Document:

EXHIBIT 4.22

THE SECURITIES  REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "1933 ACT") AND MAY NOT BE SOLD,  OFFERED FOR SALE,
ASSIGNED,  TRANSFERRED OR OTHERWISE  DISPOSED OF, UNLESS REGISTERED  PURSUANT TO
THE  PROVISIONS  OF THAT ACT OR A  SATISFACTORY  OPINION OF COUNSEL IS  OBTAINED
STATING THAT SUCH DISPOSITION IS IN COMPLIANCE WITH AN AVAILABLE  EXEMPTION FROM
SUCH REGISTRATION.

             VOID AFTER 5:00 P.M. EASTERN TIME ON SEPTEMBER 14, 2005

                          BIOKEYS PHARMACEUTICALS, INC.

             (Incorporated under the laws of the State of Delaware)

               WARRANT FOR THE PURCHASE OF SHARES OF COMMON STOCK
               --------------------------------------------------

No. WA - 2A                           Originally issued as of September 15, 1998
                                      Re-Issued as of June 14, 2001 (Transfer)

      FOR VALUE  RECEIVED,  BIOKEYS  PHARMACEUTICALS,  INC. (the  "Company"),  a
Delaware  corporation,  hereby  certifies  that ROBERT J. NEBORSKY AND SANDRA S.
NEBORSKY,  JTWROS, or their permitted assigns  (collectively  referred to as the
"Holder") are entitled,  subject to the provisions of this Warrant,  to purchase
from the Company,  during the period  commencing on the date of this Warrant and
expiring at 5:00 p.m. Eastern Time on September 14, 2005 (the "Expiration Date")
up  to  FIFTY   THOUSAND  TWO  HUNDRED   FIFTY-FOUR   (50,254)  fully  paid  and
non-assessable  shares of the Company's Common Stock (the "Warrant Shares"),  at
an  exercise  price of $0.49  per  share  (the  "Exercise  Price"),  subject  to
adjustment as set forth below.

      The term "Common Stock" means, unless the context otherwise indicates, the
Common Stock of the Company as constituted on the date hereof (the "Base Date").
The number of shares of Common  Stock to be received  upon the  exercise of this
Warrant,  and the Exercise Price, may be subject to adjustment from time to time
as hereinafter set forth. The term "Company" means, unless the context otherwise
indicates,  the  corporation  named above as well as (i) any  immediate  or more
remote successor  corporation  resulting from the merger or consolidation of the
Company (or any immediate or more remote  successor  corporation of the Company)
with another  corporation,  or (ii) any corporation to which the Company (or any
immediate or more remote  successor  corporation of the Company) has transferred
its property or assets as an entirety or substantially as an entirety.

<PAGE>

      The Holder  agrees with the Company that this  Warrant is issued,  and all
the  rights  hereunder  shall  be  held  subject  to,  all  of  the  conditions,
limitations and provisions set forth herein.

      1.    Expiration of Warrant. The Warrant shall expire at 5:00 p.m. Eastern
Time  on  the  Expiration  Date  or,  if  such  day is a day  on  which  banking
institutions  in New  York  are  authorized  by law to  close,  then on the next
succeeding day that shall not be such a day.

      2.    Exercise of Warrant.

            a.    This  Warrant may be exercised in whole or in part at any time
after the date hereof or at any other time as specifically  provided for herein,
by  presentation  and  surrender of this Warrant to the Company at its principal
office,  or at the office of its stock transfer  agent, if any, with the Warrant
Exercise Form attached  hereto duly executed and  accompanied by payment (either
in cash or by  certified  or official  bank  check,  payable to the order of the
Company) of the Exercise Price for the number of shares  specified in such form,
together with  instruments  of transfer,  if  appropriate,  duly executed by the
Holder  or his or her  duly  authorized  attorney.  If this  Warrant  should  be
exercised in part only,  the Company  shall,  upon surrender of this Warrant for
cancellation,  execute  and  deliver  a new  Warrant,  subject  to  all  of  the
conditions,  limitations, and provisions set forth herein, evidencing the rights
of the  Holder  thereof  to  purchase  the  balance  of the  shares  purchasable
hereunder. Upon receipt by the Company of this Warrant, together with payment of
the Exercise Price, at its office, or by the stock transfer agent of the Company
at its office, in proper form for exercise, the Holder shall be deemed to be the
holder of record of the  shares of Common  Stock  issuable  upon such  exercise,
notwithstanding  that the stock  transfer  books of the  Company  shall  then be
closed or that  certificates  representing such shares of Common Stock shall not
then be  actually  delivered  to the  Holder.  The Holder  shall pay any and all
documentary  stamp or similar issue or transfer  taxes payable in respect of the
issue or delivery of shares of Common Stock on exercise of this Warrant.

            b.    As an alternative  to payment of the aggregate  Exercise Price
in accordance  with  paragraph (a) above,  Holder may elect to effect a cashless
exercise by so  indicating  on the Warrant  Exercise  Form  attached  hereto and
including  a  calculation  of the number of shares of Common  Stock to be issued
upon such exercise in accordance with the terms hereof (a "Cashless  Exercise").
In the event of a Cashless Exercise, the Holder shall surrender this Warrant for
that number of shares of Common Stock  determined by (i)  multiplying the number
of Warrant  Shares for which this Warrant is being  exercised by the  difference
between the bid price of a share of Common Stock and the Exercise  Price,  as of
the trading day immediately  before the date of exercise,  and (ii) dividing the
product  by the bid  price of one  share of  Common  Stock  on the  trading  day
immediately preceding the date of exercise.

            c.    The Holder may not  exercise  this  Warrant to the extent that
the  number  of  Warrant  Shares  to be  received  pursuant  to  such  exercise,
aggregated  with all other  shares  of Common  Stock  then  owned by the  Holder
beneficially  or deemed  beneficially  owned by the Holder,  would result in the
Holder owning more than 9.9% of all of such Common Stock as would be outstanding
on such date, as  determined  in accordance  with Section 16 of the Exchange Ac:
and the rules and regulations promulgated thereunder.

                                       2
<PAGE>

      3.    Reservation  of Shares.  The Company  will at all times  reserve for
issuance and delivery  upon  exercise of this Warrant all shares of Common Stock
or other shares of capital stock of the Company (and other securities) from time
to time  receivable  upon exercise of this  Warrant.  All such shares (and other
securities) shall be duly authorized and, when issued upon such exercise,  shall
be validly  issued,  fully paid and  non-assessable  and free of all  preemptive
rights.

      4.    Fractional  Shares.  No  fractional  shares  or  scrip  representing
fractional shares shall be issued upon the exercise of this Warrant, but, if the
holder is entitled to any fractional share upon such exercise, the Company shall
pay the Holder an amount equal to the fair market value of such fractional share
of Common Stock, in lieu of each fraction of a share  otherwise  called for upon
any exercise of this Warrant, as determined by the Company's Board of Directors.

      5.    Exchange,  Transfer,  Assignment or Loss of Warrant. This Warrant is
exchangeable,  without expense,  at the option of the Holder,  upon presentation
and  surrender  hereof to the  Company  or at the  office of its stock  transfer
agent,  if any, for other  Warrants of different  denominations,  entitling  the
Holder or Holders thereof to purchase in the aggregate the same number of shares
of Common Stock  purchasable  hereunder.  Upon  surrender of this Warrant to the
Company  or at the  office  of its  stock  transfer  agent,  if  any,  with  the
Assignment  Form annexed  hereto duly  executed and funds  sufficient to pay any
transfer tax, the Company shall, without charge (but subject to the restrictions
on transfer  set forth in  Sections  11 and 12 below)  execute and deliver a new
Warrant in the name of the assignee named in such instrument of assignment,  and
this  Warrant  shall  promptly  be  cancelled.  This  Warrant  may be divided or
combined with other Warrants that carry the same rights upon presentation hereof
at the office of the Company or at the office of its stock  transfer  agent,  if
any,  together with a written notice  specifying the names and  denominations in
which new Warrants are to be issued and signed by the Holder hereof.

      6.    Rights of the Holder.  The Holder  shall not, by virtue  hereof,  be
entitled  to any rights of a  stockholder  in the  company,  either at law or in
equity,  and the  rights of the Holder are  limited to those  expressed  in this
Warrant.

      7.    Adjustment Provisions.

            a.    If the  Company,  at any time after the Base Date and prior to
exercise of this Warrant, shall have subdivided its outstanding shares of Common
Stock (or other  securities  at the time  receivable  upon the  exercise  of the
Warrant) by  recapitalization,  reclassification  or split-up thereof, or if the
Company shall have  declared a stock  dividend or  distributed  shares of Common
Stock to its stockholders,  the number of Warrant Shares  purchasable under this
Warrant  immediately prior to such exercise shall be proportionately  increased,
and if the Company, prior to such exercise,  shall have at any time combined the
outstanding  shares of Common  Stock by  recapitalization,  reclassification  or
combination  thereof,  the number of  Warrant  Shares  subject  to this  Warrant
immediately prior to exercise shall be proportionately decreased.

                                       3
<PAGE>

            b.    In case of any  reorganization  of the  Company  (or any other
corporation,  the securities of which are at the time receivable on the exercise
of this  Warrant)  after  the Base  Date,  or in case  after  such Base Date the
Company (or any such other  corporation)  shall  consolidate  with or merge into
another  corporation or convey all or substantially all of its assets to another
corporation,  then,  and in each such case,  the Holder of this Warrant upon the
exercise  thereof  as  provided  in  Section  2  above,  at any time  after  the
consummation of such reorganization,  consolidation, merger or conveyance, shall
be  entitled to receive the  securities  or property to which such Holder  would
have been entitled  upon such  consummation  if such Holder had  exercised  this
Warrant immediately prior thereto.

            c.    Whenever  the number of Warrant  Shares  purchasable  upon the
exercise of this Warrant is required to be subject to  adjustment,  the Exercise
Price shall be adjusted by multiplying the Exercise Price in effect  immediately
prior to such  adjustment  by a fraction (x) the numerator of which shall be the
amount of Warrant  Shares which would he purchasable  upon exercise  immediately
prior to such adjustment and (y) the denominator of which shall be the number of
Warrant Shares so purchasable immediately after such adjustment.

            d.    The  Company  will  not,  by  amendment  of  its  Articles  of
Incorporation or through  reorganization,  consolidation,  merger,  dissolution,
issue or sale of securities, sale of assets or any other voluntary action, avoid
or seek to  avoid  the  observance  or  performance  of any of the  teens of the
Warrant,  but will at all times in good faith  assist in the carrying out of all
such  terms  and in the  taking  of  all  such  action  as may be  necessary  or
appropriate  in order to  protect  the  rights of the  Holder  of this  Warrant.
Without  limiting  the  generality  of  the  foregoing,  while  any  Warrant  is
outstanding, the Company:

                  (i)   will not permit the par value,  if any, of the shares of
                        stock receivable upon the exercise of this Warrant to be
                        above the amount  payable  therefor upon such  exercise;
                        and

                  (ii)  will  take  all  such  action  as  may be  necessary  or
                        appropriate  in order that the  Company  may validly and
                        legally  issue or sell  fully  paid  and  non-assessable
                        stock  upon the  exercise  of all  Warrants  at the time
                        outstanding.

            e.    In case:

                  (i)   the  Company  shall take a record of the  holders of its
                        Common Stock (or other securities at the time receivable
                        upon the  exercise  of the  Warrant)  for the purpose of
                        entitling  them to receive  any  dividend  (other than a
                        cash  dividend  at the same rate as the rate of the last
                        cash dividend  theretofore paid) or other  distribution,
                        or any right to  subscribe  for,  purchase or  otherwise
                        acquire  any  shares  of stock of any class or any other
                        securities, or to receive any other right; or

                  (ii)  of  any  capital  reorganization  of  the  Company,  any
                        reclassification  of the capital  stock of the  Company,
                        any  consolidation or merger of the Company with or into
                        another  corporation,  or any conveyance o(pound) all or
                        substantially  all  of the  assets  of  the  Company  to
                        another corporation; or

                                       4
<PAGE>

                  (iii) of any voluntary or involuntary dissolution, liquidation
                        or winding up of the Company; or

                  (iv)  any other event  specified  in this  Section 9 requiring
                        the taking of such a record.

