Document:

Exhibit 4.3

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE
HAVE  BEEN  REGISTERED  WITH  THE  SECURITIES  AND  EXCHANGE  COMMISSION  OR THE
SECURITIES   COMMISSION  OF  ANY  STATE  IN  RELIANCE  UPON  AN  EXEMPTION  FROM
REGISTRATION  UNDER THE  SECURITIES  ACT OF 1933,  AS AMENDED  (THE  "SECURITIES
ACT"),  AND,  ACCORDINGLY,  MAY NOT BE OFFERED  OR SOLD  EXCEPT  PURSUANT  TO AN
EFFECTIVE  REGISTRATION  STATEMENT  UNDER THE  SECURITIES  ACT OR PURSUANT TO AN
AVAILABLE  EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE  REGISTRATION
REQUIREMENTS  OF THE  SECURITIES  ACT AND IN ACCORDANCE  WITH  APPLICABLE  STATE
SECURITIES  LAWS AS  EVIDENCED BY A LEGAL  OPINION OF COUNSEL TO THE  TRANSFEROR
REASONABLY  ACCEPTABLE  TO THE COMPANY TO SUCH  EFFECT,  THE  SUBSTANCE OF WHICH
SHALL BE REASONABLY  ACCEPTABLE TO THE COMPANY.  THIS SECURITY MAY BE PLEDGED IN
CONNECTION  WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED  BROKER-DEALER  OR
OTHER LOAN WITH A FINANCIAL  INSTITUTION  THAT IS AN  "ACCREDITED  INVESTOR"  AS
DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT.

                          COMMON STOCK PURCHASE WARRANT

                To Purchase __________ Shares of Common Stock of

                     UNITED NETWORK MARKETING SERVICES, INC.

         THIS COMMON STOCK PURCHASE WARRANT (the "Warrant")  CERTIFIES that, for
value received,  _________________________ (the "Holder"), is entitled, upon the
terms and subject to the limitations on exercise and the conditions  hereinafter
set forth,  at any time on or after the date of  issuance of this  Warrant  (the
"Initial  Exercise  Date") and on or prior to the five year  anniversary  of the
Initial Exercise Date (the "Termination Date") but not thereafter,  to subscribe
for and  purchase  from United  Network  Marketing  Services,  Inc.,  a Delaware
corporation (the "Company"), up to _______________ shares (the "Warrant Shares")
of Common  Stock,  par value  $0.001  per share,  of the  Company  (the  "Common
Stock").  The purchase price of one share of Common Stock (the "Exercise Price")
under this Warrant shall be $2.25, subject to adjustment hereunder.  CAPITALIZED
TERMS USED AND NOT OTHERWISE DEFINED HEREIN SHALL HAVE THE MEANINGS SET FORTH IN
THAT CERTAIN  SECURITIES  PURCHASE AGREEMENT (THE "PURCHASE  AGREEMENT"),  DATED
JANUARY __, 2005 AMONG THE COMPANY AND THE PURCHASERS SIGNATORY THERETO.

         1.  Title to  Warrant.  Prior to the  Termination  Date and  subject to
compliance with applicable laws and Section 7 of this Warrant,  this Warrant and
all rights hereunder are  transferable,  in whole or in part, to up to three (3)
Persons in any 12 month  period,  at the office or agency of the  Company by the
Holder in person or by duly authorized attorney,  upon surrender of this Warrant
together  with  the  Assignment  Form  annexed  hereto  properly  endorsed.  The
transferee  shall sign an  investment  letter in form and  substance  reasonably
satisfactory to the Company.

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         2.  Authorization  of Shares.  The Company  covenants  that all Warrant
Shares which may be issued upon the exercise of the purchase rights  represented
by this Warrant will, upon exercise of the purchase  rights  represented by this
Warrant,  be duly authorized,  validly issued,  fully paid and nonassessable and
free from all taxes,  liens and charges in respect of the issue  thereof  (other
than taxes in  respect of any  transfer  occurring  contemporaneously  with such
issue).

         3. Exercise of Warrant.

                           (a) Exercise of the purchase  rights  represented  by
         this  Warrant  may be made at any time or times on or after the Initial
         Exercise Date and on or before the Termination  Date by delivery to the
         Company of a duly  executed  facsimile  copy of the Notice of  Exercise
         Form annexed hereto, at the office of the Company (or such other office
         or agency of the  Company as it may  designate  by notice in writing to
         the  registered  Holder at the address of such Holder  appearing on the
         books of the Company);  provided, however, within five (5) Trading Days
         of the date said Notice of Exercise is delivered  to the  Company,  the
         Holder  shall have  surrendered  this  Warrant to the  Company  and the
         Company shall have received payment of the aggregate  Exercise Price of
         the shares thereby  purchased by wire transfer or cashier's check drawn
         on a United States bank.  Certificates for shares  purchased  hereunder
         shall be delivered to the Holder within three (3) Trading Days from the
         latest to occur of  delivery  to the  Company of the Notice of Exercise
         Form,  surrender of this Warrant and payment of the aggregate  Exercise
         Price as set forth above ("Warrant Share Delivery Date").  This Warrant
         shall be deemed to have been  exercised on the date the Exercise  Price
         is received by the Company.  The Warrant Shares shall be deemed to have
         been issued,  and Holder or any other person so  designated to be named
         therein  shall be  deemed  to have  become a holder  of  record of such
         shares for all purposes,  as of the date the Warrant has been exercised
         by payment to the Company of the Exercise  Price and all taxes required
         to be paid by the  Holder,  if any,  pursuant to Section 5 prior to the
         issuance  of such  shares,  have been  paid.  If the  Company  fails to
         deliver to the Holder a certificate or  certificates  representing  the
         Warrant  Shares  pursuant to this  Section  3(a) by the  Warrant  Share
         Delivery  Date,  then the Holder  will have the right to  rescind  such
         exercise.

                           (b) If this  Warrant  shall  have been  exercised  in
         part, the Company shall,  at the time of delivery of the certificate or
         certificates  representing  Warrant  Shares,  deliver  to  Holder a new
         Warrant  evidencing  the rights of Holder to purchase  the  unpurchased
         Warrant  Shares called for by this Warrant,  which new Warrant shall in
         all other respects be identical with this Warrant.

                           (c) Subject to the  provisions  of this Section 3, if
         there is i) an effective  Registration Statement registering the resale
         of the Warrant  Shares by the Holder,  ii) the closing bid price of the
         Common  Stock  for  each of ten  (10)  consecutive  Trading  Days  (the
         "Measurement Period", which period shall not have commenced until after
         such Effective  Date) equals or exceeds $3.50 (the  "Threshold  Price")
         (subject to  adjustment  for reverse and forward  stock  splits,  stock
         dividends,  stock  combinations  and other similar  transactions of the
         Common Stock that occur after the date of the Purchase  Agreement)  and
         iii) the average daily trading volume for the Measurement Period equals

