Document:

INDEMNITY AGREEMENT

     THIS AGREEMENT is made and entered into as of March 11, 2000 by and between
Omni  Nutraceuticals,  Inc.,  a  Utah  corporation  (the  "Corporation"), and R.
Lindsey  Duncan  ("Duncan").

     RECITALS

     WHEREAS,  Duncan has performed a valuable service to the Corporation in his
capacity  as  Chairman  of  the  Board  of  Directors  of  the  Corporation; and

     WHEREAS,  the  stockholders  of  the  Corporation  have adopted bylaws (the
"Bylaws"")  and/or  Articles of Incorporation (the "Articles") providing for the
indemnification  of  the  current  and former directors, officers, employees and
agents  of  the Corporation, including persons who have served or are serving at
the  request  of  the  Corporation in such capacities with other corporations or
enterprises,  as  authorized  by  the  Utah  Corporations  Code, as amended (the
"Code");

     WHEREAS,  the  Articles,  Bylaws  and/or  the  Code, by their non-exclusive
nature,  permit  contracts  between  the  Corporation and its current and former
directors,  officers,  employees  and  others with respect to indemnification of
such  persons;  and

     WHEREAS,  in  recognition  of  his  past  services  as  a  Director  and in
connection  with  the  termination of his Employment Agreement with the Company,
the  Corporation  has  determined  and  agreed to enter into this Agreement with
Duncan.

     NOW,  THEREFORE,  in  consideration  of  the  premises  and  other good and
valuable  consideration,  the  receipt  and  sufficiency  of  which  are  hereby
acknowledged  and  confirmed, the parties hereto, intending to be legally bound,
hereby  agree  as  follows:

     1.     INDEMNITY OF DUNCAN.  The Corporation hereby agrees to hold harmless
and  indemnify  Duncan,  his  spouse,  heirs,  legal representatives, attorneys,
agents  and  assigns  (each  an  "Indemnified  Party")  to  the  fullest  extent
authorized  or permitted by the provisions of the Articles, Bylaws and the Code,
as  the same may be amended from time to time (but, only to the extent that such
amendment permits the Corporation to provide broader indemnification rights than
the  Articles, Bylaws or the Code permitted prior to adoption of such amendment)
from  any  and  all  claims,  liabilities,  losses,  damages,  fines, penalties,
settlements,  costs  and  expenses  (including,  without  limitation, reasonable
attorneys'  and  accountants'  fees  and expenses incurred in the investigation,
defense  or  settlement  of  any  claim),  herein  referred  to  collectively as
"Losses",  incurred  by an Indemnified Party in connection with, attributable to
or  arising  from  Duncan's past services in the capacities set forth in Section
2(a)  hereof  or  such  Indemnified  Party's  services  to  the  Corporation.

     2.     ADDITIONAL  INDEMNITY.  In  addition to and not in limitation of the
indemnification  otherwise  provided  for  herein,  and  subject  only  to  the
exclusions  set forth in Section 3 hereof, the Corporation hereby further agrees
to  hold  harmless  and  indemnify  the  Indemnified  Party:

     (A)     against  any  and all expenses (including attorneys' fees), witness
fees,  damages,  judgments,  fines  and amounts paid in settlement and any other
amounts  that  an  Indemnified Party becomes legally obligated to pay because of
any  claim or claims made against him in connection with any threatened, pending
or completed action, suit or proceeding, whether civil, criminal, arbitrational,
administrative  or  investigative (including an action by or in the right of the
Corporation)  to  which  an  Indemnified  Party is, was or at any time becomes a
party,  or  is  threatened  to  be  made  a party, by reason of the fact that an
Indemnified  Party  was  a director, officer, shareholder, employee, attorney or
agent  of  the  Corporation, was serving or at any time served at the request of
the  Corporation  as a director, officer, employee, attorney or agent of another
corporation,  partnership,  joint venture, trust, employee benefit plan or other
enterprise  (an  "Other  Entity")  or  otherwise  was  acting  on  behalf of the
Corporation  or  any  Other  Entity;

     (C)     against any Losses attributable to or resulting or arising from any
vote  cast  or  written  consent  executed  and  delivered pursuant to any proxy
granted  by  an Indemnified Party in accordance with the  the provisions of that
certain  Agreement  of  even  date  herewith  by and between the Corporation and
Duncan;  and

     (D)     otherwise  to  the  fullest  extent  as  may  be  provided  to  an
Indemnified Party by the Corporation under the non-exclusivity provisions of the
Code  and  the  Bylaws.

