Document:

Exhibit 10.17
                                   DEMAND NOTE

New York, New York                                                   $200,000.00
May 24, 2001

                  ON  DEMAND,  for  value  received,  Fusion  Telecommunications
International, Inc., a Delaware corporation ("Fusion"), whose principal place of
business is 420 Lexington Avenue, Suite 518, New York, New York 10170,  promises
to pay to Marvin S. Rosen,  a resident of the State of Florida,  ("Lender")  the
sum of TWO HUNDRED THOUSAND DOLLARS  ($200,000.00) in lawful money of the United
States of America or such lesser sum as may be demanded  hereunder.  This Demand
Note is being executed and delivered outside the State of Florida.

                  Fusion  shall pay interest on the amount due under this Demand
Note and on overdue interest payments hereunder at a rate equal to the lesser of
(a) 12% per annum and (b) the maximum rate permissible under applicable usury or
similar laws limiting  interest  rates,  said interest to be payable  quarterly,
beginning June 30, 2001. This payment rate shall be computed on the basis of the
actual number of days elapsed over a year of 360 days.

                  If the  indebtedness  represented  by this Demand Note, or any
part thereof, is collected at law or in equity or in bankruptcy, receivership or
other court proceedings, or this Demand Note is placed in the hands of attorneys
for collection,  Fusion agrees to pay, in addition to the principal and interest
(if any) due under this Demand Note, reasonable attorneys' and collection fees.

                  The undersigned waives demand, presentment for payment, notice
of nonpayment,  protest,  notice of dishonor and protest, notice of intention to
accelerate,  notice of acceleration,  and all other notices,  filing of suit and
diligence  in  collecting  this  Demand  Note and  agrees  to any  substitution,
exchange  or release of any such  security  or the  release of any party  liable
hereon and further  agrees that it will not be necessary for any holder  hereof,
in order to enforce  payment of this Demand Note by it, to first  institute suit
or exhaust  its  remedies  against  Fusion,  and  consents to any  extension  or
postponement of time of payment of this Demand Note or any other indulgence with
respect hereto, without notice thereof.

                  The undersigned hereby irrevocably submits to the jurisdiction
of the United States  District  Court for the Southern  District of New York and
any  court  in the  State of New  York  located  in the City of New York and the
County of New York,  and any  appellate  court from any thereof,  in any action,
suit or proceeding brought against it in connection with this Demand Note or for
the recognition or enforcement of any judgment.  The  undersigned  hereto agrees
that a final judgment in any such action, suit or proceeding shall be conclusive
and may be enforced  in other  jurisdictions  by suit on the  judgment or in any
other manner  provided by law. To the extent  permitted by  applicable  law, the
undersigned  hereby  waives  and  agrees  not to assert by way of  motion,  as a
defense or otherwise in any such suit,  action or proceeding,  any claim that it
is not personally  subject to the  jurisdiction  of such courts,  that the suit,
action or

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proceeding  is brought  in an  inconvenient  forum,  that the venue of the suit,
action or proceeding is improper or that the Demand Note may not be litigated in
or by such courts.

                  To the extent  permitted by  applicable  law, the  undersigned
agrees that it shall not seek and hereby  waives the right to seek any review of
the judgment of any such court by any court of any other nation or  jurisdiction
which may be called upon to grant an enforcement of such judgment.

                  The undersigned hereby irrevocably agrees that all summons and
complaint or any other process in connection with this Demand Note may be served
by mailing to the  address  set forth  below or by hand  delivery to a person of
suitable age and discretion at the address set forth below. Such service will be
complete on the date such process is so mailed or delivered, and the undersigned
will have thirty days from such completion of service in which to respond in the
manner  provided by law. The  undersigned may also be served in any other manner
permitted by law, in which event the undersigned's  time to respond shall be the
time provided by law.

                  The  amounts  due  hereunder  shall  not  be  subject  in  way
whatsoever  to  offset,  setoff,  counterclaim  or other  deduction  of any kind
whatsoever.

