Document:

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                                                                 EXHIBIT 4.08

                            STOCK PURCHASE AGREEMENT

                                  BY AND AMONG

                            OMNI NUTRACEUTICALS, INC.
                                       AND
                              HEALTHZONE.COM, INC.

                                       AND

                             AMERICAN EQUITIES, LLC
                                       AND
                      CORPORATE FINANCIAL ENTERPRISES, INC.

                          DATED AS OF JANUARY 24, 2000

================================================================================

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                            STOCK PURCHASE AGREEMENT

       This Stock Purchase Agreement (the "Agreement") is made and entered into
as of January 24, 2000, among Omni Nutraceuticals, Inc., a Utah corporation
("Omni"), HealthZone.com, a California corporation and a wholly owned subsidiary
of Omni ("HealthZone," and, together with Omni, the "Company") and American
Equities, LLC, a California limited liability company ("American Equities") and
Corporate Financial Enterprises, Inc., a Delaware corporation ("CFE") and,
together with American Equities and their respective designees and/or assignees,
the "Investor").

       WHEREAS, Omni desires to sell, and the Investor desires to purchase, on
the terms and conditions of this Agreement, (i) up to 4,500,000 shares of the 5%
Convertible Preferred Stock, Series A of the Company, $0.01 par value (the
"Preferred Stock"), in the form attached hereto as Exhibit A, and (ii) a
seven-year warrant (the "Omni Warrant") to purchase up to 775,000 shares of the
common stock, $0.01 par value, of Omni (the "Omni Common Stock") at an exercise
price of $2.25 per share (together with the Preferred Stock and the Omni
Warrant, the "Omni Securities").

       WHEREAS, HealthZone desires to sell, and the Investor desires to
purchase, on the terms and conditions of this Agreement, (i) 222,222 shares of
the common stock, $0.01 par value, of HealthZone (the "HealthZone Common
Stock"), and (ii) a seven-year warrant (the "HealthZone Warrant," and together
with the Omni Warrant, the "Warrants") to purchase up to 37,000 shares of the
HealthZone Common Stock at an exercise price equal to the lesser of (x) $1.00,
or (y) seventy percent (70%) of the lowest price per share of HealthZone Common
Stock received by HealthZone or Omni in any sale or issuance of HealthZone
Common Stock or other capital stock (as if converted to HealthZone Common Stock)
subsequent to the Closing Date (together with the HealthZone Common Stock, the
"HealthZone Securities," and, together with the Omni Securities, the
"Securities").

       NOW, THEREFORE, for good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the Company and the Investor agrees
as follows:

         SECTION I. SALE AND PURCHASE OF THE SECURITIES; CLOSING.

              1.1    SALE AND PURCHASE OF SECURITIES.

       (a) Subject to the terms and conditions hereof, the Omni agrees to sell
to Investor and Investor agrees to purchase from Omni on the First Tranche
Closing Date (as hereinafter defined), (i) the 3,000,000 shares of Preferred
Stock for a purchase price of $1,900,000, and (ii) the Omni Warrant for a
purchase price of $100,000 (the "First Tranche Omni Securities"), each to be
allocated as between American Equities and CFE as set forth on Schedule 1.1(a)
hereto.

       (b) Subject to the terms and conditions hereof, HealthZone agrees to sell
to Investor and Investor agrees to purchase from HealthZone on the First Tranche
Closing Date, (i) 222,222

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shares of HealthZone Common Stock for a purchase price of $950,000, and (ii) and
the HealthZone Warrant for a purchase price of $50,000, each to be allocated as
between American Equities and CFE as set forth on Schedule 1.1(b) hereto.

       (c)    The aggregate purchase price for the First Tranche Omni Securities
and the HealthZone Securities (the "Purchase Price") shall be Three Million
Dollars ($3,000,000), payable as follows: $2,000,000 payable to Omni by wire
transfer on the First Tranche Closing Date in immediately available funds for
deposit into an account to be designated by Omni (the "Omni Account"), and
$1,000,000 payable to HealthZone by wire transfer on the First Tranche Closing
Date in immediately available funds for deposit into an account of HealthZone to
be designated by Omni.

       (d)    (i) Subject to the conditions set forth in Section 4.2, at any
time on or prior to the date which is 200 days after the First Tranche Closing
Date, by written notice to the Investor from Omni (the "Second Tranche Notice"),
Investor shall purchase at a Closing on a closing date specified in the Second
Tranche Notice (the "Second Tranche Closing Date") an additional 1,500,000
shares of Preferred Stock (the "Second Tranche Securities") for an aggregate
cash purchase price of Two Million Dollars ($2,000,000), payable to Omni by wire
transfer of immediately available funds for deposit in the Omni Account upon
issuance of such Preferred Stock (the "Second Tranche Purchase"), such Second
Tranche Securities to be allocated by written notice to Omni not less than five
(5) Business Days prior to the Second Tranche Closing Date.

              (ii)   Investor shall have the right to cancel the Second Tranche
Purchase upon at least five (5) Business Days prior written notice to Omni (the
"Dispute Notice"), if Investor reasonably determines that Omni has not achieved
the performance targets set forth on Exhibit A for the six month period ending
June 30, 2000 or satisfied the conditions to closing set forth in Section 4.2.

                     (1)    The Dispute Notice will set forth in reasonable
detail the basis on which the Investor has elected to cancel the Second Tranche
Purchase and shall be deemed notice of the Investor's election to assert its
right to arbitration as herein provided. If after a period of ten (10) days
after receipt of the Dispute Notice by Omni (the "Mediation Period") the parties
are unable to resolve their differences, the parties agree to arbitrate their
differences in the City of Los Angeles, California in accordance with the rules
of the American Arbitration Association ("AAA") then obtaining (except to the
extent modified hereby) before a panel of three arbitrators ("the Arbitrators").
Omni shall select one arbitrator and the Investor shall select one arbitrator.
Omni and the Investors shall each make their selection of an arbitrator within
fifteen (15) days after the expiration of the Mediation Period (the "Arbitrator
Selection Period"). The two arbitrators shall select a third arbitrator within
fifteen (15) days after the expiration of the Arbitrator Selection Period and
upon his or her selection, the third arbitrator shall act as the Chair of all
proceedings under the arbitration. In the event the two arbitrators fail to
select the third arbitrator within such fifteen (15) day period, either party
may apply to a California Court of

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general jurisdiction sitting in Los Angeles County to have such Court appoint
such third arbitrator.

                     (2)    With respect to all pre-hearing matters, the
arbitration shall be governed by the California Code of Civil Procedure (the
"CCP") and the parties shall be deemed to have all of the rights and
responsibilities as are provided for therein. In connection therewith, to the
extent permitted by law, the Arbitrators shall be vested with such authority and
discretion as if they were presiding as a California State Court Judge and as if
this were a civil action pending before him. This shall include, inter alia, the
authority to entertain and decide dispositive motions under the CCP; provided,
however, nothing in the foregoing shall entitle the Arbitrators to amend the
express terms of the Agreement and in connection with determining whether Omni
has met the performance targets set forth on Exhibit A, the information in
Omni's Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2000
as filed with Securities and Exchange Commission shall be deemed conclusive
evidence (absent manifest error) as to whether or not Omni has met such
performance targets, unless Omni or its auditor determines that the relevant
information contained in such Form 10-Q is not accurate, or such information is
restated prior to the date of the Arbitral Award.

                     (3)    The losing party shall pay the fees of the
Arbitrators and all reasonable fees in connection with the arbitration.

                     (4)    As soon as Arbitrators have been appointed, the
parties shall have the right to commence and conduct discovery pursuant to all
means available under the CCP. The parties agree that each side will be limited
to three (3) depositions. In addition, each party may depose the other parties'
designated expert(s). The Arbitrators shall have the power to limit discovery
which they deem not to be in compliance with the CCP.

                     (5)    All discovery shall be completed within thirty (30)
days of the appointment of the Arbitrators. The matter shall be set for hearing
on a date as soon as practical but no later than thirty (30) days after the
completion of discovery. The hearing shall be completed as quickly as possible
and in no event later than sixty (60) days after the first day of the hearing.
The Arbitrators' award (the "Arbitral Award") shall be rendered within thirty
(30) days of the completion of the hearing on the merits. Any delays in the
foregoing schedule shall not prejudice the rights of the parties.

                     (6)    The Arbitral Award shall be final and conclusive on
the parties. In the event the Arbitral Award is rendered in favor of Omni, (A)
the Second Tranche Closing will occur within thirty (30) business days after the
delivery of the Arbitral Award to the parties and the Investor shall wire
transfer the $2,000,000 amount of the Second Tranche Purchase in immediately
available funds for deposit in the Omni Account against delivery of certificates
evidencing the Second Tranche Securities, together with interest on the
$2,000,000 purchase price for the Second Tranche Securities computed at the same
rate of interest then being charged Omni under its revolving credit loan with
First Source Financial or other bank lender (but not to exceed 9.5% per annum)
for the period from the Second Tranche Closing Date as originally

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specified in Omni's Second Tranche Notice to the date of such Second Tranche
Closing; (B) the Preferred Shares shall be deemed to have been mandatorily
converted at the prevailing Conversion Price effective on the date of the
Arbitral Award with no further notice required to be given by Omni, and (C) the
receipt of a copy of the Arbitral Award by the Investor shall be deemed to
constitute notice of cashless exercise of the Omni Warrants then outstanding by
the holders thereof.

                     (7)    In the event that one or more of the Arbitrators
named above refuse to act, or become incapable, incompetent or unfit to act
before the hearing on the merits has been completed or before an Arbitral Award
has been entered, a successor arbitrator shall be appointed by agreement of the
parties or by application by either party to a California Court of general
jurisdiction sitting in Los Angeles County.

                     (8)    The Arbitrators shall be governed by the Agreement
and shall apply the substantive law of the State of California in making their
Arbitral Award. Any dispute arising between the parties during the course of the
arbitration concerning the interpretation and enforcement of these arbitration
provisions shall be resolved by the Arbitrators in accordance with the
provisions hereof.

              1.2    CLOSING. The closing of the transactions (the
"Transactions") contemplated by this Agreement (the "Closing"), shall take place
at the offices of CFE, 2224 Main Street, Santa Monica, California 90405, at
10:00 a.m., Pacific Standard time, on January 24, 2000 (the "First Tranche
Closing Date") or at such other place or day as may be mutually acceptable to
the Investor and the Company.

              1.3    DELIVERY; PAYMENT. At the Closing, the Company will deliver
to Investor each of the following (which, together with this Agreement, are
referred to herein as the "Transaction Documents"):

       (a)    certificates representing the Securities purchased by such
Investor, registered in its name;

       (b)    an irrevocable proxy representing not less than 73% of the
outstanding Omni Common Stock as of the First Tranche Closing Date to vote such
shares in favor of an amendment to Omni's Bylaws to increase the number of
directors on Omni's Board of Directors (the "Board") by at least one director,
and to nominate and elect a director (designated by the holders of a majority of
the outstanding shares of Preferred Stock) to the Board to fill the vacancy
created thereby;

       (c)    a duly executed Registration Rights Agreement, dated as of the
date hereof, by and between Omni and the Investors (the "Registration Rights
Agreement");

       (d)    a duly executed Warrant Agreement, dated as of the date hereof, by
and between Omni and the Investors (the "Warrant Agreement");

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       (e)    the duly executed Omni Warrants issued pursuant to the Warrant
Agreement;

       (f)    a duly executed Warrant Agreement, dated as of the date hereof, by
and between HealthZone and the Investors (the "HealthZone Warrant Agreement");

       (g)    a duly executed Consulting Agreement, by and between Omni and
American Equities, LLC, dated as of the date hereof (the "Consulting
Agreement");

       (h)    a duly executed Lock-Up Agreement, by and between Mr. Klee Irwin
and Mr. Lindsey Duncan, dated as of the date hereof;

       (i)    a duly executed Amendment to Articles of Incorporation, setting
forth the rights, preferences and designation of the Preferred Stock;

       (j)    a duly executed Amendment No. 1 to Settlement Agreement, dated as
of the date herof, by and between Omni and Mr. Klee Irwin;

       (k)    a duly executed Articles of Amendment to the Articles of
Incorporation of HealthZone;

       SECTION II. THE COMPANY'S REPRESENTATIONS AND WARRANTIES

       In order to induce Investor to enter into this Agreement and to purchase
the Securities, the Company hereby represents and warrants to Investor as
follows:

              2.1    ORGANIZATION AND QUALIFICATION; SUBSIDIARIES. Each of Omni
and HealthZone is a corporation duly incorporated, validly existing and in good
standing under the laws of the state of its respective jurisdiction of
incorporation, and each has the requisite power and authority and all necessary
governmental approvals to own, lease and operate its properties and to carry on
its business as it is now being conducted. Each of the Company's subsidiaries is
a corporation duly incorporated, validly existing and in good standing under the
laws of its state or country of jurisdiction and has the requisite power and
authority and all necessary governmental approvals to own, lease and operate its
properties and to carry on its business as it is now being conducted. The
Company and each of its subsidiaries is duly qualified or licensed as a foreign
corporation to do business, and is in good standing, in each jurisdiction where
the character of the properties owned, leased or operated by it or the nature of
its business makes such qualification or licensing necessary except where the
failure so to qualify shall not have a material adverse effect on the business
or financial condition of the Company taken as a whole ("Material Adverse
Effect").

