Document:

EXHIBIT 10.7

                          REGISTRATION RIGHTS AGREEMENT

         REGISTRATION RIGHTS AGREEMENT (this "Agreement"),  dated as of June 25,
2004 by and between TELEPLUS  ENTERPRISES INC., a Nevada  corporation,  with its
principal office located at 465 St. Jean, Suite 601,  Montreal,  Quebec, H2Y 2R6
(the  "Company"),   and  CORNELL  CAPITAL  PARTNERS,   LP,  a  Delaware  limited
partnership (the "Investor").

         WHEREAS:

         A.       In connection with the Standby Equity  Distribution  Agreement
by and between the parties  hereto of even date herewith  (the  "Standby  Equity
Distribution Agreement"),  the Company has agreed, upon the terms and subject to
the conditions of the Standby Equity Distribution  Agreement,  to issue and sell
to the Investor that number of shares of the Company's  common stock,  par value
US$0.01 per share (the "Common Stock"),  which can be purchased  pursuant to the
terms of the Standby  Equity  Distribution  Agreement for an aggregate  purchase
price of up to Ten Million U.S.  Dollars  ($10,000,000).  Capitalized  terms not
defined  herein  shall have the meaning  ascribed to them in the Standby  Equity
Distribution Agreement.

         B.       To induce the  Investor  to execute  and  deliver  the Standby
Equity  Distribution  Agreement,  the  Company  has  agreed to  provide  certain
registration rights under the Securities Act of 1933, as amended,  and the rules
and regulations thereunder, or any similar successor statute (collectively,  the
"1933 Act"), and applicable state securities laws.

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

         1.       DEFINITIONS.

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

                  a.       "Person"  means a  corporation,  a limited  liability
company,  an  association,  a  partnership,  an  organization,  a  business,  an
individual,  a governmental or political  subdivision  thereof or a governmental
agency.

                  b.       "Register," "registered," and "registration" refer to
a  registration  effected  by  preparing  and  filing  one or more  Registration
Statements  (as defined  below) in compliance  with the 1933 Act and pursuant to
Rule 415  under  the 1933  Act or any  successor  rule  providing  for  offering
securities on a continuous or delayed basis ("Rule 415"), and the declaration or
ordering of effectiveness of such Registration Statement(s) by the United States
Securities and Exchange Commission (the "SEC").

                  c.       "Registrable Securities" means the Investor's Shares,
as defined in the Standby  Equity  Distribution  Agreement  and shares of Common
Stock  issuable  to  Investors  pursuant  to  the  Standby  Equity  Distribution
Agreement.

<PAGE>

                  d.       "Registration   Statement"   means   a   registration
statement under the 1933 Act which covers the Registrable Securities.

         2.       REGISTRATION.

                  a.       Mandatory Registration. The Company shall prepare and
file with the SEC a  Registration  Statement on Form S-1,  SB-2 or on such other
form as is available.  The Company shall cause such Registration Statement to be
declared  effective  by the SEC prior to the first sale to the  Investor  of the
Company's Common Stock pursuant to the Standby Equity Distribution Agreement.

                  b.       Sufficient Number of Shares Registered.  In the event
the number of shares available under a Registration  Statement filed pursuant to
Section 2(a) is insufficient to cover all of the  Registrable  Securities  which
the  Investor  has  purchased  pursuant  to  the  Standby  Equity   Distribution
Agreement,  the Company shall amend the  Registration  Statement,  or file a new
Registration  Statement (on the short form available therefore,  if applicable),
or both, so as to cover all of such  Registrable  Securities  which the Investor
has purchased pursuant to the Standby Equity  Distribution  Agreement as soon as
practicable,  but in any event  not  later  than  fifteen  (15)  days  after the
necessity  therefore arises. The Company shall use it best efforts to cause such
amendment  and/or new  Registration  Statement  to become  effective  as soon as
practicable  following  the  filing  thereof.  For  purposes  of  the  foregoing
provision,  the number of shares available under a Registration  Statement shall
be deemed  "insufficient  to cover all of the Registrable  Securities" if at any
time the number of Registrable  Securities issuable on an Advance Notice Date is
greater than the number of shares  available for resale under such  Registration
Statement.

         3.       RELATED OBLIGATIONS.

                  a.       The  Company  shall keep the  Registration  Statement
effective pursuant to Rule 415 at all times until the date on which the Investor
shall have sold all the  Registrable  Securities  covered  by such  Registration
Statement (the "Registration  Period"),  which Registration Statement (including
any amendments or supplements thereto and prospectuses  contained therein) shall
not contain any untrue  statement of a material fact or omit to state a material
fact required to be stated therein, or necessary to make the statements therein,
in light of the circumstances in which they were made, not misleading.

                  b.       The Company  shall prepare and file with the SEC such
amendments   (including   post-effective   amendments)   and  supplements  to  a
Registration   Statement  and  the  prospectus  used  in  connection  with  such
Registration  Statement,  which  prospectus is to be filed  pursuant to Rule 424
promulgated  under the 1933 Act, as may be necessary  to keep such  Registration
Statement  effective at all times during the  Registration  Period,  and, during
such  period,  comply with the  provisions  of the 1933 Act with  respect to the
disposition  of all  Registrable  Securities  of the  Company  covered  by  such
Registration  Statement  until such time as all of such  Registrable  Securities
shall  have  been  disposed  of in  accordance  with  the  intended  methods  of
disposition by the seller or sellers  thereof as set forth in such  Registration
Statement. In the case of amendments and supplements to a Registration Statement
which are required to be filed pursuant to this Agreement (including pursuant to
this Section  3(b)) by reason of the  Company's  filing a report on Form 10-KSB,

                                       2
<PAGE>

Form 10-QSB or Form 8-K or any analogous  report under the  Securities  Exchange
Act of 1934, as amended (the "1934 Act"),  the Company  shall have  incorporated
such report by reference into the  Registration  Statement,  if  applicable,  or
shall file such amendments or supplements  with the SEC on the same day on which
the 1934 Act report is filed which  created the  requirement  for the Company to
amend or supplement the Registration Statement.

                  c.       The Company  shall  furnish to the  Investor  without
charge,  (i) at  least  one  copy of such  Registration  Statement  as  declared
effective  by  the  SEC  and  any  amendment(s)  thereto,   including  financial
statements and schedules,  all documents incorporated therein by reference,  all
exhibits  and each  preliminary  prospectus,  (ii) ten (10)  copies of the final
prospectus  included  in such  Registration  Statement  and all  amendments  and
supplements  thereto  (or such  other  number  of copies  as such  Investor  may
reasonably  request)  and  (iii)  such  other  documents  as such  Investor  may
reasonably  request from time to time in order to facilitate the  disposition of
the Registrable Securities owned by such Investor.

                  d.       The  Company  shall  use  its  best  efforts  to  (i)
register  and  qualify  the  Registrable  Securities  covered by a  Registration
Statement under such other  securities or "blue sky" laws of such  jurisdictions
in the United States as the Investor reasonably requests,  (ii) prepare and file
in those jurisdictions,  such amendments (including  post-effective  amendments)
and supplements to such  registrations and qualifications as may be necessary to
maintain the effectiveness  thereof during the Registration  Period,  (iii) take
such other  actions as may be  necessary  to  maintain  such  registrations  and
qualifications in effect at all times during the Registration  Period,  and (iv)
take all  other  actions  reasonably  necessary  or  advisable  to  qualify  the
Registrable Securities for sale in such jurisdictions;  provided,  however, that
the  Company  shall not be required in  connection  therewith  or as a condition
thereto to (w) make any change to its certificate of  incorporation  or by-laws,
(x) qualify to do business in any  jurisdiction  where it would not otherwise be
required to qualify but for this  Section  3(d),  (y) subject  itself to general
taxation in any such  jurisdiction,  or (z) file a general consent to service of
process in any such jurisdiction. The Company shall promptly notify the Investor
of the receipt by the Company of any notification with respect to the suspension
of the registration or  qualification  of any of the Registrable  Securities for
sale under the securities or "blue sky" laws of any  jurisdiction  in the United
States or its  receipt  of  actual  notice  of the  initiation  or threat of any
proceeding for such purpose.