     3.     LIMITATIONS  ON  ADDITIONAL  INDEMNITY.  No  indemnity  pursuant  to
Section  1  or  2  hereof  shall  be  paid  by  the  Corporation:

     (A)     on  account  of  any  claim  against  an  Indemnified  Party for an
accounting  of profits made from the purchase or sale by an Indemnified Party of
securities of the Corporation pursuant to the provisions of Section 16(b) of the
Securities  Exchange Act of 1934 and amendments thereto or similar provisions of
any  federal,  state  or  local  statutory  law;  or

     (B)     if  such  indemnification  is not lawful, and in such case, only to
the  extent  such  indemnification  is  not  lawful.

     4.     CONTINUATION  OF  INDEMNITY.  All  agreements and obligations of the
Corporation  contained  herein  shall  continue  so long as an Indemnified Party
shall  be  subject  to  any  possible  claim or threatened, pending or completed
action,  suit  or  proceeding,  whether  civil,  criminal,  arbitrational,
administrative  or  investigative.

     5.     PARTIAL  INDEMNIFICATION.  An  Indemnified  Party  shall be entitled
under  this Agreement to indemnification by the Corporation for a portion of the
expenses  (including  attorneys'  fees), witness fees, damages, judgments, fines
and  amounts  paid in settlement and any other amounts that an Indemnified Party
becomes  legally  obligated  to  pay  in  connection  with  any  action, suit or
proceeding referred to in Section 1 or 2 hereof in the event that an Indemnified
Party  is  not  entitled  hereunder  to  indemnification  for  the  total amount
thereof,  and  the  Corporation  shall  indemnify  an  Indemnified Party for the
maximum  portion  thereof  to  which  an Indemnified Party is lawfully entitled.

     6.     NOTIFICATION  AND DEFENSE OF CLAIM.  Not later than thirty (30) days
after  receipt  by  an  Indemnified  Party  of notice of the commencement of any
action,  suit  or  proceeding, an Indemnified Party will, if indemnity is sought
under  this  Agreement,  notify the Corporation of the commencement thereof; but
the omission so to notify the Corporation will not relieve it from any liability
which  it  may have to an Indemnified Party otherwise than under this Agreement,
or  under  this  Agreement,  except  to  the  extent the Corporation is directly
prejudiced  by  such  failure  to so notify the Corporation. With respect to any
such  action,  suit  or  proceeding:

     (A)     the  Corporation will be entitled to participate therein at its own
expense;

     (B)     except  as  otherwise  provided  below, the Corporation may, at its
option  and  jointly  with  any  other indemnifying party similarly notified and
electing  to  assume  such  defense,  assume  the  defense thereof, with counsel
reasonably  satisfactory  to  an  Indemnified  Party.  After  notice  from  the
Corporation  to  an  Indemnified  Party  of  its  election to assume the defense
thereof,  the  Corporation will not be liable to an Indemnified Party under this
Agreement  for  any  legal  or  other  expenses  subsequently  incurred  by  an
Indemnified  Party  in connection with the defense thereof except for reasonable
costs  of  investigation  or  otherwise as provided below.  An Indemnified Party
shall  have  the  right  to  employ  separate  counsel  in  such action, suit or
proceeding, but the fees and expenses of such counsel incurred after notice from
the Corporation of its assumption of the defense thereof shall be at the expense
of  an  Indemnified Party unless (i) the employment of counsel by an Indemnified
Party  has  been  authorized by the Corporation, (ii) an Indemnified Party shall
have  reasonably  concluded that there may be a conflict of interest between the
Corporation  and  an  Indemnified  Party  in  the conduct of the defense of such
action  or  (iii)  the  Corporation  shall  not  in  fact  have employed counsel
reasonably  satisfactory  to  an Indemnified Party to assume the defense of such
action,  in  each of which cases the fees and expenses of an Indemnified Party's
separate  counsel  shall  be  at the expense of the Corporation. The Indemnified
Party  shall  have  the  right to employ separate counsel for the defense of any
action,  suit  or proceeding brought by or on behalf of the Corporation or as to
which an Indemnified Party shall have made the conclusion provided for in clause
(ii)  above;  and