                  THE UNDERSIGNED HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY LAW,  ANY  RIGHT  TO A TRIAL BY JURY IN  RESPECT  OF ANY  LITIGATION  ARISING
DIRECTLY AND  INDIRECTLY  OUT OF, UNDER OR IN CONNECTION  WITH THIS DEMAND NOTE.
THE UNDERSIGNED HERETO (A) CERTIFIES THAT NO  REPRESENTATIVE,  AGENT OR ATTORNEY
OF ANY PARTY HERETO HAS REPRESENTED,  EXPRESSLY OR OTHERWISE, THAT IT WOULD NOT,
IN THE  EVENT OF  LITIGATION,  SEEK TO  ENFORCE  THE  FOREGOING  WAIVER  AND (B)
ACKNOWLEDGES  THAT IT HAS BEEN ADVISED BY LENDER THAT LENDER HAS BEEN INDUCED TO
ACCEPT THIS DEMAND NOTE BY, AMONG OTHER THINGS, THIS WAIVER.

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                  This Demand Note shall be  governed  by, and for all  purposes
construed in accordance  with, the laws of the State of New York (except for its
conflict of laws rules).

                           FUSION TELECOMMUNICATION INTERNATIONAL, INC.
                           420 Lexington Avenue
                           Suite 518
                           New York, New York 10170

                           --------------------------------------
                           Name:  Robert H. Nelson
                           Title: Chief Financial OfficerEXHIBIT 10.18

                        WARRANT TO PURCHASE COMMON STOCK

                                       OF

                  FUSION TELECOMMUNICATIONS INTERNATIONAL, INC.

         This is to Certify That, FOR VALUE  RECEIVED,  MARVIN ROSEN, or assigns
("Holder"), is entitled to purchase,  subject to the provisions of this Warrant,
from  Fusion  Telecommunications  International,  Inc.,  a Delaware  corporation
("Company"),  TWENTY  FIVE  THOUSAND  (25,000)  fully paid,  validly  issued and
non-assessable shares of Common Stock of the Company ("COMMON STOCK") at a price
equal to $0.85 per  share  ("EXERCISE  PRICE")  at any time or from time to time
from the date  hereof  until JULY 1, 2005 (the  "Exercise  Period"),  subject to
adjustment  as set forth  herein.  The  number  of shares of Common  Stock to be
received  upon the  exercise  of this  Warrant and the price to be paid for each
share of Common  Stock may be  adjusted  from  time to time as  hereinafter  set
forth.  The  shares of Common  Stock  deliverable  upon  such  exercise,  and as
adjusted from time to time, are  hereinafter  sometimes  referred to as "Warrant
Shares".

         (a) EXERCISE OF WARRANT; CANCELLATION OF WARRANT.

This  Warrant may be  exercised in whole and in part at any time or from time to
time during the Exercise Period,  provided,  however,  that (i) is such day is a
day on which banking institutions in the State of New York are authorized by law
to close,  then on the next  succeeding  day which shall not be such a day,  and
(ii) in the event of any merger,  consolidation or sale of substantially all the
assets of the  Company as an  entirety,  resulting  in any  distribution  to the
Company's stockholders, prior to the last day of the Exercise Period, the Holder
shall have the right to exercise  this Warrant  commencing  at such time through
the last day of the Exercise  Period into the kind and amount of shares of stock
and other securities and property (including cash) receivable by a holder of the
number of shares of  Common  Stock  into  which  this  Warrant  might  have been
exercisable  immediately  prior  thereto.  This  warrant  may  be  exercised  by
presentation and surrender hereof to the Company at its principal  office, or at
the office of its stock transfer  agent,  if any, with the Purchase Form annexed
hereto duly executed and  accompanied  by payment of the Exercise  Price for the
number of Warrant Shares  specified in such form. As soon as  practicable  after
each such  exercise of the  Warrants,  but not later than even (7) days from the
date of such  exercise,  the  Company  shall  issue and  deliver to the Holder a
certificate or certificate  for the Warrant Shares  issuable upon such exercise,
registered in the name of the Holder or its designee.  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  evidencing  the Rights of the
Holder  thereof to  purchase  the  balance  of the  Warrant  Shares  purchasable
thereunder. Upon receipt by the Company of this Warrant 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

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Company shall then be closed or that  certificates  representing  such shares of
Common Stock shall not then be physically delivered to the Holder.

