Document:

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                                                                  EXHIBIT 10.68

                        COMMON STOCK PURCHASE AGREEMENT

                  This COMMON STOCK PURCHASE AGREEMENT (this "Agreement") is
dated as of March 31, 2003 by and between Viragen, Inc., a Delaware corporation
(the "Company") and Talisman Management Limited (the "Purchaser").

                  Capitalized terms used in this Agreement and not otherwise
defined shall have the meanings ascribed to them in Article 9.

                  WHEREAS, the parties desire that, upon the terms and subject
to the conditions contained herein, the Company shall have the right to issue
and sell to Purchaser from time to time as provided herein, and Purchaser shall
be obligated to purchase up to $12,000,000 worth of shares of Common Stock
subject to the terms herein; and

                  WHEREAS, such investments will be made by the Purchaser as
statutory underwriter of a registered indirect primary offering of such Common
Stock by the Company.

                  NOW, THEREFORE, in consideration of the foregoing premises,
and the promises and covenants herein contained, the receipt and sufficiency of
which are hereby acknowledged by the parties hereto, the parties, intending to
be legally bound, hereby agree as follows:

                                   ARTICLE 1

                       PURCHASE AND SALE OF COMMON STOCK

                  Section 1.1.      Purchase and Sale of Stock. Upon the terms
and subject to the conditions of this Agreement, the Company may sell and issue
to the Purchaser and the Purchaser shall be obligated to purchase from the
Company, up to an aggregate of $12,000,000 worth of shares of Common Stock (the
"Commitment Amount") and the Warrant.

                  Section 1.2.      Purchase Price and Initial Closing. In
consideration of and in express reliance upon the representations, warranties,
covenants, terms and conditions of this Agreement, the Company agrees to issue
and sell to the Purchaser and the Purchaser agrees to purchase from the Company
that number of the Draw Down Shares to be issued in connection with each Draw
Down. The execution and delivery of this Agreement and the other agreements
referred to herein and the payment of the fees set forth in Article I of the
Escrow Agreement, attached as Exhibit B hereto, (the "Initial Closing") shall
take place at the offices of Feldman Weinstein LLP, 420 Lexington Avenue, Suite
2620, New York, New York 10170 (i) at 10:00 a.m. local time on March 31, 2003,
or (ii) at such other time and place or on such date as the Purchaser and the
Company may agree upon (the "Initial Closing Date"). Each party shall deliver
all

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documents, instruments and writings required to be delivered by such party
pursuant to this Agreement at or prior to the Initial Closing.

                                   ARTICLE 2

                         REPRESENTATIONS AND WARRANTIES

                  Section 2.1.      Representation and Warranties of the
Company. The Company hereby makes the following representations and warranties
to the Purchaser, in each case except as set forth in the SEC Documents or in
the Disclosure Letter prepared by the Company and delivered concurrently
herewith or as contemplated by this Agreement:

                           (a)      Organization, Good Standing and Power. The
         Company is a corporation duly incorporated, validly existing and in
         good standing under the laws of Delaware and has all requisite
         corporate authority to own, lease and operate its properties and
         assets and to carry on its business as now being conducted, except
         where the failure to be so incorporated or in good standing or to have
         such corporate authority would not have a Material Adverse Effect. The
         Company does not have any subsidiaries and does not own or control
         more than fifty percent (50%) of any other business entity. The
         Company is duly qualified to do business and is in good standing as a
         foreign corporation in each jurisdiction in which the nature of the
         business conducted or property owned by it makes such qualification
         necessary, other than those jurisdictions in which the failure so to
         qualify would not have a Material Adverse Effect.

                           (b)      Authorization, Enforcement. (i) The Company
         has the requisite corporate power and corporate authority to enter
         into and perform its obligations under the Transaction Documents and
         to issue the Draw Down Shares, (ii) the execution and delivery of the
         Transaction Documents by the Company and the consummation by it of the
         transactions contemplated hereby and thereby have been duly authorized
         by all necessary corporate action and no further consent or
         authorization of the Company or its Board of Directors or stockholders
         is required, and (iii) the Transaction Documents have been duly
         executed and delivered by the Company and shall constitute valid and
         binding obligations of the Company enforceable against the Company in
         accordance with their terms, except as such enforceability may be
         limited by applicable bankruptcy, insolvency, reorganization,
         fraudulent transfer, moratorium, liquidation, conservatorship,
         receivership or similar laws relating to, or affecting generally the
         enforcement of, creditors' rights and remedies or by other equitable
         principles of general application.

                           (c)      Capitalization. The authorized capital
         stock of the Company is as set forth on the Disclosure Letter. All of
         the outstanding shares of the Common Stock have been duly and validly
         authorized and are fully paid and non-assessable. No shares of Common
         Stock are entitled to preemptive rights or registration rights and
         there are no outstanding options, warrants, scrip, rights to subscribe
         to, calls or commitments of any character whatsoever relating to, or
         securities or rights convertible into, any shares of

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         capital stock of the Company. Furthermore, there are no contracts,
         commitments, understandings, or arrangements by which the Company is
         bound to issue additional shares of the capital stock of the Company
         or options, securities or rights convertible into shares of Common
         Stock. The Company is not a party to any agreement granting
         registration rights to any person with respect to any of its equity or
         debt securities. The Company is not a party to, and it has no
         knowledge of, any agreement restricting the voting or transfer of any
         shares of the capital stock of the Company. The offer and sale of all
         capital stock, convertible securities, rights, warrants, or options of
         the Company issued prior to the Initial Closing complied in all
         material respects with all applicable federal and state securities
         laws, and no stockholder has a right of rescission or damages with
         respect thereto which would have a Material Adverse Effect. The
         Company has made available to the Purchaser true and correct copies of
         the Company's certificate of incorporation as in effect on the date
         hereof (the "Charter"), and the Company's bylaws as in effect on the
         date hereof (the "Bylaws"). The Company has not received any notice
         from the Principal Market questioning or threatening the continued
         inclusion of the Common Stock on such market.

                           (d)      Issuance of Shares. The Warrant Shares to
         be issued upon exercise of the Warrant have been duly authorized by
         all necessary corporate action and, when paid for and issued in
         accordance with the terms hereof and the Warrant shall be validly
         issued and outstanding, fully paid and non-assessable, and the
         Purchaser shall be entitled to all rights accorded to a holder of
         Common Stock, when the Warrant is exercised in accordance with its
         terms.

                           (e)      No Conflicts. The execution, delivery and
         performance of this Agreement by the Company and the consummation by
         the Company of the transactions contemplated herein do not and will
         not (i) violate any provision of the Company's Charter or Bylaws, (ii)
         conflict with, or constitute a default (or an event which with notice
         or lapse of time or both would become a default) under, or give to
         others any rights of termination, amendment, acceleration or
         cancellation of, any agreement, mortgage, deed of trust, indenture,
         note, bond, license, lease agreement, instrument or obligation to
         which the Company is a party, (iii) create or impose a lien, charge or
         encumbrance on any property of the Company under any agreement or any
         commitment to which the Company is a party or by which the Company is
         bound or by which any of its respective properties or assets are
         bound, or (iv) result in a violation of any federal, state or local
         statute, rule, regulation, order, judgment or decree (including any
         federal or state securities laws and regulations) applicable to the
         Company or any of its subsidiaries or by which any property or asset
         of the Company or any of its subsidiaries are bound, except, in all
         cases, for such conflicts, defaults, termination, amendments,
         accelerations, cancellations and violations as would not, individually
         or in the aggregate, have a Material Adverse Effect. No consent,
         authorization or order of, or make any filing or registration with,
         any court or governmental agency is required by the Company in order
         for it to execute, deliver or perform any of its obligations under
         this Agreement, or issue and sell the Shares in accordance with the
         terms hereof (other than any filings which may be required to be made
         by the Company with the SEC, the Nasdaq Stock Market, Inc. or state
         securities administrators in connection with the Initial Closing and
         any registration statement which

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         may be filed pursuant hereto and such consents, authorizations, orders
         or filings which, if not obtained or made, would not be reasonably
         likely to have a Material Adverse Effect); provided, however, that for
         purpose of the representations made in this sentence, the Company is
         assuming and relying upon the accuracy of the relevant representations
         and agreements of the Purchaser herein.

                           (f)      SEC Documents, Financial Statements. The
         Common Stock is registered pursuant to Section 12(g) of the Exchange
         Act, and the Company has timely filed all reports, schedules, forms,
         statements and other documents required to be filed by it with the SEC
         pursuant to the reporting requirements of the Exchange Act, including
         material filed pursuant to Section 13(a) or 15(d) of the Exchange Act.
         The Company has not provided to the Purchaser any information which,
         according to applicable law, rule or regulation, should have been
         disclosed publicly by the Company but which has not been so disclosed,
         other than with respect to the transactions contemplated by this
         Agreement. As of their respective filing dates, the SEC Documents
         complied in all material respects with the applicable requirements of
         the Exchange Act or the Securities Act, as applicable, and the rules
         and regulations of the SEC promulgated thereunder applicable to such
         documents, and, as of their respective filing dates after giving
         effect to the information disclosed and incorporated by reference
         therein, none of the SEC Documents contained any untrue statement of a
         material fact or omitted to state a material fact required to be
         stated therein or necessary in order to make the statements therein,
         in light of the circumstances under which they were made, not
         misleading. As of their respective dates, the financial statements of
         the Company included in the SEC Documents complied as to form in all
         material respects with applicable accounting requirements under GAAP
         and the published rules and regulations of the SEC. Such financial
         statements have been prepared in accordance with GAAP applied on a
         consistent basis during the periods involved (except (i) as may be
         otherwise indicated in such financial statements or the notes thereto
         or (ii) in the case of unaudited interim financial statements, except
         as may be permitted by the SEC on Form 10-Q under the Exchange Act),
         and fairly present in all material respects the consolidated financial
         position of the Company and its subsidiaries as of the dates thereof
         and the consolidated results of operations and cash flows for the
         periods then ended (subject, in the case of unaudited statements, to
         normal year-end audit adjustments).

                           (g)      Subsidiaries. The SEC Documents set forth
         each subsidiary of the Company, showing the jurisdiction of its
         incorporation or organization and showing the percentage of the
         Company's ownership of the outstanding stock or other interests of
         such subsidiary. For the purposes of this Agreement, "subsidiary"
         shall mean any corporation or other entity of which at least a
         majority of the securities or other ownership interests having
         ordinary voting power (absolutely or contingently) for the election of
         directors or other persons performing similar functions are at the
         time owned directly or indirectly by the Company and/or any of its
         other subsidiaries. All of the issued and outstanding shares of
         capital stock of each subsidiary have been duly authorized and validly
         issued, and are fully paid and non-assessable. Neither the Company nor
         any subsidiary is subject to any obligation (contingent or otherwise)
         to repurchase or otherwise acquire or retire any shares of the capital
         stock of any subsidiary or any

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         convertible securities, rights, warrants or options of the type
         described in the preceding sentence.

                           (h)      No Material Adverse Effect. Since September
         30, 2002, no change, event, circumstance, development or effect that
         would have a Material Adverse Effect has occurred with respect to the
         Company.

                           (i)      No Undisclosed Liabilities. Since September
         30, 2002, neither the Company nor any of its subsidiaries has incurred
         any liabilities, obligations, claims or losses (whether liquidated or
         unliquidated, secured or unsecured, absolute, accrued, contingent or
         otherwise) that would be required to be disclosed on a balance sheet
         of the Company or any subsidiary (including the notes thereto) in
         conformity with GAAP or which would be required to be disclosed in the
         SEC Documents, other than those incurred in the ordinary course of the
         Company's or its subsidiaries' respective businesses since such date
         and which, individually or in the aggregate, do not or would not have
         a Material Adverse Effect.

                           (j)      No Undisclosed Events or Circumstances.
         Since September 30, 2002, no event or circumstance has occurred or
         exists with respect to the Company or its businesses, properties,
         operations or financial condition, that, under applicable law, rule or
         regulation, requires public disclosure or announcement prior to the
         date hereof by the Company but which has not been so publicly
         announced or disclosed in the SEC Documents and which individually or
         in the aggregate, do not or would not have a Material Adverse Effect.