              2.2    ARTICLES OF INCORPORATION AND BYLAWS. The Company has
heretofore furnished to Investor a complete and correct copy of the Articles of
Incorporation and bylaws of the Company and each of its subsidiaries as amended
to date. The Articles of Incorporation and bylaws of the Company and each of its
subsidiaries are in full force and effect. As of the date of

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this Agreement, neither the Company nor any of its subsidiaries is in violation
of any of the provisions of their respective Articles of Incorporation or
bylaws.

              2.3    CAPITALIZATION.

       (a)    The authorized capital stock of Omni consists of 50,000,000 shares
of common stock and 5,000,000 shares of preferred stock. As of the date hereof,
(i) 27,273,141 shares of common stock were issued and outstanding, all of which
were validly issued, fully paid and nonassessable, and (ii) no shares of
preferred stock were issued and outstanding (prior to the issuance of the
Preferred Stock pursuant to this Agreement). As of the date hereof, options and
warrants to purchase 5,604,172 shares of common stock have been granted and are
outstanding. Except as set forth in Schedule 2.3(a) or described above or
contemplated hereby, there are, and as of the Closing Date there will be, no
options, warrants or other rights, agreements, arrangements or commitments of
any character relating to the issued or unissued capital stock of Omni or
obligating Omni to issue or sell any shares of capital stock of, or other equity
interests in, Omni. All shares of Omni's capital stock subject to issuance, upon
issuance on the terms and conditions specified in the instruments pursuant to
which they are issuable, will be duly authorized, validly issued, fully paid and
nonassessable. Except as set forth on Schedule 2.3(a) or as contemplated hereby,
there are no shareholder agreements, voting trusts or other agreements relating
to voting or disposition of any shares of Omni's capital stock or granting to
any person or group of persons the right to elect, or to designate or nominate
for election, a director to Omni's board of directors.

       (b)    Upon filing of an amendment to the Articles of Incorporation of
HealthZone, which shall be done within ten days following the Closing Date, the
authorized capital stock of HealthZone shall consist of 20,000,000 shares of
HealthZone Common Stock and 5,000,000 shares of preferred stock. As of the such
date, (i) 2,222,222 shares of HealthZone Common Stock shall be issued and
outstanding (including the shares issued pursuant hereto), all of which shall be
validly issued, fully paid and nonassessable, and (ii) no shares of preferred
stock shall be issued and outstanding. Except as set forth in Schedule 2.3(b),
as of the date hereof, no options or warrants to purchase HealthZone Common
Stock have been granted or are outstanding. Except as set forth on Schedule
2.3(b), and except as described above or contemplated hereby, there are no
options, warrants or other rights, agreements, arrangements or commitments of
any character relating to the issued or unissued capital stock of HealthZone or
obligating HealthZone to issue or sell any shares of capital stock of, or other
equity interests in, HealthZone. All shares of HealthZone's capital stock
subject to issuance, upon issuance on the terms and conditions specified in the
instruments pursuant to which they are issuable, will be duly authorized,
validly issued, fully paid and nonassessable. Except as set forth in Schedule
2.3(b), there are no shareholder agreements, voting trusts or other agreements
relating to voting or disposition of any shares of HealthZone's capital stock or
granting to any person or group of persons the right to elect, or to designate
or nominate for election, a director to HealthZone's board of directors.

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              2.4    AUTHORITY RELATIVE TO THE TRANSACTION AGREEMENTS. The
Company has all necessary corporate power and authority to execute and deliver
the Transaction Documents, to perform its obligations hereunder and thereunder
and to consummate the transactions contemplated thereby (the "Transactions").
The execution and delivery of the Transaction Documents and the consummation by
the Company of the Transactions have been duly and validly authorized by all
necessary corporate action and no other corporate proceedings on the
part of the Company are necessary to authorize the Transaction Documents or to
consummate the Transactions. The Transaction Documents have been duly and
validly executed and delivered by the Company and, assuming the due
authorization, execution and delivery by Investor, constitute legal, valid and
binding obligations of the Company, enforceable against the Company in
accordance with their respective terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws relating to
creditors' rights generally and to general principles of equity.

              2.5    MATERIAL CONTRACTS; NO CONFLICT; REQUIRED FILINGS AND
CONSENTS.

       (a)    The term "Material Contracts" shall mean each agreement, contract
or other instrument (including all amendments thereto) to which the Company is a
party or by which the Company is bound which would require the Company to pay in
excess of $100,000 in the aggregate, or which provides that the Company will
receive more than $100,000 in the aggregate, or which would otherwise obligate
the Company to provide services or products with an aggregate value of in excess
of $100,000.

       (b)    Neither the Company nor, to the knowledge of the Company, any
party other than the Company, is in default in any material respect in the
performance, observance or fulfillment of any of the material obligations,
covenants or conditions contained in any Material Contract to which the Company
is a party. All of the Material Contracts are in full force and effect, and are
the valid, legal and binding obligations of the Company, and, to the Company's
knowledge, all of the other parties thereto.

       (c)    The execution and delivery of this Agreement by the Company does
not, and the performance of this Agreement by the Company will not (i) conflict
with or violate the Articles of Incorporation or bylaws of the Company, (ii)
conflict with or violate in any material respect any foreign or domestic
(federal, state or local) law, statute, ordinance, rule, regulation, permit,
injunction, writ, judgment, decree or order ("Law") applicable to the Company or
by which any asset of the Company is bound or affected, or (iii) materially
conflict with, result in any material breach of or constitute a material default
(or an event that with notice or lapse of time or both would become a material
default) under, or give to others any right of termination, amendment,
acceleration or cancellation of, or require any material payment under, or
result in the creation of a lien, claim, security interest or other charge or
encumbrance on any material asset of the Company pursuant to, any Material
Contract.

       (d)    The execution and delivery of this Agreement by the Company do
not, and the performance of this Agreement by the Company will not, require any
consent, approval,

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authorization or permit of, or filing with or notification to, any United States
(federal, state or local) or foreign government or governmental, regulatory or
administrative authority, agency, commission, board, bureau, court or
instrumentality or arbitrator of any kind ("Governmental Authority"), except (i)
for applicable requirements, if any, of the Securities Act of 1933, as amended
(the "Exchange Act"), the Securities Exchange Act of 1934, as amended (the
"Exchange Act") and state securities laws, and (ii) where failure to obtain such
consents, approvals, authorizations or permits, or to make such filings or
notifications, would not preventconsummation of the Transactions or otherwise
prevent the Company from performing its obligations under this Agreement.

              2.6    FINANCIAL STATEMENTS.

       (a)    Omni has heretofore made available to Investor a true and complete
copy of the unaudited financial statements of Omni contained in its quarterly
report on Form 10-Q for the quarter ended September 30, 1999 (the "September 30
Financials"), and the audited financial statements of the Company contained in
its annual report on Form 10-K for the fiscal year ended December 31, 1998, as
amended (the "1998 Financials," and, together with the September 30 Financials,
the "Financials"). The Financials fairly present, in all material respects, the
financial position and results of operations of Omni as at the respective dates
thereof and for the respective periods indicated therein, subject, in the case
of the financial statements dated as of and for the fiscal period ended
September 30, 1999, to normal recurring year-end adjustments and the absence of
notes.

       (b)    Except as and to the extent set forth on, or reserved against on,
the balance sheet of Omni as of September 30, 1999 contained in the Financials,
Omni has no liability or obligation of any nature (whether accrued, absolute,
contingent, fixed, liquidated, unliquidated or otherwise) as of the date of
execution and delivery of this Agreement that would be required to be reflected
on, or reserved against in, a balance sheet of Omni, or in the notes thereto,
prepared in accordance with generally accepted accounting principles, except for
liabilities or obligations incurred in the ordinary course of business since
September 30, 1999.

       (c)    Except in each case as disclosed in the Financials, the Company is
not indebted to any director or executive officer of the Company (except for
amounts due as normal salaries and bonuses or in reimbursement of ordinary
expenses) and except as disclosed in the Financials no such person is indebted
to the Company.

       (d)    The information contained in all reports or other filings filed by
or on behalf of the Company or its predecessors (including Irwin Naturals 4
Health, Irwin Naturals/4health Inc., or 4 Health, Inc.) with the Securities and
Exchange Commission on or after January 1, 1998, as each may have been amended
prior to the January 21, 2000, is true and correct, and does not contain any
misrepresentation of a material fact, or any omission to state a material fact
which, in light of the circumstances made, was necessary to make the statements
contained in such reports or other filings not misleading.

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       (e)    HealthZone has heretofore made available to Investor a true and
complete copy of the unaudited financial statements of HealthZone as of
September 30, 1999. Such financial statements fairly present, in all material
respects, the financial position and results of operations of HealthZone as at
the respective dates thereof and for the respective periods indicated therein,
subject, in the case of the financial statements dated as of and for the fiscal
period ended September 30, 1999, to normal recurring year-end adjustments and
the absence of notes.

              2.7    ABSENCE OF CERTAIN CHANGES OR EVENTS. Since September 30,
1999, except as contemplated by this Agreement, the Company has conducted its
business only in the ordinary course and in a manner consistent with past
practice and, since such date to the date hereof, there has not been (a) any
material change by the Company in its accounting methods, principles or
practices, (b) any revaluation by the Company of any material asset (including,
without limitation, any writing down of the value of inventory or writing off of
notes or accounts receivable), other than in the ordinary course of business
consistent with past practice, (c) entry by the Company into any commitment or
transaction material to the Company, except in the ordinary course of business
and consistent with past practice, or (d) any agreement by the Company to take
any of the actions described in this Section 2.7 except as expressly
contemplated by this Agreement, other than for such events that would not,
individually or in the aggregate, have a Material Adverse Effect.

              2.8    INTELLECTUAL PROPERTY.

       (a)    INTELLECTUAL PROPERTY ASSETS. The Company is the exclusive owner
of all Intellectual Property Assets, or has the full right to own, use and
exploit such assets, subject to the lien of First Source Financial. The term
"Intellectual Property Assets" includes all of the following which are owned,
used or licensed by the Company and which are material to the conduct of the
Company's business:

              (i)    all trademarks, service marks, trade and trading names,
logos, marketing symbols, fictional business names, and all protective
properties therefor, including trademark and service mark registrations and
applications therefor (collectively, "Marks"); and

              (ii)   all know-how, trade secrets, confidential information,
customer lists, software, technical and business information and data, process
specifications, plans, diagrams, drawings, and blue prints (collectively, "Trade
Secrets");

       (b)    AGREEMENTS. The Company is not obligated to pay royalties or
license fees to any person other than for royalties and license fees which the
Company is obligated to pay in the ordinary course of its business and for
licenses implied by the sale of a product and perpetual paid-up licenses for
commonly available software.

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       (c)    TRADEMARKS.

                  (i) The Company is the owner of all right, title and interest
in and to each of its Marks, free and clear of all encumbrances, subject to the
lien of First Source Financial.

                  (ii) To the Company's knowledge, no Mark is infringed or has
been challenged or threatened in any way. To the Company's knowledge, none of
the Marks used by the Company infringes or is alleged to infringe any trade
name, trademark, or service mark or designation of origin of any third party.

              2.9    LITIGATION. As of the date of this Agreement, except as set
forth in Schedule 2.9 hereto or in the Company's quarterly report on Form 10-Q
for the fiscal quarter ended September 30, 1999, there is no suit, claim,
action, proceeding or investigation pending, or, to the Company's best
knowledge, threatened against the Company.