                  e.       As promptly as  practicable  after  becoming aware of
such event or  development,  the Company shall notify the Investor in writing of
the  happening  of any event as a result of which the  prospectus  included in a
Registration  Statement,  as then in effect,  includes an untrue  statement of a
material fact or omission to state a material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances under
which they were  made,  not  misleading  (provided  that in no event  shall such
notice  contain any material,  nonpublic  information),  and promptly  prepare a
supplement  or amendment to such  Registration  Statement to correct such untrue
statement  or  omission,  and  deliver  ten (10)  copies of such  supplement  or
amendment to each Investor.  The Company shall also promptly notify the Investor
in writing (i) when a prospectus or any prospectus  supplement or post-effective
amendment   has  been  filed,   and  when  a   Registration   Statement  or  any
post-effective   amendment   has   become   effective   (notification   of  such
effectiveness shall be delivered to the Investor by facsimile on the same day of

                                       3
<PAGE>

such  effectiveness),  (ii)  of  any  request  by  the  SEC  for  amendments  or
supplements  to a  Registration  Statement  or  related  prospectus  or  related
information,  and  (iii)  of  the  Company's  reasonable  determination  that  a
post-effective amendment to a Registration Statement would be appropriate.

                  f.       The Company shall use its best efforts to prevent the
issuance  of  any  stop  order  or  other   suspension  of  effectiveness  of  a
Registration  Statement,  or the suspension of the  qualification  of any of the
Registrable  Securities for sale in any jurisdiction within the United States of
America and, if such an order or suspension is issued,  to obtain the withdrawal
of such order or  suspension at the earliest  possible  moment and to notify the
Investor of the issuance of such order and the resolution thereof or its receipt
of actual notice of the initiation or threat of any proceeding for such purpose.

                  g.       At  the  reasonable  request  of  the  Investor,  the
Company shall furnish to the Investor,  on the date of the  effectiveness of the
Registration  Statement  and  thereafter  from time to time on such dates as the
Investor  may  reasonably  request  (i) a  letter,  dated  such  date,  from the
Company's  independent  certified public accountants in form and substance as is
customarily given by independent certified public accountants to underwriters in
an underwritten public offering,  and (ii) an opinion, dated as of such date, of
counsel representing the Company for purposes of such Registration Statement, in
form,  scope and substance as is  customarily  given in an  underwritten  public
offering, addressed to the Investor.

                  h.       The Company shall make  available  for  inspection by
(i) the Investor and (ii) one firm of  accountants  or other agents  retained by
the Investor (collectively,  the "Inspectors") all pertinent financial and other
records,  and  pertinent  corporate  documents  and  properties  of the  Company
(collectively,  the "Records"),  as shall be reasonably deemed necessary by each
Inspector,  and cause the Company's officers,  directors and employees to supply
all information which any Inspector may reasonably request;  provided,  however,
that each Inspector  shall agree,  and the Investor  hereby  agrees,  to hold in
strict  confidence and shall not make any disclosure  (except to an Investor) or
use of any Record or other  information  which the  Company  determines  in good
faith to be  confidential,  and of which  determination  the  Inspectors  are so
notified,  unless (a) the  disclosure  of such  Records is necessary to avoid or
correct a misstatement or omission in any Registration Statement or is otherwise
required under the 1933 Act, (b) the release of such Records is ordered pursuant
to a final,  non-appealable subpoena or order from a court or government body of
competent  jurisdiction,  or (c) the  information  in such Records has been made
generally  available to the public other than by disclosure in violation of this
or any other  agreement of which the Inspector  and the Investor has  knowledge.
The Investor agrees that it shall, upon learning that disclosure of such Records
is sought in or by a court or  governmental  body of competent  jurisdiction  or
through other means, give prompt notice to the Company and allow the Company, at
its expense,  to undertake  appropriate  action to prevent  disclosure of, or to
obtain a protective order for, the Records deemed confidential.

                  i.       The Company shall hold in confidence and not make any
disclosure of information concerning the Investor provided to the Company unless
(i) disclosure of such  information is necessary to comply with federal or state
securities  laws, (ii) the disclosure of such  information is necessary to avoid
or correct a misstatement or omission in any Registration  Statement,  (iii) the

                                       4
<PAGE>

release of such  information  is ordered  pursuant to a subpoena or other final,
non-appealable   order  from  a  court  or   governmental   body  of   competent
jurisdiction,  or (iv) such information has been made generally available to the
public other than by  disclosure  in  violation  of this  Agreement or any other
agreement.  The Company agrees that it shall,  upon learning that  disclosure of
such  information  concerning  the  Investor  is  sought  in  or by a  court  or
governmental body of competent  jurisdiction or through other means, give prompt
written  notice  to the  Investor  and  allow the  Investor,  at the  Investor's
expense, to undertake  appropriate action to prevent disclosure of, or to obtain
a protective order for, such information.

                  j.       The  Company  shall  use its best  efforts  either to
cause all the Registrable  Securities covered by a Registration Statement (i) to
be listed on each securities  exchange on which  securities of the same class or
series  issued by the  Company are then  listed,  if any, if the listing of such
Registrable  Securities is then permitted under the rules of such exchange or to
secure the  inclusion for  quotation on the National  Association  of Securities
Dealers,  Inc. OTC Bulletin Board for such Registrable  Securities.  The Company
shall pay all fees and expenses in connection  with  satisfying  its  obligation
under this Section 3(j).

                  k.       The Company shall  cooperate with the Investor to the
extent  applicable,  to  facilitate  the  timely  preparation  and  delivery  of
certificates (not bearing any restrictive  legend)  representing the Registrable
Securities to be offered  pursuant to a  Registration  Statement and enable such
certificates to be in such denominations or amounts,  as the case may be, as the
Investor may reasonably request and registered in such names as the Investor may
request.

                  l.       The Company  shall use its best  efforts to cause the
Registrable  Securities covered by the applicable  Registration  Statement to be
registered with or approved by such other  governmental  agencies or authorities
as  may  be  necessary  to  consummate  the  disposition  of  such   Registrable
Securities.

                  m.       The Company  shall make  generally  available  to its
security holders as soon as practical, but not later than ninety (90) days after
the  close  of the  period  covered  thereby,  an  earnings  statement  (in form
complying  with the  provisions  of Rule 158  under  the 1933  Act)  covering  a
twelve-month  period  beginning  not later  than the first day of the  Company's
fiscal quarter next following the effective date of the Registration Statement.

                  n.       The Company  shall  otherwise use its best efforts to
comply with all applicable  rules and  regulations of the SEC in connection with
any registration hereunder.

                  o.       Within two (2)  business  days  after a  Registration
Statement which covers  Registrable  Securities is ordered effective by the SEC,
the Company  shall  deliver,  and shall  cause legal  counsel for the Company to
deliver,  to the transfer agent for such Registrable  Securities (with copies to
the Investor)  confirmation that such  Registration  Statement has been declared
effective by the SEC in the form attached hereto as Exhibit A.

                  p.       The Company shall take all other  reasonable  actions
necessary to expedite and facilitate  disposition by the Investor of Registrable
Securities pursuant to a Registration Statement.

                                       5
<PAGE>

         4.       OBLIGATIONS OF THE INVESTOR.

         The Investor  agrees that,  upon receipt of any notice from the Company
of the happening of any event of the kind described in Section 3(f) or the first
sentence of 3(e),  the Investor  will  immediately  discontinue  disposition  of
Registrable  Securities pursuant to any Registration  Statement(s) covering such
Registrable  Securities  until  the  Investor's  receipt  of the  copies  of the
supplemented  or amended  prospectus  contemplated by Section 3(e) or receipt of
notice that no supplement or amendment is required.  Notwithstanding anything to
the contrary,  the Company shall cause its transfer agent to deliver  unlegended
certificates  for shares of Common  Stock to a  transferee  of the  Investor  in
accordance  with the  terms of the  Standby  Equity  Distribution  Agreement  in
connection  with any sale of  Registrable  Securities  with respect to which the
Investor has entered into a contract for sale prior to the Investor's receipt of
a notice from the Company of the happening of any event of the kind described in
Section  3(f) or the first  sentence of 3(e) and for which the  Investor has not
yet settled.