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         or exceeds 100,000 shares, then the Company may, within two (2) Trading
         Days of such  period,  call for  cancellation  of all or any portion of
         this Warrant for which a Notice of Exercise has not yet been  delivered
         (such  right,  a "Call").  To  exercise  this right,  the Company  must
         deliver to the Holder an irrevocable  written notice (a "Call Notice"),
         indicating  therein the  unexercised  portion of this  Warrant to which
         such notice  applies.  If the  conditions set forth below for such Call
         are satisfied  from the period from the date of the Call Notice through
         and  including  the Call Date (as defined  below),  then any portion of
         this Warrant subject to such Call Notice for which a Notice of Exercise
         shall not have been received from and after the date of the Call Notice
         will be  cancelled at 6:30 p.m.  (New York City time) on the  fifteenth
         (15th)  Trading  Day after the date the Call  Notice is received by the
         Holder (such date, the "Call Date").  Any  unexercised  portion of this
         Warrant to which the Call Notice does not pertain will be unaffected by
         such Call Notice.  In furtherance  thereof,  the Company  covenants and
         agrees  that it will honor all  Notices  of  Exercise  with  respect to
         Warrant Shares subject to a Call Notice that are tendered from the time
         of delivery of the Call Notice  through 6:30 p.m.  (New York City time)
         on the Call  Date.  The  parties  agree  that any  Notice  of  Exercise
         delivered following a Call Notice shall first reduce to zero the number
         of Warrant  Shares  subject to such Call Notice  prior to reducing  the
         remaining Warrant Shares available for purchase under this Warrant. For
         example,  if (x) this  Warrant  then  permits the Holder to acquire 100
         Warrant Shares,  (y) a Call Notice  pertains to 75 Warrant Shares,  and
         (z) prior to 6:30 p.m. (New York City time) on the Call Date the Holder
         tenders a Notice of Exercise in respect of 50 Warrant Shares,  then (1)
         on the Call Date the right  under  this  Warrant  to acquire 25 Warrant
         Shares will be automatically  cancelled,  (2) the Company,  in the time
         and manner required under this Warrant,  will have issued and delivered
         to the Holder 50 Warrant  Shares in respect of the  exercise  following
         receipt  of the  Call  Notice,  and  (3)  the  Holder  may,  until  the
         Termination Date,  exercise this Warrant for 25 Warrant Shares (subject
         to  adjustment  as herein  provided  and  subject  to  subsequent  Call
         Notices).  Subject again to the  provisions  of this Section 3(c),  the
         Company may  deliver  subsequent  Call  Notices for any portion of this
         Warrant  for which the  Holder  shall  not have  delivered  a Notice of
         Exercise.  Notwithstanding  anything to the  contrary set forth in this
         Warrant,  the  Company  may not  deliver a Call  Notice or require  the
         cancellation  of this  Warrant  (and any  Call  Notice  will be  void),
         unless,  from the  beginning of the ten (10)  consecutive  Trading Days
         used to determine  whether the Common Stock has achieved the  Threshold
         Price  through  the Call Date,  (i) the Company  shall have  honored in
         accordance  with the terms of this  Warrant  all  Notices  of  Exercise
         delivered by 6:30 p.m. (New York City time) on the Call Date,  (ii) the
         Registration  Statement shall be effective as to all Warrant Shares and
         the  prospectus  thereunder  available  for use by the  Holder  for the
         resale of all such  Warrant  Shares and (iii) the Common Stock shall be
         listed or quoted for trading on the Trading Market. The Company's right
         to Call the Warrant  shall be exercised  ratably  among the  Purchasers
         based on each Purchaser's  initial purchase of Preferred Stock pursuant
         to the Purchase Agreement.

         4. No  Fractional  Shares  or  Scrip.  No  fractional  shares  or scrip
representing  fractional  shares  shall  be  issued  upon the  exercise  of this
Warrant.  As to any  fraction of a share  which the Holder  would  otherwise  be
entitled to purchase upon such exercise, the Company shall pay a cash adjustment

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in respect of such final fraction in an amount equal to such fraction multiplied
by the Exercise Price.

         5. Charges,  Taxes and Expenses.  Issuance of certificates  for Warrant
Shares shall be made without  charge to the Holder for any issue or transfer tax
or other incidental expense in respect of the issuance of such certificate,  all
of which taxes and expenses shall be paid by the Company,  and such certificates
shall be  issued  in the name of the  Holder  or in such name or names as may be
directed by the Holder;  provided,  however,  that in the event certificates for
Warrant  Shares are to be issued in a name  other  than the name of the  Holder,
this  Warrant  when  surrendered  for  exercise  shall  be  accompanied  by  the
Assignment Form attached hereto duly executed by the Holder; and the Company may
require, as a condition thereto, the payment of a sum sufficient to reimburse it
for any transfer tax incidental thereto.

         6. Closing of Books.  The Company will not close its stockholder  books
or records in any manner  which  prevents the timely  exercise of this  Warrant,
pursuant to the terms hereof.

         7. Transfer, Division and Combination.

                           (a)  Subject  to  compliance   with  any   applicable
         securities  laws and the  conditions  set forth in  Sections 1 and 7(e)
         hereof and to the provisions of Section 4.1 of the Purchase  Agreement,
         this Warrant and all rights hereunder are transferable,  in whole or in
         part,  upon  surrender of this Warrant at the  principal  office of the
         Company,   together   with  a  written   assignment   of  this  Warrant
         substantially  in the form attached  hereto duly executed by the Holder
         or its agent or attorney and funds sufficient to pay any transfer taxes
         payable upon the making of such  transfer.  Upon such surrender and, if
         required,  such  payment,  the Company  shall execute and deliver a new
         Warrant or Warrants in the name of the assignee or assignees and in the
         denomination   or   denominations   specified  in  such  instrument  of
         assignment,  and shall issue to the  assignor a new Warrant  evidencing
         the portion of this  Warrant not so assigned,  and this  Warrant  shall
         promptly  be  cancelled.  A  Warrant,  if  properly  assigned,  may  be
         exercised  by a new holder for the purchase of Warrant  Shares  without
         having a new Warrant issued.

                           (b) This  Warrant  may be  divided or  combined  with
         other Warrants upon presentation  hereof at the aforesaid office of the
         Company,  together  with a  written  notice  specifying  the  names and
         denominations  in which new  Warrants  are to be issued,  signed by the
         Holder or its agent or  attorney.  Subject to  compliance  with Section
         7(a),  as to any  transfer  which may be involved  in such  division or
         combination,  the  Company  shall  execute and deliver a new Warrant or
         Warrants  in  exchange  for the  Warrant or  Warrants  to be divided or
         combined in accordance with such notice.

                           (c) The Company shall  prepare,  issue and deliver at
         its own expense (other than transfer taxes) the new Warrant or Warrants
         under this Section 7.

                           (d) The Company agrees to maintain,  at its aforesaid
         office,  books for the registration and the registration of transfer of
         the Warrants.

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                           (e) If, at the time of the  surrender of this Warrant
         in connection  with any transfer of this Warrant,  the transfer of this
         Warrant shall not be registered  pursuant to an effective  registration
         statement  under  the  Securities  Act  and  under   applicable   state
         securities or blue sky laws, the Company may require, as a condition of
         allowing  such  transfer  (i) that the  Holder  or  transferee  of this
         Warrant,  as the case may be, furnish to the Company a written  opinion
         of  counsel  (which  opinion  shall be in  form,  substance  and  scope
         customary  for opinions of counsel in comparable  transactions)  to the
         effect that such  transfer may be made without  registration  under the
         Securities Act and under  applicable state securities or blue sky laws,
         (ii) that the holder or  transferee  execute and deliver to the Company
         an investment  letter in form and  substance  acceptable to the Company
         and (iii) that the transferee be an "accredited investor" as defined in
         Rule  501   promulgated   under  the  Securities  Act  or  a  qualified
         institutional  buyer as defined in Rule  144A(a)  under the  Securities
         Act.

