Document:

EXHIBIT 10.2

                          SECURITIES PURCHASE AGREEMENT

         THIS SECURITIES  PURCHASE AGREEMENT (the "Agreement") is made as of the
5th day of August, 2003, by and between Skyframes, Inc., a Utah corporation (the
"Company"),  and Ocean Drive SF  Associates,  LLC, a New York limited  liability
company and its participants and assignees (the "Investor").

                              W I T N E S S E T H:

         WHEREAS, the Company desires to sell to the Investor,  and the Investor
desires to purchase from the Company,  (a) a convertible  promissory note in the
principal  amount of $250,000  (the  "Note"),  in the form attached as EXHIBIT A
hereto,  and (b) a warrant (the  "Warrant"),  in the form  attached as EXHIBIT B
hereto,  to purchase  250,000  shares of the Company's  common stock,  $0.10 par
value per  share  (the  "Common  Stock"),  pursuant  to the  provisions  of this
Agreement; and

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
set forth in this Agreement, and for other good and valuable consideration,  the
receipt and sufficiency of which are hereby acknowledged,  the parties do hereby
agree as follows:

         1. PURCHASE AND SALE OF NOTE AND WARRANT.

         1.1 ISSUANCE AND SALE OF 8%  CONVERTIBLE  PROMISSORY  NOTE AND WARRANT.
Subject to the terms and conditions of this  Agreement,  the Investor  agrees to
purchase at the Closing (as hereafter defined),  and the Company agrees to issue
and sell to the  Investor  at the  Closing,  the Note  and the  Warrant,  for an
aggregate  purchase price of Two Hundred Fifty Thousand  ($250,000) Dollars (the
"Purchase Price").

         1.2 CLOSING.

                  (a) The  purchase  and sale of the Note and the  Warrant  (the
"Closing")  shall take place at the  offices of Littman  Krooks  LLP,  655 Third
Avenue,  New York New York 10017,  at 10:00 a.m.,  on August 5, 2003, or at such
other time and place as the Company and the Investor  mutually agree upon orally
or in writing.

                  (b) At the Closing, the Company shall deliver to the Investor,
the Note and the Warrant, against payment of the Purchase Price by check or wire
transfer payable to the Company.

         2.  REPRESENTATIONS  AND WARRANTIES OF THE COMPANY.  The Company hereby
represents  and warrants to the  Investor,  except as set forth on a Schedule of
Exceptions to Representations  and Warranties  attached hereto as EXHIBIT C (the
"Schedule of Exceptions"), the following:

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                  2.1  SUBSIDIARIES.  The  Company  does  not  presently  own or
control,  directly  or  indirectly,  any  interest  in  any  other  corporation,
association, or other business entity except as disclosed in the SEC Reports (as
hereinafter    defined)   (each,   a   "Subsidiary"   and   collectively,    the
"Subsidiaries"). Unless the context requires otherwise, all references herein to
the "Company"  shall refer to the Company and its  Subsidiaries.  The Company is
not a party to any joint venture, partnership, or similar arrangement.

                  2.2  ORGANIZATION,  GOOD  STANDING,  AND  QUALIFICATION.   The
Company is a corporation duly organized,  validly existing, and in good standing
under the laws of the State of Utah, and has all requisite  corporate  power and
authority to carry on its business as now conducted.  The  Subsidiaries are duly
organized in their respective  jurisdictions  of organization,  validly existing
and in good standing in such respective jurisdictions and each has the power and
authority to carry on its respective business as now conducted.  The Company and
the  Subsidiaries  are  duly  qualified  to  transact  business  and are in good
standing in each  jurisdiction  in which the failure so to qualify  would have a
Material  Adverse  Effect (as hereafter  defined) on the  Company's  business or
properties.

                  2.3   CAPITALIZATION   AND  VOTING   RIGHTS.   The  number  of
authorized,  issued and outstanding capital stock of the Company is set forth in
EXHIBIT C. Except as disclosed in EXHIBIT C, no securities of the Company or any
Subsidiary  are entitled to preemptive or similar  rights,  nor is any holder of
securities  of the Company or any  Subsidiary  entitled to preemptive or similar
rights  arising out of any  agreement or  understanding  with the Company or any
Subsidiary by virtue of any of the Transaction Documents (defined  hereinafter).
Except as disclosed in EXHIBIT C, there are no  outstanding  options,  warrants,
script rights to subscribe to, calls or commitments of any character  whatsoever
relating to, or  securities,  except as a result of the purchase and sale of the
Securities,  or rights or obligations  convertible into or exchangeable  for, or
giving any Person (as defined below) any right to subscribe for or acquire,  any
shares  of  Common  Stock,  or  contracts,   commitments,   understandings,   or
arrangements  by which the Company or any  Subsidiary  is or may become bound to
issue additional shares of Common Stock, or securities or rights  convertible or
exchangeable  into shares of Common  Stock.  To the  knowledge  of the  Company,
except as  specifically  disclosed  in the SEC Reports (as defined  below) or in
EXHIBIT  C, no  Person  or  group  of  related  Persons  beneficially  owns  (as
determined  pursuant to Rule 13d-3 promulgated under the Securities Exchange Act
of 1934,  as  amended  (the  "Exchange  Act")),  or has the right to  acquire by
agreement with or by obligation binding upon the Company,  beneficial  ownership
of in excess of 5% of the  Common  Stock.  A  "Person"  means an  individual  or
corporation,  partnership,  trust,  incorporated or unincorporated  association,
joint venture, limited liability company, joint stock company, government (or an
agency or subdivision thereof) or other entity of any kind.

                  2.4  AUTHORIZATION.  All  corporate  action on the part of the
Company,   its  officers,   directors,   and  shareholders   necessary  for  the
authorization,  execution,  and  delivery of this  Agreement,  the  Registration
Rights  Agreement  (as  hereafter  defined),  the  Note  and  the  Warrant  (the
"Transaction  Documents"),  the  performance  of all  obligations of the Company
hereunder and thereunder and the  authorization,  issuance (or  reservation  for
issuance),  and delivery of the Note and the Warrant being sold  hereunder,  the
Common Stock issuable upon  conversion of the Note and the Common Stock issuable

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upon  exercise  of the  Warrant,  has been  taken or will be taken  prior to the
Closing,  and the  Transaction  Documents  constitute  valid and legally binding
obligations  of the Company,  enforceable  in accordance  with their  respective
terms,   except   (i)  as   limited  by   applicable   bankruptcy,   insolvency,
reorganization,  moratorium,  and other  laws of general  application  affecting
enforcement of creditors' rights generally,  (ii) as limited by laws relating to
the availability of specific performance,  injunctive relief, or other equitable
remedies,  and (iii) to the extent the indemnification  provisions  contained in
the Transaction Documents may be limited by applicable federal or state laws.

                  2.5      VALID ISSUANCE OF NOTE, WARRANT AND COMMON STOCK.

                           (a) The Note and the Warrant are being  purchased  by
the Investor hereunder,  when issued, sold, and delivered in accordance with the
terms hereof for the consideration provided for herein, will be duly and validly
issued,  and,  based in part upon the  representations  of the  Investor in this
Agreement,  will be issued in compliance  with all applicable  federal and state
securities  laws. The Common Stock issuable upon conversion of the Note and upon
exercise of the Warrant have been duly and validly  reserved  for issuance  and,
upon  issuance  in  accordance  with the  terms  of the  Note  and the  Warrant,
respectively,  shall be duly and validly issued,  fully paid and  nonassessable,
and issued in compliance  with all applicable  securities  laws, as presently in
effect, of the United States and each of the states whose securities laws govern
the issuance of the Note and the Warrant hereunder.

                           (b) All  outstanding  shares of  Common  Stock of the
Company  are  duly  and   validly   authorized   and  issued,   fully  paid  and
nonassessable,  and were issued in compliance  with all  applicable  federal and
state securities laws.

