Document:

Exhibit 10.4

(a)                      Basic Lease Information

Lease Date:                   August 22, 2003

Master Tenant ("Landlord"):   RealNet 181 LLC, an Oregon LLC

Address of Landlord:          4380 SW Macadam Ave Suite 170 Portland, OR 97239

Sub Tenant ("Tenant"):        Tango Pacific, Inc, an Oregon Corporation

Premises:                     18055 NE San Rafael St. and 20,000 of 2023 NE 181st Avenue
                              Portland, OR 97230

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  Paragraph 1           "Premises" approximately 64,806* square feet of
                        approximately 86,014 square feet (computed from measurements
                        to the exterior of outside walls of the building and to the
                        center of interior walls), such premises being shown and
                        outlined in red on the plan attached hereto as Exhibit A,
                        and being part of the real property described in Exhibit B
                        attached hereto. *inclusive of second story office area

  Paragraph 1           Lease Term: Commencing on the "Commencement Date" as
                        hereafter defined and 64 months thereafter except that
                        in the event the Commencement Date is a date other than the
                        first day of a calendar month, said item shall extend for
                        said number of months in addition to the remainder of the
                        month following the Commencement Date.

                                       47

  Paragraph 1           Schedule Term Commencement Date:       September 1, 2003

  Paragraph 2           Monthly Base Rent:                            $15,000.00

  Paragraph 2B          Security Deposit:                             $30,000.00

  Paragraph 4A          Tenant's Initial Monthly Escrow Payment
                        for Taxes and Other Charges:                   $2,481.00

  Paragraph 7           Tenant's Initial Monthly Common Area
                        Maintenance Charge:                            $2,397.00

  Paragraph 13B         Tenant's Initial Monthly Insurance Escrow
                        Payment:                                         $304.00

                        Tenant's Initial Monthly Payment Total:       $20,182.00

The foregoing Basic Lease Information is hereby incorporated into and made a
part of this Lease. Each reference in this Lease to any of the Basic Lease
Information shall be to the respective information herein above set forth and
shall be construed to incorporate all of the terms provided under the particular
Lease paragraph pertaining to such information. In the event of any conflict
between and Basic Lease Information and the Lease, the former shall control.

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                                       1

                                 LEASE AGREEMENT

THIS LEASE AGREEMENT, made and entered into by and between REAL NET 181, LLC an
Oregon LLC hereinafter referred to as "Landlord" and Tango Pacific, Inc., an
Oregon Corporation, hereinafter referred to as "Tenant".

1.       WITNESSETH

1.       PREMISES AND TERM.

         A. In consideration of the obligation of Tenant to pay rent as herein
         provided, and in consideration of the other terms, provisions and
         covenants hereof, Landlord hereby demises and leases to Tenant and
         Tenant hereby takes and leases from Landlord those certain Premises as
         outlined in green on Exhibit "A" attached hereto (hereinafter referred
         to as the "Premises") and incorporated herein by reference, together
         with all rights, privileges, easements, appurtenances, and amenities
         belonging to or in any way appertaining to the Premises and together
         with the buildings and other improvements situated or to be situated
         upon land described in Exhibit "B" attached hereto.

         B. TO HAVE AND TO HOLD the same for a term commencing on the
         "Commencement Date", as hereinafter defined, and ending thereafter as
         specified in the Basic Lease Information, attached hereto, (the "Lease
         Term"), provided, however, that, in the event the "Commencement Date"
         is a date other than the first day of the calendar month, said term
         shall extend for said number of months in addition to the remainder of
         the calendar month following the "Commencement Date".

         C. The "Commencement Date" shall be the Scheduled Term Commencement
         Date shown in the Basic Lease Information, attached hereto and
         incorporated herein by reference. If the Premises shall not have been
         substantially completed as aforesaid by the Scheduled Term
         Commencement Date, Tenants obligation to pay rent and its other
         obligations for payment under this Lease shall commence on the date
         the Premises are substantially completed as aforesaid, and Landlord
         shall not be liable to Tenant for any loss or damage resulting from
         such delay. Landlord shall notify Tenant in writing as soon as
         Landlord deems the Premises to be substantially completed and ready
         for occupancy. In the event that the Premises have not in fact been
         substantially completed as aforesaid, Tenant shall notify Landlord of
         its objections. Landlord shall have a reasonable time after delivery
         of such notice in which to take such corrective action as may be
         necessary, and shall notify Tenant in writing as soon as it deems such
         corrective action has been completed so that the Premises are
         substantially completed and ready for occupancy. The taking of
         possession by Tenant shall be deemed conclusively to establish that
         the Premises have been substantially completed in accordance with the
         plans and specifications and that the Premises are in good and
         satisfactory condition, as of when possession was taken. Tenant
         acknowledges that no representation as to the repair of the Premises,
         have been made by Landlord, unless such are expressly set forth in
         this Lease. After the Commencement Date, Tenant shall, upon demand,
         execute and deliver to Landlord a letter of acceptance of deliver of
         the Premises, specifying the Commencement Date and the rent
         commencement date, in recordable form. In the event of any dispute as
         to the substantial completion or work performance or required to be
         performed by Landlord, the certificate of Landlord's architect or
         general contractor shall be conclusive.

                                       2

2.       BASE RENT AND SECURITY DEPOSIT.

         A. Tenant agrees to pay the Landlord Base Rent for the Premises, in
         advance, without demand, deduction or set off, for the entire Lease
         Term hereof at the rate specified in the Base Lease Information,
         payable to in monthly installments. One such monthly installment shall
         be due and payable on the date hereof and a like monthly installment
         shall be due and payable on or before the first day of each calendar
         month succeeding the Commencement Date recited above during the Lease
         Term, except that the rental payment for any fractional calendar month
         at the commencement or end of the Lease period shall be prorated on
         the basis of a 30-day month.

         B. In addition, Tenant agrees to deposit with Landlord on the date
         hereof a security deposit in the amount specified in the Basic Lease
         Information, which sum shall be held by Landlord, without obligation
         for interest, as security for the performance of Tenant's covenants
         and obligations under this Lease, it being expressly understood and
         agreed that such deposit is not an advance rental deposit, nor the
         last months rent nor a measure of Landlord's damages in the event of
         Tenant default. Upon the occurrence of any event of default by Tenant,
         Landlord may, from time to time, without prejudice to any other remedy
         provided herein or provided by law, use such deposit to the extent
         necessary to make good any arrears of rent or other payments due
         Landlord hereunder, and any other damage, injury, expense or liability
         caused by such event of default; or to perform any obligation required
         of Tenant under the Lease; and Tenant shall pay to Landlord on demand
         the amount so applied in order to restore the security deposit to its
         original amount. Although the security deposit shall be deemed the
         property of Landlord, any remaining balance of such deposit shall be
         returned by Landlord to Tenant at such time after termination of this
         Lease that all of Tenant's obligations under this Lease have been
         fulfilled.

3.       USE.

         The premises shall be used only for the purpose of general office,
         receiving, storing, shipping, assembly, light manufacturing, and
         selling (other than retail) products, materials and merchandise made
         and/or distributed by Tenant and for such other lawful purposes as may
         be incidental hereto. Outside storage, including without limitation,
         trucks and other vehicles, is prohibited without Landlord's prior
         written consent. Tenant shall, at its own cost and expense, obtain any
         and all licenses and permits necessary for its use of the Premises.
         Tenant shall comply with all governmental laws, ordinances and
         regulations applicable to the use of the Premises, and shall promptly
         comply with all governmental orders and directives including but not
         limited to those regarding the correction, prevention and abatement of
         nuisances in or upon, or connected with, the Premises, all at Tenant's
         sole expense. Tenant shall not permit any objectionable or unpleasant
         orders, smoke, dust, gas, noise or vibrations to emanate from the
         Premises, or take any other action which would constitute a nuisance
         or would disturb or endanger any other tenants of the building in
         which the Premises are situated or unreasonably interfere with their
         use of their respective premises. In addition to any other remedies,
         Landlord shall have the right to have Tenant evicted from the Premises
         for a breach by Tenant of the terms of this Section 3. Without
         Landlord prior written consent, Tenant shall not receive, store or
         otherwise handle any product, material or merchandise which is
         explosive or highly inflammable. Tenant will not permit the Premises
         to be used for any purpose or in any manner (including without
         limitation any method of storage) which would render the insurance
         thereon void or the insurance risk more hazardous or cause the State
         Board of Insurance or other Insurance premiums, Tenant shall be solely
         responsible for said increase.