         8. No Rights as  Shareholder  until  Exercise.  This  Warrant  does not
entitle the Holder to any voting rights or other rights as a shareholder  of the
Company prior to the exercise hereof. Upon the surrender of this Warrant and the
payment of the aggregate  Exercise Price,  the Warrant Shares so purchased shall
be and be deemed to be issued to such Holder as the record  owner of such shares
as of the  close of  business  on the  later of the  date of such  surrender  or
payment.

         9. Loss,  Theft,  Destruction  or  Mutilation  of Warrant.  The Company
covenants that upon receipt by the Company of evidence  reasonably  satisfactory
to it of the loss, theft, destruction or mutilation of this Warrant or any stock
certificate  relating  to the  Warrant  Shares,  and in case of  loss,  theft or
destruction,  of indemnity or security reasonably  satisfactory to it (which, in
the case of the  Warrant,  shall not include the posting of any bond),  and upon
surrender and cancellation of such Warrant or stock  certificate,  if mutilated,
the Company  will make and deliver a new  Warrant or stock  certificate  of like
tenor  and  dated  as of such  cancellation,  in lieu of such  Warrant  or stock
certificate.

         10. Saturdays, Sundays, Holidays, etc. If the last or appointed day for
the  taking of any action or the  expiration  of any right  required  or granted
herein shall be a Saturday,  Sunday or a legal holiday,  then such action may be
taken or such right may be exercised on the next  succeeding day not a Saturday,
Sunday or legal holiday.

         11.  Adjustments of Exercise Price and Number of Warrant Shares;  Stock
Splits, etc. The number and kind of securities  purchasable upon the exercise of
this Warrant and the Exercise Price shall be subject to adjustment  from time to
time upon the happening of any of the  following.  In case the Company shall (i)
pay a dividend  in shares of Common  Stock or make a  distribution  in shares of
Common Stock to holders of its  outstanding  Common  Stock,  (ii)  subdivide its
outstanding  shares  of Common  Stock  into a greater  number of  shares,  (iii)
combine its  outstanding  shares of Common Stock into a smaller number of shares
of  Common  Stock,  or  (iv)  issue  any  shares  of  its  capital  stock  in  a
reclassification  of the  Common  Stock,  then  the  number  of  Warrant  Shares
purchasable  upon  exercise of this Warrant  immediately  prior thereto shall be
adjusted so that the Holder  shall be entitled to receive the kind and number of
Warrant  Shares or other  securities of the Company which it would have owned or
have been  entitled  to  receive  had such  Warrant  been  exercised  in advance
thereof.  Upon each such  adjustment of the kind and number of Warrant Shares or

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other  securities of the Company  which are  purchasable  hereunder,  the Holder
shall  thereafter be entitled to purchase the number of Warrant  Shares or other
securities resulting from such adjustment at an Exercise Price per Warrant Share
or  other  security  obtained  by  multiplying  the  Exercise  Price  in  effect
immediately prior to such adjustment by the number of Warrant Shares purchasable
pursuant hereto  immediately prior to such adjustment and dividing by the number
of  Warrant  Shares or other  securities  of the  Company  that are  purchasable
pursuant hereto  immediately after such adjustment.  An adjustment made pursuant
to this paragraph shall become effective immediately after the effective date of
such event  retroactive to the record date, if any, for such event. For example,
if the Company  declared a 1-for-4  reverse  stock split and 400 Warrant  Shares
were  purchasable  hereunder,  then after such 1-for-4  reverse  stock split the
Warrant  Shares  purchasable  hereunder  would become 100 and the Exercise Price
would become $9.00 per share. Such Exercise Price is obtained by multiplying the
current  $2.25  Exercise  Price by 400  Warrant  Shares  purchasable  under this
example and dividing  the product by 100 Warrant  Shares  purchasable  after the
1-for-4 reverse stock split.

         12.   Reorganization,   Reclassification,   Merger,   Consolidation  or
Disposition  of  Assets.  In case the  Company  shall  reorganize  its  capital,
reclassify  its  capital  stock,  consolidate  or  merge  with or  into  another
corporation  (where the Company is not the surviving  corporation or where there
is a change in or distribution with respect to the Common Stock of the Company),
or sell, transfer or otherwise dispose all or substantially all of its property,
assets or business  to another  corporation  and,  pursuant to the terms of such
reorganization,   reclassification,  merger,  consolidation  or  disposition  of
assets, shares of common stock of the successor or acquiring corporation, or any
cash,  shares of stock or other securities or property of any nature  whatsoever
(including  warrants or other subscription or purchase rights) in addition to or
in lieu of  common  stock of the  successor  or  acquiring  corporation  ("Other
Property"),  are to be received by or distributed to the holders of Common Stock
of the Company, then the Holder shall have the right thereafter to receive, upon
exercise of this Warrant,  the number of shares of Common Stock of the successor
or acquiring corporation or of the Company, if it is the surviving  corporation,
and  Other  Property  receivable  upon or as a  result  of such  reorganization,
reclassification,  merger, consolidation or disposition of assets by a Holder of
the  number of shares of Common  Stock for which  this  Warrant  is  exercisable
immediately   prior  to  such  event.  In  case  of  any  such   reorganization,
reclassification,  merger, consolidation or disposition of assets, the successor
or acquiring  corporation (if other than the Company) shall expressly assume the
due and  punctual  observance  and  performance  of each and every  covenant and
condition of this  Warrant to be  performed  and observed by the Company and all
the obligations and liabilities hereunder,  subject to such modifications as may
be deemed appropriate (as determined in good faith by resolution of the Board of
Directors of the Company) in order to provide for  adjustments of Warrant Shares
for which this Warrant is  exercisable  which shall be as nearly  equivalent  as
practicable to the adjustments  provided for in this Section 12. For purposes of
this Section 12, "common stock of the successor or acquiring  corporation" shall
include  stock of such  corporation  of any class which is not  preferred  as to
dividends or assets over any other class of stock of such  corporation and which
is  not  subject  to  redemption   and  shall  also  include  any  evidences  of
indebtedness,  shares of stock or other securities which are convertible into or
exchangeable  for any such stock,  either  immediately  or upon the arrival of a
specified  date or the happening of a specified  event and any warrants or other
rights to subscribe for or purchase any such stock. The foregoing  provisions of

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this  Section  12  shall   similarly   apply  to   successive   reorganizations,
reclassifications, mergers, consolidations or disposition of assets.

         13.  Voluntary  Adjustment by the Company.  The Company may at any time
during the term of this Warrant  reduce the then current  Exercise  Price to any
amount and for any period of time deemed  appropriate  by the Board of Directors
of the Company.

         14.  Notice of  Adjustment.  Whenever  the number of Warrant  Shares or
number or kind of securities or other property  purchasable upon the exercise of
this Warrant or the Exercise Price is adjusted, as herein provided,  the Company
shall give notice thereof to the Holder,  which notice shall state the number of
Warrant Shares (and other securities or property)  purchasable upon the exercise
of this  Warrant  and the  Exercise  Price of such  Warrant  Shares  (and  other
securities or property) after such  adjustment,  setting forth a brief statement
of the facts  requiring  such  adjustment  and setting forth the  computation by
which such adjustment was made.

