EXHIBIT 4.18

ASSIGNMENT AND
ASSUMPTION AGREEMENT

ASSIGNMENT AND ASSUMPTION  AGREEMENT January 8, 2004,
between Dr. Notes, Inc.  ("Assignor") and Jacobson Resonance Enterprises, Inc.
(Assignee).

WHEREAS:

| | A. | Assignor
has sold its 8% Series A Senior Subordinated Convertible Redeemable           Debentures
to certain purchasers (Purchasers) having an aggregate           original
principal face value of up to One Million United States dollars           $1,000,000
(singly, a Debenture, and collectively, the           Debentures)
pursuant to a certain Securities Subscription           Agreement, dated as of December
8, 2003 (Subscription Agreement);
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | B. | Assignee
has merged with Assignor pursuant to a Plan and Articles of Merger           dated
January 6, 2004(Merger); and
| | -- | --------------------------------------------------------------------------------------------------------------------------

| | C. | Assignor
wishes to assign the Subscription Agreement and Debentures to Assignee           and
Assignee is willing to assume the obligations of the Subscription Agreement           and
Debentures in exchange for valuable consideration set forth in the           Agreement.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

NOW
THEREFORE, it is agreed that Assignor shall irrevocably and unconditionally assign and
Assignee shall irrevocably and unconditionally assume all of the conditions and
obligations of the Subscription Agreement and Debentures, each dated as of December 8,
2003, for the benefit of the Purchasers, as defined in the Subscription Agreement, and the
Holder, as defined in the Debentures, and Assignee hereby certifies that the
representations and warranties contained in the Subscription Agreement are true and
correct as of the date hereof, as if Assignee has entered into and undertaken all of such
obligations at the time these instruments were given, and shall render full performance
under such instruments in the place and stead of Assignor.

SIGNATURES APPEAR ON THE FOLLOWING PAGE

|                                                                                                                                               |                                                                                                                
|---------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------
|Dr. Notes, Inc.             
(Assignor)                  
                            By:   /s/ Joseph Steffey   
Joseph W. Steffey, President | Jacobson Resonance Enterprises, Inc.
  (Assignee)By:  /s/ Harvey Grossman           
Harvey Grossman, President

EXHIBIT 10.11

STOCK EXCHANGE AGREEMENT

This
Stock Exchange Agreement (the Agreement), entered into as of this 5th day of
January 2004, by and among Jacobson Resonance Enterprises, Inc., a corporation organized
pursuant to the laws of the State of Nevada (JRSE); Dr. Notes, Inc, a
corporation organized pursuant to the laws of the State of Nevada (NOTES); and
Joseph W. Steffey, the owner of all of the issued and outstanding shares of NOTES (the
Notes Stockholder).

W      I     
T     N     E     S   
  S     E     T     H :

WHEREAS,
the NOTES Stockholder is the owner of shares of Common Stock, Par Value $0.001 per share
of NOTES (the NOTES Shares or the NOTES Common Stock);

WHEREAS,
the NOTES Stockholder wishes to convey the NOTES Shares held by him to JRSE in exchange
for newly-issued shares of Common Stock, Par Value $0.001 per share, of JRSE (the
JRSE Shares or the JRSE Common Stock ) to be delivered to him by
JRSE; and

WHEREAS,
JRSE wishes to acquire shares of NOTES Common Stock by issuing JRSE Common Stock to the
NOTES Stockholder in exchange for the NOTES Shares to be conveyed to JRSE by the NOTES
Stockholder.

N     O     W
          T     H     E    
 R     E     F     O     R
     E

In
consideration of the representations, warranties, covenants, and agreements herein
contained, which are given by each Party to the other Parties in order to induce them to
enter into this Agreement, and for other good and valuable consideration, the receipt and
adequacy of which is hereby acknowledged, the Parties hereto, each intending to be legally
bound hereby, agree as follows:

ARTICLE I

DEFINITIONS

Section 1.1 Definitions.

The
following terms shall have the following meanings for the purposes of the Agreement:

Affiliate
means, with respect to any specified Person,

| | (a) | any
other Person which, directly or indirectly, owns or controls, is under           common
ownership or control with, or is owned or controlled by, such specified           Person;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | any
other Person which is a director, officer or partner or is, directly or
          indirectly, the beneficial owner of 10 percent or more of any class of equity
          securities of the specified Person or a Person described in clause (a) of this
          paragraph;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | another
Person of which the specified Person is a director, officer or partner           or is,
directly or indirectly, the beneficial owner of 10 percent or more of any           class
of equity securities; or
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | any
relative or spouse of the specified Person or any of the foregoing Persons.
| | --- | -------------------------------------------------------------------------------

Business
Day means any day of the year other than

| | (a) | any
Saturday or Sunday, or
| | --- | --------------------------

| | (b) | any
day which is a Legal Holiday as declared to be such by federal law.
| | --- | -----------------------------------------------------------------------

Confidential
Information means all confidential information concerning a Party or its Affiliates
that

| | (a) | is
not and has not become ascertainable or obtainable from public or published
          information,
| | --- | -----------------------------------------------------------------------------------------------------

| | (b) | is
not received from a third party or is received from a third party pursuant to
          the authorization of the Party in question, or
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------

| | (c) | was
not in Partys possession prior to disclosure thereof to another Party           to
this Agreement in connection with the transactions contemplated herein.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

Closing
means the consummation(s) of the transactions contemplated herein.

Closing
Date means the date on which the Closing occurs.

Code
means the United States Internal Revenue Code of 1986, as amended.

Contract
means any contract, lease, commitment, understanding, sales order, purchase order,
agreement, indenture, mortgage, note, bond, right, warrant, instrument, plan, permit or
license, whether written or oral.

Existing
Borrowing means all borrowing from lending institutions, vendors or agencies of
federal, state or local governments or their political subdivisions.

Financial
Statements of NOTES means, and includes, all of the following:

(a)       
          the unaudited financial statements of NOTES as at January 5, 2004 (including all
          schedules and notes thereto);

(b)       
          the Latest Financial Statements of NOTES; and, in addition

(b)       
          any other financial statements issued by NOTES.

Latest
Financial Statement of NOTESmeans the unaudited financial statements of NOTES as at
January 5, 2004 (including all schedules and notes thereto).

Financial
Statements of JRSE means, and includes, all of the following:

(a)       
          the audited financial statements of JRSE as set forth in the latest Form 10-K
          filed by JRSE with the SEC;

(b)       
          the Latest Financial Statement of JRSE; and, in addition

(c)       
          any other financial statements issued by JRSE.

Latest
Financial Statement of JRSE means the unaudited financial statements of JRSE as set
forth in the latest Form 10-Q filed by JRSE with the SEC.

Latest
NOTES Financial Statement Date means the date of a Latest Financial Statement of
NOTES.

Latest
JRSE Financial Statement Date means the date of a Latest Financial Statement of
JRSE.

GAAP
means United States generally accepted accounting principles at the time in effect.

Governmental
Authority means the government of the United States or any foreign country or any
state or political subdivision thereof and any entity, body or authority exercising
executive, legislative, judicial, regulatory or administrative functions of or pertaining
to government.

