilled  prior to or at the Closing,  and (c) the Company
agreeing to accept the Purchaser's  subscription prior to or at the Closing. The
Purchaser's  obligation to complete the transaction  herein  contemplated at the
Closing  shall be  subject  to the  accuracy  in all  material  respects  of the
representations and warranties made by the Company herein and the fulfillment of
those undertakings of the Company to be fulfilled prior to or at the Closing.

SECTION 4. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY. The Company
hereby represents and warrants to, and covenants with, the Purchaser as follows:

      4.1  ORGANIZATION  AND  QUALIFICATION.  The Company is a corporation  duly
organized,  validly  existing  and in good  standing  under the laws of Ontario,
Canada.

      4.2 AUTHORIZED  CAPITAL STOCK. The authorized capital stock of the Company
consists of an unlimited  number of Common  Shares.  The number of Common Shares
and all subscriptions,  warrants,  options,  convertible  securities,  and other
rights to purchase or otherwise  acquire equity securities of the Company issued
and outstanding as at December 31, 2003, are 11,042,944 common shares,  purchase
warrants to acquire  965,404  common  shares and stock  options to acquire up to
1,800,000 common shares.

      4.3  ISSUANCE,  SALE AND  DELIVERY OF THE SHARES.  The Shares and Warrants
have been duly authorized, and when issued, delivered and paid for in the manner
set forth in this Agreement, will be duly authorized, validly issued, fully paid
and non-assessable.

      4.4 DUE EXECUTION, DELIVERY AND PERFORMANCE OF THE AGREEMENTS. The Company
has full legal right, corporate power and authority to enter into this Agreement
and perform the transactions  contemplated  hereby. This Agreement has been duly
authorized,  executed  and  delivered by the Company.  The  consummation  by the
Company of the transactions  herein  contemplated will not violate any provision
of the  organizational  documents of the Company.  The  execution,  delivery and
performance of this Agreement by the Company and the consummation by the Company
of the transactions  herein  contemplated will not result in the creation of any
lien,  charge,  security  interest or encumbrance upon any assets of the Company
pursuant to the terms or provisions of, or conflict  with,  result in the breach
or violation of, or  constitute,  either by itself or upon notice or the passage
of time or both,  a default  under any  material  agreement,  mortgage,  deed of
trust, lease, franchise, license, indenture, permit or other instrument to which
the Company is a party or by which the Company or any of its  properties  may be
bound or affected and in each case which  individually or in the aggregate would
have a  material  adverse  effect on the  condition  (financial  or  otherwise),
properties, business, prospects, or results of operations of the Company and its
subsidiaries,  taken as a whole (a "Material Adverse Effect"), or any statute or
any authorization,  judgement, decree, order, rule or regulation of any court or
any regulatory body, administrative agency or other governmental body applicable
to the  Company or any of its  respective  properties.  Upon its  execution  and
delivery,  and  assuming  the valid  execution  thereof by the  Purchaser,  this
Agreement  will  constitute  a valid  and  binding  obligation  of the  Company,
enforceable  against  the  Company  in  accordance  with its  terms,  except  as
enforceability   may  be   limited   by   applicable   bankruptcy,   insolvency,
reorganization,  moratorium or similar laws affecting creditors' and contracting
parties' rights generally and except as enforceability may be subject to general
principles of equity (regardless of whether such enforceability is considered in
a proceeding in equity or at law).

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      4.5.  INTEGRATION,  ETC.  The  Company  has not in the  past  nor  will it
hereafter  take any action to sell,  offer for sale or solicit offers to buy any
securities of the Company  which would bring the offer,  issuance or sale of the
Shares and Warrants, as contemplated by this Agreement, within the provisions of
Section 5 of the Securities  Act.  Neither the Company nor any of its Affiliates
(as  defined  in Rule  501(b)  of  Regulation  D under the  Securities  Act) has
directly,  or through any agent, (i) sold, offered for sale, solicited offers to
buy or otherwise  negotiated  in respect of, any  "security"  (as defined in the
Securities  Act) which is or could be integrated with the sale of the Shares and
Warrants in a manner that would require the  registration  under the  Securities
Act  of  the  Shares  or  Warrants  or  (ii)  engaged  in any  form  of  general
solicitation  or general  advertising  (as those terms are used in  Regulation D
under the  Securities  Act) in  connection  with the  offering of the Shares and
Warrants  or in any manner  involving  a public  offering  within the meaning of
Section 4(2) of the Act.

      4.6  COMPLIANCE  WITH  SECURITIES  LAWS.  Subject to the  accuracy  of the
representations  and warranties of the Purchaser  contained herein, the issuance
of the  Shares  and  Warrants  to the  Purchaser  hereunder  is exempt  from the
registration and prospectus delivery requirements of the Securities Act of 1933,
as amended (the "Securities Act").

      4.7  ADDITIONAL  INFORMATION.  The  Company  has  made  available  to  the
Purchaser a true and complete  copy of each  report,  schedule,  and  definitive
proxy  statement  filed by the Company with the Commission  under the Securities
Exchange  Act of 1934  (the  "Exchange  Act")  since  November  1, 2001 (as such
documents  have since the time of their filing been  amended,  the  "Information
Documents").