         15. Notice of Corporate Action. If at any time:

                           (a) the Company shall take a record of the holders of
         its  Common  Stock  for the  purpose  of  entitling  them to  receive a
         dividend  or  other  distribution,  or any  right to  subscribe  for or
         purchase any evidences of its indebtedness,  any shares of stock of any
         class or any other  securities  or  property,  or to receive  any other
         right, or

                           (b) there shall be any capital  reorganization of the
         Company,  any reclassification or recapitalization of the capital stock
         of the  Company  or any  consolidation  or merger of the  Company  with
         (other  than a  consolidation  or merger in which  the  Company  is the
         surviving  corporation),  or any sale, transfer or other disposition of
         all or  substantially  all the  property,  assets  or  business  of the
         Company to, another corporation or,

                            (c)  there  shall  be  a  voluntary  or  involuntary
         dissolution, liquidation or winding up of the Company;

then, in any one or more of such cases,  the Company shall give to Holder (i) at
least twenty (20) days' prior written  notice of the date on which a record date
shall be selected for such dividend,  distribution  or right or for  determining
rights to vote in respect of any such reorganization,  reclassification, merger,
consolidation, sale, transfer, disposition,  liquidation or winding up, and (ii)
in the case of any such reorganization, reclassification, merger, consolidation,
sale, transfer,  disposition,  dissolution,  liquidation or winding up, at least
twenty  (20)  days'  prior  written  notice of the date when the same shall take
place.  Such notice in accordance  with the foregoing  clause also shall specify
(i) the date on which any such  record is to be taken  for the  purpose  of such
dividend,  distribution or right,  the date on which the holders of Common Stock
shall be entitled to any such dividend,  distribution  or right,  and the amount
and  character  thereof,  and (ii) the  date on which  any such  reorganization,
reclassification,    merger,   consolidation,   sale,   transfer,   disposition,
dissolution,  liquidation  or winding  up is to take place and the time,  if any
such  time is to be fixed,  as of which the  holders  of Common  Stock  shall be
entitled to exchange  their  Warrant  Shares for  securities  or other  property

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deliverable upon such disposition,  dissolution, liquidation or winding up. Each
such written  notice shall be  sufficiently  given if addressed to Holder at the
last address of Holder  appearing  on the books of the Company and  delivered in
accordance with Section 17(d).

         16. Authorized Shares. The Company covenants that during the period the
Warrant is outstanding,  it will reserve from its authorized and unissued Common
Stock a  sufficient  number of shares to provide for the issuance of the Warrant
Shares  upon the  exercise  of any  purchase  rights  under  this  Warrant  (the
"Required Minimum"). If, on any date, the number of authorized but unissued (and
otherwise  unreserved)  shares of Common Stock is less than the Required Minimum
on such date, then the Board of Directors of the Company shall use  commercially
reasonable   efforts  to  amend  the  Company's   certificate   or  articles  of
incorporation to increase the number of authorized but unissued shares of Common
Stock to at least the number of shares of Common  Stock that would  result  from
the full exercise of the Warrant Shares at such time, as soon as possible and in
any event not later  than the 75th day after  such  date.  The  Company  further
covenants that its issuance of this Warrant shall  constitute  full authority to
its officers who are charged with the duty of executing  stock  certificates  to
execute and issue the  necessary  certificates  for the Warrant  Shares upon the
exercise of the purchase  rights under this  Warrant.  The Company will take all
such  reasonable  action as may be necessary to assure that such Warrant  Shares
may be issued as provided  herein  without  violation of any  applicable  law or
regulation,  or of any  requirements of the Trading Market upon which the Common
Stock may be listed.

         Except and to the extent as waived or consented  to by the Holder,  the
Company shall not by any action,  including,  without  limitation,  amending its
certificate of incorporation or through any reorganization,  transfer of assets,
consolidation,  merger,  dissolution,  issue or sale of  securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms of this  Warrant,  but will at all times in good  faith  assist in the
carrying  out of all such terms and in the taking of all such  actions as may be
necessary  or  appropriate  to protect the rights of Holder as set forth in this
Warrant against  impairment.  Without  limiting the generality of the foregoing,
the Company will (a) not increase the par value of any Warrant  Shares above the
amount payable therefor upon such exercise immediately prior to such increase in
par value,  (b) take all such action as may be necessary or appropriate in order
that the Company may  validly  and  legally  issue fully paid and  nonassessable
Warrant  Shares upon the  exercise  of this  Warrant,  and (c) use  commercially
reasonable  efforts to obtain all such  authorizations,  exemptions  or consents
from any public regulatory body having jurisdiction  thereof as may be necessary
to enable the Company to perform its obligations under this Warrant.

         Before  taking any action  which would result in an  adjustment  in the
number of  Warrant  Shares  for which  this  Warrant  is  exercisable  or in the
Exercise Price, the Company shall obtain all such  authorizations  or exemptions
thereof,  or consents  thereto,  as may be necessary from any public  regulatory
body or bodies having jurisdiction thereof.

                                       8
<PAGE>

         17. Miscellaneous.

                           (a)  Jurisdiction.   All  questions   concerning  the
         construction,  validity, enforcement and interpretation of this Warrant
         shall be determined in accordance  with the  provisions of the Purchase
         Agreement.

                           (b)  Restrictions.  The Holder  acknowledges that the
         Warrant  Shares  acquired  upon the  exercise of this  Warrant,  if not
         registered,  will have  restrictions  upon resale  imposed by state and
         federal securities laws.

                           (c) Nonwaiver  and Expenses.  No course of dealing or
         any delay or failure to  exercise  any right  hereunder  on the part of
         Holder shall  operate as a waiver of such right or otherwise  prejudice
         Holder's rights, powers or remedies,  notwithstanding the fact that all
         rights  hereunder  terminate on the  Termination  Date.  If the Company
         willfully  and  knowingly  fails to comply with any  provision  of this
         Warrant,  which  results in any  material  damages to the  Holder,  the
         Company  shall pay to Holder  such  amounts as shall be  sufficient  to
         cover any costs and expenses including,  but not limited to, reasonable
         attorneys' fees, including those of appellate proceedings,  incurred by
         Holder in  collecting  any amounts due pursuant  hereto or in otherwise
         enforcing any of its rights, powers or remedies hereunder.

                           (d) Notices.  Any notice,  request or other  document
         required or  permitted  to be given or  delivered  to the Holder by the
         Company shall be delivered in accordance with the notice  provisions of
         the Purchase Agreement;  provided that upon any permitted assignment of
         this Warrant,  the assignee shall promptly provide the Company with its
         contact information.

                           (e) Limitation of Liability.  No provision hereof, in
         the  absence  of any  affirmative  action by Holder  to  exercise  this
         Warrant or purchase  Warrant Shares,  and no enumeration  herein of the
         rights or  privileges  of Holder,  shall give rise to any  liability of
         Holder for the purchase  price of any Common Stock or as a  stockholder
         of the Company, whether such liability is asserted by the Company or by
         creditors of the Company.

                           (f) Remedies.  Holder,  in addition to being entitled
         to exercise all rights granted by law,  including  recovery of damages,
         will be  entitled  to  specific  performance  of its rights  under this
         Warrant. The Company agrees that monetary damages would not be adequate
         compensation  for any loss  incurred by reason of a breach by it of the
         provisions  of this  Warrant and hereby  agrees to waive the defense in
         any  action  for  specific  performance  that a remedy  at law would be
         adequate.

                           (g)  Successors  and Assigns.  Subject to  applicable
         securities laws, this Warrant and the rights and obligations  evidenced
         hereby shall inure to the benefit of and be binding upon the successors
         of the Company and the successors and permitted assigns of Holder.  The
         provisions  of this  Warrant are  intended to be for the benefit of all
         Holders from time to time of this Warrant and shall be  enforceable  by
         any such Holder or holder of Warrant Shares.