                           (k)      Indebtedness. The SEC Documents or the
         Disclosure Letter sets forth as of the date hereof all outstanding
         secured and unsecured Indebtedness of the Company or any subsidiary,
         or for which the Company or any subsidiary has commitments. For the
         purposes of this Agreement, "Indebtedness" shall mean (A) any
         liabilities for borrowed money or amounts owed in excess of $500,000
         (other than trade accounts payable incurred in the ordinary course of
         business), (B) all guaranties, endorsements and contingent obligations
         in respect of Indebtedness of others, whether or not the same are or
         should be reflected in the Company's balance sheet (or the notes
         thereto), except guaranties by endorsement of negotiable instruments
         for deposit or collection or similar transactions in the ordinary
         course of business; and (C) the present value of any lease payments in
         excess of $500,000 due under leases required to be capitalized in
         accordance with GAAP. Neither the Company nor any subsidiary is in
         default with respect to any Indebtedness.

                           (l)      Title to Assets. Each of the Company and
         the subsidiaries has good and marketable title to all of its real and
         personal property reflected in the SEC Documents, free of any
         mortgages, pledges, charges, liens, security interests or other
         encumbrances, except for those that do not have a Material Adverse
         Effect. All said leases with respect to real property leased by the
         Company and each of its subsidiaries as set forth in the SEC Documents
         are valid and subsisting and in full force and effect.

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                           (m)      Actions Pending. As of the date hereof,
         there is no action, suit, claim, investigation or proceeding pending
         or, to the knowledge of the Company, threatened against the Company or
         any subsidiary which questions the validity of this Agreement or the
         transactions contemplated hereby or any action taken or to be taken
         pursuant hereto or thereto. There is no action, suit, claim,
         investigation or proceeding pending or, to the knowledge of the
         Company, threatened, against or involving the Company, any subsidiary
         or any of their respective properties or assets, except as would not
         have a Material Adverse Effect. Except as would not have a Material
         Adverse Effect, there are no outstanding orders, judgments,
         injunctions, awards or decrees of any court, arbitrator or
         governmental or regulatory body against the Company or any subsidiary.

                           (n)      Compliance with Law. The Company and each
         of its subsidiaries has complied with and is not in violation of any
         applicable provision of any statute, law or regulation with respect to
         the conduct of its business except for failures to comply or
         violations that would not have a Material Adverse Effect and have all
         franchises, permits, licenses, consents and other governmental or
         regulatory authorizations and approvals necessary for the conduct of
         their respective businesses as now being conducted by them except for
         franchises, permits, licenses, consents and other governmental or
         regulatory authorizations and approvals, the failure to possess which,
         individually or in the aggregate, could not reasonably be expected to
         have a Material Adverse Effect.

                           (o)      Taxes. The Company and each subsidiary has
         filed all material Tax Returns which it is required to file under
         applicable laws and the Company or a subsidiary has paid all material
         Taxes due and owing by it or any subsidiary (whether or not such
         material Taxes are required to be shown on a Tax Return) and has
         withheld and paid over to the appropriate taxing authorities all
         material Taxes which it is required to withhold from amounts paid or
         owing to any employee, stockholder, creditor or other third parties;
         and since December 31, 2001, the charges, accruals and reserves for
         material Taxes with respect to the Company (including any provisions
         for deferred income taxes) reflected on the books of the Company are
         in the aggregate adequate to cover any material Tax liabilities of the
         Company if its current tax year were treated as ending on the date
         hereof.

                           No material written claim has been made by a taxing
         authority in a jurisdiction where the Company does not file tax
         returns that the Company or any subsidiary is or may be subject to
         taxation by that jurisdiction. Except as would not have a Material
         Adverse Effect, (i) to the best of the Company's knowledge there are
         no foreign, federal, state or local tax audits or administrative or
         judicial proceedings pending or being conducted with respect to the
         Company or any subsidiary; (ii) no information related to Tax matters
         has been requested by any foreign, federal, state or local taxing
         authority; and, (iii) except as disclosed above, no written notice
         indicating an intent to open an audit or other review has been
         received by the Company or any subsidiary from any foreign, federal,
         state or local taxing authority.

                           For purposes of this Section 2.1(o):

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                           "Tax" or "Taxes" means federal, state, county,
                           local, foreign, or other income, gross receipts, ad
                           valorem, franchise, profits, sales or use, transfer,
                           registration, excise, utility, environmental,
                           communications, real or personal property, capital
                           stock, license, payroll, wage or other withholding,
                           employment, social security, severance, stamp,
                           occupation, alternative or add-on minimum, estimated
                           and other taxes of any kind whatsoever (including,
                           without limitation, deficiencies, penalties,
                           additions to tax, and interest attributable thereto)
                           whether disputed or not.

                           "Tax Return" means any return, information report or
                           filing with respect to Taxes, including any
                           schedules attached thereto and including any
                           amendment thereof.

                           (p)      Certain Fees. No brokers, finders or
         financial advisory fees or commissions will be payable by the Company
         or any subsidiary with respect to the transactions contemplated by
         this Agreement.

                           (q)      Operation of Business. The Company and each
         of the subsidiaries owns or possesses all patents, trademarks, service
         marks, trade names, copyrights, licenses and authorizations as set
         forth in the SEC Documents or on the Disclosure Letter hereto, and all
         rights with respect to the foregoing, which are necessary for the
         conduct of its business as now conducted and, to the Company's
         knowledge, without any conflict with the rights of others.

                           (r)      Insurance. The Company maintains insurance
         in such amounts and covering such risks as is adequate in all material
         respects for the conduct of its business and the value of its
         properties and as is customary for companies engaging in similar
         businesses and similar industries.

                           (s)      Books and Records. The financial records of
         the Company and its subsidiaries accurately reflect in all material
         respects the information relating to the business of the Company and
         the subsidiaries, the location and collection of their assets, and the
         nature of all transactions giving rise to the obligations or accounts
         receivable of the Company or any subsidiary.

                           (t)      Material Agreements. Neither the Company
         nor any subsidiary is a party to any Material Agreement. Except as
         would not have a Material Adverse Effect, the Company and each of its
         subsidiaries has performed all the obligations required to be
         performed by them to date under the Material Agreements, have received
         no notice of default and, to the best of the Company's knowledge are
         not in default under any Material Agreement now in effect, the result
         of which would cause a Material Adverse Effect. No written or oral
         contract, instrument, agreement, commitment, obligation, plan or
         arrangement of the Company or of any subsidiary limits the payment of
         dividends on the Common Stock.

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                           (u)      Transactions with Affiliates. There are no
         material loans, leases, agreements, contracts, royalty agreements,
         management contracts or arrangements or other continuing transactions
         exceeding $100,000 between (A) the Company or any subsidiary on the
         one hand, and (B) on the other hand, any officer, employee, consultant
         or director of the Company, or any of its subsidiaries, or any person
         owning 5% or more of the capital stock of the Company or any
         subsidiary or any member of the immediate family of such officer,
         employee, consultant, director or stockholder or any corporation or
         other entity controlled by such officer, employee, consultant,
         director or stockholder, or a member of the immediate family of such
         officer, employee, consultant, director or stockholder.

                           (v)      Securities Laws. The Company has complied
         in all material respects with all applicable federal and state
         securities laws in connection with the offer, issuance and sale of the
         Shares hereunder. Neither the Company nor anyone acting on its behalf,
         directly or indirectly, has sold, offered to sell or solicited offers
         to buy the Shares or similar securities to, or solicited offers with
         respect thereto from, or entered into any preliminary conversations or
         negotiations relating thereto with, any person (other than the
         Purchaser), so as to bring the issuance and sale of the Shares under
         the registration provisions of the Securities Act and applicable state
         securities laws. Neither the Company nor any of its Affiliates, nor
         any person acting on its or their behalf, has engaged in any form of
         general solicitation or general advertising (within the meaning of
         Regulation D under the Securities Act) in connection with the offer or
         sale of the Shares (except to the extent that the filing of the
         Registration Statement with the SEC may be so construed).

                           (w)      Employees. Neither the Company nor any
         subsidiary has any collective bargaining arrangements or agreements
         covering any of its employees. Neither the Company nor any subsidiary
         is in breach of any employment contract, agreement regarding
         proprietary information, noncompetition agreement, nonsolicitation
         agreement, confidentiality agreement, or any other similar contract or
         restrictive covenant to which the Company is a party, relating to the
         right of any officer, employee or consultant to be employed or engaged
         by the Company or such subsidiary, except for any such breach which
         would not reasonably be expected to have a Material Adverse Effect.
         Since September 30, 2002, no officer, consultant or key employee of
         the Company or any subsidiary whose termination, either individually
         or in the aggregate, would reasonably be expected to have a Material
         Adverse Effect, has terminated or, to the knowledge of the Company,
         has any present intention of terminating his or her employment or
         engagement with the Company or any subsidiary.

                           (x)      Absence of Certain Developments. Except as
         would not have a Material Adverse Effect, since September 30, 2002,
         neither the Company nor any subsidiary has:

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                                    (i)      issued any stock, bonds or other
                  corporate securities or any rights, options or warrants with
                  respect thereto (other than pursuant to equity incentive
                  plans or arrangements adopted by the Company);

                                    (ii)     borrowed any material amount or
                  incurred or become subject to any material liabilities
                  (absolute or contingent) except liabilities incurred in the
                  ordinary course of business;

                                    (iii)    discharged or satisfied any lien
                  or encumbrance or paid any material obligation or liability
                  (absolute or contingent), other than liabilities paid in the
                  ordinary course of business;

                                    (iv)     declared or made any payment or
                  distribution of cash or other property to stockholders with
                  respect to its stock, or purchased or redeemed, or made any
                  agreements so to purchase or redeem, any shares of its
                  capital stock;

                                    (v)      suffered any material losses
                  (except for anticipated losses consistent with prior
                  quarters) or waived any rights of material value, whether or
                  not in the ordinary course of business, or suffered the loss
                  of any material amount of prospective business;

                                    (vi)     made any material changes in
                  employee compensation except in the ordinary course of
                  business and consistent with past practices;

                                    (vii)    made capital expenditures or
                  commitments therefor that aggregate in excess of $500,000;

                                    (viii)   entered into any other Material
                  Agreements, whether or not in the ordinary course of
                  business;

                                    (ix)     suffered any material damage,
                  destruction or casualty loss, whether or not covered by
                  insurance; or

                                    (x)      experienced any material problems
                  with labor or management in connection with the terms and
                  conditions of their employment.

                           (aa)     Acknowledgment Regarding the Purchaser's
         Purchase of Shares. Company acknowledges and agrees that the Purchaser
         is acting solely in the capacity of arm's length purchaser with
         respect to this Agreement and the transactions contemplated hereunder.
         The Company further acknowledges that the Purchaser is not acting as a
         financial advisor or fiduciary of the Company (or in any similar
         capacity) with respect to this Agreement and the transactions
         contemplated hereunder.

                  Section 2.2.      Representations and Warranties of the
Purchaser. The Purchaser hereby makes the following representations and
warranties to the Company:

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                           (a)      Organization and Standing of the Purchaser.
         The Purchaser is a corporation duly incorporated, validly existing and
         in good standing under the laws of the British Virgin Islands.