     (C)     the  Corporation  shall be liable to indemnify an Indemnified Party
under  this  Agreement for any amounts paid in settlement of any action or claim
effected  without his written consent, which shall not be unreasonably withheld,
whether  or  not  an  Indemnified Party is otherwise entitled to indemnification
hereunder.  The  Corporation shall be permitted to settle any action except that
it  shall  not  settle  any action or claim in any manner which would impose any
penalty  or  limitation on an Indemnified Party, or any non-monetary obligation,
without  an  Indemnified Party's written consent, which may be given or withheld
in  an  Indemnified  Party's  sole  and  arbitrary  discretion.

     7.     EXPENSES.  The  Corporation  shall  advance,  prior  to  the  final
disposition  of  any  proceeding,  promptly  following  request  therefor,  all
expenses,  including, but not limited to attorneys fees and expenses incurred by
an  Indemnified  Party  in  connection  with  each  threatened or pending claim,
action,  cause  of  action, suit, investigation, arbitration or other proceeding
upon  receipt of an undertaking by or on behalf of an Indemnified Party to repay
said  amounts  if it shall be determined ultimately that an Indemnified Party is
not  entitled  to  be  indemnified  under  the provisions of this Agreement, the
Articles,  Bylaws  or  the  Code.

     8.     ENFORCEMENT.  Any  right  to  indemnification or advances granted by
this  Agreement  to an Indemnified Party shall be enforceable by or on behalf of
an Indemnified Party in any court of competent jurisdiction if (i) the claim for
indemnification  or advances is denied, in whole or in part, (ii) no disposition
of  such claim is made within thirty (30) days of request therefor, or (iii) the
Corporation  should  fail  to comply with the provisions of Section 7 hereof. an
Indemnified  Party,  in  such  enforcement  action, if successful in whole or in
part,  shall  be  entitled to be paid also the expense of prosecuting his claim.
It  shall  be  a  defense to any action for which a claim for indemnification is
made  under  Section  1  or  2 hereof (other than an action brought to enforce a
claim  for  expenses  pursuant  to  Section 8 hereof, provided that the required
undertaking  has  been tendered to the Corporation) that an Indemnified Party is
not  entitled to indemnification because of the limitations set forth in Section
3  hereof.  Neither  the  failure  of  the  Corporation  (including its Board of
Directors  or  its  stockholders)  to  have  made  a  determination prior to the
commencement  of  such enforcement action that indemnification of an Indemnified
Party  is  proper  in  the  circumstances,  nor  an  actual determination by the
Corporation  (including  its  Board  of Directors or its stockholders) that such
indemnification  is  improper  shall  be  a  defense  to  the action or create a
presumption  that  an Indemnified Party is not entitled to indemnification under
this  Agreement  or  otherwise.

     9.     NON-EXCLUSIVITY  OF  RIGHTS.  The rights conferred on an Indemnified
Party  by  this  Agreement  shall  not  be exclusive of any other right which an
Indemnified  Party may have or hereafter acquire under any statute, provision of
the  Corporation's  Articles  or  Bylaws,  agreement,  vote  of  stockholders or
directors,  or  otherwise,  both as to action in his official capacity and as to
action  in  another  capacity.

     10.     SURVIVAL  OF  RIGHTS.

     (A)     The  rights  of  an  Indemnified  Party  under this Agreement shall
continue  after  an  Indemnified  Party  has  ceased  to be a director, officer,
employee, attorney or agent of the Corporation or to serve at the request of the
Corporation  as  a  director,  officer,  employee, attorney or agent of an Other
Entity shall inure to the benefit of an Indemnified Party's heirs, executors and
administrators  and  assigns.

     (B)     The  Corporation  shall  require  any  successor (whether direct or
indirect,  by  purchase,  merger,  consolidation  or  otherwise)  to  all  or
substantially  all  of  the  business or assets of the Corporation, expressly to
assume  and  agree  to perform this Agreement in the same manner and to the same
extent  that  the Corporation would be required to perform if no such succession
had  taken  place.