                  2.6 FILINGS,  CONSENTS AND APPROVALS.  Neither the Company nor
any Subsidiary is required to obtain any consent, waiver, authorization or order
of, give any notice to, or make any filing or  registration  with,  any court or
other federal,  state, local or other governmental  authority or other Person in
connection  with the execution,  delivery and  performance by the Company of the
Transaction  Documents,  other than (i) applicable  Blue Sky filings and (ii) in
all other cases where the failure to obtain such consent, waiver,  authorization
or order, or to give such notice or make such filing or  registration  could not
have or result in,  individually or in the aggregate,  a material adverse effect
on the results or  operations  of the Company  and its  Subsidiaries  taken as a
whole ("Material Adverse Effect").

                  2.7 LITIGATION. There is no action, suit, proceeding, claim or
investigation pending or, to the knowledge of the Company,  currently threatened
against the Company which questions the validity of the  Transaction  Documents,
or the right of the  Company to enter  into any of them,  or to  consummate  the
transactions  contemplated  hereby or  thereby,  or which might  result,  either
individually or in the aggregate, in any material adverse changes in the assets,
condition,  affairs, or prospects of the Company,  financially or otherwise,  or
any change in the current  equity  ownership of the Company,  nor is the Company
aware that there is any basis for the foregoing. The foregoing includes, without
limitation,  actions,  pending or threatened (or any basis therefor known to the
Company) involving the prior employment of any of the Company's employees, their
use in connection  with the Company's  business of any information or techniques

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allegedly  proprietary to any of their former  employers,  or their  obligations
under any agreements with prior employers. The Company is not a party or subject
to the provisions of any order,  writ,  injunction,  judgment,  or decree of any
court or government agency or instrumentality.

                  2.8 PATENTS AND TRADEMARKS.  The Company has sufficient  title
and  ownership  of  all  patents,   trademarks,   service  marks,  trade  names,
copyrights,  trade secrets,  information,  inventions,  proprietary  rights, and
processes  necessary for its business as now conducted without any conflict with
or  infringement  of the rights of others.  The  Company  has not  received  any
communications  alleging  that the Company has  violated or, by  conducting  its
business  would violate any of the patents,  trademarks,  service  marks,  trade
names,  copyrights,  or trade secrets,  or other proprietary rights of any other
person or entity. The Company is not aware that any of its employees,  officers,
or consultants are obligated under any contract (including licenses,  covenants,
or  commitments of any nature) or other  agreement,  or subject to any judgment,
decree,  or order of any court or  administrative  agency,  that would interfere
with  the  use of  such  employee's,  officer's,  or  consultant's  commercially
reasonable  efforts  to  promote  the  interests  of the  Company  or that would
conflict  with the Company's  business as  conducted.  Neither the execution nor
delivery of the  Transaction  Documents,  nor the  carrying on of the  Company's
business by the  employees  of the  Company,  nor the  conduct of the  Company's
business, will, to the Company's knowledge,  conflict with or result in a breach
of the terms,  conditions,  or provisions of, or constitute a default under, any
contract, covenant, or instrument under which any of such employees, officers or
consultants are now obligated.

                  2.9 COMPLIANCE WITH OTHER  INSTRUMENTS.  The Company is not in
violation  or default of any  provisions  of its  Articles of  Incorporation  or
Bylaws or, to its knowledge, of any instrument,  judgment,  order, writ, decree,
mortgage,  indenture,  lease,  license or  contract to which it is a party or by
which it is bound or, to its knowledge,  of any provision of federal,  state, or
local  statute,  rule, or regulation  applicable to the Company.  The execution,
delivery,  and performance of the Transaction  Documents and the consummation of
the transactions  contemplated  thereby will not result in any such violation or
be in  conflict  with or  constitute,  with or without  the  passage of time and
giving  of  notice,  either a  default  under  any such  provision,  instrument,
judgment,  order,  writ,  decree or contract,  or an event which  results in the
creation of any lien,  charge,  or encumbrance upon any assets of the Company or
the  suspension,  revocation,  impairment,  forfeiture,  or  nonrenewal  of  any
material permit, license,  authorization, or approval applicable to the Company,
its business or operations, or any of its assets or properties.

                  2.10  PERMITS.   The  Company  has  all  material  franchises,
permits,  licenses,  and any similar authority  necessary for the conduct of its
business as now being  conducted by it, the lack of which could  materially  and
adversely affect the business, properties,  prospects, or financial condition of
the Company and believes it can obtain,  without  undue  burden or expense,  any
similar  authority  for the conduct of its business as planned to be  conducted.
The  Company  is not in  default  in any  material  respect  under  any of  such
franchises, permits, licenses, or other similar authority.

<PAGE>

                  2.11  COMPLIANCE  WITH LAWS.  The  conduct of  business by the
Company and each  Subsidiary  as  presently  and proposed to be conducted is not
subject to continuing oversight,  supervision,  regulation or examination by any
governmental  official  or body of the United  States or any other  jurisdiction
wherein the  Company or any  Subsidiary  conducts  or  proposes to conduct  such
business,  except such  regulation as is  applicable  to commercial  enterprises
generally.  Neither the Company nor any of the  Subsidiaries  has  received  any
notice of any violation of or noncompliance  with, any Federal,  state, local or
foreign laws, ordinances, regulations and orders (including, without limitation,
those  relating to  environmental  protection,  occupational  safety and health,
Federal  securities  laws, equal employment  opportunity,  consumer  protection,
credit  reporting,  "truth-in-lending",  and  warranties  and  trade  practices)
applicable to its business or to the business of any  Subsidiary,  the violation
of, or  noncompliance  with,  which would have a  materially  adverse  effect on
either the Company's business or operations, or that of any Subsidiary,  and the
Company knows of no facts or set of circumstances  which would give rise to such
a notice.

                  2.12 DISCLOSURE. This Agreement, the Note, the Warrant and any
other  statements or  certificates  made or delivered in connection  herewith or
therewith  do not contain any untrue  statement  of a material  fact or omits to
state a material  fact  necessary to make the  statements  herein or therein not
misleading.

                  2.13  TITLE TO  PROPERTY  AND  ASSETS.  The  Company  owns its
property  and assets free and clear of all  mortgages,  liens,  loans,  pledges,
security interests,  claims,  equitable  interests,  charges,  and encumbrances,
except  such  encumbrances  and  liens  which  arise in the  ordinary  course of
business and do not  materially  impair the  Company's  ownership or use of such
property  or assets.  With  respect to the  property  and assets it leases,  the
Company is in compliance  with such leases and, to its knowledge,  holds a valid
leasehold interest free of any liens, claims, or encumbrances.

                  2.14 TAX RETURNS,  PAYMENTS,  AND  ELECTIONS.  The Company has
timely  filed all tax  returns  and  reports as  required  by law,  and all such
returns and reports are true and correct in all material  respects.  The Company
has paid all taxes and other  assessments due, if any, except those contested by
it in good faith which are listed in the Schedule of  Exceptions.  The provision
for taxes of the Company as shown in the  Financial  Statements  is adequate for
taxes  due or  accrued  as of the date  thereof.  The  Company  has not  elected
pursuant  to the  Internal  Revenue  Code of 1986,  as amended  ("Code"),  to be
treated as a Subchapter S corporation or a collapsible  corporation  pursuant to
Section 341(f) or Section 1362(a) of the Code.

                  2.15 INSURANCE.  The Company has in full force and effect fire
and casualty insurance  policies,  with extended coverage,  sufficient in amount
(subject to reasonable deductibles) to allow it to replace any of its properties
that might be damaged or destroyed,  and the Company has insurance against other
hazards, risks, and liabilities to persons and property to the extent and in the
manner customary for companies in similar businesses similarly situated.

