Document:

Exhibit 10.15

                          SECURITIES PURCHASE AGREEMENT

                  THIS SECURITIES  PURCHASE  AGREEMENT,  dated as of the date of
acceptance  set forth  below,  is entered  into by and between  HEALTH  SCIENCES
GROUP, INC., a Colorado  corporation,  with headquarters  located at 6080 Center
Drive, 6th Floor, Los Angeles  California 90045 (the "Company"),  and CASTLERIGG
MASTER INVESTMENTS,  LTD., a corporation organized under the laws of the British
Virgin Islands with  headquarters  at 1251 Avenue of the Americas,  New York, NY
10020 (the "Lender").

                              W I T N E S S E T H:

                  WHEREAS,   the  Company  and  the  Lender  are  executing  and
delivering  this Agreement in accordance with and in reliance upon the exemption
from  securities  registration  for  offers  and sales to  accredited  investors
afforded,  INTER  alia,  by Rule 506  under  Regulation  D  ("Regulation  D") as
promulgated by the United States Securities and Exchange  Commission (the "SEC")
under the Securities Act of 1933, as amended (the "1933 Act"),  and/or  Sections
4(2) and 4(6) of the 1933 Act; and

                  WHEREAS,   subject  to  the  terms  and   conditions  of  this
Agreement,  the Lender's wishes to purchase a 12% Secured Convertible  Debenture
of the Company in the principal amount of $500,000.00 (the  "Debenture"),  which
Debenture will be convertible  into shares of common stock,  $.001 par value per
share,  of the Company (the "Common  Stock"),  upon the terms and subject to the
conditions  of the  Debenture,  together with the Warrant (as defined in Section
4(e) below)  exercisable for the purchase of shares of Common Stock, and subject
to acceptance of this Agreement by the Company;

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

                  1. AGREEMENT TO PURCHASE; PURCHASE PRICE.

                  a. Purchase of Debenture; Certain Definitions.

                  (i) Subject to the terms and  conditions of this Agreement and
the other  Transaction  Agreements,  the Lender  hereby  agrees to purchase  the
Debenture  in the  principal  amount of $500,000  (the  "Purchase  Price").  The
Debenture  shall have the terms and conditions of, and be  substantially  in the
form attached hereto as, Annex I.

                  (ii) The  Purchase  Price  shall be payable  in United  States
Dollars.

                  b. Certain Definitions.  As used herein, each of the following
terms has the meaning set forth below, unless the context otherwise requires:

                  (i)  "Affiliate"  means,  with  respect to a  specific  Person
referred to in the relevant  provision,  another Person who or which controls or
is controlled by or is under common control with such specified Person.

                  (ii)  "Closing  Date"  means  the date of the  closing  of the
purchase and sale of the Debenture and Warrants upon the release of the Purchase
Price from escrow, as provided herein.

                  (iii) "Company Control Person" means each director,  executive
officer,  promoter,  and such  other  Persons as may be deemed in control of the
Company  pursuant  to Rule 405 under the 1933 Act or  Section 20 of the 1934 Act
(as defined below).

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"Conversion  Date" means the date on which notice is received of conversion with
respect to any Debenture,  provided however,  that the Conversion Date shall not
precede the earlier of (A) 150 days after the Closing  Date,  (B) the  Effective
Date or (C) the  date  that  any  shareholder  of the  Company  who  became  the
beneficial  owner of shares of Common Stock of the Company  within the 12 months
preceding the date of the Debenture issued pursuant to this Agreement sells such
shares of Common Stock in a public sale pursuant to Rule 144 under the 1933 Act.

"Conversion Shares" means the shares of Common Stock issuable upon conversion of
the  Debenture  (including,  if relevant,  accrued  interest on the Debenture so
converted).

(vi)  "Conversion  Price"  means the lower of (A) 30% below the average VWAP per
share of Common  Stock  during the five  trading  dates prior to the  Conversion
Date,  but in no event lower than the Floor Price,  or (B) $0.85 per  Conversion
Share.

 "Effective  Date"  means  the  effective  date  of the  Registration  Statement
covering  the  Registrable  Securities  (as  those  terms  are  defined  in  the
Registration Rights Agreement) relating to the Securities.

(viii) "Floor Price" means $0.85 per share.

(ix)  "Holder"  means the  Lender  and any other  Person  holding  the  relevant
Securities.

                  (x) "Last Audited Date" means December 31, 2002.

                  (xi) "Lender  Control  Person" means each director,  executive
officer,  promoter,  and such  other  Persons as may be deemed in control of the
Lender pursuant to Rule 405 under the 1933 Act or Section 20 of the 1934 Act.

                  (xii) "Material  Adverse Effect" means an event or combination
of events, which individually or in the aggregate,  would reasonably be expected
to (w) materially  adversely affect the legality,  validity or enforceability of
the  Securities or any of the  Transaction  Agreements,  (x) have or result in a
material  adverse  effect on the results of  operations,  assets,  or  condition
(financial or otherwise) of the Company and its subsidiaries,  taken as a whole,
(y)  materially  adversely  impair the  Company's  ability to perform fully on a
timely basis its  obligations  under any of the Transaction  Agreements,  or (z)
materially and adversely affect the value of the rights granted to the Lender in
the Transaction Agreements.

                  (xiii)  "Person"  means any living person or any entity,  such
as, but not necessarily limited to, a corporation, partnership or trust.

                  (xiv) "Principal Trading Market" means The NASDAQ OTC Bulletin
Board.

                  (xv)  "Registration  Rights  Agreement" means the Registration
Rights  Agreement  in the form  annexed  hereto as Annex II, as  executed by the
Lender and the Company simultaneously with the execution of this Agreement.

         (xvi)  "Securities"  means the Debenture,  the Warrant,  the Conversion
Shares and the Warrant Shares (as defined below).

         (xvii)  "Security  Agreement"  means  the  security  agreement,   which
provides for a  subordinate  security  interest in the accounts  receivable  and
proceeds  therefrom  of the Company and its  Subsidiaries  in the form  attached
hereto as Annex IV.

                  (xviii) "Shares" means the shares of Common Stock representing
any or all of the  Conversion  Shares  and the  Warrant  Shares  and the  shares
issuable pursuant to Section 2(k).

(xix)  "Transaction  Agreements" means the Securities  Purchase  Agreement,  the
Debenture,   the  Registration  Rights  Agreement,  the  Warrant,  the  Security
Agreement,  UCC-1  Financing  Statements  and includes all  ancillary  documents
referred to in those agreements.

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(xx) "VWAP"  means the daily  volume  weighted  average  price of the  Company's
Common Stock on the Principal Trading Market as reported by Bloomberg  Financial
L.P.  (Based on a trading day from 9:30 a.m.  Eastern Time to 4:00 p.m.  Eastern
Time) using the VWAP function on the date in question.

(xxi) "Warrant" has the meaning set forth in Section 4(e) of this Agreement.

(xxii) "Warrant Exercise Price" shall be $1.25 per share,  subject to adjustment
as set forth in the Warrant.

                  (xxvi)  "Warrant  Shares"  means the  shares  of Common  Stock
issuable upon exercise of the Warrant.

                  c. Form of Payment; Delivery of Certificates.

As a condition  precedent to the release of the  Purchase  Price to the Company,
the Company  shall  deliver the  Transaction  Agreements,  each duly executed on
behalf of the Company and issued in the name of the Lender.

(ii)  Payment  of the  Purchase  Price  shall  be made by  wire  transfer  or by
certified check.

Method of Payment.  Payment of the Purchase Price shall be made by wire transfer
of funds on the Closing Date as directed by the Company.

e.  Redemption  Right.  Until at such time that the Lender does not  directly or
indirectly  own any Debenture and provided that either (A) the VWAP per share of
a share of Common  Stock is less than $0.85 per share on the trading  date prior
to the date  that  would  have  been the  Conversion  Date but for the  Lender's
exercise of its redemption  right, or (B) if there is no effective  registration
statement in effect for the  Registrable  Securities  on or before the 150th day
from the date hereof, then the Lender shall have the following redemption right.
Each Lender shall have the right,  by delivery of written  notice to the Company
(the "Put  Notice"),  to require  the  Company to  purchase  from the Lender the
Debenture,  or portion  thereof  being  converted,  at the Put Price (as defined
below). The Lender shall have the right to have the Company redeem the Debenture
on any date even if the Lender could not convert the Debenture  because the VWAP
per share on the prior  trading  date is less than $0.85 per share.  The Company
shall pay the Put Price and interest  thereon  until  payment at the rate of 12%
per  annum in cash no later  than 45  business  days  after  the date of the Put
Notice.  The "Put Price" shall equal 130% of the sum of the Purchase  Price with
respect to the Debenture or portion  thereof being  redeemed and all accrued and
unpaid interest  thereon  through the date of the Put Notice.  In the event that
the Company  fails to pay the Put Price within such 45 day period,  then the Put
Price  shall  accrue  interest at the rate of 18% per annum from the date of the
Debenture  until paid and the Lender shall have the right to declare an event of
default under any Debenture that remains  outstanding  after delivery of the Put
Notice.

                  2.  LENDER  REPRESENTATIONS,   WARRANTIES,   ETC.;  ACCESS  TO
INFORMATION; INDEPENDENT INVESTIGATION.

                  The Lender  represents  and  warrants  to, and  covenants  and
agrees, with the Company as follows:

                  a. Without  limiting the Lender's right to sell the Securities
pursuant to the Registration  Statement or otherwise in compliance with the 1933
Act, the Lender is  purchasing  the  Debenture and Warrant and will be acquiring
the Shares for its own account for  investment  only and not with a view towards
the public  sale or  distribution  thereof and not with a view to or for sale in
connection with any distribution thereof.

                  b. The Lender resides in the state,  province,  or country set
forth in the beginning of this Agreement.

                  c. If the Lender is not a United  States person (as defined in
Regulation  S under the 1933 Act),  the  Lender  hereby  represents  that it has
satisfied itself as to the full observance of the laws of its jurisdiction  (the
"Lender's  Jurisdiction") in connection with any invitation to subscribe for the
Securities or any use of this  Agreement,  including (i) the legal  requirements
within the Lender's  Jurisdiction  for the purchase of the Securities,  (ii) any
foreign exchange  restrictions of the Lender's  Jurisdiction  applicable to such

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purchase, (iii) any of Lender's Jurisdiction's government or other consents that
may need to be obtained in connection with Lender's  execution of this Agreement
and the other  Transaction  Agreements to which the Lender is a party,  (iv) the
income  tax and other tax  consequences,  if any,  that may be  relevant  to the
purchase, holding,  redemption, sale or transfer of the Securities. The Lender's
subscription and payment for, and the Lender's  continued  beneficial  ownership
of, the Securities  will not violate any applicable  securities or other laws of
the Lender's Jurisdiction.

                  d. The Lender is (i) an "accredited  investor" as that term is
defined in Rule 501 of the  General  Rules and  Regulations  under the 1933 Act,
(ii)  experienced in making  investments of the kind described in this Agreement
and the related  documents,  (iii) able, by reason of the business and financial
experience of its officers (if an entity) and professional advisors (who are not
affiliated  with  or  compensated  in  any  way  by  the  Company  or any of its
Affiliates or selling  agents),  to protect its own interests in connection with
the transactions  described in this Agreement,  and the related  documents,  and
(iv) able to afford the entire loss of its investment in the Securities.

                  e. All  subsequent  offers and sales of the  Securities by the
Lender shall be made pursuant to  registration  of the Shares under the 1933 Act
or pursuant to an exemption from registration.

                  f. The  Lender  understands  that  the  Securities  are  being
offered and sold to it in reliance on specific  exemptions from the registration
requirements  of the 1933 Act and state  securities laws and that the Company is
relying upon the truth and accuracy of, and the Lender's  compliance  with,  the
representations,  warranties, agreements,  acknowledgments and understandings of
the Lender  set forth  herein in order to  determine  the  availability  of such
exemptions and the eligibility of the Lender to acquire the Securities.

                  g. The Lender and its advisors,  if any,  have been  furnished
with all  materials  relating to the  business,  finances and  operations of the
Company and  materials  relating to the offer and sale of the  Debenture and the
offer of the Shares which have been requested by the Lender.  The Lender and its
advisors,  if any,  have been afforded the  opportunity  to ask questions of the
Company  and  have  received  complete  and  satisfactory  answers  to any  such
inquiries. Without limiting the generality of the foregoing, the Lender has also
had the  opportunity  to obtain and to review the Company's (1) Annual Report on
Form 10-KSB for the fiscal year ended December 31, 2002, (2) Quarterly Report on
Form 10 QSB for the fiscal  quarter  ended March 31,  2003and  (3) any  Periodic
Report on Form 8-K filed by the Company since January 1, 2003 and up and through
the Closing Date (collectively, the "Company's SEC Documents").

                  h.  The  Lender   understands   that  its  investment  in  the
Securities involves a high degree of risk.