         Then,  and in each such  case,  the  Company  shall mail or cause to be
mailed  to  each  holder  of  any  Warrant  at the  time  outstanding  a  notice
specifying,  as the case may be,  the date on which a record  is to be taken for
the purpose of such dividend,  distribution or right, and stating the amount and
character of such  dividend,  distribution  or right;  or the date on which such
reorganization,    reclassification,    consolidation,    merger,    conveyance,
dissolution,  liquidation or winding up is to take place,  and the time, if any,
to be fixed,  as to which the  holders of record of Common  Stock (or such other
securities  at the time  receivable  upon the exercise of the Warrant)  shall be
entitled to exchange their shares of Common Stock (or such other securities) for
securities   or   other   property   deliverable   upon   such   reorganization,
reclassification, consolidation, merger, conveyance, dissolution, liquidation or
winding up. Such notice shall be mailed at least twenty days prior to the record
date therein  specified  and this  Warrant may then be  exercised  prior to said
record date  during the term of the  Warrant  and without  regard to any waiting
period which may be set forth under any other provision of this Warrant.

      8.    Registration Rights.

            a.    If the Company  proposes,  at any time prior to the Expiration
Date,  to  file a  registration  statement  with  the  Securities  and  Exchange
Commission  (the  Commission")  on a Form  S-1 or  comparable  general  form for
registration  under  the 1933 Act and  relating  to  securities  issued or to be
issued by it, then it shall give written  notice of such proposed  filing to the
Holder. If, within thirty days after the giving of such notice, the Holder shall
request in writing  that all or any of the  Warrant  Shares be  included in such
proposed registration,  the Company will also register such shares as shall have
been requested in writing.  While the  registration  of such Warrant Shares will
not require the  exercise of the  Warrant  prior to the  effective  date of such
registration,  the Holder will be required to  demonstrate  a bona fide  present
intention  to sell the  Warrant  Shares  being  registered  promptly  after  the
registration  statement  becomes  effective,  failing which the Company may take
steps to withdraw  such Warrant  Shares from  registration.  If all such Warrant
Shares  have been so  registered,  the rights  described  in Section 8 (b) below
shall be of no force or effect.  The  provisions of this  paragraph a. shall not
apply to a  registration  statement  filed in connection  with an initial public
offering by the Company.

            b.    In  addition,  if by September  15, 2000,  the Company has not
filed with the Commission a  registration  statement  covering  shares of Common
Stock,  Holder may give  notice to the Company at any time after  September  15,
2000 and prior to the Expiration  Date to the effect that such holder desires to
register,  for sale under the 1933 Act,  any Warrant  Shares,  in which case the
Company will promptly, on one occasion only, no later than 90 days after receipt
of such notice,  file a  post-effective  amendment  to any current  registration
statement or a new  registration  statement,  to the end that the Warrant Shares
designated in such notice may be publicly sold under the 1933 Act as promptly as
practicable  thereafter,  and the Company will use its best effort to cause such
registration  statement to become and remain effective  (including the taking of
such steps as are  necessary to obtain the removal of any stop order);  provided
however,  that the  Holder  shall  furnish  the  Company  with such  appropriate
information  in connection  therewith as the Company may  reasonably  request in
writing.

                                       5
<PAGE>

            c.    The  Holder  may give the  notice  requiring  the  filing of a
registration  statement  under the Act as set forth in Subsection b above on not
more than one occasion prior to the Expiration Date.

            d.    In  connection  with the  filing of a  registration  statement
pursuant to this Section 8, the Company shall:

                  (i)   notify such  Holder as to the filing and status  thereof
                        and  of  all  amendments  thereto  filed  prior  to  the
                        effective date of said registration statement;

                  (ii)  notify such Holder promptly after it shall have received
                        notice  of the  time  when  the  registration  statement
                        becomes  effective or any  supplement to any  prospectus
                        forming a part of the  registration  statement  has been
                        filed;

                  (iii) prepare  and file  without  expense  to such  Holder any
                        necessary  amendment or supplement to such  registration
                        statement  or  prospectus  as may be necessary to comply
                        with the 1933 Act or  advisable in  connection  with the
                        proposed distribution of the securities by such Holder;

                  (iv)  take all reasonable  steps to qualify the Warrant Shares
                        for sale under the  securities  or blue sky laws of such
                        reasonable number of states as such Holder may designate
                        in writing and to register or obtain the approval of any
                        federal  or state  authority  which may be  required  in
                        connection with the proposed  distribution,  except,  in
                        each case,  in  jurisdictions  in which the Company must
                        either qualify to do business or file a general  consent
                        to   service  of   process   as  a   condition   of  the
                        qualification of such securities;

                  (v)   notify  such  Holder of any stop  order  suspending  the
                        effectiveness of the registration  statement and use its
                        reasonable best efforts to remove such stop order;

                  (vi)  undertake  to  keep  such  registration   statement  and
                        prospectus  effective for a period of one year after its
                        effective date;

                  (vii) furnish to such Holder as soon as  available,  copies of
                        any such registration  statement and each preliminary or
                        final   prospectus   and  any  supplement  or  amendment
                        required  to  be  prepared  pursuant  to  the  foregoing
                        provisions  of this Section,  all in such  quantities as
                        such Holder may from time to time reasonably request.

                                       6
<PAGE>

            e.    The  Holder  agrees  to pay  any  underwriting  discounts  and
commissions, transfer taxes, registration fees and the Holder's own counsel fees
with respect to the Warrant  Shares being  registered.  The Company will pay all
other costs and expenses in connection with a registration statement to be filed
pursuant to this Section 8, including, without limitation, the fees and expenses
of counsel for the Company,  the fees and expenses of its  accountants,  and all
other costs and expenses incident to the preparation,  printing and filing under
the Act of any such registration  statement,  each prospectus and all amendments
and supplements thereto, the costs incurred in connection with the qualification
of such  securities for sale in such  reasonable  number of states as the Holder
have  designated,  including fees and  disbursements of counsel for the Company,
and the costs of  supplying a  reasonable  number of copies of the  registration
statement, each preliminary prospectus,  final prospectus and any supplements or
amendments thereto to such Holder.

            f.    The   Company    agrees   to   enter   into   an   appropriate
cross-indemnity  agreement with any underwriter (as defined in the 1933 Act) for
such Holder in connection with the filing of a registration  statement  pursuant
to this Section.

            g.    If the Company shall file any registration statement including
therein all or any part of the shares of the Company's  Common Stock held by the
Holder,   the  Company  and  each  Holder   shall  enter  into  an   appropriate
cross-indemnity  agreement whereby the Company shall indemnify and hold harmless
the Holder against any losses,  claims,  damages or  liabilities  (or actions in
respect  thereof)  arising out of or based upon any untrue  statement or alleged
untrue statement of any material fact contained in such registration  statement,
or any omission or alleged omission to state therein a material fact required to
be stated therein or necessary to make statements  therein not misleading unless
such  statement or omission  was made in reliance  upon and in  conformity  with
written  information  furnished  or required to be furnished by any such Holder,
and each such Holder shall indemnify and hold harmless the Company,  each of its
directors  and  officers  who have signed the  registration  statement  and each
person,  if any, who  controls  the Company,  within the meaning of the 1933 Act
against  any  losses,  claims,  damages or  liabilities  (or  actions in respect
thereof)  arising out of or based upon any untrue  statement  or alleged  untrue
statement of any material fact contained in such registration  statement, or any
omission or alleged  omission to state  therein a material  fact  required to be
stated therein or necessary to make statements  therein not  misleading,  if the
statement or omission was made in reliance upon and in  conformity  with written
information  furnished or required to be furnished by such Holder  expressly for
use in such registration statement.

            h.    Anything to the contrary herein notwithstanding, if all of the
shares of the Company's  Common Stock then held by the Holder may be sold by the
Holder thereof in a transaction  pursuant to Rule 144 promulgated under the 1933
Act,  the Holder  shall not be entitled to require the Company to register  such
securities pursuant to any registration statement filed under the 1933 Act.

                                       7
<PAGE>

            i.    For a  period  of one year  after  the  effective  date of the
registration  statement  filed  pursuant  to this  Section 8, the Company at its
expense  will file such  post-effective  amendments  as may be necessary to make
available  for use a prospectus  meeting the  requirements  of the 1933 Act. The
Company  wilt cause  copies of such  prospectus  to be  delivered  to any person
selling  the shares of Common  Stock as may be  required by the 1933 Act and the
rules and regulations of the Commission.

            j.    If a managing underwriter acting in good faith determines that
the  inclusion  of all or any  part  of the  Warrant  Shares  in a  registration
statement  would  adversely  affect the marketing of  securities  intended to be
underwritten,  the  amount  of such  Warrant  Shares to be  registered  shall be
reduced  or  limited to the amount  which the  underwriter,  in its  discretion,
reasonably  exercised in good faith,  determines  would not adversely affect the
successful  marketing of the underwritten  securities.  As an alternative,  such
underwriter  may  request  that the sale of any  Warrant  Shares  included  in a
registration  statement  on behalf of a Holder be delayed  for a period of up to
nine months after the conclusion of the distribution of securities to be offered
on behalf of the Company,  and, upon receipt of such request,  such Holder shall
execute  an  agreement  to such  effect  as a  condition  of  inclusion  in such
registration statement.

      9.    Restrictions  on Transfer All Transfers to Comply with the 1933 Act,
etc. Prior to the  registration of the Warrant Shares as set forth in Section 8,
or the sale of such Warrant Shares pursuant to Rule 144 of the Commission,  this
Warrant and any Warrant Shares may not be sold, assigned, transferred,  pledged,
hypothecated or otherwise  disposed of except to members of the immediate family
of Anthony  Kamin,  unless  otherwise  agreed by the Board of  Directors  of the
Company.  Until such registration or sale pursuant to Rule 144, this Warrant and
the  Warrant  Shares  may be  transferred  to other  persons,  but only with the
approval of the Board of  Directors  of the  Company.  Each  transferee  of this
Warrant or any  Warrant  Shares  must be: (1) a person  who,  in the  opinion of
counsel to the Company,  is a person to whom this Warrant or the Warrant  Shares
may legally be transferred  without  registration  and without the delivery of a
current  prospectus  under  the 1933 Act with  respect  thereto,  and then  only
against  receipt  of (i)  requested  information  concerning  the status of such
person and such transfer  under federal and state  securities  laws and (ii) the
agreement  of such person to comply with the  provisions  of this Section 9 with
respect to any resale or other  disposition of such securities;  or (2) a person
to whom delivery is made of a prospectus  then meeting the  requirements  of the
1933 Act relating to such  securities and the offering  thereof for such sale or
disposition,  and thereafter to all successive  assignees.  The Company reserves
the right to require an opinion of counsel  for the Holder  with  respect to any
proposed transfer other than transfers made pursuant to a registered  securities
offering.

      10.   Legend.  Unless the Warrant  Shares have been  registered  under the
1933 Act,  upon  exercise of the Warrant and the  issuance of any of the Warrant
Shares, all certificates representing such shares shall bear on the face thereof
substantially the following legend:

            The  securities  represented  by  this  certificate  have  not  been
            registered under the Securities Act of 1933, as amended, and may not
            be sold,  offered  for  sale,  assigned,  transferred  or  otherwise
            disposed of, unless  registered  pursuant to the  provisions of that
            Act or unless an opinion of counsel to the  Corporation  is obtained
            stating that such  disposition  is in  compliance  with an available
            exemption from such registration.

                                       8
<PAGE>

      11.   Notices.  All  notices  required  hereunder  shall be in writing and
shall be deemed  given  when  transmitted  (with  verified  receipt),  delivered
personally or mailed by certified or registered mail, return receipt  requested,
to the Company or Holder,  as the case may be, for whom such notice is intended,
to the address of such party of which the Company or Holder has been  advised by
written notice.

      12.   Applicable  Law.  The  Warrant  is  issued  under  and shall for all
purposes be governed by and construed in  accordance  with the laws of the State
of Delaware.