Hazardous
Material means any pollutant or contaminant or hazardous, dangerous or toxic
chemical, material or substance within the meaning of any applicable Law (including
consent decrees and administrative orders) relating to or imposing liability or standards
of conduct concerning any hazardous, toxic or dangerous waste, substance or material, all
as now or at any time hereafter in effect.

Latest
Financial Statement Date means the date of a Latest Financial Statement.

Law
or Laws means any law, statute, regulation, ordinance, rule, order, decree,
judgment, consent decree, settlement agreement or governmental requirement enacted,
promulgated, entered into, agreed or imposed by any Governmental Authority.

Lien
means any mortgage, lien, charge, restriction, pledge, security interest, option, lease or
sublease, claim, right of any third party, easement, encroachment or encumbrance.

Loss
or Losses means any and all liabilities, losses, costs, claims, damages
(including consequential damages), penalties, expenses (including attorneys fees and
the expenses and costs of investigation and litigation), and including liabilities for
taxes that have become due and payable or which have accrued with respect to a Party that
have not been paid prior to the Closing Date or which, with respect to a corporate Party,
have not been reserved on said corporate Partys Financial Statements. (Any Taxes
attributable to the operations of a corporate Party payable as a result of an audit of any
Tax Return shall be deemed to have accrued in the period to which such Taxes are
attributable.)

In
the event any of the foregoing are indemnifiable hereunder, the terms Loss and
Losses shall also include any and all attorneys fees and expenses and
costs of investigation and litigation incurred by the Indemnified Person in enforcing such
indemnity.

Material
Adverse Effect means with respect to any specified Person, a fact, event or
circumstance which, taken as a whole, has had or could reasonably be expected to have a
material adverse effect on the assets (including intangible assets), business,
liabilities, operations or conditions, financial or otherwise, of such Person; provided,
however, that, with respect to NOTES or to JRSE, none of the following, either
individually or in the aggregate, shall be deemed to constitute a Material Adverse Effect:

| | (a) | any
adverse event, change or effect that is primarily caused by conditions
          affecting the economy of the United States or Canada generally; or
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | any
adverse event, change or effect that is primarily caused by conditions
          generally affecting the specific industry in which such Person is engaged.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

Person
means any individual, corporation, proprietorship, firm, partnership, limited partnership,
trust, association or other entity, including a government or government department,
agency or instrumentality.

JRSEs
Transfer Agent shall mean

|                                                                                                                                                                      |                                        
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------
|Florida Atlantic Stock Transfer Inc.
7130 Nob Hill Road
Tamarac, Florida 33321
Attention: Rene Garcia
Voice Telephone Number              
Facsimile Telephone Number | (954) 726 -   4954
  (964) 726 -   6305

Security
or Securities means any note, stock, treasury stock, bond, debenture, evidence
of indebtedness, certificate of interest or participation in any profit-sharing agreement,
collateral- trust certificate, preorganization certificate or subscription, transferable
share, investment contract, voting-trust certificate, certificate of deposit for a
security, fractional undivided interest in oil, gas, or other mineral rights, any put,
call, straddle, option, or privilege on any security, certificate of deposit, or group or
index of securities (including any interest therein or based on the value thereof), or any
put, call, straddle, option, or privilege entered into on a national securities exchange
relating to foreign currency, or, in general, any interest or instrument commonly known as
a security, or any certificate of interest or participation in, temporary or
interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or
purchase, any of the foregoing.

SEC
or the Commission means the United States Securities and Exchange Commission.

Subsidiaries
means any Person 50.1 % or more of the voting power of which is controlled by another
Person.

Taxes
means all income tax liability, deferred income tax liability and other taxes, charges,
fees, duties, levies or other assessments, including income, gross receipts, net proceeds,
ad valorem, turnover, real and personal property (tangible and intangible), sales, use,
franchise, excise, value added, stamp, leasing, lease, user, transfer, fuel, excess
profits, occupational, interest equalization, windfall profits, severance, employees
income withholding, other withholding, unemployment and Social Security taxes, which are
imposed by any Governmental Authority, whether or not assessed or disputed, that are
payable or deferrable, by a Person through January 5, 2004, or as to which a Person may
have any liability for taxable periods ending on or before such date, together with all
deficiencies, and any interest, penalties or additions to tax attributable thereto.

Tax
Return means any report, return or other information required to be supplied to a
Governmental Authority in connection with any Taxes.

ARTICLE II CLOSING; EXCHANGE OF
STOCK

Section 2.1 The Closing.

The
Closing shall take place in such manner and at such time and place as the parties shall
agree to.

Section 2.2 Exchange of
Stock.

At
the Closing, JRSE shall deliver to the NOTES Shareholder that number of newly-issued
shares of JRSE Common Stock having an aggregate market value of $50,000.00 at the Close of
Business on the day before the Share Exchange Agreement is executed, and, in exchange, the
NOTES Shareholder shall simultaneously deliver to JRSE a like number of shares of NOTES
Common Stock.

To
effect such issue of the JRSE Shares, JRSE shall prepare and issue an irrevocable letter
of instructions dated as of the Closing Date, addressed to JRSEs Transfer Agent,
directing and authorizing JRSEs Transfer Agent to issue certificates representing
JRSE Common Stock to the NOTES Shareholder.

Section 2.3 Closing
Information.

The
parties hereto, at or prior to the Closing Date, shall deliver to each other the
schedules, documents, financial statements and other information identified or described
in this Agreement (the Closing Information). All actions taken and all Closing
Information delivered at the Closing or prior thereto shall be deemed taken or delivered
simultaneously at the Closing and no action shall be deemed taken, or any Closing
Information deemed delivered, until all actions have been taken and all Closing
Information has been delivered.

ARTICLE III JOINT & COLLECTIVE
REPRESENTATIONS AND WARRANTIES OF THE PARTIES

In
order to induce the other Parties to enter into this Agreement, each Party makes the
following representations and warranties to the other Parties.

Section 3.1.   Authority.

| |  | 
| |  | 

| | (a) | Each
Party
| | --- | ----------

| | (i) | has
full power and authority to enter into, deliver and perform this Agreement;           and
| | --- | ---------------------------------------------------------------------------------------------

| | (ii) | neither
the execution, delivery, consummation or performance of this Agreement
| | ---- | ------------------------------------------------------------------------------

| | (A) | requires
the approval or consent of, or notice to, any third party;
| | --- | -------------------------------------------------------------------

| | (B) | violates
any law, regulation or agreement to which it is subject; or
| | --- | --------------------------------------------------------------------

| | (B) | violates,
conflicts with or would result in the breach or termination of, or           otherwise
give any other contracting party the right to terminate, or constitute           a
default (by way of substitution, novation or otherwise) under the terms of,           any
mortgage, lease, bond, indenture, agreement, franchise or other instrument           or
obligation to which it is a party or by which either of it may be bound.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | If
a Party is a corporation,
| | --- | ----------------------------

| | (i) | it
is duly organized, validly existing and in good standing under the laws of           its
state of incorporation;
| | --- | -------------------------------------------------------------------------------------------------------------------

| | (ii) | it
is duly qualified or otherwise authorized as a foreign corporation to           transact
business and is in good standing under the laws of each other           jurisdiction in
which such qualification is required; and
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | it
has full power and authority to carry on its business as now conducted, and           it
is entitled to own, lease or operate all of its properties and assets           wherever
located.
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Section 3.2       
Truth of Statements; Completeness of Documents.