                  i. The Lender  understands  that no United  States  federal or
state agency or any other  government  or  governmental  agency has passed on or
made any recommendation or endorsement of the Securities.

                  j. This  Agreement  and the other  Transaction  Agreements  to
which the Lender is a party, and the  transactions  contemplated  thereby,  have
been duly and validly authorized, executed and delivered on behalf of the Lender
and are valid and binding  agreements  of the Lender  enforceable  in accordance
with their respective terms,  subject as to enforceability to general principles
of equity and to  bankruptcy,  insolvency,  moratorium  and other  similar  laws
affecting the enforcement of creditors' rights generally.

                  k.  Lender is not aware of any  action by Lender  which  would
give rise to any claim by any Person for brokerage commission,  finder's fees or
similar  payments by the Company or any Company  Control Person relating to this
Agreement or the transactions  contemplated hereby,  except for the payment of a
cash  consulting  fee of 10% percent of the Purchase  Price to FCIM Corp.  and a
Warrant to Vestcom  with terms  identical to the Warrants for a number of shares
equal to 15%  (88,235  shares),  of the shares  issueable  upon  exercise of the
Warrants.  The shares underlying the Warrants issued to the consultants shall be
registered by the Company pursuant to the Registration Rights Agreement.

                  l. The  Lender  has not acted and does not  intend to act as a
group  within the  meaning  of the  Securities  Exchange  Act of 1934 (the "1934
Act").

                  m. The Lender (a) is subscribing for Securities of the Company
for the Lender's own account, own risk and own beneficial  interest,  (b) is not
acting  as an  agent,  representative,  intermediary,  nominee  or in a  similar
capacity for any other person or entity,  nominee  account or beneficial  owner,
whether a natural  person or entity  (each such  natural  person or  entity,  an
"Underlying  Beneficial  Owner") and no Underlying  Beneficial Owner will have a

<PAGE>

BENEFICIAL or economic  interest in the Securities being purchased by the Lender
(whether  directly or  indirectly,  including  without  limitation,  through any
option, swap, forward or any other hedging or derivative transaction), (c) if it
is an entity,  including,  without limitation,  a fund-of-funds,  trust, pension
plan or any other entity that is not a natural person (each,  an "Entity"),  has
carried out thorough due diligence as to and  established the identities of such
Entity's Lenders, directors, officers, trustees,  beneficiaries and grantors (to
the extent  applicable,  each a  "Related  Person"  of such  Entity),  holds the
evidence of such  identities,  will maintain all such evidence for at least five
years from the date of the Lender's complete  redemption from the Company,  will
request such  additional  information  as the Company may require to verify such
identities as may be required by applicable law, and will make such  information
available to the Company upon its request,  and (d) does not have the  intention
or obligation to sell, pledge,  distribute,  assign or transfer all or a portion
of the securities to any Underlying Beneficial Owner or any other person; or

                           (ii)(a) is  subscribing  for  Securities  as a record
owner and will not have a beneficial  ownership interest in the Securities,  (b)
is acting as an agent,  representative,  intermediary,  nominee  or in a similar
capacity for one or more Underlying  Beneficial  Owners (as defined in (A)(i)(a)
above),  and understands and acknowledges that the  representations,  warranties
and agreements  made in the  Transaction  Agreements are made by the Lender with
respect to both the Lender and the Underlying  Beneficial Owner(s),  (c) has all
requisite power and authority from the Underlying Beneficial Owner(s) to execute
and perform the obligations under the Subscription Agreement,(d) has carried out
thorough due diligence as to and  established  the  identities of all Underlying
Beneficial  Owners  (and,  if an  Underlying  Beneficial  Owner is not a natural
person, the identities of such Underlying Beneficial Owner's Related Persons (to
the extend applicable), holds the evidence of such identities, will maintain all
such  evidence  for at least five years from the date of the  Lender's  complete
redemption  from the Company,  and will make such  information  available to the
Company upon its request and (e) does not have the  intention or  obligation  to
sell, pledge, distribute,  assign or transfer all or a portion of the Securities
to any person other than the Underlying  Beneficial  Owners(s).  Notwithstanding
anything  contained  herein to the contrary,  the parties  acknowledge  that the
Lender may be controlled by individual shareholders who may be deemed Underlying
Beneficial of the Securities.

                    (n) The  proposed  investment  in the Company  that is being
made on the Lender's own behalf or, if  applicable,  on behalf of any Underlying
Beneficial  Owners does not  directly or  indirectly  contravene  United  States
federal,  state,  local or international  laws or regulations  applicable to the
Lender, including anti-money laundering laws (a "Prohibited Investment").

                  (o) Federal  regulations and Executive Orders  administered by
the U.S.  Treasury  Department's  Office  of  Foreign  Assets  Control  ("OFAC")
prohibit,  among other things,  the  engagement in  transactions  with,  and the
provision of services to, certain foreign countries,  territories,  entities and
individuals.  The lists of OFAC prohibited countries,  territories,  persons and
entities  can be found on the OFAC  website  at  WWW.TREAS.GOV/OFAC.  The Lender
hereby  represents and warrants that neither the Lender nor, if applicable,  any
Underlying Beneficial Owner or Related Person, is a country,  territory,  person
or entity  named on an OFAC list,  nor is the Lender  nor,  if  applicable,  any
Underlying  Beneficial  Owner or Related Person, a natural person or entity with
whom dealings are prohibited under any OFAC regulations.

                  (p)  Neither the Lender nor,  if  applicable,  any  Underlying
Beneficial Owner or Related Person, is a senior foreign political figure, or any
immediate family member or close associate of a senior foreign  political figure
within the meaning of, and applicable  guidance  issued by the Department of the
Treasury  concerning,  the U.S. Bank Secrecy Act (31 U.S.C. ss.5311 et seq.), as
amended, and any regulations promulgated thereunder.

                  (q) The  Lender  agrees to  indemnify  and hold  harmless  the
Company,  its  affiliates,  their  respective  directors,   officers,  managers,
partners,   shareholders,   employees,  agents  and  representatives  (each,  an
"Indemnitee")  from  and  against  any and  all  losses,  liabilities,  damages,
penalties,  costs,  fees and expenses  (including legal fees and  disbursements)
(collectively,  "Damages")  which may result,  directly or  indirectly,  from te
Lender's misrepresentations or misstatements contained herein or breaches hereof
relating to paragraphs (m) through (p).

                  (r) The Lender  understands  and agrees that,  notwithstanding
anything to the contrary  contained in any document  (including any side letters
or similar agreements), if, following the Lender's investment in the Company, it
is discovered that the investment is or has become a Prohibited Investment, such

<PAGE>

investment  may  immediately  be redeemed by the Company at cost or otherwise be
subject to the  remedies  required  by law,  and the Lender  shall have no claim
against  any  Indemnitee  for any form of  Damages  as a result  of such  forced
redemption or other action.

                  (s) Upon the  written  request  from the  Company,  the Lender
agrees to provide all information to the Company to enable the Company to comply
with all applicable  anti-money  laundering  statutes,  rules,  regulations  and
policies,  including any policies  applicable to a portfolio  investment held or
proposed to be held by the Company.  The Lender  understands and agrees that the
Company  may  release   confidential   information  about  the  Lender  and,  if
applicable,  any  Underlying  Beneficial  Owner(s) or Related  Person(s)  to any
person, if the Company, in its sole discretion,  determines that such disclosure
is  necessary  to  comply  with  applicable  statutes,  rules,  regulations  and
policies.

                  3. COMPANY  REPRESENTATIONS,  ETC. The Company  represents and
warrants to each Lender as of the date hereof and as of the Closing Date that:

                  a. Rights of Others Affecting the  Transactions.  There are no
preemptive  rights of any  shareholder  of the Company,  as such, to acquire the
Debenture, the Warrant or the Shares. No party has a currently exercisable right
of first refusal,  which would be applicable to any, or all of the  transactions
contemplated by the Transaction Agreements.

                  b. Status. The Company and its subsidiaries, Excel Healthcare,
Inc. ("XCEL"),  BioSelect Innovation,  Inc.  ("BioSelect") and Quality Botanical
Ingredients,  Inc. ("QBI") are corporations duly organized, validly existing and
in good standing  under the laws of their states of  incorporation  and have the
requisite corporate power to own their properties and to carry on their business
as now being  conducted.  The Company and its subsidiaries are duly qualified as
foreign   corporations  to  do  business  and  are  in  good  standing  in  each
jurisdiction  where the nature of the business  conducted  or property  owned by
each makes such qualification necessary, other than those jurisdictions in which
the failure to so qualify would not have or result in a Material Adverse Effect.
The Company has registered  its stock and is obligated to file reports  pursuant
to Section 13 or Section  15(d) of the 1934 Act.  The Common Stock is listed and
quoted on the  Principal  Trading  Market.  The Company has  received no notice,
either oral or written,  with respect to the continued eligibility of the Common
Stock for such listing and  quotation on the  Principal  Trading  Market and the
Company has maintained all  requirements  for the  continuation of such listing.
The Company is the sole shareholder of XCEL, BioSelect and QBI.

                  c.  Authorized  Shares.  The  authorized  capital stock of the
Company consists of (i) 50,000,000  shares of Common Stock,  $.001 par value per
share, of which, as of May 21, 2003,  there were 11,164,175  shares  outstanding
and (ii)  5,000,000  shares of Preferred  Stock,  $.001 par value per share,  of
which none are  outstanding.  All issued and outstanding  shares of Common Stock
have  been  duly   authorized   and  validly  issued  and  are  fully  paid  and
non-assessable.  The Company has sufficient  authorized  and unissued  shares of
Common  Stock as may be  necessary  to effect the  issuance of the  Shares.  The
Shares have been duly  authorized  and,  when issued upon  conversion  of, or as
interest on, the Debenture or upon  exercise of the Warrant,  each in accordance
with its  respective  terms,  will be duly and  validly  issued,  fully paid and
non-assessable  and will not subject the Holder thereof to personal liability by
reason of being such Holder.

         d.  Transaction  Agreements  and Stock.  This Agreement and each of the
other Transaction  Agreements,  and the transactions  contemplated thereby, have
been duly and validly  authorized by the Company and the Security  Agreement and
the transactions  contemplated thereby, have been duly and validly authorized by
XCEL,  BioSelect and QBI. This Agreement has been duly executed and delivered by
the Company and this Agreement is, and the Transaction Agreements, when executed
and  delivered by the Company,  XCEL and  BioSelect,  will be, valid and binding
agreements of the Company,  XCEL,  Bio-Select and QBI, enforceable in accordance
with their respective terms,  subject as to enforceability to general principles
of equity and to  bankruptcy,  insolvency,  moratorium,  and other  similar laws
affecting the enforcement of creditors' rights generally.

                  e.  Non-contravention.  The  execution  and  delivery  of this
Agreement and each of the other  Transaction  Agreements  by the Company,  XCEL,
BioSelect  and QBI, do not and will not  conflict  with or result in a breach by
the Company,  XCEL,  BioSelect or QBI of any of the terms or  provisions  of, or
constitute a default under (i) the  certificate of  incorporation  or by-laws of
the Company,  XCEL,  BioSelect  and QBI,  each as currently in effect,  (ii) any
indenture, mortgage, deed of trust, or other material agreement or instrument to
which the Company, XCEL, BioSelect or QBI is a party or by which their or any of
their  properties or assets are bound,  or (iii) to its knowledge,  any existing
applicable law, rule, or regulation or any applicable decree, judgment, or order
of any court,  United States federal or state  regulatory  body,  administrative

<PAGE>

agency, or other governmental body having  jurisdiction over the Company,  XCEL,
BioSelect or QBI or any of their properties or assets,  except if such conflict,
breach or default would not have or result in a Material Adverse Effect.

                  f. Approvals.  To the Company's  knowledge,  no authorization,
approval  or  consent  of  any  court,  governmental  body,  regulatory  agency,
self-regulatory  organization,  or stock  exchange is required to be obtained by
the  Company  for the  issuance  and sale of the  Securities  to the  Lender  as
contemplated  by this  Agreement,  except  such  authorizations,  approvals  and
consents  that have been  obtained or for which the failure to obtain such would
not, individually or in the aggregate, have a Material Adverse Effect.

                  g. Filings. To the Company's knowledge,  none of the Company's
SEC Documents contained,  at the time they were filed, any untrue statement of a
material  fact or  omitted  to state any  material  fact  required  to be stated
therein  or  necessary  to make  the  statements  made  therein  in light of the
circumstances under which they were made, not misleading. Except as set forth in
Schedule  3(g),  the Company  has,  since  September  1, 2001,  timely filed all
requisite forms, reports and exhibits with the SEC.