         5.       EXPENSES OF REGISTRATION.

         All expenses  incurred in  connection  with  registrations,  filings or
qualifications pursuant to Sections 2 and 3, including,  without limitation, all
registration,  listing and qualifications fees,  printers,  legal and accounting
fees shall be paid by the Company.

         6.       INDEMNIFICATION.

         With  respect  to  Registrable  Securities  which  are  included  in  a
Registration Statement under this Agreement:

                  a.       To the fullest  extent  permitted by law, the Company
will,  and hereby does,  indemnify,  hold harmless and defend the Investor,  the
directors,  officers, partners, employees, agents,  representatives of, and each
Person,  if any, who controls the Investor within the meaning of the 1933 Act or
the 1934 Act (each,  an  "Indemnified  Person"),  against  any  losses,  claims,
damages,  liabilities,  judgments, fines, penalties,  charges, costs, reasonable
attorneys'  fees,  amounts  paid in  settlement  or  expenses,  joint or several
(collectively,  "Claims") incurred in investigating,  preparing or defending any
action, claim, suit, inquiry, proceeding, investigation or appeal taken from the
foregoing  by or  before  any  court or  governmental,  administrative  or other
regulatory  agency,  body or the SEC, whether pending or threatened,  whether or
not an indemnified party is or may be a party thereto  ("Indemnified  Damages"),
to which any of them may become  subject  insofar as such  Claims (or actions or
proceedings,  whether commenced or threatened,  in respect thereof) arise out of
or are based upon:  (i) any untrue  statement or alleged  untrue  statement of a
material  fact  in a  Registration  Statement  or any  post-effective  amendment
thereto  or in any  filing  made in  connection  with the  qualification  of the
offering  under the securities or other "blue sky" laws of any  jurisdiction  in
which Registrable Securities are offered ("Blue Sky Filing"), or the omission or
alleged  omission  to state a material  fact  required  to be stated  therein or
necessary  to make the  statements  therein  not  misleading;  (ii)  any  untrue
statement or alleged untrue  statement of a material fact contained in any final
prospectus  (as  amended or  supplemented,  if the Company  files any  amendment
thereof or supplement  thereto with the SEC) or the omission or alleged omission
to state  therein  any  material  fact  necessary  to make the  statements  made
therein,  in light of the circumstances  under which the statements therein were

                                       6
<PAGE>

made, not misleading; or (iii) any violation or alleged violation by the Company
of the 1933 Act, the 1934 Act, any other law, including, without limitation, any
state  securities  law, or any rule or  regulation  there under  relating to the
offer or sale of the Registrable Securities pursuant to a Registration Statement
(the matters in the  foregoing  clauses (i) through  (iii) being,  collectively,
"Violations").   The  Company  shall   reimburse  the  Investor  and  each  such
controlling  person  promptly  as such  expenses  are  incurred  and are due and
payable,  for any  legal  fees or  disbursements  or other  reasonable  expenses
incurred by them in connection with  investigating  or defending any such Claim.
Notwithstanding  anything to the contrary contained herein, the  indemnification
agreement  contained in this Section 6(a):  (x) shall not apply to a Claim by an
Indemnified  Person  arising  out of or based upon a Violation  which  occurs in
reliance upon and in  conformity  with  information  furnished in writing to the
Company by such  Indemnified  Person  expressly for use in  connection  with the
preparation  of the  Registration  Statement  or any such  amendment  thereof or
supplement thereto; (y) shall not be available to the extent such Claim is based
on a  failure  of the  Investor  to  deliver  or to  cause to be  delivered  the
prospectus  made  available by the Company,  if such  prospectus was timely made
available by the Company  pursuant to Section  3(e);  and (z) shall not apply to
amounts paid in settlement of any Claim if such  settlement is effected  without
the  prior  written  consent  of  the  Company,   which  consent  shall  not  be
unreasonably  withheld.  Such  indemnity  shall  remain in full force and effect
regardless of any investigation made by or on behalf of the Indemnified Person.

                  b.       In  connection  with a  Registration  Statement,  the
Investor agrees to indemnify,  hold harmless and defend,  to the same extent and
in the same manner as is set forth in Section  6(a),  the  Company,  each of its
directors,  each of its officers who signs the  Registration  Statement and each
Person,  if any, who controls the Company  within the meaning of the 1933 Act or
the 1934 Act (each an  "Indemnified  Party"),  against any Claim or  Indemnified
Damages to which any of them may become  subject,  under the 1933 Act,  the 1934
Act or otherwise,  insofar as such Claim or Indemnified  Damages arise out of or
is based upon any Violation, in each case to the extent, and only to the extent,
that such  Violation  occurs in reliance  upon and in  conformity  with  written
information  furnished  to the  Company  by the  Investor  expressly  for use in
connection with such Registration  Statement;  and, subject to Section 6(d), the
Investor will reimburse any legal or other expenses  reasonably incurred by them
in connection with investigating or defending any such Claim; provided, however,
that the  indemnity  agreement  contained in this Section 6(b) and the agreement
with respect to  contribution  contained in Section 7 shall not apply to amounts
paid in settlement of any Claim if such settlement is effected without the prior
written  consent  of the  Investor,  which  consent  shall  not be  unreasonably
withheld;  provided,  further,  however, that the Investor shall be liable under
this Section 6(b) for only that amount of a Claim or Indemnified Damages as does
not  exceed  the  net  proceeds  to the  Investor  as a  result  of the  sale of
Registrable Securities pursuant to such Registration  Statement.  Such indemnity
shall remain in full force and effect regardless of any investigation made by or
on behalf of such Indemnified  Party.  Notwithstanding  anything to the contrary
contained herein, the  indemnification  agreement contained in this Section 6(b)
with respect to any prospectus shall not inure to the benefit of any Indemnified
Party if the untrue  statement  or omission of material  fact  contained  in the
prospectus  was corrected and such new  prospectus was delivered to the Investor
prior to the Investor's use of the prospectus to which the Claim relates.

                                       7
<PAGE>

                  c.       Promptly  after receipt by an  Indemnified  Person or
Indemnified  Party  under this  Section 6 of notice of the  commencement  of any
action or proceeding (including any governmental action or proceeding) involving
a Claim,  such  Indemnified  Person or  Indemnified  Party shall,  if a Claim in
respect thereof is to be made against any indemnifying  party under this Section
6,  deliver  to the  indemnifying  party a written  notice  of the  commencement
thereof, and the indemnifying party shall have the right to participate in, and,
to the  extent  the  indemnifying  party so  desires,  jointly  with  any  other
indemnifying party similarly  noticed,  to assume control of the defense thereof
with counsel mutually satisfactory to the indemnifying party and the Indemnified
Person or the Indemnified Party, as the case may be; provided,  however, that an
Indemnified  Person or Indemnified  Party shall have the right to retain its own
counsel  with the fees  and  expenses  of not  more  than one  counsel  for such
Indemnified  Person or Indemnified  Party to be paid by the indemnifying  party,
if, in the reasonable opinion of counsel retained by the indemnifying party, the
representation  by such counsel of the Indemnified  Person or Indemnified  Party
and the  indemnifying  party would be  inappropriate  due to actual or potential
differing interests between such Indemnified Person or Indemnified Party and any
other party  represented  by such counsel in such  proceeding.  The  Indemnified
Party or Indemnified Person shall cooperate fully with the indemnifying party in
connection  with any  negotiation  or defense of any such action or claim by the
indemnifying  party and shall furnish to the indemnifying  party all information
reasonably  available  to the  Indemnified  Party or  Indemnified  Person  which
relates  to such  action  or  claim.  The  indemnifying  party  shall  keep  the
Indemnified  Party or  Indemnified  Person fully apprised at all times as to the
status of the defense or any settlement  negotiations  with respect thereto.  No
indemnifying  party shall be liable for any  settlement of any action,  claim or
proceeding effected without its prior written consent,  provided,  however, that
the indemnifying party shall not unreasonably  withhold,  delay or condition its
consent.  No indemnifying party shall,  without the prior written consent of the
Indemnified  Party or  Indemnified  Person,  consent to entry of any judgment or
enter into any  settlement  or other  compromise  which  does not  include as an
unconditional  term  thereof  the giving by the  claimant or  plaintiff  to such
Indemnified  Party or  Indemnified  Person of a release  from all  liability  in
respect to such claim or litigation.  Following  indemnification as provided for
hereunder,  the  indemnifying  party  shall be  subrogated  to all rights of the
Indemnified Party or Indemnified Person with respect to all third parties, firms
or corporations  relating to the matter for which indemnification has been made.
The  failure  to  deliver  written  notice to the  indemnifying  party  within a
reasonable  time of the  commencement  of any such action shall not relieve such
indemnifying  party of any liability to the  Indemnified  Person or  Indemnified
Party under this Section 6, except to the extent that the indemnifying  party is
prejudiced in its ability to defend such action.