                  (2) At any time during the Exercise Price,  the Holder may, at
its  option,  exercise  this  Warrant on a  cashless  basis by  exchanging  this
Warrant, in whole or in part (a "Warrant Exchange"),  into the number of Warrant
Shares  determined in accordance with this Section (a)(2),  by surrendering this
Warrant  at the  principal  office of the  Company or at the office of its stock
transfer  agent,  accompanied by a notice stating such Holder's intent to effect
such  exchange,  the number of Warrant  Shares to be  exchanged  and the date on
which the Holder  requests  that such  Warrant  Exchange  occur (the  "Notice of
Exchange").  The Warrant  Exchange shall take place on the date specified in the
Notice of the Exchange or, if later, the date the Notice of Exchange is received
by the Company (the "Exchange Date").  Certificates for the shares issuable upon
such Warrant Exchange and, if applicable, a new warrant of like tenor evidencing
the balance of the shares remaining subject to this Warrant,  shall be issued as
of the Exchange Date and delivered to the Holder within seven (7) days following
the Exchange Date. In connection with any Warrant  Exchange,  this Warrant shall
represent  the right to subscribe  for and acquire the number of Warrant  Shares
equal to (i) the number of Warrant Shares  specified by the Holder in its Notice
of Exchange (the "Total Number") less (ii) the number of Warrant Shares equal to
the  quotient  obtained by dividing  (A) the product of the Total Number and the
existing  Exercise  Price by (B) the current  market  value of a share of Common
Stock.  Current market value shall have the meaning set forth Section (c) below,
except that for purposes hereof,  the date of exercise,  as used in such Section
(c), shall mean the Exchange Date.

         (b)  RESERVATION OF SHARES.  The Company shall at all times reserve for
issuance  and/or delivery upon exercise of this warrant such number of shares of
its Common Stock as shall be required for issuance and delivery upon exercise of
the Warrants.

         (c)  FRACTIONAL  SHARES.  No fractional  shares or script  representing
fractional  shares  shall be issued  upon the  exercise  of this  Warrant.  With
respect to any  fraction of a share  called for upon any  exercise  hereof,  the
Company shall pay the Holder an amount in cash equal to such fraction multiplied
by the current market value of a share, determined as follows:

                  (1) If the  Common  Stock is listed on a  national  securities
exchange or admitted to unlisted  trading  privileges on such exchange or listed
for trading on the Nasdaq National Market, the current market value shall be the
last  reported  sale price of the Common Stock on such exchange or market on the
last  business  day prior to the date of exercise of this  Warrant or if no such
sale is make on such day, the average  closing bid and asked prices for such day
on such exchange or market; or

                  (2) If the  Common  Stock  is not so  listed  or  admitted  to
unlisted trading  privileges,  but is traded on the Nasdaq SmallCap Market,  the
current  market  value shall be the average of the closing bid and asked  prices
for such day on such  market  and if the  Common  Stock  is not so  traded,  the
current market value shall be the mean of the last

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reported bid and asked prices reported by the National Quotation Bureau, Inc. on
the last business day prior to the date of the exercise of the Warrant; or

                  (3) If the  Common  Stock  is not so  listed  or  admitted  to
unlisted trading privileges,  and bid and asked prices are not so reported,  the
current market value shall be an amount,  not less than book value thereof as at
the end of the most recent  fiscal year of the Company  ending prior to the date
of the exercise of the Warrant,  determined in such reasonable  manner as may be
prescribed by the Board of Directors of the Company.

         (d) 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  thereof to purchase in the aggregate the same number of shares of Common
Stock  purchasable  hereunder.  Upon surrender of this Warrant to the Company at
its principal  office 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,  execute and deliver a new
Warrant in the name of the assignee  named in such  instrument of assignment and
this Warrant shall promptly be canceled. This Warrant may be divided or combined
with other warrants which carry the same rights upon presentation  hereof at the
principal 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.  The term
"Warrant" as used herein  includes any Warrants into which this Warrant might be
divided or exchanged. Upon receipt by the Company of evidence 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 will
execute and  deliver a new Warrant of like tenor and date.  Any such new Warrant
executed 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.

         (e) RIGHTS OF THE HOLDER.  The Holder shall not, by virtue  hereof,  be
entitled to any rights of a shareholder in the Company, either at law or equity,
and the rights of the Holder are limited to those  expressed  in the Warrant and
are not enforceable against the Company except to the extent set forth herein.