                           (b)      Authorization and Power. The Purchaser has
         the requisite power and authority and financial resources to enter
         into and perform the Transaction Documents and to purchase the Shares
         being sold to it hereunder. The execution, delivery and performance of
         the Transaction Documents by the Purchaser and the consummation by it
         of the transactions contemplated hereby and thereby have been duly
         authorized by all necessary corporate action. The Transaction
         Documents have been duly executed and delivered by the Purchaser, and
         constitute valid and binding obligations of the Purchaser enforceable
         against the Purchaser in accordance with their terms, except as such
         enforceability may be limited by applicable bankruptcy, insolvency,
         reorganization, moratorium, liquidation, conservatorship, receivership
         or similar laws relating to, or affecting generally the enforcement
         of, creditors' rights and remedies or by other equitable principles of
         general application

                           (c)      No Conflicts. The execution, delivery and
         performance of this Agreement by the Purchaser and the consummation by
         the Purchaser of the transactions contemplated herein do not and will
         not (i) violate any provision of the Purchaser's charter or bylaws,
         (ii) conflict with, or constitute a default (or an event which with
         notice or lapse of time or both would become a default) under, or give
         to others any rights of termination, amendment, acceleration or
         cancellation of, any agreement, mortgage, deed of trust, indenture,
         note, bond, license, lease agreement, instrument or obligation to
         which the Purchaser is a party, (iii) create or impose a lien, charge
         or encumbrance on any property of the Purchaser under any agreement or
         any commitment to which the Purchaser is a party or by which the
         Purchaser is bound or by which any of its respective properties or
         assets are bound, or (iv) result in a violation of any federal, state
         or local statute, rule, regulation, order, judgment or decree
         (including any federal or state securities laws and regulations)
         applicable to the Purchaser or any of its subsidiaries or by which any
         property or asset of the Purchaser or any of its subsidiaries are
         bound, except, in all cases, for such conflicts, defaults,
         termination, amendments, accelerations, cancellations and violations
         as would not, individually or in the aggregate, have a Purchaser
         Material Adverse Effect on the Purchaser. No consent, authorization or
         order of, or make any filing or registration with, any court or
         governmental agency is required by the Purchaser in order for it to
         execute, deliver or perform any of its obligations under this
         Agreement, or purchase the Shares in accordance with the terms hereof.

                           (d)      Financial Risks. The Purchaser acknowledges
         that it is able to bear the financial risks associated with an
         investment in the Shares and the Warrants and that it has been given
         full access to such records of the Company and the subsidiaries and to
         the officers of the Company and the subsidiaries as it has deemed
         necessary or appropriate to conduct its due diligence investigation.
         The Purchaser is capable of evaluating the risks and merits of an
         investment in the Shares and the Warrants by virtue of its experience
         as an investor and its knowledge, experience, and sophistication in

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         financial and business matters and the Purchaser is capable of bearing
         the entire loss of its investment in the Shares and the Warrants.

                           (e)      Accredited Investor. The Purchaser is an
         "accredited investor" as defined in Regulation D promulgated under the
         Securities Act.

                           (f)      General. The Purchaser understands that the
         Company is relying upon the truth and accuracy of the representations,
         warranties, agreements, acknowledgments and understandings of the
         Purchaser set forth herein in order to determine the suitability of
         the Purchaser to acquire the Shares.

                           (g)      Actions Pending. As of the date hereof,
         there is no action, suit, claim, investigation or proceeding pending
         or, to the knowledge of the Purchaser, threatened against the
         Purchaser which questions the validity of this Agreement or the
         transactions contemplated hereby or any action taken or to be taken
         pursuant thereto. There is no action, suit, claim, investigation or
         proceeding pending or, to the knowledge of the Purchaser, threatened,
         against or involving the Purchaser, or any of their respective
         properties or assets, except as would not have a Purchaser Material
         Adverse Effect. Except as would not have a Purchaser Material Adverse
         Effect, there are no outstanding orders, judgments, injunctions,
         awards or decrees of any court, arbitrator or governmental or
         regulatory body against the Purchaser.

                           (h)      Investment Intent. The Purchaser is
         acquiring the Shares and the Warrants as principal for its own account
         for investment purposes only and not with a view to or for
         distributing or reselling such securities or any part thereof, without
         prejudice, however, to the Purchaser's right, subject to the
         provisions of this Agreement, at all times to sell or otherwise
         dispose of all or any part of the Shares and the Warrants pursuant to
         an effective registration statement under the Securities Act or under
         an exemption from such registration and in compliance with applicable
         federal and state securities laws. Nothing contained herein shall be
         deemed a representation or warranty by such Purchaser to hold the
         Shares or Warrants for any period of time.

                                   ARTICLE 3

                                   COVENANTS

                  The Company covenants with the Purchaser as follows:

                  Section 3.1.      The Shares. As of the date of each
applicable Draw Down Notice, the Company will have authorized and reserved,
free of preemptive rights and other similar contractual rights of stockholders,
a sufficient number of its authorized but unissued shares of its Common Stock
to cover the Draw Down Shares to be issued in connection with such Draw Down
requested under this Agreement. The Draw Down Shares to be issued under this
Agreement, when paid for and issued in accordance with the terms hereof, shall
be duly and validly issued and

                                      11
<PAGE>
outstanding, fully paid and non-assessable, and the Purchaser shall be entitled
to all rights accorded to a holder of Common Stock. Anything in this Agreement
to the contrary notwithstanding, (i) at no time will the Company request a Draw
Down which would result in the issuance of an aggregate number of shares of
Common Stock pursuant to this Agreement which exceeds 19.9% of the number of
shares of Common Stock issued and outstanding on the date hereof without first
obtaining stockholder approval of such excess issuance, or such other amount as
would require stockholder approval under rules of the Principal Market or
otherwise without first obtaining stockholder approval of such excess issuance,
and (ii) the Company may not make a Draw Down to the extent that such Draw Down
exceeds 4.999% of the then outstanding shares of Common Stock.

                  Section 3.2.      Securities Compliance. If applicable, the
Company shall notify the Principal Market, in accordance with its rules and
regulations, of the transactions contemplated by this Agreement, and shall take
all other necessary action and proceedings as may be required and permitted by
applicable law, rule and regulation, for the legal and valid issuance of the
Shares and the Warrants to the Purchaser.

                  Section 3.3.      Registration and Listing. The Company will
use its commercially reasonable best efforts to cause its Common Stock to
continue to be registered under Section 12(g) of the Exchange Act, will comply
in all respects with its reporting and filing obligations under the Exchange
Act, will comply with all requirements related to any registration statement
filed pursuant to this Agreement, and will not voluntarily take any action or
file any document (whether or not permitted by the Securities Act or the
Exchange Act or the rules promulgated thereunder) to terminate or suspend such
registration or to terminate or suspend its reporting and filing obligations
under the Exchange Act or Securities Act, except as permitted herein. The
Company will use its commercially reasonable best efforts to continue the
listing or trading of its Common Stock on the Principal Market and will comply
in all respects with the Company's reporting, filing and other obligations
under the bylaws or rules of the Principal Market and shall provide the
Purchaser's counsel with copies of any correspondence to or from such Principal
Market which questions or threatens delisting of the Common Stock, within three
(3) Trading Days of the Company's receipt thereof.

                  Section 3.4.      Escrow Arrangement. The Company and the
Purchaser shall enter into an escrow arrangement with Feldman Weinstein LLP
(the "Escrow Agent") in the form of Exhibit B hereto respecting payment against
delivery of the Draw Down Shares.

                  Section 3.5.      Registration Rights Agreement. The Company
and the Purchaser shall enter into the Registration Rights Agreement in the
Form of Exhibit A hereto. Before the Purchaser shall be obligated to accept a
Draw Down request from the Company, the Company shall have caused a sufficient
number of shares of Common Stock to be registered to cover the Draw Down Shares
to be issued in connection with such Draw Down.

                  Section 3.6.      Accuracy of Registration Statement.On each
Settlement Date, the Registration Statement and the prospectus therein shall
not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary in order to

                                      12
<PAGE>
make the statements therein not misleading in light of the circumstances under
which they were made; and on such Settlement Date the Registration Statement
and the prospectus therein will not include any untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading; provided, however, the Company makes no representations or
warranties as to the information contained in or omitted from the Registration
Statement and the prospectus therein in reliance upon and in conformity with
the information furnished in writing to the Company by the Purchaser
specifically for inclusion in the Registration Statement and the prospectus
therein.

                  Section 3.7.      Compliance with Laws. The Company shall
comply, and cause each subsidiary to comply, with all applicable laws, rules,
regulations and orders, noncompliance with which would reasonably be expected
to have a Material Adverse Effect.

                  Section 3.8.      Keeping of Records and Books of Account.
The Company shall keep and cause each subsidiary to keep adequate records and
books of account, in which entries that are complete in all material respects
will be made in accordance with GAAP consistently applied, reflecting all
financial transactions of the Company and its subsidiaries, and in which, for
each fiscal year, all proper reserves for depreciation, depletion,
obsolescence, amortization, taxes, bad debts and other purposes in connection
with its business shall be made.

                  Section 3.9.      Notice of Certain Events Affecting
Registration; Suspension of Right to Request a Draw Down. THE COMPANY WILL
PROMPTLY NOTIFY THE PURCHASER IN WRITING UPON THE OCCURRENCE OF ANY OF THE
FOLLOWING EVENTS IN RESPECT OF THE REGISTRATION STATEMENT OR RELATED PROSPECTUS
IN RESPECT OF THE SHARES: (i) receipt of any request for additional information
from the SEC or any other federal or state governmental authority during the
period of effectiveness of the Registration Statement the response to which
would require any amendments or supplements to the Registration Statement or
related prospectus; (ii) the issuance by the SEC or any other federal or state
governmental authority of any stop order suspending the effectiveness of the
Registration Statement or the initiation of any proceedings for that purpose;
(iii) receipt of any notification with respect to the suspension of the
qualification or exemption from qualification of any of the Shares for sale in
any jurisdiction in which the Purchaser is entitled to sell the Shares
hereunder or the receipt of notice with respect to the initiation of any
proceeding for such purpose; (iv) becoming aware that any statement made in the
Registration Statement or related prospectus or any document incorporated or
deemed to be incorporated therein by reference is untrue in any material
respect or requires the making of any changes in the Registration Statement,
related prospectus or documents so that, in the case of the Registration
Statement, it will not contain any untrue statement of a material fact or omit
to state any material fact required to be stated therein or necessary to make
the statements therein not misleading, and that in the case of the related
prospectus, it will not contain any untrue statement of a material fact or omit
to state any material fact required to be stated therein or necessary to make
the statements therein, in the light of the circumstances under which they were
made, not misleading; and (v) the Company's determination that the filing of a
post-effective amendment to or withdrawal of the Registration Statement is
required. The Company shall not deliver to the Purchaser any Draw Down Notice
during the continuation of any of the foregoing events. The Company shall
promptly make available to the Purchaser any such supplements or amendments to
the related prospectus, at which time, provided that the registration statement
and any supplements and

                                      13
<PAGE>
amendments thereto are then effective, the Company may recommence the delivery
of Draw Down Notices.

                  Section 3.10.     Consolidation; Merger. The Company shall
not, at any time prior to the termination of this Agreement, effect any merger
or consolidation of the Company with or into, or a transfer of all or
substantially all of the assets of the Company to, another entity (a
"Consolidation Event") unless the resulting successor or acquiring entity (if
not the Company) assumes by written instrument or by operation of law the
obligation to deliver to the Purchaser such shares of Common Stock and/or
securities as the Purchaser is entitled to receive pursuant to this Agreement.

                  Section 3.11.     Non-Public Information. The Company
covenants and agrees that neither it nor any other Person acting on its behalf
will provide the Purchaser or its agents or counsel with any information that
the Company believes constitutes material non-public information, unless prior
thereto such Purchaser shall have executed a written agreement regarding the
confidentiality and use of such information. The Company understands and
confirms that each Purchaser shall be relying on the foregoing representations
in effecting transactions in securities of the Company.

                  The Purchaser covenants with the Company as follows:

                  Section 3.12.     Prospectus Delivery Requirements. The
Purchaser agrees that it will, whenever required by federal securities laws,
deliver the Prospectus included in the Registration Statement to any purchaser
of Draw Down Shares from the Purchaser in such manner as is required under the
federal securities laws.

                                   ARTICLE 4

                  CONDITIONS TO INITIAL CLOSING AND DRAW DOWNS

                  Section 4.1.      Conditions Precedent to the Obligation of
the Company and to Sell the Shares. The obligation hereunder of the Company to
proceed to close this Agreement and to issue and sell the Shares to the
Purchaser is subject to the satisfaction or waiver, at or before the Initial
Closing, and as of each Settlement Date of each of the conditions set forth
below. These conditions are for the Company's sole benefit and may be waived by
the Company in writing at any time in its sole discretion.