| | (a) | All
documents, Schedules, Exhibits and other materials delivered or to be           delivered
by or on behalf of each Party to the others in connection with this           Agreement
and the transactions contemplated hereby are to the best of its           knowledge true
and complete;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | The
information furnished by or on behalf of each Party to the others in           connection
with this Agreement and the transactions contemplated hereby does           not, to the
best of its knowledge, contain any untrue statement of a material           fact and does
not omit to state any material fact required to be stated therein           or necessary
to make the statements therein not false or misleading.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | There
is no fact known to any of the Parties which has not been disclosed to the
          other Parties in writing which has, or insofar as any such Party can foresee,
          which will have, a Material Adverse Effect on any of the other Parties.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

ARTICLE IV REPRESENTATIONS AND
WARRANTIES OF THE NOTES STOCKHOLDER

In
order to induce the other Parties to enter into this Agreement, the NOTES Stockholder
makes the following representations and warranties to the other Parties.

Section 4.1      
    Good Title to NOTES Shares; Delivery Thereof.

| | (a) | The
NOTES Stockholder had, has, and will have, full and valid title and control           of
the NOTES Shares.
| | --- | --------------------------------------------------------------------------------------------------------------

| | (b) | There
was, is, and will be, no existing impediment or encumbrance to the sale           and
transfer of such NOTES Shares to JRSE, and on delivery to JRSE of the NOTES
          Shares,
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | all
of the NOTES Shares have been, are, and will be free and clear of all taxes,
          liens, encumbrances, charges or assessments of any kind and shall not be
subject           to preemptive rights, tag-along rights, cumulative voting, or similar
rights of           any shareholder of NOTES,
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | all
of the NOTES Shares have been, are, and will be duly authorized, validly
               issued and are fully paid and nonassessable; and
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | There
is no right, subscription, warrant, call, unsatisfied preemptive right,           option
or other agreement of any kind to purchase or otherwise receive from the           NOTES
Stockholder any other Securities of NOTES, and no NOTES Stockholder has           any
such right, option or other agreement to acquire any other Securities of           NOTES
from NOTES or from any other person; and
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | The
NOTES Shareholder shall deliver to JRSE true and complete copies of
| | --- | -----------------------------------------------------------------------

| | (i) | the
Articles of Incorporation of NOTES and the By-Laws of NOTES, certified by           the
Secretary of NOTES as being in effect as at of the Closing Date;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | a
Certificate of Good Standing from the Secretary of State of Nevada and by the
          Secretary of State of any other State in which NOTES conducts business, which
          Certificates shall be dated not earlier than the date of this Agreement; and
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | stock
records of NOTES.
| | ----- | -----------------------

Section 4.2 Sufficient Familiarity
with the Affairs of JRSE; Ability to Bear the Risks of an Investment in JRSE, etc.

With
respect to its purchase of the JRSE Shares, the NOTES Stockholder acknowledges,
represents, warrants and agrees as follows:

| | (a) | The
NOTES Stockholder has received and read carefully JRSEs Executive
          Summary, (the Executive Summary). The NOTES Stockholder understands
          that all documents, records and books pertaining to its investment have been
          made available for inspection by its attorney and/or its accountant and/or its
          Purchaser Representative(s)", if any, as such term is defined in
          Regulation D promulgated under the Securities Act of 1933, as amended (the
          Securities Act), and the NOTES Stockholder. The NOTES Stockholder
          and/or his advisor(s) have had reasonable opportunity to ask questions of and
          receive answers from JRSE, or a person or persons acting on behalf of JRSE,
          concerning the JRSE Shares, and all such questions have been answered to the
          full satisfaction of the NOTES Stockholder. No oral representations or oral
          information have been made or have been furnished to the NOTES Stockholder or
          his advisor(s) in connection with the offering of the JRSE Shares.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | The
NOTES Stockholder is willing and able to bear the economic risk of an
          investment in the JRSE Shares in an amount equal to the total subscription
          amount. In making this statement, consideration has been given to whether the
          NOTES Stockholder could afford to hold the JRSE Shares for an indefinite period
          and whether, at this time, the NOTES Stockholder could afford a complete loss.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | The
NOTES Stockholder has funds adequate to meet his personal needs and
          contingencies. The NOTES Stockholders commitment to investments which are
          not readily marketable is not disproportionate to his net worth and his
          investment in the JRSE Shares will not cause his overall commitment to become
          excessive.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | The
NOTES Stockholder recognizes that the JRSE has only recently been formed and
          has limited financial and operating history.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------

| | (e) | The
NOTES Stockholder and/or his advisors and/or his Purchasers           Representative(s)
(if applicable) have such knowledge and experience in           financial, tax and
business matters to enable it and/or them to utilize the           information made
available to it and/or them in connection with the purchase of           the Shares, to
evaluate the merits and risks of the prospective investment and           to make an
informed investment decision with respect thereto.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f) | If
applicable, the NOTES Stockholder will acknowledged to the JRSE in writing           the
name and address of any Purchaser Representative acting on behalf of the           NOTES
Stockholder in connection with evaluating the merits and risks of this           proposed
investment. Each Purchaser Representative, if any, will confirm in           writing to
the NOTES Stockholder the specific details of any and all past,           present or
future relationships, actual or contemplated, between himself or his           affiliates
and the JRSE or any of its affiliates and any compensation received           or to be
received as a result of any such relationship.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g) | The
JRSE Shares are being purchased solely for the NOTES Stockholders own
          account for investment purposes only and not for the account of any other
person           and not for distribution, assignment or resale to others and no other
person has           direct or indirect beneficial interest in such Shares.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

ARTICLE V

REPRESENTATIONS AND
WARRANTIES OF NOTES

In
order to induce the other Parties to enter into this Agreement, NOTES makes the following
representations and warranties to the other Parties.

Section
5.1           Capitalization.

| | (a) | The
authorized capital of NOTES consists of:
| | --- | --------------------------------------------

| | (i) | the
NOTES Shares;
| | --- | -----------------

| | (ii) | certain
Senior Subordinated Convertible Redeemable Debentures (the NOTES
          Debentures), convertible, from time to time, into authorized but unissued
          shares of NOTES Common Stock, of which no underlying shares of NOTES Common
          Stock have been issued pursaunt thereto; and of
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | no
other Securities.
| | ----- | --------------------

| | (b) | All
of the outstanding Securities of NOTES have been duly authorized, validly
          issued, and are fully paid and nonassessable.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------

| | (c) | Other
than the Subscription Agreement for the NOTES Convertible Debentures,           there are
no rights, subscriptions, warrants, calls, unsatisfied preemptive           rights,
options or other agreements of any kind to purchase or otherwise to           receive
from NOTES any of the outstanding or authorized but unissued or treasury           shares
of the Securities of NOTES, and no Securities or obligations of any kind
          convertible into such Securities exist in favor of any person, firm or
          corporation.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | NOTES
does not directly or indirectly own nor has it made any investment in any           of
the capital stock of, or any other proprietary interest in, any other person
          including but not limited to joint ventures and partnerships.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Section 5.2      
     Basic
Corporate Documents.