                                       3

4.       TAXES AND OTHER CHARGES.

         A. Tenant agrees to pay its proportionate share of any and all real
         and personal property taxes, regular and special assessments, license
         fees and other charges of any kind and nature whosoever, payable by
         Landlord as a result of any public or quasi-public authority, private
         party, or owner's association levy, assessment or imposition against,
         or arising out of Landlord's ownership of or interest in, the real
         estate described in Exhibit "B" attached hereto, together with the
         building and the grounds, parking areas, driveways, roads, and alleys
         around the building in which the Premises are located, or any part
         thereof (hereinafter collectively referred to as the "Charges").
         During each month of the Lease Term, Tenant shall make a monthly
         escrow deposit with Landlord (the "Escrow Payment") equal to 1/12 of
         its proportionate share of the Charges which will be due and payable
         for that particular calendar year. Tenant authorizes Landlord to use
         the funds deposited by Tenant with Landlord under this Paragraph 4 to
         pay the Charges. Each Escrow Payment shall be due and payable, as
         additional rent, at the same time and in the same manner, as the
         payment as monthly rental as provided herein. The amount of the
         initial monthly Escrow Payment will be specified in the Basic Lease
         Information. The initial Escrow Payment is based upon Tenant's
         proportionate share of the Charges for the year in question, and the
         monthly Escrow Payment is subject to increase or decrease as
         determined by Landlord to reflect an accurate escrow of Tenant's
         estimated proportionate share of the Charges. The Escrow Payment
         account of Tenant shall be reconciled annually. If the Tenant's actual
         Escrow Payments are less than Tenant's pro rata share of the Charges,
         Tenant shall pay the Landlord upon demand the difference; if the
         Tenant's total Escrow Payments are more than Tenant's actual pro rata
         share of the Charges, the Landlord shall retain such excess and credit
         it to Tenant's Escrow Payment account for the successive years
         Charges. Tenant's proportionate share of the Charges shall be computed
         by multiplying the Charges by a fraction, the numerator or which shall
         be the number of gross leaseable square feet or floor space in the
         premises and the denominator of which shall be the total applicable
         gross leaseable square footage or such other equitable apportionment
         as may be adopted.

         B. If Tenant should fail to pay any Escrow Payments required to be
         paid by Tenant hereunder, in addition to any other remedies provided
         herein, Landlord may, if it so elects, pay such Escrow Payment or
         taxes, assessments, license fees and other charges. Any sums so paid
         by Landlord shall be deemed to be so much additional rental owing by
         Tenant to Landlord and due and payable upon demand as additional
         rental plus interest at the rate or eighteen percent (18%) per annum
         from the date of payment by Landlord until repaid by Tenant.

         C. (1) If at any time during the Lease Term, the present method of
         taxation shall be changed so that in lieu of the whole or any part of
         any taxes, assessments, fees or charges levied, assessed or imposed on
         real estate and the improvements thereon, there shall be levied,
         assessed or imposed on Landlord a capital levy or other tax directly
         on the rents received therefrom and/or a franchise tax, assessment,
         levy or charge measured by or based, in whole or in part, upon such
         rents or the present or any future building or buildings, then all
         such taxes, assessments, fees or charges, or the part thereof so
         measured or based, shall be deemed to be included within the term
         "Charges" for the purposes hereof.

            (2) Tenant may, alone or along with other tenants of the building
         containing the Premises, at its sole cost and expense, in its or their
         own name(s) dispute and contest any Charges by appropriate proceedings
         diligently conduct in good faith, but only after Tenant and all other
         tenants, if any, joining with Tenant in such contest have deposited
         with Landlord the amount so contested and unpaid or their
         proportionate shares thereof as the case may be, which shall be held
         by Landlord without obligation for interest until the termination of
         the proceedings, at which time the amount(s) deposited shall be
         applied by Landlord toward the payment of the items held valid (plus
         any court costs, interest, penalties and other liabilities associated
         with the proceedings), ad Tenant's share of any excess shall be
         returned to Tenant. Tenant further agrees to pay to the Landlord upon
         demand, the Tenant's share (as among all tenants who participated in
         the contest) of all court costs, interests, penalties and other
         liabilities relating to such proceedings. Tenant hereby indemnifies
         and agrees to hold harmless the Landlord from and against and cost,
         damage or expense (including attorney fees) in connection with any
         such proceedings.

                                       4

            (3) Any payment to be made pursuant to this Paragraph 4 with respect
         to the calendar year in which this Lease commences of terminates shall
         bear the same ratio to the payment which would be required to be made
         for the full calendar year as the part of such calendar year covered
         by the Lease Term bears to a full calendar year.

         D. Tenant shall be liable for all taxes levied against personal
         property and trade fixtures placed by Tenant in the Premises. If any
         such taxes are levied against Landlord or Landlord's property and if
         Landlord elects to pay the same or if the assessed value of Landlord's
         property is increased by inclusion of personal property and trade
         fixtures placed by Tenant in the Premises and Landlord elects to pay
         the taxes based on such increase, Tenant shall pay the Landlord upon
         demand that part of such taxes for which Tenant is primarily liable
         hereunder.

5.       TENANT'S MAINTENANCE.

         A. Tenant shall at its own cost and expense keep and maintain all
         parts of the Premises (except those for which Landlord is expressly
         responsible under the terms of this Lease) in good condition, promptly
         making all necessary repair and replacements, including but not
         limited to, windows, glass and plate glass, doors, any special office
         entry, interior walls and finish work, floors and floor coverings,
         down spouts, gutters, heating and air conditioning systems, dock
         boards, truck doors, dock bumpers, paving, plumbing work and fixtures,
         termite and pest extermination, regular removal of trash and debris,
         keeping the parking areas and driveways, alleys and the whole of the
         Premises in a clean and sanitary condition. Tenant shall not be
         obligated to repair any damage caused by fire, tornado, or other
         casualty covered by the insurance to be maintained by Landlord
         pursuant to subparagraph 13(A) below, except that Tenant shall be
         obligated to repair all wind damage to glass except with respect to
         tornado or hurricane damage.

         B. Tenant shall not damage any demising wall or disturb the integrity
         and support provided by any demising wall and shall, at its own sole
         cost and expense, promptly repair any damage or injury to any demising
         wall caused by Tenant or its employees, agents, licensees or invitees.

         C. Tenant and its employees, customers and licensees shall have the
         right to use the parking areas, if any, as may be designated by
         Landlord in writing, subject to such reasonable rules and regulations
         as Landlord may from time to time prescribe and subject to rights of
         ingress and egress of other tenants. Landlord shall not be responsible
         for enforcing Tenant's exclusive parking rights against any third
         parties. If Tenant or any other particular tenant of the building can
         be clearly identified as being responsible for obstructions or
         stoppage of a common sanitary sewage line, then Tenant, if Tenant is
         responsible, or such other responsible Tenant, shall pay the entire
         cost thereof, upon demand, as additional rent.

         D. Tenant shall, at its own cost and expense, enter into a regularly
         scheduled preventative maintenance/service contract with a maintenance
         contractor for servicing all heating and air conditioning and
         equipment within the Premises.

6.       LANDLORD REPAIRS.

         After reasonable notice from Tenant, Landlord shall repair the roof,
         exterior walls and foundation, and the cost thereof shall be shared as
         provided in Paragraph 7. Tenant shall repair and pay for any damage to
         such items to be maintained by Landlord caused by any act omission or
         negligence of Tenant, or Tenant's employees, agents, licensees or
         invitees, or caused by Tenant's default hereunder. The term "walls" as
         used herein shall not include windows, glass or plate glass, doors,
         special store fronts, or office entries. Tenants shall immediately
         give Landlord written notice of defect or need for repairs, after
         which Landlord shall have a reasonable opportunity and time to repair
         same or cure such defect. Landlord's liability with respect to such
         defects, repairs, maintenance for which Landlord is responsible under
         any of the provisions of this Lease shall be limited to the cost of
         such repairs or maintenance or the curing of such defect.