                           (a)      Accuracy of the Purchaser's Representations
         and Warranties. The representations and warranties of the Purchaser
         shall be true and correct in all material respects as of the date when
         made and as of the Initial Closing and as of each Settlement Date as
         though made at that time (except for representations and warranties
         that speak as of a particular date, which shall be true and correct in
         all material respects as of such dates).

                                      14
<PAGE>
                           (b)      Performance by the Purchaser. The Purchaser
         shall have performed, satisfied and complied in all material respects
         with all covenants, agreements and conditions required by this
         Agreement to be performed, satisfied or complied with by the Purchaser
         at or prior to the Initial Closing and as of each Settlement Date.

                           (c)      No Injunction. No statute, rule,
         regulation, executive order, decree, ruling or injunction shall have
         been enacted, entered, promulgated or endorsed by any court or
         governmental authority of competent jurisdiction which prohibits the
         consummation of any of the transactions contemplated by this
         Agreement.

                           (d)      No Proceedings or Litigation. No material
         action, suit or proceeding before any arbitrator or any governmental
         authority shall have been commenced against the Purchaser or the
         Company or any subsidiary, or any of the officers, directors or
         affiliates of the Company or any subsidiary, seeking to restrain,
         prevent or change the transactions contemplated by this Agreement, or
         seeking damages in connection with such transactions.

                  Section 4.2.      Conditions Precedent to the Obligation of
the Purchaser to Close. The obligation hereunder of the Purchaser to perform
its obligations under this Agreement and to purchase the Shares is subject to
the satisfaction or waiver, at or before the Initial Closing, of each of the
conditions set forth below. These conditions are for the Purchaser's sole
benefit and may be waived by the Purchaser in writing at any time in its sole
discretion.

                           (a)      Accuracy of the Company's Representations
         and Warranties. Each of the representations and warranties of the
         Company shall be true and correct in all material respects as of the
         date when made and as of the Initial Closing as though made at that
         time (except for representations and warranties that speak as of a
         particular date, which shall be true and correct in all material
         respects as of such date).

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

                           (c)      No Injunction. No statute, rule,
         regulation, executive order, decree, ruling or injunction shall have
         been enacted, entered, promulgated or endorsed by any court or
         governmental authority of competent jurisdiction which prohibits the
         consummation of any of the transactions contemplated by this
         Agreement.

                           (d)      No Proceedings or Litigation. No material
         action, suit or proceeding before any arbitrator or any governmental
         authority shall have been commenced, against the Purchaser or the
         Company or any subsidiary, or any of the officers, directors or
         affiliates of the Company or any subsidiary seeking to restrain,
         prevent or change the transactions contemplated by this Agreement, or
         seeking damages in connection with such transactions.

                                      15
<PAGE>
                           (e)      Opinion of Counsel, Etc. At the Initial
         Closing, the Purchaser shall have received an opinion of counsel to
         the Company, dated as of the Initial Closing Date, in the form of
         Exhibit C hereto.

                           (f)      Warrants. On the Initial Closing Date, the
         Company shall issue to the Purchaser a warrant to purchase up to
         12,000,000 shares of Common Stock (the "Warrants"). The Warrants shall
         be exercisable for the period of 5 years beginning immediately upon
         issuance. The exercise price of the Warrants shall be $0.10, subject
         to adjustment therein. The Warrants shall be in the form of Exhibit E
         hereto.

                  Section 4.3.      Conditions Precedent to the Obligation of
the Purchaser to Accept a Draw Down and Purchase the Shares. The obligation
hereunder of the Purchaser to accept a Draw Down request and to acquire and pay
for the Shares is subject to the satisfaction at or before each Settlement
Date, of each of the conditions set forth below.

                           (a)      Satisfaction of Conditions to Initial
         Closing. The Company shall have satisfied at the Initial Closing, or
         the Purchaser shall have waived at the Initial Closing, the conditions
         set forth in Section 4.2 hereof

                           (b)      Effective Registration Statement. The
         Registration Statement registering the Shares to be delivered in
         connection with the applicable Draw Down shall have been declared
         effective by the SEC and shall remain effective during the applicable
         Draw Down Pricing Period and on the applicable Settlement Date.

                           (c)      No Suspension. Trading in the Common Stock
         shall not have been suspended by the SEC or the Principal Market
         (except for any suspension of trading of limited duration agreed to by
         the Company, which suspension shall be terminated prior to the
         delivery of each Draw Down Notice), and, at any time prior to such
         Draw Down Notice, trading in securities generally as reported on the
         Principal Market shall not have been suspended or limited, or minimum
         prices shall not have been established on securities whose trades are
         reported on the Principal Market unless the general suspension or
         limitation shall have been terminated prior to the delivery of such
         Draw Down Notice.

                           (d)      Material Adverse Effect. No Material
         Adverse Effect and no Consolidation Event where the successor entity
         has not agreed to deliver to the Purchaser such shares of stock and/or
         securities as the Purchaser is entitled to receive pursuant to this
         Agreement, such occurrences to be determined in accordance with
         Section 8.9 herein.

                           (e)      Opinion of Counsel. The Purchaser shall
         have received a "bring-down" letter from the Company's counsel,
         confirming that there is no change from the counsel's previously
         delivered opinion, or else specifying with particularity the reason
         for any change and an opinion as to the additional items specified in
         Exhibit C hereto.

                                      16
<PAGE>
                                   ARTICLE 5

                                DRAW DOWN TERMS

                  Section 5.1.      Draw Down Terms. Subject to the
satisfaction of the conditions set forth in this Agreement, the parties agree
as follows:

                           (a)      The Company may, in its sole discretion,
         issue and exercise draw downs against the Commitment Amount (each a
         "Draw Down") during the Commitment Period, which Draw Downs the
         Purchaser shall be obligated to accept, subject to the terms and
         conditions herein.

                           (b)      Only one Draw Down shall be allowed in each
         Draw Down Pricing Period and the Company may not exercise a Draw Down
         until the applicable Trading Cushion has elapsed since the end of the
         previous Draw Down Pricing Period. The number of shares of Common
         Stock purchased by the Purchaser with respect to each Draw Down shall
         be determined as set forth in Section 5.1(e) herein and settled on or
         before the 3rd Trading Day immediately after the Draw Down Pricing
         Period (each such settlement period and each such settlement date
         referred to as a "Settlement Period" and a "Settlement Date",
         respectively).

                           (c)      In connection with each Draw Down Pricing
         Period, the Company may set the Threshold Price in the Draw Down
         Notice.

                           (d)      The minimum Investment Amount for any Draw
         Down shall be $50,000 and the maximum Investment Amount as to each
         Draw Down shall be equal to the lesser of (i) $400,000 and (ii) 2.5%
         of the average of the VWAPs for the 60 Trading Days immediately prior
         to the applicable Commencement Date (defined below) multiplied by the
         total aggregate trading volume in respect of the Common Stock for such
         period. Notwithstanding anything herein to the contrary, in the event
         the minimum Investment Amount is greater than the maximum Investment
         Amount, as to such Draw Down only, such minimum Investment Amount
         shall equal the maximum Investment Amount, but in no event shall the
         minimum Investment Amount be less than $25,000, such that if the
         maximum Investment Amount is less than $25,000, then the Company shall
         be precluded from exercising a Draw Down at such time.

                           (e)      The number of Shares of Common Stock to be
         issued on each Settlement Date shall be a number of shares equal to
         the sum of the quotients (for each Trading Day within the Draw Down
         Pricing Period) of (x) 1/10th of the Investment Amount, and (y) the
         Purchase Price on each Trading Day within the Draw Down Pricing
         Period, subject to the following adjustments:

                                    (i)      if the VWAP on a given Trading Day
                  is less than the Threshold Price, then that portion of the
                  Investment Amount to be paid on the immediately pending
                  Settlement Date shall be reduced by 1/10th of the Investment

                                      17
<PAGE>
                  Amount and such Trading Day shall be withdrawn from the Draw
                  Down Pricing Period; and

                                    (ii)     if during any Trading Day during
                  the Draw Down Pricing Period trading of the Common Stock on
                  the Principal Market is suspended for more than 3 hours, in
                  the aggregate, or if any Trading Day during the Draw Down
                  Pricing Period is shortened because of a public holiday, then
                  that portion of the Investment Amount to be paid on the
                  immediately pending Settlement Date shall be reduced by
                  1/10th of the Investment Amount for each such suspension and
                  such Trading Days shall be withdrawn from the Draw Down
                  Pricing Period; and

                                    (iii)    if during any Trading Day during
                  the Draw Down Pricing Period sales of Draw Down Shares
                  pursuant to the Registration Statement are suspended by the
                  Company in accordance with Sections 3(d) or 5(e) of the
                  Registration Rights Agreement for more than three (3) hours,
                  in the aggregate, then that portion of the Investment Amount
                  to be paid on the immediately pending Settlement Date shall
                  be reduced by 1/10th of the Investment Amount and such
                  Trading Days shall be withdrawn from the Draw Down Pricing
                  Period.

                           (f)      The Company must inform the Purchaser by
         delivering a draw down notice, in the form of Exhibit D hereto (the
         "Draw Down Notice"), via facsimile transmission in accordance with
         Section 8.5 as to the amount of the Draw Down (the "Investment
         Amount") the Company wishes to exercise. The Draw Down Notice shall
         also inform the Purchaser the first day of the Draw Down Pricing
         Period (the "Commencement Date"); provided; however, if the
         Commencement Date shall be the date on which the Draw Down Notice is
         delivered, the Draw Down Notice must delivered to the Purchaser at
         least 1 hour before trading commences on such Trading Day date. At no
         time shall the Purchaser be required to purchase more than the maximum
         Investment Amount for a given Draw Down Pricing Period.

                           (g)      On or before each Settlement Date, the
         Shares purchased by the Purchaser shall be delivered to The Depository
         Trust Company ("DTC") on the Purchaser's behalf. Upon the Company
         electronically delivering whole shares of Common Stock to the
         Purchaser or its designees via DTC through its Deposit Withdrawal
         Agent Commission ("DWAC") system prior to 1:00 p.m. ET, the Purchaser
         shall wire transfer immediately available funds equal to the
         Investment Amount, as may be adjusted pursuant to Section 5.1(e), to
         the Company's designated account on such day. Upon the Company
         electronically delivering whole shares of Common Stock to the
         Purchaser or its designee's DTC account via DWAC after 1:00 p.m. ET,
         the Purchaser shall wire transfer next day available funds to the
         Company's designated account on such day. In the event that either
         party elects to use the Escrow Agent, the Shares shall be credited by
         the Company to the DTC account designated by the Purchaser via DWAC
         upon receipt by the Escrow Agent of payment for the Draw Down Shares
         into the Escrow Agent's master escrow account and notice to the
         Company thereof, all as further set forth in the Escrow

                                      18
<PAGE>
         Agreement. The Escrow Agent shall be directed to pay the purchase
         price to the Company.

                           (h)      The Company understands that a delay in the
         delivery of the Draw Down Shares into the Purchaser's DTC account
         beyond 5 Trading Days after the dates set forth herein or in the
         Escrow Agreement, as may be applicable, could result in economic loss
         to the Purchaser. Notwithstanding anything herein to the contrary, as
         compensation to the Purchaser for such loss, the Company agrees to pay
         late payments to the Purchaser for late delivery after 5 Trading Days
         from such dates in accordance with the following schedule (where "No.
         Trading Days Late" is defined as the number of Trading Days beyond 5
         Trading Days from the dates set forth herein or in the Escrow
         Agreement, as applicable, on which such Draw Down Shares are to be
         delivered into the Purchaser's DTC account via the DWAC system):

<TABLE>
<CAPTION>
                  No. Trading Days Late       Late Payment for Each
                                              $5,000 of Draw Down Shares
                                              Being Purchased

                  <S>                         <C>
                  1                           $50
                  2                           $100
                  3                           $150
                  4                           $200
                  5                           $250
                  6                           $300
                  7                           $350
                  8                           $400
                  9                           $450
                  10                          $500
                  More than 10                $500 + $100 for each Trading Day
                                              Late beyond 10 Trading Days
</TABLE>

                  The Company shall pay any payments incurred under this
Section 5.1(h) in immediately available funds upon demand. Nothing herein shall
limit the Purchaser's right to pursue injunctive relief and/or actual damages
for the Company's failure to issue and deliver the Draw Down Shares to the
Company.