                  2.16 SEC REPORTS;  FINANCIAL STATEMENTS. The Company has filed
all  reports  required  to be filed  by it under  the  Exchange  Act,  including
pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date
hereof (or such  shorter  period as the Company was required by law to file such
material) (the foregoing materials being collectively  referred to herein as the

<PAGE>

"SEC  Reports" and,  together with the Schedule of Exceptions to this  Agreement
the "Disclosure  Materials") on a timely basis or has received a valid extension
of such  time of  filing  and has  filed  any  such  SEC  Reports  prior  to the
expiration of any such extension.  As of their respective dates, the SEC Reports
complied in all material  respects with the  requirements  of the Securities Act
and the Exchange Act and the rules and regulations of the Commission promulgated
thereunder,  and none of the SEC  Reports,  when  filed,  contained  any  untrue
statement of a material  fact or omitted to state a material fact required to be
stated therein or necessary in order to make the statements therein, in light of
the  circumstances  under which they were made,  not  misleading.  All  material
agreements to which the Company is a party or to which the property or assets of
the Company  are  subject  have been filed as exhibits to the SEC Reports to the
extent  required.  The financial  statements of the Company  included in the SEC
Reports comply in all material respects with applicable accounting  requirements
and the rules and  regulations  of the  Commission  with  respect  thereto as in
effect at the time of filing.  Such financial  statements  have been prepared in
accordance with generally accepted accounting principles applied on a consistent
basis during the periods involved ("GAAP"), except as may be otherwise specified
in such  financial  statements or the notes  thereto,  and fairly present in all
material  respects the  financial  position of the Company and its  consolidated
subsidiaries  as of and for the dates thereof and the results of operations  and
cash  flows  for the  periods  then  ended,  subject,  in the case of  unaudited
statements,  to normal,  immaterial,  year-end audit adjustments.  Except as set
forth on EXHIBIT A or except as specifically disclosed in the SEC Reports, since
______ (a) there has been no event,  occurrence or  development  that has had or
that  could  reasonably  be  expected  to have or result in a  Material  Adverse
Effect,  (b) the  Company  has  not  incurred  any  liabilities  (contingent  or
otherwise)  other  than (x)  liabilities  incurred  in the  ordinary  course  of
business  consistent  with past practice and (y)  liabilities not required to be
reflected in the Company's financial  statements pursuant to GAAP or required to
be  disclosed  in filings  made with the  Commission,  (c) the  Company  has not
altered its method of  accounting  or the  identity of its  auditors and (d) the
Company has not  declared or made any payment or  distribution  of cash or other
property to its  stockholders or officers or directors (other than in compliance
with  existing  Company stock or stock option plans) with respect to its capital
stock, or purchased, redeemed (or made any agreements to purchase or redeem) any
shares  of  its  capital  stock.   Additionally,   since  the  adoption  of  the
Sarbanes-Oxley  Act of 2002 (the "New Act"),  the  Company  has  complied in all
material respects with the laws, rules and regulation under the New Act.

                  2.17 NO CONFLICT OF  INTEREST.  The Company is not indebted in
excess of $5,000, directly or indirectly,  to any of its employees,  officers or
directors or to their respective  spouses or children,  in any amount whatsoever
other than in connection  with expenses or advances of expenses  incurred in the
ordinary  course of business or relocation  expenses of employees,  officers and
directors,  nor is the Company contemplating such indebtedness as of the date of
this Agreement. To the Company's knowledge, none of said employees,  officers or
directors,  or any member of their immediate families, is directly or indirectly
indebted  to the  Company  (other  than  in  connection  with  purchases  of the
Company's stock) or have any direct or indirect  ownership  interest in any firm
or  corporation  with which the Company is  affiliated or with which the Company
has a business  relationship or any firm or corporation  which competes with the
Company,  nor is the Company  contemplating  such indebtedness as of the date of
this Agreement, except that employees,  officers,  directors and/or shareholders
of the Company may own stock in publicly  traded  companies (not in excess of 1%

<PAGE>

of the outstanding capital stock thereof) which may compete with the Company. To
the Company's knowledge, no employee,  shareholder,  officer or director, or any
member of their immediate  families,  is, directly or indirectly,  interested in
any material  contract with the Company,  nor does any such person own, directly
or indirectly, in whole or in part, any material tangible or intangible property
that the Company uses or contemplates using in the conduct of its business.  The
Company  is not a  guarantor  or  indemnitor  of any  indebtedness  of any other
Person.

         3. REPRESENTATIONS AND WARRANTIES OF THE INVESTOR.  The Investor hereby
represents and warrants that:

                  3.1 AUTHORIZATION.  The Transaction Documents constitute valid
and legally binding  obligations of the Investor  enforceable in accordance with
their  terms,  except  (i) as  limited  by  applicable  bankruptcy,  insolvency,
reorganization,  moratorium,  and other  laws of general  application  affecting
enforcement of creditors'  rights generally and (ii) as limited by laws relating
to the  availability  of  specific  performance,  injunctive  relief,  or  other
equitable remedies.

                  3.2  PURCHASE  ENTIRELY  FOR OWN  ACCOUNT.  The  Note  and the
Warrant to be  purchased by the  Investor  and the Common  Stock  issuable  upon
conversion  of the Note and the  Common  Stock  issuable  upon  exercise  of the
Warrant (collectively, the "Securities") will be acquired for investment for the
Investor's own account and not with a view to the resale or  distribution of any
part thereof.  The Investor  represents  that it has full power and authority to
enter into this Agreement.

                  3.3 DISCLOSURE OF INFORMATION.  The Investor acknowledges that
it has  received  all the  information  that it has  requested  relating  to the
purchase of the Note and the Warrant.  The Investor  further  represents that it
has had an  opportunity  to ask questions  and receive  answers from the Company
regarding the terms and  conditions of the offering of the Note and the Warrant.
The  foregoing,  however,  does not  limit or  modify  the  representations  and
warranties  of the  Company in Section 2 of this  Agreement  or the right of the
Investor to rely thereon.

                  3.4  ACCREDITED  INVESTOR.  The  Investor  is  an  "accredited
investor"  within the meaning of Rule 501 of Regulation D of the  Securities and
Exchange Commission (the "SEC"), as presently in effect.

                  3.5 RESTRICTED SECURITIES.  Investor understands that the Note
and  the  Warrant  that  it  is  purchasing  is   characterized  as  "restricted
securities"  under the federal  securities laws inasmuch as it is being acquired
from the Company in a  transaction  not  involving a public  offering,  and that
under such laws and applicable regulations such securities may be resold without
registration  under the Securities Act of 1933, as amended (the "Act"),  only in
certain limited circumstances.  In this connection, the Investor represents that
it is familiar with SEC Rule 144, as presently in effect,  and  understands  the
resale limitations imposed thereby and by the Act.

<PAGE>

                  3.6 LEGENDS. It is understood that the certificates evidencing
the Note and the Warrant  (and the Common Stock  issuable  upon  conversion  and
exercise thereof, respectively) may bear one or all of the following legends:

                  "THE SECURITIES  REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
                  REGISTERED  UNDER THE  SECURITIES ACT OF 1933, AS AMENDED (THE
                  "ACT"),  AND ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AS
                  SET  FORTH IN THIS  CERTIFICATE.  THE  SECURITIES  REPRESENTED
                  HEREBY MAY NOT BE SOLD, TRANSFERRED,  OR OTHERWISE DISPOSED OF
                  IN THE ABSENCE OF AN EFFECTIVE  REGISTRATION  STATEMENT  UNDER
                  THE ACT OR AN OPINION OF  COUNSEL,  REASONABLY  ACCEPTABLE  TO
                  COUNSEL FOR THE COMPANY, TO THE EFFECT THAT THE PROPOSED SALE,
                  TRANSFER,   OR   DISPOSITION   MAY  BE   EFFECTUATED   WITHOUT
                  REGISTRATION UNDER THE ACT."

         4. CONDITIONS OF THE INVESTOR'S OBLIGATIONS AT CLOSING. The obligations
of the  Investor  under  subsection  1.1(a) of this  Agreement is subject to the
fulfillment on or before the Closing of each of the following conditions:

                  4.1  REPRESENTATIONS  AND WARRANTIES.  The representations and
warranties of the Company  contained in Section 2 hereof shall be true on and as
of the  Closing  with  the  same  effect  as  though  such  representations  and
warranties had been made on and as of the date of such Closing.

                  4.2 PERFORMANCE. The Company shall have performed and complied
with all  agreements,  obligations,  and conditions  contained in this Agreement
that are  required  to be  performed  or  complied  with by it on or before  the
Closing.