              2.10   BROKERS. Except as contemplated hereunder, no broker,
finder or investment banker is entitled to any brokerage, finder's or other fee
or commission in connection with the Transactions based upon arrangements made
by or on behalf of the Company.

              2.11   SHARES FULLY PAID, ETC. The shares of Securities to be sold
to Investor pursuant hereto, when issued and paid for pursuant to the terms of
this Agreement and the Warrants, will be duly authorized, validly issued and
outstanding, fully paid and nonassessable and shall be free and clear of all
pledges, liens, encumbrances and restrictions. The common stock issuable upon
conversion of the Preferred Stock and exercise of the Warrants, when issued in
accordance with the terms of thereof, will be duly authorized, validly issued
and outstanding, fully paid, nonassessable and free and clear of all pledges,
liens, encumbrances and restrictions.

              2.12   SHARES OF COMMON STOCK. The outstanding shares of common
stock of the Company are duly authorized, validly issued, fully paid and
non-assessable, and, assuming the accuracy and completeness of the
representations and warranties of the Investors herein, have been issued in full
compliance with the Securities Act, the corporations code of the Company's state
of incorporation and any other applicable blue sky laws.

              2.13   EMPLOYEE BENEFIT PLAN. Each employee benefit plan which
covers employees of the Company has been maintained in compliance in all
material respects with all applicable laws.

              2.14   INSURANCE. The Company is insured with reputable insurers
against such risks and in such amounts as are prudent in accordance with
industry practices. All of the insurance policies, binders or bonds maintained
by the Company (the "Policies") have been maintained in accordance with their
respective terms and will remain in full force and effect after the Closing. The
Company has not received any notice of default with respect to any provision of
any such Policies.

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       SECTION III. REPRESENTATIONS OF THE INVESTOR.

              3.1    INVESTOR REPRESENTS THAT:

              (a)    INVESTMENT INTENT.

              (i)    The Securities being acquired by Investor are being
acquired for investment for Investor's own account and not with the view to, or
for resale in connection with, any distribution or public offering thereof. Such
Investor understands that the Securities have not been registered under the
Securities Act or any state or foreign securities laws (collectively,
"Securities Laws") by reason of their contemplated issuance in transactions
exempt from the registration requirements of the Securities Act pursuant to
Section 4(2) thereof and applicable Securities Laws, and that the reliance of
the Company and others upon these exemptions is predicated in part upon this
representation by Investor. Such Investor further understands that the
Securities may not be transferred or resold and agrees not to transfer or resell
the Securities without (i) registration under the Securities Laws, or (ii) an
exemption from the registration requirements of the Securities Laws.

              (ii)   Each certificate representing Securities shall be endorsed
with the following legend:

       THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED WITH THE
       SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS
       AMENDED, OR REGISTERED OR QUALIFIED UNDER ANY APPLICABLE STATE SECURITIES
       OR BLUE SKY OR FOREIGN SECURITIES LAWS AND MAY NOT BE SOLD OR OTHERWISE
       TRANSFERRED UNLESS REGISTERED UNDER SUCH SECURITIES LAWS OR THE ISSUER
       SHALL HAVE RECEIVED AN OPINION OF COUNSEL THAT REGISTRATION OF SUCH
       SECURITIES UNDER SUCH SECURITIES LAWS IS NOT REQUIRED.

              3.2    LOCATION OF PRINCIPAL OFFICE, ACCESS TO INFORMATION,
ABILITY TO ACCEPT RISK OF INVESTMENT. The state in which Investor's principal
office (or domicile, if such Investor is an individual) is located is
California. Investor acknowledges that the Company has made available to
Investor at a reasonable time prior to the execution of this Agreement the
opportunity to ask questions and receive answers concerning the Company, its
financial condition, business and prospects and the terms and conditions of the
sale of Securities contemplated by this Agreement and to obtain any additional
information (which the Company possesses or can acquire without unreasonable
effort or expense) as may be necessary to verify the accuracy of information
furnished to Investor. Investor (a) is able to bear the loss of its entire
investment in the Securities without any material adverse effect on its
business, operations or prospects, and (b) has such knowledge and experience in
financial and business matters that it is capable of evaluating the merits and
risks of the investment to be made by it pursuant to this Agreement.

                                       11
<PAGE>

              3.3    ACTS AND PROCEEDINGS. This Agreement has been duly
authorized by all necessary action on the part of Investor, has been duty
executed and delivered by Investor, and is a valid and binding agreement of
Investor.

              3.4    ACCREDITED INVESTOR. The Investor is an "accredited
investor" within the meaning of Rule 501 promulgated under the Securities Act.

              3.5    ORGANIZATION AND QUALIFICATION; SUBSIDIARIES. CFE is a
corporation duly incorporated, validly existing and in good standing under the
laws of Delaware, and American Equities is a limited liability company duly
organized, validly existing and in good standing under the laws of California,
and each of them has the requisite power and authority and all necessary
governmental approvals to enter into and perform this Agreement and the
Transaction Documents to which they are parties and to own, lease and operate
its properties and to carry on its business as it is now being conducted. The
Investors have no subsidiaries.

              3.6    ARTICLES OF INCORPORATION AND BYLAWS. The organizing
documents of Investor are in full force and effect. As of the date of this
Agreement, the Investor is not in violation of any of the provisions of its
organizing documents or of any material contract to which either of them is a
party.

              3.7    AUTHORITY RELATIVE TO THE TRANSACTION AGREEMENTS. The
Investor has all necessary legal power and authority to execute and deliver this
Agreement and the Transaction Documents to which they are parties, to perform
its obligations hereunder and to consummate the Transactions. The execution and
delivery of this Agreement and the consummation by the Investor of the
Transactions have been duly and validly authorized by all necessary legal action
and no other proceedings on the part of the Investor are necessary to authorize
this Agreement or to consummate the Transactions. This Agreement and the
Transaction Documents to which they are parties have been duly and validly
executed and delivered by the Investor and, assuming the due authorization,
execution and delivery by the Company, constitutes the legal, valid and binding
obligation of the Investor, enforceable against the Investor in accordance with
its terms, subject to applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws relating to creditors' rights generally and to
general principles of equity.

              3.8    NO CONFLICT. The execution and delivery of this Agreement
and the Transaction Documents to which they are parties by the Investor does
not, and the performance of this Agreement and the Transaction Documents to
which they are parties by the Investor will not (i) conflict with or violate the
organizing documents of the Investor, or (ii) conflict with or violate any Law
applicable to the Investor or by which any asset of the Investor is bound or
affected or (iii) materially conflict with, or result in any material breach or
constitute a material default (or an event that with or without notice or the
passage of time would become a material default) under any material contract to
which Investor is subject or its properties are bound.

                                       12
<PAGE>

              3.9    BROKERS. No broker, finder or investment banker is entitled
to any brokerage, finder's or other fee or commission in connection with the
Transactions based upon arrangements made by or on behalf of the Investor.

              3.10   LITIGATION. As of the date of this Agreement, there is no
suit, claim, action, proceeding or investigation pending, or, to the Investor's
knowledge, threatened, against the Investor which would impede the ability of
the Investor to enter into this Agreement and consummate the transactions
contemplated hereby.

       SECTION IV. CONDITIONS OF INVESTOR'S OBLIGATION

              4.1    FIRST TRANCHE. The obligation to purchase and pay for the
Securities which Investor has agreed to purchase on the First Tranche Closing
Date is subject to the fulfillment prior to or on the First Tranche Closing
Date, of the conditions set forth in this Section 4.1.

       (a)    REPRESENTATIONS AND WARRANTIES. The representations and warranties
of the Company under this Agreement which are qualified as to materiality shall
have been true and correct (as so qualified) when made and shall be true and
correct (as so qualified) at and as of the Closing Date, as if made on and as of
such date. The representations and warranties of the Company under this
Agreement which are not qualified as to materiality shall have been true and
correct in all material respects when made and shall be true and correct in all
material respects at and as of the Closing Date, as if made on and as of such
date.

       (b)    COMPLIANCE WITH AGREEMENT. The Company shall have performed and
complied with all agreements or covenants required by this Agreement to be
performed and complied with by it prior to or as of the Closing Date.

       (c)    INJUNCTIONS, RESTRAINING ORDER OR ADVERSE LITIGATION. No order,
judgment or decree of any court, arbitral tribunal, administrative agency or
other governmental or regulatory authority or agency shall purport to enjoin or
restrain the Investor from acquiring the Securities or the Company from selling
the Securities.

       (d)    APPROVAL OF SCHEDULES. Investor shall have approved the schedules
attached hereto as of the Closing Date.

              4.2    SECOND TRANCHE. Investor's obligation to purchase and pay
for the Second Tranche Securities on the Second Tranche Closing Date is subject
to (i) the fulfillment prior to the Second Tranche Closing Date of the
conditions set forth in Section 4.1 (other than 4.1(d)) as they apply to Omni
alone (exclusive of HealthZone), and any representations and warranties which
are being given as of a specified date will be true and correct as of such date,
(ii) the further conditions set forth in Section 1.1(d), and (iii) that Omni
shall have complied with all of its covenants and obligations under the
Transaction Documents.

                                       13
<PAGE>

       SECTION V. CONDITIONS TO COMPANY'S OBLIGATIONS.

       The obligation to sell the Securities which the Company has agreed to
sell on the Closing Date is subject to the fulfillment prior to or on the
Closing Date of the conditions set forth in this Section 5.

              5.1    REPRESENTATIONS AND WARRANTIES. The representations and
warranties of the Investor under this Agreement shall be true and correct in all
material respects as of the Closing Date with the same effect as though made on
and as of the Closing Date.

              5.2    COMPLIANCE WITH AGREEMENT. The Investor shall have
performed and complied with all agreements or covenants required by this
Agreement to be performed and complied with by it prior to or as of the Closing
Date.

              5.3    INJUNCTIONS, RESTRAINING ORDER OR ADVERSE LITIGATION. No
order, judgment, investigation or decree of any court, arbitral tribunal,
administrative agency or other governmental or regulatory authority or agency
shall purport to enjoin or restrain or impede the Investor from acquiring the
Securities or the Company from selling the Securities.

       SECTION VI. CERTAIN COVENANTS OF THE INVESTOR AND THE COMPANY.

              6.1    APPROVALS, ETC. Subject to the terms and conditions
provided herein, each of the parties hereto agrees to (i) use all reasonable
efforts to take all action and to do all other things necessary, proper or
advisable to consummate and make effective as promptly as practicable the
transactions contemplated by this Agreement; and (ii) use all reasonable efforts
to obtain all necessary or appropriate waivers contemplated by this Agreement.

              6.2    WAIVER OF RIGHT TO NOMINATE AND ELECT DIRECTOR. Investor
hereby waives its right to nominate and elect a director to the Board until the
earlier of (i) the date of the next meeting of shareholders, or (ii) May 15,
2000. Omni shall not be obligated to compensate the director nominated and
elected to the Board by Investor. Omni shall use its reasonable best efforts to
amend its Bylaws to increase the number of directors on the Board to at least
six as soon as reasonably practicable.

              6.3    INFORMATION RIGHTS. So long as the HealthZone Warrant
remains outstanding or Investor beneficially owns HealthZone Common Stock,
HealthZone shall permit Investor, during normal business hours and upon at least
24 hours prior written notice, to inspect the books and records of HealthZone,
and HealthZone shall deliver to Investor quarterly unaudited financial
statements of HealthZone within 45 days after the end of each fiscal quarter and
annual audited financial statements within 90 days after the end of each fiscal
year. This Section 6.3 shall not be applicable at any time during which
HealthZone is subject to the periodic reporting requirements of the Exchange
Act, and timely files all reports required thereunder.

              6.4    HEALTHZONE RIGHT OF FIRST OFFER.

                                       14
<PAGE>

       (a)    Prior to any sale of any securities of HealthZone, including,
without limitation, HealthZone Common Stock, preferred stock, or any securities
exercisable or exchangeable for, or convertible into, HealthZone Common Stock
(an "Issuance"), HealthZone shall, not less than 15 business days prior to such
Issuance, provide to Investor written notice of the proposed financial terms and
conditions of such issuance (the "Sale Notice"). Investor shall have 15 business
days following receipt of the Sale Notice to purchase all or any portion of such
securities upon the financial terms and conditions set forth in such Sale
Notice. In the event Investor shall not purchase all of the securities offered
to them, HealthZone shall have the right to sell up to the amount of securities
offered to Investor in the Sale Notice, upon the same terms, or upon terms more
favorable to HealthZone, for a period of 90 days following the date of the Sale
Notice.