                                      19
<PAGE>
                                   ARTICLE 6

                                  TERMINATION

                  Section 6.1.      Term. The term of this Agreement shall
begin on the date hereof and shall end 36 months from the Effective Date or as
otherwise set forth in Section 6.2.

                  Section 6.2.      Other Termination.

                           (a)      This Agreement shall terminate upon one (1)
         Trading Day's notice if (i) an event resulting in a Material Adverse
         Effect has occurred and has not been cured for a period of ninety (90)
         days after giving notice thereof, (ii) the Common Stock is de-listed
         from the Principal Market unless such de-listing is in connection with
         a subsequent listing on another Principal Market, or (iii) the Company
         files for protection from creditors under any applicable law.

                           (b)      The Company may terminate this Agreement
         upon 5 Trading Day's notice if the Purchaser shall fail to fund a
         properly noticed Draw Down within 5 Trading Days of the end of the
         applicable Settlement Period.

                  Section 6.3.      Effect of Termination. In the event of
termination of this Agreement pursuant to Section 6.2 herein, written notice
thereof shall forthwith be given to the other party and the transactions
contemplated by this Agreement shall be terminated without further action by
either party. If this Agreement is terminated as provided in Section 6.1 or 6.2
herein, this Agreement shall become void and of no further force and effect,
except for Sections 8.1, 8.2 and 8.9, and Article 7 herein, which shall survive
the termination of this Agreement. Nothing in this Section 6.3 shall be deemed
to release the Company or the Purchaser from any liability for any breach under
this Agreement, or to impair the rights of the Company or the Purchaser to
compel specific performance by the other party of its obligations under this
Agreement.

                                   ARTICLE 7

                                INDEMNIFICATION

                  Section 7.1.      General Indemnity.

                           (a)      The Company agrees to indemnify and hold
         harmless the Purchaser (and its directors, officers, affiliates,
         agents, successors and assigns) from and against any and all losses,
         liabilities, deficiencies, costs, damages and expenses (including,
         without limitation, reasonable attorneys' fees, charges and
         disbursements) ("Damages") incurred by the Purchaser as a result of
         any breach of the representations, warranties or covenants made by the
         Company herein.

                           (b)      The Purchaser agrees to indemnify and hold
         harmless the Company and its directors, officers, affiliates, agents,
         successors and assigns from and against any and all Damages) incurred
         by the Company as result of any breach of the representations,
         warranties or covenants made by the Purchaser herein. Notwithstanding
         anything to the contrary herein, the Purchaser shall be liable under
         this Section 7.1(b) for only that

                                      20
<PAGE>
         amount as does not exceed the gross proceeds to the Purchaser as a
         result of the sale of the Shares.

                           (c)      An indemnifying party shall not be liable
         under this Article 7 to the extent that it is finally judicially
         determined that such Damages resulted or arose from the breach by the
         Indemnified Party of any representation or warranty of the Indemnified
         Party contained in this Agreement or the willful misconduct or gross
         negligence of the Indemnified Party.

                  Section 7.2.      Indemnification Procedure. Any party
entitled to indemnification under this Article 7 (an "Indemnified Party") will
give prompt written notice to the indemnifying party of any matters giving rise
to a claim for indemnification, describing the claim in reasonable detail;
provided, that the failure of any party entitled to indemnification hereunder
to give notice as provided herein shall not relieve the indemnifying party of
its obligations under this Article 7 except to the extent that the indemnifying
party is actually prejudiced by such failure to give notice. In case any
action, proceeding or claim is brought against an Indemnified Party in respect
of which indemnification is sought hereunder, the indemnifying party shall be
entitled to assume the defense thereof with counsel reasonably satisfactory to
the Indemnified Party. In the event that the indemnifying party advises an
Indemnified Party that it will contest such a claim for indemnification
hereunder, or fails, within thirty (30) days of receipt of any indemnification
notice to notify, in writing, the Indemnified Party of its election to defend,
settle or compromise, at its sole cost and expense, any action, proceeding or
claim (or discontinues its defense at any time after it commences such
defense), then the Indemnified Party may, at its option, defend, settle or
otherwise compromise or pay such action or claim. In any event, unless and
until the indemnifying party elects in writing to assume and does so assume the
defense of any such claim, proceeding or action, the Indemnified Party's costs
(including reasonable attorneys' fees, charges and disbursements) and expenses
arising out of the defense, settlement or compromise of any such action, claim
or proceeding shall be Damages subject to indemnification hereunder. The
Indemnified Party shall cooperate fully with the indemnifying party in
connection with any settlement negotiations 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, which relates to
such action or claim. The indemnifying party shall keep the Indemnified Party
apprised as to the status of the defense or any settlement negotiations with
respect thereto. If the indemnifying party elects to defend any such action or
claim, then the Indemnified Party shall be entitled to participate in such
defense with counsel of its choice at its sole cost and expense. The
indemnifying party shall not be liable for any settlement of any action, claim
or proceeding effected without its prior written consent. Notwithstanding
anything in this Article 7 to the contrary, the indemnifying party shall not,
without the Indemnified Party's prior written consent, settle or compromise any
claim or consent to entry of any judgment in respect thereof which imposes any
future obligation on the Indemnified Party or which does not include, as an
unconditional term thereof, the giving by the claimant or the plaintiff to the
Indemnified Party of a release from all liability in respect of such claim. The
indemnification required by this Article 7 shall be made by periodic payments
of the amount thereof during the course of investigation or defense, as and
when bills are received or expense, loss, damage or liability is incurred,
within ten (10) Trading Days of written notice thereof to the indemnifying
party so long as the Indemnified Party irrevocably agrees to refund such
moneys, with interest, if it is ultimately determined by a

                                      21
<PAGE>
court of competent jurisdiction that such party was not entitled to
indemnification. The indemnity agreements contained herein shall be in addition
to (a) any cause of action or similar rights of the Indemnified Party against
the indemnifying party or others, and (b) any liabilities to which the
indemnifying party may be subject.

                                   ARTICLE 8

                                 MISCELLANEOUS

                  Section 8.1.      Fees and Expenses. Each of the parties to
this Agreement shall pay its own fees and expenses related to the transactions
contemplated by this Agreement; except that, the Company shall pay, on the date
of the first Settlement Date, a non-accountable expense allowance of $35,000
for the Purchaser's, administrative, legal and due diligence costs and expenses
and any other additional fees as set forth in the Escrow Agreement. The Company
shall pay all stamp or other similar taxes and duties levied in connection with
issuance of the Shares pursuant hereto.

                  Section 8.2.      Tax Withholding. Notwithstanding any other
provision in this Agreement, the Company shall have the right to withhold from
any amounts payable by the Company any Taxes required by law to be withheld.

                  Section 8.3.      Specific Enforcement. The Company and the
Purchaser acknowledge and agree that irreparable damage would occur in the
event that any of the provisions of this Agreement were not performed in
accordance with their specific terms or were otherwise breached. It is
accordingly agreed that the parties shall be entitled to an injunction or
injunctions to prevent or cure breaches of the provisions of this Agreement and
to enforce specifically the terms and provisions hereof or thereof, this being
in addition to any other remedy to which any of them may be entitled by law or
equity.

                  Section 8.4.      Entire Agreement; Amendment. The
Transaction Documents contain the entire understanding of the parties with
respect to the matters covered in the Transaction Documents. No provision of
this Agreement may be waived or amended other than by a written instrument
signed by the party against whom enforcement of any such amendment or waiver is
sought and no condition to closing any Draw Down in favor of the Purchaser may
be waived by the Purchaser.

                  Section 8.5.      Notices. Any notice, demand, request,
waiver or other communication required or permitted to be given hereunder shall
be in writing and shall be effective (a) upon hand delivery or facsimile at the
address or number designated below (if delivered on a business day during
normal business hours where such notice is to be received), or the first
business day following such delivery (if delivered other than on a business day
during normal business hours where such notice is to be received) or (b) on the
second business day following the date of mailing by express courier service,
fully prepaid, addressed to such address, or upon actual receipt of such
mailing, whichever shall first occur. The addresses for such communications
shall be as set forth on the signature pages hereto. Any party hereto may from

                                      22
<PAGE>
time to time change its address for notices by giving written notice of such
changed address to the other party hereto in accordance herewith.

                  Section 8.6.      Waivers. No waiver by either party of any
default with respect to any provision, condition or requirement of this
Agreement shall be deemed to be a continuing waiver in the future or a waiver
of any other provisions, condition or requirement hereof, nor shall any delay
or omission of any party to exercise any right hereunder in any manner impair
the exercise of any such right accruing to it thereafter.

                  Section 8.7.      Headings. The article, section and
subsection headings in this Agreement are for convenience only and shall not
constitute a part of this Agreement for any other purpose and shall not be
deemed to limit or affect any of the provisions hereof.

                  Section 8.8.      Successors and Assigns. This Agreement
shall be binding upon and inure to the benefit of the parties and their
successors and assigns. The parties hereto may not amend this Agreement or any
rights or obligations hereunder without the prior written consent of the
Company and the Purchaser. This Agreement may not be assigned by either party
without the prior written consent of the other party.

                  Section 8.9.      No Third Party Beneficiaries.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.

                  Section 8.10.     Governing Law. This Agreement shall be
governed by and construed in accordance with the internal laws of the State of
New York, without giving effect to the choice of law provisions. The Company
and the Purchaser agree to exclusively submit themselves to the in personam
jurisdiction of the state and federal courts situated within the Southern
District of the State of New York with regard to any controversy arising out of
or relating to this Agreement. Any party shall have the right to seek
injunctive relief from any court of competent jurisdiction in any case where
such relief is available.

                  Section 8.11.     Counterparts. This Agreement may be
executed in any number of counterparts, all of which taken together shall
constitute one and the same instrument and shall become effective when
counterparts have been signed by each party and delivered to the other parties
hereto, it being understood that all parties need not sign the same
counterpart. Execution may be made by delivery by facsimile.

                  Section 8.12.     Publicity. Neither the Company nor the
Purchaser shall issue any press release or otherwise make any public statement
or announcement with respect to this Agreement or the transactions contemplated
hereby or the existence of this Agreement, without the prior written consent of
the other party. Within 1 Trading Day after the Initial Closing, the Company
may issue a press release or otherwise make a public statement or announcement
with respect to this Agreement or the transactions contemplated hereby or the
existence of this Agreement; provided, however, that prior to issuing any such
press release, making any such

                                      23
<PAGE>
public statement or announcement, the Company obtains the prior consent of the
Purchaser, which consent shall not be unreasonably withheld or delayed.

                  Section 8.13.     Severability. The provisions of this
Agreement are severable and, in the event that The Board of Arbitration or any
court or officials of any regulatory agency of competent jurisdiction shall
determine that any one or more of the provisions or part of the provisions
contained in this Agreement shall, for any reason, be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision or part of a provision of
this Agreement and this Agreement shall be reformed and construed as if such
invalid or illegal or unenforceable provision, or part of such provision, had
never been contained herein, so that such provisions would be valid, legal and
enforceable to the maximum extent possible, so long as such construction does
not materially adversely affect the economic rights of either party hereto.

                  Section 8.14.     Further Assurances. From and after the date
of this Agreement, upon the request of the Purchaser or the Company, each of
the Company and the Purchaser shall execute and deliver such instruments,
documents and other writings as may be reasonably necessary or desirable to
confirm and carry out and to effectuate fully the intent and purposes of this
Agreement.