                  d.       The indemnification  required by this Section 6 shall
be made by  periodic  payments  of the amount  thereof  during the course of the
investigation or defense,  as and when bills are received or Indemnified Damages
are incurred.

                  e.       The indemnity agreements contained herein shall be in
addition to (i) any cause of action or similar right of the Indemnified Party or
Indemnified  Person  against  the  indemnifying  party or  others,  and (ii) any
liabilities the indemnifying party may be subject to pursuant to the law.

                                       8
<PAGE>

         7.       CONTRIBUTION.

         To  the  extent  any   indemnification  by  an  indemnifying  party  is
prohibited or limited by law, the indemnifying  party agrees to make the maximum
contribution  with respect to any amounts for which it would otherwise be liable
under Section 6 to the fullest extent permitted by law; provided, however, that:
(i) no seller of Registrable  Securities guilty of fraudulent  misrepresentation
(within  the  meaning of Section  11(f) of the 1933 Act)  shall be  entitled  to
contribution  from any seller of  Registrable  Securities  who was not guilty of
fraudulent misrepresentation; and (ii) contribution by any seller of Registrable
Securities shall be limited in amount to the net amount of proceeds  received by
such seller from the sale of such Registrable Securities.

         8.       REPORTS UNDER THE 1934 ACT.

         With a view to making  available  to the  Investor the benefits of Rule
144 promulgated  under the 1933 Act or any similar rule or regulation of the SEC
that may at any time permit the  Investors to sell  securities of the Company to
the public without registration ("Rule 144") the Company agrees to:

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

                  b.       file with the SEC in a timely  manner all reports and
other  documents  required of the Company under the 1933 Act and the 1934 Act so
long as the Company remains subject to such  requirements  (it being  understood
that nothing herein shall limit the Company's  obligations  under Section 6.3 of
the Standby  Equity  Distribution  Agreement) and the filing of such reports and
other documents is required for the applicable provisions of Rule 144; and

                  c.       furnish to the Investor so long as the Investor  owns
Registrable  Securities,  promptly upon request,  (i) a written statement by the
Company that it has complied  with the reporting  requirements  of Rule 144, the
1933 Act and the 1934 Act,  (ii) a copy of the most recent  annual or  quarterly
report of the  Company  and such other  reports  and  documents  so filed by the
Company,  and (iii) such other  information  as may be  reasonably  requested to
permit  the  Investor  to sell  such  securities  pursuant  to Rule 144  without
registration.

         9.       AMENDMENT OF REGISTRATION RIGHTS.

         Provisions of this Agreement may be amended and the observance  thereof
may  be  waived  (either  generally  or  in a  particular  instance  and  either
retroactively or prospectively), only by a written agreement between the Company
and the  Investor.  Any  amendment or waiver  effected in  accordance  with this
Section 9 shall be binding upon the Investor and the Company.  No  consideration
shall be  offered  or paid to any  Person  to amend or  consent  to a waiver  or
modification  of  any  provision  of any  of  this  Agreement  unless  the  same
consideration also is offered to all of the parties to this Agreement.

                                       9
<PAGE>

         10.      MISCELLANEOUS.

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

                  b.       Any    notices,    consents,    waivers    or   other
communications  required  or  permitted  to be  given  under  the  terms of this
Agreement must be in writing and will be deemed to have been delivered: (i) upon
receipt,  when delivered  personally;  (ii) upon receipt, when sent by facsimile
(provided   confirmation  of  transmission  is  mechanically  or  electronically
generated  and kept on file by the sending  party);  or (iii) one  business  day
after deposit with a nationally  recognized  overnight delivery service, in each
case  properly  addressed to the party to receive the same.  The  addresses  and
facsimile numbers for such communications shall be:

If to the Company, to:     Teleplus Enterprises Inc.
                           465 St. Jean - Suite 601
                           Montreal Quebec H2Y 2R6
                           Attention: Marius Silvasan, President
                           Telephone: (514) 344-0778
                           Facsimile: (514) 344-8675

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

If to the Investor, to:    Cornell Capital Partners, LP
                           101 Hudson Street - Suite 3700
                           Jersey City, New Jersey 07302
                           Attention: Mark Angelo
                           Portfolio Manager
                           Telephone: (201) 985-8300
                           Facsimile: (201) 985-8266

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

                                       10
<PAGE>

Any party may  change  its  address  by  providing  written  notice to the other
parties  hereto at least five days prior to the  effectiveness  of such  change.
Written  confirmation  of receipt  (A) given by the  recipient  of such  notice,
consent,  waiver or other  communication,  (B)  mechanically  or  electronically
generated by the sender's facsimile machine containing the time, date, recipient
facsimile  number  and an image of the first  page of such  transmission  or (C)
provided by a courier or overnight courier service shall be rebuttable  evidence
of  personal  service,  receipt  by  facsimile  or  receipt  from  a  nationally
recognized  overnight  delivery  service in accordance  with clause (i), (ii) or
(iii) above, respectively.

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

                  d.       The  corporate  laws of the  State  of  Nevada  shall
govern  all  issues  concerning  the  relative  rights  of the  Company  and the
Investor. All other questions concerning the construction, validity, enforcement
and  interpretation  of this Agreement shall be governed by the internal laws of
the State of New Jersey,  without giving effect to any choice of law or conflict
of law  provision  or rule  (whether  of the  State of New  Jersey  or any other
jurisdiction)  that would cause the application of the laws of any  jurisdiction
other than the State of New Jersey. Each party hereby irrevocably submits to the
non-exclusive  jurisdiction  of the Superior  Courts of the State of New Jersey,
sitting in Hudson  County,  New Jersey and the  Federal  District  Court for the
District of New Jersey sitting in Newark,  New Jersey,  for the  adjudication of
any  dispute  hereunder  or in  connection  herewith  or  with  any  transaction
contemplated  hereby or discussed herein,  and hereby  irrevocably  waives,  and
agrees not to assert in any suit, action or proceeding, any claim that it is not
personally subject to the jurisdiction of any such court, that such suit, action
or  proceeding  is  brought in an  inconvenient  forum or that the venue of such
suit,  action or proceeding is improper.  Each party hereby  irrevocably  waives
personal  service of process and  consents to process  being  served in any such
suit,  action or  proceeding  by  mailing a copy  thereof  to such  party at the
address for such notices to it under this Agreement and agrees that such service
shall  constitute  good and  sufficient  service of process and notice  thereof.
Nothing  contained herein shall be deemed to limit in any way any right to serve
process in any manner permitted by law. If any provision of this Agreement shall
be  invalid  or   unenforceable   in  any   jurisdiction,   such  invalidity  or
unenforceability  shall  not  affect  the  validity  or  enforceability  of  the
remainder  of  this   Agreement  in  that   jurisdiction   or  the  validity  or
enforceability  of any  provision of this  Agreement in any other  jurisdiction.
EACH PARTY HEREBY  IRREVOCABLY  WAIVES ANY RIGHT IT MAY HAVE,  AND AGREES NOT TO
REQUEST,  A JURY  TRIAL FOR THE  ADJUDICATION  OF ANY  DISPUTE  HEREUNDER  OR IN
CONNECTION  HEREWITH  OR  ARISING  OUT OF  THIS  AGREEMENT  OR  ANY  TRANSACTION
CONTEMPLATED HEREBY.

                  e.       This  Agreement,   the  Standby  Equity  Distribution
Agreement,  the Escrow Agreement,  and the Placement Agent Agreement  constitute
the entire agreement among the parties hereto with respect to the subject matter
hereof  and  thereof.  There  are  no  restrictions,   promises,  warranties  or
undertakings, other than those set forth or referred to herein and therein. This
Agreement,  the Standby Equity Distribution Agreement, the Escrow Agreement, and
the Placement Agent Agreement  supersede all prior agreements and understandings
among the parties hereto with respect to the subject matter hereof and thereof.

