FORTIS ENTERPRISES
AGREEMENT WITH SOURCE CAPITAL GROUP, INC.
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<TYPE>EX-10
<SEQUENCE>3
<FILENAME>sourcecapitalgroup.htm
<DESCRIPTION>AGREEMENT WITH SOURCE CAPITAL GROUP, INC.
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<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0"><b><font size="5">Source
Capital Group, Inc.</font></b></p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
<b>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0"></b>January
21, 2004</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">Mr.
Stephen Carnes</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">President
&amp; CEO</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">Fortis
Enterprises</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">Lake
Mary, FL</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">Dear
Mr. Carnes:</p>
<p ALIGN="JUSTIFY" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
<p ALIGN="JUSTIFY" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">The
purpose of this letter is to confirm the understanding and agreement (the
&quot;Agreement&quot;) between Source Capital Group, Inc, (&quot;SCG&quot;) and
Fortis Enterprises, a Nevada corporation (the &quot;Company&quot;), regarding
the retention of SCG by the Company as its exclusive (for three weeks) financial
advisor for the purposes set forth herein.</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">Under
this Agreement, SCG will provide financial advisory services to the Company as
follows:</p>
<ol type="A">
  <li>
    <p ALIGN="justify" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin-left: 0; margin-right: 0; margin-top: 0; margin-bottom: 6"><u>Raising
    of Capital.</u> SCG shall use its best efforts to provide an equity
    financing for the Company.</li>
  <li>
    <p ALIGN="justify" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin-left: 0; margin-right: 0; margin-top: 0; margin-bottom: 6"><u>Fees,
    Commissions &amp; Expenses.</u> The Company agrees to pay the following fees
    to SCG for its services.</li>
</ol>
<blockquote>
  <ol>
    <li>
      <p ALIGN="justify" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin-left: 0; margin-right: 0; margin-top: 0; margin-bottom: 6">SCG
      will be compensated 8% cash and 8% (&quot;warrant&quot;) coverage on any
      funds raised during this engagement on investors. The exercise price of
      the warrants shall be equal to the price of the stock at the time of the
      sale to an equity investor introduced to the Company by SCG and will be
      subject to adjustment in accordance with the terms of any adjustment
      provided for in the formal definitive Financing document. Said warrants
      shall be exercisable for five (5) years from the date of issuance. The
      terms of said warrants shall include such piggyback registration rights,
      anti-dilution rights, and &quot;cashless.</li>
    <li>
      <p ALIGN="justify" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin-left: 0; margin-right: 0; margin-top: 0; margin-bottom: 6">SCG
      will not receive a retainer upon signing of this agreement. All
      compensation payable to SCG, other than pre-approved expenses as per
      Paragraph 3 below, performance based as defined in Paragraph 1 above.</li>
  </ol>
</blockquote>
<p ALIGN="JUSTIFY" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
<p ALIGN="JUSTIFY" style="word-spacing: 0; text-indent: 0; line-height: 100%; border-top-style: solid; margin: 0">&nbsp;</p>
<blockquote>
  <ol start="3">
    <li>
      <p ALIGN="justify" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin-left: 0; margin-right: 0; margin-top: 0; margin-bottom: 6"><u>Expenses.</u>
      In addition to any fees that may be payable to SCG under this Agreement,
      the Company, upon written pre-approval of all expenses over $500, agrees
      to reimburse SCG for its reasonable out-of-pocket expenses incurred in
      connection with the services rendered by SCG hereunder (including, without
      limitation, travel and lodging, data and word processing, graphics and
      communication charges, research costs, and courier services and fees). SCG
      will, on a monthly basis, provide the Company with reasonable report
      regarding the expenses incurred. Compensation for any additional
      professional services (e.g. legal or consulting) contracted for by SCG, to
      be performed for the benefit of the Company by outside parties, is the
      responsibility of the Company and will be paid directly by the Company to
      such party. SCG will not contract for such services without the prior
      written approval of the Company with regard to both the nature of the
      service and a reasonable estimate of the cost of such service.</li>
    <li>
      <p ALIGN="justify" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin-left: 0; margin-right: 0; margin-top: 0; margin-bottom: 6">All
      cash payments under this Agreement shall be made in U.S. dollars and
      without withholding or deduction of any tax, assessment or other
      governmental charges unless required by law. Fees and retainers should be
      made payable and wired to:</li>
  </ol>
  <blockquote>
    <p ALIGN="JUSTIFY" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">Source