The
copies of the Articles of Incorporation of NOTES and of the By-Laws of NOTES, and the
stock records of NOTES which will be delivered by the NOTES Stockholder at or prior to the
Closing Date shall be true and complete.

Section 5.3      
     Financial Statements; No Undisclosed Liabilities.

| | (a) | The
Financial Statements of NOTES, which are set forth in Exhibit 5.3(a)-NOTES,
          present fairly the financial position, assets, liabilities and retained
earnings           of NOTES as at the dates thereof and the revenues, expenses, results
of           operations, changes in financial position and cash flows of NOTES for the
          periods covered thereby.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | The
Financial Statements are in accordance with the books and records of NOTES,           do
not reflect any transactions which are not bona fide transactions, and
          do not contain any untrue statement of a material fact or omit to state any
          material fact necessary to make the statements contained therein, in light of
          the circumstances in which they were made, not misleading.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | Except
as set forth in Schedule 5.3(c)-NOTES, or in the Latest Financial           Statements of
NOTES, NOTES has no liabilities, debts, claims or obligations,           whether accrued,
absolute, contingent or otherwise, whether due or to become           due, other than
trade payables and accrued expenses incurred in the ordinary           course of business
since the date of the Latest Financial Statements.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | There
is no basis for the assertion against NOTES, as at the date of this           Agreement,
or as at the Closing Date, of any liability of any nature or in any           amount not
fully reflected or reserved against in the Financial Statements of           NOTES, and
there is no reason for NOTES or the NOTES Stockholder to believe           otherwise,
irrespective of whether or not he believse the claim is valid or not.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Section 5.4        
  Taxes.

| | (a) | NOTES
has filed all federal, state and local tax returns which are required to           be
filed or has requested extensions thereof and has paid all Taxes shown on           such
returns and all assessments received by it to the extent that the same have
          become due except as shown on the Financial Statements of NOTES.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | NOTES
has not agreed nor is it required to make any adjustment under the           provisions
of the Internal Revenue Code or any similar state or local law by           reason of a
change in accounting method or otherwise.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | The
total amounts set up as liabilities for current taxes in the Financial
          Statements of NOTES are sufficient to cover the payment of all claims, whether
          known or unknown, with respect to all Taxes.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | Except
as set forth in Schedule 5.4-NOTES, there are no claims pending against           NOTES
with respect to Taxes.
| | --- | ---------------------------------------------------------------------------------------------------------------------

| | (e) | Neither
the Federal income tax returns of NOTES nor its state and local returns
          (measured, in whole or in part, by income) have been or are being audited.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------

Section 5.5      
     Title to
Properties.

Except
as set forth in Schedule 5.5-NOTES, NOTES owns outright and has good and marketable title
to all of its assets, including, without limitation, all of the assets, receivables and
properties reflected on the Financial Statements of NOTES, in each case free and clear of
any lien, security interest or other encumbrance.

Section 5.6      
     Personal
Property.

| | (a) | Except
as set forth in Exhibit 5.6-NOTES, NOTES has no tangible personal           property used
by NOTES in its business having an original acquisition cost of           $1,000.00 or
more.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Section 5.7       
    Real Property
Used in Business.

|(a) | Except
as set forth in Exhibit 5.7-NOTES, NOTES has no real property owned or           leased
by NOTES pursuant to which NOTES holds, occupies or uses to conduct its
          business operations (the NOTES Real Property).
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The
activities carried on in all buildings, plants, facilities, installations,
          fixtures and other structures or improvements included as part of, or located
on           or at the NOTES Real Property, and the buildings, plants, facilities,
          installations, fixtures and other structures or improvements themselves, are
not           in violation of, or in conflict with, any applicable zoning, Environmental
Law,           health regulations or ordinance or any other similar Law.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | Except
as set forth in Exhibit 5.7-NOTES, no Hazardous Material have been used           in the
construction or repair of, or any alterations or additions to, or are           otherwise
located on, any portion of the NOTES Real Property.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Section 5.8       
    Contracts.

|(a) | Except
as set forth in Exhibit 5.8-NOTES, NOTES has no Contracts to which NOTES           is a
party or by which its assets or properties are bound or subject.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Except
as listed on Schedule 5.8-NOTES,
|--- | ---------------------------------------

| | (i) | all
such Contracts are valid, subsisting, in full force and effect, and binding
          upon the parties (to such Contracts) in accordance with the terms of such
          Contracts; and
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | all
such Contracts are valid, subsisting, in full force and effect, and binding
          upon the parties (to such Contracts) in accordance with the terms of such
          Contracts; and
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | NOTES
| | ---- | -----

| | (A) | is
in compliance with all provisions of any such Contracts;
| | --- | -----------------------------------------------------------

| | (B) | is
not in default under any Contracts; and, to the best of its knowledge,
| | --- | -------------------------------------------------------------------------

| | (C) | no
other party (to any such Contracts) in default thereunder, nor does any
          condition exist that with notice or lapse of time or both would constitute a
          default thereunder; and
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | NOTES
has, or shall, delivered to JRSE true and complete copies of any of such
          Contracts at or prior to the Closing.
| | --- | ------------------------------------------------------------------------------------------------------------------------------

Section 5.9      
    Condition and
Sufficiency of Assets.

| | (a) | Except
as disclosed on Schedule 5.9-NOTES, all of the tangible assets and           properties
of NOTES, whether real or personal, owned or leased, have been well           maintained
and are in good operating condition and repair (with the exception of           normal
wear and tear), and are free from defects other than such minor defects           as do
not interfere with the intended use thereof in the conduct of normal           operations
or adversely affect the resale value thereof.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Immediately
after the Closing Date, NOTES shall own or have a permanent right to           use all
the assets, properties, rights, know-how, key personnel, processes and           ability
which are required for or currently used in connection with the           operation of
its business as it is presently conducted.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | Such
assets, properties and rights were sufficient to produce the income as           shown on
the Financial Statements of NOTES.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------

ARTICLE VI REPRESENTATIONS AND
WARRANTIES OF JRSE

In
order to induce the other Parties to enter into this Agreement, JRSE makes the following
representations and warranties to the other Parties.

Section 6.1      
     Reporting
Company.

JRSE
is required to and does file reports with the SEC pursuant to Section 13 (a) or 15 (d) of
The Securities Exchange Act of 1934, as amended, and JRSE is current with respect to all
reports required to be filed with the SEC.