                                   ARTICLE 9

                                  DEFINITIONS

                  Section 9.1.      Certain Definitions.

                           (a)      "Affiliate" shall mean any person who is an
         "affiliate" of the applicable party within the meaning of Rule 405
         promulgated under the Securities Act.

                           (b)      "Commencement Date" shall have the meaning
         assigned to such term in Section 5.1(f) hereof.

                           (c)      "Commitment Amount" shall have the meaning
         assigned to such term in Section 1.1 hereof.

                           (d)      "Commitment Period" shall mean the period
         of 24 consecutive months commencing immediately after the Effective
         Date.

                           (e)      "Common Stock" shall mean the Company's
         common stock, $0.01 par value per share.

                           (f)      "Consolidation Event" shall mean a sale of
         all or substantially all of the Company's assets or a merger pursuant
         to which the holders of the voting securities of the Company prior to
         the merger do not own a majority of the voting securities of the
         surviving entity.

                                      24
<PAGE>
                           (g)      "Disclosure Letter" shall mean the separate
         disclosure letter prepared by the Company and delivered concurrently
         herewith.

                           (h)      "Draw Down" shall have the meaning assigned
         to such term in Section 5.1(a) hereof.

                           (i)      "Draw Down Notice" shall have the meaning
         assigned to such term in Section 5.1(f) hereof.

                           (j)      "Draw Down Pricing Period" shall mean a
         period of 10 consecutive Trading Days beginning on the date specified
         in the Draw Down Notice; provided, however, the Draw Down Pricing
         Period shall not begin before the day on which receipt of such notice
         is delivered to Purchaser pursuant to Section 8.5 herein.

                           (k)      "Draw Down Shares" shall mean the shares of
         Common Stock issuable pursuant to a Draw Down.

                           (l)      "DTC" shall have the meaning assigned to
         such term in Section 5.1(g).

                           (m)      "DWAC" shall have the meaning assigned to
         such term in Section 5.1(g).

                           (n)      "Effective Date" shall mean the date the
         Registration Statement of the Company covering the Shares being
         subscribed for hereby is declared effective by the SEC.

                           (o)      "Exchange Act" shall mean the Securities
         Exchange Act of 1934, as amended, and the rules and regulations
         promulgated thereunder.

                           (p)      "GAAP" shall mean the United States
         Generally Accepted Accounting Principles as those conventions, rules
         and procedures are determined by the Financial Accounting Standards
         Board and its predecessor agencies.

                           (q)      "Initial Closing" shall have the meaning
         assigned to such term in Section 1.2 hereof.

                           (r)      "Initial Closing Date" shall have the
         meaning assigned to such term in Section 1.2 hereof.

                           (s)      "Investment Amount" shall have the meaning
         assigned to such term in Section 5.1(f) hereof.

                           (t)      "Material Adverse Effect" shall mean any
         adverse effect on the business, operations, properties or financial
         condition of the Company that is material and adverse to the Company
         and its subsidiaries and affiliates, taken as a whole and/or any
         condition, circumstance, or situation that would prohibit or otherwise
         materially interfere

                                      25
<PAGE>
         with the ability of the Company to perform any of its material
         obligations under this Agreement or the Registration Rights Agreement.

                           (u)      "Material Agreement" shall mean any written
         or oral contract, instrument, agreement, commitment, obligation, plan
         or arrangement, a copy of which is required to be filed with the SEC
         pursuant to Item 601(b)(10) of Regulation S-K as an exhibit to any of
         the SEC Documents.

                           (v)      "Principal Market" shall mean initially the
         American Stock Exchange, and shall include the Nasdaq National Market,
         the Nasdaq SmallCap Market and the New York Stock Exchange if the
         Company becomes listed and trades on such market or exchange after the
         date hereof.

                           (w)      "Purchase Price" shall mean, with respect
         to Draw Down Shares purchased during each applicable Settlement
         Period, 85% of the VWAP on the corresponding date during the Draw Down
         Pricing Period.

                           (x)      "Purchaser Material Adverse Effect" shall
         mean any adverse effect on the business, operations, prospects or
         financial condition of the Purchaser that is material and adverse to
         the Purchaser and/or any condition, circumstance or situation that
         would prohibit or otherwise materially interfere with the ability of
         the Purchaser to perform any of its material obligations under this
         Agreement or the Registration Rights Agreement.

                           (y)      "Registration Statement" shall mean the
         registration statement under the Securities Act, to be filed with the
         Securities and Exchange Commission for the registration of the Shares
         pursuant to the Registration Rights Agreement attached hereto as
         Exhibit A (the "Registration Rights Agreement).

                           (z)      "SEC" shall mean the Securities and
         Exchange Commission.

                           (aa)     "SEC Documents" shall mean all reports,
         schedules, forms, statements and other documents required to be filed
         by the Company with the SEC pursuant to the requirements of the
         Exchange Act, including material filed pursuant to Section 13(a) or
         15(c) of the Exchange Act, in each case, together with all exhibits,
         supplements, amendments and schedules thereto, and all documents
         incorporated by reference therein.

                           (bb)     "Securities Act" shall mean the Securities
         Act of 1933, as amended, and the rules and regulations promulgated
         thereunder.

                           (cc)     "Settlement" shall mean the delivery of the
         Draw Down Shares into the Purchaser's DTC account via DTC's DWAC
         system in exchange for payment therefor.

                           (dd)     "Settlement Date" shall have the meaning
         assigned to such term in Section 5.1(b).

                                      26
<PAGE>
                           (ee)     "Settlement Period" shall have the meaning
         assigned to such term in Section 5.1(b).

                           (ff)     "Shares" shall mean, collectively, the Draw
         Down Shares and the Warrant Shares.

                           (gg)     "Threshold Price" shall mean the price per
         Share designated by the Company as the lowest VWAP during any Draw
         Down Pricing Period at which the Company shall sell its Common Stock
         in accordance with this Agreement.

                           (hh)     "Trading Cushion" (ii) shall mean the
         mandatory 5 Trading Days between Draw Down Pricing Periods.

                           (jj)     "Trading Day" shall mean any day on which
         the Principal Market is open for business.

                           (kk)     "Transaction Documents" shall mean this
         Agreement, the Registration Rights Agreement and the Escrow Agreement.

                           (ll)     "VWAP" shall mean, for any date, the price
         determined by the first of the following clauses that applies: (a) if
         the Common Stock is then listed or quoted on a Principal Market, the
         daily volume weighted average price of the Common Stock for such date
         (or the nearest preceding date) on the primary Principal Market on
         which the Common Stock is then listed or quoted as reported by
         Bloomberg Financial L.P. (based on a trading day from 9:30 a.m. ET to
         4:02 p.m. Eastern Time) using the VAP function; (b) if the Common
         Stock is not then listed or quoted on a Principal Market and if prices
         for the Common Stock are then quoted on the OTC Bulletin Board, the
         volume weighted average price of the Common Stock for such date (or
         the nearest preceding date) on the OTC Bulletin Board; (c) if the
         Common Stock is not then listed or quoted on the OTC Bulletin Board
         and if prices for the Common Stock are then reported in the "Pink
         Sheets" published by the National Quotation Bureau Incorporated (or a
         similar organization or agency succeeding to its functions of
         reporting prices), the most recent closing price per share of the
         Common Stock so reported; or (d) in all other cases, the fair market
         value of a share of Common Stock as determined by an independent
         appraiser selected in good faith by the Purchasers.

                           (mm)     "Warrants" shall mean the warrants issued
         to the Purchaser pursuant to Section 4.2(f) hereof.

                           (nn)     "Warrant Shares" shall mean the shares of
         Common Stock issuable upon exercise of the Warrants.

                            [SIGNATURE PAGE FOLLOWS]

                                      27
<PAGE>
              [SIGNATURE PAGE TO COMMON STOCK PURCHASE AGREEMENT]

                  IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed by their respective authorized officer as of this
31st day of March, 2003.

                                    VIRAGEN, INC.

                                    By: /s/ Dennis W. Healey
                                        ---------------------------------------
                                        Name: Dennis W. Healey
                                        Title: Executive Vice President and
                                        Chief Financial Officer

                                    Address for Notice:
                                    865 SW 78th Avenue, Suite 100
                                    Plantation, Florida 33324
                                    Attn: Dennis W. Healey
                                    Tel: (954) 233-8746
                                    Fax: (954) 233-1412

With a copy to:
(which shall not constitute
notice)                             James M. Schneider, Esq.
                                    Adorno & Yoss, P.A.
                                    350 E. Las Olas Boulevard, Suite 1700
                                    Fort Lauderdale, FL 33301
                                    (954) 763-1200
                                    (954) 766-7858 (Direct)
                                    (954) 766-7800 (Fax)
                                    jschneider@adorno.com
                                    Secretary (Beverly) bbryan@adorno.com

PURCHASER:

Address:                            TALISMAN MANAGEMENT LIMITED
PO Box 175
12-14 Finch Road, Douglas           By: /s/ Gordon J. Mundy
Isle of Man IM99 1TT                   ----------------------------------------
Attn: Gordon Mundy or                  Name: Gordon J. Mundy
      Rosemary Marr                    Title: Director
Fax: 44 1624 620588

                                       28<PAGE>

                                                                  EXHIBIT 10.69

                         REGISTRATION RIGHTS AGREEMENT

         THIS REGISTRATION RIGHTS AGREEMENT, dated as of March 31, 2003 between
Talisman Management Limited ("Purchaser") and Viragen, Inc. (the "Company").

         WHEREAS, simultaneously with the execution and delivery of this
Agreement, pursuant to a Common Stock Purchase Agreement dated the date hereof
(the "Purchase Agreement") the Purchaser has committed to purchase up to
$12,000,000 of the Company's Common Stock (TERMS NOT DEFINED HEREIN SHALL HAVE
THE MEANINGS ASCRIBED TO THEM IN THE PURCHASE AGREEMENT); and

         WHEREAS, the Company desires to grant to the Purchaser the
registration rights set forth herein with respect to the Draw Down Shares and
the Warrant Shares (collectively, the "Securities").

         NOW, THEREFORE, the parties hereto mutually agree as follows:

         Section 1. Registrable Securities. As used herein the term
"Registrable Security" means the Securities; provided, however, that any shares
of Common Stock which are Registrable Securities shall cease to be Registrable
Securities (i) when sold pursuant to the Registration Statement, (ii) when sold
pursuant to Rule 144 (or any similar provision then in force) under the
Securities Act ("Rule 144"), (iii) upon any sale in any manner to a person or
entity which is not entitled pursuant to Section 9 to rights under this
Agreement, or (iv) such time as, in the opinion of counsel to the Company, such
Securities may be sold without any time, volume or manner limitations pursuant
to Rule 144(k) (or any similar provision then in effect) under the Securities
Act. In the event of any merger, reorganization, consolidation,
recapitalization or other change in corporate structure affecting the Common
Stock, such adjustment shall be deemed to be made in the definition of
"Registrable Security" as is appropriate in order to prevent any dilution or
enlargement of the rights granted pursuant to this Agreement.

         Section 2. Restrictions on Transfer. The Purchaser acknowledges and
understands that in the absence of an effective Registration Statement
authorizing the resale of the Securities as provided herein, the Securities are
"restricted securities" as defined in Rule 144. The Purchaser understands that
no disposition or transfer of the Securities may be made by Purchaser in the
absence of (i) an opinion of counsel to the Purchaser, in form and substance
reasonably satisfactory to the Company, that such transfer may be made without
registration under the Securities Act or (ii) such registration.

         With a view to making available to the Purchaser the benefits of Rule
144, the Company agrees:

<PAGE>

                (a) to comply with the provisions of paragraph (c)(1) of Rule
         144; and

                (b) to use its best effort to file with the Securities and
         Exchange Commission (the "Commission") in a timely manner all reports
         and other documents required to be filed by the Company pursuant to
         Section 13 or 15(d) under the Exchange Act; and furnish the Purchaser
         with such other reports and documents of the Company as the Purchaser
         may reasonably request to avail itself of any similar rule or
         regulation of the Commission allowing it to sell any such securities
         without registration.