                  4.3 COMPLIANCE CERTIFICATE. The President of the Company shall
deliver to the  Investor,  at the Closing,  a  certificate  certifying  that the
conditions  specified  in Sections 4.1 and 4.2 have been  fulfilled  and stating
that  there has been no  adverse  change in the  business,  affairs,  prospects,
operations, properties, assets, or condition of the Company since ________.

                  4.4  PROCEEDINGS  AND  DOCUMENTS.   All  corporate  and  other
proceedings in connection with the transactions  contemplated at the Closing and
all documents  incident  thereto shall be  reasonably  satisfactory  in form and
substance to the Investor and its counsel, and they shall have received all such
counterpart original and certified or other copies of such documents as they may
reasonably request.

                  4.5  OPINION  OF  COMPANY  COUNSEL.  The  Investor  shall have
received  from The Law Office of Gary C.  Wykidal,  an opinion,  dated as of the
Closing, in form attached hereto as EXHIBIT D.

<PAGE>

                  4.6  GOOD   STANDING   CERTIFICATES.   The   Company  and  the
Subsidiaries  shall have  delivered to the  Investor,  dated as of a date within
five  (5)  business  days of the  Closing,  certificates  issued  by the  proper
authorities in each of their  respective  jurisdictions  of  organization to the
effect that each of them is legally existing and in good standing.

                  4.7 SECRETARY'S CERTIFICATE.  The Company shall have delivered
to the Investor a certificate  executed by the Secretary of the Company dated as
of the Closing certifying the following matters:  (a) the resolutions adopted by
the Company's Board of Directors and  shareholders  relating to the transactions
contemplated by this Agreement;  (b) the Articles of Incorporation and Bylaws of
the Company;  and (c) such other  matters as Investor's  counsel may  reasonably
request.

                  4.8  DELIVERY  OF NOTE AND  WARRANT.  The  Company  shall have
delivered the Note and the Warrant to the Investor, as specified in Section 1.

                  4.9 ANCILLARY  AGREEMENTS.  The Company and the Investor shall
have entered into a registration rights agreement dated of even date herewith, a
form of  which  is  attached  hereto  as  EXHIBIT  E (the  "Registration  Rights
Agreement").

         5. CONDITIONS OF THE COMPANY'S  OBLIGATIONS AT CLOSING. The obligations
of  the  Company  to  the  Investor  under  this  Agreement  is  subject  to the
fulfillment on or before any Closing of each of the following  conditions by the
Investor:

                  5.1  REPRESENTATIONS  AND WARRANTIES.  The representations and
warranties  of the  Investor  contained  in Section 3 shall be true on and as of
such Closing with the same effect as though such  representations and warranties
had been made on and as of such Closing.

                  5.2  PAYMENT  OF  PURCHASE  PRICE.  The  Investor  shall  have
delivered the purchase price specified in Section 1.2.

                  5.3 ANCILLARY  AGREEMENTS.  The Company and the Investor shall
have entered into the Registration Rights Agreement.

         6.       MISCELLANEOUS.

                  6.1 SURVIVAL OF WARRANTIES.  The warranties,  representations,
and  covenants of the Company and the Investor  contained in or made pursuant to
this  Agreement  shall survive the execution and delivery of this  Agreement and
the Closing and shall in no way be affected by any  investigation of the subject
matter thereof made by or on behalf of the Investor or the Company.

                  6.2 SUCCESSORS AND ASSIGNS. This Agreement is personal to each
of the parties and may not be assigned  without the written consent of the other
parties;  PROVIDED,  HOWEVER,  that any of the  Investor  shall be  permitted to
assign its rights  under this  Agreement  and the  Ancillary  Agreements  to any
affiliate of such Purchaser.

                  6.3  GOVERNING  LAW. This  Agreement  shall be governed by and
construed under the laws of the State of New York as applied to agreements among
New York residents  entered into and to be performed  entirely  within New York.

<PAGE>

The Company (1) agrees that any legal suit, action or proceeding  arising out of
or relating to this Agreement shall be instituted  exclusively in New York State
Supreme  Court,  County of New York, or in the United States  District Court for
the Southern  District of New York,  (2) waives any objection  which the Company
may have now or hereafter to the venue of any such suit,  action or  proceeding,
and (3) irrevocably  consents to the  jurisdiction of the New York State Supreme
Court, County of New York, and the United States District Court for the Southern
District of New York in any such suit, action or proceeding. The Company further
agrees to accept and  acknowledge  service of any and all  process  which may be
served in any such suit,  action or  proceeding  in the New York  State  Supreme
Court,  County of New  York,  or in the  United  States  District  Court for the
Southern  District  of New York and agrees  that  service  of  process  upon the
Company  mailed by certified  mail to the  Company's  address shall be deemed in
every respect effective  service of process upon the Company,  in any such suit,
action or proceeding.  THE PARTIES HERETO AGREE TO WAIVE THEIR RESPECTIVE RIGHTS
TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION  BASED  UPON OR  ARISING  OUT OF
THIS AGREEMENT OR ANY DOCUMENT OR AGREEMENT CONTEMPLATED HEREBY.

                  6.4  COUNTERPARTS.  This  Agreement  may be executed in two or
more counterparts,  each of which shall be deemed an original,  but all of which
together shall  constitute one and the same  instrument.  This  Agreement,  once
executed by a party,  may be  delivered  to the other party  hereto by facsimile
transmission  of a copy of this Agreement  bearing the signature of the party so
delivering this Agreement.

                  6.5 TITLES AND  SUBTITLES.  The titles and  subtitles  used in
this  Agreement  are used for  convenience  only and are not to be considered in
construing or interpreting this Agreement.

                  6.6   NOTICES.   Unless   otherwise   provided,   any  notice,
authorization,  request or demand  required or  permitted to be given under this
Agreement shall be given in writing and shall be deemed  effectively  given upon
personal  delivery  to the  party to be  notified  or three  (3) days  following
deposit with the United States Post Office,  by  registered  or certified  mail,
postage prepaid,  or two days after it is sent by an overnight delivery service,
or when sent by facsimile  with machine  confirmation  of delivery  addressed as
follows:

                  If to the Investor to:

                  Ocean Drive SF Associates, LLC
                  444 Madison Ave, 18th Floor
                  New York, NY 10022
                  Telecopier No.:  (212) 202-4022
                  Attention:  Daniel Myers

                  With a copy to:

                  Littman & Krooks LLP
                  655 Third Avenue
                  New York, NY 10017
                  Telecopier No.: (212) 490-2990
                  Attention:  Mitchell C. Littman, Esq.

<PAGE>

                  If to Company, to:

                  Skyframes, Inc.
                  555 Anton Boulevard, Suite 1200
                  Costa Mesa, CA 92626
                  Telecopier No.:
                  Attention:  James W. France

                  With a copy to:

                  The Law Office of Gary C. Wykidal
                  245 Fischer Avenue, Suite A1
                  Costa Mesa, CA 9262
                  Telecopier No.: (714) 751-5428
                  Attention: Gary Wykidal, Esq.

Any party may  change  its  address  for such  communications  by giving  notice
thereof to the other parties in conformity with this Section.

                  6.7 FINDER'S FEE. Each party represents that it neither is nor
will be obligated  for any finders' or brokers' fee or  commission in connection
with this transaction.

                  6.8  EXPENSES.  If any action at law or in equity is necessary
to enforce or interpret the terms of the  Transaction  Documents the  prevailing
party shall be entitled to  reasonable  attorney's  fees,  costs,  and necessary
disbursements  in  addition  to any  other  relief  to which  such  party may be
entitled.

                  6.9 AMENDMENTS AND WAIVERS.  Any term of this Agreement may be
amended and the  observance of any term of this  Agreement may be waived (either
generally   or  in  a   particular   instance   and  either   retroactively   or
prospectively),  only with the written  consent of the Company and the Investor.
Any amendment or waiver  effected in  accordance  with this  paragraph  shall be
binding upon each holder of any securities purchased under this Agreement at the
time   outstanding   (including   securities  into  which  such  securities  are
convertible), each future holder of all such securities, and the Company.