As of their respective dates, the Information Documents complied in all material
respects with the requirements of the Exchange Act and the rules and regulations
of the SEC promulgated thereunder applicable to the Information  Documents,  and
none of the  Information  Documents,  at the time they were  filed with the SEC,
contained any untrue statement of a material fact or omitted to state a material
fact required to be stated  therein or necessary in order to make the statements
therein,  in  light  of the  circumstances  under  which  they  were  made,  not
misleading. None of the statements made in any such Information Documents is, or
has been,  required to be amended or updated  under  applicable  law (except for
such  statements as have been amended or updated in subsequent  filings prior to
the date hereof). As of their respective dates, the financial  statements of the
Company  included  in the  Information  Documents  complied  as to  form  in all
material aspects with applicable accounting requirements and the published rules
and  regulations  of the SEC and Canadian  regulatory  authorities  with respect
thereto.  Such  financial  statements  have been  prepared  in  accordance  with
Canadian generally accepted accounting principles,  consistently applied, during
the periods involved (except (i) as may be otherwise indicated in such financial
statements  or the  notes  thereto,  or (ii) in the  case of  unaudited  interim
statements,  to the extent they may not include footnotes or may be condensed or
summary statements) and fairly present in all material respects the consolidated
financial  position of the Company and its  consolidated  subsidiaries as of the
dates thereof and the  consolidated  results of their  operations and cash flows
for the periods then ended  (subject,  in the case of unaudited  statements,  to
normal  year-end  audit  adjustments).  Except as set  forth in the  Information
Documents, the Company has no liabilities,  contingent or otherwise,  other than
(i) liabilities incurred in the ordinary course of business and (ii) liabilities
not required under generally accepted  accounting  principles to be reflected or
disclosed in such financial statements.

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      4.8 ABSENCE OF CERTAIN CHANGES. Since October 31, 2003, there have been no
known  changes  or  developments  in the  Company,  its  business  or any of its
subsidiaries that may have a Material Adverse Effect.

      4.9  ABSENCE  OF  LITIGATION.  Except  as  disclosed  in  the  Information
Documents,  there  is no known  action,  suit,  claim,  proceeding,  inquiry  or
investigation  before  or  by  any  court,  public  board,   government  agency,
self-regulatory organization or body pending or, to the knowledge of the Company
or any of its subsidiaries,  threatened  against or affecting the Company or any
of its  subsidiaries,  or their officers or directors in their capacity as such,
that could have a Material Adverse Effect.

      4.10  COMPLIANCE  WITH  LAW.  The  Company  and  its  subsidiaries  are in
compliance  with all applicable  laws,  rules and  regulations,  other than such
noncompliance which would not have a Material Adverse Effect.

      4.11  DISCLOSURE.  All information  relating to the  Information  Document
provided to the  Purchasers in  connection  with the  transactions  contemplated
hereby is true and  correct in all  material  respects  and the  Company has not
knowingly  omitted to state any  material  fact  necessary  in order to make the
statements  made herein or therein,  in light of the  circumstances  under which
they were made, not misleading.  No known event or circumstance  has occurred or
exists with  respect to the Company or any of its  subsidiaries  or its or their
business, properties,  prospects,  operations or financial conditions, which has
not been  publicly  announced or disclosed  but under  Canadian or United States
law, rule or  regulation,  requires  public  disclosure or  announcement  by the
Company.

SECTION 5.  REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PURCHASER.

      5.1 The  Purchaser  represents  and warrants to, and covenants  with,  the
Company that: (i) the Purchaser is knowledgeable,  sophisticated and experienced
in making,  and is qualified to make,  decisions  with respect to investments in
securities  representing  an investment  decision like that involved  hereunder,
including  investments in securities  issued by the Company,  and has requested,
received, reviewed and understood all information it deems relevant in making an
informed  decision to purchase  the  securities  hereunder,  including,  without
limitation,  the  information  contained in the Information  Documents;  (ii) it
acknowledges that the offering of the securities  pursuant to this Agreement has
not  been  reviewed  by the  Commission  or any  state  or  Canadian  regulatory
authority;  (iii) the  Purchaser is acquiring  the  securities  set forth in the
signature  page  hereto,  for its own  account for  investment  only and with no
present  intention  of  distributing  any  of  the  Shares  or  Warrants  or any
arrangement or understanding  with any other persons  regarding the distribution
thereof;  (iv) the Purchaser  will not,  directly or  indirectly,  offer,  sell,
pledge, transfer or otherwise dispose of (or solicit any offers to buy, purchase
or otherwise  acquire or take a pledge of) any of the Shares or Warrants  except
in compliance  with the Securities Act, the Securities Act Rules and Regulations
and any  applicable  state  securities  or blue sky laws;  (v) the Purchaser has
completed or caused to be completed the Registration Statement Questionnaire and
the Stock Certificate Questionnaire,  attached hereto as APPENDIX I and APPENDIX
II,  for use in  preparation  of the  Registration  Statement,  and the  answers
thereto  are true and correct as of the date hereof and will be true and correct
as of the effective date of the Registration Statement;  (vi) the Purchaser has,
in connection  with its decision  enter into this  Agreement not relied upon any
representations or other information (whether oral or written) other than as set
forth in the Information Documents and the representations and warranties of the
Company contained herein;  (vii) the Purchaser has had an opportunity to discuss
this  investment with  representatives  of the Company and ask questions of them
and such questions have been answered to the full satisfaction of the Purchaser;
and (viii) the Purchaser is an "accredited  investor" within the meaning of Rule
501 of Regulation D promulgated under the Securities Act.