    Capital Group Inc.</p>
    <p ALIGN="JUSTIFY" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">Fleet
    Bank</p>
    <p ALIGN="JUSTIFY" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">ABA#
    011900571</p>
    <p ALIGN="JUSTIFY" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">Acct.#
    9361882644</p>
  </blockquote>
</blockquote>
<ol type="A" start="3">
  <li>
    <p ALIGN="justify" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin-left: 0; margin-right: 0; margin-top: 0; margin-bottom: 6"><u>Information.</u>
    The Company will furnish or cause to be furnished to SCG, such information,
    as SCG believes appropriate to its assignment (all such information so
    furnished being the &quot;Information&quot;). The Company recognizes and
    confirms that SCG (a)&nbsp;will use and rely primarily on the Information
    and on information available from generally recognized public sources in
    performing the services contemplated by this Agreement without having
    independently verified the same, (b)&nbsp;does not assume responsibility for
    the accuracy or completeness of the Information and such other information,
    (c)&nbsp;is entitled to rely upon the Information without independent
    verification and (d)&nbsp;will not make an appraisal of any assets in
    connection with its assignment</li>
  <li>
    <p ALIGN="justify" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin-left: 0; margin-right: 0; margin-top: 0; margin-bottom: 6"><u>Confidentiality.</u>
    Except as contemplated by the terms hereof or as required by applicable law
    or legal process, SCG shall keep confidential all non-public information
    provided to it by or at the request of the Company, and shall not disclose
    such information to any third party or to any of its employees or advisors
    except to those persons who have a need to know such information in
    connection with SCG's performance of its responsibilities hereunder. The
    Company understands that any documents, presentations or analyses prepared
    by SCG are proprietary and SCG is under no obligation to provide (by e-mail,
    floppy disk or otherwise) either the Company or its assigns with the
    computer files of such work product. Except as required by applicable law,
    any advice to be provided by SCG under this Agreement shall not be disclosed
    publicly or made available to third parties without the prior written
    consent of SCG, unless required by Federal Securities Laws. In addition, SCG
    may not be otherwise publicly referred to without its prior written consent.
    All services, advice and information and reports provided by SCG to the
    Company in connection with this assignment shall be for the sole benefit of
    the Company and shall not be relied upon by any other person.</li>
</ol>
<p ALIGN="JUSTIFY" style="word-spacing: 0; text-indent: 0; line-height: 100%; border-bottom-style: solid; margin: 0">&nbsp;</p>
<p ALIGN="JUSTIFY" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
<ol type="A" start="5">
  <li>
    <p ALIGN="justify" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin-left: 0; margin-right: 0; margin-top: 0; margin-bottom: 6"><u>Indemnity.</u>
    The Company acknowledges and agrees that SCG has been retained to act solely
    as financial advisor to the Company. In such capacity, SCG shall act as an
    independent contractor, and any duties of SCG arising out of its engagement
    pursuant to this Agreement shall be owed solely to the Company.</li>
  <li>
    <p ALIGN="justify" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin-left: 0; margin-right: 0; margin-top: 0; margin-bottom: 6"><u>Arbitration.</u>
    Any and all disputes, demands, claims or controversies hereto arising out of
    or relating to this agreement or the breach thereof, shall be settled by
    binding arbitration in accordance with the rules of the American Arbitration
    Association (&quot;AAA&quot;). The arbitration shall be conducted in New
    York City under the rules of the AAA. Any judgment upon the award rendered
    by the arbitrator may be entered into any court or administrative tribunal
    having jurisdiction thereof. Costs associated with the arbitration,
    including reasonable attorney's fees, shall be borne by whichever parties
    the arbitrators shall deem just and fair.&quot;</li>
  <li>
    <p ALIGN="justify" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin-left: 0; margin-right: 0; margin-top: 0; margin-bottom: 6"><u>Term
    &amp; Termination.</u> The term of SCG's engagement hereunder shall extend
    from the date hereof through April (the &quot;Expiration Date&quot;) and
    will be automatically renewed on a monthly basis until canceled in writing
    by either party. The exclusive nature of SCG's engagement shall expire on
    February 15, 2004, unless extended by the Company by written agreement or an
    amendment to this Agreement. SCG's engagement hereunder may be terminated
    upon 10 days written notice without cause by either the Company or SCG at
    any time before the Expiration Date. Notwithstanding the foregoing, the
    provisions relating to the payment of fees and expenses accrued through the
    date of termination, the status of SCG as an independent contractor and the