         (f) ANTI-DILUTION PROVISIONS.  Subject to the provisions of Section (a)
hereof  the  Exercise  Price in  effect at any time and the  number  and kind of
securities  purchasable  upon the exercise of the  Warrants  shall be subject to
adjustment from time to time upon the happening of certain events as follows:

                  (1) In case the Company shall (i) declare a dividend or make a
distribution  on its  outstanding  shares  of  Common  Stock in shares of Common
Stock, (ii) subdivide or reclassify its outstanding  shares of Common Stock into
a greater  number of

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shares,  or (iii) combine or reclassify its  outstanding  shares of Common Stock
into a smaller number of shares, the Exercise Price in effect at the time of the
record date for such dividend or  distribution  or of the effective date of such
subdivision,  combination or reclassification shall be adjusted so that it shall
equal the price determined by multiplying the Exercise Price by a fraction,  the
denominator  of which shall be the number of shares of Common Stock  outstanding
after  giving  effect to such  action,  and the  numerator of which shall be the
number of shares of Common Stock  outstanding  immediately prior to such action.
Such adjustment shall be made successively whenever any event listed above shall
occur.

                  (2) Whenever the Exercise  Price payable upon exercise of each
Warrant is  adjusted  pursuant  to  Subsection  (1) above,  the number of Shares
purchasable  upon exercise of this Warrant shall  simultaneously  be adjusted by
multiplying  the  number of Shares  initially  issuable  upon  exercise  of this
Warrant by the  Exercise  Price in effect on the date  hereof and  dividing  the
product so obtained by the Exercise Price, as adjusted.

                  (3) No  adjustment  in the  Exercise  Price  shall be required
unless such  adjustment  would  require an increase or decrease of at least five
cents ($0.05) in such price;  provided,  however,  that any adjustments which by
reason of this  Subsection  (3) are not  required  to be made  shall be  carried
forward and taken into account in any subsequent  adjustment required to be made
hereunder.  All calculations under this Section (f) shall be made to the nearest
cent or to the nearest one-hundredth of a share, as the case may be. Anything in
this Section (f) to the contrary notwithstanding, the Company shall be entitled,
but shall not be  required,  to make such  changes  in the  Exercise  Price,  in
addition to those  required by this Section (f), as it shall  determine,  in its
sole  discretion,  to be advisable in order that any dividend or distribution in
shares of Common Stock, or any subdivision,  reclassification  or combination of
Common  Stock,  hereafter  made by the  Company  shall not result in any Federal
Income tax  liability to the holders of Common Stock or  securities  convertible
into Common Stock (including Warrants).

                  (4)  Irrespective  of any adjustments in the Exercise Price or
the number or kind of shares purchasable upon exercise of this Warrant, Warrants
theretofore  or  thereafter  issued may  continue  to express the same price and
number  and kind of  shares  as are  stated in the  similar  Warrants  initially
issuable pursuant to this Agreement.

         (g)  OFFICER'S  CERTIFICATE.  Whenever  the  Exercise  Price  shall  be
adjusted as required by the  provisions  of the foregoing  Section,  the Company
shall  forthwith file in the custody of its Secretary or an Assistant  Secretary
at its principal  office and with its stock transfer agent, if any, an officer's
certificate  showing the adjusted  Exercise Price determined as herein provided,
setting  forth  in  reasonable  detail  the  facts  requiring  such  adjustment,
including a statement of the number of  additional  shares of Common  Stock,  if
any,  and such other facts as shall be  necessary to show the reason for and the
manner of computing such adjustment.  Each such officer's  certificate  shall be
made  available  at all  reasonable  times for  inspection  by the Holder or any
holder of a Warrant  executed  and  delivered  pursuant  to Section  (a) and the
Company shall,

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forthwith  after each such  adjustment,  mail a copy by  certified  mail of such
certificate to the Holder or any such holder.