                           (h)  Amendment.  This  Warrant  may  be  modified  or
         amended or the provisions hereof waived with the written consent of the
         Company and the Holder.

                                       9
<PAGE>

                           (i) Severability.  Wherever possible,  each provision
         of this Warrant shall be  interpreted in such manner as to be effective
         and valid under  applicable  law, but if any  provision of this Warrant
         shall be prohibited by or invalid under  applicable law, such provision
         shall be ineffective  to the extent of such  prohibition or invalidity,
         without  invalidating the remainder of such provisions or the remaining
         provisions of this Warrant.

                           (j)  Headings.  The headings used in this Warrant are
         for the  convenience  of reference only and shall not, for any purpose,
         be deemed a part of this Warrant.

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

                                       10
<PAGE>

                  IN WITNESS WHEREOF,  the Company has caused this Warrant to be
executed by its officer thereunto duly authorized.

Dated:  January ___, 2005

                                         UNITED NETWORK MARKETING SERVICES, INC.

                                         By: ___________________________________
                                             Name:
                                             Title:

                                       11
<PAGE>

                               NOTICE OF EXERCISE

To:      United Network Marketing Services, Inc.

         (1) The undersigned  hereby elects to purchase  ________ Warrant Shares
of the Company  pursuant to the terms of the attached Warrant (only if exercised
in full), and tenders  herewith payment of the exercise price in full,  together
with all applicable transfer taxes, if any.

         (2) Payment shall take the form of (check applicable box):

                  [ ] in lawful money of the United States; or

                  [ ] the  cancellation  of such number of Warrant  Shares as is
                  necessary,  in  accordance  with  the  formula  set  forth  in
                  subsection  3(d), to exercise this Warrant with respect to the
                  maximum number of Warrant Shares  purchasable  pursuant to the
                  cashless exercise procedure set forth in subsection 3(d).

         (3)  Please  issue a  certificate  or  certificates  representing  said
Warrant  Shares  in the  name of the  undersigned  or in such  other  name as is
specified below:

                           -------------------------------

The Warrant Shares shall be delivered to the following:

                           -------------------------------

                           -------------------------------

                           -------------------------------

         (4) Accredited Investor. The undersigned is an "accredited investor" as
defined in Regulation D under the Securities Act of 1933, as amended.

                                          [PURCHASER]

                                          By: ____________________________
                                          Name:
                                          Title:

                                          Dated: _________________________

<PAGE>

                                 ASSIGNMENT FORM

                    (To assign the foregoing warrant, execute
                    this form and supply required information.
                  Do not use this form to exercise the warrant.)

         FOR VALUE  RECEIVED,  the  foregoing  Warrant and all rights  evidenced
thereby are hereby assigned to

_______________________________________________ whose address is

__________________________________________________________________.

__________________________________________________________________

                                             Dated: ______________, _______

                    Holder's Signature: _____________________________

                    Holder's Address:   _____________________________

                                        _____________________________

Signature Guaranteed:  ___________________________________________

NOTE: The signature to this  Assignment Form must correspond with the name as it
appears on the face of the Warrant,  without  alteration or  enlargement  or any
change whatsoever,  and must be guaranteed by a bank or trust company.  Officers
of corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing Warrant.Exhibit 10.2

                                      Confidential Treatment Requested indicates
                                    portions of this document have been redacted
                             and have been separately filed with the Commission.

                              DEVELOPMENT AGREEMENT

              THIS AGREEMENT is entered into and effective as of the 30th day of
July 2004 (the "Effective Date"), by and between the Bio-Technical Resources
Division of Arkion Life Sciences LLC, a Delaware limited liability company and
their affiliates ("BTR") and Dyadic International Inc., a Florida corporation
and their affiliates (the "COMPANY").

                              W I T N E S S E T H:

              WHEREAS, the Company is in the possession of systems for the
discovery, over-expression, development and manufacturing of research and
commercial quantities of enzymes, proteins, peptides and other
biologically-produced molecules using their proprietary strains of
microorganisms, including but not limited to their Chrysosporium lucknowense
("C1") fungal host, (hereinafter the "Systems").

              WHEREAS, BTR has the capability, manpower and facilities to
conduct research on using the Systems to express protein products, to evaluate
the System's performance, to improve strains and scale-up processes to develop
and produce protein products;

              WHEREAS, the Company wishes BTR to assist it in various research
and development projects to be decided by the Company, including but not limited
to work to demonstrate the capabilities of the Systems for producing research
and commercial quantities of enzymes, proteins, peptides and other
biologically-produced molecules of interest to pharmaceutical, agricultural,
chemical, animal and human nutrition, starch, textile, pulp and paper and other
industries; and

              WHEREAS, BTR already performs other research and development work
for the Company pursuant to Development Agreements dated October 10, 1995, as
amended, January 29, 1999, as amended July 29, 1999, as amended, November 24,
1999, as amended June 7, 2000, as amended January 1, 2001, as amended January 1,
2002, and as amended January 6, 2003 (the "Existing Agreements"), which shall
remain in effect and be supplemented by this Agreement.

              NOW, THEREFORE, the parties agree as follows:

                                   ARTICLE I
                                   DEFINITIONS

              1.1 The following terms when used in this Agreement shall have the
meanings set forth below:

                 (A) "AFFILIATE" means any U.S. or foreign entity that controls,
is controlled directly by, or indirectly through one or more intermediaries, or
is under common control with a Party. "Control" means ownership of greater than
fifty percent (50%) of the voting equity interest of a corporation or greater
than a fifty percent (50%) ownership interest in a partnership, corporation or
other entity.

** CONFIDENTIAL TREATMENT REQUESTED

                                       1
<PAGE>
                                      Confidential Treatment Requested indicates
                                    portions of this document have been redacted
                             and have been separately filed with the Commission.

            (B) "EFFECTIVE DATE" means the date first set forth above.

            (C) "FIELD OF THIS AGREEMENT" means using the Systems to make
strains expressing recombinant proteins, improving production of protein in the
Systems and scaling-up the processes to develop and produce protein products
expressed using the Systems.

            (D) "PARTY" or "PARTIES" means a party or the parties to this
Agreement.

            (E) "SHARES" means shares of stock of Common Stock of the Company.

                                   ARTICLE II
                               DEVELOPMENT PROGRAM

         2.1 SCOPE OF WORK. BTR agrees to diligently pursue the research and
development programs to assist the Company on projects selected by the Company
within the Field of this Agreement. With respect to each project the Company
shall designate the desired scope of work to be performed by BTR. Within thirty
(30) days following receipt, BTR shall review the desired scope of the project
to ensure that it does not conflict with other contractual commitments and shall
discuss the effort level and timing of the project with the Company. BTR shall
use its best efforts to accommodate the desired scope of work and timing
requested by the Company. The parties shall reduce the final scope of work to
writing which shall become a part of this Agreement (hereinafter the "Scope of
Work").

         2.2 LEVEL OF WORK. The Company shall request from BTR and BTR shall
provide the Company the following services:

            (A) BASE LEVEL. Pursuant to the terms of the Existing Agreements,
BTR shall continue to provide services to the Company of no less than the
current rate of as of the date of this Agreement (1.1 full time equivalent
person ("FTE") per month) (the "Base Level"). All Base Level work shall be paid
in cash pursuant to the terms of the Existing Agreements or their replacements.
The Company shall purchase no less than the Base Level of services through
September 30, 2006.