         Section 3. Registration Rights With Respect to the Securities.

                (a) The Company agrees that it will prepare and file with the
         Commission, within the earlier of (i) 20 days after the effectiveness
         of the registration statement currently on file with the Commission and
         (ii) forty-five days after the date hereof, a registration statement
         (on Form S-1, or other appropriate form of registration statement)
         under the Securities Act (the "Registration Statement"), at the sole
         expense of the Company (except as provided in Section 3(c) hereof), in
         respect of Purchaser, so as to permit a public offering and resale of
         the Securities under the Securities Act by Purchaser. The Company shall
         use its commercially reasonable efforts to cause the Registration
         Statement to become effective within 90 days of the date hereof or five
         (5) days of clearance by the Commission and will within said five (5)
         days request acceleration of effectiveness of the Registration
         Statement by the Commission. The Company will notify Purchaser of the
         effectiveness of the Registration Statement within one Trading Day of
         such event.

                (b) The Company will maintain the Registration Statement or
         post-effective amendment filed under this Section 3 hereof effective
         under the Securities Act until the earliest of (i) the date that all
         the Registrable Securities have been disposed of pursuant to the
         Registration Statement, (ii) 360 days from the last date Registrable
         Securities are issued, (iii) the date that all of the Securities may be
         sold under the provisions of Rule 144, (iv) the date all Securities
         have been otherwise transferred to persons who may trade such shares
         without restriction under the Securities Act, and the Company has
         delivered a new certificate or other evidence of ownership for such
         Securities not bearing a restrictive legend, or (v) the date all
         Securities may be sold without any time, volume or manner limitations
         pursuant to Rule 144(k) or any similar provision then in effect under
         the Securities Act (the "Effectiveness Period").

                (c) All fees, disbursements and out-of-pocket expenses and costs
         incurred by the Company in connection with the preparation and filing
         of the Registration Statement under subparagraph 3(a) and in complying
         with applicable securities and Blue Sky laws (including, without
         limitation, all attorneys' fees of the Company) shall be borne by the
         Company. The Purchaser shall bear the cost of underwriting and/or
         brokerage discounts, fees and commissions, if any, applicable to the
         Securities being registered and the fees and expenses of its counsel.
         The Purchaser and its counsel shall have a reasonable period, not to
         exceed three (3) Trading Days, to review the proposed Registration
         Statement or any amendment thereto, prior to filing with the
         Commission,

                                       2
<PAGE>

         and the Company shall provide the Purchaser with copies of any comment
         letters received from the Commission with respect thereto within two
         (2) Trading Days of receipt thereof. The Company shall make reasonably
         available for inspection by Purchaser, any underwriter participating in
         any disposition pursuant to the Registration Statement, and any
         attorney, accountant or other agent retained by the Purchaser or any
         such underwriter all relevant financial and other records, pertinent
         corporate documents and properties of the Company and its subsidiaries,
         and cause the Company's officers, directors and employees to supply all
         information reasonably requested by the Purchaser or any such
         underwriter, attorney, accountant or agent in connection with the
         Registration Statement; provided, however, that all records,
         information and documents that are designated in writing by the Company
         as confidential, proprietary or containing any material non-public
         information shall be kept confidential by the Purchaser and any such
         underwriter, attorney, accountant or agent (pursuant to an appropriate
         confidentiality agreement in the case of the Purchaser, underwriter,
         attorney, accountant or agent), unless such disclosure is made pursuant
         to judicial process in a court proceeding (after first giving the
         Company an opportunity promptly to seek a protective order or otherwise
         limit the scope of the information sought to be disclosed) or is
         required by law, or such records, information or documents become
         available to the public through a third party not in violation of an
         accompanying obligation of confidentiality; and provided further that,
         if the foregoing inspection and information gathering would otherwise
         disrupt the Company's conduct of its business, such inspection and
         information gathering shall, to the maximum extent possible, be
         coordinated on behalf of the Purchaser and the other parties entitled
         thereto by one firm of counsel designed by and on behalf of the
         majority in interest of Purchaser and other parties. The Company at its
         expense will supply the Purchaser with such reasonable number of copies
         of the Registration Statement and the final prospectus included therein
         (the "Prospectus") and other related documents as the Purchaser may
         request in order to facilitate the public sale or other disposition of
         the Registrable Securities.

                (d) The Company shall not be required by this Section 3 to
         include the Purchaser's Securities in any Registration Statement which
         is to be filed if, in the opinion of counsel for both the Purchaser and
         the Company (or, should they not agree, in the opinion of another
         counsel experienced in securities law matters acceptable to counsel for
         the Purchaser and the Company) the proposed offering or other transfer
         as to which such registration is requested is exempt from applicable
         federal and state securities laws and would result in all purchasers or
         transferees obtaining securities which are not "restricted securities",
         as defined in Rule 144 under the Securities Act.

                If at any time or from time to time after the effective date of
the Registration Statement, the Company notifies the Purchaser in writing of
the existence of a Potential Material Event (as defined in Section 3(e) below),
the Purchaser shall not offer or sell any Securities or engage in any other
transaction involving or relating to Securities, from the time of the giving of
notice with respect to a Potential Material Event until the Purchaser has
received copies of a supplemented or amended Prospectus or until the Purchaser
is advised in writing by the Company that the then current Prospectus may be
used and has received copies of any additional or supplemental filings that are

                                       3
<PAGE>

         incorporated or deemed incorporated by reference in such Prospectus
         (the "Suspension Period"); provided, however, that, if a Suspension
         Period occurs during any periods commencing on a Trading Day a Draw
         Down Notice is deemed delivered and ending ten (10) Trading Days
         following the end of the corresponding Draw Down Pricing Period, then
         the Company must compensate the Purchaser for any net decline in the
         market value of any Securities committed to be purchased by the
         Purchaser through the end of such Suspension Period. Net decline shall
         be calculated as the difference between the highest VWAP during the
         applicable Suspension Period and the VWAP on the Trading Day
         immediately following a properly delivered notice to the Purchaser that
         such Suspension Period has ended. The Company must give Purchaser
         notice in writing promptly upon knowledge that a Suspension Period may
         occur without indicating the nature of such Suspension Period.

                (e) "Potential Material Event" means any of the following: (i)
         the possession by the Company of material information that is not ripe
         for disclosure in a registration statement, as determined in good faith
         by the Chief Executive Officer or the Board of Directors of the Company
         or that disclosure of such information in the Registration Statement
         would be detrimental to the business or affairs of the Company; or (ii)
         any material engagement, development or activity by the Company which
         would, in the good faith determination of the Chief Executive Officer
         or the Board of Directors of the Company, be adversely affected by
         disclosure in a registration statement at such time, which
         determination shall be accompanied by a good faith determination by the
         Chief Executive Officer or the Board of Directors of the Company that
         the Registration Statement would be materially misleading absent the
         inclusion of such information; or (iii) pursuant to applicable law, a
         fundamental change that requires the Company to file a post-effective
         amendment to the Registration Statement, change the plan of
         distribution to the Prospectus, or must update the information included
         in the Prospectus pursuant to Section 10(a)(3) of the Securities Act.

                (f) If the Company has delivered a Prospectus to the Purchaser
         and after having done so the Prospectus is amended to comply with the
         requirements of the Securities Act, the Company shall promptly notify
         the Purchaser and, if requested, the Purchaser shall immediately cease
         making offers of Registrable Securities. The Company shall promptly
         provide the Purchaser with revised Prospectuses and, following receipt
         of the revised Prospectuses, the Purchaser shall be free to resume
         making offers of the Registrable Securities.

         Section 4. Cooperation with Company. The Purchaser will cooperate with
the Company in all respects in connection with this Agreement, including timely
supplying all information reasonably requested by the Company (which shall
include all information regarding the Purchaser and proposed manner of sale of
the Registrable Securities required to be disclosed in the Registration
Statement) and executing and returning all documents reasonably requested in
connection with the registration and sale of the Registrable Securities and
entering into and performing its obligations under any underwriting agreement,
if the offering is an underwritten offering, in usual and customary form, with
the managing underwriter or underwriters of such underwritten offering. The
Purchaser shall consent to be named as an underwriter in the

                                       4
<PAGE>

Registration Statement. Purchaser acknowledges that in accordance with current
Commission policy, the Purchaser will be named as the underwriter of the
Securities in the Registration Statement.

         Section 5. Registration Procedures. If and whenever the Company is
required by any of the provisions of this Agreement to effect the registration
of any of the Registrable Securities under the Securities Act, the Company
shall (except as otherwise provided in this Agreement), as expeditiously as
possible, subject to the Purchaser's assistance and cooperation as reasonably
required:

                (a) As expeditiously as possible prepare and file with the
         Commission such amendments and supplements to the Registration
         Statement and the Prospectus as may be necessary to keep such
         Registration Statement effective until the end of the Effectiveness
         Period and to comply with the provisions of the Securities Act with
         respect to the sale or other disposition of all securities covered by
         the Registration Statement (including prospectus supplements with
         respect to the sales of securities from time to time in connection with
         a registration statement pursuant to Rule 415 promulgated under the
         Securities Act);

                (b) prior to the filing with the Commission of any Registration
         Statement (including any amendments thereto) and the distribution or
         delivery of the Prospectus (including any supplements thereto), (i)
         provide draft copies thereof to the Purchaser and reflect in such
         documents all such comments as the Purchaser (and its counsel)
         reasonably may propose and (ii) furnish to the Purchaser such numbers
         of copies of the Prospectus including a preliminary prospectus or any
         amendment or supplement to the Prospectus, as applicable, in conformity
         with the requirements of the Securities Act, and such other documents,
         as the Purchaser may reasonably request in order to facilitate the
         public sale or other disposition of the Registrable Securities;

                (c) as expeditiously as possible use its best efforts to
         register or qualify the Registrable Securities covered by the
         Registration Statement under the applicable blue sky laws as requested
         by the Purchaser (subject to the limitations set forth in Section 3(c)
         above), and do any and all other acts and things which may be
         reasonably necessary or advisable to enable the Purchaser to consummate
         the public sale or other disposition in such jurisdiction of the
         Registrable Securities, except that the Company shall not for any such
         purpose be required to qualify to do business as a foreign corporation
         in any jurisdiction wherein it is not so qualified or to execute any
         general consent to service of process;

                (d) list such Registrable Securities on the Principal Market,
         and any other exchange on which the Common Stock of the Company is then
         listed, if the listing of such Registrable Securities is then permitted
         under the rules of such exchange or the Principal Market;

                (e) notify the Purchaser at any time when the Prospectus is
         required to be delivered under the Securities Act, of the happening of
         any event of which it has

                                       5
<PAGE>

         knowledge as a result of which the Prospectus, 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 the light of the circumstances
         then existing, and the Company shall prepare and file a curative
         amendment or curative supplement under Section 5(a) as quickly as
         commercially possible and the period beginning on the date of notice
         until the curative amendment is effective or curative supplement is
         provided to the Purchaser shall be deemed a Suspension Period and the
         Company shall compensate the Purchaser as set forth in Section 3(d)
         herein;

                (f) as promptly as practicable after becoming aware of such
         event, notify the Purchaser (or, in the event of an underwritten
         offering, the managing underwriters) of the issuance by the Commission
         or any state authority of any stop order or other suspension of the
         effectiveness of the Registration Statement and use commercially
         reasonable efforts to effect the withdrawal, rescission or removal of
         such stop order or other suspension; and

                (g) maintain a transfer agent for its Common Stock.

         Section 6. Indemnification.