     11.     SEPARABILITY.  Each  of  the  provisions  of  this  Agreement  is a
separate  and  distinct  agreement and independent of the others, so that if any
provision  hereof shall be held to be invalid for any reason, such invalidity or
unenforceability  shall  not  affect the validity or enforceability of the other
provisions  hereof.  Furthermore,  if this Agreement shall be invalidated in its
entirety  on  any  ground,  then the Corporation shall nevertheless indemnify an
Indemnified  Party  to  the fullest extent provided by the Articles, Bylaws, the
Code  or  any  other  applicable  law.

     12.     JURISDICTION  AND  VENUE.

     (A)     Each  of  the parties hereto hereby irrevocably and unconditionally
submits,  for  itself  or  himself and its or his property, to the non-exclusive
jurisdiction  of  any  California court or federal court of the United States of
America  sitting  in  the  State of California, and any appellate court from any
thereof,  in  any  action  or  proceeding  arising  out  of  or relating to this
Agreement  or  for  recognition  or enforcement of any judgment, and each of the
parties  hereto hereby irrevocably and unconditionally agrees that all claims in
respect of any such action or proceeding may be heard and determined in any such
state  court or, to the extent permitted by law, in such federal court.  Each of
the parties hereto agrees that a final judgment in any such action 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.  Should any party institute any
action,  suit  or other proceeding arising out of or relating to this Agreement,
the  prevailing  party  shall  be  entitled  to  receive  from  the losing party
reasonable  attorneys'  fees  and  costs incurred in connection therewith, along
with  all  costs of defense, investigation, preparation, experts and collection.

     (B)     Each  of the parties hereto irrevocably and unconditionally waives,
to  the fullest extent it or he may legally and effectively do so, any objection
that  it  or  he  may  now or hereafter have to the laying of venue of any suit,
action  or proceeding arising out of or relating to this Agreement in any of the
courts  referred  to  in  Section 12(a).  Each of the parties hereto irrevocably
waives,  to  the fullest extent permitted by law, the defense of an inconvenient
forum  to  the  maintenance  of  such  action  or  proceeding in any such court.

     (C)     The  parties  further  agree  that  the  mailing  by  certified  or
registered  mail,  return receipt requested, of any process required by any such
court shall constitute valid and lawful service of process against them, without
the  necessity  for  service  by  any  other  means  provided  by  law.

WAIVER  OF  JURY  TRIAL

BECAUSE  DISPUTES  ARISING IN CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE
MOST  QUICKLY  AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND
THE  PARTIES  WISH APPLICABLE LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE
PARTIES  DESIRE  THAT  THEIR  DISPUTES  BE  RESOLVED  BY  A  JUDGE APPLYING SUCH
APPLICABLE  LAWS.  THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF
THE  JUDICIAL  SYSTEM  AND OF ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHT TO
TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING BROUGHT TO ENFORCE OR DEFEND ANY
RIGHTS  OR  REMEDIES  UNDER  THIS  AGREEMENT.

     13.     AMENDMENT AND TERMINATION.  No amendment, modification, termination
or cancellation of this Agreement shall be effective unless in writing signed by
both  parties  hereto.

     14.     IDENTICAL  COUNTERPARTS.  This  Agreement may be executed in one or
more  counterparts,  each  of  which  shall  for all purposes be deemed to be an
original  but  all  of  which  together  shall  constitute  but one and the same
Agreement.  Only one such counterpart need be produced to evidence the existence
of  this  Agreement.

     15.     HEADINGS.  The  headings  of  the  sections  of  this Agreement are
inserted for convenience only and shall not be deemed to constitute part of this
Agreement  or  to  affect  the  construction  hereof.

     16.     NOTICES.  All  notices,  requests, demands and other communications
hereunder  shall  be  in writing and shall be deemed to have been duly given (i)
upon  delivery  if delivered by hand to the party to whom such communication was
directed  or  (ii)  upon  the  third  business  day after the date on which such
communication  was mailed if mailed by certified or registered mail with postage
prepaid,  if to an Indemnified Party, to his most recent address as set forth in
the Corporation's records, and if to the Corporation, to its principal executive
offices,  or  to such other address as may have been furnished to an Indemnified
Party  by  the  Corporation.

     17.     INSURANCE.  For  so  long as this Indemnity Agreement is in effect,
the  Corporation  agrees  to  secure  and  maintain  in  effect a Director's and
Officer's  Liability  Policy  with  a nationally recognized insurer with minimum
annual  limits  of coverage of  five million dollars ($5,000,000.00), so long as
such  policy is available to the Company on commercially reasonable terms.  Such
policy  shall  name Mr. R. Lindsey Duncan and his spouse as additional insureds.