            (B) ADDITIONAL LEVEL. BTR shall provide services equal to **
** full time equivalent person-months (the "Additional Level") at an average
rate of ** FTE per month; provided, however that the total Additional Level
services shall not exceed a value of One Million Two Hundred and Fifty Thousand
U.S. Dollars ($1,250,000) based on the rates set forth in Section 2.3 below. If
Additional Level services of less than ** per month are requested by the Company
or provided by BTR in any month then such deficit shall be accumulated by the
Company and the Company shall have the right to use such deficit in any
subsequent month during the term of this Agreement, subject to availability of
BTR scientists and the Company's approval of the scientific manpower assigned by
BTR. Any remaining deficits at the completion or termination of the Additional
Level services under this Agreement shall be carried over and applied to the
Base Level projects at no cost to the Company. All Additional Level services
shall be paid pursuant to the terms of Section 2.4 below. In the event services
to the Company exceed the effort level in any month for the Additional Level and
no carry over deficit remains then such additional services shall be paid in
cash to BTR within thirty (30) days following invoice by BTR.

** CONFIDENTIAL TREATMENT REQUESTED

                                       2
<PAGE>
                                      Confidential Treatment Requested indicates
                                    portions of this document have been redacted
                             and have been separately filed with the Commission.

         2.3 COST OF SERVICES. All services provided to the Company pursuant to
this Agreement shall be at the rate of ** for each FTE-month of services
provided by BTR during calendar year 2004, which rate shall be increased to **
FTE per month in 2005 and 2006.

         2.4 PAYMENT. The Company agrees to pay BTR the following fees for the
research work performed by BTR during the Development Program:

            (A) On or before June 28, 2004, the Company shall pay BTR a fee of
Two Hundred and Fifty Thousand Dollars ($250,000) by wire transfer in
immediately available funds to an account designated by BTR. Such payment shall
be credited against the initial invoices issued by BTR for Additional Level
services until a total of $250,000 in services has been provided.

            (B) For Additional Level services provided by BTR beyond the initial
Two Hundred and Fifty Thousand Dollars ($250,000) (all such services being
"Share Payment Services"), BTR shall be paid in Shares, which Shares the Company
and BTR hereby mutually and expressly acknowledge and agree are worth $3.33 per
Share (being the average per Share price (the "Per Share Value") fixed in that
certain private placement offering of the Company's Shares made pursuant to a
Private Placement Memorandum dated April 8, 2004 (the "PPM"), a copy of which
(together with a Business Plan of the Company dated April, 2004) BTR expressly
acknowledges it has heretofore received and reviewed). During the term of this
Agreement, the Company agrees to reserve and allocate an aggregate of 300,300
Shares (the "Reserved Shares") for sole distribution to BTR in accordance with
the terms of this Agreement generally, and the escrow provisions of Section 2.5
hereof, specifically, it being expressly agreed by the Company and BTR that all
Share Payment Services shall be paid for by the Company by its issuance of
Reserved Shares, valued at the Per Share Value. BTR shall invoice the Company
monthly for all Additional Level services performed hereunder, and those
invoices for Share Payment Services shall specifically so state, indicating the
dollar value thereof and the number of Reserved Shares to be distributed to BTR
pursuant to the provisions of Section 2.5 hereof. Notwithstanding anything
herein to the contrary, the aggregate number of Shares issued to BTR pursuant to
this Agreement shall not exceed 300,300 Shares. Reserved Shares which are
distributed by the Escrow Agent to BTR are hereinafter referred to as "Already
Distributed Shares" and Share Payment Services in respect of which Already
Distributed Shares have been issued to BTR are referred to as "Already Paid
Share Payment Services").

            (C) All travel expense incurred by BTR personnel at the request of
or with the permission of the Company shall be reimbursed at cost in cash to
BTR.

** CONFIDENTIAL TREATMENT REQUESTED

                                       3
<PAGE>
                                      Confidential Treatment Requested indicates
                                    portions of this document have been redacted
                             and have been separately filed with the Commission.

         2.5 ESCROW.

            (A) Within thirty (30) days following the Effective Date, (i) the
Company shall deliver a stock certificate evidencing all Reserved Shares
registered in the name of Mark J. Gundersen, Esq., Klett, Rooney, Lieber and
Schorling, PC, Suite 1410, 1000 West Street, Wilmington, DE 19898, not
individually, but solely in the capacity of an escrow agent (the "Escrow Agent")
to the Escrow Agent and (ii) BTR shall execute and deliver to the Escrow Agent a
Subscription Agreement prepared by counsel to the Company substantially
identical in form and content to the form of Subscription Agreement appended as
an exhibit to the PPM, adjusted to reflect that such subscription is not being
made pursuant to the offering described in the PPM, but rather pursuant to the
terms of this Agreement (a "Subscription Agreement") providing for BTR's
subscription for all Reserved Shares. Such stock certificate and Subscription
Agreement shall be held in escrow by the Escrow Agent until released pursuant to
the terms of this Section 2.5.

            (B) If, in BTR's sole opinion, contractual restrictions arising from
agreements between BTR and third-parties (other than the Company under this
Agreement) permit, then BTR may request the release and issuance of a stock
certificate evidencing a number of Reserved Shares equal to the quotient of (x)
the then aggregate unpaid cash value of Share Payment Services performed and
invoiced by BTR (exclusive of Already Paid Share Payment Services) divided by
(y) the Per Share Value (the "Requested Shares"), by delivering written notice
thereof (each, a "Request Notice") to both the Escrow Agent and the Company at
any time during the term of this Agreement and on or before the fifteenth (15th)
day following the termination of this Agreement, but in any event, no later than
thirty (30) days prior to the requested delivery date specified in such notice.
In addition to the requested delivery date, each Request Notice shall specify
(i) the aggregate unpaid cash value of the Share Payment Services performed and
invoiced by BTR beyond the Already Paid Share Payment Services, and (ii) the
resulting number of Requested Shares requested for release and issuance.

            (C) If, in respect of any Request Notice, the Company objects to the
release of the applicable Requested Shares requested by BTR, the Company shall
provide BTR and the Escrow Agent with a notice of objection stating the nature
of the dispute and the number of Requested Shares affected by the dispute
("Notice of Objection") no later than seven (7) days prior to the requested
delivery date (and Requested Shares, to the extent BTR's rights thereto are
disputed by the Company are referred to as "Disputed Shares").

            (D) If the Company timely issues a Notice of Objection, the Escrow
Agent shall not distribute any of the Disputed Shares indicated in such Notice
of Objection unless and until the Parties have resolved the dispute and
submitted a mutually signed letter authorizing release or a decision of the
arbitrator has been issued pursuant to Section 6.11 herein, with any such
distribution being made in accordance with the terms of such letter or decision,
as applicable. If the Company does not object to the release of the applicable
Requested Shares, the Escrow Agent shall issue the Requested Shares in
accordance with the provisions of subsections (e) and (f) below.

** CONFIDENTIAL TREATMENT REQUESTED

                                       4
<PAGE>
                                      Confidential Treatment Requested indicates
                                    portions of this document have been redacted
                             and have been separately filed with the Commission.