                                       5

7.       MONTHLY COMMON AREA MAINTENANCE CHARGE.

         Tenant agrees to pay each month, as additional rent, for its
         proportionate share of the cost of operation and maintenance of the
         Common Area which shall be defined from time to time by Landlord.
         Common Area cost which may be incurred by Landlord at its discretion,
         shall include, but not limited to those costs incurred for lighting,
         water, sewage, trash removal, exterior painting, exterior window
         cleaning, sweeping, management, accounting, policing, inspecting,
         sewer lines, plumbing, paving, landscape maintenance, plant material
         replacement and other like charges, and Landlord's fee for supervision
         and administration of the items set forth in this paragraph, currently
         at 10%. Landlord shall maintain the Common Area in reasonably good
         condition and repair. The proportionate share to be paid by Tenant of
         the cost of operation of maintenance of the Common Area shall be
         computed on the ratio that the gross leaseable square feet of the
         Premises bears to the total applicable gross leaseable square footage
         or such other equitable apportionment as may be adopted. Landlord
         shall make monthly or other periodic charges based upon the estimated
         annual cost of operation and maintenance in the Common Area, payable
         in advance but subject to adjustment after the end of the year on the
         basis of the actual cost for such year. Any such periodic charges
         shall be due and payable upon delivery of notice thereof. The initial
         Common Area Maintenance Charge, subject to adjustment as provided
         herein, shall be due and payable, as additional rent, at the same time
         and in the same manner as the time and manner of the payment of
         monthly rental as provided herein. The amount of the initial monthly
         Common Area Maintenance Charge shall be as specified in the Basic
         Lease Information.

8.       ALTERATIONS.

         Tenant shall not make any alterations, additions or improvements to
         the Premises (including but not limited to roof and wall penetrations)
         without the prior written consent of Landlord. Tenant may, without the
         consent of Landlord, but at its own cost and expense, and in a good
         workmanlike manner, erect such shelves, bins, machinery and trade
         fixtures as it may deem advisable without altering the basic character
         of the building or improvements and without overloading or damaging
         such building or improvements, and in each case complying with all
         applicable governmental laws, ordinances, regulations and other
         requirements. All alterations, additions and improvements and
         partitions erected by Tenant shall be and remain the property of
         Tenant during the term of this Lease and Tenant shall, unless Landlord
         otherwise elects as hereinafter provided, remove all alterations,
         additions, improvements and partitions erected by Tenant and restore
         the Premises to their original condition by the date of termination of
         this Lease or upon earlier vacating of the Premises, provided,
         however, that if Landlord so elects prior to termination of this Lease
         or upon earlier vacating of the Premises, such alterations, additions,
         improvements, and partitions shall become the property of the Landlord
         as of the date of termination of this Lease or upon earlier vacating
         of the Premises and shall be delivered up to the Landlord with the
         Premises. All shelves, bins, machinery and trade fixtures installed by
         the Tenant may be removed by the Tenant prior to termination of this
         Lease if Tenant so elects, and shall be removed by the date of
         termination of this Lease or upon earlier vacating of the Premises if
         required by Landlord; upon any such removal Tenant shall restore the
         Premises to their original condition. All such removals and
         restoration shall be accomplished in good workmanlike manner so as not
         to damage the primary structure or structural qualities of the
         buildings and other improvements situated on the Premises.

9.       SIGNS.

         Tenant shall not install signs upon the Premises without Landlord's
         prior written approval, and any such signage shall be subject to any
         applicable governmental laws, ordinances, regulation and other
         requirements. Tenant shall remove all such signs by the termination of
         this Lease. Such installation and removal shall be made in such a
         manner as to avoid injury or defacement of the building and other
         improvements, and Tenant shall repair any injury, defacement,
         including without limitation discoloration, caused by such
         installation and/or removal.

                                       6

10.      INSPECTION.

         A. Landlord and landlord's agents and representatives shall have the
         right to enter and inspect the Premises at any reasonable time during
         business hours, for the purpose of ascertaining the condition of the
         Premises or in order to make such repairs as may be required or
         permitted to be made by Landlord under the terms of this Lease. During
         the period that is six (6) months prior to the end of the term hereof,
         Landlord and Landlord's agents and representatives shall have the
         right to enter the Premises at any reasonable time during business
         hours for the purpose of showing the Premises and shall have the right
         to erect on the Premises a suitable sign indicating the Premises is
         available.

         B. Tenant shall give written notice to Landlord at least thirty (30)
         days prior to vacating the Premises and shall arrange to meet with
         Landlord for joint inspection of the Premises prior to vacating. In
         the event of Tenant's failure to give such notice or arrange such
         joint inspection, Landlord's inspection at or after Tenant's vacating
         the Premises shall be conclusively deemed correct for purposes of
         determining Tenant's responsibility for Tenant's repairs and
         restoration. It shall be the responsibility of Tenant, prior to
         vacating the Premises, to clean and repair the Premises and restore
         them to the condition in which they were in upon delivery of the
         Premises to Tenant at the Commencement Date, excluding reasonable wear
         and tear. Cleaning, repair and restoration shall include, but not be
         limited to, removal of all trash, cleaning and repainting of walls,
         where necessary, cleaning of carpet and flooring, replacement of light
         bulbs and tubes, cleaning and wiping down of all fixtures, maintenance
         and repair of all heating and air conditioning systems, and all
         similar work, which shall be done at the latest practical date prior
         to vacating the Premises.

         C. Landlord shall have the right to inspect Tenant's financial
         documents, whether audited or un-audited, including but not limited to
         Tenant's federal and state tax return, cash flow statement, income
         statement, and balance sheet. Tenant shall provide Landlord with
         copies of the requested documents for the relevant time period within
         seven (7) days upon written request. Tenant's failure to provide
         financial documents pursuant to subparagraph 10(C) herein shall result
         in a default under the terms of this Lease.

11.      UTILITIES.

         Landlord agrees to provide at its cost, water, electricity and gas
         service connections into the Premises; but Tenant shall pay for all
         water, gas, hear, light, power, telephone, sewer, sprinkler charge and
         other utilities and services used on or from the Premises, together
         with any taxes, penalties, surcharges or the like pertaining thereto
         and any maintenance charges for utilities and shall furnish all
         electric light bulbs and tubes. If any such services are not
         separately metered to Tenant, Tenant shall pay a reasonable proportion
         as determined by Landlord of all charges jointly metered with other
         Premises. Landlord shall be in no event liable for any interruption or
         failure in utility services on the Premises.

12.      ASSIGNMENT AND SUBLETTING.

         A. Tenant shall not have the right, voluntarily or involuntarily, to
         assign, convert, transfer, mortgage or sublet the whole or any part of
         the Premises under this Lease without the prior written consent of
         Landlord. In the event Tenant applies to Landlord for consent to
         assign, convey, transfer or sublet the Premises, Landlord may
         condition such consent upon the right to receive one-half of the
         profit, if any, which Tenant may realize on account of such
         assignment, conveyance, transfer or sublease of the Premises. For
         purposes of this paragraph, "Profit" shall mean any sum which the
         assignee, sublessee or transferee is required to pay, or which is
         credited to Tenant as rent in excess of the Rents required to be paid
         by Tenant to Landlord under this Lease. Landlord also reserves the
         right to recapture the Premises or applicable portion thereof in Lieu
         of giving its consent by notice given to Tenant within twenty (20)
         days after receipt of Tenant's written request for assignment or
         subletting. Such recapture shall terminate this Lease as to the
         applicable space effective on the prospective date of assignment or
         subletting, which shall be the last day of a calendar month and not
         earlier than sixty (60) days after receipt of Tenants request
         hereunder. In the event that Landlord shall not elect to recapture and
         shall thereafter give its consent, Tenant shall pay Landlord a
         reasonable fee, not to exceed $500.00, to reimburse Landlord for
         processing costs incurred in connection with such consent.

                                       7

         B. Notwithstanding any permitted assignment or subletting, Tenant
         shall at all times remain directly, primarily and fully responsible
         and liable for the payment of the rent herein specified and for
         compliance with all of its other obligations under the terms,
         provisions and covenants of this Lease. Upon the occurrence of an
         "event of default" as hereinafter defined, if the Premises or any part
         thereof are then assigned or sublet, Landlord, in addition to any
         other remedies herein provided, or provided by law, may at its own
         option collect directly from such assignee or subtenant all rents
         becoming due to Tenant under such assignment, transfer or sublease and
         apply such rent against any sums due to Landlord from Tenant hereunder
         and no such collection shall be construed to constitute a novation or
         a release of Tenant from the further performance of Tenant's
         obligations hereunder.