                  6.10 SEVERABILITY. If one or more provisions of this Agreement
are held to be  unenforceable  under  applicable  law, such  provision  shall be
excluded  from  this  Agreement  and the  balance  of this  Agreement  shall  be
interpreted  as if such  provision  were so excluded and shall be enforceable in
accordance with its terms.

                  6.11  ENTIRE  AGREEMENT.  This  Agreement  and  the  documents
referred  to herein  constitute  the entire  agreement  among the parties and no
party  shall be  liable  or  bound  to any  other  party  in any  manner  by any
warranties,  representations,  or  covenants  except as  specifically  set forth
herein or therein.

<PAGE>

         IN WITNESS WHEREOF,  the parties have executed this Agreement as of the
date first above written.

                            SKYFRAMES, INC.

                            By:
                               -----------------------------------------
                            Name: James W. France
                            Title: CEO and President

                            OCEAN DRIVE SF ASSOCIATES, LLC

                            By:
                               --------------------------------
                            Name: Daniel M. Myers
                            Title: Managing DirectorEXHIBIT 10.3

         THE  SECURITIES  REPRESENTED  BY THIS  WARRANT  HAVE BEEN  ACQUIRED FOR
         INVESTMENT  AND HAVE NOT BEEN  REGISTERED  UNDER THE  SECURITIES ACT OF
         1933, AS AMENDED (THE  "SECURITIES  ACT").  THESE SECURITIES MAY NOT BE
         SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION
         THEREFROM UNDER THE SECURITIES ACT OR UNDER STATE SECURITIES LAWS. THIS
         WARRANT MAY NOT BE SOLD, ASSIGNED, TRANSFERRED OR OTHERWISE DISPOSED OF
         EXCEPT PURSUANT TO THE EXPRESS PROVISIONS OF THIS WARRANT, AND NO SALE,
         ASSIGNMENT,  TRANSFER,  OR OTHER  DISPOSITION  OF THIS WARRANT SHALL BE
         VALID OR  EFFECTIVE  UNLESS AND UNTIL SUCH  PROVISIONS  SHALL HAVE BEEN
         COMPLIED WITH.

                                                Date of Issuance: August 5, 2003
                                 SKYFRAMES, INC.
                             Stock Purchase Warrant
                           (Void after August 5, 2008)

         Skyframes, Inc, a Utah corporation (the "Company"), for value received,
hereby certifies and agrees that Ocean Drive SF Associates LLC or its registered
assigns (the "Registered Holder"),  is entitled,  subject to the terms set forth
below,  to  purchase  from the  Company,  at any time or from time to time on or
after the date hereof (the "Date of Issuance")  and on or before the fifth (5th)
anniversary  of the Date of Issuance  at not later than 5:00 p.m.  New York time
(such date and time, the "Expiration Time"), TWO HUNDERD THOUSAND (200,000) duly
authorized, validly issued, fully paid and nonassessable shares of the Company's
common  stock,  $0.001  par value per share (the  "Common  Stock") at an initial
exercise  price equal to $1.15 per share such price will  represent  105% of the
average  trading  price for 5 days prior to closing,  subject to  adjustment  in
certain cases as described herein.  The shares purchasable upon exercise of this
Warrant,  and the purchase price per share,  are hereinafter  referred to as the
"Warrant Shares" and the "Exercise Price,"  respectively.  The term "Warrant" as
used herein  shall  include  this  Warrant and any other  warrants  delivered in
substitution or exchange therefor, as provided herein.

         This  Warrant is issued  pursuant to that certain  Securities  Purchase
Agreement by and between the Company and Ocean Drive SF Associates,  LLC of even
date herewith (the "Securities Purchase Agreement").

         The Warrant  Shares are  entitled  to the  benefits  of,  that  certain
registration rights agreement between the Company and Ocean Drive SF Associates,
LLC of even date herewith (the "Registration Rights Agreement").

<PAGE>

         1.       EXERCISE.

                  1.1.     METHOD OF EXERCISE

                  (a) This Warrant may be exercised by the Registered Holder, in
whole or in part, by surrendering this Warrant, with a Notice of Exercise in the
form of  ANNEX A  hereto  (the  "Notice  of  Exercise")  duly  executed  by such
Registered Holder or by such Registered  Holder's duly authorized  attorney,  at
the principal  office of the Company set forth on the signature page hereto,  or
at such other  office or agency as the Company  may  designate  in writing  (the
"Company's  Office"),  accompanied  by payment in full,  in lawful  money of the
United States,  of the Exercise Price payable in respect of the number of shares
of Warrant Shares purchased upon such exercise.

                  (b) Each exercise of this Warrant shall be deemed to have been
effected  immediately  prior to the  close of  business  on the day on which the
appropriate  Annex form shall be dated and directed to the Company (as evidenced
by the  applicable  postmark or other  evidence of  transmittal)  as provided in
Section 1(a) hereof.  At such time, the person or persons in whose name or names
any  certificates  for Warrant  Shares shall be issuable  upon such  exercise as
provided  in Section  1(c)  hereof  shall be deemed to have become the holder or
holders of record of the Warrant Shares represented by such certificates.

                  (c)As soon as practicable  after the exercise of this Warrant,
in full or in part,  and in any  event  within  ten (10)  days  thereafter,  the
Company,  at its expense,  will cause to be issued in the name of, and delivered
to, the Registered  Holder,  or as such Registered  Holder (upon payment by such
Registered Holder of any applicable transfer taxes) may direct:

                           (i) a certificate or  certificates  for the number of
full Warrant Shares to which such Registered  Holder shall be entitled upon such
exercise plus, in lieu of any fractional  share to which such Registered  Holder
would otherwise be entitled,  cash in an amount determined pursuant to Section 4
hereof; and

                           (ii) in case such  exercise  is in part  only,  a new
warrant or warrants  (dated the date hereof) of like tenor,  representing in the
aggregate  on the face or faces  thereof  the  number of  Warrant  Shares  equal
(without  giving effect to any adjustment  therein) to the number of such shares
called for on the face of this Warrant minus the number of such shares purchased
by the  Registered  Holder upon such exercise as provided in Section 3 hereof or
received pursuant to Section 1.2 hereof.

                  1.2.  EXERCISE BY  SURRENDER  OF  WARRANT.  In addition to the
method of  payment  set  forth in  Section  1.1 and in lieu of any cash  payment
required thereunder, the Warrant may be exercised by surrendering the Warrant in
the manner specified in this Section 1, together with  irrevocable  instructions
to the  Company to issue in  exchange  for the  Warrant  the number of shares of
Common  Stock equal to the  product of (x) the number of shares of Common  Stock
underlying the Warrants multiplied by (y) a fraction,  the numerator of which is
the Market Value (as defined  below) of the Common Stock less the Exercise Price
and the  denominator of which is such Market Value.  As used herein,  the phrase
"Market  Value" at any date shall be deemed to be the last  reported sale price,

<PAGE>

or, in case no such  reported  sale takes place on such day,  the average of the
last reported sale prices for the last three (3) trading days, in either case as
officially  reported by the principal  securities exchange or "over the counter"
(including  on the pink sheets or bulletin  board)  exchange on which the Common
Stock is listed or admitted to trading, or, if the Common Stock is not listed or
admitted  to  trading  on any  national  securities  exchange  or sold "over the
counter",  the average closing bid price as furnished by the NASD through NASDAQ
or similar organization if NASDAQ is no longer reporting such information, or if
the  Common  Stock is not  quoted on  NASDAQ,  as  determined  in good  faith by
resolution  of  the  Board  of  Directors  of the  Company,  based  on the  best
information available to it.

         2.SHARES TO BE FULLY PAID; RESERVATION OF SHARES. The Company covenants
and agrees that all shares of Common Stock which may be issued upon the exercise
of the rights represented by this Warrant will, upon issuance by the Company, be
validly issued,  fully paid and  nonassessable,  and free from preemptive rights
and free from all taxes,  liens and charges  with respect  thereto.  The Company
further  covenants  and agrees  that,  from and after the Date of  Issuance  and
during the period  within  which the rights  represented  by this Warrant may be
exercised, the Company will at all times have authorized, and reserve, free from
preemptive  rights,  out of its authorized but unissued  shares of Common Stock,
solely for the purpose of effecting the exercise of this  Warrant,  a sufficient
number of shares of Common  Stock to  provide  for the  exercise  of the  rights
represented by this Warrant.