      13.   Loss of Warrant Certificate. Upon receipt by the Company of evidence
reasonably  satisfactory to it of the loss, theft,  destruction or mutilation of
this  Warrant,  and (in the case of loss,  theft or  destruction)  of reasonably
satisfactory  indemnification,  and  upon  surrender  and  cancellation  of this
Warrant,  if  mutilated,  the company shall execute and deliver a new Warrant of
like  tenor  and  date.  Any such  new  Warrant  executed  and  delivered  shall
constitute  an  additional  contractual  obligation  on the part of the Company,
whether or not this Warrant so lost, stolen,  destroyed or mutilated shall be at
any time enforceable by anyone.

      IN WITNESS  WHEREOF,  the Company has caused this  Warrant to be signed on
its behalf,  in its corporate name , by its duly authorized  officer,  all as of
the day and year first above written.

Reissued:  June 14, 2001               BIOKEYS PHARMACEUTICALS, INC.,
                                       a Delaware corporation

                                       By: /s/ Warren Lau
                                          -------------------------------------
                                                       President

                                       9
<PAGE>

                              WARRANT EXERCISE FORM

      The undersigned  hereby  irrevocably elects to exercise the within Warrant
to the  extent  of  purchasing  __________  shares of  Common  Stock of  Biokeys
Pharmaceuticals,  Inc. and hereby makes payment of $__________  representing the
aggregate Exercise Price required in connection therewith.  The undersigned also
surrenders the Warrant  certificate to be processed in accordance with the terms
set forth therein.

                                       -----------------------------------------
                                       Signature

                                       -----------------------------------------
                                       Signature, if jointly held

                                       -----------------------------------------
                                       Print Name or Names

                                       -----------------------------------------
                                       Date

                       INSTRUCTIONS FOR ISSUANCE OF STOCK
                       ----------------------------------
         (if other than to the registered holder of the within Warrant)

Name
    ----------------------------------------------------------------------------
         (Please typewrite or print in block letters)

Address
       -------------------------------------------------------------------------

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

Social Security or Taxpayer
Identification Number
                     -----------------------------------------------------------

                                       10
<PAGE>

                                 ASSIGNMENT FORM

      FOR VALUE RECEIVED,  ______________________________  hereby sells, assigns
and transfers unto

Name
    ----------------------------------------------------------------------------
         (Please typewrite or print in block letters)

Address:
        ------------------------------------------------------------------------

the right to purchase Common Stock of Biokeys Pharmaceuticals,  Inc. represented
by this  Warrant  to the extent of  __________  shares as to which such right is
exercisable    and   does   hereby    irrevocably    constitute    and   appoint
____________________  Attorney, to transfer the same on the books of the Company
with full power of substitution in the premises.

DATED: ____________________

                                       -----------------------------------------
                                       Signature

                                       -----------------------------------------
                                       Signature, if jointly held

                                       11EXHIBIT 10.14

                     STANDBY EQUITY DISTRIBUTION AGREEMENT

      AGREEMENT dated as of the 14 day of April 2004 (the  "Agreement")  between
CORNELL CAPITAL PARTNERS,  LP, a Delaware limited  partnership (the "Investor"),
and FORTIS ENTERPRISES,  a corporation  organized and existing under the laws of
the State of Nevada (the "Company").

      WHEREAS,  the  parties  desire  that,  upon the terms and  subject  to the
conditions  contained herein,  the Company shall issue and sell to the Investor,
from time to time as provided  herein,  and the Investor shall purchase from the
Company up to Five Million Dollars  ($5,000,000) of the Company's  common stock,
par value $0.001 per share (the "Common Stock"); and

      WHEREAS,  such investments will be made in reliance upon the provisions of
Regulation D ("Regulation D") of the Securities Act of 1933, as amended, and the
regulations  promulgated  thereunder (the  "Securities  Act"),  and or upon such
other exemption from the registration  requirements of the Securities Act as may
be available with respect to any or all of the investments to be made hereunder.

      WHEREAS,  the Company has engaged Newbridge Securities Inc., to act as the
Company's exclusive placement agent in connection with the sale of the Company's
Common Stock to the Investor hereunder pursuant to the Placement Agent Agreement
dated the date  hereof by and among the  Company,  the  Placement  Agent and the
Investor (the "Placement Agent Agreement").

      NOW, THEREFORE, the parties hereto agree as follows:

                                   ARTICLE I.

                               CERTAIN DEFINITIONS

      Section 1.1.  "Advance"  shall mean the portion of the  Commitment  Amount
requested by the Company in the Advance Notice.

      Section 1.2. "Advance Date" shall mean the date Butler Gonzalez LLP Escrow
Account is in receipt of the funds from the Investor and Butler Gonzalez LLP, as
the Investor's Counsel, is in possession of free trading shares from the Company
and  therefore  an Advance by the Investor to the Company can be made and Butler
Gonzalez LLP can release the free  trading  shares to the  Investor.  No Advance
Date shall be less than six (6) Trading Days after an Advance Notice Date.

      Section 1.3.  "Advance Notice" shall mean a written notice to the Investor
setting forth the Advance amount that the Company requests from the Investor and
the Advance Date.

      Section  1.4.  "Advance  Notice  Date"  shall  mean each date the  Company
delivers to the  Investor an Advance  Notice  requiring  the Investor to advance
funds to the Company,  subject to the terms of this Agreement. No Advance Notice
Date  shall be less than six (6)  Trading  Days after the prior  Advance  Notice
Date.

<PAGE>

      Section 1.5.  "Bid Price" shall mean,  on any date,  the closing bid price
(as reported by Bloomberg  L.P.) of the Common Stock on the Principal  Market or
if the Common Stock is not traded on a Principal  Market,  the highest  reported
bid price for the Common  Stock,  as furnished by the  National  Association  of
Securities Dealers, Inc.

      Section  1.6.  "Closing"  shall mean one of the closings of a purchase and
sale of Common Stock pursuant to Section 2.3.

      Section 1.7.  "Commitment Amount" shall mean the aggregate amount of up to
Five Million  Dollars  ($5,000,000)  which the Investor has agreed to provide to
the Company in order to purchase  the  Company's  Common  Stock  pursuant to the
terms and conditions of this Agreement.

      Section 1.8.  "Commitment  Period" shall mean the period commencing on the
earlier to occur of (i) the  Effective  Date,  or (ii) such  earlier date as the
Company and the  Investor  may  mutually  agree in writing,  and expiring on the
earliest to occur of (x) the date on which the Investor  shall have made payment
of Advances  pursuant to this Agreement in the aggregate  amount of Five Million
Dollars  ($5,000,000),  (y) the date this  Agreement is  terminated  pursuant to
Section  2.5,  or (z) the date  occurring  twenty-four  (24)  months  after  the
Effective Date.

      Section 1.9.  "Common  Stock" shall mean the Company's  common stock,  par
value $0.001 per share.

      Section  1.10.  "Condition  Satisfaction  Date" shall have the meaning set
forth in Section 7.2.

      Section 1.11.  "Damages" shall mean any loss,  claim,  damage,  liability,
costs and expenses (including,  without limitation,  reasonable  attorney's fees
and disbursements and costs and expenses of expert witnesses and investigation).

      Section 1.12.  "Effective Date" shall mean the date on which the SEC first
declares  effective  a  Registration  Statement  registering  the  resale of the
Registrable Securities as set forth in Section 7.2(a).

      Section 1.13. "Escrow Agreement" shall mean the escrow agreement among the
Company, the Investor, and Butler Gonzalez LLP dated the date hereof.

      Section 1.14.  "Exchange  Act" shall mean the  Securities  Exchange Act of
1934, as amended, and the rules and regulations promulgated thereunder.

      Section  1.15.   "Material  Adverse  Effect"  shall  mean  any  condition,
circumstance, or situation that would prohibit or otherwise materially interfere
with the ability of the Company to enter into and perform any of its obligations
under this  Agreement  or the  Registration  Rights  Agreement  in any  material
respect.

                                       2
<PAGE>

      Section  1.16.  "Market  Price"  shall mean the lowest  VWAP of the Common
Stock during the Pricing Period.

      Section  1.17.  "Maximum  Advance  Amount"  shall be Two Hundred  Thousand
Dollars ($200,000) per Advance Notice.

      Section  1.18 "NASD"  shall mean the National  Association  of  Securities
Dealers, Inc.

      Section  1.19  "Person"  shall  mean  an  individual,  a  corporation,   a
partnership, an association, a trust or other entity or organization,  including
a government or political subdivision or an agency or instrumentality thereof.

      Section 1.20  "Placement  Agent" shall mean Newbridge  Securities  Inc., a
registered broker-dealer.

      Section 1.21 "Pricing Period" shall mean the five (5) consecutive  Trading
Days after the Advance Notice Date.

      Section 1.22 "Principal Market" shall mean the Nasdaq National Market, the
Nasdaq SmallCap Market,  the American Stock Exchange,  the OTC Bulletin Board or
the New York Stock  Exchange,  whichever  is at the time the  principal  trading
exchange or market for the Common Stock.

      Section 1.23 "Purchase Price" shall be set at ninety nine percent (99%) of
the Market Price during the Pricing Period.

      Section  1.24  "Registrable  Securities"  shall  mean the shares of Common
Stock to be issued hereunder (i) in respect of which the Registration  Statement
has not been declared  effective by the SEC, (ii) which have not been sold under
circumstances  meeting  all of the  applicable  conditions  of Rule  144 (or any
similar  provision then in force) under the Securities Act ("Rule 144") or (iii)
which have not been otherwise  transferred to a holder who may trade such shares
without  restriction  under the Securities  Act, and the Company has delivered a
new certificate or other evidence of ownership for such securities not bearing a
restrictive legend.

      Section 1.25  "Registration  Rights Agreement" shall mean the Registration
Rights Agreement dated the date hereof, regarding the filing of the Registration
Statement for the resale of the Registrable Securities, entered into between the
Company and the Investor.

      Section 1.26 "Registration  Statement" shall mean a registration statement
on Form  S-1 or  SB-2  (if use of such  form is then  available  to the  Company
pursuant to the rules of the SEC and, if not, on such other form  promulgated by
the SEC for which the Company then  qualifies  and which counsel for the Company
shall deem appropriate,  and which form shall be available for the resale of the
Registrable  Securities  to be  registered  there under in  accordance  with the
provisions  of this  Agreement and the  Registration  Rights  Agreement,  and in
accordance with the intended method of distribution of such securities), for the
registration of the resale by the Investor of the Registrable  Securities  under
the Securities Act.

                                       3
<PAGE>

      Section  1.27  "Regulation  D" shall  have the  meaning  set  forth in the
recitals of this Agreement.

      Section 1.28 "SEC" shall mean the Securities and Exchange Commission.

      Section  1.29  "Securities  Act" shall have the  meaning  set forth in the
recitals of this Agreement.

      Section  1.30 "SEC  Documents"  shall mean Annual  Reports on Form 10-KSB,
Quarterly  Reports  on  Form  10-QSB,  Current  Reports  on Form  8-K and  Proxy
Statements  of the  Company as  supplemented  to the date  hereof,  filed by the
Company for a period of at least twelve (12) months  immediately  preceding  the
date  hereof or the  Advance  Date,  as the case may be,  until such time as the
Company  no  longer  has  an  obligation  to  maintain  the  effectiveness  of a
Registration Statement as set forth in the Registration Rights Agreement.

      Section  1.31  "Trading  Day" shall mean any day during which the New York
Stock Exchange shall be open for business.

      Section 1.32 "VWAP" shall mean the volume  weighted  average  price of the
Company's common stock as quoted by Bloomberg, LP.

                                   ARTICLE II.

                                    ADVANCES

      Section 2.1. Investments.

            (a)  Advances.  Upon the  terms  and  conditions  set  forth  herein
(including,  without  limitation,  the provisions of Article VII hereof), on any
Advance  Notice Date the  Company may request an Advance by the  Investor by the
delivery  of an Advance  Notice.  The number of shares of Common  Stock that the
Investor  shall  receive for each Advance  shall be  determined  by dividing the
amount of the Advance by the  Purchase  Price.  No  fractional  shares  shall be
issued.  Fractional  shares  shall be rounded to the next higher whole number of
shares.  The aggregate maximum amount of all Advances that the Investor shall be
obligated to make under this Agreement shall not exceed the Commitment Amount.