      5.2 The Purchaser  hereby  covenants with the Company not to make any sale
of the Shares or Warrants,  or of the Common  Shares  issuable  upon exercise of
such Warrants (the "Warrant Shares) without  satisfying the prospectus  delivery
requirements under the Securities Act, if any.

      5.3 The Purchaser further  represents and warrants to, and covenants with,
the Company that (i) the Purchaser has full right, power, authority and capacity
to enter into this  Agreement and to consummate  the  transactions  contemplated
hereby and has taken all necessary  action to authorize the execution,  delivery
and performance of this Agreement, (ii) the Purchaser is duly organized, validly
existing  and in  good  standing  under  the  laws of the  its  jurisdiction  of
organization,  and (iii) upon the execution and delivery of this Agreement, this
Agreement  shall  constitute  a valid and binding  obligation  of the  Purchaser
enforceable  in  accordance  with its  terms,  except as  enforceability  may be
limited by  applicable  bankruptcy,  insolvency,  reorganization,  moratorium or
similar laws affecting  creditors' and contracting parties' rights generally and
except  as  enforceability  may be  subject  to  general  principles  of  equity
(regardless  of whether such  enforceability  is  considered  in a proceeding in
equity or at law).

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      5.4  The  Purchaser   recognizes  that  an  investment  in  the  Company's
securities is speculative  and involves a high degree of risk,  including a risk
of total loss of the Purchaser's investment.

      5.5 All of the  information  provided  to the  Company  or its  agents  or
representatives  concerning the Purchaser's suitability to invest in the Company
and the representations and warranties contained herein, are complete,  true and
correct as of the date hereof.  The  Purchaser  understands  that the Company is
relying on the  statements  contained  herein to  establish  an  exemption  from
registration under U.S. federal and state securities laws.

      5.6 The address set forth in the signature page hereto is the  Purchaser's
true and correct domicile.

      5.7 The  Purchaser  covenants to provide the Company an updated,  accurate
and  complete  plan of  distribution  at all times  during  which the Company is
required to keep the Registration Statement in effect.

      5.8 The Purchaser  understands  and agrees that each  certificate or other
document  evidencing  any of the Shares or Warrant Shares shall be endorsed with
the  legend  in  substantially  the form set  forth  below  and the  certificate
evidencing the Warrants shall be endorsed with the legend in  substantially  the
form set  forth in  Appendix  III,  as well as any  other  legends  required  by
applicable  law,  and the  Purchaser  covenants  that the  Purchaser  shall  not
transfer  the  Shares,  Warrants  or  Warrant  Shares  represented  by any  such
certificate without complying with the restrictions on transfer described in the
legends endorsed on such certificates:

      THE SECURITIES  REPRESENTED BY THIS  CERTIFICATE  HAVE NOT BEEN REGISTERED
      UNDER THE  SECURITIES  ACT OF 1933,  AS  AMENDED  ("SECURITIES  ACT"),  OR
      REGISTERED OR QUALIFIED  UNDER ANY  APPLICABLE  STATE  SECURITIES  LAWS OR
      CANADIAN  SECURITIES LAWS. THESE SECURITIES MAY NOT BE TRANSFERRED  UNLESS
      (A) COVERED BY AN EFFECTIVE  REGISTRATION  STATEMENT  UNDER THE SECURITIES
      ACT AND  REGISTERED  OR  QUALIFIED  UNDER  APPLICABLE  STATE  LAW AND,  IF
      APPLICABLE,   CANADIAN   SECURITIES  LAWS  OR  (B)  EXEMPTIONS  FROM  SUCH
      REGISTRATION OR QUALIFICATION  REQUIREMENTS ARE AVAILABLE.  AS A CONDITION
      TO PERMITTING  ANY TRANSFER OF THESE  SECURITIES,  THE COMPANY MAY REQUIRE
      THAT IT BE FURNISHED WITH AN OPINION OF COUNSEL  ACCEPTABLE TO THE COMPANY
      TO THE EFFECT THAT NO REGISTRATION OR  QUALIFICATIONS  IS LEGALLY REQUIRED
      FOR SUCH TRANSFER.

      5.9 The Purchaser  acknowledges  the reporting  requirements  under US and
Canadian  securities  laws which may be applicable to it in connection  with the
acquisition of the securities hereunder, including those of (i) section 13(d) of
the Securities and Exchange Act of 1934,  (ii) section 101 of the Securities Act
(Ontario) and section 111 of the  Securities Act (British  Columbia),  and (iii)
section 107 of the Securities Act (Ontario) and section 87 of the Securities Act
(British Columbia) (the provisions referred to in sections (ii) and (iii) relate
to early warning requirements and insider reporting  requirements  applicable in
connection with the  acquisition by the Purchaser of common shares  resulting in
the Purchaser and persons  acting  jointly or in concert  holding 10% or more of
the common  shares of the Company).