         3.FRACTIONAL  SHARES.  The  Company  shall  not be  required  upon  the
exercise  of this  Warrant  to issue any  fractional  shares,  but shall make an
adjustment therefor in cash on the basis of the Market Value for each fractional
share of the  Company's  Common Stock which would be issuable  upon  exercise of
this Warrant.

         4. REQUIREMENTS FOR TRANSFER.

                  (a) WARRANT  REGISTER.  The Company  will  maintain a register
(the "Warrant  Register")  containing  the names and addresses of the Registered
Holder or  Registered  Holders.  Any  Registered  Holder of this  Warrant or any
portion  thereof  may change its  address as shown on the  Warrant  Register  by
written  notice to the Company  requesting  such change,  and the Company  shall
promptly  make such  change.  Until this Warrant is  transferred  on the Warrant
Register of the Company, the Company may treat the Registered Holder as shown on
the Warrant  Register as the absolute  owner of this  Warrant for all  purposes,
notwithstanding any notice to the contrary,  provided, however, that if and when
this  Warrant is properly  assigned in blank,  the Company may, but shall not be
obligated  to,  treat the bearer  hereof as the  absolute  owner  hereof for all
purposes, notwithstanding any notice to the contrary.

                  (b) WARRANT  AGENT.  The Company may, by written notice to the
Registered  Holder,  appoint an agent for the purpose of maintaining the Warrant
Register  referred to in Section 4(a) hereof,  issuing the Common Stock issuable
upon the exercise of this  Warrant,  exchanging  this  Warrant,  replacing  this
Warrant  or any or all of the  foregoing.  Thereafter,  any  such  registration,
issuance,  exchange,  or  replacement,  as the case  may be,  may be made at the
office of such agent.

<PAGE>

                  (c)  TRANSFER.  Subject to the  provisions  of this Section 4,
this Warrant and all rights  hereunder  are  transferable,  in whole or in part,
upon the surrender of this Warrant with a properly  executed  Assignment Form in
substantially  the form  attached  hereto as ANNEX B (the  "Assignment")  at the
principal office of the Company.

                  (d) EXCHANGE OF WARRANT UPON A TRANSFER.  On surrender of this
Warrant for exchange,  properly  endorsed on the  Assignment  and subject to the
provisions of this Warrant and with the limitations on assignments and transfers
as contained in this Section 4, the Company at its expense  shall issue to or on
the order of the Registered  Holder a new warrant or warrants of like tenor,  in
the name of the Registered Holder or as the Registered Holder (on payment by the
Registered Holder of any applicable  transfer taxes) may direct,  for the number
of shares issuable upon exercise hereof.

         5. ADJUSTMENT.

                  (a)  COMPUTATION  OF  ADJUSTED   EXERCISE  PRICE.   Except  as
hereinafter  provided,  in case the  Company  shall at any time  after  the date
hereof issue or sell any shares of its Stock (as defined in Section 5(g)), other
than  the  issuances  or  sales  referred  to  in  Section  5(h)  hereof,  for a
consideration per share less than the Exercise Price in effect immediately prior
to the issuance or sale of such shares, or without consideration, then forthwith
upon such  issuance or sale,  the  Exercise  Price  shall  (until  another  such
issuance or sale) be reduced to the price  (calculated to the nearest full cent)
equal to the quotient  derived by dividing (A) an amount equal to the sum of (X)
the  product  of (a) the  Exercise  Price in  effect  immediately  prior to such
issuance  or  sale,  multiplied  by (b) the  total  number  of  shares  of Stock
outstanding  immediately  prior to such issuance or sale, plus (Y) the aggregate
of the amount of all  consideration,  if any,  received by the Company upon such
issuance  or sale,  by (B) the  total  number  of  shares  of Stock  outstanding
immediately  after such issuance or sale;  provided,  however,  that in no event
shall the Exercise Price be adjusted  pursuant to this  computation to an amount
in excess of the Exercise Price in effect immediately prior to such computation,
except in the case of a combination of outstanding  shares of Stock, as provided
by Section 5(c) hereof.

         For the purposes of this Section 5 the term  Exercise  Price shall mean
the  Exercise  Price per share set forth on the first page of this  Warrant,  as
adjusted from time to time pursuant to the provisions of this Section 5.

                  (i) For purposes of any  computation  to be made in accordance
with this Section 5(a), the following provisions shall be applicable:

                  (ii) In case of the  issuance or sale of shares of Stock for a
consideration  part or all of  which  shall  be  cash,  the  amount  of the cash
consideration,  shall be deemed to be the amount of cash received by the Company
for such  shares  (or,  if  shares  of Stock  are  offered  by the  Company  for
subscription,  the subscription price, or, if either of such securities shall be
sold to  underwriters  or dealers  for public  offering  without a  subscription
price, the public offering price,  before  deducting  therefrom any compensation
paid or  discount  allowed  in the sale,  underwriting  or  purchase  thereof by
underwriters  or  dealers  or  other  persons  or  entities  performing  similar
services), or any expenses incurred in connection therewith and less any amounts
payable  to  security  holders  or any  affiliate  thereof,  including,  without
limitation, any employment agreement,  royalty,  consulting agreement,  covenant
not to compete,  earnout or  contingent  payment  right or similar  arrangement,
agreement or understanding,  whether oral or written;  all such amounts shall be
valued at the  aggregate  amount  payable  thereunder  whether such payments are
absolute or contingent and irrespective of the period or uncertainty of payment,
the rate of interest, if any, or the contingent nature thereof.

<PAGE>

                  (iii) In case of the  issuance  or sale  (otherwise  than as a
dividend or other  distribution  on any stock of the Company) of shares of Stock
for a consideration part or all of which shall be other than cash, the amount of
the  consideration  therefor  other than cash shall be deemed to be the value of
such  consideration as determined in good faith by the Board of Directors of the
Company.

                  (iv)  Shares of Stock  issuable  by way of  dividend  or other
distribution  on any capital  stock of the Company  shall be deemed to have been
issued immediately after the opening of business on the day following the record
date for the determination of stockholders  entitled to receive such dividend or
other   distribution   and  shall  be  deemed  to  have  been   issued   without
consideration.

                  (vi) The  reclassification  of securities of the Company other
than shares of Stock into securities  including  shares of Stock shall be deemed
to involve the  issuance of such  shares of Stock for  consideration  other than
cash  immediately  prior to the  close of  business  on the date  fixed  for the
determination of security holders entitled to receive such shares, and the value
of the  consideration  allocable to such shares of Stock shall be  determined as
provided in Section 5(v).

                  (vii)  The   number  of  shares  of  Stock  at  any  one  time
outstanding  shall  include the  aggregate  number of shares  issued or issuable
(subject to readjustment  upon the actual issuance thereof) upon the exercise of
then outstanding  options,  rights,  warrants,  and convertible and exchangeable
securities.

         (b)  OPTIONS,   RIGHTS,   WARRANTS  AND  CONVERTIBLE  AND  EXCHANGEABLE
SECURITIES.