      Section 2.2. Mechanics.

            (a) Advance Notice.  At any time during the Commitment  Period,  the
Company may deliver an Advance Notice to the Investor, subject to the conditions
set forth in Section  7.2;  provided,  however,  the amount for each  Advance as
designated by the Company in the applicable  Advance  Notice,  shall not be more
than the Maximum Advance Amount.  The aggregate amount of the Advances  pursuant
to  this  Agreement  shall  not  exceed  the  Commitment   Amount.  The  Company
acknowledges  that the  Investor may sell shares of the  Company's  Common Stock
corresponding  with a particular Advance Notice on the day the Advance Notice is
received  by the  Investor.  There  will be a minimum  of six (6)  Trading  Days
between each Advance Notice Date.

                                       4
<PAGE>

            (b) Date of Delivery of Advance  Notice.  An Advance Notice shall be
deemed delivered on (i) the Trading Day it is received by facsimile or otherwise
by the Investor if such notice is received  prior to 12:00 noon Eastern Time, or
(ii) the  immediately  succeeding  Trading Day if it is received by facsimile or
otherwise after 12:00 noon Eastern Time on a Trading Day or at any time on a day
which is not a Trading Day. No Advance Notice may be deemed delivered,  on a day
that is not a Trading Day.

            (c) Pre-Closing Share Credit. Within two (2) business days after the
Advance  Notice Date,  the Company shall credit  shares of the Company's  Common
Stock to the  Investor's  balance  account  with The  Depository  Trust  Company
through its Deposit  Withdrawal At Custodian  system,  in an amount equal to the
amount  of the  requested  Advance  divided  by the  closing  Bid  Price  of the
Company's Common Stock as of the Advance Notice Date multiplied by one point one
(1.1).  Any  adjustments to the number of shares to be delivered to the Investor
at the  Closing  as a result of  fluctuations  in the  closing  Bid Price of the
Company's  Common Stock shall be made as of the date of the Closing.  Any excess
shares  shall be credited to the next  Advance.  In no event shall the number of
shares issuable to the Investor pursuant to an Advance cause the Investor to own
in excess of nine and 9/10 percent (9.9%) of the then  outstanding  Common Stock
of the Company.

            (d) Hardship.  In the event the Investor sells the Company's  Common
Stock  pursuant to  subsection  (c) above and the  Company  fails to perform its
obligations  as mandated in Section 2.5 and 2.2 (c), and  specifically  fails to
provide the Investor with the shares of Common Stock for the applicable Advance,
the Company  acknowledges that the Investor shall suffer financial  hardship and
therefore  shall  be  liable  for any  and all  losses,  commissions,  fees,  or
financial hardship caused to the Investor.

      Section  2.3.  Closings.  On each  Advance  Date,  which  shall be six (6)
Trading Days after an Advance  Notice Date, (i) the Company shall deliver to the
Investor's Counsel,  as defined pursuant to the Escrow Agreement,  shares of the
Company's  Common Stock,  representing the amount of the Advance by the Investor
pursuant to Section 2.1 herein,  registered  in the name of the  Investor  which
shall be delivered to the Investor,  or otherwise in accordance  with the Escrow
Agreement  and (ii) the  Investor  shall  deliver  to Butler  Gonzalez  LLP (the
"Escrow  Agent") the amount of the Advance  specified  in the Advance  Notice by
wire  transfer of  immediately  available  funds which shall be delivered to the
Company, or otherwise in accordance with the Escrow Agreement.  In addition,  on
or prior to the Advance Date, each of the Company and the Investor shall deliver
to the other  through the  Investor's  Counsel all  documents,  instruments  and
writings  required to be delivered by either of them pursuant to this  Agreement
in order to implement and effect the transactions  contemplated herein.  Payment
of funds to the  Company  and  delivery  of the  Company's  Common  Stock to the
Investor shall occur in accordance with the conditions set forth above and those
contained in the Escrow  Agreement;  provided,  however,  that to the extent the
Company has not paid the fees, expenses,  and disbursements of the Investor, the
Investor's  counsel and  Kirkpatrick & Lockhart LLP in  accordance  with Section
12.4, the amount of such fees,  expenses,  and  disbursements may be deducted by
the Investor  (and shall be paid to the  relevant  party) from the amount of the
Advance with no reduction in the amount of shares of the Company's  Common Stock
to be delivered on such Advance Date.

                                       5
<PAGE>

      Section 2.4. Termination of Investment.  The obligation of the Investor to
make an  Advance to the  Company  pursuant  to this  Agreement  shall  terminate
permanently  (including  with  respect  to an  Advance  Date  that  has  not yet
occurred)  in the event that (i) there shall occur any stop order or  suspension
of the  effectiveness  of the  Registration  Statement for an aggregate of fifty
(50)  Trading  Days,  other  than due to the acts of the  Investor,  during  the
Commitment  Period,  and (ii) the Company  shall at any time fail  materially to
comply with the  requirements of Article VI and such failure is not cured within
thirty (30) days after receipt of written  notice from the  Investor,  provided,
however,  that  this  termination  provision  shall  not  apply  to  any  period
commencing upon the filing of a  post-effective  amendment to such  Registration
Statement  and ending upon the date on which such post  effective  amendment  is
declared effective by the SEC..

      Section 2.5. Agreement to Advance Funds.

            (a) The  Investor  agrees to  advance  the amount  specified  in the
Advance  Notice to the Company  after the  completion  of each of the  following
conditions and the other conditions set forth in this Agreement:

                  (i)  the  execution  and  delivery  by the  Company,  and  the
Investor, of this Agreement, and the Exhibits hereto;

                  (ii) the Company's Common Stock shall have been authorized for
quotation on the National  Association  of  Securities  Dealers  Inc.'s Over the
Counter Bulletin Board.

                  (iii)  Investor's  Counsel  shall have  received the shares of
Common Stock applicable to the Advance in accordance with Section 2.2(c) hereof;

                  (iv) the Company's  Registration Statement with respect to the
resale  of the  Registrable  Securities  in  accordance  with  the  terms of the
Registration Rights Agreement shall have been declared effective by the SEC;

                  (v) the Company shall have  obtained all material  permits and
qualifications  required by any  applicable  state for the offer and sale of the
Registrable Securities,  or shall have the availability of exemptions therefrom.
The sale and issuance of the Registrable  Securities shall be legally  permitted
by all laws and regulations to which the Company is subject;

                  (vi) the  Company  shall have filed with the  Commission  in a
timely manner all reports,  notices and other documents required of a "reporting
company" under the Exchange Act and applicable Commission regulations;

                  (vii) the fees as set forth in Section  12.4 below  shall have
been paid or can be withheld as provided in Section 2.3; and

                  (viii) the conditions set forth in Section 7.2 shall have been
satisfied.

                  (ix) The  Company  shall  have  provided  to the  Investor  an
acknowledgement,  from  Beckstead  & Watts LLP as to its  ability to provide all
consents  required in order to file a registration  statement in connection with
this transaction;

                                       6
<PAGE>

                  (x) The Company's transfer agent shall be DWAC eligible.

      Section 2.6. Lock Up Period.

                  (i) During the Commitment Period, the Company shall not, issue
or sell (i) any Common Stock or Preferred Stock without  consideration  or for a
consideration  per share less than the Bid Price on the date of issuance or (ii)
issue or sell any warrant,  option, right, contract,  call, or other security or
instrument granting the holder thereof the right to acquire Common Stock without
consideration  or for a  consideration  per share less than the Bid Price on the
date of issuance.

                  (ii) On the date  hereof,  the Company  shall obtain from each
officer and director a lock-up agreement,  as defined below, in the form annexed
hereto as  Schedule  2.6  agreeing  to only sell in  compliance  with the volume
limitation of Rule 144.

                                  ARTICLE III.

                   REPRESENTATIONS AND WARRANTIES OF INVESTOR

      Investor  hereby  represents and warrants to, and agrees with, the Company
that the  following  are true and as of the date  hereof and as of each  Advance
Date:

      Section  3.1.  Organization  and  Authorization.   The  Investor  is  duly
incorporated  or  organized  and  validly  existing in the  jurisdiction  of its
incorporation  or  organization  and has all  requisite  power and  authority to
purchase and hold the securities issuable hereunder.  The decision to invest and
the execution and delivery of this Agreement by such Investor,  the  performance
by such  Investor of its  obligations  hereunder  and the  consummation  by such
Investor of the transactions  contemplated  hereby have been duly authorized and
requires no other  proceedings on the part of the Investor.  The undersigned has
the right,  power and  authority to execute and deliver this  Agreement  and all
other  instruments  (including,  without  limitations,  the Registration  Rights
Agreement), on behalf of the Investor. This Agreement has been duly executed and
delivered by the Investor and,  assuming the  execution and delivery  hereof and
acceptance thereof by the Company,  will constitute the legal, valid and binding
obligations of the Investor, enforceable against the Investor in accordance with
its terms.

      Section 3.2.  Evaluation  of Risks.  The Investor has such  knowledge  and
experience in financial tax and business  matters as to be capable of evaluating
the  merits  and risks of,  and  bearing  the  economic  risks  entailed  by, an
investment  in the Company and of protecting  its  interests in connection  with
this  transaction.  It recognizes that its investment in the Company  involves a
high degree of risk.

      Section 3.3. No Legal Advice From the Company.  The Investor  acknowledges
that it had the  opportunity  to  review  this  Agreement  and the  transactions
contemplated  by this Agreement with his or its own legal counsel and investment
and tax  advisors.  The Investor is relying  solely on such counsel and advisors
and  not on any  statements  or  representations  of the  Company  or any of its
representatives  or agents for legal,  tax or investment  advice with respect to
this  investment,  the  transactions  contemplated  by  this  Agreement  or  the
securities laws of any jurisdiction.

                                       7
<PAGE>

      Section 3.4. Investment Purpose. The securities are being purchased by the
Investor  for its own  account,  for  investment  and  without  any  view to the
distribution, assignment or resale to others or fractionalization in whole or in
part.  The Investor  agrees not to assign or in any way transfer the  Investor's
rights to the  securities  or any  interest  therein and  acknowledges  that the
Company  will not  recognize  any  purported  assignment  or transfer  except in
accordance with applicable  Federal and state  securities  laws. No other person
has or will have a direct or indirect beneficial interest in the securities. The
Investor  agrees not to sell,  hypothecate or otherwise  transfer the Investor's
securities  unless the securities  are  registered  under Federal and applicable
state securities laws or unless,  in the opinion of counsel  satisfactory to the
Company, an exemption from such laws is available.

      Section 3.5. Accredited Investor. The Investor is an "Accredited Investor"
as that term is defined in Rule 501(a)(3) of Regulation D of the Securities Act.

      Section 3.6. Information. The Investor and its advisors (and its counsel),
if any,  have  been  furnished  with all  materials  relating  to the  business,
finances and  operations of the Company and  information  it deemed  material to
making an informed investment decision.  The Investor and its advisors,  if any,
have been  afforded  the  opportunity  to ask  questions  of the Company and its
management.  Neither such  inquiries nor any other due diligence  investigations
conducted by such Investor or its advisors, if any, or its representatives shall
modify,  amend  or  affect  the  Investor's  right  to  rely  on  the  Company's
representations  and  warranties  contained  in  this  Agreement.  The  Investor
understands that its investment  involves a high degree of risk. The Investor is
in a position  regarding  the  Company,  which,  based upon  employment,  family
relationship or economic bargaining power,  enabled and enables such Investor to
obtain information from the Company in order to evaluate the merits and risks of
this investment. The Investor has sought such accounting,  legal and tax advice,
as it has  considered  necessary to make an informed  investment  decision  with
respect to this transaction.

      Section  3.7.  Receipt of  Documents.  The  Investor  and its  counsel has
received and read in their entirety: (i) this Agreement and the Exhibits annexed
hereto;  (ii) all due  diligence and other  information  necessary to verify the
accuracy and  completeness  of such  representations,  warranties and covenants;
(iii) the Company's  Form 10-KSB for the year ended year ended December 31, 2003
and Form 10-QSB for the period ended  September 30, 2003 and (iv) answers to all
questions the Investor  submitted to the Company  regarding an investment in the
Company;  and the Investor has relied on the information  contained  therein and
has  not  been  furnished  any  other  documents,   literature,   memorandum  or
prospectus.