    limitation on to whom SCG shall owe any duties will survive any such
    termination, and any such termination shall not affect the Company's
    obligations under the indemnification agreement.</li>
</ol>
<blockquote>
  <p ALIGN="JUSTIFY" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">SCG
  will be entitled to the fees set forth above in the event that at any time
  prior to the earlier of the termination of this letter and the expiration of
  SCG's engagement hereunder a Financing is consummated and the investor is on a
  list, to be attached hereto as Exhibit B, of potential investors provided to
  the Company by SCG at the time of termination or expiration and SCG had made
  efforts that led to an investment on behalf of the Company with respect to
  such investor(s) prior to termination or expiration, as appropriate. Further,
  in the event that a Financing or M&amp;A transaction is completed with an
  investor, on the list of bonafide introductees attached as Exhibit B, with
  respect to which SCG had made efforts that led directly to an investment or
  other substantive effort before such termination or expiration, whichever is
  earlier, SCG will be entitled to fees on those investors (but only for the
  amount purchased by such investors) for a period of 18 months after the
  termination or expiration date, as applicable, calculated in accordance with
  Section B of this Agreement. On the termination or expiration date, as
  applicable, SCG will provide the Company an updated <u>Exhibit B</u> for
  purposes of this paragraph.</p>
</blockquote>
<p ALIGN="JUSTIFY" style="word-spacing: 0; text-indent: 0; line-height: 100%; border-bottom-style: solid; margin: 0">&nbsp;</p>
<p ALIGN="JUSTIFY" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
<ol type="A" start="8">
  <li>
    <p ALIGN="justify" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin-left: 0; margin-right: 0; margin-top: 0; margin-bottom: 6"><u>Advertisements.</u>
    The Company acknowledges that SCG may, at its option and expense, place an
    announcement in such newspapers and periodicals as it may choose, stating
    that SCG has acted as the financial advisor to the Company. SCG agrees that
    the Company will have the right to pre-approve the form, content and timing
    of release of such announcement.</li>
  <li>
    <p ALIGN="justify" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin-left: 0; margin-right: 0; margin-top: 0; margin-bottom: 6"><u>Market
    Trading</u>. During the Term of this Agreement, SCG, nor its affiliates,
    shall trade in the Company's securities. SCG expressly covenants that it
    shall not short or otherwise attempt to cause a decline in the Company's
    trading price as quoted on the Over-the-Counter Bulletin Board. The effect
    of such short or negative impact in the Company's trading price shall
    result in the immediate termination of this agreement and void any payment
    of compensation set forth herein.</li>
</ol>
<p ALIGN="JUSTIFY" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">This
Agreement (including the attached indemnification) embodies the entire agreement
and understanding between the parties hereto and supersedes all prior agreements
and understandings relating to the subject matter hereof. If any provision of
this Agreement is determined to be invalid or unenforceable in any respect, such
determination will not affect such provision in any other respect, which will
remain in full force and effect. No waiver, amendment or other modification of
this Agreement shall be effective unless in writing and signed by each party to
be bound thereby. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York applicable to contracts
executed in and to be performed in that state.</p>
<p ALIGN="JUSTIFY" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
<p ALIGN="JUSTIFY" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">This
Agreement sets forth the entire agreement with respect to the engagement of SCG
by the Company, including the fees and warrants payable as a result of such
engagement.</p>
<p ALIGN="JUSTIFY" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
<p ALIGN="JUSTIFY" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
<p ALIGN="JUSTIFY" style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">Please
confirm that the foregoing correctly sets forth our agreement by signing and
returning to SCG the duplicate copy of this Agreement.</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">By: <u>/S/Todd
Coffin&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</u></p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">W. Todd
Coffin, Managing Director</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">Source
Capital Group, Inc.</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">By: <u>/S/Stephen
W.
Carnes&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</u></p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">Stephen
Carnes - President &amp; CEO</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">Fortis
Enterprises, Inc.</p>
<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
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<p style="word-spacing: 0; text-indent: 0; line-height: 100%; margin: 0">&nbsp;</p>
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