SECTION   6.   SURVIVAL   OF   REPRESENTATIVES,   WARRANTIES   AND   AGREEMENTS.
Notwithstanding  any  investigation  made by any  party to this  Agreement,  all
covenants,  agreements,  representations  and warranties made by the Company and
the Purchaser  herein and in any  certificates or documents  delivered  pursuant
hereto or in connection  herewith  shall  survive  following the delivery to the
Purchaser of the Shares and Warrants being purchased and the payment therefor.

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Each party shall indemnify the others for all losses, claims, damages,
liabilities or expenses actually incurred ("Losses") (including reasonable
attorneys' fees and cost of enforcement) arising out of any breach of that
party's covenants, agreements, representations or warranties in this Agreement;
provided that in no event shall any party be responsible for Losses exceeding,
individually or in the aggregate, the purchase price set out in section 2 of
this Agreement.

SECTION 7.  REGISTRATION OF THE SHARES:  COMPLIANCE WITH THE SECURITIES ACT.

      7.1  REGISTRATION  STATEMENT  ON FORM  F-3.  The  Company  represents  and
warrants that the Company  currently meets the  requirements for use of Form F-3
under the  Securities  Act.  The Company  shall file all reports  required to be
filed by the Company with the  Commission in a timely manner and take such other
actions as shall be necessary for the Company to maintain such  eligibility  for
the use of Form F-3.

      7.2 REGISTRATION PROCEDURES AND EXPENSES. The Company shall:

            (a)  use  its  best  efforts,  but in no  event  later  than 60 days
following  the date of  Closing,  to prepare  and file,  with the  Commission  a
Registration  Statement  under the Securities Act following the date of Closing,
and use its  reasonable  best  efforts to cause the  Registration  Statement  to
become  effective  as soon as  practicable  thereafter,  relating  to the resale
pursuant to Rule 415 under the  Securities Act of the  Registrable  Stock by the
Holders from time to time through the  automated  quotation  system of Nasdaq or
the  facilities of any national  securities  exchange on which the Common Shares
are then  traded  or in  privately-negotiated  transactions,  and  otherwise  as
described  in the  "Plan of  Distribution"  section  of the  Company's  Form F-3
Registration Statement filed on July 22, 2003; o

            (b) Each time the Company  shall  determine  to file a  Registration
Statement in connection with the proposed offer and sale for money of any of its
securities by it or any of its security  holders,  the Company will give written
notice of its determination to all Holders. Upon the written request of a Holder
given  within  twenty  (20)  days  after the  giving  of any such  notice by the
Company,  the  Company  will use its best  efforts  to cause all such  shares of
Registrable Stock, the Holders of which have so requested  registration thereof,
to be included in such  Registration  Statement,  all to the extent requisite to
permit the sale or other disposition by the prospective seller or sellers of the
Registrable Stock to be so registered. If the Registration Statement is to cover
an  underwritten  distribution,  the Company shall use its best efforts to cause
the Registrable  Stock requested for inclusion  pursuant to this paragraph to be
included in the  underwriting on the same terms and conditions as the securities
otherwise being sold through the underwriters. If, in the good faith judgment of
the managing underwriter of such public offering, the inclusion of any or all of
the  Registrable  Stock  requested for inclusion  pursuant to this paragraph and
other  securities  would  interfere with the  successful  marketing of a smaller
number of shares to be offered,  then the number of shares of Registrable  Stock
and other  securities  to be included in the  offering  (except for shares to be
issued by the Company in an offering  initiated by the Company) shall be reduced
accordingly on a prorata basis with the other security holders.

            (c) promptly and in good faith respond to all Commission's  comments
on the Registration Statement, and within two (2) business days of receipt of an
indication  from  the  Commission  that  it has  no  further  comments,  request
acceleration  of  the   effectiveness   of  the  registration  at  the  earliest
practicable time;

            (d)  prepare  and  file  with the  Commission  such  amendments  and
supplements to the Registration  Statement and the prospectus used in connection
therewith as may be necessary to keep the Registration Statement effective until
the  earlier of (i) the third  anniversary  of the Closing  Date,  (ii) the date
following  exercise of the  Warrants on which the Holder may sell all the Shares
then held by the Holder within a three-month  period in accordance with Rule 144
under the Securities Act ("Rule 144"), or (iii) such time as all the Registrable
Stock  purchased  by the  Holder  have  been  sold  pursuant  to a  registration
statement;

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            (e) so long as the Registration  Statement is effective covering the
resale of the Registrable Stock owned by the Holders, furnish to the Holder such
reasonable  number of copies of  prospectuses  and such other  documents  as the
Holders may reasonably  request, in order to facilitate the public sale or other
disposition of all or any of the Registrable Stock;

            (f) file documents required of the Company for blue sky clearance in
states  specified  in  writing by the  Purchaser;  provided,  however,  that the
Company shall not be required to qualify to do business or consent to service of
process  in any  jurisdiction  in  which  it is not so  qualified  or has not so
consented;