      Section 3.8.  Registration  Rights  Agreement  and Escrow  Agreement.  The
parties have  entered  into the  Registration  Rights  Agreement  and the Escrow
Agreement, each dated the date hereof.

      Section 3.9. No General Solicitation.  Neither the Company, nor any of its
affiliates,  nor any person  acting on its or their  behalf,  has engaged in any
form of general  solicitation  or general  advertising  (within  the  meaning of
Regulation D under the Securities  Act) in connection  with the offer or sale of
the shares of Common Stock offered hereby.

                                       8
<PAGE>

      Section 3.10. Not an Affiliate.  The Investor is not an officer,  director
or a person that  directly,  or indirectly  through one or more  intermediaries,
controls or is controlled by, or is under common control with the Company or any
"Affiliate"  of the  Company  (as  that  term  is  defined  in  Rule  405 of the
Securities  Act).  Neither the  Investor  nor its  Affiliates  has an open short
position in the Common  Stock of the Company,  and the  Investor  agrees that it
will not,  and that it will  cause its  Affiliates  not to,  engage in any short
sales of or hedging transactions with respect to the Common Stock, provided that
the Company  acknowledges  and agrees that upon receipt of an Advance Notice the
Investor  will sell the  Shares to be issued  to the  Investor  pursuant  to the
Advance Notice, even if the Shares have not been delivered to the Investor.

      Section 3.11. Trading  Activities.  The Investor's trading activities with
respect to the Company's Common Stock shall be in compliance with all applicable
federal  and state  securities  laws,  rules and  regulations  and the rules and
regulations  of the  Principal  Market on which the  Company's  Common  Stock is
listed or traded.  Neither the  Investor  nor its  affiliates  has an open short
position in the Common Stock of the Company and, except as set forth below,  the
Investor shall not and will cause its affiliates not to engage in any short sale
as defined in any applicable SEC or National  Association of Securities  Dealers
rules on any hedging  transactions  with  respect to the Common  Stock.  Without
limiting the  foregoing,  the  Investor  agrees not to engage in any naked short
transactions  in excess of the  amount of shares  owned (or an  offsetting  long
position) during the Commitment  Period.  The Investor shall be entitled to sell
Common Stock during the applicable Pricing Period.

                                   ARTICLE IV.

                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

      Except as stated below, on the disclosure  schedules attached hereto or in
the SEC  Documents  (as defined  herein),  the  Company  hereby  represents  and
warrants to, and  covenants  with,  the Investor that the following are true and
correct as of the date hereof:

      Section  4.1.   Organization  and  Qualification.   The  Company  is  duly
incorporated  or  organized  and  validly  existing in the  jurisdiction  of its
incorporation  or  organization  and  has  all  requisite  power  and  authority
corporate  power to own its properties and to carry on its business as now being
conducted.  Each of the  Company and its  subsidiaries  is duly  qualified  as a
foreign corporation to do business and is in good standing in every jurisdiction
in which the nature of the  business  conducted  by it makes such  qualification
necessary,  except to the extent  that the failure to be so  qualified  or be in
good standing  would not have a Material  Adverse  Effect on the Company and its
subsidiaries taken as a whole.

      Section   4.2.   Authorization,   Enforcement,   Compliance   with   Other
Instruments.  (i) The Company has the requisite corporate power and authority to
enter into and perform this Agreement,  the Registration  Rights Agreement,  the
Escrow Agreement,  the Placement Agent Agreement and any related agreements,  in
accordance with the terms hereof and thereof, (ii) the execution and delivery of
this Agreement,  the Registration  Rights Agreement,  the Escrow Agreement,  the
Placement  Agent  Agreement  and any related  agreements  by the Company and the
consummation by it of the  transactions  contemplated  hereby and thereby,  have
been duly  authorized by the Company's Board of Directors and no further consent
or  authorization  is required by the  Company,  its Board of  Directors  or its
stockholders,  (iii) this Agreement,  the  Registration  Rights  Agreement,  the
Escrow Agreement,  the Placement Agent Agreement and any related agreements have
been duly  executed  and  delivered  by the Company,  (iv) this  Agreement,  the
Registration  Rights  Agreement,  the  Escrow  Agreement,  the  Placement  Agent
Agreement and assuming the execution and delivery  thereof and acceptance by the
Investor and any related agreements constitute the valid and binding obligations
of the Company  enforceable  against the Company in accordance with their terms,
except as such  enforceability may be limited by general principles of equity or
applicable bankruptcy,  insolvency,  reorganization,  moratorium, liquidation or
similar laws relating to, or affecting generally,  the enforcement of creditors'
rights and remedies.

                                       9
<PAGE>

      Section 4.3. Capitalization. As of the date hereof, the authorized capital
stock of the Company  consists of 100,000,000  shares of Common Stock, par value
$0.001 per share and  5,000,000  shares of Preferred  Stock of which  66,731,793
shares  of  Common  Stock  and no shares of  Preferred  Stock  were  issued  and
outstanding.  All of such  outstanding  shares have been validly  issued and are
fully paid and  nonassessable.  Except as  disclosed  in the SEC  Documents,  no
shares of Common  Stock are subject to  preemptive  rights or any other  similar
rights or any liens or encumbrances suffered or permitted by the Company. Except
as  disclosed  in the SEC  Documents,  as of the date  hereof,  (i) there are no
outstanding  options,   warrants,  scrip,  rights  to  subscribe  to,  calls  or
commitments  of any  character  whatsoever  relating to, or securities or rights
convertible  into,  any  shares of  capital  stock of the  Company or any of its
subsidiaries, or contracts, commitments, understandings or arrangements by which
the  Company  or  any of  its  subsidiaries  is or may  become  bound  to  issue
additional  shares of capital stock of the Company or any of its subsidiaries or
options,  warrants,  scrip,  rights to subscribe to, calls or commitments of any
character  whatsoever relating to, or securities or rights convertible into, any
shares of capital  stock of the Company or any of its  subsidiaries,  (ii) there
are no outstanding debt securities  (iii) there are no outstanding  registration
statements  other  than  on  Form  S-8  and  (iv)  there  are no  agreements  or
arrangements  under which the Company or any of its subsidiaries is obligated to
register the sale of any of their  securities  under the  Securities Act (except
pursuant to the  Registration  Rights  Agreement).  There are no  securities  or
instruments  containing   anti-dilution  or  similar  provisions  that  will  be
triggered by this Agreement or any related  agreement or the consummation of the
transactions  described  herein or therein.  The Company  has  furnished  to the
Investor true and correct copies of the Company's  Certificate of Incorporation,
as  amended  and  as  in  effect  on  the  date  hereof  (the   "Certificate  of
Incorporation"), and the Company's By-laws, as in effect on the date hereof (the
"By-laws"),  and the terms of all securities convertible into or exercisable for
Common Stock and the material rights of the holders thereof in respect thereto.

      Section 4.4. No Conflict. The execution,  delivery and performance of this
Agreement by the Company and the consummation by the Company of the transactions
contemplated  hereby will not (i) result in a violation  of the  Certificate  of
Incorporation,  any certificate of  designations  of any  outstanding  series of
preferred  stock of the Company or By-laws or (ii) conflict with or constitute a
default (or an event  which with notice or lapse of time or both would  become a
default)  under,  or  give to  others  any  rights  of  termination,  amendment,
acceleration or cancellation of, any agreement, indenture or instrument to which
the Company or any of its  subsidiaries  is a party, or result in a violation of
any law, rule,  regulation,  order,  judgment or decree  (including  federal and
state  securities  laws and  regulations  and the rules and  regulations  of the
Principal Market on which the Common Stock is quoted)  applicable to the Company
or any of its  subsidiaries  or by which any  material  property or asset of the
Company or any of its  subsidiaries is bound or affected and which would cause a
Material Adverse Effect.  Except as disclosed in the SEC Documents,  neither the
Company nor its  subsidiaries is in violation of any term of or in default under
its Certificate of Incorporation or By-laws or their  organizational  charter or
by-laws,   respectively,   or  any  material  contract,   agreement,   mortgage,
indebtedness,  indenture,  instrument, judgment, decree or order or any statute,
rule or regulation  applicable to the Company or its subsidiaries.  The business
of the Company and its  subsidiaries  is not being conducted in violation of any
material  law,  ordinance,  regulation  of any  governmental  entity.  Except as
specifically contemplated by this Agreement and as required under the Securities
Act and any  applicable  state  securities  laws, the Company is not required to
obtain  any  consent,   authorization  or  order  of,  or  make  any  filing  or
registration with, any court or governmental  agency in order for it to execute,
deliver  or  perform  any of its  obligations  under  or  contemplated  by  this
Agreement or the  Registration  Rights  Agreement in  accordance  with the terms
hereof  or  thereof.   All  consents,   authorizations,   orders,   filings  and
registrations  which the Company is required to obtain pursuant to the preceding
sentence  have been  obtained or effected  on or prior to the date  hereof.  The
Company and its subsidiaries are unaware of any fact or circumstance which might
give rise to any of the foregoing.

                                       10
<PAGE>

      Section 4.5. SEC Documents;  Financial Statements.  Since January 1, 2002,
the  Company  has filed all  reports,  schedules,  forms,  statements  and other
documents required to be filed by it with the SEC under of the Exchange Act. The
Company has delivered to the Investor or its representatives,  or made available
through the SEC's website at http://www.sec.gov, true and complete copies of the
SEC Documents.  As of their respective  dates,  the financial  statements of the
Company disclosed in the SEC Documents (the "Financial  Statements") complied as
to form in all material respects with applicable accounting requirements and the
published rules and regulations of the SEC with respect thereto.  Such financial
statements have been prepared in accordance with generally  accepted  accounting
principles, consistently applied, during the periods involved (except (i) as may
be otherwise  indicated in such financial  statements or the notes  thereto,  or
(ii) in the case of unaudited interim statements, to the extent they may exclude
footnotes or may be condensed or summary  statements) and, fairly present in all
material respects the financial  position of the Company as of the dates thereof
and the  results of its  operations  and cash flows for the  periods  then ended
(subject,  in the  case  of  unaudited  statements,  to  normal  year-end  audit
adjustments).  No other  information  provided by or on behalf of the Company to
the  Investor  which is not  included in the SEC  Documents  contains any untrue
statement of a material  fact or omits to state any material  fact  necessary in
order to make the statements  therein,  in the light of the circumstances  under
which they were made, not misleading.

      Section 4.6. 10b-5. The SEC Documents do not include any untrue statements
of material  fact,  nor do they omit to state any material  fact  required to be
stated  therein  necessary  to  make  the  statements  made,  in  light  of  the
circumstances under which they were made, not misleading.

      Section 4.7. No Default.  Except as disclosed  in the SEC  Documents,  the
Company is not in default  in the  performance  or  observance  of any  material
obligation,  agreement,  covenant  or  condition  contained  in  any  indenture,
mortgage, deed of trust or other material instrument or agreement to which it is
a party or by which it is or its  property is bound and  neither the  execution,
nor the  delivery  by the  Company,  nor the  performance  by the Company of its
obligations  under this Agreement or any of the exhibits or  attachments  hereto
will  conflict  with or result in the breach or violation of any of the terms or
provisions  of, or  constitute a default or result in the creation or imposition
of any lien or  charge on any  assets or  properties  of the  Company  under its
Certificate of Incorporation, By-Laws, any material indenture, mortgage, deed of
trust or other  material  agreement  applicable  to the Company or instrument to
which the  Company is a party or by which it is bound,  or any  statute,  or any
decree, judgment, order, rules or regulation of any court or governmental agency
or body having  jurisdiction  over the Company or its  properties,  in each case
which  default,  lien or charge is likely to cause a Material  Adverse Effect on
the Company's business or financial condition.

                                       11
<PAGE>

      Section 4.8. Absence of Events of Default. Except for matters described in
the SEC Documents and/or this Agreement,  no Event of Default, as defined in the
respective  agreement to which the Company 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 (as so  defined),  has occurred  and is  continuing,  which would have a
Material  Adverse  Effect  on the  Company's  business,  properties,  prospects,
financial condition or results of operations.