                  h. Absence of Certain Changes. Since December 31,
2002 there has been no material adverse change in the Company's  business and no
Material  Adverse  Effect,  except as disclosed in the Company's SEC  Documents.
Since December 31, 2002, except as provided in the Company's SEC Documents,  the
Company  has not (i)  incurred  or become  subject to any  material  liabilities
(absolute or contingent) except  liabilities  incurred in the ordinary course of
business  consistent  with past  practices;  (ii)  discharged  or satisfied  any
material  lien or  encumbrance  or paid any  material  obligation  or  liability
(absolute or contingent),  other than current  liabilities  paid in the ordinary
course of business  consistent with past  practices;  (iii) declared or made any
payment or distribution  of cash or other property to shareholders  with respect
to its capital  stock,  or  purchased  or redeemed,  or made any  agreements  to
purchase or redeem,  any shares of its  capital  stock;  (iv) sold,  assigned or
transferred any other tangible assets,  or canceled any debts or claims,  except
in the ordinary course of business consistent with past practices;  (v) suffered
any substantial losses or waived any rights of material value, whether or not in
the ordinary course of business,  or suffered the loss of any material amount of
existing business; (vi) made any changes in employee compensation, except in the
ordinary course of business consistent with past practices, or (vii) experienced
any material  problems with labor or management in connection with the terms and
conditions of their  employment or received any notice of  termination  from any
executive officer.

                  i. Absence of Litigation.  There is no material action,  suit,
proceeding,  inquiry or  investigation  before or by any court,  public board or
body pending against or affecting the Company,  XCEL, BioSelect or QBI before or
by any governmental authority or nongovernmental department,  commission, board,
bureau,  agency or instrumentality  or any other Person,  wherein an unfavorable
decision,  ruling or finding would have a Material Adverse Effect or which would
adversely affect the validity or enforceability  of, or the authority or ability
of the Company,  XCEL,  BioSelect or QBI to perform their obligations under, any
of  the  Transaction  Agreements.   There  are  no  outstanding  or  unsatisfied
judgments,  orders,  decrees,  writs,  injunctions or  stipulations to which the
Company,  XCEL,  BioSelect  or  QBI  is a  party  or by  which  it or any of its
properties is bound, that involve the transaction  contemplated  herein or that,
alone or in the  aggregate,  could  reasonably  be  expected  to have a Material
Adverse Effect.

j. No  Undisclosed  Liabilities  or Events.  The Company has no  liabilities  or
obligations  other than those  disclosed in the  Transaction  Agreements  or the
Company's  SEC  Documents  or  those  incurred  in the  ordinary  course  of the
Company's  business since  September 30, 2002, or which  individually  or in the
aggregate,  does not or would not have a Material  Adverse  Effect.  No event or
circumstances  has  occurred  or  exists  with  respect  to the  Company  or its
properties,   business,  condition  (financial  or  otherwise),  or  results  of
operations,  which,  under  applicable law, rule or regulation,  requires public
disclosure or announcement prior to the date hereof by the Company but which has
not been so publicly  announced or disclosed.  There are no proposals  currently
under  consideration or currently  anticipated to be under  consideration by the
Board of Directors or the executive officers of the Company which proposal would
(x) change the certificate of incorporation or other charter document or by-laws
of the  Company,  each as  currently  in  effect,  with or  without  shareholder
approval, which change would reduce or otherwise adversely affect the rights and
powers  of  the   shareholders   of  the  Common  Stock  or  (y)  materially  or
substantially change the business,  assets or capital of the Company,  including
its interests in subsidiaries.

k. Full  Disclosure.  There is no fact known to the Company  (other than general
economic  conditions  known  to the  public  generally  or as  disclosed  in the
Company's SEC  Documents)  that has not been  disclosed in writing to the Lender

<PAGE>

that (i) would  reasonably be expected to have a Material  Adverse Effect,  (ii)
would  reasonably be expected to materially and adversely  affect the ability of
the Company to perform its obligations  pursuant to the Transaction  Agreements,
or (iii) would  reasonably  be expected to materially  and adversely  affect the
value of the rights granted to the Lender in the Transaction Agreements.

l. Prior Issues.  Except as provided in the Company's SEC Documents,  during the
twelve (12) months  preceding  the date  hereof,  the Company has not issued any
convertible   securities   (which  are  convertible  into  Common  Stock  for  a
consideration below the Floor Price).

m.  No  Default.  To the  Company's  knowledge,  no  Event  of  Default  (or its
equivalent  term), as defined in the respective  agreement to which the Company,
XCEL, BioSelect or QBI is a party, and no event which, with the giving of notice
or the  passage  of time or both,  would  become  an Event  of  Default  (or its
equivalent  term)  (as so  defined  in  such  agreement),  has  occurred  and is
continuing,  which  would  have a  Material  Adverse  Effect  on  the  business,
operations or the condition (financial or otherwise) or results of operations of
the Company and its subsidiaries, taken as a whole.

                  n. No Integrated Offering.  Neither the Company nor any of its
affiliates  nor any  person  acting  on its or their  behalf  has,  directly  or
indirectly,  at any time in the six months  prior to the date  hereof,  made any
offer or sales of any security or solicited any offers to buy any security under
circumstances  that would  eliminate  the  availability  of the  exemption  from
registration  under Rule 506 of  Regulation D in  connection  with the offer and
sale of the Securities as contemplated hereby.

         o. Dilution The Company's  executive officers and directors  understand
and  acknowledge  that the  number of Shares  issuable  upon  conversion  of the
Debenture and the exercise of the Warrant may increase in certain circumstances,
including,  the  circumstance  wherein  the  trading  price of the Common  Stock
declines  prior to the  conversion of the  Debentures.  The Company's  executive
officers  and  directors  have  studied and fully  understand  the nature of the
Securities  being sold hereby and recognize that they have a potential  dilutive
effect.  The board of directors of the Company has concluded,  in its good faith
business  judgment that such  issuance is in the best  interests of the Company.
The Company  specifically  acknowledges  that its obligation to issue the Shares
upon  conversion  of the  Debenture  and upon exercise of the Warrant is binding
upon the Company and  enforceable  regardless  of the dilution such issuance may
have on the ownership interests of other shareholders of the Company.

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

         q. Tax Status. To the Company's knowledge,  the Company and each of its
subsidiaries  has made or filed all  federal,  state and foreign  income and all
other tax returns,  reports and  declarations  required by any  jurisdiction  to
which it is subject  (unless and only to the extent that the Company and each of
its subsidiaries has set aside on its books provisions  reasonably  adequate for
the payment of all unpaid and unreported taxes) and has paid all taxes and other
governmental  assessments  and charges  that are  material  in amount,  shown or
determined to be due on such  returns,  reports and  declarations,  except those
being  contested  in good  faith  and  has set  aside  on its  books  provisions
reasonably  adequate for the payment of all taxes for periods  subsequent to the
periods  to which such  returns,  reports or  declarations  apply.  There are no
unpaid  taxes in any  material  amount  claimed to be  delinquent  by the taxing
authority of any jurisdiction,  and the officers of the Company know of no basis
for any such claim.  The Company has not  executed a waiver with  respect to the
statute of limitations  relating to the assessment or collection of any foreign,
federal,  state or local tax.  None of the  Company's  tax returns is  presently
being audited by any taxing authority.

         r. Title to Property and Assets.  Except as set forth on Schedule 3(r),
the Company and its subsidiaries own their property and assets free and clear of
all mortgages, liens, loans and encumbrances, except such encumbrances and liens
that arise in the ordinary  course of business and do not materially  impair the
Company's ownership or use of such property or assets.  Notwithstanding anything

<PAGE>

contained herein to the contrary, the accounts receivable of XCEL, BioSelect and
QBI are owned free and clear of all mortgages,  liens,  loans and  encumbrances.
With respect to the property and assets it leases,  the Company is in compliance
with such  leases  and, to the best of its  knowledge,  holds a valid  leasehold
interest free of any liens, claims or encumbrances.

         s. Fees.  The Company is not aware of any action by the  Company  which
would give rise to any claim by any Person for  brokerage  commission,  finder's
fees or similar  payments by the Company or any Company  Control Person relating
to this  Agreement  or the  transactions  contemplated  hereby,  except  for the
payment of a cash  consulting fee of 10% of the Purchase Price to FCIM Corp. and
a Warrant to Vestcom with terms  identical to the Warrant for a number of shares
equal to 15%  (88,235  shares),  of the shares  issueable  upon  exercise of the
Warrant.  The shares  underlying the Warrant issued to the consultants  shall be
registered by the Company pursuant to the Registration Rights Agreement.

                  4. CERTAIN COVENANTS AND ACKNOWLEDGMENTS.

                  a. Transfer Restrictions. The Lender acknowledges that (1) the
Securities  have not been and are not being  registered  under the provisions of
the 1933 Act and,  except as provided in the  Registration  Rights  Agreement or
otherwise included in an effective registration  statement,  the Shares have not
been and are not being registered under the 1933 Act, and may not be transferred
unless (A)  subsequently  registered  thereunder  or (B) the  Lender  shall have
delivered to the Company an opinion of counsel, reasonably satisfactory in form,
scope and substance to the Company, to the effect that the Securities to be sold
or  transferred  may be sold or  transferred  pursuant to an exemption from such
registration;  (2) any  sale of the  Securities  made in  reliance  on Rule  144
promulgated  under the 1933 Act may be made only in accordance with the terms of
said  rule and  further,  if said  rule is not  applicable,  any  resale of such
Securities under  circumstances in which the seller,  or the Person through whom
the sale is made,  may be deemed to be an  underwriter,  as that term is used in
the 1933 Act, may require  compliance  with some other  exemption under the 1933
Act or the rules and  regulations  of the SEC  thereunder;  and (3)  neither the
Company nor any other Person is under any  obligation to register the Securities
(other than pursuant to the Registration Rights Agreement) under the 1933 Act or
to comply with the terms and conditions of any exemption thereunder.

                  b. Restrictive Legend. The Lender acknowledges and agrees that
the  Securities  and,  until such time as the Common  Stock has been  registered
under the 1933 Act as contemplated by the Registration Rights Agreement and sold
in  accordance  with  an  effective   Registration  Statement  or  otherwise  in
accordance with another effective registration statement, certificates and other
instruments  representing any of the Securities shall bear a restrictive  legend
in  substantially  the following form (and a  stop-transfer  order may be placed
against transfer of any such Securities):

THESE  SECURITIES HAVE NOT BEEN REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS
AMENDED,  OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR OFFERED FOR
SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES OR
AN OPINION OF COUNSEL OR OTHER  EVIDENCE  ACCEPTABLE  TO THE  COMPANY  THAT SUCH
REGISTRATION IS NOT REQUIRED.

                  c.  Filings.  The  Company  undertakes  and agrees to make all
necessary  filings in connection  with the sale of the  Securities to the Lender
under any United States laws and  regulations  applicable to the Company,  or by
any domestic securities exchange or trading market.

                  d. Reporting Status.  So long as the Lender  beneficially owns
any of the Securities,  the Company shall use commercially reasonably efforts to
file all  reports  required  to be filed with the SEC  pursuant to Section 13 or
15(d) of the 1934 Act and not terminate its status as an issuer required to file
reports  under the 1934 Act even if the 1934 Act or the  rules  and  regulations
thereunder would permit such  termination.  The Company will take all reasonable
action under its control to maintain the  continued  listing and  quotation  and
trading of its Common Stock  (including,  without  limitation,  all  Registrable
Securities)  on the  Principal  Trading  Market and will comply in all  material
respects with the Company's  reporting,  filing and other  obligations under the
by-laws  or  rules of the  National  Association  of  Securities  Dealers,  Inc.
applicable  to it at least so long as the  Lender  beneficially  owns any of the
Securities.

e. Warrants.  The Company  agrees to issue to the Lender a transferable  warrant
(the  "Warrant") for the purchase of an aggregate of 588,235 shares (a number of
shares  equal to one hundred  percent  (100%) of the  Conversion  Shares) at the
Warrant Exercise Price. The Warrant will be exercisable commencing upon the date

<PAGE>

of issuance and shall expire on the last day of the calendar  month in which the
fifth  anniversary  of the date of  issuance  occurs  regardless  of whether the
Debenture  have been  converted  by the Lender or redeemed by the  Company.  The
Warrant  will be issued  on the  Closing  Date and shall be in the form  annexed
hereto as Annex  III,  and shall have  registration  rights as  provided  in the
Registration Rights Agreement.

                  f.  Available  Shares.  The  Company  shall  have at all times
authorized and reserved for issuance,  free from preemptive  rights, a number of
shares (the "Minimum Available Shares") at least equal to the sum of one hundred
percent  (100%) of the (x) number of shares of Common  Stock  issuable as may be
required to satisfy the conversion  right of the Lender,  plus (y) the number of
shares  issuable  upon  exercise  the  Warrant  held by all  Holders.  . For the
purposes of such calculations,  the Company should assume that all the Debenture
was then convertible and the Warrant was then exercisable  without regard to any
restrictions  which might limit the Lender's  right to convert any the Debenture
or exercise the Warrants held by the Lender.