       (b)    In the event that Omni shall determine to transfer, assign, sell
or otherwise distribute any shares of HealthZone Common Stock or any other
security of HealthZone at any time prior to the date which is 180 days following
the effective date of a registration statement registering a fully underwritten
initial public offering of capital stock of HealthZone (other than a sale to
Klee Irwin pursuant to Omni's presently existing "Put" rights or Mr. Irwin's
presently existing "Call" rights each as amended pursuant hereto), then, not
less than 15 business days prior to such transfer, assignment, sale or other
distribution, Omni shall provide to Investor written notice of the proposed
terms and conditions of such transfer, assignment, sale or other
distribution(the "Transfer Notice"). Investor shall have 15 business days
following receipt of the Transfer Notice to purchase all or any portion of such
securities upon the financial terms and conditions set forth in such Transfer
Notice. In the event Investor shall not purchase all of the securities offered
to them, Omni shall then offer such securities to HealthZone upon the same
financial terms and conditions contained in the Transfer Notice. If HealthZone
shall not purchase all of the securities so offered, Omni shall then have the
right to transfer, assign, sell or otherwise distribute such securities to any
third party for a period of 90 days following the date of the Transfer Notice.

              6.5    MODIFICATION OF HEALTHZONE "CALL" AND "PUT" OPTION. Omni
agrees that it shall, on or prior to the Closing Date, enter into an agreement
with Mr. Klee Irwin (i) eliminating Mr. Irwin's right to call the capital stock
of HealthZone from Omni without the consent of the Investors and (ii) making
Omni's right to put it's shares of HealthZone to Mr. Irwin immediately
exercisable, subject to its right to repurchase a portion of such securities
from Mr. Irwin in accordance with that certain letter agreement of even date
herewith between Omni and Mr. Irwin.

              6.6    USE OF PROCEEDS. Promptly upon Closing, Omni shall use the
proceeds of the sale of the Omni Securities to repay an amount equal to
$2,000,000 to the holder of its revolving loan, of which approximately $583,000
shall be applied to the term loan, so long as such payment shall increase the
borrowing availability under such revolving loan by at least 70% of such
payment. Omni shall use the borrowing availability created by such payment to
fund its working capital requirements. HealthZone shall use the proceeds of the
sale of the HealthZone Securities to fund its general working capital
requirements and to develop its business. Upon the consummation, by Investor of
the Second Tranche Purchase, Omni shall use $1,000,000 of the

                                       15
<PAGE>

proceeds thereof to repay Omni's revolving loan (so long as such payment shall
increase the borrowing availability under such revolving loan by at least 90% of
such payment), and shall deliver the balance of such proceeds to HealthZone in
exchange for a promissory note, bearing interest at not more than 7% per annum,
with quarterly interest only payments, and which shall be due and payable on the
earliest to occur of (i) ten days following the date of the effectiveness of a
registration statement filed in connection with an initial public offering of
the capital stock of HealthZone, or (ii) sixty months from the date such
promissory note is issued.

              6.7    COVENANTS AND AGREEMENTS IN CONNECTION WITH HEALTHZONE. In
order to induce Investor to enter into this Agreement, Omni and HealthZone
hereby agree as follows:

       (a)    Omni and HealthZone hereby terminate any and all agreements,
covenants or obligations between them (other than for advances by Omni to
HealthZone up to a maximum amount of $75,000), including those under any tax
sharing and indemnification agreement, any restriction, guarantee or warranty of
HealthZone made to, in favor of, or otherwise benefitting Omni or any of its
officers, directors or affiliates, including without limitation, any
obligations, agreements, covenants or restrictions contained in that certain
Settlement Agreement, made as of October 8, 1999, by and between Omni and Mr.
Klee Irwin (the "Settlement Agreement"), provided however, nothing in the
forgoing shall limit or restrict Mr. Irwin's personal obligations under the
Settlement Agreement, including, without limitation his indemnity agreements and
Omni's "put" right (but not including any restrictions relating to the
operations or management of HealthZone, including the provisions of Exhibit B to
the settlement agreement, or his rights to vote his shares of HealthZone capital
stock, all of which are hereby terminated). Notwithstanding the foregoing, it is
agreed that all directors of HealthZone shall be entitled to equal
indemnification rights, and all officers of HealthZone shall be entitled to
equal indemnification rights.

       (b)    Omni hereby agrees to approve any sale or issuance of equity
securities of HealthZone approved by a majority of the board of directors of
HealthZone, provided the price per equivalent share of common stock of
HealthZone shall be equal to or exceed an amount which would represent a
pre-money valuation of HealthZone of $2,300,000. Nothing herein shall imply that
any such approval of Omni shall be required prior to any such sale or issuance.

       (c)    Unless waived in writing by American Equities, LLC, upon the First
Tranche Closing Date, and thereafter at any time upon the request of American
Equities, LLC, Omni and HealthZone shall, and Omni hereby agrees to vote any
securities of HealthZone which it owns or controls in favor of any action
required to nominate and elect (i) a designee of American Equities, LLC as a
member of the board of directors of HealthZone, and (ii) Mr. Klee Irwin as a
member of the board of directors of HealthZone. Omni and HealthZone agree not to
increase the number of directors on the HealthZone board of directors to a
number greater than three without the prior written consent of American
Equities, LLC. Omni agrees that it shall not take any action which would cause
the removal of (i) any director designated by American Equities, LLC or (ii) Mr.
Klee Irwin from the board of directors of HealthZone.

                                       16
<PAGE>

       (d)    After the First Tranche Closing Date, so long as Omni shall own
50% or more of the common stock of HealthZone on a fully diluted basis,
HealthZone shall not incur any indebtedness for borrowed money (other than
purchase money financing) in excess of $75,000 without the consent of Omni,
which shall not be unreasonably withheld.

              6.8    CHARTER AMENDMENTS. Omni and HealthZone shall file
amendments to their respective Articles of Incorporation as contemplated herein
within 10 days following the Closing Date.

       VII. INDEMNIFICATION; REMEDIES

              7.1    SURVIVAL; RIGHT TO INDEMNIFICATION NOT AFFECTED BY
KNOWLEDGE. All representations, warranties, covenants, and obligations in this
Agreement and any certificate or document delivered pursuant to this Agreement
will survive the Closing and will expire on the second anniversary of the First
Tranche Closing Date. The right to indemnification, payment of Damages or other
remedy based on such representations, warranties, covenants, and obligations
will not be affected by any investigation conducted with respect to, or any
knowledge acquired (or capable of being acquired) at any time, whether before or
after the execution and delivery of this Agreement or the Closing Date, with
respect to the accuracy or inaccuracy of or compliance with, any such
representation, warranty, covenant, or obligation. The waiver of any condition
based on the accuracy of any representation or warranty, or on the performance
of or compliance with any covenant or obligation, will not affect the right to
indemnification, payment of Damages, or other remedy based on such
representations, warranties, covenants, and obligations.

              7.2    INDEMNIFICATION. Each of the parties hereto (as applicable,
the "Indemnifying Party") will indemnify and hold harmless the other party and
its respective representatives, stockholders, controlling persons, and
affiliates (collectively, the "Indemnified Persons") for, and will pay to the
Indemnified Persons the amount of, any loss, liability, claim, damage (including
incidental and consequential damages), expense (including costs of investigation
and defense and reasonable attorneys' fees) or diminution of value, whether or
not involving a third-party claim (collectively, "Damages"), arising, directly
or indirectly, from or in connection with:

       (a)    any breach of any representation or warranty made by the
Indemnifying Party in this Agreement or any other certificate or document
delivered by the Indemnifying Party pursuant to this Agreement;

       (b)    any breach of any representation or warranty made by the
Indemnifying Party in this Agreement as if such representation or warranty were
made on and as of the Closing Date;

       (c)    any breach by the Indemnifying Party of any covenant or obligation
of the Indemnifying Party in this Agreement;

                                       17
<PAGE>

       (d)    any claim by any Person for brokerage or finder's fees or
commissions or similar payments based upon any agreement or understanding
alleged to have been made by any such Person with the Indemnifying Party (or any
person acting on its behalf) in connection with any of the Transactions.

The remedies provided in this Section 7.2 will not be exclusive of or limit any
other remedies that may be available to Investor or the other Indemnified
Persons.

              7.3    PROCEDURE FOR INDEMNIFICATION--THIRD PARTY CLAIMS.

       (a)    Promptly after receipt by an the Indemnified Party under this
Section 7 of notice of the commencement of any action, arbitration, audit,
hearing, investigation, litigation, or suit (whether civil, criminal,
administrative, investigative, or informal) commenced or brought against it (a
"Proceeding"), such the Indemnified Party will, if a claim is to be made against
an the Indemnifying Party under such Section, give notice to the Indemnifying
Party of the commencement of such claim, but the failure to notify the
Indemnifying Party will not relieve the Indemnifying Party of any liability that
it may have to any the Indemnified Party, except to the extent that the
Indemnifying Party demonstrates that the defense of such action is prejudiced by
the Indemnifying Party's failure to give such notice.

       (b)    If any Proceeding referred to in Section 7.3(a) is brought against
an the Indemnified Party and it gives notice to the Indemnifying Party of the
commencement of such Proceeding, the Indemnifying Party will be entitled to
participate in such Proceeding and, to the extent that it wishes (unless (i) the
Indemnifying Party is also a party to such Proceeding and the Indemnified
Party's counsel determines in good faith that joint representation would be
inappropriate, or (ii) the Indemnifying Party fails to provide reasonable
assurance to the Indemnified Party of its financial capacity to defend such
Proceeding and provide indemnification with respect to such Proceeding), to
assume the defense of such Proceeding with counsel reasonably satisfactory to
the Indemnified Party and, after notice from the Indemnifying Party to the
Indemnified Party of its election to assume the defense of such Proceeding, the
Indemnifying Party will not, as long as it diligently conducts such defense, be
liable to the Indemnified Party under this Section 7 for any fees of other
counsel or any other expenses with respect to the defense of such Proceeding, in
each case subsequently incurred by the Indemnified Party in connection with the
defense of such Proceeding, other than reasonable costs of investigation. If the
Indemnifying Party assumes the defense of a Proceeding, (i) it will be
conclusively established for purposes of this Agreement that the claims made in
that Proceeding are within the scope of and subject to indemnification; (ii) no
compromise or settlement of such claims may be effected by the Indemnifying
Party without the Indemnified Party's consent (which shall not be unreasonably
withheld) unless (1) there is no finding or admission of any violation of law,
statute, rule, regulation, order or decree or any violation of the rights of any
person or entity and no effect on any other claims that may be made against the
Indemnified Party, and (2) the sole relief provided is monetary damages that are
paid in full by the Indemnifying Party; and (iii) the Indemnified Party will
have no liability with respect to any compromise or settlement of such claims
effected without its consent. If notice is given to an the

                                       18
<PAGE>

Indemnifying Party of the commencement of any Proceeding and the Indemnifying
Party does not, within ten days after the Indemnified Party's notice is given,
give notice to the Indemnified Party of its election to assume the defense of
such Proceeding, the Indemnifying Party will be bound by any determination made
in such Proceeding or any compromise or settlement effected by the Indemnified
Party.

       (c)    The Indemnifying Party hereby consents to the non-exclusive
jurisdiction of any court in which a Proceeding is brought against any
Indemnified Person for purposes of any claim that an Indemnified Person may have
under this Agreement with respect to such Proceeding or the matters alleged
therein, and agrees that process may be served on the Indemnifying Party with
respect to such a claim anywhere in the world.

              7.4    PROCEDURE FOR INDEMNIFICATION--OTHER CLAIMS. A claim for
indemnification for any matter not involving a third-party claim may be asserted
by notice to the party from whom indemnification is sought.

              7.5    LIMITATION ON INDEMNIFICATION RIGHTS. Notwithstanding
anything in this Section 7 to the contrary, an Indemnifying Party shall not be
required to indemnify any Indemnified Party for any consequential, special or
punitive damages, and its obligation to indemnify the Indemnified Parties shall
be limited to the amount of the aggregate Purchase Price for the Securities. An
Indemnifying Party shall only be required to indemnify any Indemnified Party if
the amount of Damages which such Indemnifying Party is obligated to pay
hereunder exceeds $25,000 individually or in the aggregate

       SECTION VIII. MISCELLANEOUS.