      Section  4.9.   Intellectual   Property   Rights.   The  Company  and  its
subsidiaries  own or possess  adequate  rights or licenses  to use all  material
trademarks,  trade names,  service marks,  service mark  registrations,  service
names, patents,  patent rights,  copyrights,  inventions,  licenses,  approvals,
governmental authorizations, trade secrets and rights necessary to conduct their
respective businesses as now conducted.  The Company and its subsidiaries do not
have any knowledge of any  infringement  by the Company or its  subsidiaries  of
trademark,  trade name rights, patents, patent rights,  copyrights,  inventions,
licenses, service names, service marks, service mark registrations, trade secret
or other similar rights of others,  and, to the knowledge of the Company,  there
is no claim,  action or  proceeding  being  made or brought  against,  or to the
Company's  knowledge,  being threatened against, the Company or its subsidiaries
regarding trademark,  trade name, patents, patent rights, invention,  copyright,
license, service names, service marks, service mark registrations,  trade secret
or other  infringement;  and the Company and its subsidiaries are unaware of any
facts or circumstances which might give rise to any of the foregoing.

      Section  4.10.  Employee  Relations.  Neither  the  Company nor any of its
subsidiaries  is involved in any labor  dispute  nor,  to the  knowledge  of the
Company or any of its subsidiaries,  is any such dispute threatened. None of the
Company's or its subsidiaries'  employees is a member of a union and the Company
and its subsidiaries believe that their relations with their employees are good.

      Section 4.11. Environmental Laws. The Company and its subsidiaries are (i)
in compliance with any and all applicable material foreign,  federal,  state and
local  laws and  regulations  relating  to the  protection  of human  health and
safety,  the environment or hazardous or toxic substances or wastes,  pollutants
or contaminants ("Environmental Laws"), (ii) have received all permits, licenses
or other  approvals  required  of them under  applicable  Environmental  Laws to
conduct their  respective  businesses and (iii) are in compliance with all terms
and conditions of any such permit, license or approval.

                                       12
<PAGE>

      Section 4.12. Title. Except as set forth in the SEC Documents, the Company
has good and marketable title to its properties and material assets owned by it,
free and clear of any pledge,  lien,  security interest,  encumbrance,  claim or
equitable  interest  other than such as are not  material to the business of the
Company.  Any real property and  facilities  held under lease by the Company and
its subsidiaries are held by them under valid, subsisting and enforceable leases
with such  exceptions as are not material and do not interfere with the use made
and proposed to be made of such  property  and  buildings by the Company and its
subsidiaries.

      Section  4.13.  Insurance.  The Company and each of its  subsidiaries  are
insured by insurers of recognized financial  responsibility  against such losses
and risks and in such  amounts  as  management  of the  Company  believes  to be
prudent  and  customary  in  the   businesses  in  which  the  Company  and  its
subsidiaries  are engaged.  Neither the Company nor any such subsidiary has been
refused any insurance coverage sought or applied for and neither the Company nor
any such  subsidiary has any reason to believe that it will not be able to renew
its existing  insurance  coverage as and when such coverage expires or to obtain
similar  coverage  from  similar  insurers as may be  necessary  to continue its
business at a cost that would not materially and adversely affect the condition,
financial or otherwise,  or the earnings,  business or operations of the Company
and its subsidiaries, taken as a whole.

      Section 4.14. Regulatory Permits. The Company and its subsidiaries possess
all material certificates,  authorizations and permits issued by the appropriate
federal,  state or foreign  regulatory  authorities  necessary to conduct  their
respective  businesses,  and neither the  Company  nor any such  subsidiary  has
received any notice of proceedings relating to the revocation or modification of
any such certificate, authorization or permit.

      Section 4.15.  Internal Accounting  Controls.  The Company and each of its
subsidiaries  maintain a system of internal  accounting  controls  sufficient 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.

      Section 4.16. No Material  Adverse  Breaches,  etc. Except as set forth in
the SEC Documents, neither the Company nor any of its subsidiaries is subject to
any charter,  corporate or other legal  restriction,  or any  judgment,  decree,
order, rule or regulation which in the judgment of the Company's officers has or
is expected  in the future to have a Material  Adverse  Effect on the  business,
properties,  operations, financial condition, results of operations or prospects
of the Company or its  subsidiaries.  Except as set forth in the SEC  Documents,
neither the Company nor any of its  subsidiaries is in breach of any contract or
agreement  which breach,  in the judgment of the Company's  officers,  has or is
expected  to  have  a  Material  Adverse  Effect  on the  business,  properties,
operations,  financial  condition,  results of  operations  or  prospects of the
Company or its subsidiaries.

                                       13
<PAGE>

      Section  4.17.  Absence  of  Litigation.  Except  as set  forth in the SEC
Documents, there is no action, suit, proceeding, inquiry or investigation before
or by any court, public board, government agency,  self-regulatory  organization
or body pending against or affecting the Company, the Common Stock or any of the
Company's subsidiaries, wherein an unfavorable decision, ruling or finding would
(i) have a Material Adverse Effect on the transactions  contemplated hereby (ii)
adversely affect the validity or enforceability  of, or the authority or ability
of the Company to perform its  obligations  under,  this Agreement or any of the
documents contemplated herein, or (iii) except as expressly disclosed in the SEC
Documents,  have  a  Material  Adverse  Effect  on  the  business,   operations,
properties,  financial  condition or results of operation of the Company and its
subsidiaries taken as a whole.

      Section 4.18. Subsidiaries.  Except as disclosed in the SEC Documents, the
Company does not presently own or control, directly or indirectly,  any interest
in any other corporation, partnership, association or other business entity.

      Section 4.19. Tax Status.  Except as disclosed in the SEC  Documents,  the
Company  and each of its  subsidiaries  has made or filed all  federal and state
income and all other tax  returns,  reports  and  declarations  required  by any
jurisdiction  to which it is subject and (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) 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
provision  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 due by the taxing
authority of any jurisdiction,  and the officers of the Company know of no basis
for any such claim.

      Section  4.20.  Certain  Transactions.  Except  as set  forth  in the  SEC
Documents  none of the  officers,  directors,  or  employees  of the  Company is
presently a party to any  transaction  with the Company (other than for services
as employees,  officers and  directors),  including  any contract,  agreement or
other  arrangement  providing for the furnishing of services to or by, providing
for rental of real or  personal  property  to or from,  or  otherwise  requiring
payments to or from any officer,  director or such employee or, to the knowledge
of the Company, any corporation, partnership, trust or other entity in which any
officer,  director,  or any such  employee has a  substantial  interest or is an
officer, director, trustee or partner.

      Section  4.21.  Fees and  Rights  of First  Refusal.  The  Company  is not
obligated to offer the securities  offered hereunder on a right of first refusal
basis or otherwise to any third parties  including,  but not limited to, current
or former shareholders of the Company,  underwriters,  brokers,  agents or other
third parties.

      Section  4.22.  Use of  Proceeds.  The  Company  represents  that  the net
proceeds  from  this  offering  will be used  for  general  corporate  purposes.
However,  in no event shall the net proceeds  from this  offering be used by the
Company for the  payment  (or loaned to any such person for the  payment) of any
judgment,  or other  liability,  incurred  by any  executive  officer,  officer,
director or  employee  of the  Company,  except for any  liability  owed to such
person for services rendered,  or if any judgment or other liability is incurred
by such person originating from services rendered to the Company, or the Company
has indemnified such person from liability.

                                       14
<PAGE>

      Section 4.23. Further Representation and Warranties of the Company. For so
long  as  any  securities   issuable  hereunder  held  by  the  Investor  remain
outstanding, the Company acknowledges,  represents,  warrants and agrees that it
will maintain the listing of its Common Stock on the Principal Market

      Section 4.24. Opinion of Counsel. Investor shall receive an opinion letter
from counsel acceptable to the Investor on the date hereof.

      Section  4.25.  Opinion  of  Counsel.  The  Company  will  obtain  for the
Investor, at the Company's expense, any and all opinions of counsel which may be
reasonably  required in order to sell the securities  issuable hereunder without
restriction.

      Section  4.26.  Dilution.  The  Company  is aware  and  acknowledges  that
issuance  of shares of the  Company's  Common  Stock  could  cause  dilution  to
existing shareholders and could significantly increase the outstanding number of
shares of Common Stock.

                                   ARTICLE V.

                                 INDEMNIFICATION

      The Investor and the Company  represent  to the other the  following  with
respect to itself:

      Section 5.1. Indemnification.

            (a) In  consideration  of the  Investor's  execution and delivery of
this Agreement,  and in addition to all of the Company's other obligations under
this Agreement,  the Company shall defend, protect,  indemnify and hold harmless
the Investor, and all of its officers, directors, partners, employees and agents
(including,   without   limitation,   those  retained  in  connection  with  the
transactions  contemplated  by  this  Agreement)  (collectively,  the  "Investor
Indemnitees")  from and against any and all  actions,  causes of action,  suits,
claims, losses, costs, penalties, fees, liabilities and damages, and expenses in
connection therewith  (irrespective of whether any such Investor Indemnitee is a
party  to the  action  for  which  indemnification  hereunder  is  sought),  and
including  reasonable   attorneys'  fees  and  disbursements  (the  "Indemnified
Liabilities"),  incurred by the Investor  Indemnitees or any of them as a result
of, or arising out of, or relating to (a) any misrepresentation or breach of any
representation  or  warranty  made  by the  Company  in  this  Agreement  or the
Registration  Rights Agreement or any other certificate,  instrument or document
contemplated  hereby or thereby,  (b) any breach of any  covenant,  agreement or
obligation of the Company contained in this Agreement or the Registration Rights
Agreement or any other certificate,  instrument or document  contemplated hereby
or thereby,  or (c) any cause of action,  suit or claim  brought or made against
such  Investor  Indemnitee  not  arising  out of any  action or  inaction  of an
Investor  Indemnitee,  and  arising  out of or  resulting  from  the  execution,
delivery,  performance or enforcement of this Agreement or any other instrument,
document  or  agreement   executed  pursuant  hereto  by  any  of  the  Investor
Indemnitees.  To the extent that the foregoing undertaking by the Company may be
unenforceable for any reason, the Company shall make the maximum contribution to
the payment and  satisfaction of each of the Indemnified  Liabilities,  which is
permissible under applicable law.

                                       15
<PAGE>

            (b) In consideration of the Company's execution and delivery of this
Agreement, and in addition to all of the Investor's other obligations under this
Agreement,  the Investor shall defend, protect,  indemnify and hold harmless the
Company and all of its officers, directors,  shareholders,  employees and agents
(including,   without   limitation,   those  retained  in  connection  with  the
transactions  contemplated  by  this  Agreement)  (collectively,   the  "Company
Indemnitees") from and against any and all Indemnified  Liabilities  incurred by
the  Company  Indemnitees  or any of them as a result of, or arising  out of, or
relating  to (a)  any  misrepresentation  or  breach  of any  representation  or
warranty  made  by the  Investor  in this  Agreement,  the  Registration  Rights
Agreement, or any instrument or document contemplated hereby or thereby executed
by the Investor, (b) any breach of any covenant,  agreement or obligation of the
Investor(s)  contained in this Agreement,  the Registration  Rights Agreement or
any other  certificate,  instrument or document  contemplated  hereby or thereby
executed by the Investor,  or (c) any cause of action,  suit or claim brought or
made against such Company  Indemnitee  based on  misrepresentations  or due to a
breach by the  Investor  and arising  out of or  resulting  from the  execution,
delivery,  performance or enforcement of this Agreement or any other instrument,
document  or  agreement   executed   pursuant  hereto  by  any  of  the  Company
Indemnitees. To the extent that the foregoing undertaking by the Investor may be
unenforceable for any reason,  the Investor shall make the maximum  contribution
to the payment and satisfaction of each of the Indemnified Liabilities, which is
permissible under applicable law.

            (c) The obligations of the parties to indemnify or make contribution
under this Section 5.1 shall survive termination.

                                   ARTICLE VI.