                  (i) In case  the  Company  shall at any  time  after  the date
hereof issue  options,  rights or warrants to subscribe for shares of Stock,  or
issue any securities convertible into or exchangeable for shares of Stock, for a
consideration  per share  less than the  Exercise  Price in effect or the Market
Value  immediately  prior to the issuance of such options,  rights,  warrants or
such  convertible or  exchangeable  securities,  or without  consideration,  the
Exercise  Price in effect  immediately  prior to the  issuance of such  options,
rights, warrants or such convertible or exchangeable securities, as the case may
be, shall be reduced to a price determined by making a computation in accordance
with the provisions of Section 5(a) hereof, provided that:

                  (ii) The aggregate  maximum number of shares of Stock,  as the
case may be, issuable under such options,  rights or warrants shall be deemed to
be issued and  outstanding  at the time such  options,  rights or warrants  were
issued,  for a  consideration  equal to the  minimum  purchase  price  per share
provided for in such options,  rights or warrants at the time of issuance,  plus
the  consideration  (determined in the same manner as consideration  received on
the issue or sale of shares in  accordance  with the terms of the  Warrant),  if
any, received by the Company for such options, rights or warrants. The aggregate
maximum  number of shares of Stock  issuable upon  conversion or exchange of any
convertible  or  exchangeable  securities  shall  be  deemed  to be  issued  and
outstanding at the time of issuance of such securities,  and for a consideration
equal to the  consideration  (determined  in the same  manner  as  consideration
received on the issue or sale of shares of Stock in accordance with the terms of

<PAGE>

the  Warrant)  received  by the Company  for such  securities,  plus the minimum
consideration, if any, receivable by the Company upon the conversion or exchange
thereof. If any change shall occur in the price per share provided for in any of
the options,  rights or warrants referred to in subsection,  or in the price per
share at which the securities  referred to in this subsection are  exchangeable,
such options,  rights or warrants or exchange rights,  as the case may be, shall
be deemed to have  expired  or  terminated  on the date when such  price  change
became  effective in respect to shares not  theretofore  issued  pursuant to the
exercise or  exchange  thereof,  and the Company  shall be deemed to have issued
upon such date new options, rights or warrants or exchangeable securities at the
new price in respect of the number of shares  issuable upon the exercise of such
options,  rights or warrants or the conversion or exchange of such  exchangeable
securities.

         (c) SUBDIVISION AND COMBINATION.  If the Company at any time subdivides
(by  any  stock  split,   stock  dividend,   recapitalization,   reorganization,
reclassification  or  otherwise)  the  shares of Stock  subject  to  acquisition
hereunder  into a greater number of shares,  then,  after the date of record for
effecting such  subdivision,  the Exercise Price in effect  immediately prior to
such  subdivision  will be  proportionately  reduced and the number of shares of
Common  Stock  subject to  acquisition  upon  exercise of this  Warrant  will be
proportionately increased. If the Company at any time combines (by reverse stock
split,  recapitalization,  reorganization,  reclassification  or otherwise)  the
shares of Stock  subject  to  acquisition  hereunder  into a  smaller  number of
shares,  then,  after the date of record for  effecting  such  combination,  the
Exercise  Price  in  effect  immediately  prior  to  such  combination  will  be
proportionately  increased  and the number of shares of Common Stock  subject to
acquisition upon exercise of this Warrant will be proportionately decreased.

         (d)MERGER OR CONSOLIDATION. In case of any consolidation of the Company
with,  or merger of the Company  into any other  corporation,  or in case of any
sale or  conveyance  of all or  substantially  all of the assets of the  Company
other than in  connection  with a plan of complete  liquidation  of the Company,
then  as a  condition  of such  consolidation,  merger  or  sale or  conveyance,
adequate  provision  will be made  whereby the  Registered  Holder will have the
right to acquire and receive upon exercise of this Warrant in lieu of the shares
of Common Stock immediately theretofore subject to acquisition upon the exercise
of this Warrant, such shares of stock,  securities or assets as may be issued or
payable  with respect to or in exchange for the number of shares of Common Stock
immediately  theretofore  subject to acquisition and receivable upon exercise of
this  Warrant had such  consolidation,  merger or sale or  conveyance  not taken
place. In any such case, the Company will make  appropriate  provision to insure
that the  provisions  of this Section 5 hereof will  thereafter be applicable as
nearly as may be in  relation  to any shares of stock or  securities  thereafter
deliverable upon the exercise of this Warrant. 12. (e)NOTICE OF ADJUSTMENT. Upon
the occurrence of any event which requires any adjustment of the Exercise Price,
then  and in each  such  case the  Company  shall  give  notice  thereof  to the
Registered  Holder,  which notice shall state the Exercise Price  resulting from
such  adjustment and the increase or decrease,  if any, in the number of Warrant
Shares  purchasable  at such price upon  exercise,  setting  forth in reasonable
detail the method of  calculation  and the facts upon which such  calculation is
based.

         (f)ADJUSTMENT  IN NUMBER OF  SECURITIES.  Upon each  adjustment  of the
Exercise  Price  pursuant  to the  provisions  of this  Section 5, the number of

<PAGE>

securities  issuable  upon the exercise of each Warrant shall be adjusted to the
nearest  full amount by  multiplying  a number  equal to the  Exercise  Price in
effect  immediately  prior to such  adjustment  by the number of Warrant  Shares
issuable upon exercise of the Warrants  immediately prior to such adjustment and
dividing the product so obtained by the adjusted Exercise Price.

         (g) DEFINITION OF STOCK.  For the purpose of this  Agreement,  the term
"Stock"  shall  mean (i) the class of stock  designated  as Common  Stock in the
Certificate  of  Incorporation  of the  Company as may be amended as of the date
hereof,  or (ii) any other class of stock resulting from  successive  changes or
reclassifications  of such Stock  consisting  solely of changes in par value, or
from par value to no par value, or from no par value to par value.

         (h) NO ADJUSTMENT OF EXERCISE PRICE IN CERTAIN CASES.  No adjustment of
the Exercise Price shall be made:

                  (i) Upon  issuance or sale of this Warrant or Warrant  Shares,
or the other Warrants and Warrant Shares issued in connection herewith, or other
options,  warrants and convertible  securities outstanding as of the date hereof
into or for shares of Common Stock.

                  (ii) Upon the issuance or sale of any shares of capital stock,
or the grant of options exercisable therefor,  issued or issuable after the date
of this Warrant, to directors,  officers, employees, advisers and consultants of
the Company or any subsidiary  pursuant to any incentive or non-qualified  stock
option plan or agreement,  stock purchase plan or agreement,  stock  restriction
agreement  or  restricted  stock plan,  employee  stock  ownership  plan (ESOP),
consulting  agreement,  stock appreciation right (SAR), stock depreciation right
(SDR),  bonus stock  arrangement,  or such other similar  compensatory  options,
issuances, arrangements, agreements or plans approved by the Board of Directors.

                  (iii) If the amount of said adjustment  shall be less than two
cents ($0.02) per security  issuable  upon  exercise of this Warrant,  provided,
however,  that in such case any adjustment that would otherwise be required then
to be made  shall  be  carried  forward  and  shall  be made at the  time of and
together with the next subsequent adjustment which, together with any adjustment
so carried  forward,  shall  amount to at least two cents  ($0.02) per  security
issuable upon exercise of this Warrant.

         6. NO IMPAIRMENT.  The Company will not, by amendment of its charter or
through reorganization,  consolidation,  merger, dissolution,  sale of assets or
any other voluntary action, avoid or seek to avoid the observance or performance
of any of the terms of this  Warrant  but will at all  times  carry out all such
terms and take all such action as may be reasonably  necessary or appropriate in
order to protect the rights of the holder of this Warrant against impairment.

         7. LIQUIDATING DIVIDENDS AND OTHER DISTRIBUTIONS. If the Company pays a
dividend or makes a distribution  on the Common Stock payable  otherwise than in
cash out of earnings or earned surplus  (determined in accordance with generally
accepted accounting principles) except for a stock dividend payable in shares of
Common  Stock  (a  "Liquidating  Dividend")  or  otherwise  distributes  to  its
stockholders  any  assets,   properties,   rights,   evidence  of  indebtedness,

<PAGE>

securities  whether  issued by the Company or by another,  or any other thing of
value,  then the Company will pay or distribute to the Registered Holder of this
Warrant,  upon the exercise hereof,  in addition to the Warrant Shares purchased
upon such  exercise,  either (i) the  Liquidating  Dividend that would have been
paid to such  Registered  Holder  if he had been the  owner  of  record  of such
Warrant Shares immediately prior to the date on which a record is taken for such
Liquidating  Dividend or, if no record is taken, the date as of which the record
holders of Common Stock  entitled to such  dividends or  distribution  are to be
determined or (ii) the same property, assets, rights, evidences of indebtedness,
securities  or any other thing of value that the  Registered  Holder  would have
been entitled to receive at the time of such  distribution as if the Warrant had
been exercised immediately prior to such distribution.