                                       11
<PAGE>

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

                  g.       The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

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

                  i.       Each party shall do and perform,  or cause to be done
and performed,  all such further acts and things,  and shall execute and deliver
all such other agreements, certificates, instruments and documents, as the other
party may reasonably request in order to carry out the intent and accomplish the
purposes of this Agreement and the consummation of the transactions contemplated
hereby.

j. The language used in this Agreement will be deemed to be the language  chosen
by  the  parties  to  express  their  mutual  intent  and  no  rules  of  strict
construction will be applied against any party.

k. This  Agreement is intended  for the benefit of the parties  hereto and their
respective  permitted successors and assigns, and is not for the benefit of, nor
may any provision hereof be enforced by, any other Person.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       12
<PAGE>

         IN WITNESS WHEREOF,  the parties have caused this  Registration  Rights
Agreement to be duly executed as of day and year first above written.

                                              COMPANY:
                                              TELEPLUS ENTERPRISES INC.

                                              By:  /s/ Marius Silvasan
                                                --------------------------------
                                                Name:  Marius Silvasan
                                                Title: President

                                              INVESTOR:
                                              CORNELL CAPITAL PARTNERS, LP

                                              BY:  YORKVILLE ADVISORS, LLC
                                              ITS: GENERAL PARTNER

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

                                       13
<PAGE>

                                                                       EXHIBIT A

                         FORM OF NOTICE OF EFFECTIVENESS
                            OF REGISTRATION STATEMENT

Transfer Online
227 S.W. Pine Street - Suite 300
Portland, Oregon 97204

         Re:  TELEPLUS ENTERPRISES INC.

Ladies and Gentlemen:

         We are counsel to Teleplus  Enterprises Inc., a Nevada corporation (the
"Company"),  and have  represented  the Company in connection  with that certain
Standby  Equity   Distribution   Agreement  (the  "Standby  Equity  Distribution
Agreement")  entered  into  by and  between  the  Company  and  Cornell  Capital
Partners,  LP (the  "Investor")  pursuant  to which  the  Company  issued to the
Investor  shares of its Common  Stock,  par value US$0.01 per share (the "Common
Stock"). Pursuant to the Standby Equity Distribution Agreement, the Company also
has  entered  into a  Registration  Rights  Agreement  with  the  Investor  (the
"Registration  Rights  Agreement")  pursuant to which the Company agreed,  among
other  things,  to  register  the  Registrable  Securities  (as  defined  in the
Registration Rights Agreement) under the Securities Act of 1933, as amended (the
"1933 Act"). In connection with the Company's obligations under the Registration
Rights  Agreement,  on  ____________  ____,  the  Company  filed a  Registration
Statement  on Form  ________  (File No.  333-_____________)  (the  "Registration
Statement") with the Securities and Exchange  Commission (the "SEC") relating to
the  Registrable  Securities  which names the Investor as a selling  stockholder
thereunder.

         In connection  with the  foregoing,  we advise you that a member of the
SEC's  staff has  advised  us by  telephone  that the SEC has  entered  an order
declaring the Registration Statement effective under the 1933 Act at [ENTER TIME
OF  EFFECTIVENESS]  on [ENTER DATE OF  EFFECTIVENESS]  and we have no knowledge,
after  telephonic  inquiry of a member of the SEC's  staff,  that any stop order
suspending its  effectiveness  has been issued or that any  proceedings for that
purpose  are  pending  before,  or  threatened  by, the SEC and the  Registrable
Securities  are  available  for  resale  under  the  1933  Act  pursuant  to the
Registration Statement.

                                              Very truly yours,

                                              KIRKPATRICK & LOCKHART LLP

                                              By:
                                                --------------------------------

cc:      CORNELL CAPITAL PARTNERS, LPEXHIBIT 10.8

                                ESCROW AGREEMENT

         THIS ESCROW AGREEMENT (this "Agreement") is made and entered into as of
June 25, 2004 by and among TELEPLUS  ENTERPRISES INC., a Nevada corporation (the
"Company");  CORNELL CAPITAL PARTNERS,  LP, a Delaware limited  partnership (the
"Investor"); and BUTLER GONZALEZ LLP (the "Escrow Agent").

                                   BACKGROUND

         WHEREAS,  the Company and the  Investor  have  entered  into an Standby
Equity  Distribution  Agreement (the "Standby  Equity  Distribution  Agreement")
dated as of the date hereof,  pursuant to which the Investor  will  purchase the
Company's Common Stock,  par value US$0.01 per share (the "Common Stock"),  at a
price per share  equal to the  Purchase  Price,  as that term is  defined in the
Standby  Equity  Distribution  Agreement,  for an  aggregate  price of up to Ten
Million U.S. Dollars  ($10,000,000).  The Standby Equity Distribution  Agreement
provides that on each Advance Date the Investor,  as that term is defined in the
Standby Equity Distribution Agreement, shall deposit the Advance pursuant to the
Advance Notice in a segregated escrow account to be held by Escrow Agent and the
Company shall  deposit  shares of the  Company's  Common  Stock,  which shall be
purchased  by the  Investor  as set  forth in the  Standby  Equity  Distribution
Agreement,  with the Escrow Agent,  in order to effectuate a disbursement to the
Company of the Advance by the Escrow Agent and a disbursement to the Investor of
the shares of the Company's Common Stock by Escrow Agent at a closing to be held
as set forth in the Standby Equity Distribution Agreement (the "Closing").

         WHEREAS,  Escrow  Agent has agreed to accept,  hold,  and  disburse the
funds  and  the  shares  of the  Company's  Common  Stock  deposited  with it in
accordance with the terms of this Agreement.

         WHEREAS, in order to establish the escrow of funds and shares to effect
the provisions of the Standby Equity Distribution Agreement,  the parties hereto
have entered into this Agreement.

         NOW THEREFORE,  in consideration of the foregoing,  it is hereby agreed
as follows:

         1.       Definitions.  The  following  terms  shall have the  following
meanings when used herein:

                  a.       "Escrow Funds" shall mean the Advance funds deposited
with the Escrow Agent pursuant to this Agreement.

                  b.       "Joint  Written   Direction"  shall  mean  a  written
direction  executed by the  Investor and the Company  directing  Escrow Agent to
disburse  all or a portion of the Escrow Funds or to take or refrain from taking
any action pursuant to this Agreement.

                  c.       "Common Stock Joint Written  Direction"  shall mean a
written direction executed by the Investor and the Company directing  Investor's
Counsel to disburse all or a portion of the shares of the Company's Common Stock
or to refrain from taking any action pursuant to this Agreement.

<PAGE>

         2.       Appointment of and Acceptance by Escrow Agent.

                  a.       The Investor and the Company  hereby  appoint  Escrow
Agent to serve as Escrow  Agent  hereunder.  Escrow  Agent  hereby  accepts such
appointment and, upon receipt by wire transfer of the Escrow Funds in accordance
with  Section 3 below,  agrees to hold,  invest and disburse the Escrow Funds in
accordance with this Agreement.

                  b.       The  Investor  and the  Company  hereby  appoint  the
Escrow Agent to serve as the holder of the shares of the Company's  Common Stock
which shall be purchased by the Investor.  The Escrow Agent hereby  accepts such
appointment  and, upon receipt via D.W.A.C or the  certificates  representing of
the shares of the  Company's  Common Stock in  accordance  with Section 3 below,
agrees  to hold  and  disburse  the  shares  of the  Company's  Common  Stock in
accordance with this Agreement.

                  c.       The Company hereby acknowledges that the Escrow Agent
is counsel to the Investor in connection with the transactions  contemplated and
referenced  herein.  The Company agrees that in the event of any dispute arising
in connection  with this Escrow  Agreement or otherwise in  connection  with any
transaction or agreement  contemplated and referenced  herein,  the Escrow Agent
shall be permitted  to continue to  represent  the Investor and the Company will
not seek to disqualify such counsel.