                  g. Favored Nation Clause. (i)If, during the time the Debenture
is  outstanding  and  has not  been  converted  or  redeemed  (the  "Unconverted
Debenture"),  the Company issues (i) debentures or other debt  obligations  with
terms more  favourable  to the holder  than the  Debenture  issued to the Lender
hereunder (whether in terms of a more favorable interest rate, conversion price,
warrant  coverage or otherwise),  the Lender shall have the right to require the
Company to issue the Lender a new Debenture  (including  additional  Warrants in
the event of more favorable warrant coverage) containing such "favored" terms in
a principal  amount equal to the  Unconverted  Debenture,  and (ii)  warrants or
other rights to purchase equity securities in connection with such debt issuance
which  warrants or rights  contain terms more  favorable than the Warrant issued
herewith,  the Lender  shall have the right to require  the Company to issue the
Lender new Warrants  containing  such  "favored"  terms.  The  provisions of the
foregoing  sentence  shall  not apply to the  issuance  by the  Company  of debt
obligations  that are not  convertible  into equity  securities or for which the
holder of the debt obligations does not receive equity securities. Additionally,
if,  during the time the  Unconverted  Debenture  are  outstanding,  the Company
issues  equity  securities  in  conjunction  with  warrants  or other  rights to
purchase equity securities with rights or terms more "favored" than the terms of
the Warrants  issued  hereunder,  the Lender shall have the right to require the
Company to issue the Lender new Warrants  containing such "favored" terms.  (ii)
Upon the  issuance  by the  Company of Common  Stock,  or any right,  warrant or
option to purchase Common Stock or any security convertible into or exchangeable
for Common Stock,  or any obligation or any share of stock  convertible  into or
exchangeable for Common Stock for a "consideration  per share actually received"
less than the Floor Price in effect  immediately prior to the time of such issue
or sale,  other than (i) the issuance of shares of Common Stock upon exercise of
options  and  warrants  granted  prior  to the  date of this  Agreement  or (ii)
issuances  of shares of Common  Stock upon  conversion  of debt  instruments  or
preferred stock issued prior to the date of this Agreement;  then forthwith upon
such issue or sale, the Conversion Price shall be reduced to a price (calculated
to the nearest cent) equal to the  consideration  per share actually received by
the  Company  even if such  price is lower  than the Floor  Price.  The  Warrant
Exercise  Price  shall be  adjusted  to the lower of (a) 115% of the  Conversion
Price under this Section  4(g)(ii) or (b) the exercise price or conversion price
of any  warrants  or other  rights  to  purchase  equity  securities  with  more
"favored" terms in accordance with section 4(g)(i).

                  For purposes of this paragraph,  the following provisions will
be applicable:

                  (A) In the case of an issue  or sale  for  cash of  shares  of
Common Stock,  the  "consideration  per share actually  received" by the Company
shall be deemed to be the amount of cash received,  before  deducting  therefrom
any  commissions  or  expenses  paid by the  Company.  Where such  consideration
consists of securities,  the amount of  consideration  actually  received by the
Company will be the market price thereof as of the date of receipt.  In case any
Common  Stock  are  issued  in  connection  with  any  acquisition,   merger  or
consolidation in which the Company is the surviving  corporation,  the amount of
consideration  therefor  will be deemed to be the fair value of such  portion of
the net  assets of the  non-surviving  corporation  as is  attributable  to such
Common Stock.

         (B) In case of the issuance (otherwise than upon conversion or exchange
of obligations or shares of stock of the Company) of additional shares of Common
Stock for a  consideration  other  than cash or  securities  or a  consideration
partly other than cash or securities, the amount of the consideration other than
cash  received by the  Company  for such  shares  shall be deemed to be the fair
value  of such  consideration  as  determined  in good  faith  by the  Board  of
Directors.

         h. Restrictions on Filing  Registration  Statements.  The Company shall
not register any shares of Common Stock pursuant to the  registration  statement
for the  Registrable  Securities  other  than the  Registrable  Securities.  The
Company  shall not file any  registration  statements  with respect to any other
shares of Common Stock until 90 calendar days after the Effective Date.

<PAGE>

         i. Leakage.  The Lender  covenants and agrees with the Company that, in
the  event of a  conversion  or  redemption  (pursuant  to  Section  1(e) of the
Debenture),  the  Lender  will not  convert or redeem an amount of more than the
greater of (i) an aggregate of $50,000  principal  amount of the  Debenture  per
week or (ii) an aggregate amount equal to 15% of the average daily dollar volume
of shares of Common Stock traded on the Principal Market for the five days prior
to conversion or redemption.

k. No Shorting. The Lender agrees that it will not enter into any
Short Sales (as hereinafter defined) from the period commencing on the execution
of this  Agreement  and  ending  on the  date  on  which  no  Lender  holds  any
outstanding  Debentures.  For  purposes of this  section,  a "Short Sale" by the
Lender shall mean a sale of Common Stock by the Lender that is marked as a short
sale and that is made at a time  when  there is no  equivalent  offsetting  long
position in Common Stock held by the Lender. For purposes of determining whether
there is an  equivalent  offsetting  long  position  in Common  Stock  held by a
Lender,  (i) Conversion  Shares and Warrant Shares that have not yet been issued
on  conversion of the Debenture or exercise of the Warrant but which the Company
is  obligated  to issue as a result  of  receipt  of a notice of  Conversion  or
receipt of documents and payment  required for exercise of the Warrants shall be
deemed to be held long by the Lender  but (ii)  Conversion  Shares  and  Warrant
Shares that have not yet been issued on  conversion of the Debenture or exercise
of the Warrant and which are not subject to receipt of a notice of conversion or
receipt of documents and payment  required for exercise of the Warrant shall not
be deemed to be held long by the Lender.

                  5. TRANSFER AGENT INSTRUCTIONS.

                  a. The Company  warrants that, with respect to the Securities,
other than the stop transfer  instructions to give effect to Section 4(a) hereof
and except to the extent  necessary or  appropriate  to exercise  the  Company's
lawful  remedies  under the  Transaction  Agreements,  it will give its transfer
agent no instructions  inconsistent with instructions to issue Common Stock from
time to time upon  conversion of the Debenture in such amounts as specified from
time to time by the  Company to the  transfer  agent,  bearing  the  restrictive
legend  specified in Section 4(b) of this Agreement prior to the registration of
the shares of Common  Stock  under the 1933 Act,  registered  in the name of the
Lender or its nominee and in such denominations to be specified by the Lender in
connection with each conversion of the Debenture.  The Company  warrants that no
instruction other than such instructions  referred to in this Section 5 and stop
transfer   instructions   to  give  effect  to  Section  4(a)  hereof  prior  to
registration  and  sale of the  Shares  under  the 1933 Act will be given by the
Company to the transfer agent and that the Shares shall otherwise  (except under
federal  and  state  securities  laws) be freely  transferable  on the books and
records of the  Company as and to the extent  provided  in this  Agreement,  the
Registration Rights Agreement, and applicable law. Nothing in this Section shall
affect in any way the  Lender's  obligations  and  agreement  to comply with all
applicable securities laws upon resale of the Securities. If the Lender provides
the Company with an opinion of counsel  reasonably  satisfactory  to the Company
that  registration  of a  resale  by the  Lender  of any  of the  Securities  in
accordance  with clause (1)(B) of Section 4(a) of this Agreement is not required
under the 1933 Act,  the  Company  shall  (except as  provided  in clause (2) of
Section 4(a) of this  Agreement)  permit the transfer of the Securities  and, in
the case of the  Conversion  Shares,  promptly  instruct the Company's  transfer
agent to issue one or more  certificates  for  Common  Stock in such name and in
such denominations as specified by the Lender.

                  b. Subject to the  provisions of this  Agreement,  the Company
will permit the Lender to exercise  its right to convert  the  Debenture  in the
manner contemplated by the Debenture. c. The Company will authorize its transfer
agent to give information  relating to the Company directly to the Lender or the
Lender's   representatives   upon  the   request  of  the  Lender  or  any  such
representative,  to the extent such information  relates to the status of shares
of Common Stock issued or claimed to be issued to the Lender in connection  with
a Notice of Conversion or exercise of a Warrant.

                  d. The Company will permit the Lender to exercise its right to
convert the  Debenture by  telecopying  or  delivering an executed and completed
Notice of  Conversion to the Company and  delivering,  if the  conversion  would
convert  the  entire  remaining  principal  of the  Debenture,  within  five (5)
business days thereafter,  the original Debenture being converted to the Company
by express courier, with a copy to the transfer agent.

                           The   Company   will   transmit   the    certificates
representing  the converted  shares  issuable  upon  conversion of the Debenture
(together,  unless otherwise instructed by the Lender, with Debentures not being
so converted) to the Lender at the address specified in the Notice of Conversion
(which may be the  Lender's  address for notices as  contemplated  by Section 10
hereof or a different  address) via express courier,  by electronic  transfer or
otherwise,  within three (3) business days (the  "Delivery  Date") after (A) the

<PAGE>

business  day on which the Company has  received  the Notice of  Conversion  (by
facsimile or other delivery) and the original  Debenture being converted (and if
the same are not delivered to the Company on the same date, the date of delivery
of the last of such items) or (B) the date an interest payment on the Debenture,
which the  Company  has  elected  to pay by the  issuance  of Common  Stock,  as
contemplated by the Debenture, was due.

                  e. The Company understands that a delay in the issuance of the
shares of Common Stock beyond the Delivery Date could result in economic loss to
the Lender.  As  compensation to the Lender for such loss, the Company agrees to
pay late  payments  to the  Lender  for  late  issuance  of  Common  Stock  upon
Conversion in accordance with the following  schedule (where "No.  Business Days
Late" is defined as the number of  business  days beyond two (2)  business  days
from the Delivery Date):

<TABLE>
<CAPTION>
                                                  Late Payment For Each $10,000
                                                  of Debenture Principal or Interest
      NO. BUSINESS DAYS LATE             AMOUNT BEING CONVERTED

<S>            <C>                                         <C>
               1                                           $100
               2                                           $200
               3                                           $300
               4                                           $400
               5                                           $500
               6                                           $600
               7                                           $700
               8                                           $800
               9                                           $900
               10                                          $1,000
               >10                                         $1,000 +$200 for each Business Day Late beyond 10 days

</TABLE>
The Company shall pay any payments  incurred  under this Section in  immediately
available  funds upon demand.  Nothing  herein shall limit the Lender's right to
pursue actual damages for the Company's  failure to issue and deliver the Common
Stock to the Lender. Furthermore, in addition to any other remedies which may be
available to the Lender,  in the event that the Company  fails for any reason to
effect  delivery of such shares of Common  Stock  within two (2)  business  days
after the  Delivery  Date,  the Lender will be  entitled to revoke the  relevant
Notice  of  Conversion  by  delivering  a notice to such  effect to the  Company
whereupon the Company and the Lender shall each be restored to their  respective
positions immediately prior to delivery of such Notice of Conversion.

                  f. If, by the relevant  Delivery  Date,  the Company fails for
any  reason to deliver  the Common  Stock to be issued  upon  conversion  of the
Debenture  and after  such  Delivery  Date,  the holder of the  Debenture  being
converted (a "Converting  Holder")  purchases,  in an open market transaction or
otherwise,  shares of Common  Stock  (the  "Covering  Shares")  in order to make
delivery in satisfaction of a sale of Common Stock by the Converting Holder (the
"Sold Shares"),  which delivery such Converting Holder anticipated to make using
the Common Stock to be issued upon such  conversion  (a  "Buy-In"),  the Company
shall  pay  to  the  Converting   Holder,  in  addition  to  all  other  amounts
contemplated in other provisions of the Transaction Agreements,  and not in lieu
thereof, the Buy-In Adjustment Amount (as defined below). The "Buy-In Adjustment
Amount"  is the  amount  equal  to the  excess,  if any,  of (x) the  Converting
Holder's total purchase price (including brokerage commissions,  if any) for the
Covering Shares over (y) the net proceeds (after brokerage commissions,  if any)
received by the Converting Holder from the sale of the Sold Shares.  The Company
shall pay the Buy-In  Adjustment  Amount to the Converting Holder in immediately
available  funds  immediately  upon demand by the Converting  Holder.  By way of
illustration  and not in limitation of the foregoing,  if the Converting  Holder
purchases  shares of  Common  Stock  having a total  purchase  price  (including
brokerage  commissions)  of $11,000 to cover a Buy-In with  respect to shares of
Common Stock it sold for net proceeds of $10,000,  the Buy-In  Adjustment Amount
which Company will be required to pay to the Converting Holder will be $1,000.

                  g. In lieu of delivering  physical  certificates  representing
the Common Stock issuable upon conversion, provided the Company's transfer agent
is  participating  in  the  Depository  Trust  Company  ("DTC")  Fast  Automated
Securities Transfer program,  upon request of the Lender and its compliance with
the  provisions  contained  in  this  paragraph,  so  long  as the  certificates
therefore do not bear a legend and the Lender thereof is not obligated to return
such  certificate for the placement of a legend  thereon,  the Company shall use

<PAGE>

its best  efforts to cause its  transfer  agent to  electronically  transmit the
Common Stock issuable upon  conversion to the Lender by crediting the account of
the  Lender's  Prime  Broker  with DTC  through  its  Deposit  Withdrawal  Agent
Commission system.

h. The holder of the  Debenture  shall be entitled to  exercise  its  conversion
privilege with respect to the Debentures notwithstanding the commencement of any
case under 11 U.S.C.  ss.101 ET SEQ. (the "Bankruptcy  Code").  In the event the
Company is a debtor under the Bankruptcy Code, the Company hereby waives, to the
fullest  extent  permitted,  any  rights to  relief it may have  under 11 U.S.C.
ss.362 in respect of such  holder's  conversion  privilege.  The Company  hereby
waives, to the fullest extent permitted,  any rights to relief it may have under
11 U.S.C.  ss.362 in respect of the  conversion of the  Debentures.  The Company
agrees, without cost or expense to such holder, to take or to consent to any and
all action necessary to effectuate relief under 11 U.S.C. ss.362.