         8. NOTICES OF RECORD DATE, ETC. In case:

                  (a) the  Company  shall  take a record of the  holders  of its
Common  Stock (or other stock or  securities  at the time  deliverable  upon the
exercise of this  Warrant)  for the  purpose of  entitling  or enabling  them to
receive any dividend or other distribution, or to receive any right to subscribe
for or purchase any shares of stock of any class or any other securities,  or to
receive any other right; or of any capital  reorganization  of the Company,  any
reclassification  of the capital  stock of the  Company,  any  consolidation  or
merger  of  the  Company  with  or  into  another   corporation  (other  than  a
consolidation  or merger in which the Company is the surviving  entity),  or any
transfer of all or  substantially  all of the assets of the  Company;  or of the
voluntary or involuntary dissolution,  liquidation or winding-up of the Company,
then,  and in each such case, the Company will mail or cause to be mailed to the
Registered Holder of this Warrant a notice  specifying,  as the case may be, (i)
the date on which a record  is to be taken  for the  purpose  of such  dividend,
distribution  or right,  and stating the amount and character of such  dividend,
distribution or right, or (ii) the effective date on which such  reorganization,
reclassification,  consolidation,  merger, transfer, dissolution, liquidation or
winding-up is to take place,  and the time,  if any is to be fixed,  as of which
the holders of record of Common Stock (or such other stock or  securities at the
time  deliverable  upon the  exercise  of this  Warrant)  shall be  entitled  to
exchange  their shares of Common Stock (or such other stock or  securities)  for
securities   or   other   property   deliverable   upon   such   reorganization,
reclassification,  consolidation,  merger, transfer, dissolution, liquidation or
winding-up.  Such  notice  shall be mailed  at least ten (10) days  prior to the
record date or effective date for the event specified in such notice unless such
prior notice is waived by the Registered Holder.

         9. NO  RIGHTS  OF  STOCKHOLDERS.  Subject  to  other  Sections  of this
Warrant,  the  Registered  Holder  shall not be  entitled  to vote,  to  receive
dividends  or  subscription  rights,  nor  shall  anything  contained  herein be
construed to confer upon the Registered  Holder, as such, any of the rights of a
stockholder of the Company,  including without  limitation any right to vote for
the election of directors or upon any matter submitted to stockholders,  to give
or withhold consent to any corporate action (whether upon any  recapitalization,
issuance of stock,  reclassification  of stock, change of par value or change of
stock to no par value,  consolidation,  merger,  conveyance,  or otherwise),  to
receive  notices,  or otherwise,  until the Warrant shall have been exercised as
provided herein.

<PAGE>

         10.  REPLACEMENT  OF  WARRANT.  Upon  receipt  of  evidence  reasonably
satisfactory  to the Company of the loss,  theft,  destruction  or mutilation of
this Warrant and (in the case of loss, theft or destruction) upon delivery of an
indemnity agreement  reasonably  satisfactory to the Company, or (in the case of
mutilation)  upon surrender and  cancellation of this Warrant,  the Company will
issue, in lieu thereof, a new Warrant of like tenor.

         11. MAILING OF NOTICES,  ETC. All notices and other communications from
the  Company  to the  Registered  Holder  of this  Warrant  shall be  mailed  by
first-class  certified  or  registered  mail,  postage  prepaid,  to the address
furnished  to the  Company  in  writing  by the last  Registered  Holder of this
Warrant  who shall have  furnished  an address to the  Company in  writing.  All
notices and other  communications  from the Registered Holder of this Warrant or
in connection  herewith to the Company shall be mailed by first-class  certified
or registered mail, postage prepaid,  to the Company at its principal office set
forth  below.  If the  Company  should at any time  change the  location  of its
principal  office to a place other than as set forth  below,  then it shall give
prompt written  notice to the  Registered  Holder of this Warrant and thereafter
all  references in this Warrant to the location of its  principal  office at the
particular time shall be as so specified in such notice.

         12. CHANGE OR WAIVER. Any term of this Warrant may be changed or waived
only by an instrument in writing  signed by the party against which  enforcement
of the change or waiver is sought.

         13.  HEADINGS.  The  headings  in  this  Warrant  are for  purposes  of
reference  only and shall not  limit or  otherwise  affect  the  meaning  of any
provision of this Warrant.

         14. SEVERABILITY.  If any provision of this Warrant shall be held to be
invalid and unenforceable,  such invalidity or unenforceability shall not affect
any other provision of this Warrant.

         15. GOVERNING LAW AND SUBMISSION TO JURISDICTION.  This Warrant will be
governed by and construed in  accordance  with the laws of the State of New York
without regard to principles of conflict or choice of laws of any  jurisdiction.
The parties hereby agree that any action, proceeding or claim against it arising
out of, or relating in any way to this Warrant  shall be brought and enforced in
the  courts  of  the  State  of  New  York,  and  irrevocably   submit  to  such
jurisdiction, which jurisdiction shall be exclusive.

         16. CERTIFICATE. Upon request by the Registered Holder of this Warrant,
the Company shall promptly deliver to such holder a certificate  executed by its
President  or  Chief  Financial  Officer  setting  forth  the  total  number  of
outstanding  shares of capital stock,  convertible debt instruments and options,
rights,  warrants or other  agreements  relating to the purchase of such capital
stock or  convertible  debt  instruments,  together with its  calculation of the
number of shares remaining available for issuance upon exercise of this Warrant,
and a certificate of the accuracy of the statements set forth therein.

         17.  SUPPLEMENTS AND AMENDMENTS.  The Company and the Registered Holder
may from time to time  supplement  or amend  this  Warrant  in order to cure any
ambiguity,  to correct or supplement any provision contained herein which may be

<PAGE>

defective  or  inconsistent  with any  provision  herein,  or to make any  other
provisions in regard to matters or questions arising hereunder which the Company
and the Holder may deem necessary or desirable.

         18. SUCCESSORS.  All the covenants and provisions of this Warrant shall
be binding  upon and inure to the  benefit  of the  Company  and the  Registered
Holder and their respective successors and assigns hereunder.

         19.  BENEFITS  OF THIS  WARRANT.  Nothing  in  this  Warrant  shall  be
construed to give to any person,  entity or  corporation  other than the Company
and the  Registered  Holder of the Warrant  Certificate  any legal or  equitable
right,  remedy or claim under this  Warrant;  and this Warrant  shall be for the
sole and  exclusive  benefit of the  Company  and the  Registered  Holder of the
Warrant Certificate.

         20.  COUNTERPARTS.  This  Warrant  may be  executed  in any  number  of
counterparts and each such counterpart shall for all purposes be deemed to be an
original,  and such counterparts shall together  constitute but one and the same
instrument.

<PAGE>

         IN WITNESS  WHEREOF,  SKYFRAMES,  INC.  has caused  this  Warrant to be
signed by its duly authorized  officers under its corporate seal and to be dated
on the day and year first written above.

                                 SKYFRAMES, INC.

                                 By:_________________________________

                                 Name: James France

                                 Title: Chief Executive Officer

                                 Principal Office:

<PAGE>

ANNEX A

                             NOTICE OF EXERCISE FORM

To:                                                        Dated:

                  The  undersigned,  pursuant to the provisions set forth in the
attached Warrant,  hereby  irrevocably elects to purchase shares of Common Stock
covered by such Warrant and herewith  makes  payment of $_______ ,  representing
the full purchase  price for shares at the exercise price per share provided for
in such Warrant.

                                    Signature:

                                    Address:

<PAGE>

ANNEX B

                                 ASSIGNMENT FORM

FOR        VALUE  RECEIVED,   _________________________________   hereby  sells,
           assigns and transfers all of the rights of the undersigned  under the
           attached Warrant with respect to the number of shares of Common Stock
           covered thereby set forth below, unto:

NAME OF ASSIGNEE                   ADDRESS                    NO. OF SHARES

                                     Dated:

                                     Signature:

                                     Dated:

                                     Witness:

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