         3.       Creation of Escrow Account/Common Stock Account.

                  a.       On or prior to the date of this  Agreement the Escrow
Agent shall  establish  an escrow  account  for the deposit of the Escrow  Funds
entitled as follows: Teleplus Enterprises Inc./Cornell Capital Partners, LP. The
Investor will wire funds to the account of the Escrow Agent as follows:

BANK:                   Wachovia, N.A. of New Jersey
ROUTING #:              031201467
ACCOUNT #:              2020000659170
NAME ON ACCOUNT:        Butler Gonzalez LLP as Escrow Agent
NAME ON SUB-ACCOUNT:    Teleplus Enterprises Inc./Cornell Capital Partners, LP
                        Escrow account

                                       2
<PAGE>

                  b.       On or prior to the date of this  Agreement the Escrow
Agent shall establish an account for the D.W.A.C. of the shares of Common Stock.
The Company will D.W.A.C. shares of the Company's Common Stock to the account of
the Escrow Agent as follows:

BROKERAGE FIRM:         Crown Financial Group
CLEARING HOUSE:         Fiserv
ACCOUNT #:              56797702
DTC #:                  0632
NAME ON ACCOUNT:        Butler Gonzalez LLP Escrow Account

         4.       Deposits into the Escrow Account.  The Investor agrees that it
shall  promptly  deliver all monies for the  payment of the Common  Stock to the
Escrow Agent for deposit in the Escrow Account.

         5.       Disbursements from the Escrow Account.

                  a.       At such  time  as  Escrow  Agent  has  collected  and
deposited  instruments  of payment in the total  amount of the  Advance  and has
received  such Common Stock via D.W.A.C from the Company  which are to be issued
to the  Investor  pursuant to the Standby  Equity  Distribution  Agreement,  the
Escrow  Agent shall notify the Company and the  Investor.  The Escrow Agent will
continue to hold such funds until the Investor and Company execute and deliver a
Joint Written Direction  directing the Escrow Agent to disburse the Escrow Funds
pursuant to Joint  Written  Direction  at which time the Escrow Agent shall wire
the Escrow  Funds to the  Company.  In  disbursing  such funds,  Escrow Agent is
authorized to rely upon such Joint Written Direction from Company and may accept
any signatory  from the Company  listed on the signature  page to this Agreement
and any  signature  from the  Investor  that Escrow  Agent  already has on file.
Simultaneous with delivery of the executed Joint Written Direction to the Escrow
Agent the  Investor and Company  shall  execute and deliver a Common Stock Joint
Written  Direction to the Escrow Agent directing the Escrow Agent to release via
D.W.A.C to the Investor the shares of the Company's  Common Stock.  In releasing
such shares of Common  Stock the Escrow  Agent is  authorized  to rely upon such
Common Stock Joint Written  Direction  from Company and may accept any signatory
from  the  Company  listed  on the  signature  page  to this  Agreement  and any
signature from the Escrow Agent has on file.

         In the  event the  Escrow  Agent  does not  receive  the  amount of the
Advance  from the  Investor or the shares of Common Stock to be purchased by the
Investor  from the  Company,  the Escrow  Agent shall notify the Company and the
Investor.

         In the event that the Escrow Agent has not received the Common Stock to
be purchased by the Investor from the Company, in no event will the Escrow Funds
be  released  to the  Company  until  such  shares  are  received  by the Escrow
Agreement.  For purposes of this Agreement, the term "Common Stock certificates"
shall mean Common Stock  certificates to be purchased pursuant to the respective
Advance Notice pursuant to the Standby Equity Distribution Agreement.

         6.       Deposit of Funds.  The Escrow  Agent is hereby  authorized  to
deposit the wire transfer proceeds in the Escrow Account.

                                       3
<PAGE>

         7.       Suspension of Performance: Disbursement Into Court.

                  a.       Escrow Agent.  If at any time,  there shall exist any
dispute  between  the  Company  and the  Investor  with  respect  to  holding or
disposition  of any portion of the Escrow Funds or the Common Stock or any other
obligations of Escrow Agent hereunder,  or if at any time Escrow Agent is unable
to determine, to Escrow Agent's sole satisfaction, the proper disposition of any
portion of the Escrow Funds or Escrow Agent's proper actions with respect to its
obligations hereunder, or if the parties have not within thirty (30) days of the
furnishing  by Escrow  Agent of a notice of  resignation  pursuant  to Section 9
hereof,  appointed a successor Escrow Agent to act hereunder,  then Escrow Agent
may, in its sole discretion, take either or both of the following actions:

                           i.       Suspend  the   performance  of  any  of  its
obligations  (including without  limitation any disbursement  obligations) under
this Escrow Agreement until such dispute or uncertainty shall be resolved to the
sole  satisfaction  of Escrow  Agent or until a successor  Escrow Agent shall be
appointed (as the case may be); provided however, Escrow Agent shall continue to
invest the Escrow Funds in accordance with Section 8 hereof; and/or

                           ii.      Petition (by means of an interpleader action
or any other  appropriate  method) any court of  competent  jurisdiction  in any
venue convenient to Escrow Agent, for instructions  with respect to such dispute
or  uncertainty,  and to the extent  required by law,  pay into such court,  for
holding and disposition in accordance with the  instructions of such court,  all
funds held by it in the Escrow  Funds,  after  deduction  and  payment to Escrow
Agent of all fees and  expenses  (including  court  costs and  attorneys'  fees)
payable  to,  incurred  by,  or  expected  to be  incurred  by  Escrow  Agent in
connection  with  performance  of its  duties  and the  exercise  of its  rights
hereunder.

                           iii.     Escrow  Agent shall have no liability to the
Company,  the  Investor,  or any person with respect to any such  suspension  of
performance or disbursement into court,  specifically including any liability or
claimed  liability that may arise, or be alleged to have arisen,  out of or as a
result of any delay in the disbursement of funds held in the Escrow Funds or any
delay in with respect to any other action required or requested of Escrow Agent.

         8.       Investment of Escrow Funds. The Escrow Agent shall deposit the
Escrow Funds in a non-interest bearing money market account.

         If Escrow Agent has not received a Joint Written  Direction at any time
that an  investment  decision  must be made,  Escrow Agent may retain the Escrow
Fund, or such portion thereof,  as to which no Joint Written  Direction has been
received, in a non-interest bearing money market account.

         9.       Resignation  and  Removal of Escrow  Agent.  Escrow  Agent may
resign from the performance of its duties hereunder at any time by giving thirty
(30)  days'  prior  written  notice to the  parties or may be  removed,  with or
without cause,  by the parties,  acting  jointly,  by furnishing a Joint Written
Direction  to Escrow  Agent,  at any time by the giving of ten (10) days'  prior
written notice to Escrow Agent as provided herein below. Upon any such notice of
resignation  or removal,  the  representatives  of the  Investor and the Company
identified  in Sections  13a.(iv) and 13b.(iv),  below,  jointly shall appoint a

                                       4
<PAGE>

successor  Escrow  Agent  hereunder,  which shall be a  commercial  bank,  trust
company or other financial  institution  with a combined  capital and surplus in
excess of US$10,000,000.00. Upon the acceptance in writing of any appointment of
Escrow Agent hereunder by a successor Escrow Agent,  such successor Escrow Agent
shall  thereupon  succeed  to and become  vested  with all the  rights,  powers,
privileges  and duties of the retiring  Escrow  Agent,  and the retiring  Escrow
Agent  shall be  discharged  from its duties and  obligations  under this Escrow
Agreement,  but shall not be discharged  from any liability for actions taken as
Escrow Agent  hereunder  prior to such  succession.  After any  retiring  Escrow
Agent's  resignation or removal,  the provisions of this Escrow  Agreement shall
inure to its benefit as to any actions  taken or omitted to be taken by it while
it was Escrow Agent under this Escrow Agreement. The retiring Escrow Agent shall
transmit all records pertaining to the Escrow Funds and shall pay all funds held
by it in the Escrow Funds to the successor Escrow Agent,  after making copies of
such records as the retiring  Escrow Agent deems  advisable and after  deduction
and payment to the retiring  Escrow  Agent of all fees and  expenses  (including
court costs and  attorneys'  fees)  payable to,  incurred  by, or expected to be
incurred by the retiring  Escrow Agent in connection with the performance of its
duties and the exercise of its rights hereunder.