Section
6.2           Capitalization

| | (a) | The
authorized capital of JRSE is as set forth in the Latest Financial           Statements
of JRSE required to be filed by it with the SEC.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | All
of the outstanding Securities of JRSE have been duly authorized, validly           issued
and are fully paid and nonassessable.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------

Section 6.3       
     Delivery of
the JRSE Shares.

| | (a) | There
was, is, and will be no existing impediment or encumbrance to the sale and
          transfer of the JRSE Shares to the NOTES Stockholder, and on delivery to the
          NOTES Stockholder of the JRSE Shares,
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | all
of the JRSE Shares have been, are, and will be free and clear of all taxes,
          liens, encumbrances, charges or assessments of any kind and shall not be
subject           to preemptive rights, tag-along rights, cumulative voting, or similar
rights of           any shareholder of JRSE, and
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | all
of the JRSE Shares have been, are, and will be duly authorized, validly
               issued and are fully paid and nonassessable.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------

Section 6.4       
    Due
Incorporation.

The
copies of the Articles of Incorporation of JRSE and of the By-Laws of JRSE, and the stock
records of JRSE which will be delivered by the NOTES Stockholder at or prior to the
Closing Date shall be true and complete.

Section 6.5        
   Financial Statements; No Undisclosed Liabilities.

| | (a) | The
Financial Statements of JRSE present fairly the financial position, assets,
          liabilities and retained earnings of JRSE as at the dates thereof and the
          revenues, expenses, results of operations, changes in financial position and
          cash flows of JRSE for the periods covered thereby.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | The
Financial Statements are in accordance with the books and records of JRSE,           do
not reflect any transactions which are not bona fide transactions, and
          do not contain any untrue statement of a material fact or omit to state any
          material fact necessary to make the statements contained therein, in light of
          the circumstances in which they were made, not misleading.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | Except
as set forth in Exhibit 6.5-JRSE, or in the Latest Financial Statements           of
JRSE, JRSE has no liabilities, debts, claims or obligations, whether accrued,
          absolute, contingent or otherwise, whether due or to become due, other than
          trade payables and accrued expenses incurred in the ordinary course of business
          since the date of the Latest Financial Statements.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | There
is no basis for the assertion against JRSE, as at the date of this           Agreement,
or as at the Closing Date, of any liability of any nature or in any           amount not
fully reflected or reserved against in the Financial Statements of           JRSE, and
there is no reason for JRSE to believe otherwise, irrespective of           whether or
not it believes the claim is valid or not.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Section 6.6        
   Taxes.

| | (a) | JRSE
has filed all federal, state and local tax returns which are required to be
          filed or has requested extensions thereof and has paid all Taxes shown on such
          returns and all assessments received by it to the extent that the same have
          become due except as shown on the Financial Statements of JRSE.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | JRSE
has not agreed nor is it required to make any adjustment under the           provisions
of the Internal Revenue Code or any similar state or local law by           reason of a
change in accounting method or otherwise.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | The
total amounts set up as liabilities for current taxes in the Financial
          Statements of JRSE are sufficient to cover the payment of all claims, whether
          known or unknown, with respect to all Taxes;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | Except
as set forth in Schedule 6.6-JRSE, there are no claims pending           against JRSE
with respect to Taxes,
| | --- | -------------------------------------------------------------------------------------------------------------------

| | (e) | Neither
the Federal income tax returns of JRSE nor its state and local returns
          (measured, in whole or in part, by income) have been or are being audited.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

Section 6.7       
    Real Property
Used in Business.

| | (a) | A
decription of all real property owned or leased by JRSE pursuant to which JRSE
          holds, occupies or uses to conduct its business operations (the JRSE Real
          Property) is contained in filings made by JRSE with the SEC.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | The
activities carried on in all buildings, plants, facilities, installations,
          fixtures and other structures or improvements included as part of, or located
on           or at the JRSE Real Property, and the buildings, plants, facilities,
          installations, fixtures and other structures or improvements themselves, are
not           in violation of, or in conflict with, any applicable zoning, Environmental
Law,           health regulations or ordinance or any other similar Law.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | Except
as set forth in Exhibit 6.7-JRSE, no Hazardous Material have been used in           the
construction or repair of, or any alterations or additions to, or are           otherwise
located on, any portion of the JRSE Real Property.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Section 6.8       
    Contracts.

| | (a) | All
material Contracts to which JRSE is a party or by which its assets or
          properties are bound or subject are identified or described in filings made by
          JRSE with the SEC.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Except
as listed on Schedule 6.8-JRSE,
| | --- | --------------------------------------

| | (i) | all
such Contracts are valid, subsisting, in full force and effect, and binding
          upon the parties (to such Contracts) in accordance with the terms of such
          Contracts; and
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | JRSE
| | ---- | ----

| | (A) | is
in compliance with all provisions of any such Contracts;
| | --- | -----------------------------------------------------------

| | (B) | is
not in default under any Contracts; and, to the best of its knowledge,
| | --- | -------------------------------------------------------------------------

| | (C) | no
other party (to any such Contracts) in default thereunder, nor does any
          condition exist that with notice or lapse of time or both would constitute a
          default thereunder.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Section 6.9      
    Condition and
Sufficiency of Assets.

| | (a) | Except
as disclosed on Exhibit 6.9-JRSE, all of the tangible assets and           properties of
JRSE, whether real or personal, owned or leased, have been well           maintained and
are in good operating condition and repair (with the exception of           normal wear
and tear), and are free from defects other than such minor defects           as do not
interfere with the intended use thereof in the conduct of normal           operations or
adversely affect the resale value thereof.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Immediately
after the Closing Date, JRSE shall own or have a permanent right to           use all the
assets, properties, rights, know-how, key personnel, processes and           ability
which are required for or currently used in connection with the           operation of
its business as it is presently conducted.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | Such
assets, properties and rights were sufficient to produce the income as           shown on
the Financial Statements of JRSE.
| | --- | --------------------------------------------------------------------------------------------------------------------------------

ARTICLE VII

ADDITIONAL COVENANTS

Section 7.1          No Material Changes or Transactions to be Made or Entered Into.

The
Parties covenant and agrees that, except for transactions expressly authorized or
contemplated by this Agreement, between the date hereof and the Closing Date, without
prior written consent of the others, which consent will not be unreasonably withheld, they
will not

| | (a) | in
the case of NOTES and JRSE,
| | --- | ------------------------------

| | (i) | effect
any material change, in their respective capital structures including
          outstanding debt or equity Securities, subsequent to the date of this
Agreement;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | grant
any lien or other encumbrance on any of its assets or properties;
| | ---- | -----------------------------------------------------------------------

| | (iii) | enter
into Contract pursuant to which it agrees to indemnify any party to or to;
               or
| | ----- | --------------------------------------------------------------------------------------------------

| | (iv) | except
in the ordinary course of business, enter into any other material                Contract
or other material transaction,nor
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------

| | (b) | in
the case of the NOTES Stockholder,
| | --- | -------------------------------------

| | (i) | take
any action which would impair the ability and obligation of the NOTES
          Stockholder to convey and deliver the NOTES Shares to JRSE as set forth in this
          Agreement, nor
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | in
the case of JRSE,
| | --- | --------------------

| |  | 
| |  | 

| | (i) | take
any action which would impair the ability and obligation of JRSE to issue           and
deliver the JRSE Shares to the NOTES Stockholder as set forth in this
          Agreement.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Section 7.2       
    No Adverse
Effects or Changes.