            (g)  bear  all  expenses  in  connection   with  the  procedures  in
paragraphs  (a) through  (f) of this  Section  7.2 and the  registration  of the
Shares and Warrant Shares pursuant to the Registration Statement, except for any
underwriting   discounts,   brokerage  fees  and  commissions  incurred  by  the
Purchaser, if any; and

            (h) with a view to making available to the Purchaser the benefits of
Rule  144 (or its  successor  rule)  and any  other  rule or  regulation  of the
Commission  that may at any time  permit  the  Purchaser  to sell the Shares and
Warrant Shares to the public  without  registration,  the Company  covenants and
agrees to: (i) make and keep public  information  available,  as those terms are
understood and defined in Rule 144, until the earlier of (A) such date as all of
the  Purchaser's  Shares  and  Warrant  Shares  may be  resold  within  a  given
three-month  period  pursuant to Rule 144 or any other rule of similar effect or
(B) such date as all of the  Purchaser's  Shares and Warrant  Shares  shall have
been resold and (ii) file with the Commission in a timely manner all reports and
other  documents  required of the Company under the Securities Act and under the
Exchange Act.

            (i) notify the Holders participating in such registration,  promptly
after  it  shall  receive  notice  thereof,  of the  date  and  time  when  such
Registration  Statement  and each  post-effective  amendment  thereto has become
effective or a supplement to any prospectus  forming a part of such Registration
Statement has been filed;

            (j) notify the Holders  participating in such registration  promptly
of any request by the  Commission or any state  securities  commission or agency
for the amending or supplementing of such  Registration  Statement or prospectus
or for additional information;

            (k) prepare and  promptly  file with the  Commission,  and  promptly
notify  such  participating  Holders  of  the  filing  of,  such  amendments  or
supplements to such Registration  Statement or prospectus as may be necessary to
correct any  statements or omissions if, at the time when a prospectus  relating
to such  securities is required to be delivered  under the  Securities  Act, any
event has  occurred  as the  result of which  any such  prospectus  or any other
prospectus  as then in effect  would  include an untrue  statement of a material
fact or omit to state  any  material  fact  required  to be  stated  therein  or
necessary to make the statements therein not misleading;

            (l)  advise  such  participating  Holders,  promptly  after it shall
receive notice or obtain knowledge thereof, of the issuance of any stop order by
the  Commission  or any state  securities  commission or agency  suspending  the
effectiveness of such Registration Statement or the initiation or threatening of
any proceeding for that purpose and promptly use its best efforts to prevent the
issuance of any stop order or to obtain its withdrawal if such stop order should
be issued;

            (m) cooperate with the Holders to facilitate the timely  preparation
and  delivery   (under  normal  way  settlement   procedures)  of   certificates
representing  securities to be sold pursuant to any Registration  Statement free
of any  restrictive  legends and in such  denominations  and  registered in such
names as Holders  may  request  prior to sales of  securities  pursuant  to such
Registration Statement;

            (n)  comply  with  all  applicable  rules  and  regulations  of  the
Commission and shall make generally  available as soon as practicable  after the
effective date of the applicable  Registration  Statement an earnings  statement
satisfying the provisions of Section 11(a) of the Securities Act;

            (o) permit the  Purchaser  to assign the rights under this Section 7
to any other person in connection with a transfer of the Registrable Stock.

                                       41
<PAGE>

7.3      BLACKOUT PERIOD

            (a) The Company may suspend,  at any time or from time to time,  the
use of the  prospectus  which  forms  part of the  Registration  Statement  (the
"Prospectus")  for a period or periods of time not to exceed an  aggregate of 60
calendar  days in any 12 month  period,  provided  that  during any three  month
period such aggregate  period of time shall not exceed 30 calendar days (each, a
"Blackout  Period"),  if the Company determines that the filing or continued use
of the Prospectus would (w) require the public disclosure of material non-public
information  concerning any transaction or negotiations involving the Company or
any of its affiliates that, in the good faith judgment of the Board of Directors
of  the  Company,   would   materially   interfere  with  such   transaction  or
negotiations, (x) otherwise require premature disclosure of information that, in
the  good  faith  judgment  of the  Board of  Directors  of the  Company,  would
adversely  affect or  otherwise  be  detrimental  to the  Company,  (y)  require
amendment or  supplement to the  Registration  Statement due to the happening of
any event that comes to the  attention  of the  Company and as a result of which
the Registration  Statement or Prospectus would contain an untrue statement of a
material fact or omit to state a material fact required to be stated  therein or
necessary  to make the  statements  therein,  in the light of the  circumstances
under which they were made, not misleading,  or (z) adversely affect the success
of an offering of securities by the Company which the Company proposes to or has
registered  under  applicable  securities  laws.  The Company  shall provide the
Holders whose Registrable  Stock is registered under the Registration  Statement
with  written  notice  of  the  commencement  of a  Blackout  Period  and of the
termination of such Blackout Period.