         (h)  NOTICES  TO  WARRANT  HOLDERS.  So long as this  Warrant  shall be
outstanding, (i) if the Company shall pay any dividend or make any distributions
upon the  Common  Stock or (ii) if the  Company  shall  offer to the  holders of
Common Stock for  subscription or purchase by them any share of any class or any
other   rights  or  (iii)  if  any  capital   reorganization   of  the  Company,
reclassification of the capital stock of the Company, consolidation or merger of
the Company with or into another corporation,  sale, lease or transfer of all or
substantially  all  of  the  property  and  assets  of the  Company  to  another
corporation, or voluntary or involuntary dissolution,  liquidation or winding up
of the Company  shall  cause to be mailed by  certified  mail to the Holder,  at
least fifteen days prior the date specified in (x) or (y) below, as the case may
be, a notice  containing a brief  description of the proposed action and stating
the date on which (x) a record is to be taken for the purpose of such  dividend,
distribution   or  rights,   or  (y)  such   reclassification,   reorganization,
consolidation, merger, conveyance, lease, dissolution, liquidation or winding up
is to take place and the date, if any is to be fixed, as of which the holders of
Common  Stock  or  other   securities  shall  receive  cash  or  other  property
deliverable  upon  reclassification,   reorganization,   consolidation,  merger,
conveyance, dissolution, liquidation or winding up.

         (i)  RECLASSIFICATION,   REORGANIZATION  OR  MERGER.  In  case  of  any
reclassification,  capital  reorganization or other change of outstanding shares
of Common Stock of the Company, or in case of any consolidation or merger of the
Company with or into another  corporation (other than a merger with a subsidiary
in which  merger the Company is the  continuing  corporation  and which does not
result  in  any  reclassification,  capital  organization  or  other  change  of
outstanding  shares of Common Stock of the class  issuable upon exercise of this
Warrant) or in case of any sale,  lease or conveyance to another  corporation at
the property of the Company as an entirety,  the Company  shall,  as a condition
precedent to such transaction, cause effective provisions to be made so that the
Holder shall have the right  thereafter by  exercising  this Warrant at any time
prior to the  expiration  of the  Warrant,  to  purchase  the kind and amount of
shares  of  stock  and  other  securities  and  property  receivable  upon  such
reclassification,   capital  reorganization  and  other  change,  consolidation,
merger,  sale or  conveyance by a holder of the number of shares of Common stock
which might have been purchased upon exercise of this Warrant  immediately prior
to such reclassification, change, consolidation, merger, sale or conveyance. Any
such provision shall include  provision for adjustments which shall be as nearly
equivalent  as may  be  practicable  to the  adjustments  provided  for in  this
Warrant.  The foregoing  provisions of this Section (i) shall similarly apply to
successive  reclassifications,  capital reorganizations and changes or shares of
Common Stock and to successive consolidations, mergers, sales or conveyances. In
the  event  that  in  connection  with  any  such  capital   reorganization   or
reclassification,  consolidation,  merger, sale or conveyance, additional shares
of Common  Stock  shall be  issued  in  exchange,  conversion,  substitution  or
payment,  in whole or in part,  for a security of the Company  other than Common
Stock,  any such issue shall be

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treated as an issue of Common Stock covered by the  provisions of Subsection (1)
of Section (f) hereof.

(j) REGISTRATION UNDER THE SECURITIES ACT OF 1933.

                  (1)  If the  Company  shall  at any  time  during  the  period
commencing  on the date  that the  Company  is first  subject  to the  reporting
requirements of Section 13 or Section 15 of the Securities Exchange Act of 1934,
as amended (the "Exchange Act") and ending on the fifth anniversary of such date
undertake to file a registration statement under the Securities Act of 1933 (the
"Act")  covering the  securities  of the Company,  the Company  shall advise the
Holder of this  Warrant or of the Warrant  Shares or any then holder of Warrants
or  Warrants  Shares  (such  persons  being  collectively  referred to herein as
"holders")  by written  notice at least four weeks prior to the filing and will,
upon the request of any such holder,  include in any such registration statement
such  information as may be required to permit a public  offering of the Warrant
Shares. The Company shall supply prospectuses and other documents as the holders
may request in order to facilitate  the public sale or other  disposition of the
Warrant Shares,  qualify the Warrant Sales for sale in such states as any holder
reasonably  designates and do any and all acts and things which may be necessary
or  desirable  to enable  such  Holders to  consummate  the public sale or other
disposition of the Warrant Shares, and furnish  indemnification in the manner as
set forth in  Subsection  (3)(C) of this Section (j). Such holders shall furnish
information  and  indemnification  as set  forth in  Subsection  (3)(C)  of this
Section (j),  except that the maximum  amount  which may be recovered  from each
holder  shall be limited to the amount of proceeds  received by such holder from
the sale of the Warrant Shares.

         The obligation of the Company under this Subsection (1) shall not apply
to Warrant  Shares which are eligible for resale  pursuant to the  provisions of
Rule 144(k) under the Act.