Except
as listed on Schedule 7.2-NOTES, since the Latest NOTES Financial Statement Date, and,
except as listed on Schedule 7.2-JRSE, since the Latest JRSE Financial Statement Date,
neither NOTES nor JRSE has

|(a) | suffered
any Material Adverse Effect;
|--- | -------------------------------------

|(b) | suffered
any damage, destruction or Loss (as that term is defined in Article I)           to any
of its assets or properties (whether or not covered by insurance);
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | incurred
any obligation or entered into any Contract which requires a payment by           JRSE or
NOTES in excess of $1,000.00 or entered into any Contract to provide for           the
delivery of goods or the performance of services, or any combination           thereof,
by JRSE or NOTES, having a value in excess of $1,000.00;
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | sold,
transferred, conveyed, assigned, leased, encumbered or otherwise disposed           of
any of its assets or properties other than in the ordinary course of           business;
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | waived,
released or canceled any claims against third parties or debts owing to           it, or
any rights;
|--- | ------------------------------------------------------------------------------------------------------------

|(f) | made
any changes in its accounting systems, policies, principles or practices;
|--- | ------------------------------------------------------------------------------

|(h) | authorized
for issuance, issued, sold, delivered or agreed or committed to           issue, sell or
deliver (whether through the issuance or granting of options,           warrants,
convertible or exchangeable Securities, commitments, subscriptions,           rights to
purchase or otherwise), any of its Securities, or amended any of the           terms of
any of its Securities;
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(i) | split,
combined, or reclassified any shares of its Securities, declared, set           aside or
paid any dividend or other distribution (whether in cash, stock or           property or
any combination thereof) in respect of its Securities, or redeemed           or otherwise
acquired any Securities of the Company or of any other Person;
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(j) | except
for Existing Borrowing, made any borrowing, incurred any debt, or           assumed,
guaranteed, endorsed or otherwise become liable (whether directly,           contingently
or otherwise) for the obligations of any other Person, or made any           payment or
repayment in respect of any indebtedness;
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(k) | made
any loans, advances or capital contributions to, or investments in, any           other
Person;
|--- | ----------------------------------------------------------------------------------------------------

|(l) | entered
into, adopted, amended or terminated any bonus, profit sharing,           compensation,
termination, stock option, stock appreciation right, restricted           stock,
performance unit, pension, retirement, deferred compensation, employment,
          severance or other employee benefit agreements, trusts, plans, funds or other
          arrangements for the benefit or welfare of any director, officer or employee,
or           increased in any manner the compensation or fringe benefits of any director
or           officer;
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(m) | authorized
or made any material capital expenditure;
|--- | ----------------------------------------------------

|(n) | settled
or compromised any federal, state, local or foreign Tax liability, or           waived or
extended the statute of limitations in respect of any such Taxes;
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(o) | paid
any amount, performed any obligation or agreed to pay any amount or perform           any
obligation, in settlement or compromise of any suits against it or its
          Affiliates or any of its directors, officers, employees, agents, or
          shareholders;
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(p) | terminated,
modified, amended or otherwise altered or changed any of the terms           or
provisions of any Contract, or paid any amount not required by Law or by any
          Contract.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Section 7.3           Additional
Information.

Prior
to the Closing each Party hereto will supply to the other all information reasonably
required to enable the other Party to make such due diligence investigation as the
requesting Party deems necessary and shall make available such persons as needed to verify
or substantiate any information supplied.

Section 7.4          
Confidentiality.

Each
Party hereto will treat confidentially all Confidential Information supplied to it and
will use same solely to evaluate the contemplated transaction. No Confidential Information
transmitted hereunder shall be disclosed to any third party, other than the Partys
directors, officers and legal and accounting advisors. No Party shall disclose information
concerning this Agreement, to the public or the press, except as deemed necessary by JRSE
with respect to disclosures it believes are required pursuant to federal Securities laws
and regulations.

Section 7.5          
Expenses

Each
Party will pay its own expenses with respect to preparation of this Agreement and
documents attendant thereto.

ARTICLE VIII CONDITIONS PRECEDENT TO
OBLIGATIONS OF THE PARTIES;
TERMINATION

Section
8.1 Conditions Precedent to the Obligations of the NOTES Stockholder.

The
obligations of the NOTES Stockholder under this Agreement are, at his option, subject to
the satisfaction at the Closing on the Closing Date of the following conditions precedent:

|(a) | The
representations and warranties of JRSE contained in this Agreement shall           have
been true when made and shall continue to be true at all times after the           date
hereof and as of the Closing on the Closing Date with the same force and           effect
as though such representations and warranties had been made at and as of           the
Closing on the Closing Date, subject only to changes permitted by the
          provisions of this Agreement, and, further provided, that such changes will
not,           together with all other events prior to the Closing, result in there being
a           Material Adverse Effect in or to the condition, financial or otherwise, and
in           the results of operations of JRSE;
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The
irrevocable letter of instructions to the Transfer Agent authorizing the           issue
of the JRSE Shares to the NOTES Stockholder shall have been delivered by           JRSE
to the NOTES Stockholder;
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | JRSE
shall have satisfied all the conditions and performed all the covenants and
          agreements on its part required by this Agreement to be satisfied and performed
          and shall not be in default under any of the provisions of this Agreement; and
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | No
litigation, proceeding, investigation or inquiry shall be pending or           threatened
to set aside the authorization of this Agreement, or to enjoin or           prevent the
consummation of the transactions contemplated hereby, or to enjoin           or prevent
the consummation of the transactions contemplated hereby, or           involving any of
the assets of Elgarnde, which might materially and adversely           affect the
business or prospects of JRSE.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Section 8.2        
  Conditions Precedent to Obligations of JRSE.

The
obligations of JRSE under this Agreement are, at its option, subject to the satisfaction
at the Closing on the Closing Date of the following conditions precedent:

|(a) | The
representations and warranties of NOTES and the NOTES Stockholder contained           in
this Agreement shall have been true when made and shall continue to be true           at
all times after the date hereof and as of the Closing on the Closing Date           with
the same force and effect as though such representations and warranties had
          been made at and as of the Closing on the Closing Date, subject only to changes
          permitted by the provisions of this Agreement, and, further provided, that such
          changes will not, together with all other events prior to the Closing, result
in           there being a Material Adverse Effect in or to the condition, financial or
          otherwise, and in the results of operations of NOTES or the NOTES Stockholder;
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The
NOTES Stockholder shall have satisfied all the conditions and performed all           the
covenants and agreements on his part required by this Agreement to be           satisfied
and performed and shall not be in default under any of the provisions           of this
Agreement;
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | No
litigation, proceeding, investigation or inquiry shall be pending or           threatened
to set aside the authorization of this Agreement, or to enjoin or           prevent the
consummation of the transactions contemplated hereby, or to enjoin           or prevent
the consummation of the transactions contemplated hereby, or           involving any of
the assets of NOTES, which might materially and adversely           affect the business
or prospects of NOTES; and
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | The
NOTES Stockholder shall have delivered to JRSE the stock certificates
          evidencing the NOTES Shares owned by him, all duly endorsed in blank.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------

Section 8.3       
    Termination
of Agreement.