            (b) The Purchaser  agrees that,  upon receipt of any written  notice
from the Company of the happening of any event of the kind  described in Section
7.3(a)  (a  "Material   Event"),   the  Purchaser  will  forthwith   discontinue
disposition  of the  Registrable  Stock under the  Prospectus  until the Company
confirms  in  writing  that the  Blackout  Period  has  terminated  and that the
Prospectus may be used for the disposition of Registrable Stock or until receipt
of copies of a supplemented or amended  Prospectus,  and, if so requested by the
Company,  will deliver to the Company all copies of the Prospectus  covering the
Registrable Stock in its possession at the time of receipt of such notice.

            (c) The Purchaser shall, at any time it is engaged in a distribution
of Registrable Stock, comply with all applicable laws.

7.4      INDEMNIFICATION AND CONTRIBUTION.

            (a) The Company  will  indemnify  and hold  harmless  each Holder of
shares of  Registrable  Stock  which are  included in a  Registration  Statement
pursuant to the provisions of this Agreement, the directors, officers, employees
and agents of such Holder,  any  underwriter  (as defined in the Securities Act)
for  such  Holder,  the  directors,  officers,  employees  and  agents  of  such
underwriter,  and any person who controls such Holder or such underwriter within
the  meaning  of the  Securities  Act or the  Exchange  Act,  and  each of their
successors,  from and  against  any and all claims,  actions,  demands,  losses,
damages  or  liabilities,  joint or  several,  to which  they or any of them may
become  subject under the  Securities  Act, the Exchange Act or other federal or
state statutory law or regulation, at common law or otherwise, or under Canadian
law, insofar as such claims,  actions,  demands,  losses, damages or liabilities
arise out of or are based upon any untrue  statement or alleged untrue statement
of any material fact  contained in such  Registration  Statement  (including all
documents  incorporated  therein by  reference)  as  originally  filed or in any
amendment thereto,  any preliminary or final prospectus contained therein or any
amendment or supplement  thereto, or arise out of or are based upon the omission
or alleged  omission  to state  therein a material  fact  required  to be stated
therein or necessary to make the statements therein not misleading and agrees to
reimburse  each  such  Holder,  as  incurred,  for any  legal or other  expenses
reasonably incurred by it in connection with investigating or defending any such
claim, action,  demand loss, damage or liability;  provided,  however,  that the
Company  will not be liable in any such case to the extent  that any such claim,
action,  demand,  loss,  damage,  or liability arises out of or is based upon an
untrue  statement or alleged untrue statement or omission or alleged omission so
made in reliance upon and in strict conformity with information  furnished or on
behalf of such Holder,  specifically  for use in the preparation  thereof.  This
indemnity  shall be in addition to any liability which the Company may otherwise
have and shall be in addition to any subsequently executed indemnity agreements.

            (b) Each  Holder  of  shares  of the  Registrable  Stock  which  are
included in a registration  pursuant to the  provisions of this Agreement  will,
severally  and not  jointly,  indemnify  and  hold  harmless  the  Company,  the
directors,  officers,  employees  and agents of the  Company  and any person who
controls the Company  within the meaning of the  Securities  Act or the Exchange
Act from and against any and all claims,  actions,  demands,  losses, damages or
liabilities,  joint or several,  to which they or any of them may become subject
under the Securities  Act, the Exchange Act or other federal or state  statutory
law or regulation, at common law or otherwise, or under Canadian law, insofar as
such claims,  actions,  demands,  losses, damages or liabilities arise out of or

                                       42
<PAGE>

are based upon any untrue  statement or alleged untrue statement of any material
fact  contained  in  such  Registration   Statement   (including  all  documents
incorporated  therein by  reference)  as  originally  filed or in any  amendment
thereto,  any preliminary or final prospectus contained therein or any amendment
or supplement thereto, or arise out of or are based upon the omission or alleged
omission  to state  therein a material  fact  required  to be stated  therein or
necessary to make the  statements  therein not  misleading,  in each case to the
extent,  but only to the extent that such  untrue  statement  or alleged  untrue
statement or omission or alleged  omission  was so made in reliance  upon and in
strict conformity with written  information  furnished by such Holder for use in
the preparation thereof;  provided,  that the liability of each Holder hereunder
shall be limited to the  proportion  of any such claim,  action,  demand,  loss,
damage,  liability,  cost or expense which is equal to the  proportion  that the
public  offering  price of the shares of  Registrable  Stock sold by such Holder
under  such  Registration  Statement  bears to the total  offering  price of all
securities  sold  thereunder,  but not,  in any event,  to exceed  the  proceeds
received by such Holder from the sale of shares of Registrable  Stock covered by
the Registration Statement. This indemnity shall be in addition to any liability
which  such  Holder  may  otherwise  have  and  shall  be  in  addition  to  any
subsequently executed indemnity agreements.