                  (2) If holders of a Majority of the Warrant Shares (as defined
in Subsection (4) of this Section (j) below) shall give notice to the Company at
any time during the period commencing six months after the date that the Company
is first  subject to the reporting  requirements  of Section 13 or Section 15 of
the Exchange Act (or such earlier  commencement date as the managing underwriter
of the Company's initial public offering,  if applicable,  shall consent to) and
ending on the filth  anniversary  of such date to the  effect  that such  holder
contemplates  (i) the transfer of all or any part of his or its Warrant  Shares,
or (ii) the exercise and/or conversion of all or any part of his or its Warrants
and  the  transfer  of  all  or  any  part  of the  Warrant  Shares  under  such
circumstances  that a public offering (within the meaning of the Act) of Warrant
Shares will be  involved,  and desires to  register  under the Act the  Warrants
and/or the Warrant Shares,  then the Company shall, within 20 days after receipt
of such notice,  file a registration  statement  pursuant to the Act, to the end
that the Warrant  Shares may be sold under the Act as  promptly  as  practicable
thereafter and the Company will use its best efforts to cause such  registration
to become effective and continue to be effective

<PAGE>

(current)  (including  the taking of such steps as are  necessary  to obtain the
removal of any stop order)  until the holder has advised that all of the Warrant
Shares have been sold;  provided that such holder shall furnish the Company with
appropriate  information  (relating  to  the  intentions  of  such  holders)  in
connection  therewith as the Company shall (reasonably  request in writing.  The
holder may, at its option,  request the  registration of the Warrant Shares in a
registration  statement made by the Company as contemplated by Subsection (1) of
this Section (j) or in connection with a request made pursuant to Subsection (2)
of this Section (j) prior to the acquisition of the Warrant Shares upon exercise
of the  Warrants  and even though the holder has not given notice of exercise of
the Warrants. The holder may thereafter at its option,  exercise the Warrants at
any time or from time to time subsequent to the  effectiveness  under the Act of
the registration statement in which the Warrants Shares were included.

         The  obligation of the Company under this  Subsection (2) is limited to
one registration  and shall not apply to Warrant Shares,  which are eligible for
resale pursuant to the provisions of Rule 144(k) under the Act.

                  (3) The following  provision of this Section (j) shall also be
applicable:

                  (A) Within ten days after  receiving any such notice  pursuant
to  Subsection  (2) of this Section  (j),  the Company  shall give notice to the
other  holders of Warrants  and  Warrant  Shares,  advising  that the Company is
proceeding with a registration statement and offering to include therein Warrant
Shares of such other  holders  provided that they shall furnish the Company with
such  appropriate  information  (relating to the  intentions of such holders) in
connection  therewith  as the  Company  shall  reasonably  request  in  writing.
Following the effective date of registration, the Company shall upon the request
of any owner of Warrants and/or Warrant Shares forthwith supply such a number of
prospectuses  meeting the requirements of the Act, as shall be requested by such
owner to permit such holder to make a public offering of all Warrant Shares from
time to time  offered or sold to such  holder,  provided  that such holder shall
from  time to  time  furnish  the  Company  with  such  appropriate  information
(relating  to the  intentions  of such  holder) in  connection  therewith as the
Company shall request in writing. The Company shall also use its best efforts to
qualify  the  Warrant  Shares  for sale in such  states  as such  states as such
majority holder shall designate.

                  (B) The Company  shall bear the entire cost and expense of any
registration of securities  initiated by it under Subsection (1) of this Section
(j)  notwithstanding  Warrant  Shares subject to this Warrant may be included in
any such  registration.  The  Company  shall also  comply  with one  request for
registration  made by holders of a Majority  of the Warrant  Shares  pursuant to
Subsection  (2) of this Section (j) at its own expense and without charge to any
holder of any Warrants and/or Warrant Shares;  and the Company shall comply with
one additional  request made pursuant to Subsection (2) of this Section (j) (and
not deemed to be pursuant to  Subsection  (1) of this  Section  (j)) at the sole
expense of such holders.  Any holder whose  Warrants  and/or  Warrant Shares are
included in any such registration  statement pursuant to this Section (j)

<PAGE>

shall, however, bear the fees of his own counsel, transfer taxes or underwriting
discounts or  commissions  applicable to the Warrant Shares sold by him pursuant
thereto.