                            COVENANTS OF THE COMPANY

      Section 6.1. Registration Rights. The Company shall cause the Registration
Rights Agreement to remain in full force and effect and the Company shall comply
in all material respects with the terms thereof.

      Section  6.2.  Listing  of Common  Stock.  The  Company  shall  obtain and
maintain  the  Common  Stock's  authorization  for  quotation  on  the  National
Association of Securities Dealers Inc.'s Over the Counter Bulletin Board.

      Section 6.3. Exchange Act Registration.  The Company will cause its Common
Stock to continue to be registered under Section 12(g) of the Exchange Act, will
file in a timely  manner all  reports  and other  documents  required of it as a
reporting  company  under the  Exchange Act and will not take any action or file
any document  (whether or not permitted by Exchange Act or the rules  thereunder
to  terminate  or suspend  such  registration  or to  terminate  or suspend  its
reporting and filing obligations under said Exchange Act.

      Section 6.4. Transfer Agent Instructions.  Not later than two (2) business
days  after  each  Advance  Notice  Date  and  prior  to  each  Closing  and the
effectiveness  of the  Registration  Statement and resale of the Common Stock by
the Investor,  the Company will deliver  instructions  to its transfer  agent to
issue shares of Common Stock free of restrictive legends.

                                       16
<PAGE>

      Section  6.5.  Corporate  Existence.  The  Company  will  take  all  steps
necessary to preserve and continue the corporate existence of the Company.

      Section 6.6. Notice of Certain Events Affecting  Registration;  Suspension
of Right to Make an Advance.  The Company will  immediately  notify the Investor
upon its becoming  aware of the  occurrence  of any of the  following  events in
respect  of a  registration  statement  or  related  prospectus  relating  to an
offering of  Registrable  Securities:  (i) receipt of any request for additional
information  by the SEC or any other  Federal  or state  governmental  authority
during the period of effectiveness of the Registration  Statement for amendments
or supplements to the  registration  statement or related  prospectus;  (ii) the
issuance by the SEC or any other Federal or state governmental  authority of any
stop order suspending the  effectiveness  of the  Registration  Statement or the
initiation  of  any  proceedings   for  that  purpose;   (iii)  receipt  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;  (iv) the happening of any event that makes any  statement  made in the
Registration  Statement or related  prospectus of any document  incorporated  or
deemed to be incorporated therein by reference untrue in any material respect or
that requires the making of any changes in the Registration  Statement,  related
prospectus or documents so that, in the case of the Registration  Statement,  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 not misleading,  and that in the case of the related prospectus, 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 the light of the  circumstances  under  which they were  made,  not
misleading; and (v) the Company's reasonable determination that a post-effective
amendment to the  Registration  Statement would be appropriate;  and the Company
will promptly make available to the Investor any such supplement or amendment to
the related  prospectus.  The  Company  shall not  deliver to the  Investor  any
Advance Notice during the continuation of any of the foregoing events.

      Section 6.7. Expectations Regarding Advance Notices.  Within ten (10) days
after the  commencement  of each calendar  quarter  occurring  subsequent to the
commencement of the Commitment Period, the Company must notify the Investor,  in
writing, as to its reasonable expectations as to the dollar amount it intends to
raise  during such  calendar  quarter,  if any,  through the issuance of Advance
Notices.  Such  notification  shall  constitute  only the  Company's  good faith
estimate and shall in no way  obligate the Company to raise such amount,  or any
amount,  or otherwise limit its ability to deliver Advance Notices.  The failure
by the  Company  to comply  with this  provision  can be cured by the  Company's
notifying  the  Investor,   in  writing,  at  any  time  as  to  its  reasonable
expectations with respect to the current calendar quarter.

      Section 6.8.  Restriction on Sale of Capital Stock.  During the Commitment
Period,  the Company  shall not issue or sell (i) any Common  Stock or Preferred
Stock without  consideration or for a consideration  per share less than the bid
price of the Common Stock  determined  immediately  prior to its issuance,  (ii)
issue or sell any Preferred Stock warrant,  option,  right,  contract,  call, or
other  security or instrument  granting the holder  thereof the right to acquire
Common Stock without  consideration  or for a consideration  per share less than
such Common Stock's Bid Price determined  immediately prior to its issuance,  or
(iii) file any registration statement on Form S-8.

                                       17
<PAGE>

      Section 6.9.  Consolidation;  Merger.  The Company  shall not, at any time
after the date hereof, effect any merger or consolidation of the Company with or
into,  or a transfer  of all or  substantially  all the assets of the Company to
another  entity (a  "Consolidation  Event")  unless the  resulting  successor or
acquiring  entity  (if  not the  Company)  assumes  by  written  instrument  the
obligation to deliver to the Investor such shares of stock and/or  securities as
the Investor is entitled to receive pursuant to this Agreement.

      Section  6.10.  Issuance of the Company's  Common  Stock.  The sale of the
shares of Common  Stock  shall be made in  accordance  with the  provisions  and
requirements of Regulation D and any applicable state securities law.

                                  ARTICLE VII.

                CONDITIONS FOR ADVANCE AND CONDITIONS TO CLOSING

      Section 7.1. Conditions  Precedent to the Obligations of the Company.  The
obligation hereunder of the Company to issue and sell the shares of Common Stock
to the  Investor  incident to each  Closing is subject to the  satisfaction,  or
waiver by the Company, at or before each such Closing, of each of the conditions
set forth below.

            (a) Accuracy of the Investor's  Representations and Warranties.  The
representations  and warranties of the Investor shall be true and correct in all
material respects.

            (b) Performance by the Investor.  The Investor shall have performed,
satisfied  and  complied in all  respects  with all  covenants,  agreements  and
conditions  required by this Agreement and the Registration  Rights Agreement to
be  performed,  satisfied  or complied  with by the Investor at or prior to such
Closing.

      Section 7.2.  Conditions  Precedent to the Right of the Company to Deliver
an Advance  Notice and the  Obligation  of the  Investor to  Purchase  Shares of
Common  Stock.  The right of the  Company to  deliver an Advance  Notice and the
obligation  of the  Investor  hereunder  to  acquire  and pay for  shares of the
Company's  Common Stock  incident to a Closing is subject to the  fulfillment by
the  Company,  on (i) the date of delivery of such  Advance  Notice and (ii) the
applicable Advance Date (each a "Condition  Satisfaction  Date"), of each of the
following conditions:

            (a) Listing of the  Company's  Common Stock.  The  Company's  Common
Stock shall have been  authorized  for quotation on the National  Association of
Securities Dealers Inc.'s Over the Counter Bulletin Board.

            (b) Registration of the Common Stock with the SEC. The Company shall
have filed with the SEC a  Registration  Statement with respect to the resale of
the  Registrable  Securities  in accordance  with the terms of the  Registration
Rights  Agreement.  As set  forth  in the  Registration  Rights  Agreement,  the
Registration  Statement shall have previously  become effective and shall remain
effective on each  Condition  Satisfaction  Date and (i) neither the Company nor
the Investor  shall have  received  notice that the SEC has issued or intends to
issue a stop order with  respect to the  Registration  Statement or that the SEC
otherwise  has  suspended or withdrawn  the  effectiveness  of the  Registration
Statement, either temporarily or permanently, or intends or has threatened to do
so (unless the SEC's concerns have been addressed and the Investor is reasonably
satisfied that the SEC no longer is considering or intends to take such action),
and (ii) no other  suspension of the use or withdrawal of the  effectiveness  of
the Registration  Statement or related  prospectus shall exist. The Registration
Statement  must  have  been  declared  effective  by the SEC  prior to the first
Advance Notice Date.

                                       18
<PAGE>

            (c)  Authority.  The  Company  shall have  obtained  all permits and
qualifications   required  by  any  applicable  state  in  accordance  with  the
Registration  Rights  Agreement  for the offer and sale of the  shares of Common
Stock,  or shall have the  availability  of exemptions  therefrom.  The sale and
issuance of the shares of Common  Stock shall be legally  permitted  by all laws
and regulations to which the Company is subject.

            (d)  Fundamental  Changes.  There  shall not  exist any  fundamental
changes to the information set forth in the  Registration  Statement which would
require  the  Company to file a  post-effective  amendment  to the  Registration
Statement.

            (e)  Performance by the Company.  The Company shall have  performed,
satisfied and complied in all material  respects with all covenants,  agreements
and conditions required by this Agreement  (including,  without limitation,  the
conditions  specified  in  Section  2.5  hereof)  and  the  Registration  Rights
Agreement to be performed, satisfied or complied with by the Company at or prior
to each Condition Satisfaction Date.

            (f) No Injunction.  No statute, rule,  regulation,  executive order,
decree,  ruling or injunction shall have been enacted,  entered,  promulgated or
endorsed by any court or governmental  authority of competent  jurisdiction that
prohibits or directly and adversely affects any of the transactions contemplated
by this Agreement, and no proceeding shall have been commenced that may have the
effect  of   prohibiting  or  adversely   affecting  any  of  the   transactions
contemplated by this Agreement.

            (g) No Suspension  of Trading in or Delisting of Common  Stock.  The
trading of the Common Stock is not suspended by the SEC or the Principal  Market
(if the Common Stock is traded on a Principal Market). The issuance of shares of
Common Stock with respect to the applicable  Closing,  if any, shall not violate
the shareholder  approval  requirements  of the Principal  Market (if the Common
Stock is traded on a Principal Market).  The Company shall not have received any
notice  threatening  the continued  listing of the Common Stock on the Principal
Market (if the Common Stock is traded on a Principal Market).

            (h) Maximum Advance Amount.  The amount of any Advance  requested by
the Company  shall not exceed the Maximum  Advance  Amount.  In addition,  in no
event shall the number of shares issuable to the Investor pursuant to an Advance
cause the Investor to own in excess of nine and 9/10 percent  (9.9%) of the then
outstanding Common Stock of the Company.

                                       19
<PAGE>

            (i) No  Knowledge.  The Company has no  knowledge of any event which
would be more  likely than not to have the effect of causing  such  Registration
Statement to be suspended or otherwise ineffective.

            (j) Other. On each Condition  Satisfaction  Date, the Investor shall
have received the certificate  executed by an officer of the Company in the form
of Exhibit A attached hereto.

                                  ARTICLE VIII.

         DUE DILIGENCE REVIEW; NON-DISCLOSURE OF NON-PUBLIC INFORMATION

      Section 8.1. Due Diligence Review. Prior to the filing of the Registration
Statement the Company  shall make  available  for  inspection  and review by the
Investor,  advisors to and  representatives  of the  Investor,  any  underwriter
participating in any disposition of the Registrable  Securities on behalf of the
Investor pursuant to the Registration Statement, any such registration statement
or amendment or supplement  thereto or any blue sky,  NASD or other filing,  all
financial and other  records,  all SEC Documents and other filings with the SEC,
and all other  corporate  documents  and  properties  of the  Company  as may be
reasonably  necessary  for the purpose of such review,  and cause the  Company's
officers,  directors  and  employees to supply all such  information  reasonably
requested by the Investor or any such representative,  advisor or underwriter in
connection with such Registration Statement (including,  without limitation,  in
response to all questions and other  inquiries  reasonably  made or submitted by
any of them),  prior to and from time to time after the filing and effectiveness
of the Registration  Statement for the sole purpose of enabling the Investor and
such representatives, advisors and underwriters and their respective accountants
and attorneys to conduct  initial and ongoing due diligence  with respect to the
Company and the accuracy of the Registration Statement.

      Section 8.2. Non-Disclosure of Non-Public Information.

            (a) The Company  shall not disclose  non-public  information  to the
Investor,  advisors  to or  representatives  of the  Investor  unless  prior  to
disclosure of such information the Company  identifies such information as being
non-public   information   and  provides  the   Investor,   such   advisors  and
representatives  with the  opportunity  to  accept  or  refuse  to  accept  such
non-public information for review. The Company may, as a condition to disclosing
any  non-public  information  hereunder,  require the  Investor's  advisors  and
representatives  to enter into a  confidentiality  agreement in form  reasonably
satisfactory to the Company and the Investor.