              8.1    NO WAIVERS; CUMULATIVE REMEDIES. No failure or delay on the
part of the Investor in exercising any right, power or remedy hereunder or under
any Transaction Document shall operate as waiver thereof; nor shall any single
or partial exercise of any such right, power or remedy preclude any other or
further exercise thereof or the exercise of any other right, power or remedy
hereunder or thereunder. The remedies herein provided are cumulative and not
exclusive of any remedies provided by law.

              8.2    CHANGES, WAIVERS, ETC. Neither this Agreement nor any
provision hereof may be changed, waived, discharged or terminated orally, but
only by a statement in writing signed by the party against which enforcement of
the change, waiver, discharge or termination is sought.

              8.3    EXPENSES. Each party shall pay its own expenses in
connection with the Transactions contemplated hereby and by the Transaction
Documents, except that Omni shall pay to American Equities the sum of $15,000
upon closing to defray transaction costs incurred by American Equities.

                                       19
<PAGE>

              8.4    NOTICES. All notices, requests, consents and other
communications required or permitted hereunder shall be in writing and shall be
delivered, or mailed first-class postage prepaid, registered or certified mail.

       (a)    if to Investor, addressed to such Investor at its address as shown
on the books of the Company, or at such other address as such holder may specify
by written notice to the Company; or

       (b)    if to the Company, at

              5310 Beethoven Street
              Los Angeles, California 90066
              Telecopier: (310) 306-4840
              Attention: Chief Executive Officer

, or; or at such other address as the Company may specify by written notice to
the Investor.

              8.5    ASSIGNMENT.

       (a)    This Agreement and all of the provisions hereof will be binding
upon and inure to the benefit of the parties hereto and their respective
successors and permitted assigns.

       (b)    Investor may assign its rights under this Agreement to any of its
affiliates only upon receipt of the prior written consent of the Company. Any
such permitted assignee will be required to make the identical representations,
warranties and agreements as made by the Investors herein.

              8.6    SEVERABILITY. Whenever possible, each provision of this
Agreement will be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be prohibited
by or invalid under applicable law, such provision will be ineffective only to
the extent of such prohibition or invalidity, without invalidating the remainder
of such provision or the remaining provisions of this Agreement.

              8.7    ENTIRE AGREEMENT. This Agreement and exhibits and schedules
hereto and the other Transaction Documents contain the entire agreement between
the parties and supersede any prior understandings, agreements or
representations by or between the parties, written or oral, which may have
related to the subject matter hereof in any way.

              8.8    GOVERNING LAW. The internal law, without regard to
conflicts of laws principles, of the State of California shall govern all
questions concerning the construction, validity and interpretation of this
Agreement and the performance of the obligations imposed by this Agreement.

                                       20
<PAGE>

              8.9    COUNTERPARTS. This Agreement may be executed concurrently
in two or more counterparts, each of which shall be deemed an original, but all
of which together shall constitute one and the same instrument.

                            (Signature Pages Follow)

                                       21
<PAGE>

       IN WITNESS WHEREOF, the Company and the Investor have caused this
Agreement to be executed by its duly authorized representative.

THE COMPANY:

OMNI NUTRACEUTICALS, INC.                  HEALTHZONE.COM
a Utah corporation                         a California corporation

By: /s/ Louis Mancini                      By: /s/ Klee Irwin
    ---------------------------------          ------------------------------
    Louis Mancini                              Name: Klee Irwin
    President                                  Title:

INVESTOR:

AMERICAN EQUITIES, LLC                     CORPORATE FINANCIAL ENTERPRISES, INC.
a California limited liability company     a Delaware corporation

By: /s/ Reid Breitman                      By: /s/ Regis Possino
    ---------------------------------          ------------------------------
    Reid Breitman                              Regis Possino
    President                                  President

                                       22
<PAGE>

                                 SCHEDULE 1.1(a)

OMNI PREFERRED STOCK:

1,800,000 shares to American Equities, LLC
1,200,000 shares to Corporate Financial Enterprises, Inc.

OMNI WARRANTS:

405,000 warrants to American Equities, LLC
370,000 warrants to Corporate Financial Enterprises, Inc.

                                 SCHEDULE 1.1(b)

HEALTHZONE COMMON STOCK:

133,333 shares to American Equities, LLC
88,889 shares to Corporate Financial Enterprises, Inc.

HEALTHZONE WARRANTS:

22,200 warrants to American Equities, LLC
14,800 warrants to Corporate Financial Enterprises, Inc.

                                       23
<PAGE>

                                SCHEDULE 2.3(a)

OUTSTANDING OPTIONS                                        4,104,172

OUTSTANDING WARRANTS
Allen & Company                                            Warrants to
                                                           acquire 1,000,000
                                                           shares of common
                                                           stock at $6.00 per
                                                           share, expiring
                                                           2002; Warrants to
                                                           acquire 250,000
                                                           shares of common
                                                           stock at $4.00 per
                                                           share, expiring
                                                           2002.

Michael Driver                                             Warrants to
                                                           acquire 250,000
                                                           shares of common
                                                           stock at $4.00 per
                                                           share; expiring
                                                           December 31, 2005.

COMMITMENTS TO ISSUE ADDITIONAL SHARES AND OPTIONS

Dr. Dean Pasha (European Joint Venture)
         Shares due upon closing                           $700,000 of shares
         Shares issuable upon achieving
           earnings benchmarks                             700,000
         Number of options to acquire shares
           at $3.50 per share                              250,000

Mr. Michael Driver  (consulting services)                  70,000 shares;
                                                           payable 5,000
                                                           shares a quarter
                                                           until December 31,
                                                           2002.

SHAREHOLDERS AND VOTING RIGHTS AGREEMENTS
On October 8, 1999, the Company and Mr. Klee Irwin entered into a settlement
agreement (the "Settlement Agreement') in order to resolve certain mutual
claims that had arisen between the Company and Mr. Irwin. In connection with
the settlement, Mr. Irwin and Omni's chairman R. Lindsey Duncan, who together
own approximately 74% of the outstanding shares of voting capital stock of
Omni, each entered into a five-year voting agreement pursuant to which Mr.
Irwin has agreed to certain stand-still provisions and he and Mr. Duncan have
agreed to vote their respective shares of Omni common stock for their
respective nominees for Class I and II directors and the candidate for Class
III director nominated by the two Class II directors.

                                       24

<PAGE>

                                SCHEDULE 2.3(b)

OUTSTANDING OPTIONS AND WARRANTS OF HealthZone.com

None.

AGREEMENTS RELATING TO THE ISSUED OR UNISSUED SHARES OF HealthZone.com

     On October 8, 1999, the Company and Mr. Klee Irwin entered into a
settlement agreement (the "Settlement Agreement') in order to resolve certain
mutual claims that had arisen between the Company and Mr. Irwin. In
connection with the settlement,

     (a)     The Company granted Mr. Irwin a "call" option on the Company's
             shares of HealthZone for the greater of $2.3 million or
             HealthZone's market value commencing March 31, 2000 if the
             spin-off is not consummated before then.

     (b)     Mr. Irwin granted the Company a "put" option on its shares of
             HealthZone for $2.3 million commencing June 1, 2000 if the
             spin-off is not consummated before then or the Company's shares
             of HealthZone are not sold for at least $2,300,000.

                                       25

<PAGE>

                                 SCHEDULE 2.9
                                  LITIGATION

     On December 23, 1999, a lawsuit was filed against the Company, the
Company's former President and Chief Executive  Officer, Klee Irwin, and the
Company's current President, Louis Mancini, entitled DAVID MANDEL, JEFFREY D.
SEGAL AND GORDON D. BARKER V. OMNI NUTRACEUTICALS, INC., KLEE IRWIN, LOUIS
MANCINI AND DOES 1 THROUGH 50 (Superior Court of the State of California,
County of Los Angeles -- Central District, Case No. BC222263).  The lawsuit
includes various causes of action, including fraud, negligent
misrepresentation, misappropriation of trade secrets, unjust enrichment,
unfair business practices and violations of the Racketeer Influenced and
Corrupt Organizations Act (RICO) (under which triple damages have been
claimed).  The lawsuit is based on various alleged claims, including that the
plaintiffs, the sole shareholders of Health & Vitamin Express ("HVE"), were
fraudulently induced to enter into a merger agreement pursuant to which HVE
became a wholly owned subsidiary of the Company based on false
representations of the defendants.  The lawsuit does not specify the amount
of damages claimed.  The Company believes that the claims made in the lawsuit
are without merit and that it has meritorious defenses to each claim.  The
Company intends to vigorously defend itself against the lawsuit. Pursuant to
the terms of a Settlement Agreement dated October 8, 1999 by and among the
Company and Mr. and Mrs. Irwin, Mr. Irwin agreed to assume the defense of
this lawsuit and has indemnified the Company and its officers, directors and
shareholders from all uninsured liability incurred in connection therewith.

                                       26

<PAGE>

                                   EXHIBIT A
                              PERFORMANCE TARGETS

<TABLE>
<CAPTION>
<S>                                                       <C>
Sales Target for the six months ended June 30, 2000       $23,064,000

Performance Target                                               x 90%
                                                          -----------

                                                          $20,757,600
                                                          -----------
                                                          -----------
</TABLE>

                                       27<PAGE>

                                                              EXHIBIT 4.09

                          REGISTRATION RIGHTS AGREEMENT

            REGISTRATION RIGHTS AGREEMENT, dated as of January 24, 2000, between
Omni Nutraceuticals, Inc., a Utah corporation (together with any successors, the
"Corporation"), and Corporate Financial Enterprises, Inc., a Delaware
corporation ("CFE"), and American Equities, LLC, a California limited liability
company ("AELLC," and, together with CFE, "Investor").

            The Investors own 3,000,000 shares (and may acquire an additional
1,500,000 shares) of the Company's 5% Convertible Preferred Stock, Series A (the
"Preferred Stock"), which are convertible into shares of Common Stock (as
defined) of the Corporation, warrants to purchase up to 775,000 shares of Common
Stock, and up to 782,000 shares of Common Stock to be designated by CFE. The
Corporation and the Investors deem it to be in their respective best interests
to set forth the rights of the Investors in connection with public offerings and
sales of shares of Common Stock and are entering into this Agreement as a
condition to and in connection with the Securities Purchase Agreement (as
defined).

            NOW, THEREFORE, in consideration of the premises and mutual
covenants and obligations hereinafter set forth, the Corporation and the
Investor hereby agree as follows:

SECTION 1.  DEFINITIONS.

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

            (a)         "COMMON STOCK" shall mean the Common Stock, $0.01 par
value per share, of the Corporation.

            (b)         "COMMISSION" shall mean the Securities and Exchange
Commission or any other Federal agency at the time administering the Securities
Act.

            (c)         "PREFERRED STOCK" shall mean the Company's 5%
Convertible Preferred Stock.

            (d)         "EXCHANGE ACT" shall mean the Securities Exchange Act of
1934 or any successor Federal statute, and the rules and regulations of the
Commission promulgated thereunder, all as the same shall be in effect from time
to time.

            (e)         "INFORMATION" has the meaning ascribed thereto in
SECTION 6(i).

            (f)         "INITIAL PUBLIC OFFERING" means the first underwritten
public offering of Common Stock for sale to the public for the account of the
Corporation and offered on a "firm commitment" or "best efforts" basis pursuant
to an offering registered with the Commission under the Securities Act.

            (g)         "INSPECTORS" has the meaning ascribed thereto in
SECTION 6(i).

<PAGE>

            (h)         "INVESTOR" shall mean the Investors or any successor to,
or assignee or transferee of, Investors.

            (i)         "INVESTORS' COUNSEL" has the meaning ascribed thereto in
SECTION 6(b).

            (j)         "MAJORITY INVESTORS" has the meaning ascribed thereto in
SECTION 2(d).

            (k)         "MATERIAL TRANSACTION" means any material transaction in
which the Corporation or any of its Subsidiaries proposes to engage or is
engaged, including a purchase or sale of assets or securities, financing,
merger, consolidation, tender offer or any other transaction that would require
disclosure pursuant to the Exchange Act, and with respect to which the board of
directors of the Corporation reasonably has determined in good faith that
compliance with this Agreement may reasonably be expected to either materially
interfere with the Corporation's or such Subsidiary's ability to consummate such
transaction in a timely fashion or require the Corporation to disclose material,
non-public information prior to such time as it would otherwise be required to
be disclosed.

            (l)         "OTHER SHARES" shall mean at any time those shares of
Common Stock which do not constitute Primary Shares or Registrable Shares.