     IN  WITNESS WHEREOF, the parties hereto have executed this Agreement on and
as  of  the  day  and  year  first  above  written.

     OMNI  NUTRACEUTCALS,  INC.

     By: /s/ Klee Irwin

     Name:  Klee Irwin

     Title:  President

     /s/ R. Lindsey Duncan
         R.  Lindsey  DuncanOMNI  NUTRACEUTICALS,  INC.  TERM  SHEET
                                  MARCH  11,  2000

This  term  sheet  sets  forth the principal terms and conditions of pursuant to
which  American  Equities,  LLC,  a California limited liability company and its
assignees  ("American  Equities"  or  "Investor")  will  purchase  from  Omni
Nutraceuticals,  Inc.,  a  Utah  corporation  (the  "Company"), (i) an aggregate
amount  of  $2,000,000  of  its  5%  Convertible  Preferred Stock, Series A (the
"Series  A Preferred Stock"), and (ii) warrants to purchase up to 500,000 shares
of  the  Company's  common  stock.  The  parties  shall amend that certain Stock
Purchase  Agreement,  dated  as of January 24, 2000, by and between the Company,
American Equities, HealthZone.com and Corporate Financial Enterprises, Inc. (the
"Stock  Purchase  Agreement")  to  accomplish  all  of  the  following  terms.

Issuers:     Omni  Nutraceuticals,  Inc.,  a  Utah  corporation (the "Company").

Series A Preferred Stock     1.  The Company will issue 2,000,000 shares
Issuance:                        of its Series  A Preferred  Stock  to American
                                 Equities against receipt by the Company of
                                 $2,000,000 payable in immediately available
                                 funds  wire  transferred  for  deposit  in  the
                                 Company's  account.  The  Series  -A  Preferred
                                 Stock  will  be  convertible  into common stock
                                 ("Common  Stock")  of  the  Company  initially
                                 at  a  conversion  price  equal  to  $1.50  per
                                 share of  Common Stock,  subject  to adjustment
                                 pursuant to  customary anti-dilution provisions
                                 as  described below.  This  shall  replace  the
                                 obligation of  American  Equities  to  purchase
                                 additional securities  of the  Company  as  set
                                 forth in Section 1.1 (d) of the Stock  Purchase
                                 Agreement, the provisions  of  which  shall  be
                                 deleted in their entirety and the remainder of
                                 the  Stock Purchase Agreement shall be amended
                                 to  reflect  the foregoing.

                            2.   The Company shall issue to  American  Equities
                                 a  warrant to purchase  up  to  500,000  shares
                                 of  Common  Stock  at an exercise  price  equal
                                 to  $2.50  per  share.  Such  warrant  shall
                                 contain  customary  anti-dilution  and cashless
                                 exercise provisions;  and  shall have the  same
                                 registration  rights  as the Series A Preferred
                                 Stock.  See  "Company  Warrants"  below:

Exemption:     The  issuance  of the securities to American Equities is intended
               to qualify  for  the  exemption  from  registration  afforded  by
               Section 4(2) and  Regulation D promulgated under the  Securities
               Act  of  1933,  as amended.

<PAGE>
PRINCIPAL  TERMS  OF  THE  SERIES  A  PREFERRED  STOCK:

Dividends:

The  Series  A  Preferred  Stock will accrue cumulative dividends at the rate of
5%  per  annum,  payable  semi-annually  in  arrears  every June 1 and January 1
(pro-rated  for  any  period  in  which  the  Series  A     Preferred  Stock  is
outstanding  for  less  one  semi-annual  period).     Such  payments  shall  be
payable,  out  of funds legally available therefore, if, as and when declared by
the  Board  of Directors, and at     the Company's option, maybe payable in cash
or  in  additional  Series  A  Preferred  Stock,  valued  at  $1.50  per  share.