This
Agreement and the transactions contemplated hereby may be terminated at any time prior to
the Closing on the Closing Date:

|(a) | By
mutual consent of all the Parties;
|--- | -------------------------------------

|(b) | By
the NOTES Stockholder if JRSE shall fail to or refuse to perform or observe           any
covenant or agreement hereof to be performed or observed by it on or prior           to
the Closing on the Closing Date or any condition to the obligations of JRSE
          hereunder shall not have been met or satisfied prior to the Closing on the
          Closing Date. [Failure of the NOTES Stockholder to exercise his right of
          termination pursuant hereto, at any time or from time to time, shall not be
          deemed a waiver of their right to terminate the Agreement pursuant to the
          provisions of this Subparagraph (b) even if the failure or refusal to perform
or           observe a covenant or agreement hereof, or the failure of any condition to
be           met or satisfied, is subsequently cured prior to the Closing on the Closing
          Date]; or
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | By
JRSE if the NOTES Stockholder or NOTES shall fail to perform or observe any
          covenant or agreement hereof to be performed or observed by them on or prior to
          the Closing on the Closing Date or any condition to the obligations of NOTES
          Stockholder or NOTES hereunder shall not have been met or satisfied prior to
the           Closing on the Closing Date. [Failure of JRSE to exercise its right of
          termination pursuant hereto, at any time or from time to time, shall not be
          deemed a waiver of its right to terminate the Agreement pursuant to the
          provisions of this Subparagraph (c), even if the failure or refusal to perform
          or observe a covenant or agreement hereof, or the failure of any condition to
be           met or satisfied, is subsequently cured prior to the Closing on the Closing
          Date.]
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

ARTICLE IX

SURVIVAL OF
REPRESENTATIONS AND WARRANTIES

In
order to induce the other Parties to enter into this Agreement, each Party states and
undertakes as follows:

Section 9.1          Continuous Truth of Representations and Warranties.

The
representations and warranties of the Parties contained in this Agreement were true when
made and, in addition, they shall also be true as of the Closing on the Closing Date with
the same force and effect as though they had been made at and as of the Closing on the
Closing Date.

Section      
    
9.2 Survival of Representations and Warranties.

The
representations and warranties contained in this Agreement and in any Schedules,
certificates or other documents delivered pursuant hereto shall survive the execution and
delivery hereof and the Closing for a period of three (3) years except for representations
and warranties with respect to any and all tax matters which shall survive until any
liability for such matters shall be barred by the applicable statute of limitations.

Section
9.2           Entire Agreement.

This
Agreement sets forth the entire understanding and agreement between the Parties and
supersedes and replaces any prior understanding, agreement or statement (written or oral)
of intent. No provision of this Agreement shall be construed to confer any rights or
remedies on any person other than the Parties hereto.

Section
9.3           Indemnification by NOTES and the NOTES Stockholder.

For
claims asserted with respect to the matters set forth below, including tax matters, during
the time periods set forth in Section 9.2, NOTES and the NOTES Stockholder agrees to
indemnify in respect of, and hold JRSE harmless against, all Loses (as defined in Article
I) based upon, resulting from or otherwise in respect of, any misrepresentation, breach of
warranty, or nonfulfillment or failure to perform any covenant or agreement on the part of
the NOTES or the NOTES Stockholder under this Agreement, incuding any undisclosed
liabilities in the Financial Statements of NOTES.

Section 9.4       
  
Indemnification by JRSE.

For
claims asserted with respect to the matters set forth below, including tax matters, during
the time periods set forth in Section 9.1, JRSE agrees to indemnify in respect of, and
hold NOTES and the NOTES Stockholder harmless against, any and all Losses (as defined in
Article I) based upon, resulting from or otherwise in respect of any misrepresentation,
breach of warranty, or nonfulfillment or failure to perform any covenant or agreement on
the part of JRSE under this Agreement.

Section
9.5           Notice and Opportunity to Defend.

The
Party claiming indemnification hereunder (the Indemnified Party) shall give
the other Party (the Indemnifying Party) written notice of any claim, event,
misrepresentation, breach or occurrence giving rise to such claim for indemnification
within 60 days of its discovery of any such claim, event, misrepresentation, breach or
occurrence. Failure to give such notice within the aforesaid time period shall release the
Indemnifying Party from any liability therefor under the provisions of Article IX. The
Indemnifying Party shall have the right at its sole cost and expense to:

|(a) | cure
the claim, event, misrepresentation, breach, or occurrence giving rise to           the
right of indemnification within 60 days following receipt of such notice;
          provided, however, that if such cure is commenced within such 60 day period and
          is pursued diligently and in good faith to completion, such period shall be
          extended for a reasonable sufficient period of time to enable such cure to be
          completed, or
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | defend
any third party claim, other than a claim by or through any taxing           authority,
alleged to give rise to the right of indemnification with counsel           satisfactory
to the Indemnified Party, and the Indemnifying Party shall be           liable to the
extent of all Losses. In computing the amount of Losses for which           any Party is
liable under this Agreement, there shall be deducted an amount           equal to any tax
savings or benefits, insurance recoveries, benefits or off-sets           to which the
Indemnified Party shall be entitled directly as a result of the           Losses.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

ARTICLE X

POST-CLOSING OBLIGATIONS

Section
10.1           Further Assurances.

Following
the Closing, each of the Parties hereto shall each execute and deliver such documents, and
take such other action, as shall be reasonably requested by any of the other parties
hereto to carry out the transactions contemplated by this Agreement.

Section 10.2       
    Publicity.

Except
as permitted by Section 7.3 hereof, the Parties hereto shall not issue or make, or cause
to have issued or made, any publicity release or announcement concerning the transactions
contemplated hereby, without the advance approval in writing of the form and substance
thereof by all Parties.

ARTICLE XI

MISCELLANEOUS

Section
11.1           Notices.

|(a) | Any
notice, request, instruction or other document required by the terms of this
          Agreement to be given to any other Party hereto shall be in writing and shall
be           given either
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | by
telephonic facsimile, in which case notice shall be presumptively deemed to
          have been given at the date and time displayed on the senders
transmission           confirmation receipt showing the successful receipt thereof by the
recipient;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | by
nationally recognized courier or overnight delivery service in which the date
          of delivery is recorded by the delivery service, in which case notice shall be
          presumptively deemed to have been given at the time that records of the
delivery           service indicate the writing was delivered to the addressee;
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | by
United States Mail sent by registered or certified mail, postage prepaid,           with
return receipt requested, in which case notice shall be presumptively           deemed to
have been given at the time that records of the United States Postal           Service
indicate the writing was delivered to the addressee.
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Notice
shall be sent:
|--- | ---------------------

| | (i) | If
to NOTES, to:
| | --- | ----------------

| |                                                                                                                                                                                                                                                        | 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | 
| | Dr. Notes, Inc.
4898 Palm Ridge Boulevard
Delray Beach, Florida   33445
Attention: Joseph W. Steffey, President
Telephone Number:       (561)  279  -  4002
Cell Telephone Number:  (561)  577 -  5457
E-mail:                  sagemail2001@yahoo.com | 

| | (ii) | If
to the NOTES Stockholder, to:
| | ---- | --------------------------------