                  6. CLOSING DATE.

                  a. The Closing Date shall occur on the date which is the first
business  day after  each of the  conditions  contemplated  by  Sections 7 and 8
hereof  shall have  either been  satisfied  or been waived by the party in whose
favor such conditions run.

                  b. The closing of the purchase  and issuance of the  Debenture
shall occur on the Closing Date at the offices of the Company at 2:00 P.M.,  New
York  time,  on such day or such other time as is  mutually  agreed  upon by the
Company and the Lender.

                  7. CONDITIONS TO THE COMPANY'S OBLIGATION TO SELL.
                  The Lender  understands that the Company's  obligation to sell
the  Debenture to the Lender  pursuant to this  Agreement on the Closing Date is
conditioned upon:

                  a. The execution and delivery of the Transaction Agreements by
the Lender;

b. Delivery by the Lender to McLaughlin & Stern, LLP of good funds as payment in
full of an amount equal to the Purchase  Price for the  Securities in accordance
with this Agreement.

c. The accuracy on each Closing Date of the  representations  and  warranties of
the Lender  contained in this  Agreement,  each as if made on such date, and the
performance by the Lender on or before such date of all covenants and agreements
of the Lender required to be performed on or before such date;

                  d. There  shall not be in effect any law,  rule or  regulation
prohibiting or restricting the transactions  contemplated  hereby,  or requiring
any consent or approval, which shall not have been obtained.

8. CONDITIONS TO THE LENDER'S OBLIGATION TO PURCHASE.

                  The  Company  understands  that  the  Lender's  obligation  to
purchase the Debenture on the Closing Date is conditioned upon:

                  a. The execution and delivery of this  Agreement and the other
Transaction  Agreements by the Company, XCEL, BioSelect and QBI, as the case may
be;

                  b. The accuracy in all material  respects on each Closing Date
of  the  representations  and  warranties  of  the  Company  contained  in  this
Agreement,  each as if made on such date,  and the  performance  by the Company,
XCEL,  Bio-Select and QBI on or before such date of all covenants and agreements
of the Company required to be performed on or before such date;

                  c. On each Closing Date, the Registration Rights Agreement and
the Security Agreement shall be in full force and effect and the Company,  XCEL,
Bio-Select and QBI shall not be in default thereunder;

                  d. There  shall not be in effect any law,  rule or  regulation
prohibiting or restricting the transactions  contemplated  hereby,  or requiring
any consent or approval, which shall not have been obtained;

                  e.  From and  after  the date  hereof  to and  including  each
Closing Date, each of the preceding  conditions will have remained in effect and
the trading of the Common  Stock shall not have been  suspended by the SEC or on
the Principal Trading Market.

                  9. INDEMNIFICATION.

                  a. (i) The Company  agrees to indemnify  and hold harmless the
Lender  and its  officers,  directors,  employees,  and  agents,  and the Lender
Control  Person from and against any losses,  claims,  damages,  liabilities  or
expenses incurred (collectively, "Damages"), joint or several, and any action in
respect  thereof  to which  the  Lender,  its  partners,  Affiliates,  officers,
directors,  employees,  or duly authorized  agents, or the Lender Control Person
becomes  subject  to,  resulting  from,  arising  out  of  or  relating  to  any
misrepresentation, breach of warranty or nonfulfillment of or failure to perform

<PAGE>

any covenant or agreement  on the part of Company  contained in this  Agreement,
except to the extent such Damages  result from the  Lender's  failure to perform
any  covenant or agreement  contained  in this  Agreement or the Lender's or its
officers, directors, employees, agents or the Lender Control Persons negligence,
recklessness or bad faith in performing its obligations under this Agreement.

         (ii) The Lender  agrees to indemnify  and hold harmless the Company and
its officers, directors,  employees, and agents, and each Company Control Person
from and against any losses, claims,  damages,  liabilities or expenses incurred
(collectively,  "Damages"),  joint or several, and any action in respect thereof
to which the Company, its partners, Affiliates,  officers, directors, employees,
or duly  authorized  agents,  or any such Company Control Person becomes subject
to, resulting from, arising out of or relating to any misrepresentation,  breach
of warranty or nonfulfillment of or failure to perform any covenant or agreement
on the part of the Lender contained in this Agreement, except to the extent such
Damages result  primarily from the Company's  failure to perform any covenant or
agreement  contained  in  this  Agreement  or the  Company's  or  its  officers,
directors, employees, agents or Company Control Persons negligence, recklessness
or bad faith in performing its obligations under this Agreement.

                  b. All claims for indemnification by any Indemnified Party (as
defined below) under this Section 9 shall be asserted and resolved as follows:

                  (i) In the event any claim or demand in  respect  of which any
Person  claiming  indemnification  under  any  provision  of this  Section 9 (an
"Indemnified Party") might seek indemnity under Section 9(a) is asserted against
or sought to be collected from such  Indemnified  Party by a Person other than a
party hereto or an Affiliate  thereof (a "Third Party Claim"),  the  Indemnified
Party  shall  deliver a written  notification,  enclosing  a copy of all  papers
served,  if any,  and  specifying  the nature of and basis for such Third  Party
Claim and for the Indemnified  Party's claim for  indemnification  that is being
asserted  under  any  provision  of this  Section  9  against  any  Person  (the
"Indemnifying  Party"),  together  with the  amount  or, if not then  reasonably
ascertainable,  the estimated  amount,  determined in good faith,  of such Third
Party Claim (a "Claim  Notice") with reasonable  promptness to the  Indemnifying
Party.  If the  Indemnified  Party  fails  to  provide  the  Claim  Notice  with
reasonable  promptness after the Indemnified Party receives notice of such Third
Party Claim,  the  Indemnifying  Party shall not be  obligated to indemnify  the
Indemnified  Party with respect to such Third Party Claim to the extent that the
Indemnifying  Party's  ability to defend has been  prejudiced by such failure of
the Indemnified Party. The Indemnifying Party shall notify the Indemnified Party
as soon as  practicable  within the period  ending  thirty  (30)  calendar  days
following  receipt  by the  Indemnifying  Party of  either a Claim  Notice or an
Indemnity  Notice  (as  defined  below)  (the  "Dispute   Period")  whether  the
Indemnifying  Party disputes its liability or the amount of its liability to the
Indemnified  Party  under this  Section 9 and  whether  the  Indemnifying  Party
desires,  at its sole cost and expense,  to defend the Indemnified Party against
such Third Party Claim. The following provisions shall also apply:

(x) If the Indemnifying  Party notifies the Indemnified Party within the Dispute
Period that the Indemnifying  Party desires to defend the Indemnified Party with
respect  to the Third  Party  Claim  pursuant  to this  Section  9(b),  then the
Indemnifying  Party  shall have the right to  defend,  with  counsel  reasonably
satisfactory  to the  Indemnified  Party,  at the sole cost and  expense  of the
Indemnifying Party, such Third Party Claim by all appropriate proceedings, which
proceedings  shall be vigorously and diligently  prosecuted by the  Indemnifying
Party  to a final  conclusion  or  will  be  settled  at the  discretion  of the
Indemnifying  Party (but only with the consent of the  Indemnified  Party in the
case of any  settlement  that  provides for any relief other than the payment of
monetary  damages or that  provides  for the payment of  monetary  damages as to
which the Indemnified Party shall not be indemnified in full pursuant to Section
9(a)).  The  Indemnifying  Party  shall have full  control of such  defense  and
proceedings,  including any compromise or settlement thereof; provided, however,
that the Indemnified  Party may, at the sole cost and expense of the Indemnified
Party,  at any time prior to the  Indemnifying  Party's  delivery  of the notice
referred to in the first  sentence of this  subparagraph  (x),  file any motion,
answer or other  pleadings or take any other action that the  Indemnified  Party
reasonably  believes to be necessary or appropriate  protect its interests;  and
provided further,  that if requested by the Indemnifying  Party, the Indemnified
Party will,  at the sole cost and  expense of the  Indemnifying  Party,  provide
reasonable  cooperation to the Indemnifying  Party in contesting any Third Party
Claim that the Indemnifying  Party elects to contest.  The Indemnified Party may
participate  in, but not control,  any defense or  settlement of any Third Party
Claim controlled by the Indemnifying  Party pursuant to this  subparagraph  (x),
and except as provided in the preceding  sentence,  the Indemnified  Party shall
bear  its  own  costs  and  expenses   with   respect  to  such   participation.
Notwithstanding  the foregoing,  the Indemnified Party may take over the control
of  the  defense  or  settlement  of a  Third  Party  Claim  at any  time  if it
irrevocably  waives its right to  indemnity  under  Section 9(a) with respect to
such Third Party Claim.

(y) If the Indemnifying  Party fails to notify the Indemnified  Party within the
Dispute  Period that the  Indemnifying  Party  desires to defend the Third Party
Claim pursuant to Section 9(b), or if the  Indemnifying  Party gives such notice
but fails to  prosecute  vigorously  and  diligently  or settle the Third  Party
Claim, or if the Indemnifying  Party fails to give any notice  whatsoever within
the Dispute Period,  then the Indemnified  Party shall have the right to defend,
at the sole cost and expense of the Indemnifying Party, the Third Party Claim by
all  appropriate  proceedings,  which  proceedings  shall be  prosecuted  by the

<PAGE>

Indemnified Party in a reasonable manner and in good faith or will be settled at
the discretion of the  Indemnified  Party (with the consent of the  Indemnifying
Party, which consent will not be unreasonably  withheld).  The Indemnified Party
will have full control of such defense and proceedings, including any compromise
or settlement thereof;  provided,  however, that if requested by the Indemnified
Party,  the  Indemnifying  Party  will,  at the  sole  cost and  expense  of the
Indemnifying Party, provide reasonable  cooperation to the Indemnified Party and
its counsel in contesting any Third Party Claim which the  Indemnified  Party is
contesting.  Notwithstanding the foregoing  provisions of this subparagraph (y),
if the Indemnifying  Party has notified the Indemnified Party within the Dispute
Period that the  Indemnifying  Party disputes its liability or the amount of its
liability  hereunder to the  Indemnified  Party with respect to such Third Party
Claim and if such dispute is resolved in favor of the Indemnifying  Party in the
manner provided in  subparagraph(z)  below, the  Indemnifying  Party will not be
required  to bear the costs and  expenses  of the  Indemnified  Party's  defense
pursuant to this subparagraph (y) or of the Indemnifying  Party's  participation
therein at the Indemnified  Party's  request,  and the  Indemnified  Party shall
reimburse the  Indemnifying  Party in full for all reasonable costs and expenses
incurred by the  Indemnifying  Party in  connection  with such  litigation.  The
Indemnifying  Party  may  participate  in,  but  not  control,  any  defense  or
settlement  controlled by the  Indemnified  Party pursuant to this  subparagraph
(y),  and the  Indemnifying  Party  shall bear its own costs and  expenses  with
respect to such participation.