Conversion:

The  Series  A Preferred Stock will be convertible into Common     Stock, at any
time  and from time to time after six months from the Closing Date, initially at
a  conversion  price equal to $1.50. Such     conversion price shall be adjusted
for  stock  or  other  equity  dividends,  subdivisions,  split  ups  or
reclassifications  of  Common     Stock,  capital  reorganizations,  mergers  or
consolidations,  and  other     similar  events, as well as certain issuances of
equity securities as described below in "Anti-Dilution" (such ratio, as adjusted
and  in     effect  from time to time, is referred to herein' as the "Conversion
Price").

Anti-Dilution:

In  the  event  that  the  Company  issues  any  equity  securities,  including
preferred stock, Common Stock or securities exchangeable for or convertible into
Common Stock, or rights to acquire Common Stock     (in each case other than the
Series  A Preferred Stock or warrants     issued pursuant to this Agreement, any
warrants  and  options  outstanding  on  December  30, 1999, and up to 2,000,000
employee  or     other  options  granted  after  December  30,  1999  under  the
Company's  Long  Term  Stock Incentive Plan, as amended from time to time), at a
price  per  share of Common Stock (assuming immediate conversion     or exercise
of  any  security  convertible into or exchangeable for Common Stock) (the "Sale
Price")  less  than  the  higher  of (i) $1.50,     or (ii) the then fair market
value  of  the  Common  Stock, the Conversion Price with respect to the Series A
Preferred  Stock will be reduced to the lower of (x) such Sale Price, or (y) the
product  of the     old Conversion Price multiplied by a fraction, the numerator
of  which is the number of shares of Common Stock outstanding as of     the date
prior  to  such  sale or issuance, and the denominator of which     shall be the
number  of  shares  of  Common  Stock  (on  a  fully  diluted basis) outstanding
immediately  after such sale or issuance. The     Series A Preferred Stock shall
have  customary  anti-dilution  rights  in     the  event  of  any merger, sale,
recapitalization,  consolidation  or  other     similar  event

LIQUIDATION  PREFERENCE:

In  the  event  of  any liquidation or winding up of the Company, the holders of
Series  A  Preferred  Stock  will  be  entitled to receive, in preference to the
holders  of  any  other series of preferred stock ranking junior to the Series A
Preferred  Stock  and  the  holders of Common Stock (whether now in existence or
created  hereafter),  an     amount  equal  to $0.60 per share, plus accrued and
unpaid  dividends.  Any  liquidation,  dissolution or winding up of the Company,
either  voluntary  or  involuntary,  or  any  sale  or  disposition  of  all  or
substantially  all of its assets (a "Liquidating Event") shall be deemed to be a
liquidation  or  winding  up  for  purposes  of  the  liquidation  preference.

Other  Terms:

BOARD  OF  DIRECTORS:

ALBERT  KASHANI  will  have  the  right  to  nominate and elect one-fifth of the
directors  to  of  the  Board  of  Directors,  rounded  up  to the nearest whole
director. The Company will enter into an indemnity agreement with such director,
and  shall reimburse such director for reasonable expenses incurred in attending
meetings  or  otherwise  on  behalf  of  the  Company.  The  Company's  present
obligation  to use its reasonable best efforts     to amend the Company's bylaws
in  order  to fix the number of directors at six (6) shall be terminated and the
voting  provisions currently set forth in the terms of the outstanding shares of
Series  A  Preferred  Stock  shall  be  amended  accordingly to conform with the
foregoing.

INCENTIVE  STOCK  OPTIONS:

The  director  appointed  by  the  holders of the Series A Preferred Stock shall
receive such compensation as is usually and customarily granted to other outside
directors  of  the Company, but in no event     less than a director's option to
purchase 75,000 shares of Common Stock, at an exercise price of $2.25 per share,
which  shall  be  registered on a Form. S-8 within 30 days following the Closing
Date.  The  option  will  vest  according  to  the  following  schedule:

% of  Options  Awarded     Vesting  Period
-----------------------     ---------------
25%                         Upon  being  awarded

Remaining  75%              In  12  equal  monthly  installments
                            calculated  in  arrears
                            commencing  on  the  first  month
                            after  being  awarded

Voting  Rights:

On  all  matters  not  specifically outlined herein, holders of the Series     A
Preferred  Stock  shall  be entitled to vote together with the Common Stock as a
single  class  on  all  matters submitted to a vote of     the holders of Common
Stock,  as  if such Series A Preferred Stock were converted immediately prior to
such  vote.     Consent  of  a  majority of the holders of outstanding shares of
Series     A  Prefered  Stock,  voting  as  a  single class, will be required to
approve  any  of  the  following:  (i)  any  creation,  authorization,  sale  or
issuance  of any class or series of capital stock ranking senior to the Series A
Preferred Stock with respect to voting, liquidation or     dividend rights, (ii)
any issuance of additional shares of Series A     Preferred Stock, other than in
payment  of  dividends  on  the  Series  A  Preferred Stock, (iii) any merger or
consolidation  where  the  Company  is  not  the  surviving  corporation (unless
provision  is  made  in  such  merger  or consolidation for the issuance to such
holders  of  Series  A  Preferred Stock of securities with substantially similar
rights  privileges  and  preferences  as the Series A Preferred Stock), (iv) any
sale  of all or substantially all of the assets of the Company,     (v) any sale
of  capital  stock  of  any  subsidiary  of  the Company to any affiliate of the
Company,  or  to  any  affiliate  of flee Irwin, (vi) any change in the relative
rights,  privileges  and.  preferences  of  the Series     A Preferred Stock, or
(vii) any spin-off of HealthZone Common     Stock, reverse merger of HealthZone,
or  any  other similar     transaction in connection with HealthZone which would
have  the     effect  of impeding an initial public offering of the common stock
of  HealthZone.  It  is  intended  by  the  parties  that HealthZone will file a
registration  statement  registering  the  initial public offering of its common
stock  in a firm commitment, fully underwritten public     offering when, in the
opinion  of  the board of directors of HealthZone, such offering is appropriate.

REGISTRATION  RIGHTS:

With  respect to the Common Stock into which the Series A Preferred     Stock is
convertible,  holders  of  Series  A  Preferred  Stock  will  receive one demand
registration  beginning  one  year  after  the  Closing  Date     and  unlimited
"piggyback"  registration  rights,  subject  to  reasonable     underwriters'
marketing  limitations.  The  Company shall pay all registration expenses (other
than  commissions  and  selling expenses)     associated with such registration.
The holders of Series A Preferred Stock shall not have the right to exercise any
registration rights so     long as (i) the Common Stock issuable upon conversion
of  the  Series     A  Preferred  Stock  is then registered for resale under the
Securities  Act  of  1933,  as  amended, or (ii) such stock is then eligible for
unrestricted  sale pursuant to Rule 144(k) or its equivalent. The Company shall,
on  or  before  April 25, 2000 (the "Required Filing Date"), file a registration
statement  covering the Common Stock underlying the Series A Preferred Stock and
the  Warrants.  Such registration statement shall be effective on or before June
22,  2000 (the "Required Effective Date"). If, for any reason, such registration
statement  is  not  filed  on  or  before  the Required Filing Date, or declared
effective  on or before the Required Effective Date, the holders of the Series A
Preferred  Stock  and  Warrants shall be entitled to liquidated damages equal to
the  greater  of  (i)  0.067%  of the fair market value of the Common Stock into
which the Series A Preferred Stock is then convertible and the Warrants are then
exercisable  for  each  day  following  the Required Filing Date and/or Required
Effective  Date, or (ii) the product of (x) the number of shares of Common Stock
into  which  the  Series  A  Preferred Stock is convertible and the Warrants are
exercisable  on  the  Required  Filing  Date  or the Required Effective Date (as
applicable), multiplied by the difference between the closing price reported for
the  Common Stock on the Required Effective Date, and the closing price reported
for  the  Common  Stock  on  the  date  such  registration statement is declared
effective  ("Delay  Damages").  The  Company shall pay all registration expenses
(other than commissions and selling expenses) associated with such registration,
and shall keep such registration statement effective and current for a period of
not  less  than  two  .years.  No  other  securities  will  be  included  in the
registration  statement other than the securities described above and securities
subject to outstanding piggyback registration rights without the written consent
of  American  Equities.  American  Equities  and Corporate Financial Enterprises
shall  waive  any  damages  due as a result of the Company's failure to file the
registration  statement  referred  to  in Section 5 of that certain Registration
Rights Agreement, dated January 24, 2000, so long as such registration statement
is  filed  by  the  Required  Filing Date and declared effective by the Required
Effective  Date.