         10.      Liability of Escrow Agent.

                  a.       Escrow Agent shall have no  liability  or  obligation
with respect to the Escrow Funds except for Escrow Agent's willful misconduct or
gross  negligence.   Escrow  Agent's  sole  responsibility   shall  be  for  the
safekeeping, investment, and disbursement of the Escrow Funds in accordance with
the terms of this  Agreement.  Escrow  Agent  shall  have no  implied  duties or
obligations  and shall not be charged  with  knowledge  or notice or any fact or
circumstance not  specifically set forth herein.  Escrow Agent may rely upon any
instrument,  not only as to its due execution,  validity and effectiveness,  but
also as to the truth and accuracy of any information  contained  therein,  which
Escrow Agent shall in good faith  believe to be genuine,  to have been signed or
presented  by the person or parties  purporting  to sign the same and conform to
the provisions of this  Agreement.  In no event shall Escrow Agent be liable for
incidental,  indirect,  special,  and consequential or punitive damages.  Escrow
Agent shall not be obligated to take any legal action or commence any proceeding
in  connection  with the Escrow  Funds,  any account in which  Escrow  Funds are
deposited,  this Agreement or the Standby Equity Distribution  Agreement,  or to
appear in, prosecute or defend any such legal action or proceeding. Escrow Agent
may consult legal counsel selected by it in the event of any dispute or question
as to construction of any of the provisions  hereof or of any other agreement or
its duties hereunder, or relating to any dispute involving any party hereto, and
shall  incur no  liability  and shall be fully  indemnified  from any  liability
whatsoever  in acting in  accordance  with the opinion or  instructions  of such
counsel.  The Company and the Investor jointly and severally shall promptly pay,
upon  demand,  the  reasonable  fees and expenses of any such counsel and Escrow
Agent is hereby  authorized  to pay such fees and  expenses  from  funds held in
escrow.

                  b.       The Escrow  Agent is hereby  authorized,  in its sole
discretion,  to comply with orders  issued or process  entered by any court with
respect to the Escrow Funds,  without  determination by the Escrow Agent of such
court's jurisdiction in the matter. If any portion of the Escrow Funds is at any
time  attached,  garnished or levied upon under any court order,  or in case the
payment, assignment, transfer, conveyance or delivery of any such property shall
be stayed or enjoined by any court order,  or in any case any order  judgment or

                                       5
<PAGE>

decree shall be made or entered by any court affecting such property or any part
thereof, then and in any such event, the Escrow Agent is authorized, in its sole
discretion, to rely upon and comply with any such order, writ judgment or decree
which it is advised by legal counsel  selected by it,  binding upon it,  without
the need for appeal or other action;  and if the Escrow Agent  complies with any
such  order,  writ,  judgment  or  decree,  it shall not be liable to any of the
parties  hereto  or to any other  person or entity by reason of such  compliance
even though such order,  writ judgment or decree may be  subsequently  reversed,
modified, annulled, set aside or vacated.

         11.      Indemnification  of Escrow Agent.  From and at all times after
the date of this  Agreement,  the parties  jointly and severally,  shall, to the
fullest extent permitted by law and to the extent provided herein, indemnify and
hold harmless Escrow Agent and each director, officer, employee, attorney, agent
and affiliate of Escrow Agent (collectively,  the "Indemnified Parties") against
any  and  all  actions,   claims  (whether  or  not  valid),  losses,   damages,
liabilities,  costs and  expenses  of any kind or nature  whatsoever  (including
without limitation  reasonable  attorney's fees, costs and expenses) incurred by
or  asserted  against  any of the  Indemnified  Parties  from and after the date
hereof,  whether direct,  indirect or  consequential,  as a result of or arising
from or in any way relating to any claim,  demand,  suit,  action, or proceeding
(including  any  inquiry or  investigation)  by any  person,  including  without
limitation  the parties to this  Agreement,  whether  threatened  or  initiated,
asserting a claim for any legal or equitable remedy against any person under any
statute or  regulation,  including,  but not  limited  to, any  federal or state
securities  laws,  or under any  common  law or  equitable  cause or  otherwise,
arising from or in  connection  with the  negotiation,  preparation,  execution,
performance  or failure of  performance  of this  Agreement  or any  transaction
contemplated herein, whether or not any such Indemnified Party is a party to any
such  action  or  proceeding,  suit  or  the  target  of  any  such  inquiry  or
investigation; provided, however, that no Indemnified Party shall have the right
to be  indemnified  hereunder  for  liability  finally  determined by a court of
competent  jurisdiction,  subject to no further appeal,  to have resulted solely
from the gross negligence or willful  misconduct of such  Indemnified  Party. If
any such action or claim shall be brought or  asserted  against any  Indemnified
Party, such Indemnified Party shall promptly notify the Company and the Investor
hereunder in writing,  and the and the Company shall assume the defense thereof,
including  the  employment  of counsel  and the  payment of all  expenses.  Such
Indemnified  Party  shall,  in its sole  discretion,  have the  right to  employ
separate  counsel  (who may be  selected by such  Indemnified  Party in its sole
discretion)  in any such action and to  participate  and to  participate  in the
defense thereof, and the fees and expenses of such counsel shall be paid by such
Indemnified Party, except that the Investor and/or the Company shall be required
to pay such fees and expense if (a) the  Investor  or the  Company  agree to pay
such fees and  expenses,  or (b) the Investor  and/or the Company  shall fail to
assume the  defense of such  action or  proceeding  or shall  fail,  in the sole
discretion of such Indemnified Party, to employ counsel reasonably  satisfactory
to the Indemnified Party in any such action or proceeding,  (c) the Investor and
the Company are the  plaintiff in any such action or proceeding or (d) the named
or potential parties to any such action or proceeding (including any potentially
impleaded  parties)  include  both  Indemnified  Party the  Company  and/or  the
Investor and Indemnified Party shall have been advised by counsel that there may
be one or more  legal  defenses  available  to it which  are  different  from or
additional to those  available to the Company or the Investor.  The Investor and
the Company  shall be jointly and  severally  liable to pay fees and expenses of
counsel  pursuant to the preceding  sentence,  except that any obligation to pay
under  clause (a) shall apply only to the party so  agreeing.  All such fees and

                                       6
<PAGE>

expenses  payable by the Company  and/or the Investor  pursuant to the foregoing
sentence  shall be paid from time to time as  incurred,  both in  advance of and
after the final  disposition  of such action or claim.  The  obligations  of the
parties under this section shall survive any termination of this Agreement,  and
resignation  or  removal  of  the  Escrow  Agent  shall  be  independent  of any
obligation of Escrow Agent.

         12.      Expenses  of Escrow  Agent.  Except as set forth in Section 11
the Company shall reimburse Escrow Agent for all of its reasonable out-of-pocket
expenses,  including  attorneys' fees, travel expenses,  telephone and facsimile
transmission  costs,  postage  (including  express mail and  overnight  delivery
charges),  copying  charges  and the like as  outlined  in  Section  12.4 of the
Standby  Equity  Distribution  Agreement  dated  the  date  hereof.  All  of the
compensation  and  reimbursement  obligations set forth in this Section shall be
payable by the Company,  upon demand by Escrow  Agent.  The  obligations  of the
Company under this Section shall survive any  termination  of this Agreement and
the resignation or removal of Escrow Agent.

         13.      Warranties.

                  a.       The Investor makes the following  representations and
warranties to Butler Gonzalez LLP as the Escrow Agent and Investor's Counsel:

                           i.       The Investor has full power and authority to
execute and deliver this Agreement and to perform its obligations hereunder.