            (m)         "PERSON" shall be construed as broadly as possible and
shall include, without limitation, an individual, a partnership, an investment
fund, a limited liability company, a corporation, an association, a joint shares
company, a trust, a joint venture, an unincorporated organization and a
governmental entity or any department, agency or political subdivision thereof.

            (n)         "PRIMARY SHARES" shall mean at any time authorized but
unissued shares of Common Stock or shares of Common Stock held by the
Corporation in its treasury.

            (o)         "REGISTRABLE SHARES" shall mean any Restricted Shares or
Warrant Securities.

            (p)         "RESTRICTED SHARES" means, at any time, with respect to
any Investor, shares of Common Stock then owned by such Investor, as well as
shares of Common Stock issued or issuable upon conversion of Preferred Stock,
and includes: (i) Common Stock which may be issued as a dividend or
distribution; (ii) any other securities which by their terms are exercisable or
exchangeable for or convertible into Common Stock issued or issuable upon
conversion of the Preferred Stock; and (iii) any securities received in respect
of, or upon exercise, exchange or conversion of, the foregoing, in each case in
CLAUSES (i) through (iii) which at any time are held by such Investor, or any
transferee of Investor. As to any particular shares of Restricted Shares, such
shares shall cease to be shares of Restricted Shares when: (A) they have been
registered under the Securities Act, the registration statement in connection
therewith has been declared effective and they have been disposed of pursuant to
and in the manner described in such effective registration statement; (B) they
are sold or distributed pursuant to Rule 144 or

                                       2

<PAGE>

may be sold or distributed by the holder thereof pursuant to Rule 144(k); (C)
they have been otherwise transferred and new certificates or other evidences of
ownership for them not bearing a restrictive legend and not subject to any stop
transfer order or other restriction on transfer have been delivered by the
Corporation or the issuer of other securities issued in exchange for the shares
of Restricted Shares; or (D) they have ceased to be outstanding.

            (q)         "REGISTRATION DATE" shall mean the date upon which the
registration statement pursuant to which the Corporation shall have initially
registered shares of Common Stock under the Securities Act for sale to the
public shall have been declared effective.

            (r)         "RULE 144" shall mean Rule 144 promulgated under the
Securities Act or any successor rule thereto or any complementary rule thereto
(such as Rule 144A).

            (s)         "SECURITIES ACT" shall mean the Securities Act of 1933
or any successor Federal statute, and the rules and regulations of the
Commission thereunder, all as the same shall be in effect from time to time.

            (t)         "STOCK PURCHASE AGREEMENT" shall mean the Stock Purchase
Agreement, dated as of the date hereof, between the Corporation and the
Investors (as the same may be amended, restated, supplemented or otherwise
modified from time to time).

            (u)         "SUBSIDIARY" means, with respect to any Person, any
other Person of which the securities having a majority of the ordinary voting
power in electing the board of directors (or other governing body) of such other
Person, at the time as of which any determination is being made, are owned by
such first Person either directly or through one or more of its Subsidiaries.

            (v)         "WARRANT SECURITIES" means the shares of Common Stock
purchasable or purchased from time to time under the warrants issued pursuant to
the Warrant Agreement, dated as of the date hereof, between the Company and the
Investors, or acquirable or acquired upon any transfer of such warrants,
together with all additional securities receivable or received in payment of
dividends or distributions on or splits of those securities or received as a
result of adjustments provided for in said Warrant Agreement.

SECTION 2.  DEMAND REGISTRATION.

            If the Corporation shall, at any time after one year following the
date hereof be requested by the holders of at least 50% of the Restricted Shares
issued and sold by the Corporation pursuant to the Stock Purchase Agreement and
then outstanding (on a Common Stock equivalent basis) to effect a single
registration under the Securities Act of Registrable Shares constituting at
least 25% of the Registrable Securities, the Corporation shall, within 120 days
of such request, effect the registration under the Securities Act of the
Registrable Shares which the Corporation has been so requested to register;
PROVIDED, HOWEVER, that the Corporation shall not be obligated to effect any
registration under the Securities Act except in accordance with the following
provisions:

                                        3

<PAGE>

            (a)         The Corporation may delay the filing or effectiveness of
any registration statement for a period of up to 120 days after the date of a
request for registration pursuant to this SECTION 2 if at the time of such
request (i) the Corporation is engaged, or has fixed plans to engage within 120
days after the date of such request, in a firm commitment underwritten public
offering of Primary Shares in which the holders of Registrable Shares may
include Registrable Shares pursuant to SECTION 3 or (ii) a Material Transaction
exists, PROVIDED that the Corporation may only so delay the filing or
effectiveness of its registration statements (if any) once in any 12-month
period pursuant to this SECTION 2(a).

            (b)         With respect to any registration pursuant to this
SECTION 2, the Corporation may include in such registration any Primary Shares
or Other Shares; PROVIDED, HOWEVER, that, if the managing underwriter advises
the Corporation that the inclusion of all Registrable Shares, Primary Shares and
Other Shares proposed to be included in such registration would interfere with
the successful marketing (including pricing) of the Registrable Shares proposed
to be included in such registration, then the number of Registrable Shares,
Primary Shares and Other Shares proposed to be included in such registration
shall be included in the following order:

                        (i)         FIRST, the Registrable Shares requested to
            be included in such registration (or, if necessary, such Registrable
            Shares PRO RATA among the holders thereof based upon the number of
            Registrable Shares requested to be registered by each such holder);

                        (ii)        SECOND, the Primary Shares; and

                        (iii)       THIRD, the Other Shares.

            (c)         At any time before the registration statement covering
Registrable Shares becomes effective, either Investors holding a majority of the
Registrable Shares requested to be registered (the "MAJORITY INVESTORS") may
request the Corporation to withdraw or not to file the registration statement or
the Corporation may withdraw or not file the registration if in the reasonable
judgement of the Corporation's Board of Directors such withdraw or failure to
file is reasonably required to comply with applicable laws or the interpretation
of the Staff of the Commission or to avoid a substantial liability (other than
expenses of such registration) which would have a material adverse effect on the
Corporation's financial condition; provided, however, that the Corporation shall
refile such registration statement within 180 days of the Corporation's withdraw
or determination not to file. In that event, if such request of withdrawal by
the Majority Investors shall not have been caused by the Corporation or its
financial condition, the holders shall have used their demand registration
rights under this SECTION 2 and the Corporation shall no longer be obligated to
register Registrable Shares pursuant to the exercise of such registration right
pursuant to this SECTION 2 and the expenses incurred by the Corporation through
the date of such request shall be reimbursed. In the event the Corporation shall
withdraw or fail to file the registration statement, the holders shall not have
used their demand registration rights under this SECTION 2 and shall be entitled
to reimbursement of their expenses through the date of such withdrawal or
failure to file. A registration shall not count as

                                        4

<PAGE>

a registration statement initiated pursuant to SECTION 2(a) unless it becomes
effective and the selling holders are able to sell at least 80% of their
Registrable Shares requested to be included in such registration statement, or
except as otherwise provided in this Section 2(c).

            (d)         Notwithstanding anything in Section 2, 3 or 4 provided
to the contrary, the Corporation's obligation to register shares of Common Stock
under the Securities Act hereunder shall be suspended during any time (i) such
shares of Common Stock are registered pursuant to a then effective registration
statement under the Act or (ii) the Registrable Securities become eligible for
sale pursuant to Rule 144(k).

SECTION 3.  PIGGYBACK REGISTRATION.

            If the Corporation at any time proposes for any reason to register
shares of Common Stock under the Securities Act (other than on Form S-4, F-4 or
S-8 promulgated under the Securities Act or any successor forms thereto), it
shall promptly give written notice to the Investor of its intention to so
register such shares and, upon the written request, delivered to the Corporation
within 30 days after delivery of any such notice by the Corporation, of the
Investor to include in such registration Registrable Shares and/or Warrant
Securities (which request shall specify the number of Registrable Shares and/or
Warrant Securities proposed to be included in such registration), the
Corporation shall cause all such Registrable Shares and/or Warrant Securities to
be included in such registration on the same terms and conditions as the
securities otherwise being sold in such registration; PROVIDED, HOWEVER, that,
if the managing underwriter advises the Corporation that the inclusion of all
Registrable Shares and/or Warrant Securities requested to be included in such
registration would interfere with the successful marketing (including pricing)
of the Primary Shares or Other Shares proposed to be registered by the
Corporation, then the number of Primary Shares, Registrable Shares, Warrant
Securities and Other Shares proposed to be included in such registration shall
be included in the following order of priority:

                        (i)         FIRST, the Primary Shares;

                        (ii)        SECOND, the Registrable Shares and Warrant
            Securities requested to be included in such registration (or, if
            necessary, PRO RATA among the holders thereof, based upon the number
            of Registrable Shares and Warrant Securities requested to be
            registered by each such holder); and

                        (iii)       THIRD, the Other Shares.

SECTION 4.  REGISTRATIONS ON FORM S-3.

            Anything contained in SECTION 2 to the contrary notwithstanding, at
such time as the Corporation shall have qualified for the use of Form S-3
promulgated under the Securities Act or any successor form thereto, the Investor
shall have the right to request in writing one registration on Form S-3 (or any
successor form thereto) of Registrable Shares and/or Warrant

                                        5

<PAGE>

Securities within any 12-month period, which request or requests shall: (i)
specify the number of Registrable Shares and/or Warrant Securities intended to
be sold or disposed of and the holders thereof; (ii) state the intended method
of disposition of such Registrable Shares and/or Warrant Securities; and (iii)
relate to Registrable Shares and/or Warrant Securities having an aggregate gross
offering price of at least $500,000. A requested registration in compliance with
this SECTION 4 shall not count as a registration statement initiated pursuant to
SECTION 2, so long as such registration remains current and effective.

SECTION 5.  REQUIRED REGISTRATION.

            The Company shall, within 90 days of the date hereof (the "Required
Filing Date"), file a registration statement covering the Common Stock
underlying the Preferred Stock and the Warrants. Such registration statement
shall be effective within 150 days of the date hereof (the "Required Effective
Date"). If, for any reason, such registration statement is not filed within such
90 day period, or declared effective within such 150 day period, the holders of
the Preferred Stock and Warrants shall be entitled to liquidated damages equal
to 0.067% of the purchase price of the Preferred Stock pursuant to the Stock
Purchase Agreement for each day following the Required Filing Date and/or
Required Effective Date until the 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 the sooner of (i) two years from the date of this Agreement, or (ii) the
date on which all the shares of Common Stock registered under such registration
statement have been disposed or (iii) the date on which such shares of Common
Stock become eligible for sale pursuant to Rule 144(k) or its equivalent. No
other securities will be included in the registration statement other than the
securities described above without the written consent of Investor, other than
the shares of Common Stock described on Exhibit A attached hereto. The Company
shall amend such registration statement to include the Common Stock underlying
any additional shares of Preferred Stock purchased by Investor pursuant to the
Stock Purchase Agreement.

SECTION 6.  PREPARATION AND FILING.