(z) If the  Indemnifying  Party notifies the Indemnified  Party that it does not
dispute its  liability or the amount of its liability to the  Indemnified  Party
with respect to the Third Party Claim under  Section 9(a) or fails to notify the
Indemnified  Party  within the Dispute  Period  whether the  Indemnifying  Party
disputes its liability or the amount of its liability to the  Indemnified  Party
with respect to such Third Party Claim,  the amount of Damages  specified in the
Claim Notice shall be conclusively  deemed a liability of the Indemnifying Party
under  Section  9(a) and the  Indemnifying  Party  shall pay the  amount of such
Damages to the Indemnified Party on demand. If the Indemnifying Party has timely
disputed  its  liability  or the amount of its  liability  with  respect to such
claim,  the Indemnifying  Party and the Indemnified  Party shall proceed in good
faith to negotiate a resolution of such dispute; provided,  however, that it the
dispute is not  resolved  within  thirty (30) days after the Claim  Notice,  the
Indemnifying  Party shall be entitled to institute such legal action as it deems
appropriate.

                  c.  The  indemnity  agreements  contained  herein  shall be in
addition to (i) any cause of action or similar rights of the  indemnified  party
against  the  indemnifying  party  or  others,  and  (ii)  any  liabilities  the
indemnifying  party may be subject  to.  The  indemnification  required  by this
Section 9 shall be made by periodic  payments of the amount  thereof  during the
course  of the  investigation  or  defense,  as such  expense,  loss,  damage or
liability is incurred and is due and payable

                  10. GOVERNING LAW: MISCELLANEOUS.

                  a. This  Agreement  shall be  governed by and  interpreted  in
accordance  with the laws of the State of Colorado  for  contracts  to be wholly
performed  in such state and without  giving  effect to the  principles  thereof
regarding  the conflict of laws.  Each of the parties  consents to the exclusive
jurisdiction  of the federal  courts whose  districts  encompass any part of the
City of New York,  New York or the state courts of the State of New York sitting
in the City of New  York in  connection  with any  dispute  arising  under  this
Agreement  and hereby  waives,  to the  maximum  extent  permitted  by law,  any
objection,  including  any  objection  based on  forum  non  conveniens,  to the
bringing of any such proceeding in such jurisdictions.  To the extent determined
by such court,  the Company shall reimburse the Lender for any reasonable  legal
fees and disbursements incurred by the Lender in enforcement of or protection of
any of its rights under this Agreement

b. At the Closing Date, the Company shall reimburse the Lender for the
legal  fees  and  expenses  incurred  in  connection  with the  preparation  and
negotiation  of the  Transaction  Agreements  by paying to up to an aggregate of
$10,000 for the preparation and negotiation of the Transaction Agreements. Other
than the amounts contemplated in the immediately preceding sentence,  each party
shall pay the fees and expenses of its advisers, counsel, accountants, and other
experts,  if any, and all other expenses  incurred by such party incident to the
negotiation, preparation, execution, delivery and performance of this Agreement.

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

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

                  e.  All  pronouns  and any  variations  thereof  refer  to the
masculine, feminine or neuter, singular or plural, as the context may require.

                  f. A facsimile  transmission of this signed Agreement shall be
legal and binding on all parties hereto.

<PAGE>

                  g. This  Agreement may be signed in one or more  counterparts,
each of which shall be deemed an original.

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

                  i. If any  provision  of this  Agreement  shall be  invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not
affect the validity or  enforceability of the remainder of this Agreement or the
validity or enforceability of this Agreement in any other jurisdiction.

                   j. This  Agreement  may be amended only by an  instrument  in
writing signed by the party to be charged with enforcement thereof.

                  k.  This  Agreement   supersedes  all  prior   agreements  and
understandings  among the  parties  hereto with  respect to the  subject  matter
hereof.

                  11. NOTICES.  Any notice required or permitted hereunder shall
be given in writing  (unless  otherwise  specified  herein)  and shall be deemed
effectively given on the earliest of

                  (a) the date delivered,  if delivered by personal  delivery as
against written receipt therefor or by confirmed facsimile transmission,

                  (b) the third business day after deposit,  postage prepaid, in
the United States Postal Service by registered or certified mail, or

                  (c)  the  date   delivered   after   mailing  by  domestic  or
international  express  courier,  with delivery costs and fees prepaid,  in each
case, addressed to each of the other parties thereunto entitled at the following
addresses (or at such other addresses as such party may designate to each of the
other parties hereto):

COMPANY:          Health Sciences Group, Inc.
                           at its address at the head of this Agreement
                           Attn:   Fred Tannous, CEO
                           Telephone No.: (310) 242-6700
                           Telecopier No.:

                           with a copy to:
Kirkpatrick & Kockhart, LLP
10100 Santa Monica Blvd., 7th Floor
Los Angeles, CA 90067
Attn:  Leib Orlanski, Esq.
Telephone: (310) 552-5000
Telecopier: (310) 552-5001
                           Pollet & Richardson, a Law corporation

Lender:           At the address set forth in the beginning of this Agreement.
                           with a copy to:
                           McLaughlin & Stern LLP
260 Madison Avenue
New York, NY 10016
Attn: Steven W. Schuster, Esq.
Telephone No: (212) 448-1100
Telecopier No:  (212) 448-0066

                  12. SURVIVAL OF  REPRESENTATIONS  AND WARRANTIES.  Anything in
this   Agreement   or  the  other   Transaction   Agreements   to  the  contrary
notwithstanding,  the Company's and the Lender's  representations and warranties
herein shall survive the  execution and delivery of this  Agreement for a period
of one year  from the date  hereof,  except  the  Lenders'  representations  and
warranties in Section 2(m), which shall survive until the applicable  statute of
limitations,  and shall  inure to the  benefit of the Lender and the Company and
their respective successors and assigns.

[BALANCE OF PAGE INTENTIONALLY LEFT BLANK.]

<PAGE>

         IN WITNESS WHEREOF, this Agreement has been duly executed by the Lender
as of May 21, 2003. CASTLERIGGMASTER INVESTMENTS,LTD.

Signature:  ____________________       Purchase Price: $_______________

Printed Name: __________________       Office:________________________

Title: _________________________               ________________________

                                       Telephone No._____________________

                                       Telecopier No.______________________

HEALTH SCIENCES GROUP, INC.

By: _____________________________                    Date: May 21, 2003
Name: ___________________________
Title: ____________________________

<PAGE>

ANNEX I      FORM OF DEBENTURE
ANNEX II     FORM OF REGISTRATION RIGHTS AGREEMENT
ANNEX III    FORM OF WARRANT
ANNEX IV     FORM OF SECURITY AGREEMENT

SCHEDULE 3(g)
SCHEDULE 3(r)

<PAGE>

SCHEDULE 3(g)

REPORTING OBLIGATIONS NOT TIMELY MET:

1. On September  25, 2001 the Company  filed a Form 8-K  reporting the change of
the Company's name that was approved by the shareholders on September 4, 2001.

2. On December 31, 2001 the Company filed a Form 8-K  reporting the  acquisition
of XCEL Healthcare, Inc. that was completed on December 14, 2001.

3. On March 5, 2001 the  Company  filed a Form 8-K/A  disclosing  the  financial
information related to the Company's acquisition of XCEL Healthcare, Inc.

4. On April 16, 2002 the Company filed its Form 10-KSB. This filing was required
to be made on April 15, 2002.

5. On May 13, 2002 the Company filed a Form 8-K  reporting  the  rescission of a
Stock Purchase  Agreement entered into with International  Pharmaceutical  Group
LLC which occurred on April 26, 2002.

6. On August 20, 2002 the Company filed a Form 10-QSB.  This filing was required
to be made on August 19, 2002.

<PAGE>

SCHEDULE 3(r)
Prior Liens

1.  A lien  granted  by  Health  Sciences  Group,  Inc.  in  favor  of  Whitmire
Distribution  Corporation  in all its  fixtures,  goods,  machinery,  equipment,
vehicles,  inventory,  leasehold  improvements,  accounts,  accounts receivable,
deposit accounts,  including without  limitation those maintained with a bank or
other financial  institution,  and all money, letter of credit rights and letter
of credit proceeds and assignments thereof,  chattel paper, including electronic
chattel paper, documents,  notes receivable,  instruments,  investment property,
contract  rights,  general  intangibles,   including,  without  limitation,  all
intellectual property,  trade names, trade marks, trade secrets,  service marks,
patents,  patent  applications,  copyrights,  literary rights,  royalties,  data
bases,  software and software  systems,  licenses,  franchises,  customer lists,
goodwill and tax refunds, books and records,  prescription files, patient lists,
computer  programs  and records  and all other  personal  property,  tangible or
intangible  (including,   without  limitation,   all  signs,  appliances,   cash
registers,   computers,   computer  software,   shelving,   check-out  counters,
compressors,  freezers,  coolers,  display cases,  customer  records,  sundries,
tobacco products,  prescription and  over-the-counter  pharmaceutical  products,
health and beauty aids,  home  healthcare  products and general  merchandise and
supplies);  all accessions and additions to,  substitutions for and replacements
of any of the foregoing;  all proceeds or products of any of the foregoing;  and
all rights to payments under any insurance or warranty,  guaranty,  or indemnity
payable  with respect to any of the  foregoing.  Said lien is evidenced by a UCC
Financing  Statement  filed with the Secretary of State of Colorado on April 11,
2002 as number 2002F037925.

2. A lien  granted  by XCEL  Healthcare,  Inc.  in  favor  of  Barnes  Wholesale
(description  unreadable).  Said lien is evidenced by a UCC Financing  Statement
filed with the  Secretary of State of  California on November 26, 2001 as number
0133260568.

3. A lien  granted by XCEL  Healthcare,  Inc. in favor of Cardinal  Distribution
(description  unreadable).  Said lien is evidenced by a UCC Financing  Statement
filed  with the  Secretary  of  State of  California  on May 2,  2002 as  number
0212360059.

4. A lien granted by Health Sciences Group,  Inc.,  XCEL  Healthcare,  Inc., and
BioSelect  Innovations,  Inc. in favor of Stranco  Investments,  Ltd. and Brivis
Investments Ltd. Said liens are evidenced by UCC Financing Statements filed with
the Secretary of State of  California on February 25, 2003 as number  0305761194
and the Secretary of State of Nevada on March 7, 2003 as number 2003006673-9.Exhibit 10.16

                          REGISTRATION RIGHTS AGREEMENT

                  THIS  REGISTRATION  RIGHTS  AGREEMENT,  dated  as of  May  21,
2003(this  "Agreement"),  is made by and between HEALTH SCIENCES GROUP,  INC., a
Colorado corporation, with headquarters located at 6080 Center Drive, 6th Floor,
Los  Angeles,   California   90045  (the  "Company"),   and  CASTLERIGG   MASTER
INVESTMENTS,  LTD., a corporation organized under the laws of the British Virgin
Islands,  with  headquarters at 1251 Avenue of the Americas,  New York, New York
10020 (the "Investor").

                              W I T N E S S E T H:

                  WHEREAS,  upon the terms and subject to the  conditions of the
Securities Purchase  Agreement,  dated as of the date of acceptance as set forth
on the Securities Purchase Agreement,  between the Investor and the Company (the
"Securities Purchase Agreement")  capitalized terms not otherwise defined herein
shall have the meanings ascribed to them in the Securities Purchase  Agreement),
the Company has agreed to issue and sell to the Investor a Debenture; and

                  WHEREAS,  the Debenture is  convertible  into shares of Common
Stock (the  "Conversion  Shares");  which term, for purposes of this  Agreement,
shall include shares of Common Stock of the Company  issuable in lieu of accrued
interest through the Maturity Date of the Debenture,  as that term is defined in
and as  contemplated  by the  Debenture)  upon  the  terms  and  subject  to the
conditions contained in the Debenture; and

                  WHEREAS,  the  Company  has agreed to issue the Warrant to the
Investor in connection  with the issuance of the Debenture,  and the Warrant may
be exercised for the purchase of shares of Common Stock (the  "Warrant  Shares")
upon the terms and conditions of the Warrant; and

                  WHEREAS,  to induce the  Investor  to execute  and deliver the
Securities  Purchase  Agreement,  the  Company  has  agreed to  provide  certain
registration rights under the Securities Act of 1933, as amended,  and the rules
and regulations thereunder, or any similar successor statute (collectively,  the
"Securities Act"), with respect to the Registrable Securities;

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

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

                  (a)  "Closing  Date"  means  the  date of the  closing  of the
purchase  and  sale of the  Debentures  and  Warrants  upon the  release  of the
Purchase Price from escrow, as provided in the Securities Purchase Agreement.

                  (b)  "Effective  Date"  means  the  date  the SEC  declares  a
Registration Statement covering Registrable Securities and otherwise meeting the
conditions contemplated hereby to be effective.

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

                  (d) "Registrable  Securities"  means the Conversion Shares and
the Warrant Shares.

                  (e) "Registration Statement" means a registration statement of
the Company under the  Securities  Act covering  Registrable  Securities on Form
SB-2,  if the  Company is then  eligible  to file  using  such form,  and if not
eligible, on such other appropriate form.