                (a) The Company agrees to indemnify and hold harmless the
         Purchaser and each person, if any, who controls the Purchaser within
         the meaning of the Securities Act ("Distributing Purchaser") against
         any losses, claims, damages or liabilities, joint or several (which
         shall, for all purposes of this Agreement, include, but not be limited
         to, all reasonable costs of defense and investigation and all
         reasonable attorneys' fees incurred by the Distributing Purchaser), to
         which the Distributing Purchaser may become subject, under the
         Securities Act or otherwise, insofar as such losses, claims, damages or
         liabilities (or actions in respect thereof) (i) arise out of or are
         based upon any untrue statement or alleged untrue statement of any
         material fact contained in the Registration Statement, or any related
         preliminary prospectus, the Prospectus or amendment or supplement to
         such Registration Statement, or (ii) 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; provided, however, that the Company will not be liable in
         any such case to the extent that any such loss, claim, damage or
         liability arises out of or is based upon an untrue statement or alleged
         untrue statement or omission or alleged omission made in the
         Registration Statement, preliminary prospectus, the Prospectus or
         amendment or supplement to the Registration Statement in reliance upon,
         and in conformity with, written information furnished to the Company by
         the Distributing Purchaser specifically for use in the preparation
         thereof. This Section 6(a) shall not inure to the benefit of any
         Distributing Purchaser with respect to any person asserting such loss,
         claim, damage or liability who purchased the Registrable Securities
         which are the subject thereof if the Distributing Purchaser failed to
         send or give (in violation of the Securities Act or the rules and
         regulations promulgated thereunder) a copy of the Prospectus to such
         person at or prior to the written confirmation to such person of the
         sale of such Registrable Securities, where the Distributing Purchaser
         was obligated to do so under the Securities Act or the rules and
         regulations promulgated

                                       6
<PAGE>

         thereunder. This indemnity agreement will be in addition to any
         liability which the Company may otherwise have.

                (b) The Purchaser agrees that it will indemnify and hold
         harmless the Company, and each officer, director of the Company or
         person, if any, who controls the Company within the meaning of the
         Securities Act, against any losses, claims, damages or liabilities
         (which shall, for all purposes of this Agreement, include, but not be
         limited to, all reasonable costs of defense and investigation and all
         reasonable attorneys' fees incurred by the Purchaser) to which the
         Company or any such officer, director or controlling person 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 any untrue statement or alleged untrue
         statement of any material fact contained in the Registration Statement,
         or any related preliminary prospectus, the Prospectus or amendment or
         supplement to the Registration Statement, or arise out of or are based
         upon the omission or the alleged omission to state therein a material
         fact required to be stated therein or necessary to make the statements
         therein not misleading, but in each case only to the extent that such
         untrue statement or alleged untrue statement or omission or alleged
         omission was made in the Registration Statement, preliminary
         prospectus, the Prospectus or amendment or supplement thereto in
         reliance upon, and in conformity with, written information furnished to
         the Company by such Purchaser specifically for use in the preparation
         thereof. This indemnity agreement will be in addition to any liability
         which the Purchaser may otherwise have. Notwithstanding anything to the
         contrary herein, the Purchaser shall not be liable under this Section
         6(b) for any amount in excess of the net proceeds to such Purchaser as
         a result of the sale of Registrable Securities pursuant to the
         Registration Statement.

                (c) Promptly after receipt by an indemnified party under this
         Section 6 of notice of the commencement of any action as to which
         indemnity may be sought under this Section 6, notify the indemnifying
         party of the commencement thereof and shall permit the indemnifying
         party to assume the defense of any claim or any litigation resulting
         therefrom; provided, that counsel for the indemnifying party, who shall
         conduct the defense of such claim or litigation, shall be approved by
         the indemnified party (whose approval shall not be unreasonably
         withheld, conditioned or delayed); but the failure to notify the
         indemnifying party will not relieve the indemnifying party from any
         obligations which it may have to any indemnified party except to the
         extent of actual prejudice demonstrated by the indemnifying party.
         After notice from the indemnifying party to such indemnified party of
         its election so to assume the defense thereof, the indemnifying party
         will not be liable to such indemnified party under this Section 6 for
         any legal or other expenses subsequently incurred by such indemnified
         party in connection with the defense thereof other than reasonable
         costs of investigation, unless the indemnifying party shall not pursue
         the action to its final conclusion. The indemnified party shall have
         the right, at such party's own expense, to employ separate counsel in
         any such action and to participate in the defense thereof; provided
         that the indemnifying party shall pay such expense if: (i) the
         employment of such counsel has been specifically authorized in writing
         by the indemnifying party, or (ii) the named parties to any such action
         (including any impleaded parties) include both the indemnified party
         and the indemnifying party and the

                                       7
<PAGE>

         indemnified party reasonably concludes that representation of such
         indemnified party by the counsel retained by the indemnifying party
         would be inappropriate due to actual or potential differing interests
         between the indemnified party and any other party represented by such
         counsel in such proceeding; provided further that in no event shall the
         indemnifying party be required to pay the expenses of more than one law
         firm per jurisdiction as counsel for the indemnified party. No
         indemnifying party, in the defense of any such claim or litigation
         shall, except with the consent of each indemnified party, consent to
         entry of any judgment or enter into any settlement which does not
         include as an unconditional term thereof the giving by the claimant or
         plaintiff to such indemnified party of a release from all liability in
         respect of such claim or litigation, and no indemnified party shall
         consent to entry of any judgment or settle such claim or litigation
         without the prior written consent of the indemnifying party, which
         consent shall not be unreasonably withheld, conditioned or delayed.

                (d) If the indemnifying party does not assume the defense of any
         claim or litigation pursuant to this Section 6, all reasonable costs of
         defense and investigation in a manner not inconsistent with this
         Section and all reasonable attorneys' fees incurred by the indemnified
         party in connection with a claim or litigation covered by this Section
         6 shall be paid to the indemnified party, as incurred, within ten (10)
         Trading Days of written notice thereof to the indemnifying party;
         provided, that the indemnifying party may require such indemnified
         party to undertake to reimburse all such fees and expenses to the
         extent it is finally judicially determined that such indemnified party
         is not entitled to indemnification hereunder.

         Section 7. Contribution.

                (a) In order to provide for just and equitable contribution
         under the Securities Act in any case in which (i) the indemnified party
         makes a claim for indemnification pursuant to Section 6 hereof but is
         judicially determined (by the entry of a final judgment or decree by a
         court of competent jurisdiction and the expiration of time to appeal or
         the denial of the last right of appeal) that such indemnification may
         not be enforced in such case notwithstanding the fact that the express
         provisions of Section 6 hereof provide for indemnification in such
         case, or (ii) contribution under the Securities Act may be required on
         the part of any indemnified party, then the Company and the Purchaser
         shall contribute to the aggregate losses, claims, damages or
         liabilities to which they may be subject (which shall, for all purposes
         of this Agreement, include, but not be limited to, all reasonable costs
         of defense and investigation and all reasonable attorneys' fees), in
         either such case (after contribution from others) on the basis of
         relative fault as well as any other relevant equitable considerations.
         The relative fault 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 Company on the one hand or the
         applicable Distributing Purchaser on the other hand, and the parties'
         relative intent, knowledge, access to information and opportunity to
         correct or prevent such statement or omission. The Company and the
         Purchaser agree that it would not be just and equitable if contribution
         pursuant to this Section 7 were determined by pro rata allocation or by
         any other method

                                       8
<PAGE>

         of allocation which does not take account of the equitable
         considerations referred to in this Section 7. The amount paid or
         payable by an indemnified party as a result of the losses, claims,
         damages or liabilities (or actions in respect thereof) referred to
         above in this Section 7 shall be deemed to include any legal or other
         expenses reasonably incurred by such indemnified party in connection
         with investigating or defending any such action or claim. No person
         guilty of fraudulent misrepresentation (within the meaning of Section
         11(f) of the Securities Act) shall be entitled to contribution from any
         person who was not guilty of such fraudulent misrepresentation. Any
         party entitled to contribution will, promptly after receipt of notice
         of commencement of any action, suit or proceeding against such party in
         respect of which a claim for contribution may be made against another
         party or parties under this Section 7, notify such party or parties
         from whom contribution may be sought, but the omission so to notify
         such party or parties from whom contribution may be sought shall not
         relieve such party from any other obligation it or they may have
         thereunder or otherwise under this Section 7. No party shall be liable
         for contribution with respect to any action, suit, proceeding or claim
         settled without its prior written consent, which consent shall not be
         unreasonably withheld, conditioned or delayed.

                (b) Notwithstanding any other provision of this Section 7, in no
         event shall any (i) Purchaser be required to undertake liability to any
         person under this Section 7 for any amounts in excess of the dollar
         amount of the gross proceeds to be received by the Purchaser from the
         sale of the Purchaser's Registrable Securities pursuant to any
         Registration Statement under which such Registrable Securities are to
         be registered under the Securities Act and (ii) underwriter be required
         to undertake liability to any person hereunder for any amounts in
         excess of the aggregate discount, commission or other compensation
         payable to such underwriter with respect to the Registrable Securities
         underwritten by it and distributed pursuant to the Registration
         Statement.

         Section 8. Notices. All notices, demands, requests, consents,
approvals, and other communications required or permitted hereunder shall be in
writing and, unless otherwise specified herein, shall be delivered as set forth
in the Purchase Agreement.

         Section 9. Assignment. Neither this Agreement nor any rights of the
Purchaser or the Company hereunder may be assigned by either party to any other
person. Notwithstanding the foregoing, (a) the provisions of this Agreement
shall inure to the benefit of, and be enforceable by, any transferee of any of
the Common Stock purchased by the Purchaser pursuant to the Purchase Agreement
other than through open-market sales, and (b) upon the prior written consent of
the Company, which consent shall not be unreasonably withheld or delayed in the
case of an assignment to an affiliate of the Purchaser, the Purchaser's
interest in this Agreement may be assigned at any time, in whole or in part, to
any other person or entity (including any affiliate of the Purchaser) who
agrees to be bound hereby.

         Section 10. Counterparts/Facsimile. This Agreement may be executed in
two or more counterparts, each of which shall constitute an original, but all
of which, when together shall constitute but one and the same instrument, and
shall become effective when one or more counterparts have been signed by each
party hereto and delivered to the other party. In lieu of the

                                       9
<PAGE>

original, a facsimile transmission or copy of the original shall be as
effective and enforceable as the original.

         Section 11. Remedies and Severability. The remedies provided in this
Agreement are cumulative and not exclusive of any remedies provided by law. If
any term, provision, covenant or restriction of this Agreement is held by a
court of competent jurisdiction to be invalid, illegal, void or unenforceable,
the remainder of the terms, provisions, covenants and restrictions set forth
herein shall remain in full force and effect and shall in no way be affected,
impaired or invalidated, and the parties hereto shall use their best efforts to
find and employ an alternative means to achieve the same or substantially the
same result as that contemplated by such term, provision, covenant or
restriction. It is hereby stipulated and declared to be the intention of the
parties that they would have executed the remaining terms, provisions,
covenants and restrictions without including any of those that may be hereafter
declared invalid, illegal, void or unenforceable.

         Section 12. Conflicting Agreements. The Company shall not enter into
any agreement with respect to its securities that is inconsistent with the
rights granted to the Purchasers in this Agreement or otherwise prevents the
Company from complying with all of its obligations hereunder.

         Section 13. Headings. The headings in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of
this Agreement.

         Section 14. Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York applicable to
contracts made in New York by persons domiciled in New York City and without
regard to its principles of conflicts of laws. The Company and the Purchaser
agree to submit themselves to the in personam jurisdiction of the state and
federal courts situated within the Southern District of the State of New York
with regard to any controversy arising out of or relating to this Agreement.
Any party shall have the right to seek injunctive relief from any court of
competent jurisdiction in any case where such relief is available.

                          ***************************

                                      10
<PAGE>

                 [REGISTRATION RIGHTS AGREEMENT SIGNATURE PAGE]

         IN WITNESS WHEREOF, the parties hereto have caused this Registration
Rights Agreement to be duly executed as of the date set forth above.

                                        VIRAGEN, INC.

                                        By: /s/ Dennis W. Healey
                                            ------------------------------------
                                            Name: Dennis W. Healey
                                            Title:  Executive Vice President and
                                            Chief Financial Officer

                                        TALISMAN MANAGEMENT LIMITED

                                        By: /s/ Gordon J. Mundy
                                            ------------------------------------
                                            Name: Gordon J. Mundy
                                            Title: Director

                                      11

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