13.      INSURANCE, FIRE AND CASUALTY DAMAGE.

         A. Landlord agrees to maintain insurance covering the building of
         which the Premises are a part in an amount not less than eighty
         percent (80%) (or such greater percentage as may be necessary to
         comply with the provision of any co-insurance clauses of the policy)
         of the "replacement cost" thereof as such term is defined in the
         Replacement Cost Endorsement to be attached thereto, insuring against
         the perils of Fire, Lightning, Extended Coverage, Vandalism, and
         Malicious Mischief, extended by Special Extended Coverage Endorsement
         to insure all other risks or Direct Physical Loss, such coverages and
         endorsements to be as defined, provided and limited in the standard
         bureau forms prescribed by the insurance regulatory authority for the
         State in which the Premises are situated for use by insurance
         companies admitted in such state of the writing of such insurance
         risks located within such state. Subject to the provisions of
         subparagraph 13 C, D, E below, such insurance shall be for the sole
         benefit of Landlord and under its sole control. In the event the
         insurance policy shall contain a deductible, Tenant shall be liable
         for and pay any deductible withheld from insurance proceeds or payable
         under the terms of the insurance policy in the event of a claim or
         insurance loss thereunder.

         B. Tenant agrees to pay its proportionate share of Landlord's cost of
         carrying fire, extended coverage, worker's compensation, "all-risk"
         property contract, commercial general liability, umbrella liability,
         and earthquake ("Insurance") on the building. During each month of the
         tern of this Lease, Tenant shall make a monthly escrow deposit with
         Landlord equal to one-twelfth of its proportionate share of the
         Insurance on the building and grounds which will be due and payable
         for that particular year. Tenant authorizes Landlord to use the funds
         deposited by him with Landlord under this paragraph to pay the cost of
         such Insurance. Each Insurance Escrow Payment shall be due and
         payable, as additional rent, at the same time and manner of the
         payment of the monthly Insurance Escrow Payment is subject to increase
         or decrease as determined by Landlord to reflect an accurate monthly
         escrow or Tenant's estimated proportionate share of this Insurance.
         The Insurance Escrow Payment account of Tenant shall be reconciled
         annually. If the Tenant's total Insurance Escrow Payments are less
         than Tenant's actual pro rata share of the Insurance, Tenant shall pay
         Landlord upon demand the difference; if the total Insurance Escrow
         Payments of Tenant are more than Tenant's actual pro rata share of the
         Insurance, Landlord shall promptly refund the balance of such excess
         to Tenant after first crediting the excess to the next monthly payment
         by Tenant for its proportionate share of Taxes and Insurance. Tenant's
         cost of Insurance shall be computed by multiplying the cost of
         Insurance by a fraction, the numerator of which shall be the number of
         gross leaseable square feet of floor space in the Premises and
         denominator of which shall be the total applicable gross leasable
         square footage. The amount of the initial monthly Insurance Escrow
         Payment will be specified in the Basic Lease Information.

         C. If the building, of which the Premises are a part, should be
         damaged or destroyed by fire, tornado or other casualty, Tenant shall
         give immediate written notice thereof to Landlord.

                                       8

         D. If the building, of which the Premises is a part, should be totally
         destroyed by fire, tornado or other casualty, or if it should be
         damaged thereby that rebuilding or repairs cannot in Landlord's
         estimation be completed within two hundred (200) days after the date
         upon which Landlord is notified by Tenant of such damage, this Lease
         shall terminate and the rent shall be abated during the unexpected
         portion of this Lease, effective upon the date of the occurrence of
         such damage. Landlord shall give notice to Tenant in writing of its
         determination to terminate this Lease within ninety (90) days
         following the date of the occurrence of such damage.

         E. If the building, of which the Premises are a part, should be
         damaged by any peril covered by the Insurance to be provided by
         Landlord under subparagraph 13(A) above, but only to such extent that
         rebuilding or repairs can in Landlord's estimation be completed within
         two hundred (200) days after the date upon which Landlord is notified
         by Tenant of such damage, this Lease shall be terminated, and Landlord
         shall at its sole cost and expense thereupon proceed with reasonable
         diligence to rebuild and repair such building to substantially the
         condition in which it existed prior to such damage, except that
         Landlord shall not be required to rebuild, repair or replace any part
         of the partition, fixture, additions and other improvements which may
         have been placed in or about the premises by Tenant. If the Premises
         are untenantable in whole or in part following such damage, the rent
         payable hereunder during the period in which they are untenantable
         shall be reduced to such extent as may be fair and reasonable under
         all of the circumstances. In the event that Landlord shall fail to
         complete such repairs and rebuilding within two hundred (200) days
         after the date upon which Landlord is notified by Tenant of such
         damage, Tenant may at its option terminate this Lease by delivering
         written notice of termination to Landlord at Tenant's exclusive
         remedy, whereupon all rights and obligations hereunder shall cease and
         terminate.

         F. Notwithstanding anything herein to the contrary, in the event the
         holder of any indebtedness secured by a mortgage or deed of trust
         covering the Premises requires that the Insurance proceeds be applied
         to such indebtedness, then Landlord shall have the right to terminate
         this Lease by delivering written notice of termination to Tenant
         within fifteen (15) days after such requirement is made by any such
         holder, whereupon all rights and obligations hereunder shall cease and
         terminate.

         G. Each of Landlord and Tenant hereby releases the other from any loss
         or damage to property cause by fire or any other perils insured under
         them by way of subrogation or otherwise for any loss or damage to
         property caused by fire or any other perils insured in policies or
         Insurance covering such property, even if such loss or damage shall
         have been caused by the fault or neglect of the other party, or anyone
         for whom such party may be responsible; provided, however, that this
         release shall be applicable and in force and effect only with respect
         to loss or damage occurring during such time as the releasor's
         policies shall contain a clause or endorsement to the effect that any
         such release shall not adversely affect or impair said policies or
         prejudice the right of the releasor to recover thereunder and then
         only to the extent of the Insurance proceeds payable under such
         policies. Each of the Landlord and Tenant agrees that it will request
         Insurance carriers to include in its policies such a clause or
         endorsement. If extra cost shall be charged therefor, each party shall
         advise the other thereof and of the amount of the extra cost, and
         other party, at its election, may pay the same but shall not be
         obligated to do so.

                                       9

14.      LIABILITY.

         Landlord shall not be liable to Tenant or Tenant's employees, agents,
         guests, invitees or visitors, or ant other person whomsoever, for any
         injury to person or damage to property on or about the Premises,
         resulting from and/or caused on part or whole by the negligence or
         misconduct of Tenant, its employees, agents, servants, guests,
         invitees, or visitors or any other person entering upon the Premises,
         or caused by the building and improvements located on the Premises
         becoming out of repair, or caused by leakage of gas, oil, water or
         stream or by electricity emanating from Premises, or due to any cause
         whatsoever, and Tenant hereby covenants and agrees that it will at all
         times indemnify and hold safe and harmless the property, the Landlord
         (including without limitation the trustee and beneficiaries if
         Landlord is a trust), Landlord's employees, agents, servants, guests,
         invitees, and visitors from any loss, Liability, claims, suits costs,
         expenses, including without limitation attorney's fees and damages,
         both real and alleged, arising out of any such damage or injury;
         except injury to persons or damage to property the sole cause of which
         is the negligence of Landlord or the failure of Landlord to repair any
         part if the Premises which Landlord is obligated to repair and
         maintain hereunder with a reasonable time after the receipt of written
         notice from Tenant of needed repairs. Tenant shall procure and
         maintain throughout the term of this Lease a policy or policies or
         Insurance, at its sole cost and expense, insuring both Landlord and
         Tenant against all claims, demands or actions arising out of or in
         connection with (i) the Premises; (ii) the condition of the Premises;
         (iii) Tenant's operation in and maintenance and use of the Premises;
         and (iv) Tenant's liability assumed under this Lease, the limits of
         such policy or policies to be in the amount of not less that
         $1,000,000 per occurrence in respect of injury to persons (including
         death) and in respect of property damage or destruction, including
         loss of use thereof. All such policies shall be procured by Tenant
         from responsible Insurance companies satisfactory to Landlord.
         Certified copies of such policies, together with receipt evidencing
         payment of premiums therefor, shall be delivered to Landlord prior to
         the commencement date of this Lease. Not less than fifteen (15) days
         prior to the expiration date of any such policies, certified copies of
         the renewal thereof (bearing notions evidencing the payment of renewal
         premiums) shall be delivered to Landlord. Such policies shall further
         provide that not less than thirty (30) days written notice shall be
         given to Landlord before such policy nay be canceled or changed to
         reduce insurance provided thereby.