<PAGE>

                  2. Registration.

                  (a) Mandatory Registration. The Company shall prepare and file
with the SEC,  as soon as  possible  after the  Closing  Date but no later  than
thirty (30) days after the  effective  date of the  registration  of  securities
pursuant to that certain  Registration  Rights Agreement between the Company and
Brivis Investments,  Ltd. And Stranco Investments,  Ltd. dated February 24, 2003
(the "Required Filing Date"), a Registration Statement registering for resale by
the Investor a sufficient  number of shares of Common Stock for the Investors to
sell the Registrable Securities,  but in no event less than the number of shares
equal to the number of shares into which the Debentures and all interest thereon
through the  Maturity  Date would be  convertible  at the time of filing of such
Registration  Statement  and (y) the number of  Warrant  Shares  which  would be
issuable on exercise of the Warrant. The Registration Statement shall also cover
the shares of Common Stock  issuable upon exercise of the Warrants  being issued
toVestcom LTD. The  Registration  Statement shall state that, in accordance with
Rule 416 and 457 under the  Securities  Act, it also  covers such  indeterminate
number  of  additional  shares  of  Common  Stock as may  become  issuable  upon
conversion  of the  Debentures  and the  exercise  of the  Warrants  to  prevent
dilution  resulting from stock splits or stock  dividends.  The Company will use
its reasonable best efforts to cause such Registration  Statement to be declared
effective. In the event that the Registration Statement is is not effective (the
"Required  Effective  Date") upon the earlier of (Y) five (5) days after oral or
written  notice by the SEC that it may be declared  effective or (Z) ninety (90)
days after the Required Filing Date (unless such failure to become  effective is
a result of the  actions of the  Lender),  the  Company  will be deemed to be in
breach of this Agreement.

                  (b) Payments by the Company.

                  (i) If the  Registration  Statement  covering the  Registrable
Securities is not filed in proper form with the SEC by the Required Filing Date,
the Company  will make  payment to the Initial  Investor in such  amounts and at
such times as shall be determined pursuant to this Section 2(b).

                  (ii) If the  Registration  Statement  covering the Registrable
Securities is not effective by the relevant  Required  Effective  Date or if the
Investor is restricted from making sales of Registrable  Securities covered by a
previously  effective  Registration  Statement  at  any  time  by  virtue  of  a
suspension or stop order with respect to such  Registration  Statement (the date
such restriction  commences,  a "Restricted  Sale Date"),  then the Company will
make  payments  to the  Investor  in such  amounts and at such times as shall be
determined  pursuant to this Section 2(b);  notwithstanding  the following,  the
Company may suspend the Investor from making sales of Registrable Securities for
up to three such suspension periods during any consecutive 12 month period, each
of which  suspension  period  shall not  either  (i) be for more than  three (3)
business  days or (ii) begin less than ten (10) business days after the last day
of the preceding suspension.

                  (iii) The amount  (the  "Periodic  Amount")  to be paid by the
Company to the Investor  shall be  determined  as of each  Computation  Date (as
defined  below) and such  Periodic  Amount shall be equal to 2% of the principal
amount of Debenture  outstanding  for the period from the date following each of
the relevant  Required  Filing Date or the Required  Effective Date, as the case
may  be,  to the  first  relevant  Computation  Date,  and  thereafter  to  each
subsequent  Computation  Date  (prorated on a daily basis if such period is less
than thirty (30) days). The parties  acknowledge that the failure to comply on a
timely basis with the  provisions  related to both the Required  Filing Date and
the  Required  Effective  Date would  result in a payment of four percent of the
then outstanding  principal  amount of the Debenture.  Anything in the preceding
provisions of this paragraph  (iii) to the contrary  notwithstanding,  after the
Effective Date the Purchase Price shall be deemed to refer to the sum of (X) the
principal  amount of all Debentures  previously  purchased but not yet converted
and (Y) the Held Shares Value (as defined below). The "Held Shares Value" means,
for shares  acquired by the Investor  upon a  conversion  within the thirty (30)
days  preceding the  Restricted  Sale Date, but not yet sold by the Investor the
principal  amount of the Debentures  converted into such shares of Common Stock;
provided, however, that if the Investor effected more than one conversion during
such  thirty  (30) day  period and sold less than all of such  shares,  the sold
shares shall be deemed to be derived first from the  conversions in the sequence
of such conversions  (that is, for example,  until the number of shares from the
first of such  conversions have been sold, all shares shall be deemed to be from
the first  conversion;  thereafter,  from the second  conversion  until all such
shares are sold).

<PAGE>

                  (iv) Each Periodic Amount will be payable by the Company,  and
at the option of the Investor, in cash or freely tradable shares of Common Stock
(1) on the day after the Required Filing Date or the Required Effective Date, as
the case may be, and (2) each thirtieth day thereafter.

                  (v) The  parties  acknowledge  that the  damages  which may be
incurred  by the  Investor  if the  Registration  Statement  is not filed by the
Required  Filing  Date  or the  Registration  Statement  has not  been  declared
effective  by a  Required  Effective  Date,  including  if  the  right  to  sell
Registrable  Securities under a previously effective  Registration  Statement is
suspended or the shares of the  Company's  stock are not listed on the Principal
Trading  Market,  may be  difficult  to  ascertain.  The parties  agree that the
Periodic Amounts represent a reasonable  estimate on the part of the parties, as
of the date of this Agreement, of the amount of such damages.

                  (vi) Notwithstanding the foregoing, the amounts payable by the
Company  pursuant to this provision shall not be payable to the extent any delay
in  the  effectiveness  of  the  Registration  Statement  or  such  Registration
Statement is  suspended or subject to a stop order occurs  because of an act of,
or a failure to act or to act timely by the Investor or its counsel.

                  (vii)  "Computation  Date"  means  (A) the  date  which is the
earlier  of (1) thirty  (30) days after the  Required  Filing  Date or  Required
Effective  Date,  as the case may be, or (2) the date after the Required  Filing
Date on which the Registration  Statement is filed (with respect to payments due
as  contemplated  by Section  2(b)(i)  hereof)  or the date  after the  Required
Effective Date on which the Registration  Statement is declared  effective (with
respect to payments due as contemplated by Section 2(b)(ii) hereof), as the case
may be, and (B) each date which is the earlier of (1) thirty (30) days after the
previous Computation Date or (2) the date after the previous Computation Date on
which the  Registration  Statement  is filed (with  respect to  payments  due as
contemplated by Section  2(b)(i) hereof) or is declared  effective (with respect
to payments due as contemplated by Section 2(b)(ii) hereof), as the case may be.

                  3.  Obligations  of  the  Company.   In  connection  with  the
registration  of the  Registrable  Securities,  the Company shall do each of the
following:

                  (a) Prepare  promptly,  and file with the SEC by the  Required
Filing Date a Registration Statement with respect to not less than the number of
Registrable  Securities  provided in Section 2(a) above,  and thereafter use its
reasonable  best  efforts  to cause  such  Registration  Statement  relating  to
Registrable  Securities to become  effective by the Required  Effective Date and
keep the  Registration  Statement  effective at all times during the period (the
"Registration  Period")  continuing  until the  earlier of (i) the date when the
Investors may sell all Registrable  Securities  under Rule 144 without volume or
other restrictions or limits or (ii) the date the Investors no longer own any of
the  Registrable   Securities,   which  Registration  Statement  (including  any
amendments or supplements thereto and prospectuses  contained therein) shall not
contain any untrue statement of a material fact or omit to state a material fact
required to be stated  therein or necessary to make the statements  therein,  in
light of the circumstances in which they were made, not misleading;

                  (b) Prepare and file with the SEC such  amendments  (including
post-effective amendments) and supplements to the Registration Statement and the
prospectus  used  in  connection  with  the  Registration  Statement  as  may be
necessary to keep the Registration  Statement  effective at all times during the
Registration  Period,  and,  during the  Registration  Period,  comply  with the
provisions  of  the  Securities  Act  with  respect  to the  disposition  of all
Registrable  Securities  of the Company  covered by the  Registration  Statement
until such time as all of such  Registrable  Securities have been disposed of in
accordance  with the intended  methods of  disposition  by the seller or sellers
thereof as set forth in the Registration Statement;

                  (c) Permit a single firm of counsel designated by the Investor
to review the Registration  Statement and all amendments and supplements thereto
a reasonable period of time (but not less than three (3) business days) prior to
their  filing  with the SEC,  and not file any  document in a form to which such
counsel reasonably objects.

                  (d) Notify the Investor and the Investor's  counsel (initially
Steven W. Schuster, Esq.) and any managing underwriters immediately (and, in the
case of (i)(A)  below,  not less  than  three (3)  business  days  prior to such

<PAGE>

filing) and (if requested by any such person)  confirm such notice in writing no
later than one (1) business day  following  the day (i)(A) when a Prospectus  or
any  Prospectus  supplement  or  post-effective  amendment  to the  Registration
Statement  is proposed to be filed;  (B)  whenever  the SEC notifies the Company
whether there will be a "review" of such  Registration  Statement;  (C) whenever
the Company receives (or a representative of the Company receives on its behalf)
any oral or written comments from the SEC in respect of a Registration Statement
(copies or, in the case of oral  comments,  summaries of such comments  shall be
promptly furnished by the Company to the Investors); and (D) with respect to the
Registration Statement or any post-effective amendment, when the same has become
effective;  (ii)  of any  request  by the  SEC or any  other  Federal  or  state
governmental  authority  for  amendments  or  supplements  to  the  Registration
Statement or Prospectus or for additional information;  (iii) of the issuance by
the SEC of any stop  order  suspending  the  effectiveness  of the  Registration
Statement covering any or all of the Registrable Securities or the initiation of
any proceedings for that purpose; (iv) if at any time any of the representations
or  warranties  of  the  Company  contained  in  any  agreement  (including  any
underwriting agreement) contemplated hereby ceases to be true and correct in all
material  respects;  (v) of the receipt by the Company of any notification  with
respect to the suspension of the  qualification or exemption from  qualification
of any of the  Registrable  Securities  for  sale  in any  jurisdiction,  or the
initiation or threatening  of any  proceeding for such purpose;  and (vi) of the
occurrence  of any event that to the best  knowledge  of the  Company  makes any
statement  made in the  Registration  Statement  or  Prospectus  or any document
incorporated  or deemed to be  incorporated  therein by reference  untrue in any
material respect or that requires any revisions to the  Registration  Statement,
Prospectus or other documents so that, in the case of the Registration Statement
or the Prospectus,  as the case may be, it will not contain any 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,  in  light  of  the
circumstances  under which they were made,  not  misleading.  In  addition,  the
Company shall furnish the Investor's Counsel with copies of all intended written
responses  to the comments  contemplated  in clause (C) of this Section 3(d) not
later than one (1) business day in advance of the filing of such  responses with
the SEC so that the Investors shall have the opportunity to comment thereon;

                  (e)  Furnish  the  Investor  and  to  Investor's  Counsel  (i)
promptly  after the same is prepared  and publicly  distributed,  filed with the
SEC, or received by the  Company,  one (1) copy of the  Registration  Statement,
each  preliminary  prospectus and  prospectus,  and each amendment or supplement
thereto, and (ii) such number of copies of a prospectus,  and all amendments and
supplements  thereto and such other  documents,  as such Investor may reasonably
request in order to facilitate  the  disposition of the  Registrable  Securities
owned by such Investor;

                  (f) As promptly as  practicable  after becoming aware thereof,
notify  each  Investor  of the  happening  of any event of which the Company has
knowledge,  as a result of which the  prospectus  included  in the  Registration
Statement, as then in effect, includes an untrue statement of a material fact or
omits to state a material  fact  required to be stated  therein or  necessary to
make the statements therein, in light of the circumstances under which they were
made, not misleading,  and use its best efforts promptly to prepare a supplement
or amendment to the Registration  Statement or other appropriate filing with the
SEC to correct such untrue statement or omission, and deliver a number of copies
of such  supplement or amendment to the Investor as the Investor may  reasonably
request;

                  (g) As promptly as  practicable  after becoming aware thereof,
notify the Investor who holds the Registrable  Securities being sold (or, in the
event of an underwritten offering, the managing underwriters) of the issuance by
the SEC of a Notice of  Effectiveness or any notice of effectiveness or any stop
order or other suspension of the effectiveness of the Registration  Statement at
the earliest possible time;

                  (h) Use its  reasonable  efforts  to secure and  maintain  the
designation  of all  the  Registrable  Securities  covered  by the  Registration
Statement on the Principal  Trading Market within the meaning of Rule 11Aa2-1 of
the SEC under the  Securities  Exchange Act of 1934,  as amended (the  "Exchange
Act"), and the quotation of the Registrable  Securities on the Principal Trading
Market.

                  (i)  Cooperate  with the  Investor  to  facilitate  the timely
preparation  and delivery of certificates  for the Registrable  Securities to be
offered pursuant to the Registration  Statement and enable such certificates for
the Registrable  Securities to be in such  denominations  or amounts as the case
may be, as the Investor may reasonably  request,  and,  within five (5) business
days after a Registration  Statement  which includes  Registrable  Securities is
ordered  effective by the SEC, the Company shall deliver,  and shall cause legal
counsel  selected  by the  Company to  deliver,  to the  transfer  agent for the
Registrable   Securities  (with  copies  to  the  Investors  whose   Registrable
Securities  are  included  in  such   Registration   Statement)  an  appropriate
instruction and opinion of such counsel;

<PAGE>

(j) For a period of 90 days from the  Effective  Date,  not file a  Registration
Statement for more than 100,000 shares of Common Stock;

(k) Take all other  reasonable  actions  necessary  to expedite  and  facilitate
disposition  by the  Investor  of the  Registrable  Securities  pursuant  to the
Registration Statement.