SECURITIES  PURCHASE

The  Series  A  Preferred  Stock,  Warrants  and  HealthZone  Common  Agreement:
Stock  will be issued pursuant to a Securities Purchase Agreement     drafted by
counsel  to  American  Equities  and  acceptable  to  American  Equities and the
Company,  and  their respective counsel. Such     agreement shall contain, among
other  things,  customary  and appropriate representations and warranties of the
Company,     HealthZone  and  American  Equities,  covenants  of  the  Company,
HealthZone  and American Equities reflecting the provisions set forth     herein
and  customary and appropriate conditions of closing; provided, however, no such
conditions  shall include any minimum financial or performance criteria required
to  be  met  by  the  Company.

COMPANY  WARRANTS:

As  described  above,  the  Company  shall issue to American Equities     7-year
warrants  to  purchase  500,000  shares  of  common  stock of the Company, at an
exercise  price  equal  to  $2.50.

Purchase  Price  Allocation:

The  total  purchase price of $2,000,000 shall be allocated and paid as follows:

          Security              Allocation                 Per  Share
Series  A  Preferred  Stock     $1,900,000                   $0.95
Company  Warrants                 $100,000                   $0.10

Expenses:

In  the  event  that (1) the transaction closes or (2) the Company elects     to
terminate  the  negotiations  for  any reason, the Company shall pay to American
Equities the sum of $15,000 to defray transaction costs     incurred by American
Equities.  American  Equities'  counsel will     draft the legal documents. Each
party  will  pay  its  own  legal  fees.

Waivers/Consents:

The  Company and Klee Irwin shall provide to American Equities an     agreement,
satisfactory to American Equities, terminating all rights of the Company and Mr.
Irwin  to "put" or "call" common stock of     HealthZone to the other party, and
an  agreement  terminating  that     certain  Settlement  Agreement, between the
Company  and  Mr.  Irwin.  The  Company  shall  provide  to  American  Equities
satisfactory     evidence  of  the  resignation  of  Mr.  Lindsey  Duncan  as an
officer, director or employee of the Company. In addition, the Company     shall
secure  any  necessary  or  required  consents  of  third  parties  to  the
contemplated  transactions,  including, without limitation, the lender under the
Company's  term  loan,  or  any  other lender who has the     right to cause the
Company to apply the proceeds of the contemplated transaction to debt repayment.

Use  of  Proceeds:

The  Company  shall  apply  the  proceeds  of this financing received by     the
Company  to  fund  working  capital  requirements  of  the Company.  None of the
proceeds shall be used to reduce the balance of the     Company's revolving loan
unless  such  reduction  shall create     borrowing availability under such loan
equal  to  such  reduction.

Lock-Up  Agreement:

Mr. R. Lindsey Duncan and his spouse, Cheryl Wheeler shall have     entered into
an  .Amended and Restated Lock-Up Agreement in the form attached as Exhibit B to
that certain Agreement dated of even     date herewith by and among the Company,
Mr.  Duncan  and  Ms.  Cheryl  Wheeler.

Governing  law:

CALIFORNIA

TARGETED  CLOSING  DATE:

On  or  before  March  3  1,  2000  (the  "Closing  Date").

CONFIDENTIALITY:

Neither  of the parties hereto or their respective affiliates shall make     any
public  disclosure  of  this  document  or  the transactions contemplated hereby
except  with the written approval of the other     party hereto or except as may
be  required  by applicable law or court or administrative order or the rules of
any stock exchange,     NASDAQ or the NASD. All information received by American
Equities  concerning  the Company or HealthZone and their respective businesses,
financial  condition,  prospects  and  affairs (unless already     in the public
domain  through  no  breach  of  any  duty  owed  the  Company or HealthZone) in
connection  with  the  transactions     contemplated  hereby,  shall  be  deemed
confidential proprietary information and may not be used by American Equities or
its     affiliates  or associates except in connection with an evaluation of the
proposed  investment  in  the  Company  and  HealthZone  securities.

LETTER  OF  INTENT:

This  letter  is  a  binding  agreement  of  the  parties.

Agreed  and  Accepted:

OMNI  NUTRACEUTICALS,  INC.,     AMERICAN  EQUITIES,  LLC,
a  Utah  corporation             a  California  limited  liability  company

By: /s/ Klee Irwin               By: /s/ Reid Breitman
        Klee  Irwin,  President          Reid  Breitman,  President

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