            (b) Nothing herein shall require the Company to disclose  non-public
information to the Investor or its advisors or representatives,  and the Company
represents that it does not disseminate  non-public information to any investors
who purchase stock in the Company in a public offering,  to money managers or to
securities analysts,  provided, however, that notwithstanding anything herein to
the contrary, the Company will, as hereinabove provided,  immediately notify the
advisors and representatives of the Investor and, if any,  underwriters,  of any
event or the existence of any  circumstance  (without any obligation to disclose
the specific  event or  circumstance)  of which it becomes  aware,  constituting
non-public  information (whether or not requested of the Company specifically or
generally  during  the course of due  diligence  by such  persons or  entities),
which, if not disclosed in the prospectus included in the Registration Statement
would  cause such  prospectus  to include a material  misstatement  or to omit a
material  fact  required to be stated  therein in order to make the  statements,
therein,  in light of the circumstances in which they were made, not misleading.
Nothing  contained  in this  Section  8.2 shall be  construed  to mean that such
persons or entities other than the Investor  (without the written consent of the
Investor  prior to disclosure  of such  information)  may not obtain  non-public
information  in the course of conducting  due  diligence in accordance  with the
terms of this  Agreement  and nothing  herein shall  prevent any such persons or
entities  from  notifying  the Company of their  opinion  that based on such due
diligence by such persons or entities,  that the Registration Statement contains
an untrue  statement of material  fact or omits a material  fact  required to be
stated  in the  Registration  Statement  or  necessary  to make  the  statements
contained  therein,  in light of the  circumstances in which they were made, not
misleading.

                                       20
<PAGE>

                                   ARTICLE IX.

                           CHOICE OF LAW/JURISDICTION

      Section  9.1.  Governing  Law.  This  Agreement  shall be  governed by and
interpreted in accordance with the laws of the State of Nevada without regard to
the  principles of conflict of laws.  The parties  further agree that any action
between them shall be heard in Hudson County,  New Jersey, and expressly consent
to the  jurisdiction  and venue of the Superior Court of New Jersey,  sitting in
Hudson  County,  New Jersey and the United States  District Court of New Jersey,
sitting in Newark, New Jersey, for the adjudication of any civil action asserted
pursuant to this paragraph.

                                   ARTICLE X.

                             ASSIGNMENT/TERMINATION

      Section  10.1.  Assignment.  Neither this  Agreement nor any rights of the
Company hereunder may be assigned to any other Person.

      Section  10.2.  Termination.  The  obligations  of the  Investor  to  make
Advances under Article II hereof shall terminate  twenty-four  (24) months after
the Effective Date.

                                   ARTICLE XI.

                                     NOTICES

      Section  11.1.  Notices.   Any  notices,   consents,   waivers,  or  other
communications  required  or  permitted  to be  given  under  the  terms of this
Agreement  must be in writing and will be deemed to have been delivered (i) upon
receipt, when delivered  personally;  (ii) upon receipt, when sent by facsimile,
provided a copy is mailed by U.S.  certified  mail,  return  receipt  requested;
(iii) three (3) days after being sent by U.S.  certified  mail,  return  receipt
requested,  or (iv)  one (1) day  after  deposit  with a  nationally  recognized
overnight  delivery  service,  in each case  properly  addressed to the party to
receive the same.  The addresses and facsimile  numbers for such  communications
shall be:

                                       21
<PAGE>

If to the Company, to:        Fortis Enterprises
                              4185 West Lake Mary Boulevard, Suite 137
                              Lake Mary, FL 32746
                              Attention:        Stephen W. Carnes, President
                              Telephone:        (407) 970-6361
                              Facsimile:        (630) 982-3766

With a copy to:               Kirkpatrick & Lockhart LLP
                              201 South Biscayne Boulevard - Suite 2000
                              Miami, FL  33131-2399
                              Attention:        Clayton E. Parker, Esq.
                              Telephone:        (305) 539-3300
                              Facsimile:        (305) 358-7095

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

With a Copy to:               Butler Gonzalez LLP
                              1416 Morris Avenue - Suite 207
                              Union, NJ 07083
                              Attention:        David Gonzalez, Esq.
                              Telephone:        (908) 810-8588
                              Facsimile:        (908) 810-0973

Each party shall provide five (5) days' prior written  notice to the other party
of any change in address or facsimile number.

                                  ARTICLE XII.

                                 MISCELLANEOUS

      Section 12.1. Counterparts.  This Agreement may be executed in two or more
identical  counterparts,  all of  which  shall  be  considered  one and the same
agreement and shall become effective when  counterparts have been signed by each
party and  delivered  to the other  party.  In the event any  signature  page is
delivered  by  facsimile  transmission,  the party  using such means of delivery
shall  cause  four  (4)  additional  original  executed  signature  pages  to be
physically  delivered to the other party  within five (5) days of the  execution
and delivery hereof,  though failure to deliver such copies shall not affect the
validity of this Agreement.

      Section 12.2. Entire Agreement;  Amendments. This Agreement supersedes all
other prior oral or written agreements between the Investor,  the Company, their
affiliates  and  persons  acting on their  behalf  with  respect to the  matters
discussed  herein,  and this  Agreement and the  instruments  referenced  herein
contain  the entire  understanding  of the parties  with  respect to the matters
covered  herein and therein  and,  except as  specifically  set forth  herein or
therein,  neither  the  Company  nor  the  Investor  makes  any  representation,
warranty,  covenant or undertaking with respect to such matters. No provision of
this  Agreement  may be waived or amended other than by an instrument in writing
signed by the party to be charged with enforcement.

                                       22
<PAGE>

      Section 12.3.  Reporting Entity for the Common Stock. The reporting entity
relied upon for the  determination of the trading price or trading volume of the
Common Stock on any given Trading Day for the purposes of this  Agreement  shall
be Bloomberg,  L.P. or any successor thereto.  The written mutual consent of the
Investor and the Company shall be required to employ any other reporting entity.

      Section  12.4.  Fees and  Expenses.  The Company  hereby agrees to pay the
following fees:

            (a)  Legal  Fees.  Each of the  parties  shall  pay its own fees and
expenses (including the fees of any attorneys, accountants, appraisers or others
engaged by such party) in connection  with this  Agreement and the  transactions
contemplated  hereby,  except  that upon the  execution  of this  Agreement  the
Company  will pay Five  Thousand  Dollars  ($5,000) to Butler  Gonzalez  LLP for
legal, administrative,  and escrow fees directly from the gross proceeds held in
escrow from the First Closing of the Convertible  Debenture transaction pursuant
to the Securities Purchase Agreement dated the date hereof. Subsequently on each
advance date, the Company will pay Butler  Gonzalez LLP, the sum of Five Hundred
Dollars  ($500)  for  legal,  administrative  and  escrow  fees  as  well as any
outstanding  fees of Kirkpatrick & Lockhart LLP directly out the proceeds of any
Advances hereunder.

            (b) Commitment Fees.

                  (i)  On  each  Advance  Date  the  Company  shall  pay  to the
Investor,  directly from the gross  proceeds held in escrow,  an amount equal to
five percent (5%) of the amount of each Advance.  The Company hereby agrees that
if such  payment,  as is  described  above,  is not made by the  Company  on the
Advance  Date,  such  payment  will be made at the  direction of the Investor as
outlined and mandated by Section 2.3 of this Agreement.

                  (ii) Upon the  execution of this  Agreement  the Company shall
issue to the  Investor  one million four  hundred  ninety  thousand  (1,490,000)
shares of the Company's Common. (the "Investor's Shares").

                  (iii) Fully  Earned.  The  Investor's  Shares  shall be deemed
fully earned as of the date hereof.

                  (iv)  Registration  Rights.  The  Investor's  Shares will have
"piggy-back" registration rights.

      Section 12.5. Brokerage. Each of the parties hereto represents that it has
had no dealings in connection  with this  transaction  with any finder or broker
who will  demand  payment of any fee or  commission  from the other  party.  The
Company on the one hand, and the Investor, on the other hand, agree to indemnify
the other against and hold the other  harmless from any and all  liabilities  to
any  person  claiming  brokerage  commissions  or  finder's  fees on  account of
services  purported to have been rendered on behalf of the indemnifying party in
connection with this Agreement or the transactions contemplated hereby.

                                       23
<PAGE>

      Section  12.6.  Confidentiality.   If  for  any  reason  the  transactions
contemplated by this Agreement are not  consummated,  each of the parties hereto
shall keep  confidential  any information  obtained from any other party (except
information  publicly  available  or in such  party's  domain  prior to the date
hereof,  and except as required by court order) and shall promptly return to the
other  parties  all  schedules,  documents,  instruments,  work  papers or other
written information without retaining copies thereof, previously furnished by it
as a result of this Agreement or in connection herein.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       24
<PAGE>

      IN WITNESS  WHEREOF,  the parties  hereto have caused this Standby  Equity
Distribution  Agreement  to be  executed  by  the  undersigned,  thereunto  duly
authorized, as of the date first set forth above.

                                    COMPANY:
                                    FORTIS ENTERPRISES

                                    By: /s/ Stephen W. Carnes
                                             -----------------------------
                                    Name:    Stephen W. Carnes
                                    Title:   President

                                    INVESTOR:
                                    CORNELL CAPITAL PARTNERS, LP

                                    BY:      YORKVILLE ADVISORS, LLC
                                    ITS:     GENERAL PARTNER

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

                                       25
<PAGE>

                                    EXHIBIT A

                      ADVANCE NOTICE/COMPLIANCE CERTIFICATE

                               FORTIS ENTERPRISES

      The undersigned, _______________________ hereby certifies, with respect to
the sale of shares  of  Common  Stock of  Fortis  Enterprises  (the  "Company"),
issuable in connection with this Advance Notice and Compliance Certificate dated
___________________  (the  "Notice"),  delivered  pursuant to the Standby Equity
Distribution Agreement (the "Agreement"), as follows:

      1. The undersigned is the duly elected President of the Company.

      2. There are no fundamental  changes to the  information  set forth in the
Registration  Statement which would require the Company to file a post effective
amendment to the Registration Statement.

      3. The Company has  performed in all material  respects all  covenants and
agreements  to be  performed  by the  Company  on or prior to the  Advance  Date
related  to the  Notice  and has  complied  in all  material  respects  with all
obligations and conditions contained in the Agreement.

      4. The Advance requested is _____________________.

      The   undersigned  has  executed  this   Certificate   this  ____  day  of
_________________.

                               FORTIS ENTERPRISES

                               By:
                                   ----------------------------------------
                               Name:  Stephen W. Carnes
                               Title: President

<PAGE>

                                  SCHEDULED 2.6

                               FORTIS ENTERPRISES

      The  undersigned  hereby  agrees that for a period  commencing on the date
hereof and expiring on the  termination  of the  Agreement  dated March __, 2004
between Fortis  Enterprises (the "Company"),  and Cornell Capital  Partners,  LP
(the "Investor")  (the "Lock-up  Period"),  he, she or it will not,  directly or
indirectly,  without the prior written  consent of the Investor,  issue,  offer,
agree or offer to sell,  sell,  grant an  option  for the  purchase  or sale of,
transfer,  pledge,  assign,  hypothecate,  distribute  or otherwise  encumber or
dispose of except  pursuant  to Rule 144 of the  General  Rules and  Regulations
under the  Securities  Act of 1933,  any  securities  of the Company,  including
common  stock or  options,  rights,  warrants  or other  securities  underlying,
convertible  into,  exchangeable  or exercisable  for or evidencing any right to
purchase or subscribe for any common stock (whether or not beneficially owned by
the  undersigned),  or  any  beneficial  interest  therein  (collectively,   the
"Securities").

      In order to enable the aforesaid covenants to be enforced, the undersigned
hereby consents to the placing of legends and/or  stop-transfer  orders with the
transfer agent of the Company's securities with respect to any of the Securities
registered  in  the  name  of  the  undersigned  or  beneficially  owned  by the
undersigned, and the undersigned hereby confirms the undersigned's investment in
the Company.

Dated: _______________, 2004

                                    Signature

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

                                    Address:
                                            -----------------------------------

                                    City, State, Zip Code:
                                                          ---------------------

                                    -------------------------------------------
                                    Print Social Security Number
                                    or Taxpayer I.D. Number

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