15.      CONDEMNATION.

         A. If the whole or any substantial part of the Premises should be
         taken for any public or quasi-public use under governmental law,
         ordinance or regulation, or by right or eminent domain, or by private
         purchase on lieu thereof and the taking would prevent or materially
         interfere with the use of the Premises for the purpose for which they
         are being used, this lease shall terminate and the rent shall be
         abated during the unexpected portion of this Lease, effective when the
         physical taking of said Premises shall occur.

         B. If part of the Premises shall be take for any public or
         quasi-public use under any governmental law, ordinance or regulation,
         or by right of eminent domain, or by private purchase in lieu thereof,
         and this Lease is not terminated as provided in the subparagraph
         above, this Lease shall not terminate but the rent payable hereunder
         during the unexpected portion of this Lease shall be reduced to such
         extent as may be fair and reasonable under all of the circumstances.

         C. In the event of any such taking or private purchase on lieu
         thereof, Landlord shall be entitled to receive the entire award.
         Tenant shall be entitled to make a claim in condemnation proceedings
         which does not reduce the amount of Landlord award, for the value of
         any furniture, furnishings and fixtures installed by and at the sole
         expense of Tenant.

16.      HOLDING OVER.

         Tenant will, at the termination of this Lease by lapse of time or
         otherwise, yield up immediate possession to Landlord. If Landlord
         agrees in writing that Tenant may hold over after the expiration or
         termination of this Lease, unless the parties hereto otherwise agree
         in writing on the terms of such holding over, the hold over tenancy
         shall be subject to termination by Landlord at any time upon not less
         that five (5) days advance written notice, or by Tenant any time upon
         not less than thirty (30) days advance written notice, and all of the
         other terms and provisions of this Lease shall be applicable during
         that period, except that Tenant shall pay Landlord from time to time
         upon demand, as rental for the period of any hold over, an amount
         equal to one and one-half (1-1/2) the Base Rent in effect on the
         termination date, plus all additional rental as defined herein,
         computed on a daily basis for each day of the hold over period. No
         holding over by Tenant, whether with or without consent of Landlord,
         shall operate to extend this Lease except as otherwise expressly
         provided. The preceding provisions of this paragraph 16 shall not be
         construed as Landlord's consent for Tenant hold over.

                                       10

17.      QUIET ENJOYMENT.

         Landlord covenants that it now has, or will acquire before Tenant
         takes possession of the Premises, good fee or leasehold title to the
         Premises, free and clear of all liens and encumbrances, excepting only
         the lien for current taxed not yet due, such mortgage or mortgages as
         are permitted by the terms of this Lease, zoning ordinance and other
         building and fire ordinances and governmental regulations relating to
         the use of such property and easements, restrictions and other
         conditions of record. In the event this Lease is a sublease, then
         Tenant agrees to take the Premises subject to the provisions of the
         prior leases. Landlord represents and warrants that it has full right
         and authority to enter into this Lease and that Tenant, upon paying
         the rental herein set forth and performing its other covenants and
         agreements herein set forth, shall peaceably and quietly have, hold
         and enjoy the Premises for the term hereof without hindrance or
         molestation from Landlord, subject to the terms and provisions of this
         Lease.

18.      EVENTS OF DEFAULT.

         The following events shall be deemed to be events of default by Tenant
         under this Lease:

         A. Tenant shall fail to pay an installment of the rent herein reserved
         when due, or any payment with respect to taxes hereunder when due, or
         any other payment or reimbursement to Landlord required herein when
         due, and such failure shall continue for a period of five (5) days
         from the date such payment was due.

         B. Tenant shall become insolvent, or shall make a transfer in fraud of
         creditors, or shall make an assignment for the benefit of creditors.

         C. Tenant shall file a petition under any section or chapter of the
         National Bankruptcy Act as amended, or under any similar law or statue
         of the United States or any State hereof; or Tenant shall be adjudged
         bankrupt or insolvent in proceedings filed against Tenant thereunder.

         D. A receiver or trustee shall be appointed for all or substantially
         all of the assets of Tenant.

         E. Tenant shall desert or vacate any substantial portion of the
         Premises.

         F. Tenant shall fail to comply with any term, provision or covenant of
         this Lease (other than the foregoing in this paragraph 18), and shall
         not cure such failure within twenty (20) days after written notice
         thereof to Tenant.

19.      REMEDIES.

         Upon the occurrence of any such event of default described in
         paragraph 18 hereof, Landlord shall have the option to pursue any one
         or more of the following remedies without any notice or demand
         whatsoever.

         A. Landlord may accelerate all rent payments due hereunder which shall
         then become immediately due and payable.

         B. Terminate this Lease, in which event Tenant shall immediately
         surrender the Premises to Landlord, and if Tenant fails so to do,
         Landlord may, without prejudice to any other remedy which may have for
         possession or arrearages in rent, enter upon and take possession of
         the Premises and expel or remove Tenant and any other person who may
         be occupying such Premises or any part thereof, by force if necessary,
         without being liable for prosecution or any claim of damages therefor,
         and Tenant agrees to pay to Landlord on demand the amount of all loss
         and damage which Landlord may suffer by reason of such termination,
         whether through inability to relet the Premises on satisfactory terms
         or otherwise.

                                       11

         C. Enter upon and take possession of the Premises and expel or remove
         Tenant and any other person who may be occupying such Premises or any
         part thereof, by force if necessary, without being liable for
         prosecution or any claim for damage therefor, and relet the Premises
         for such terms ending before, on or after the expiration date of the
         Lease Tern, at such rental and upon such other conditions (including
         concessions and prior occupancy periods) as Landlord in its sole
         discretion may determine, and receive the rent therefor; and Tenant
         agrees to pay to the Landlord on demand any deficiency that may arise
         by reason of such reletting. Landlord shall have no obligation to
         relet the Premises or any part thereof and shall not be liable for
         refusal or failure to relet or in the event of reletting for refusal
         or failure to collect any rent due upon such reletting. In the event
         Landlord is successful in reletting the Premises at a rental in excess
         of that agreed to be paid by Tenant pursuant to the terms of this
         Lease, Landlord and Tenant each mutually agree that Tenant shall not
         be entitled, under any circumstances, to such excess rental, and
         Tenant does hereby specifically waiver any claim to such excess
         rental.

         D. Enter upon the Premises, by force if necessary, without being
         liable for prosecution or any claim for damages therefor, and do
         whatever Tenant is obligated to do under the terns of this Lease; and
         Tenant agrees to reimburse Landlord on demand for any expenses which
         Landlord may incur in thus effecting compliance with Tenant's
         obligations under this Lease, and Tenant further agrees that Landlord
         shall not be liable for any damages resulting to the Tenant from such
         action, whether caused by the negligence of Landlord or otherwise.

         E. Whether or not Landlord retakes possession or relets the Premises,
         Landlord shall have the right to recover unpaid rents and all damages
         by Tenant's default, including attorney's fees. Damages shall include,
         without limitations: all rentals lost, all legal expenses and other
         related cost incurred by Landlord following Tenant's default, all
         costs incurred by Landlord in restoring the Premises to good order and
         condition, or in remodeling, renovating or otherwise preparing the
         Premises for reletting, all costs (including without limitation by any
         brokerage commissioned and the value of Landlord's time) incurred by
         landlord, plus interest thereon from the date of expenditure until
         fully repaid at the rate of eighteen percent (18%) per annum.

         F. In the event Tenant fails to pay any installment of rent,
         additional rent or other charges hereunder as and when such
         installment is due, to help defray the additional cost to Landlord for
         processing such late payments Tenant shall pay Landlord on demand a
         late charge in an amount equal to five percent (5%) of such
         installment, and the failure to pay such amount within ten (10) days
         after demand therefor shall be an event of default hereunder. The
         provision for such late charge shall be in addition to all of
         Landlord's other rights and remedies hereunder or at law and shall not
         be construed as liquidated damages or as limiting Landlord's remedies
         in any manner.