                           ii.      This Agreement has been duly approved by all
necessary  action of the  Investor,  including  any  necessary  approval  of the
limited partner of the Investor,  has been executed by duly authorized  officers
of the Investor's general partner, enforceable in accordance with its terms.

                           iii.     The execution,  delivery, and performance of
the Investor of this  Agreement  will not  violate,  conflict  with,  or cause a
default  under  the  agreement  of  limited  partnership  of the  Investor,  any
applicable law or regulation, any court order or administrative ruling or degree
to which the  Investor  is a party or any of its  property  is  subject,  or any
agreement, contract, indenture, or other binding arrangement.

                           iv.      Mark A.  Angelo has been duly  appointed  to
act as the representative of Investor hereunder and has full power and authority
to execute,  deliver,  and perform  this  Agreement,  to execute and deliver any
Joint  Written  Direction,  to amend,  modify,  or waive any  provision  of this
Agreement,   and  to  take  any  and  all  other   actions  as  the   Investor's
representative  under this  Agreement,  all without further consent or direction
form, or notice to, the Investor or any other party.

                           v.       No party other than the parties hereto have,
or shall have, any lien,  claim or security  interest in the Escrow Funds or any
part thereof.  No financing  statement  under the Uniform  Commercial Code is on
file in any jurisdiction  claiming a security interest in or describing (whether
specifically or generally) the Escrow Funds or any part thereof.

                                       7
<PAGE>

                           vi.      All of the representations and warranties of
the  Investor  contained  herein are true and complete as of the date hereof and
will be true and complete at the time of any disbursement from the Escrow Funds.

                  b.       The Company makes the following  representations  and
warranties to Escrow Agent and the Investor:

                           i.       The Company is a corporation duly organized,
validly  existing,  and in good standing  under the laws of the State of Nevada,
and has full power and  authority to execute and deliver this  Agreement  and to
perform its obligations hereunder.

                           ii.      This Agreement has been duly approved by all
necessary corporate action of the Company,  including any necessary  shareholder
approval,  has  been  executed  by  duly  authorized  officers  of the  Company,
enforceable in accordance with its terms.

                           iii.     The execution,  delivery, and performance by
the Company of this Escrow  Agreement is in accordance  with the Standby  Equity
Distribution  Agreement and will not violate,  conflict with, or cause a default
under the articles of incorporation or bylaws of the Company, any applicable law
or regulation,  any court order or administrative  ruling or decree to which the
Company  is a  party  or any of  its  property  is  subject,  or any  agreement,
contract, indenture, or other binding arrangement.

                           iv.      Marius  Silvasan has been duly  appointed to
act as the  representative  of the  Company  hereunder  and has full  power  and
authority  to execute,  deliver,  and  perform  this  Agreement,  to execute and
deliver any Joint Written Direction,  to amend, modify or waive any provision of
this  Agreement and to take all other  actions as the  Company's  Representative
under this  Agreement,  all without further consent or direction from, or notice
to, the Company or any other party.

                           v.       No party other than the parties hereto shall
have,  any lien,  claim or  security  interest  in the Escrow  Funds or any part
thereof.  No financing statement under the Uniform Commercial Code is on file in
any  jurisdiction  claiming  a  security  interest  in  or  describing  (whether
specifically or generally) the Escrow Funds or any part thereof.

                           vi.      All of the representations and warranties of
the  Company  contained  herein are true and  complete as of the date hereof and
will be true and complete at the time of any disbursement from the Escrow Funds.

         14.      Consent to Jurisdiction and Venue. In the event that any party
hereto commences a lawsuit or other proceeding  relating to or arising from this
Agreement,  the parties  hereto agree that the United States  District Court for
the District of New Jersey shall have the sole and exclusive  jurisdiction  over
any  such   proceeding.   If  all  such  courts  lack  federal   subject  matter
jurisdiction,  the parties agree that the Superior Court Division of New Jersey,
Chancery  Division of Hudson County shall have sole and exclusive  jurisdiction.
Any of these  courts  shall be proper  venue for any such  lawsuit  or  judicial
proceeding and the parties hereto waive any objection to such venue. The parties
hereto consent to and agree to submit to the  jurisdiction  of any of the courts
specified  herein  and agree to accept the  service of process to vest  personal
jurisdiction over them in any of these courts.

                                       8
<PAGE>

         15.      Notice. All notices and other  communications  hereunder shall
be in  writing  and  shall be  deemed  to have  been  validly  served,  given or
delivered  five (5) days after  deposit in the United  States mail, by certified
mail  with  return  receipt  requested  and  postage  prepaid,   when  delivered
personally,  one (1) day delivery to any overnight courier,  or when transmitted
by facsimile transmission and addressed to the party to be notified as follows:

If to Investor, to:        Cornell Capital Partners, LP
                           101 Hudson Street - Suite 3700
                           Jersey City, New Jersey 07302
                           Attention:  Mark Angelo
                           Facsimile:  (201) 985-8266

If to Escrow Agent, to:    Butler Gonzalez LLP
                           1416 Morris Avenue - Suite 207
                           Union, New Jersey 07083
                           Attention:  David Gonzalez, Esq.
                           Facsimile:  (908) 810-0973

If to Company, to:         Teleplus Enterprises Inc.
                           465 St. Jean - Suite 601
                           Montreal, Quebec H2Y 2R6
                           Attention:  Marius Silvasan, President
                           Telephone:  (514) 344-0778
                           Facsimile:  (514) 344-8675

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

         Or to such other address as each party may designate for itself by like
notice.

         16.      Amendments or Waiver.  This Agreement may be changed,  waived,
discharged or terminated  only by a writing  signed by the parties of the Escrow
Agent.  No delay or omission by any party in  exercising  any right with respect
hereto  shall  operate  as  waiver.  A waiver on any one  occasion  shall not be
construed as a bar to, or waiver of, any right or remedy on any future occasion.

         17.      Severability. To the extent any provision of this Agreement is
prohibited  by  or  invalid  under  applicable  law,  such  provision  shall  be
ineffective  to  the  extent  of  such  prohibition,   or  invalidity,   without
invalidating the remainder of such provision or the remaining provisions of this
Agreement.

                                       9
<PAGE>

         18.      Governing   Law.  This   Agreement   shall  be  construed  and
interpreted in accordance  with the internal laws of the State of Nevada without
giving effect to the conflict of laws principles thereof.

         19.      Entire  Agreement.   This  Agreement  constitutes  the  entire
Agreement  between  the  parties  relating  to  the  holding,   investment,  and
disbursement  of  the  Escrow  Funds  and  sets  forth  in  their  entirety  the
obligations and duties of the Escrow Agent with respect to the Escrow Funds.

         20.      Binding Effect. All of the terms of this Agreement, as amended
from  time to time,  shall be  binding  upon,  inure  to the  benefit  of and be
enforceable by the respective heirs, successors and assigns of the Investor, the
Company, or the Escrow Agent.

         21.      Execution  of  Counterparts.  This  Agreement  and  any  Joint
Written Direction may be executed in counter parts, which when so executed shall
constitute one and same agreement or direction.

         22.      Termination. Upon the first to occur of the termination of the
Standby Equity Distribution  Agreement dated the date hereof or the disbursement
of all  amounts in the  Escrow  Funds and Common  Stock into court  pursuant  to
Section 7 hereof,  this Agreement shall terminate and Escrow Agent shall have no
further obligation or liability whatsoever with respect to this Agreement or the
Escrow Funds or Common Stock.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       10
<PAGE>

         IN WITNESS  WHEREOF the parties have hereunto set their hands and seals
the day and year above set forth.

                                              TELEPLUS ENTERPRISES INC.

                                              By:  /s/ Marius Silvasan
                                                --------------------------------
                                              Name:  Marius Silvasan
                                              Title: President

                                              CORNELL CAPITAL PARTNERS, LP

                                              BY:  YORKVILLE ADVISORS, LLC
                                              ITS: GENERAL PARTNER

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

                                              BUTLER GONZALEZ LLP

                                              By:  /s/ David Gonzalez
                                                --------------------------------
                                              Name:  David Gonzalez, Esq.
                                              Title: Partner

                                       11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}]]