            If, and whenever, the Corporation is under an obligation pursuant to
this Agreement to effect the registration of any Registrable Shares, the
Corporation shall, as expeditiously as practicable:

            (a)         cause a registration statement that registers such
Registrable Shares to become and remain effective for a period of one year or
such earlier period in which all of such Registrable Shares have been disposed
of or become eligible for sale pursuant to Rule 144(k) or its equivalent;

            (b)         furnish, at least five business days before filing a
registration statement that registers such Registrable Shares, a prospectus
relating thereto or any amendments or supplements relating to such a
registration statement or prospectus, to one counsel selected by the Majority
Investors (the "INVESTORS' COUNSEL"), copies of all such documents proposed to
be

                                       6

<PAGE>

filed (it being understood that such five-business-day period need not apply to
successive drafts of the same document proposed to be filed so long as such
successive drafts are supplied to the Investors' Counsel in advance of the
proposed filing by a period of time that is customary and reasonable under the
circumstances);

            (c)         prepare and file with the Commission such amendments and
supplements to such registration statement and the prospectus used in connection
therewith as may be necessary to keep such registration statement effective for
at least a period of one year or such earlier period in which all of such
Registrable Shares have been disposed of or become eligible for sale pursuant to
Rule 144(k) or its equivalent and to comply with the provisions of the
Securities Act with respect to the sale or other disposition of such Registrable
Shares;

            (d)         notify in writing the Investors' Counsel promptly of (i)
the receipt by the Corporation of any notification with respect to any comments
by the Commission with respect to such registration statement or prospectus or
any amendment or supplement thereto or any request by the Commission for the
amending or supplementing thereof or for additional information with respect
thereto, (ii) the receipt by the Corporation of any notification with respect to
the issuance by the Commission of any stop order suspending the effectiveness of
such registration statement or prospectus or any amendment or supplement thereto
or the initiation or threatening of any proceeding for that purpose (and the
Corporation shall use its best efforts to prevent the issuance thereof or, if
issued, to obtain its withdrawal) and (iii) the receipt by the Corporation of
any notification with respect to the suspension of the qualification of such
Registrable Shares for sale in any jurisdiction or the initiation or threatening
of any proceeding for such purposes;

            (e)         register or qualify such Registrable Shares under such
other securities or blue sky laws of such jurisdictions as the Investor
reasonably requests, to keep such registrations or qualifications in effect for
so long as the registration statement covering such Registrable Shares remains
in effect and do any and all other acts and things which may be reasonably
necessary or advisable to enable the Investor to consummate the disposition in
such jurisdictions of the Registrable Shares owned by the Investor; provided,
however, the Corporation shall not be required to qualify to do business in any
such jurisdictions;

            (f)         furnish to the Investor or other holders of such
Registrable Shares such number of copies of a summary prospectus, if any, or
other prospectus, including a preliminary prospectus, in conformity with the
requirements of the Securities Act, and such other documents as such Investor or
holders may reasonably request in order to facilitate the public sale or other
disposition of such Registrable Shares;

            (g)         cause such Registrable Shares to be registered with or
approved by such other governmental agencies or authorities as may be necessary
by virtue of the business and operations of the Corporation to enable the
Investor or other holders of such Registrable Shares to consummate the
disposition of such Registrable Shares;

                                        7

<PAGE>

            (h)         notify on a timely basis the Investor or other holders
of such Registrable Shares at any time when a prospectus relating to such
Registrable Shares is required to be delivered under the Securities Act within
the appropriate period mentioned in SUBSECTION (a) of this SECTION 6, of the
happening of any event as a result of which the prospectus included in such
registration statement, as then in effect, includes an untrue statement of a
material fact or omits to state a material fact required to be stated therein or
necessary to make the statements therein not misleading in light of the
circumstances then existing and, at the request of the Investor or other holders
of Registrable Shares, prepare and furnish to Investor or such other holders a
reasonable number of copies of a supplement to or an amendment of such
prospectus as may be necessary so that, as thereafter delivered to the offerees
of such shares, such prospectus shall not include an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading in light of the
circumstances then existing;

            (i)         make available upon reasonable notice and during normal
business hours, for inspection by the Investor or other holders of such
Registrable Shares any underwriter participating in any disposition pursuant to
such registration statement and any attorney, accountant or other agent retained
by the Investor or underwriter (collectively, the "INSPECTORS"), all pertinent
financial and other records, pertinent corporate documents and properties of the
Corporation (collectively, the "RECORDS"), as shall be reasonably necessary to
enable them to exercise their due diligence responsibility, and cause the
Corporation's officers, directors and employees to supply all information
(together with the Records, the "INFORMATION") reasonably requested by any such
Inspector in connection with such registration statement. Any of the Information
which the Corporation determines in good faith to be confidential, and of which
determination the Inspectors are so notified, shall not be disclosed by the
Inspectors, unless (i) the disclosure of such Information is necessary to avoid
or correct a misstatement or omission in the registration statement, (ii) the
release of such Information is ordered pursuant to a subpoena or other order
from a court of competent jurisdiction, or (iii) such Information has been made
generally available to the public through no breach of any duty owed the
Corporation. The Investors agree that they will, upon learning that disclosure
of such Information is sought in a court of competent jurisdiction, give notice
to the Corporation and allow the Corporation, at the Corporation's expense, to
undertake appropriate action to prevent disclosure of the Information deemed
confidential;

            (j)         use its best efforts to obtain from its independent
certified public accountants "COLD COMFORT" letters in customary form and at
customary times and covering matters of the type customarily covered by cold
comfort letters;

            (k)         use its best efforts to obtain from its counsel an
opinion or opinions in customary form, naming the Investor as an additional
addressee or party who may rely thereon;

            (l)         provide a transfer agent and registrar (which may be the
same entity and which may not be the Corporation) for such Registrable Shares;

                                        8

<PAGE>

            (m)         issue to any underwriter to which the Investor holding
such Registrable Shares may sell shares in such offering certificates evidencing
such Registrable Shares;

            (n)         list such Registrable Shares on any national securities
exchange on which any shares of Common Stock are listed or, if shares of Common
Stock are not listed on a national securities exchange, use its best efforts to
qualify such Registrable Shares for inclusion on the automated quotation system
of the National Association of Securities Dealers, Inc. (the "NASD"), or such
other national securities exchange as the holders of a majority of such
Registrable Shares shall reasonably request and provided that the Corporation
meets the listing criteria of such exchange; and

            (o)         otherwise comply with all applicable rules of the
Commission, and timely file all reports required to be filed pursuant to the
Securities and Exchange Act of 1934, as amended; and

            (p)         use its best efforts to take all other commercially
reasonable steps necessary to effect the registration of such Registrable Shares
contemplated hereby.

            Each holder of Registrable Shares which are being or have been
registered pursuant to this Agreement shall provide to the Corporation, upon the
request of the Corporation, such written information and materials as the
Corporation may reasonably request in order to effect or maintain such
registration. Each holder of Registrable Shares, upon receipt of any notice from
the Corporation of any event of the kind described in SECTION 6(h), shall
forthwith discontinue the disposition of such Registrable Shares pursuant to the
registration statement covering such Registrable Shares until such holder's
receipt of the copies of the supplemented or amended prospectus contemplated by
SECTION 6(h), and, if so directed by the Corporation, such holder shall deliver
to the Corporation all copies, other than permanent file copies then in such
holder's possession, of the prospectus covering such Registrable Shares at the
time of receipt of such notice.

SECTION 7.  EXPENSES.

            All expenses (other than underwriting discounts and commissions
relating to the Registrable Shares, as provided in the last sentence of this
SECTION 7) incurred by the Corporation or any Investor in complying with this
Agreement, including, without limitation, all registration and filing fees
(including all expenses incident to filing with the NYSE, AMEX, NASD and other
domestic or foreign exchanges, as applicable), fees and expenses of complying
with securities and blue sky laws, printing expenses, fees and expenses of the
Corporation's counsel and accountants and fees and expenses of one legal counsel
for the Investors (the "Investors' Counsel"), shall be paid by the Corporation;
PROVIDED, HOWEVER, that all underwriting discounts and selling commissions (but
not non-accountable expense allowances) applicable solely to the Registrable
Shares and Other Shares shall be borne by the holders selling such Registrable
Shares and Other Shares, in proportion to the number of Registrable Shares and
Other Shares sold by each such holder.

                                        9

<PAGE>

SECTION 8.  INDEMNIFICATION.

            (a)         To the extent permitted by law, in connection with any
registration of any Registrable Shares under the Securities Act pursuant to this
Agreement, the Corporation shall indemnify and hold harmless each holder of
Registrable Shares and any other Person acting on behalf of the holders of
Registrable Shares and each other Person, if any, who controls any of the
foregoing Persons within the meaning of the Securities Act against any losses,
claims, damages or liabilities, joint or several (or actions in respect
thereof), to which any of the foregoing Persons may become subject under the
Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon an
untrue statement or allegedly untrue statement of a material fact contained in
the registration statement under which such Registrable Shares were registered
under the Securities Act, any preliminary prospectus or final prospectus
contained therein or otherwise filed with the Commission, any amendment or
supplement thereto or any document incident to registration or qualification of
any Registrable Shares, or arise out of or are based upon the omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading or, with respect to
any prospectus, necessary to make the statements therein in light of the
circumstances under which they were made not misleading, or any violation by the
Corporation of the Securities Act or state securities or blue sky laws
applicable to the Corporation and relating to action or inaction required of the
Corporation in connection with such registration or qualification under such
state securities or blue sky laws; and shall reimburse the holders of
Registrable Shares, such other Person acting on behalf of the holders of
Registrable Shares and each such controlling Person for any legal or other
expenses reasonably incurred by any of them in connection with investigating or
defending any such loss, claim, damage, liability or action; PROVIDED, HOWEVER,
that the Corporation shall not be liable in any such case to the extent that any
such loss, claim, damage, liability or action (including any legal or other
expenses incurred) arises out of or is based upon an untrue statement or
allegedly untrue statement or omission or alleged omission made in said
registration statement, preliminary prospectus, final prospectus, amendment,
supplement or document incident to registration or qualification of any
Registrable Shares in reliance upon and in conformity with written information
furnished to the Corporation through an instrument duly executed by the holders
of Registrable Shares specifically for use in the preparation thereof;

            (b)         To the extent permitted by law, in connection with any
registration of Registrable Shares under the Securities Act pursuant to this
Agreement, each seller of Registrable Shares shall severally and not jointly
indemnify and hold harmless (in the same manner and to the same extent as set
forth in SECTION 8(a)) the Corporation, each director of the Corporation, each
officer of the Corporation who shall sign such registration statement, each
underwriter, broker or other Person acting on behalf of the holders of
Registrable Shares and each Person who controls any of the foregoing Persons
within the meaning of the Securities Act with respect to any statement or
omission from such registration statement, any preliminary prospectus or final
prospectus contained therein or otherwise filed with the Commission, any
amendment or supplement thereto or any document incident to registration or
qualification of any Registrable Shares, if such statement or omission was made
in reliance upon and in

                                       10

<PAGE>

conformity with written information furnished to the Corporation or such
underwriter through an instrument duly executed by such seller specifically for
use in connection with the preparation of such registration statement,
preliminary prospectus, final prospectus, amendment, supplement or document;
PROVIDED, HOWEVER, that the maximum amount of liability in respect of such
indemnification shall be in proportion to and limited to, in the case of each
seller of Registrable Shares, an amount equal to the net proceeds actually
received by such seller (i) from the sale of Registrable Shares effected
pursuant to such registration and (ii) any Delay Damages.

            (c)         Promptly after receipt by an indemnified party of notice
of the commencement of any action involving a claim referred to in SECTIONS 8(a)
and 8(b), such indemnified party will, if a claim in respect thereof is made
against an indemnifying party, give written notice to the latter of the
commencement of such action. In case any such action is brought against an
indemnified party, the indemnifying party will be entitled to participate in and
to assume the defense thereof, jointly with any other indemnifying party
similarly notified to the extent that it may wish, with counsel reasonably
satisfactory to such indemnified party, and after notice from the indemnifying
party to such indemnified party of its election so to assume the defense
thereof, the indemnifying party shall not be responsible for any legal or other
expenses subsequently incurred by the indemnified party in connection with the
defense thereof; PROVIDED, HOWEVER, that, if any indemnified party shall have
reasonably concluded that there may be one or more legal or equitable defenses
available to such indemnified party which are additional to or conflict with
those available to the indemnifying party, or that such claim or litigation
involves or could have an effect upon matters beyond the scope of the indemnity
agreement provided in this SECTION 8, then the indemnifying party shall not have
the right to assume the defense of such action on behalf of such indemnified
party and such indemnifying party shall reimburse such indemnified party and any
Person controlling such indemnified party for that portion of the fees and
expenses of any counsel retained by the indemnified party which is reasonably
related to the matters covered by the indemnity agreement provided in this
SECTION 8. The indemnifying party shall not be liable to indemnify any
indemnified party for any settlement of any claim or action effected without the
consent of the indemnifying party, which consent may not be unreasonably
withheld. The indemnifying party may not settle any claim or action brought
against an indemnified party unless such indemnified party is released from all
and any liability as part of such settlement.

            (d)         If the indemnification provided for in this SECTION 8 is
held by a court of competent jurisdiction to be unavailable to an indemnified
party with respect to any loss, claim, damage, liability or action referred to
herein, then the indemnifying party, in lieu of indemnifying such indemnified
party hereunder, shall contribute to the amounts paid or payable by such
indemnified party as a result of such loss, claim, damage, liability or action
in such proportion as is appropriate to reflect the relative fault of the
indemnifying party on the one hand and of the indemnified party on the other in
connection with the statements or omissions which resulted in such loss, claim,
damage, liability or action as well as any other relevant equitable
considerations; PROVIDED, HOWEVER, that, if the circumstances described in
either proviso of SECTION 8(a) apply to the indemnified party, then the
indemnifying party shall not be obligated to contribute with respect to such
loss, claim, damage, liability or action to the extent set forth in

                                       11

<PAGE>

such proviso. The relative fault of the indemnifying party and of the
indemnified party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by the indemnifying party or by the indemnified party and the parties'
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.