                  4.  Obligations  of  the  Investor.  In  connection  with  the
registration  of the  Registrable  Securities,  the  Investors  shall  have  the
following obligations:

                  (a)  The  Investor,   by  the  Investor's  acceptance  of  the
Registrable  Securities,  agrees to  cooperate  with the  Company as  reasonably
requested by the Company in connection  with the  preparation  and filing of the
Registration  Statement hereunder,  unless the Investor has notified the Company
in  writing  of the  Investor's  election  to  exclude  all  of  the  Investor's
Registrable Securities from the Registration Statement; and

                  (b) The Investor  agrees that, upon receipt of any notice from
the Company of the happening of any event of the kind  described in Section 3(f)
or 3(g),  above,  the  Investor  will  immediately  discontinue  disposition  of
Registrable  Securities  pursuant to the  Registration  Statement  covering such
Registrable  Securities  until  the  Investor's  receipt  of the  copies  of the
supplemented or amended prospectus  contemplated by Section 3(f) or 3(g) and, if
so directed by the Company,  the Investor  shall  deliver to the Company (at the
expense of the Company) or destroy (and deliver to the Company a certificate  of
destruction) all copies in the Investor's possession, of the prospectus covering
such Registrable Securities current at the time of receipt of such notice.

                  5. Expenses of Registration.

(a) All expenses (other than (i)  underwriting  discounts and commissions of the
Investor and (ii) expenses of the Investor's counsel incurred in connection with
registrations,  filings or qualifications pursuant to Section 3), but including,
without limitation, all registration, listing, and qualifications fees, printers
and accounting fees, the fees and disbursements of counsel for the Company shall
be borne by the Company.

                  (b) The Company has not, as of the date hereof,  nor shall the
Company on or after the date of this  Agreement,  enter into any agreement  with
respect to its securities  that is  inconsistent  with the rights granted to the
Investor in this  Agreement  or the  Securities  Purchase  Agreement,  except as
disclosed therein.

                  6. Indemnification.  After Registrable Securities are included
in a Registration Statement under this Agreement:

                  (a) To the extent permitted by law, the Company will indemnify
and hold harmless,  the Investor,  the directors,  if any, of such Investor, the
officers,  if any, of such Investor,  and the Lender  Control  Person (each,  an
"Indemnified  Party"),  against  any losses,  claims,  damages,  liabilities  or
expenses (joint or several)  incurred  (collectively,  "Claims") to which any of
them may become subject under the Securities Act, the Exchange Act or otherwise,
insofar as such Claims (or actions or proceedings,  whether commenced in respect
thereof)  arise out of or are based  upon:  (i) any untrue  statement  or untrue
statement  of a material  fact  contained in the  Registration  Statement or any
post-effective  amendment  thereof or 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, (ii) any untrue statement or untrue statement
of  a  material  fact   contained  in  the  final   prospectus  (as  amended  or
supplemented,  if the Company files any amendment thereof or supplement  thereto
with the SEC) or the omission or alleged  omission to state therein any material
fact  necessary  to make  the  statements  made  therein,  in the  light  of the
circumstances  under which the  statements  therein were made, not misleading or
(iii) any violation or alleged  violation by the Company of the Securities  Act,
the Exchange Act, any state  securities law or any rule or regulation  under the
Securities Act, the Exchange Act or any state securities law (the matters in the
foregoing  clauses  (i)  through  (iii)  being   collectively   referred  to  as
"Violations"). The Company shall reimburse the Investor for any reasonable legal
fees  or  other  reasonable   expenses  incurred  by  them  in  connection  with
investigating  or  defending  any such  Claim.  Notwithstanding  anything to the
contrary  contained  herein,  the  indemnification  agreement  contained in this
Section  6(a) shall not (i) apply to any Claims  arising  out of or based upon a

<PAGE>

Violation  which  occurs in reliance  upon and in  conformity  with  information
furnished  in writing to the  Company by or on behalf of any  Indemnified  Party
expressly  for  use in  connection  with  the  preparation  of the  Registration
Statement or any such amendment thereof or supplement thereto; (ii) be available
to the extent  such Claim is based on a failure  of the  Investor  to deliver or
cause to be delivered the  prospectus  made  available by the Company;  or (iii)
apply to amounts paid in settlement of any Claim if such  settlement is effected
without the prior  written  consent of the Company,  which  consent shall not be
unreasonably  withheld.  The Investor will indemnify the Company,  its officers,
directors and agents  (including  legal counsel) (each an  "Indemnified  Party")
against  any claims  arising out of or based upon a  Violation  which  occurs in
reliance upon and in  conformity  with  information  furnished in writing to the
Company, by or on behalf of such Investor,  expressly for use in connection with
the preparation of the Registration  Statement,  subject to such limitations and
conditions set forth in this Section 6. The Investor shall reimburse the Company
for any reasonable  legal fees or other  reasonable  expenses  incurred by it in
connection with  investigating or defending any such Claim. Such indemnity shall
remain in full force and effect  regardless of any  investigation  made by or on
behalf of the Indemnified  Party, and shall survive the offering and transfer of
the Registrable Securities by the Investor.

         (b) Promptly after receipt by an Indemnified Party under this Section 6
of notice of the commencement of any action (including any governmental action),
such  Indemnified  Party  shall,  if a Claim in  respect  thereof  is to be made
against any indemnifying party under this Section 6, deliver to the indemnifying
party a written notice of the commencement  thereof and the  indemnifying  party
shall have the right to  participate  in,  and,  to the extent the  indemnifying
party so desires,  jointly with any other  indemnifying party similarly noticed,
to assume control of the defense thereof with counsel  mutually  satisfactory to
the indemnifying  party and the Indemnified Party, as the case may be; PROVIDED,
HOWEVER,  that an  Indemnified  Party  shall  have the right to  retain  its own
counsel with the  reasonable  fees and  expenses to be paid by the  indemnifying
party,  if, in the reasonable  opinion of counsel  retained by the  indemnifying
party,  the  representation  by such  counsel of the  Indemnified  Party and the
indemnifying  party would be inappropriate due to actual or potential  differing
interests between such Indemnified Party and any other party represented by such
counsel  in such  proceeding.  The  failure  to  deliver  written  notice to the
indemnifying  party within a  reasonable  time of the  commencement  of any such
action  shall  not  relieve  such  indemnifying  party of any  liability  to the
Indemnified  Party  under  this  Section  6,  except  to  the  extent  that  the
indemnifying  party is  prejudiced  in its  ability to defend such  action.  The
indemnification required by this Section 6 shall be made by periodic payments of
the amount thereof during the course of the  investigation  or defense,  as such
expense, loss, damage or liability is incurred and is due and payable.

                  7.  Contribution.  To the  extent  any  indemnification  by an
indemnifying  party is  prohibited  or limited by law,  the  indemnifying  party
agrees to make the maximum contribution with respect to any amounts for which it
would  otherwise be liable under  Section 6 to the fullest  extent  permitted by
law;  PROVIDED,   HOWEVER,   that  (a)  no  contribution  shall  be  made  under
circumstances  where the maker  would not have been  liable for  indemnification
under the fault  standards set forth in Section 6; (b) no seller of  Registrable
Securities guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to  contribution  from any seller
of   Registrable   Securities   who  was   not   guilty   of   such   fraudulent
misrepresentation;  and (c) except where the seller has  committed  fraud (other
than a  fraud  by  reason  of the  information  included  or  omitted  from  the
Registration  Statement  as to  which  the  Company  has  not  given  notice  as
contemplated under Section 3 hereof) or intentional misconduct,  contribution by
any  seller of  Registrable  Securities  shall be  limited  in amount to the net
amount of proceeds  received  by such  seller from the sale of such  Registrable
Securities.

                  8. Reports under  Securities Act and Exchange Act. With a view
to making  available to Investor the benefits of Rule 144 promulgated  under the
Securities  Act or any other  similar rule or  regulation of the SEC that may at
any time permit Investor to sell securities of the Company to the public without
Registration ("Rule 144"), the Company agrees to:

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

                  (b) file with the SEC in a timely manner all reports and other
documents required of the Company under the Securities Act and the Exchange Act;

<PAGE>

                  (c)  furnish  to the  Investor  so long as the  Investor  owns
Registrable  Securities,  promptly upon request,  (i) a written statement by the
Company that it has complied  with the reporting  requirements  of Rule 144, the
Securities  Act and the Exchange  Act,  (ii) if not available on the SEC's EDGAR
system,  a copy of the most recent annual or quarterly report of the Company and
such other  reports and  documents  so filed by the Company and (iii) such other
information  as may be reasonably  requested to permit the Investor to sell such
securities pursuant to Rule 144 without Registration.

                  9. Assignment of the Registration  Rights.  The rights to have
the Company register Registrable  Securities pursuant to this Agreement shall be
automatically  assigned by the Investors to any  transferee  of the  Registrable
Securities  (or all or any portion of any  unconverted  Debentures)  only if the
Company  is,  within a  reasonable  time  after  such  transfer  or  assignment,
furnished with written notice of (a) the name and address of such  transferee or
assignee and (b) the securities with respect to which such  registration  rights
are being transferred or assigned.

                  10.  Amendment of Registration  Rights.  Any provision of this
Agreement  may be  amended  and the  observance  thereof  may be waived  (either
generally   or  in  a   particular   instance   and  either   retroactively   or
prospectively),  only with the written  consent of the Company and the Investor.
Any  amendment or waiver  effected in  accordance  with this Section 10 shall be
binding upon the Investor and the Company.

                  11. Miscellaneous.

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

                  (b) Notices  required or permitted to be given hereunder shall
be given in the manner contemplated by the Securities Purchase Agreement, (i) if
to the Company or to the Investor,  to their respective  address and the address
of their counsel as contemplated by the Securities Purchase Agreement,  and (ii)
if to any other  Investor,  at such address as such Investor shall have provided
in writing to the Company, or at such other address as each such party furnishes
by notice given in accordance with this Section 11(b).

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

                  (d) This  Agreement  shall be governed by and  interpreted  in
accordance  with the laws of the State of Colorado  for  contracts  to be wholly
performed  in such state and without  giving  effect to the  principles  thereof
regarding the conflict of laws. Each of the parties consents to the jurisdiction
of the federal  courts in the City of New York,  New York or the state courts of
the State of New York sitting in the City of New York, New York County, New York
in connection  with any dispute  arising under this Agreement and hereby waives,
to the maximum extent  permitted by law, any objection,  including any objection
based on forum non  coveniens,  to the bringing of any such  proceeding  in such
jurisdictions.  To the  extent  determined  by such  court,  the  Company  shall
reimburse the Investor for any reasonable legal fees and disbursements  incurred
by the Investor in  enforcement of or protection of any of its rights under this
Agreement

                  (e) If any  provision  of this  Agreement  shall be invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not
affect the validity or  enforceability of the remainder of this Agreement or the
validity or enforceability of this Agreement in any other jurisdiction.

                  (f)  Subject to the  requirements  of  Section 9 hereof,  this
Agreement  shall inure to the benefit of and be binding upon the  successors and
assigns of each of the parties hereto.

                  (g) All  pronouns  and any  variations  thereof  refer  to the
masculine, feminine or neuter, singular or plural, as the context may require.

<PAGE>

                  (h) The  headings in this  Agreement  are for  convenience  of
reference only and shall not limit or otherwise affect the meaning thereof.

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

(j) This Agreement  constitutes  the entire  agreement  among the parties hereto
with respect to the subject matter hereof. There are no restrictions,  promises,
warranties  or  undertakings,  other than those set forth or referred to herein.
This Agreement  supersedes all prior  agreements  and  understandings  among the
parties hereto with respect to the subject matter hereof.  This Agreement may be
amended only by an instrument in writing  signed by the party to be charged with
enforcement thereof.

(k) The Company acknowledges that any failure by the Company to
perform  its  obligations  under  Section  3(a)  hereof,  or any  delay  in such
performance could result in loss to the Investors,  and the Company agrees that,
in  addition  to any  other  liability  the  Company  may have by reason of such
failure or delay,  the Company shall be liable for all direct  damages caused by
any such  failure  or delay,  unless  the same is the  result of force  majeure.
Neither party shall be liable for consequential damages.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

                  IN WITNESS WHEREOF,  the parties have caused this Agreement to
be duly executed by their  respective  officers  thereunto duly authorized as of
the day and year first above written.

                                       COMPANY:
                                       HEALTH SCIENCES GROUP, INC.

                                       By: ___________________________
                                       Title:__________________________

                                       INVESTOR:
                                         CASTLERIGG MASTER INVESTMENTS, INC.

                                       By: ____________________________
                                       Name: __________________________
                                       Title:
                                              -------------------------

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