         G. Pursuit or any of the foregoing remedies shall not preclude pursuit
         of any of the other remedies herein provided or any other remedies
         provided by law, such remedies being cumulative and non-exclusive, nor
         shall pursuit of any remedy herein provided constitute a forfeiture or
         waiver of any rent due to Landlord hereunder or of any damages
         accruing to Landlord by reason of the violation of any of the terms,
         provisions and covenants herein contained. No act or thing done by the
         Landlord or its agents during the Lease Term hereby granted shall be
         deemed a termination of this Lease or an acceptance of the surrender
         of the Premises, and no agreement to terminate this Lease or accept a
         surrender of said Premises shall be valid unless in writing signed by
         Landlord. No waiver by Landlord or any violation or breach of any of
         the terms, provisions and covenants herein contained shall be deemed
         or construed to constitute a waiver of any other violation or breach
         of any of the term provisions and covenants herein contained.
         Landlord's acceptance of the payment of rental or other payments
         hereunder after the occurrence of an event of default shall not be
         construed as a waiver of such default, unless Landlord so notifies
         Tenant in writing. Forbearance by Landlord to enforce one or more of
         the remedies herein provided upon an event of default shall not be
         deemed or construed to constitute a waiver of such default or of
         Landlord's right to enforce any such remedies with respect to such
         default or any subsequent default. If, on account of any breach or
         default by Tenant in Tenant's obligations under the terms and
         conditions of this Lease, it shall become necessary or appropriate for
         Landlord to employ or consult with an attorney concerning or to
         enforce or defend any of Landlord's rights or remedies hereunder,
         Tenant agrees to pay any reasonable attorney's fees so incurred.

                                       12

20.      LANDLORD'S LIEN.

         In addition to any statutory lien for rent in Landlord`s favor,
         Landlord shall have and Tenant hereby grants to Landlord a continuing
         security interest for all rentals and other sums of money becoming due
         hereunder from Tenant, upon all goods, wares, equipment fixtures,
         furniture, inventory accounts, contract rights, chattel paper and
         other personal property of Tenant situated on the Premises, and such
         property shall not be removed therefrom without the consent of
         Landlord until all arrearages in rent as well as any and all other
         sums of money then due to Landlord hereunder shall first have been
         paid and discharged. In the event of a default under this Lease,
         Landlord shall have, in addition to any other remedies provided herein
         or by law, all rights and remedies under the Uniform Commercial Code,
         including without limitation the right to sell the property described
         in the paragraph 20 at public or private sale. Tenant hereby agrees to
         execute such financing statements and other instruments necessary or
         desirable in Landlord's discretion to perfect the security interest
         hereby created. Any statutory lien for rent is not hereby waived, the
         express contractual lien herein grated being in addition and
         supplementary thereto.

21.      MORTGAGES.

         Tenant accepts this Lease subject and subordinate to any mortgage(s)
         and/or deed(s) of trust now or at any time hereafter constituting a
         lien or charge upon the Premises or the improvements situated hereon,
         provided, however that if the mortgagee, trustee, or holder of any
         such mortgage or deed of trust elects to have Tenant's interest in
         this Lease superior to any such instrument, then by notice to Tenant
         from such mortgagee, trustee or holder, this Lease shall be deemed
         superior to such lien, whether this Least was executed before or after
         said mortgage or deed of trust. Tenant shall at any time hereafter on
         demand execute any instruments, releases or other documents which may
         be required by any mortgagee for the purpose of subjecting and
         subordinating this Lease to the Lien of any such mortgage.

22.      LANDLORD'S DEFAULT.

         In the event Landlord should become in default in any payment due on
         any such mortgage described in paragraph 21 hereof or in the payment
         of taxes or any other item which might become a lien upon the Premises
         and which Tenant is not obligated to pay under the terms and
         provisions of this Lease, Tenant is authorized and empowered after
         giving Landlord five (5) days prior written notice of such default and
         Landlord's failure to cure such default, to pay any such items for and
         on behalf of Landlord, and the amount of any item so paid by Tenant
         for or on behalf of Landlord, together with any interest or penalty
         required to be paid in connection therewith, shall be payable on
         demand by Landlord to Tenant, provided, however, that Tenant shall not
         be authorized and empowered to make any payment under the terms of
         this paragraph 22 unless the item paid shall be superior to Tenant's
         interest hereunder. In the event Tenant pays any mortgage debt in
         full, in accordance with this paragraph, it shall, at its election, be
         entitled to the mortgage security by assignment or subrogation.

23.      MECHANICS LIENS.

         Tenant shall have no authority, express or implied, to create or place
         any lien or encumbrance of any kind or nature whatsoever upon, or in
         any manner to bind, the interest of Landlord in the Premises or to
         charge the rentals payable hereunder for any claim in favor of any
         person dealing with Tenant, including those who may furnish materials
         or perform labor for any construction or repairs, and each such claim
         shall affect and each such lien shall attach to, if at all, only the
         leasehold interest granted to Tenant by this instrument. Tenant
         covenants and agrees that it will pay or cause to be paid all sums
         legally due and payable by it on account of any labor performed or
         materials furnished in connection with any work performed on the
         Premises on which any lien is or can be validly and legally asserted
         against its leasehold interest in the Premises or the improvements
         there on and that it will save and hold Landlord harmless from any and
         all loss, cost or expense based on or arising out of asserted claims
         or liens against the leasehold estate or against the right, title and
         interest of the Landlord in the Premises or under the terms of this
         Lease.

24.      NOTICES.

         Each provision of this instrument or of any applicable governmental
         laws, ordinances, regulations and other requirements with reference to
         the sending, mailing or delivery of any notice or the making of any
         payment by Landlord to Tenant or with reference to the sending,
         mailing or delivery of any notice or the making of any payment by
         Tenant to Landlord shall be deemed to be complied with when and if the
         following steps are taken:

         A. All rent and other payments required to be made by Tenant to
         Landlord hereunder shall be payable to Landlord at the address herein
         below set forth or at such other address as Landlord may specify from
         time to time by written notice delivered in accordance herewith.
         Tenant's obligation to pay rent and any other amounts to Landlord
         under the terms of this Lease shall not be deemed satisfied until such
         rent and other amounts have been actually received by Landlord.

         B. All payments required to be made by Landlord to Tenant hereunder
         shall be payable to Tenant at the address herein below set forth, or
         at such other address within the continental United States as Tenant
         may specify from time to time by written notice delivered in
         accordance herewith.

                                       13

         C. Any notice or document required or permitted to be delivered
         hereunder shall be deemed to be delivered whether actually received or
         not when deposited in the United States Mail, postage prepaid,
         Certified or Registered Mail, addressed to the parties hereto at the
         respective addresses set out below, or at such other address as they
         have theretofore specified by written notice delivered in accordance
         herewith:

         LANDLORD:                                       TENANT:

         REAL NET 181, LLC                               TANGO PACIFIC, INC
         4380 SW Macadam Ave, Suite 170                  18055 NE San Rafael St.
         Portland, OR  97239                             Portland, OR  97230

         If and when included within the term "Landlord", as used in this
         instrument, there are more than one person, firm or corporation, all
         shall jointly arrange among themselves for their joint execution of
         such a notice specifying some individual at some specific address for
         the receipt of notices and payments to Landlord; If and when included
         within the term "Tenant", as used in this instrument, there are more
         than one person, firm or corporation, all shall jointly arrange among
         themselves for their joint execution of such a notice specifying some
         individual at some specific address within the continental United
         States for the receipt of notices and payments to Tenant. All parties
         included within the terms "Landlord" and "Tenant", respectively, shall
         be bound by notices given in accordance with the provisions of this
         paragraph to the same effect as it each had received such notice.

25.      MISCELLANEOUS.

         A. Words of any gender used in this Lease shall be held and construed
         to include any other gender, and words in the singular number shall be
         held to include the plural, unless the contest otherwise requires.