            (c) In order to provide for just and equitable contribution to joint
liability  under the  Securities  Act in any case in which either (i) any Holder
exercising  rights under this Agreement,  or any controlling  Person of any such
Holder,  makes a claim for  indemnification  pursuant to this  Section but it is
judicially  determined (by the entry of a final judgment or decree by a court of
competent jurisdiction and the expiration of time to appeal or the denial of the
last right of appeal) that such indemnification may not be enforced in such case
notwithstanding  the fact that this Section provides for indemnification is such
case, or (ii) contribution  under the Securities Act may be required on the part
of any such selling Holder or any such controlling  Person in circumstances  for
which  indemnification  is provided  under this Section;  then, and in each such
case,  the  Company and such Holder will  contribute  to the  aggregate  losses,
claims, damages or liabilities to which they may be subject (including legal and
other  expenses  reasonably  incurred  in  connection  with  or  defending  same
(collectively  "Losses")) in such  proportion as is  appropriate  to reflect the
relative fault of the  indemnifying  party, on the one hand, and the indemnified
party, on the other.  Relative fault shall be determined by reference to whether
any alleged untrue statement or omission relates to information  provided by the
indemnifying  party, on the one hand, or by the indemnified  party, on the other
hand. The parties agree that it would not be just and equitable if  contribution
were determined by pro rata  allocation or any other method of allocation  which
does not  take  account  of the  equitable  considerations  referred  to  above.
Notwithstanding  the  provisions  of this  paragraph  (c),  no person  guilty of
fraudulent  misrepresentation  (within  the  meaning  of  Section  11(f)  of the
Securities  Act) shall be entitled to  contribution  from any person who was not
guilty of such fraudulent misrepresentation.  For purposes of this Section, each
person who controls a Holder within the meaning of either the  Securities Act or
the Exchange Act and each director,  officer,  employee and agent of such Holder
shall have the same rights to contribution  as such Holder,  and each person who
controls  the Company  within the  meaning of either the  Securities  Act,  each
officer of the Company who shall have signed the Registration Statement and each
director  of the  Company  shall  have the same  rights to  contribution  as the
Company,  subject in each case to the  applicable  terms and  conditions of this
paragraph  (d);  provided,  however,  that,  in any such case,  (A) no person or
entity  guilty of  fraudulent  misrepresentation  (within the meaning of Section
11(f) of the Securities Act) will be entitled to contribution from any person or
entity who was not guilty of such fraudulent  misrepresentation  and (B) no such
Holder  will be  required  to  contribute  any  amount in  excess of the  public
offering  price of all such  Registrable  Stock  offered by it  pursuant to such
Registration Statement.

            (d) The  provisions  of this  Section  will remain in full force and
effect,  regardless of any  investigation  made by or on behalf of any Holder or
the  Company  or  any  of  the  officers,  directors,  employees  or  agents  or
controlling persons referred to in this Section,  and will survive the sale by a
Holder of securities covered by a Registration Statement.

7.5      DEFINITIONS.  The following terms shall be used in this Section with
                       the following respective meanings:

         "Commission" means the Securities and Exchange Commission.

         "Holder" means any holder of Registrable Stock.

         "Registrable Stock" means the Shares and Warrant Shares whether owned
         by a Purchaser or any third party.

                                       43
<PAGE>

"Registration  Statement"  means a registration  statement  filed by the Company
with the Commission for a public  offering and sale of securities of the Company
(other than a registration statement on Form S-8, Form F-4, or successor form).

SECTION 8. NOTICES.  All notices,  requests,  consents and other  communications
hereunder  shall be in writing,  shall be mailed by  first-class  registered  or
certified  airmail,  confirmed  facsimile  or  nationally  recognized  overnight
express  courier postage  prepaid,  and shall be deemed given when so mailed and
shall be delivered as addressed as follows:

                  if to the Company, to:
                  Diversinet Corp.
                  2225 Sheppard Avenue East, Suite 1801
                  Toronto, Ontario  M2J 5C2, Canada
                  Facsimile: (416) 756-7346
                  Attention: Chief Financial Officer

or to such other  person at such other place as the Company  shall  designate to
the Purchaser in writing; and

if to the Purchaser,  at its address as set forth at the end of this  Agreement,
or at such other address or addresses as may have been  furnished to the Company
in writing.

SECTION 9.  CHANGES.  This  Agreement  may not be  modified  or  amended  except
pursuant to an instrument in writing, signed by the Company and the Purchaser.

SECTION 10.  HEADINGS.  The headings of the various  sections of this  Agreement
have been inserted for  convenience of reference only and shall not be deemed to
be part of this Agreement.

SECTION 11.  SEVERABILITY.  In case any  provision  contained in this  Agreement
should be  invalid,  illegal or  unenforceable  in any  respect,  the  validity,
legality and enforceability of the remaining  provisions  contained herein shall
not in any way be affected or impaired thereby.

SECTION 12.  GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York,  without giving effect to any
choice of law provisions thereof.

SECTION  13.  COUNTERPARTS.  This  Agreement  may be  executed  in  two or  more
counterparts,  each of which shall  constitute  an original,  but both of which,
when taken  together,  shall  constitute  but one  instrument,  and shall become
effective  when one or more  counterparts  have been signed by each party hereto
and delivered to the other party.

SECTION 14. ENTIRE AGREEMENT.  This Agreement (including the attachments hereto)
contains the entire  agreement of the parties with respect to the subject matter
hereof and supersedes and is in full  substitution for any and all prior oral or
written  agreements  and  understandings  between  them  related to such subject
matter,  and neither  party  hereto  shall be liable or bound to the other party
hereto in any manner with respect to such subject matter by any representations,
indemnities, covenants or agreements except as specifically set forth herein.