            (e)         The Corporation and the sellers of Registrable Shares
agree that it would not be just and equitable if contribution pursuant to
SECTION 8(d) were determined by PRO RATA allocation (even if the holders and any
underwriters were treated as one entity for such purpose) or by any other method
of allocation that does not take account of the equitable considerations
referred to in SECTIONS 8(c) and 8(c). The amount paid or payable by an
indemnified party as a result of the losses, claims, damages and liabilities
referred to in SUBSECTION (d) of this SECTION 8 shall be deemed to include,
subject to the limitations set forth above, any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating
or defending any such action or claim.

SECTION 9.  UNDERWRITING AGREEMENT.

            Notwithstanding the provisions of SECTIONS 5, 6, 7 and 8, to the
extent that the sellers of Registrable Shares shall enter into an underwriting
or similar agreement, which agreement contains provisions covering one or more
issues addressed in such Sections, the provisions contained in such agreement
addressing such issue or issues shall control; PROVIDED, HOWEVER, that any such
agreement to which the Corporation is not a party shall not be binding upon the
Corporation.

SECTION 10. OBLIGATIONS OF THE INVESTORS.

            (a)         Each seller of Registrable Shares shall furnish to the
Corporation such written information regarding such seller and the distribution
proposed by the sellers as the Corporation may reasonably request in writing and
as shall be reasonably required in connection with any registration,
qualification or compliance referred to in this Agreement.

            (b)         Each Investor by such Investor's acceptance of the
Registrable Securities agrees to cooperate with the Company as reasonably
requested by the Company in connection with the preparation and filing of the
Registration Statement(s) hereunder, unless such Investor has notified the
Company in writing of such Investor's election to exclude all of such Investor's
Registrable Securities from the Registration Statement, thereby waiving its
rights to have its Registrable Securities registered thereunder.

            (c)         In the event Investors holding a majority of the
Registrable Securities being registered determine to engage the services of an
underwriter, each Investor agrees to enter into and perform such Investor's
obligations under an underwriting agreement, in usual and customary form,
including, without limitation, customary indemnification and contribution

                                       12

<PAGE>

obligations, with the managing underwriter of such offering and take such other
actions as are reasonably required in order to expedite or facilitate the
disposition of the Registrable Securities, unless such Investor notifies the
Company in writing of such Investor's election to exclude all of such Investor's
Registrable Securities from the Registration Statement(s), thereby waiving its
rights to have its Registrable Securities registered thereunder.

            (d)         Each Investor agrees that, upon receipt of any notice
from the Company of the happening of any event of the kind described in
Section 6(h), such Investor will immediately discontinue disposition of
Registrable Securities pursuant to the Registration Statement(s) covering such
Registrable Securities until such Investor's receipt of the copies of the
supplemented or amended prospectus contemplated by Section 6(h) and, if so
directed by the Company, such Investor shall deliver to the Company (at the
expense of the Company) all copies in such Investor's possession of the
prospectus covering such Registrable Securities current at the time of receipt
of such notice.

            (e)         No Investor may participate in any underwritten
registration hereunder unless such Investor (i) agrees to sell such Investor's
Registrable Securities on the basis provided in any underwriting arrangements
relating to such underwritten registration, (ii) completes and executes all
reasonable questionnaires, powers of attorney, indemnities, lock-up agreements
for periods up to 180 days, underwriting agreements and other documents
reasonably required under the terms of such underwriting arrangements, and (iii)
agrees to pay its pro rata share of all underwriting discounts and commissions.

SECTION 11. EXCHANGE ACT COMPLIANCE.

            From the Registration Date or such earlier date as a registration
statement filed by the Corporation pursuant to the Securities Act relating to
any class of the Corporation's securities shall have become effective, the
Corporation shall comply with all of the reporting requirements of the Exchange
Act applicable to it (whether or not it shall be required to do so) and shall
comply with all other public information reporting requirements of the
Commission which are conditions to the availability of Rule 144 for the sale of
the Common Shares. The Corporation shall cooperate with the Investor in
supplying such information as may be necessary for the Investor to complete and
file any information reporting forms presently or hereafter required by the
Commission as a condition to the availability of Rule 144.

SECTION 12. MERGERS, ETC.

            The Corporation shall not, directly or indirectly, enter into any
merger, consolidation or reorganization in which the Corporation shall not be
the surviving corporation unless the surviving corporation shall, prior to such
merger, consolidation or reorganization, agree in writing to assume the
obligations of the Corporation under this Agreement, and for that purpose
references hereunder to "Registrable Shares" shall be deemed to include the
common stock, if any, that holders of Registrable Shares would be entitled to
receive in exchange for Common Stock under any such merger, consolidation or
reorganization; PROVIDED, HOWEVER, that,

                                       13

<PAGE>

to the extent holders of Registrable Shares receive securities that are by their
terms convertible into common stock of the issuer thereof, then only such shares
of common stock as are issued or issuable upon conversion of said convertible
securities shall be included within the definition of "Registrable Shares."

SECTION 13. NEW CERTIFICATES.

            As expeditiously as possible after the effectiveness of any
registration statement filed pursuant to this Agreement, the Corporation will
deliver in exchange for any legended certificate evidencing Restricted Shares so
registered, new stock certificates not bearing any restrictive legends, PROVIDED
that, in the event less than all of the Restricted Shares evidenced by such
legended certificate are registered, the holder thereof agrees that a new
certificate evidencing such unregistered shares will be issued bearing the
appropriate restrictive legend.

SECTION 14. NO CONFLICT OF RIGHTS.

            The Corporation represents and warrants to the Investor that the
registration rights granted to the Investor hereby do not conflict with any
other registration rights granted by the Corporation. The Corporation shall not,
after the date hereof, grant any registration rights which conflict with or
impair the registration rights granted hereby.

SECTION 15. TERMINATION.

            This Agreement shall terminate and be of no further force or effect
on the date on which all the Registrable Shares have been registered under the
Securities Act and have been disposed or have become eligible for sale under
Rule 144(k) or its equivalent.

SECTION 16. SUCCESSORS AND ASSIGNS.

            This Agreement shall bind and inure to the benefit of the
Corporation and the Investor and, subject to SECTION 17, the respective
successors and assigns of the Corporation and the Investor.

SECTION 17. ASSIGNMENT.

            Investor may assign its rights hereunder to any purchaser or
transferee of Registrable Shares, whereupon such purchaser or transferee shall
have the benefits of, and shall be subject to the restrictions contained in,
this Agreement as if such purchaser or transferee was originally included in the
definition of "Investor" herein and had originally been a party hereto. Within a
reasonable time following such assignment, the assignee shall provide to the
Corporation a written notice of the name and address of such transferee or
assignee, and such other information as the Corporation may reasonably request.

                                       14

<PAGE>

SECTION 18. SEVERABILITY.

            It is the desire and intent of the parties hereto that the
provisions of this Agreement be enforced to the fullest extent permissible under
the laws and public policies applied in each jurisdiction in which enforcement
is sought. Accordingly, if any particular provision of this Agreement shall be
adjudicated by a court of competent jurisdiction to be invalid, prohibited or
unenforceable for any reason, such provision, as to such jurisdiction, shall be
ineffective, without invalidating the remaining provisions of this Agreement or
affecting the validity or enforceability of this Agreement or affecting the
validity or enforceability of such provision in any other jurisdiction.
Notwithstanding the foregoing, if such provision could be more narrowly drawn so
as not to be invalid, prohibited or unenforceable in such jurisdiction, it
shall, as to such jurisdiction, be so narrowly drawn, without invalidating the
remaining provisions of this Agreement or affecting the validity or
enforceability of such provision in any other jurisdiction.

SECTION 19. ENTIRE AGREEMENT.

            This Agreement and the other writings referred to therein or
delivered pursuant thereto, contain the entire agreement among the parties with
respect to the subject matter hereof and supersede all prior and contemporaneous
arrangements or understandings with respect thereto.

SECTION 20. NOTICES.

            All notices, requests, demands, claims, and other communications
hereunder shall be in writing and shall be deemed to have been duly given if
delivered personally, telecopied, sent by internationally-recognized overnight
courier or mailed by registered or certified mail (return receipt requested),
postage prepaid, to the parties at the following addresses (or at such other
address for a party as shall be specified by like notice):

                        (i)         If to the Corporation, to:

                                    Omni Nutraceuticals, Inc.
                                    5310 Beethoven Street
                                    Los Angeles, California 90066
                                    Telecopier: (310) 306-4840
                                    Attention: Chief Executive Officer

                        (ii)        If to Investor, to:

                                    Corporate Financial Enterprises, Inc.
                                    2224 Main Street
                                    Santa Monica, California 90405
                                    Telecopy: (310) 581-6806

                                       15

<PAGE>

                                    And:

                                    American Equities, LLC
                                    3172 Abington Drive
                                    Beverly Hills, California 90210
                                    Telecopy: (310) 785-0040

            All such notices and other communications shall be deemed to have
been given and received (a) in the case of personal delivery or delivery by
telecopy, on the date of such delivery, (b) in the case of delivery by
internationally-recognized overnight courier, on the first business day
following such dispatch and (c) in the case of mailing, on the third business
day following such mailing.

SECTION 21. MODIFICATIONS; AMENDMENTS; WAIVERS.

            The terms and provisions of this Agreement may not be modified or
amended, nor may any provision be waived, except pursuant to a writing signed by
the Corporation and the holders of at least a majority of the Registrable Shares
then outstanding; PROVIDED, HOWEVER, that no such modification, amendment or
waiver that would treat any holder of Registrable Shares then outstanding in a
non-ratable, discriminatory manner shall be made without the prior written
consent of such holder. The failure of any party to enforce any of the
provisions of this Agreement shall in no way be construed as a waiver of such
provisions and shall not affect the right of such party thereafter to enforce
each and every provision of this Agreement in accordance with its terms.

SECTION 22. COUNTERPARTS; FACSIMILE SIGNATURES.

            This Agreement may be executed in any number of counterparts, and
each such counterpart hereof shall be deemed to be an original instrument, but
all such counterparts together shall constitute but one agreement. A facsimile
counterpart signature to this Agreement shall be acceptable if the originally
executed counterpart is delivered within a reasonable period thereafter.

SECTION 23. HEADINGS.

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

SECTION 24. GOVERNING LAW.

            This Agreement will be governed by and construed in accordance with
the domestic laws of the State of California, without giving effect to any
choice of law or conflicting provision or rule.

                                       16

<PAGE>

SECTION 25. 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 California 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
the Agreement in any of the courts referred to in SECTION 25(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.

SECTION 26. 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 OR ANY DOCUMENTS
RELATED HERETO.

                                    * * * * *

                                       17

<PAGE>

            IN WITNESS WHEREOF, the parties hereto have executed this
Registration Rights Agreement as of the date first written above.

                                    Omni Nutraceuticals, Inc.

                                    By: /s/ Louis Mancini
                                        ------------------------------
                                        Louis Mancini
                                        Chief Executive Officer

                                    American Equities, LLC

                                    By: /s/ Reid Breitman
                                        ------------------------------
                                        Reid Breitman
                                        President

                                    Corporate Financial Enterprises, Inc.

                                    By: /s/ Regis Possino
                                        ------------------------------
                                        Regis Possino
                                        President

                                       18

<PAGE>

                                    EXHIBIT A

                         SHARES OF COMMON STOCK OF OMNI
                      NUTRACEUTICALS, INC. TO BE REGISTERED

1.   All common shares owned by Klee and Margareth Irwin.

2.   25,000 shares issued to Joe Theisman.

3.   $700,000 of shares to be issued to Dr. Dean Pasha (or his designee) in
     connection with the proposed Passion/Omni joint venture.

4.   25,000 shares each to be issued to Andy Vollero, Sandy Panzarella and
     Jonathan Diamond, the Company's Independent Directors.

5.   Shares issuable to Mike Driver under his existing consulting agreement
     (not to exceed 75,000 shares).

6.   All shares to be issued under the Company's Stock Option plan.

7.   An aggregate of 600,000 shares to be designated by Corporate Financial
     Enterprises.

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