                  (C) The Company  shall  indemnify  and hold harmless each such
holder and each  underwriter,  within the meaning of the Act,  who may  purchase
from or sell for any such holder any Warrants  and/or  Warrants  Shares from and
against any and all losses, claims, damages and liabilities caused by any untrue
statement  or alleged  untrue  statement  of a material  fact  contained  in the
Registration   Statement  or  any   post-effective   amendment  thereto  or  any
registration statement wider the Act or any prospectus included therein required
to be filed or furnished by reason of this Section (j) or caused by any omission
or alleged  omission  to state  therein a material  fact  required  to be stated
therein or  necessary  to make the  statements  therein not  misleading,  except
insofar as such losses,  claims,  damages or liabilities  are caused by any such
untrue  statement  or  omission  or  alleged  omission  based  upon  information
furnished  or required to be  furnished in writing to the Company by such holder
or underwriter  expressly for use therein,  which  indemnification shall include
each person,  if any, who  controls any such  underwriter  within the meaning of
Section 15 of the Act or Section 20(a) of the Exchange Act,  provided,  however,
that the Company will not be liable in any such case to the extent that any such
loss,  claim,  damage  or  liability  arises  out of or is based  upon an untrue
statement or alleged  untrue  statement or omission or alleged  omission made in
said registration statement,  and preliminary prospectus,  said final prospectus
or said amendment or supplement in reliance upon and in conformity  with written
information  furnished by such holder or any other,  specifically for use in the
preparation thereof.

                  (D)  Neither  the  giving of any  notice by any holder nor the
making of any  request  for  prospectuses  shall  impose any upon such holder or
owner making such request any obligation to sell any Warrant Shares, or exercise
any Warrants.

                  (E) The Company shall not permit any securities other than the
Warrant Shares to be included in any  registration  statement  filed pursuant to
Section (j) (2) hereof.

                  (F)  The  Company  shall,  as soon as  practicable  after  the
effective date of the registration statement,  and in any event within 15 months
thereafter,  "make  generally  available  to its security  holders"  (within the
meaning  of Rule 158 under the Act) an  earnings  statement  (which  need not be
audited)  complying  with  Section  11(a) of the Act and covering a period of at
least  12  consecutive  months  beginning  after  the  date of the  registration
statement.

                  (G)  The  Company  shall  delivery  promptly  to  each  holder
participating  in the offering and requesting the  correspondence  and memoranda
described   below  and  the  managing   underwriter,   if  any,  copies  of  all
correspondence between the Securities and Exchange Commission (the "Commission")
and the  Company,  its  counsel  or  auditors  and  all  memoranda  relating  to
discussions  with the  Commission or its staff with respect to the  registration
statement and permit each holder and underwriter to do such investigation,  upon
reasonable advance notice,  with respect to information  contained in or omitted
from

<PAGE>

the  registration  statement  as it deems  reasonably  necessary  to comply with
applicable  securities,  laws or rules of the  NASD.  Such  investigation  shall
include access to books, records and properties and opportunities to discuss the
business of the Company with its officers and independent auditors,  all to such
reasonable  extent and at such reasonable  times and as often as any such holder
shall reasonably request.

                  (H) The  Company  shall enter into an  underwriting  agreement
with the managing  underwriter selected for such underwriting by holders holding
a Majority of the Warrant Shares requested to be included in such  underwriting.
Such agreement shall be satisfactory in form and substance to the Company,  each
holder and such managing  underwriter,  and shall contain such  representations,
warranties and covenants by the Company and such other terms as are  customarily
contained in agreements of that type used by underwriters  for offerings  solely
by selling  security  holders.  The holders shall be parties to any underwriting
agreement relating to an underwritten sale of their Warrant Shares.

<PAGE>

                                  PURCHASE FORM

                                                               Dated ___________

         The  undersigned  hereby  irrevocably  elects to  exercise  the  within
Warrant to the extent of  purchasing  ______________  shares of Common Stock and
hereby makes payment of  ___________________  in payment of the actual  exercise
price thereof.

                     INSTRUCTIONS FOR REGISTRATION OF STOCK

Name________________________________________
(Please typewrite or print in block letters)

Address_____________________________________

Signature___________________________________

                                 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  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.

Date_____________________

Signature_____________________________

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