SECTION 15. RIGHT OF ACCEPTANCE.  The Purchaser acknowledges and agrees that the
Company shall have the right, at its sole discretion, to accept or reject, up to
the Closing,  any subscription for securities and that acceptance thereof is not
subject to the  Company  having  received  any  minimum  amount of  subscription
proceeds.  The Purchaser further  acknowledges and agrees that execution of this
Agreement by the  Purchaser  shall not result in any  obligation  on the Company
until such time as this  Agreement  shall have been duly executed by the Company
and Closing shall have occurred.  Any funds received by the Company or its agent
from the  Purchaser on account of the  transaction  contemplated  hereby will be
returned  to the  Purchaser  (without  interest  or  deduction)  at the  address
indicated  in  Appendix  I in the  event  the  Company  determines,  in its sole
discretion, to reject the Purchaser's subscription.

                                       44
<PAGE>

SECTION 16. REIMBURSEMENT OF EXPENSES.  Upon Closing, the Company will reimburse
the  Purchaser  for  all  reasonable  out-of-pocket  expenses  incurred  by  the
Purchasers (including, without limitation,  reasonable outside attorneys' fees).
Such amount shall not exceed US$7,500.

      IN WITNESS  WHEREOF,  the parties  hereto have caused this Agreement to be
executed by their duly authorized representatives shown below:

---------------------------------- ---------------------------------------------
Jay Wigdale                        Lakefront Partners, LLC
                                   By: Lakefront Capital Management, LLC
                                   By: Jay Wigdale, Sole Member

205 E. Wisconsin Ave, Ste 220      205 E. Wisconsin Ave, Ste 220
Milwaukee, WI 53202                Milwaukee, WI 53202

Warrants: 1,100,000                Shares: 1,000,000

---------------------------------- ---------------------------------------------
Date:                              Date:

Accepted and Agreed to by:

                                   DIVERSINET CORP.

                                   By:
                                       -----------------------------------------
                                       Nagy Moustafa, President
                                       and Chief Executive Officer

                                   Date:
                                         ---------------------------------------

                                       45Exhibit 10.27
                                   [FORM OF]
                                PROMISSORY NOTE

$_________                        Houston, Texas                _______ __, 200_

      FOR VALUE RECEIVED, on the dates and in the amount so stipulated, the
undersigned, Excalibur Industries, Inc., a Delaware corporation with its
principal place of business located at 16825 Northchase Dr., Ste 630, Houston,
TX 77060 (hereinafter referred to as "Maker," whether one or more), hereby
agrees and promises to pay to WSHS, Inc. (hereinafter referred to as "Payee,"
which term shall in every instance refer to any owner or holder of this Note),
in care of its Agent, William Stuart, at 1906 Castlerock, Houston, Texas 77090
or at such other place and to such other party or parties as the Payee may from
time to time designate in writing, on demand, the principal sum of
___________________________ AND NO/100 ($___________) in coin or currency of the
United States of America. Interest shall accrue thereon from and after the date
hereof until maturity at the rate of prime (as published in the Wall Street
Journal) plus 1.5% per annum until paid, but in no event shall the interest
exceed the maximum amount of non-usurious interest allowed from time to time by
applicable law ("Highest Lawful Rate").

      The Maker shall have the right to prepay the entire principal sum hereof
or any portion hereof at any time and from time to time prior to maturity,
without penalty.

      Upon Maker's failure to pay any amounts when due, Payee will send a notice
requesting a cure by the Maker. The Maker will have thirty (30) days after
receipt of written notice to cure the default.

      If this Note is collected by suit, through probate, or bankruptcy court,
or by any other judicial proceedings, or if this Note is not paid at maturity,
howsoever such maturity may be brought about, and is placed in the hands of an
attorney for collection, then the Maker shall be liable to pay, in addition to
all other amounts owing hereunder, reasonable attorneys' fees.

      The Maker and all sureties, endorsers, and guarantors of this Note: (i)
waive presentment for payment, protest, and notice of protest, (ii) agree to any
substitution, exchange or release of any party primarily or secondarily liable
hereon, (iii) agree that the Payee or other holder hereof shall not be required
first to institute suit or exhaust its remedies hereon against the Maker or
others liable or to become liable hereon or to enforce its rights against any
security hereof in order to enforce payment of this Note by them, and (iv)
consent to any extension or postponement of time of payment of this Note and to
any other indulgence with respect hereto without notice thereof to any of them.

      This Note is intended to be performed in accordance with and only to the
extent permitted by all applicable law. If any portion of this Note or the
application thereof to any person or circumstance shall, for any reason and to
any extent, be invalid or unenforceable, neither the remainder of this
instrument nor the application of such provisions to other persons or

                                       -1-
<PAGE>

circumstances shall be affected thereby, but rather shall be enforced to the
greatest extent permitted bylaw.

      This Note has been entered into in accordance with, and shall be governed
and controlled by, the laws of the State of Texas.

      Executed this ___ th day of __________, 200__.

                                          -------------------------------
                                          Matthew C. Flemming
                                          Excalibur Industries, Inc.
                                          Chief Financial Officer

                                      -2-

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