            (E) If the number of Requested Shares is less than the undistributed
balance of the Reserved Shares, then, prior to the requested delivery date
specified in a timely Request Notice: (i) the Company shall deliver to the
Escrow Agent, in exchange for the return of the stock certificate(s) then held
by the Escrow Agent, (A) a certificate in the name of BTR evidencing the number
of Requested Shares and (B) a certificate in the name of the Escrow Agent
evidencing the resulting balance of the Reserved Shares which are not Already
Distributed Shares; and, (ii) BTR shall deliver to the Escrow Agent, in exchange
therefore, the Subscription Agreement(s) then held by the Escrow Agent, except
that once the Escrow Agent has distributed the Subscription Agreement to the
Company, this requirement shall no longer apply to any subsequent issuances of
Requested Shares.

            (F) If the number of Requested Shares is the undistributed balance
of the Reserved Shares, then, prior to the requested delivery date specified in
a timely Request Notice: (A) the Company shall deliver to the Escrow Agent, in
exchange for the return of the stock certificate(s) then held by the Escrow
Agent, a certificate in the name of BTR evidencing the undistributed balance of
the Requested Shares, and (B) the Escrow Agent shall release and distribute (i)
to BTR a stock certificate evidencing the Requested Shares and (ii) to the
Company, the Subscription Agreement (if the Subscription Agreement had not
theretofore been distributed to the Company).

            (G) Each stock certificate issued pursuant to this Section 2.5 shall
bear the restrictive legend referred to in the Investors' Rights Agreement
referred to in both the PPM and the Subscription Agreement.

         2.6 COMMENCEMENT OF WORK. Services to be provided pursuant to the
Additional Level shall commence no later than October 1, 2004 and shall
terminate no later than September 30, 2006.

         2.7 PROGRAM OBJECTIVES/PROGRESS REPORTS. BTR and the Company shall meet
on a regular basis mutually acceptable to both Parties to review the progress of
the research program and to establish program objectives for each project. The
Company shall have the right to visit BTR's facility and review the research
program on a reasonable basis during business hours. In the event the Company
desires BTR to perform work beyond the Scope of Work, the Parties shall
negotiate the additional costs for such work. BTR agrees to provide the Company
with written monthly reports summarizing the progress of the research program at
BTR.

         2.8 NO ASSURANCE OF SUCCESS. The parties recognize that, due to the
uncertainties inherent in research and development work of the nature undertaken
under this Agreement, there is no assurance that work will be completed on
schedule, or that research conducted will be successful. Each party agrees to
use its reasonable efforts to complete any work undertaken by it within the
established time schedule and in a successful manner, but none of the parties
warrants or guarantees that it will in fact meet the schedule or that its work
will be successful. In the event of delay, Dyadic will have the option, in its
sole discretion, of extending this Agreement beyond the termination date
mentioned in Article 2.6 at the FTE rate in Article 2.3, adjusted for inflation
as necessary.

** CONFIDENTIAL TREATMENT REQUESTED

                                       5
<PAGE>
                                      Confidential Treatment Requested indicates
                                    portions of this document have been redacted
                             and have been separately filed with the Commission.

                                  ARTICLE III
                       OWNERSHIP OF INVENTION AND PATENTS

         3.1 (a) BTR INTELLECTUAL PROPERTY RIGHTS. All research results,
biological and biochemical materials arising from this Agreement which lie
outside of the provisions of the Company Intellectual Property Rights specified
under Article 3.1 ( b ) below shall be the sole property of BTR. Nothing herein
contained shall be deemed to be a grant from one Party to the other Party of any
rights or licenses under any intellectual property rights, except as expressly
set forth in this Agreement.

            (b) THE COMPANY INTELLECTUAL PROPERTY RIGHTS. All research results,
biological and biochemical materials arising from this Agreement, including but
not limited to, the Company's Systems, microorganisms including but not limited
to C1 and their mutants, variations, clones, progeny, derivatives and parts
thereof, **

         assay systems, methodology, fungal high-throughput screening, and
products produced thereby, reports, technical data, information, know-how,
practical experience, procedures, methodology, specifications, formulae, charts,
pictures and data, whether or not patentable, and any technology for research
and development and/or the commercial production and use of said biological and
biochemical materials which are conceived by or on behalf of the Company by BTR
or any other party pursuant to this Agreement shall be the sole property of the
Company. BTR acknowledges that the Company is and at all times will remain the
sole owner of all Intellectual Property relating to the Company's Systems,
microorganisms including but not limited to C1 and their mutants, variations,
clones, progeny, derivatives and parts thereof, **

            assay systems, methodology, fungal high-throughput screening, and
products produced thereby for the work performed at BTR under this Agreement.
Nothing herein contained shall be deemed to be a grant from one party to the
other party of any rights or licenses under any intellectual property rights,
except as expressly set forth in this Agreement.

         3.2 PATENT APPLICATIONS. BTR and their representatives will expediently
report any invention and discovery that arises from work performed pursuant to
this Agreement and shall execute all papers and do all things reasonably
requested by the Company to protect the rights of the Company with regard to the
Company's Intellectual Property Rights as set forth in Section y3.1(b) above.
The Company shall have responsibility and bear the cost for the preparation,
filing, prosecution and maintenance for all patents based on such Intellectual
Property Rights. BTR shall cooperate fully and provide to the Company all
information and data reasonably necessary and requested for that purpose.

                                   ARTICLE IV
                                 CONFIDENTIALITY

         4.1 The Company shall disclose to BTR only such technical information
as relates to the Company's strains, research strategies and methods, process
development manufacture and use of the Systems in the Field of this Agreement
("COMPANY INFORMATION"). BTR shall maintain all Company Information that it
receives from the Company concerning work to be performed pursuant to this
Agreement in confidence and shall not disclose such information to any third
party, with the exception of consultants and agents who agree in writing to
abide by the confidentiality obligations of this Agreement, for a period of five
(5) years from the date it is received, provided that such Company Information
is disclosed in writing marked confidential or is disclosed orally and confirmed
in writing marked confidential within thirty (30) days of the oral disclosure.

** CONFIDENTIAL TREATMENT REQUESTED

                                       6
<PAGE>
                                      Confidential Treatment Requested indicates
                                    portions of this document have been redacted
                             and have been separately filed with the Commission.

         4.2 BTR may disclose to the Company technical information during the
term of the Agreement ("BTR Information"). The Company shall maintain all BTR
Information that it receives from BTR in confidence and shall not disclose such
information to any third party, with the exception of consultants and agents who
agree in writing to abide by the confidentiality obligations of this Agreement,
for a period of five (5) years from the date it is received, provided that such
BTR Information is disclosed in writing marked "Confidential" or is disclosed
orally and confirmed in writing marked confidential within thirty (30) days of
the oral disclosure.

         4.3 The obligations of secrecy set forth above relating to the Company
Information and BTR Information shall not apply to information which:

            (A) is known to the public at the time of its disclosure, or becomes
known to the public after the disclosure through no fault of the receiving
Party;

            (B) the receiving Party can show was in its possession at the time
of the disclosure and was not acquired from a third party under secrecy
obligation to the disclosing Party;

            (C) the receiving Party can show came into its possession after the
time of the disclosure from a third party not under an obligation of secrecy to
the disclosing Party;

            (D) is necessarily disclosed to a third party pursuant to the
commercial sale or use by either Party of Products incorporating Information
exchanged hereunder;

            (E) is subsequently developed by the receiving party independent of
the Information disclosed hereunder; or

            (F) is required to be disclosed by law.