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
| | Joseph W. Steffey
4898 Palm Ridge Boulevard
Delray Beach, Florida   33445
Telephone Number:                  (561)  279  -  4002
Cell Telephone Number:             (561)  577 -  5457
E-mail:                   sagemail2001@yahoo.com
JRSE:
Jacobson Resonance Enterprises, Inc.
By:   /s/ Harvey Grossman
Harvey Grossman, President
NOTES:
Dr. Notes, Inc.
By:   /s/ Joseph Steffey
Joseph W. Steffey, President
THE NOTES STOCKHOLDER:
Joseph W. Steffey
By: /s/ Joseph W. Steffey
Joseph W. Steffey, Individually, as a Natural Person | 

| | (iii) | If
to JRSE, to:
| | ----- | ---------------

| |                                                                                                                                                                                                                                                                                                                                                                                   | 
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
| | Jacobson Resonance Enterprises, Inc.
8200 Jog Road
Suite 100
Boynton Beach, Florida 33437
Attention: Harvey Grossman, President
Voice Telephone Number:        (561) 752  -  4141
Facsimile Telephone Number:    (561) 752  -  3939
E-mail: jacobsonres@aol.com     and/or
                                harveylion@yahoo.com
Cell Telephone Number:          (561) 859  - 7410 | 

| |  | with a
copy (which shall not constitute notice) to:
| |  | ---------------------------------------------------

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
| | Michael Paige, Esq.
Jackson & Campbell, P.C.
One Lafayette Center, South Tower
1120 - 20th Street, N.W.
Washington, DC  20036-3437
Voice Telephone Number:      (202) 457-1600
Facsimile Telephone Number:  (202) 457-1678
E-Mail:    mpaige@jackscamp.com 
        and
Guy K. Stewart, Jr., Esq.
1701 South Flagler Drive
Number 1408
West Palm Beach, Florida 33401
Voice Telephone Number:      (561) 659  -  1810
Facsimile Telephone Number:  (561) 659  -  3888
E-Mail:                       gkslaw@covad.net | 

| | (iv) | or
to such other address as a Party may have specified in writing to the other
          Parties using the procedures specified above in this Section.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------

Section
11.2           Assignment and Amendment.

This
Agreement shall not be assignable by any Party, and shall not be altered or otherwise
amended except pursuant to a writing executed by all of the Parties hereto.

Section 11.3       
    Severability.

If
any provision of this Agreement, or the application of any such provision to any person or
circumstance, shall be held invalid by a court or tribunal of competent jurisdiction, the
remainder of this Agreement, or the application of such provision to persons or
circumstances other than those as to which it is held invalid, shall not be affected
thereby.

Section 11.4       
    Counterparts.

This
Agreement may be executed in any number of counterparts, each of which shall be deemed an
original, but all of which together shall constitute a single instrument. It shall not be
necessary that any counterpart be signed by all of the Parties hereto.

Section 11.5       
    Variation in Pronouns.

All
pronouns and any variations thereof shall be deemed to refer to the masculine, feminine or
neuter, singular or plural, as the identity of the person or persons or entity or entities
may require.

Section 11.6       
    Indulgences, Etc.

Neither
the failure nor any delay on the part of any Party to exercise any right, remedy, power or
privilege under this Agreement shall operate as a waiver thereof, nor shall any single or
partial exercise of any right, remedy, power or privilege preclude any other or further
exercise of the same or of any other right, remedy, power or privilege with respect to any
occurrence be construed as a waiver of such right, remedy, power or privilege with respect
to any other occurrence. No waiver shall be effective unless it is in writing and is
signed by the Party asserted to have granted such waiver.

Section 11.7       
    Exhibits and Schedules.

All
Exhibits and Schedules attached hereto are incorporated by reference into, and made a part
of, this Agreement.

Section 11.8       
    Headings.

The
Article and Section headings are for convenience only, they form in part of this
Agreement, and they shall not affect its interpretation.

Section 11.9       
    Choice of Law, Venue, Arbitration, Waiver of Jury Trial.

|(a) | This
Agreement and all questions relating to its validity, interpretation,
          performance and enforcement (including, without limitation, provisions
          concerning limitations of actions), shall be governed by and construed in
          accordance with the laws of the State of Florida, notwithstanding any
          conflict-of-laws doctrines of such state or other jurisdiction to the contrary,
          and without the aid of any canon, custom or rule of law requiring construction
          against the draftsman.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The
Parties hereby mutually waive trial by jury
|--- | -----------------------------------------------

| | IN
THAT CONNECTION, EACH OF THE PARTIES WAIVES THE RIGHT TO A TRIAL BY JURY IN ANY DISPUTE IN
CONNECTION WITH OR RELATING TO THIS AGREEMENT, ANY RELATED AGREEMENT OR ANY MATTERS
DESCRIBED OR CONTEMPLATED HEREIN OR THEREIN, AND AGREES TO TAKE ANY AND ALL ACTION
NECESSARY OR APPROPRIATE TO EFFECT SUCH WAIVER.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | The
Parties hereto irrevocably agree and consent that all disputes concerning           this
Agreement or any claim or issue of any nature whatsoever (whether brought           by
the Parties hereto) arising from or relating to this Agreement or to the
          corporate steps taken to enter into it (including, without limitation, claims
          for alleged fraud, breach of fiduciary duty, breach of contract, tort, etc.)
          which cannot be resolved within reasonable time through discussions between the
          opposing entities, shall be resolved solely and exclusively by means of
          arbitration to be conducted in Boynton Beach, Florida, which arbitration will
          proceed in accordance with the rules of the Arbitration then in force in
Boynton           Beach, Florida, for resolution of commercial disputes. In addition, the
Parties waive, to the maximum extent permitted by law, any objection, including any
objection based on forum non conveniens, to the bringing of any such proceeding in
such forum.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | The
Arbitrators themselves shall have the right to determine and to arbitrate           the
threshold issue of arbitrability itself, the decision of the Arbitrators           shall
be final, conclusive, and binding upon the opposing entities, and a           judgment
upon the award may be obtained and entered in any federal or state           court of
competent jurisdiction; and
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | Attorneys
Fees. Each Party involved in litigation or arbitration shall be           responsible for
its own costs and expenses of any litigation or arbitration           proceeding,
including its own attorneys fees (for any litigation,           arbitration, and
any appeals).
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK

SIGNATURES APPEARS ON THE
FOLLOWING PAGE

SIGNATURE PAGE

In Witness Whereof, the undersigned
Parties have executed this Agreement as of the day and year first set forth above.

| |                                                                                                                                                                                                                                                                                                  
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | JRSE:
Jacobson Resonance Enterprises, Inc.By:   /s/ Harvey Grossman
Harvey Grossman, President
NOTES:
Dr. Notes, Inc.By:   /s/ Joseph Steffey
Joseph W. Steffey, President
THE NOTES STOCKHOLDER:
Joseph W. SteffeyBy: /s/ Joseph W. Steffey
Joseph W. Steffey, Individually, as a Natural Person