         B. The terms, provisions and covenants and conditions contained in
         this Lease shall apply to, inure to the benefit of, and be binding
         upon, the parties hereto and upon their respective heirs, legal
         representatives, successors and permitted assigns, except as otherwise
         herein expressly provided. Landlord shall have the right to assign any
         of it rights and obligations under this Lease. Each party agrees to
         furnish to the other, promptly upon demand, a corporate resolution,
         proof of due authorization by partners, or other appropriate
         documentation evidencing the due authorization of such part to enter
         into this Lease.

         C. The captions inserted in this Lease are for convenience only and in
         no way define, limit or otherwise describe the scope or intent of this
         Lease, or any provision hereof, or in any way affect the
         interpretation of this Lease.

         D. Tenant agrees from time to time within ten (10) days after request
         of Landlord, to deliver to Landlord, or Landlord's designee, an
         estoppel certificate stating that this Lease is in full force and
         effect, the date to which rent has been paid, the unexpired term of
         this Lease and such other matters pertaining to this Lease as may be
         requested by Landlord. It is understood and agreed that Tenant's
         obligation to furnish such estoppel certificates in a timely fashion
         is a material inducement for Landlord's execution of this lease.

                                       14

         E. This Lease may not be altered, changed or amended except by an
         instrument in writing signed by both parties hereto.

         F. All obligations of Tenant hereunder not fully performed as of the
         expiration or earlier termination of the term of this Lease shall
         survive the expiration or earlier termination of the Term hereof,
         including without limitation all payment obligations with respect to
         taxes and insurance and all obligations concerning the condition of
         the Premises. Upon the expiration or earlier termination of the Term
         hereof, and prior to Tenant vacating the Premises, Tenant shall pay to
         Landlord any amount reasonably estimated by Landlord as necessary to
         put the Premises, including without limitation all heating and air
         conditioning systems and equipment therein, in good condition and
         repair pursuant to paragraph 10(B) hereof. Tenant shall also, prior to
         vacating the Premises, pay to Landlord the amount, as estimated by
         Landlord, of Tenant's obligation hereunder for real estate taxes and
         insurance premiums for the year in which the Lease expires or
         terminates. All such amounts shall be used and held by Landlord for
         payment of such obligations of Tenant hereunder, with Tenant being
         liable for any additional costs therefore upon demand by Landlord, or
         with any excess to be returned to Tenant after all such obligation
         shave been determined and satisfied, as the case may be. Any security
         deposit held by Landlord shall be credited against the amount payable
         by Tenant under this paragraph 25(F).

         G. If any clause or provision of this Lease is illegal, invalid or
         unenforceable under present or future laws effective during the Term
         of this Lease, then and in that event, it is the intention of the
         parties hereto that the remainder of this Lease shall not be affected
         thereby, and it is also the intention of the parties to this Lease
         that in lieu of each clause or provision of this Lease that is
         illegal, invalid or unenforceable, there be added as part of this
         Lease contract a clause or provision as similar in terms to such
         illegal, invalid or unenforceable clause or provision as my be
         possible and be legal, valid and enforceable.

         H. Because the Premises are on the open market and are presently being
         shown, this Lease shall be treated as an offer with the Premises being
         subject to prior Lease and such offer subject to withdrawal or
         non-acceptance by Landlord or to other use of the Premises without
         notice, and this Lease shall not be valid or binding unless and until
         accepted by Landlord in writing and a fully executed copy delivered to
         both parties hereto.

         I. All references in this Lease to "the date hereof" or similar
         references shall be deemed to refer to the last date, in point of
         time, on which all parties hereto have executed this Lease.

26.      LIABILITY OF LANDLORD.

         Tenant agrees that no trustee, officer, employee, agent or individual
         partner of Landlord, or its constituent entities, shall be personally
         liable for any obligation of Landlord hereunder, and that Tenant must
         look solely to the interests of Landlord, or its constituent entities
         in the subject real estate, for the enforcement of any claims against
         Landlord arising hereunder.

27.      ADDITIONAL PROVISIONS.

         See Addendum "A".

                                       15

 LANDLORD                                    TENANT

 By:                                                  By:
     ----------------------------------------             ----------------------------------------

 Title:                                               Title:
        -------------------------------------                -------------------------------------

 Name:                                                Name:
       --------------------------------------               --------------------------------------
          (Print)                                              (Print)

                                       16

                                  ADDENDUM "A"

      1. BASE RENT ADJUSTMENTS:

                  The Base Rent shall adjust according to the following schedule:
                           9/1/2003 - 12/31/2004     $15,000 NNN
                           1/1/2005 - 12/31/2005     $20,705 NNN
                           1/1/2006 - 12/31/2006     $21,223 NNN
                           1/1/2007 - 12/31/2007     $21,753 NNN
                           1/1/2008 - 12/31/2008     $22,297 NNN

      2. Tenant Improvements/Allowance:

         With the exception of the construction of a partition to divide 2023
         NE 181st Avenue to allow for at least 20,000 square feet of space on
         the east side of the building, Tenant agrees to take the Premises in
         "as-is" condition.

         Landlord agrees to provide a Tenant Improvement Allowance in an amount
         not to exceed $75,000.00 so that Tenant may make repairs, if
         necessary, and construct additional improvements. All repairs and
         improvements are to be mutually agreed upon by Landlord and Tenant and
         will be paid directly by Landlord except that, if Tenant elects to pay
         any amount directly, Tenant must first receive landlord's prior
         written approval.

                                       17

         If Tenant seeks reimbursement from Landlord then, Landlord shall pay
         such amount to tenant within thirty (30) days after the following have
         been satisfied:

(a)      Submission of itemized invoices relating to such improvements;
(b)      Completion of work;
(c)      Submission of appropriate lien waivers, if necessary.

      3. Master lease

         Tenant is aware the Landlord is the Master Tenant under a master lease
         agreement for the Premises. In the event of default by the Master
         Tenant under the master lease, all rights and responsibilities
         associated with this Agreement shall pass to the Landlord under the
         Master Lease.

4.       PURCHASE OPTION

         Tenant shall have the option to purchase both buildings for $3,200,000
         plus the cost of the improvements made to both buildings between
         September 1, 2003 and the date the purchase is closed by the Tenant.
         If the Option is exercised, the Tenant must either assume the
         financing in place at the time Option is exercised or pay any
         prepayment penalties associated with the loan. The Option will require
         6 months notice prior to Closing and may only be exercised between
         12th and 24th month of the lease. Closing of the purchase shall not
         occur prior to August 15, 2004.

                                       18Exhibit 10.3

                         EQUITY LINE OF CREDIT AGREEMENT
                         -------------------------------

         AGREEMENT dated as of the 25th day of July 2002 (the "Agreement")
between CORNELL CAPITAL PARTNERS, LP, a Delaware limited partnership (the
"Investor"), and BIO-ONE CORPORATION, a corporation organized and existing under
the laws of the State of Nevada (the "Company").

         WHEREAS, the parties desire that, upon the terms and subject to the
conditions contained herein, the Company shall issue and sell to the Investor,
from time to time as provided herein, and the Investor shall purchase from the
Company up to Ten Million ($10,000,000) Dollars of the Company's common stock,
par value $.001 per share (the "Common Stock"); and

         WHEREAS, such investments will be made in reliance upon the provisions
of Regulation D ("Regulation D") of the Securities Act of 1933, as amended, and
the regulations promulgated there under (the "Securities Act"), and or upon such
other exemption from the registration requirements of the Securities Act as may
be available with respect to any or all of the investments to be made hereunder.

         WHEREAS, the Company has engaged Westrock Advisors, Inc. to act as the
Company's exclusive placement agent in connection with the sale of the Company's
Common Stock to the Investor hereunder.

         NOW, THEREFORE, the parties hereto agree as follows:

                                   ARTICLE I.
                               CERTAIN DEFINITIONS

         Section 1.1 "Advance" shall mean the portion of the Commitment Amount
requested by the Company in the Advance Notice.

         Section 1.2 "Advance Date" shall mean the date Butler Gonzalez
LLP/Wachovia Bank, N.A. Escrow Account is in receipt of the funds from the
Investor and Butler Gonzalez LLP, as the Investor' s Counsel, is in possession
of free trading shares from the Company and therefore an Advance by the Investor
to the Company can be made and Butler Gonzalez LLP can release the free trading
shares to the Investor. No Advance Date shall be less than six (6) Trading Days
after an Advance Notice Date.