                                   ARTICLE V
                                   TERMINATION

         5.1 This Agreement shall commence on the Effective Date and continue in
effect until September 30, 2006; provided that the indicated party may terminate
this Agreement upon thirty (30) days prior written notice upon the occurrence of
one of the following:

            (A) Either party may terminate this Agreement if the other Party has
become insolvent, has sought protection under any provisions of the United
States bankruptcy laws, or a petition for involuntary bankruptcy has been filed
against it; or

** CONFIDENTIAL TREATMENT REQUESTED

                                       7
<PAGE>
                                      Confidential Treatment Requested indicates
                                    portions of this document have been redacted
                             and have been separately filed with the Commission.

            (B) Either party may terminate this Agreement if the other Party has
committed a material breach of this Agreement and has failed to cure such breach
within thirty (30) days following notification of such breach by the other party
or such breach cannot be cured; provided, however, that there shall be no right
of cure with respect to past due payments or issuance of Reserved Shares
hereunder; and provided, further, that BTR may cease all further work under this
Agreement pending resolution of any dispute arising under or related to this
Agreement.

         5.2 EFFECT OF TERMINATION.

            (A) Termination of this Agreement shall not relieve any Party of any
obligation or liability accrued hereunder prior to such termination, except as
expressly provided herein.

            (B) If this Agreement is terminated by the Company pursuant to
Section 5.1 above prior to BTR's performance of all of the Share Payment
Services, BTR shall pay to the Company (within fifteen (15) days following the
effective termination date) an amount equal to the following:

                  (I) if the aggregate cash value of Additional Level services
         performed by BTR hereunder as of the termination dated is less than
         $250,000, then $250,000; or

                  (II) if the aggregate cash value of Additional Level services
         performed by BTR hereunder as of the termination date exceeded
         $250,000, the product of $250,000 multiplied by a fraction (A) having
         as its numerator an amount equal to the difference between $1,000,000
         and the cash value of the Already Paid Share Payment Services performed
         by BTR as of the termination date and (B) having as its denominator the
         amount of $1,000,000.

The foregoing amount payable by BTR to the Company shall represent the Company's
liquidated damages and shall be the sole and exclusive remedy of the Company in
lieu of all other damages that may be recoverable, except in the instance where
the reason for the termination was on account of BTR's breach of its obligations
to the Company created by the provisions of Articles III and IV hereof, in which
case, in addition the Company's right to the foregoing payment, the Company
shall be entitled to all other remedies available at law or in equity.

                                   ARTICLE VI
                               GENERAL PROVISIONS

         6.1 GOVERNING LAW. This Agreement shall be governed by and construed
under the laws of the State of Delaware and the courts of the State of Delaware
shall have exclusive jurisdiction over all disputes arising from or related to
this Agreement.

         6.2 NOTICE. Any notice required or permitted to be given hereunder
shall be in writing and shall be deemed to be delivered on the day after it is
placed in the mail if sent by overnight courier of national reputation, by
facsimile confirmed by mail, or by registered or certified mail, postage
prepaid, and addressed as follows:

** CONFIDENTIAL TREATMENT REQUESTED

                                       8
<PAGE>
                                      Confidential Treatment Requested indicates
                                    portions of this document have been redacted
                             and have been separately filed with the Commission.

                           If to the Company:

                           Dyadic International, Inc.
                           140 Intracoastal Pointe Drive
                           Suite 404
                           Jupiter, Florida  33477-5064
                           Attn: President

                           If to BTR:
                           Bio-Technical Resources Division
                           Arkion Life Sciences LLC
                           1035 South Seventh Street
                           Manitowoc, WI 54220
                           Attn: President

         The address to which a Party's notices are to be sent may be changed by
that Party by giving the other Party thirty (30) days advance written notice.

         6.3 WAIVER. Failure by either Party hereto at any time to require
performance by the other Party or to claim a breach of any provision of this
Agreement shall not be construed as a waiver of any right arising under this
Agreement, including the right to require subsequent performance or contest any
subsequent breach.

         6.4 FORCE MAJEURE. Non-performance of either Party shall be excused to
the extent that performance is rendered impossible by strike, fire, flood,
governmental acts, failure of suppliers to perform, orders or restrictions, or
any other reason where failure to perform is beyond the control and not caused
by the negligence of the non-performing Party.

         6.5 ASSIGNMENT. Neither this Agreement nor any of the rights and
obligations thereto shall be assignable or otherwise transferable by a Party to
anyone other than an Affiliate without the prior written consent of the other
Party which consent will not be unreasonably withheld. Subject to the foregoing
condition, this Agreement shall be binding upon and inure to the benefit of the
Parties hereto, their successors and assigns.

         6.6 SEVERABILITY. If any provision of this Agreement is held to be
invalid by a court of competent jurisdiction, then the remaining provisions
shall nevertheless remain in full force and effect.

         6.7 COUNTERPARTS. This Agreement may be executed in two counterparts,
each of which shall be deemed an original.

         6.8 HEADING. All captions, titles and subheadings are for convenience
only and shall not be considered in construing or interpreting the provisions of
this Agreement.

** CONFIDENTIAL TREATMENT REQUESTED

                                       9
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                                      Confidential Treatment Requested indicates
                                    portions of this document have been redacted
                             and have been separately filed with the Commission.

         6.9 RELATIONSHIP OF THE PARTIES. The Parties shall at all times remain
independent and one Party shall not be considered the agent of the other Party.
Nothing in this Agreement shall be construed as creating a partnership, joint
venture or other similar relationship between the Parties or their respective
parents or subsidiaries.

         6.10 NO WARRANTIES. BTR does not warrant or guarantee that any results
will be achieved during the Development Program of this Agreement and makes no
representation or warranty regarding the technology developed pursuant to this
Agreement including, without limitation, implied warranties of merchantability
or fitness for a particular purpose. Neither BTR, nor its owners, affiliates,
representatives nor employees shall be liable to the Company, its Affiliates,
contractors or sublicensees because of any failure in the use of technical
information developed or disclosed by BTR hereunder or in the operations of the
Company, its Affiliates, contractors or sublicensees. Consistent with the
foregoing, the Company shall hold BTR harmless from any loss, claim, damage,
illness or injury to persons or property whatever the cause may be arising out
of or pertaining to commercialization, use or disclosure of the technical
information.

         6.11 ARBITRATION. All disputes arising under or related to this
Agreement shall be resolved by final and binding arbitration by three (3)
arbitrators selected by the parties under the rules of the American Arbitration
Association. The location of the arbitration shall be New York, New York.

         6.12 ENTIRETIES. This Agreement together with the Existing Agreements,
as amended, represents the entire agreement between the Parties with respect to
the subject matter hereof. No amendments or modifications to this Agreement
shall be effective unless reduced to writing and signed by both parties.

** CONFIDENTIAL TREATMENT REQUESTED

                                       10
<PAGE>
                                      Confidential Treatment Requested indicates
                                    portions of this document have been redacted
                             and have been separately filed with the Commission.

                  IN WITNESS WHEREOF, the Parties hereto have caused this
Agreement to be executed by their duly authorized representatives as of the date
and year indicated below.

DYADIC INTERNATIONAL, INC.               ARKION LIFE SCIENCES LLC
                                         BIO-TECHNICAL RESOURCES
                                         DIVISION

By: /s/ M. Emalfarb                      By: /s/ T. Jerrell
    ---------------------------          --------------------------------------
Title: M. Emalfarb, President            Title: T. Jerrell, President
Date: 8-2-2004                           Date: July 30, 2004

                                       11

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