         Section 1.3 "Advance Notice" shall mean a written notice to the
Investor setting forth the Advance amount that the Company requests from the
Investor and the Advance Date.

<PAGE>

         Section 1.4 "Advance Notice Date" shall mean each date the Company
delivers to the Investor an Advance Notice requiring the Investor to advance
funds to the Company, subject to the terms of this Agreement. No Advance Notice
Date shall be less than seven (7) Trading Days after the prior Advance Notice
Date.

         Section 1.5 "Bid Price" shall mean, on any date, the closing bid price
(as reported by Bloomberg L.P.) of the Common Stock on the Principal Market or
if the Common Stock is not traded on a Principal Market, the highest reported
bid price for the Common Stock, as furnished by the National Association of
Securities Dealers, Inc.

         Section 1.6 "Closing" shall mean one of the closings of a purchase and
sale of Common Stock pursuant to Section 2.3.

         Section 1.7 "Commitment Amount" shall mean the aggregate amount of up
to Ten Million Dollars ($10,000,000) which the Investor has agreed to provide to
the Company in order to purchase the Company's Common Stock pursuant to the
terms and conditions of this Agreement.

         Section 1.8 "Commitment Period" shall mean the period commencing on the
earlier to occur of (i) the Effective Date, or (ii) such earlier date as the
Company and the Investor may mutually agree in writing, and expiring on the
earliest to occur of (x) the date on which the Investor shall have made payment
of Advances pursuant to this Agreement in the aggregate amount of Ten Million
Dollars ($10,000,000), (y) the date this Agreement is terminated pursuant to
Section 2.5, or (z) the date occurring twenty-four (24) months after the
Effective Date.

         Section 1.9 "Common Stock" shall mean the Company's common stock, par
value $.001 per share.

         Section 1.10 "Condition Satisfaction Date" shall have the meaning set
forth in Section 7.2.

         Section 1.11 "Damages" shall mean any loss, claim, damage, liability,
costs and expenses (including, without limitation, reasonable attorney's fees
and disbursements and costs and expenses of expert witnesses and investigation).

         Section 1.12 "Effective Date " shall mean the date on which the SEC
first declares effective a Registration Statement registering the resale of the
Registrable Securities as set forth in Section 7.2(a).

         Section 1.13 "Escrow Agreement" shall mean the escrow agreement among
the Company, the Investor, the Investor's Counsel and Wachovia, N.A. dated the
date hereof.

         Section 1.14 "Exchange Act" shall mean the Securities and Exchange Act
of 1934, as amended, and the rules and regulations promulgated there under.

         Section 1.15 "Material Adverse Effect" shall mean any condition,
circumstance, or situation that would prohibit or otherwise materially interfere
with the ability of the Company to enter into and perform any of its obligations
under this Agreement or the Registration Rights Agreement in any material
respect.

                                       2
<PAGE>

         Section 1.16 "Market Price" shall mean the lowest closing Bid Price of
the Common Stock during the Pricing Period.

         Section 1.17 "Maximum Advance Amount" shall be equal up to One Hundred
Seventy Five Thousand Dollars ($175,000) per
Advance Notice.

            Section 1.18 "Minimum Acceptable Price"shall mean a price of the
Company's Common Stock as determined by the Company on the Advance Notice Date
of which the Investor shall be advised of in writing simultaneously with the
Advance Notice.

         Section 1.19 "NASD" shall mean the National Association of Securities
Dealers, Inc.

         Section 1.20 "Person" shall mean an individual, a corporation, a
partnership, an association, a trust or other entity or organization, including
a government or political subdivision or an agency or instrumentality thereof.

         Section 1.21 "Placement Agent" shall mean Westrock Advisors, Inc. a
registered broker-dealer.

         Section 1.22 "Pricing Period" shall mean the five (5) consecutive
Trading Days after the Advance Notice Date.

         Section 1.23 "Principal Market" shall mean the Nasdaq National Market,
the Nasdaq SmallCap Market, the American Stock Exchange, the OTC Bulletin Board
or the New York Stock Exchange, whichever is at the time the principal trading
exchange or market for the Common Stock.

         Section 1.24 "Purchase Price" shall be set at one hundred percent
(100%) of the Market Price during the Pricing Period.

         Section 1.25 "Registrable Securities" shall mean the shares of Common
Stock (i) in respect of which the Registration Statement has not been declared
effective by the SEC, (ii) which have not been sold under circumstances meeting
all of the applicable conditions of Rule 144 (or any similar provision then in
force) under the Securities Act ("Rule 144") or (iii) which have not been
otherwise transferred to a holder who may trade such shares without restriction
under the Securities Act, and the Company has delivered a new certificate or
other evidence of ownership for such securities not bearing a restrictive
legend.

         Section 1.26 "Registration Rights Agreement" shall mean the
Registration Rights Agreement dated the date hereof, regarding the filing of the
Registration Statement for the resale of the Registrable Securities, entered
into between the Company and the Investor.

         Section 1.27 "Registration Statement" shall mean a registration
statement on Form S-1 or SB-2 (if use of such form is then available to the
Company pursuant to the rules of the SEC and, if not, on such other form
promulgated by the SEC for which the Company then qualifies and which counsel
for the Company shall deem appropriate, and which form shall be available for
the resale of the Registrable Securities to be registered there under in
accordance with the provisions of this Agreement and the Registration Rights
Agreement, and in accordance with the intended method of distribution of such
securities), for the registration of the resale by the Investor of the
Registrable Securities under the Securities Act.

                                       3
<PAGE>

         Section 1.28 "Regulation D" shall have the meaning set forth in the
recitals of this Agreement.

         Section 1.29 "SEC" shall mean the Securities and Exchange Commission.

         Section 1.30 "Securities Act" shall have the meaning set forth in the
recitals of this Agreement.

         Section 1.31 "SEC Documents" shall mean Annual Reports on Form 10-KSB,
Quarterly Reports on Form 10-QSB, Current Reports on Form 8-K and Proxy
Statements of the Company as supplemented to the date hereof, filed by the
Company for a period of at least twelve (12) months immediately preceding the
date hereof or the Advance Date, as the case may be, until such time as the
Company no longer has an obligation to maintain the effectiveness of a
Registration Statement as set forth in the Registration Rights Agreement.

         Section 1.32 "Trading Day" shall mean any day during which the New York
Stock Exchange shall be open for business.

                                   ARTICLE II.
                                    ADVANCES

         Section 2.1 Investments.

                  (a) Advances. Upon the terms and conditions set forth herein
(including, without limitation, the provisions of Article VII hereof), on any
Advance Notice Date the Company may request an Advance by the Investor by the
delivery of an Advance Notice. The number of shares of Common Stock that the
Investor shall receive for each Advance shall be determined by dividing the
amount of the Advance by the Purchase Price. No fractional shares shall be
issued. Fractional shares shall be rounded to the next higher whole number of
shares. The aggregate maximum amount of all Advances that the Investor shall be
obligated to make under this Agreement shall not exceed the Commitment Amount.

                  (b) Notwithstanding the foregoing the Company shall only be
entitled to an Advance if the Company's Common Stock has an active bid at all
times during the Pricing Period.

                  (c) The Company acknowledges that the Investor may sell the
Company's Common Stock purchased pursuant to an Advance Notice during the
corresponding Pricing Period.

         Section 2.2 Mechanics.

                  (a) Advance Notice. At any time during the Commitment Period,
the Company may deliver an Advance Notice to the Investor, subject to the
conditions set forth in Section 7.2; provided, however, unless waived by the
Investor, the amount for each Advance as designated by the Company in the
applicable Advance Notice, shall not be more than the Maximum Advance Amount.
The aggregate amount of the Advances pursuant to this Agreement shall not exceed

                                       4
<PAGE>

the Commitment Amount, unless otherwise agreed by the Investor in the Investor's
sole and absolute discretion. The Company acknowledges that the Investor may
sell shares of the Company's Common Stock corresponding with a particular
Advance Notice on the day the Advance Notice is received by the Investor. There
will be a minimum of seven (7) Trading Days between each Advance Notice Date.

                  (b) Withdrawal of Advance Notice. The Company shall
automatically withdraw a pro rata portion of the Advance Notice amount based on
the number of days the closing bid price of the Company's Common Stock (as
reported by Bloomberg, L.P.) during the Pricing Period is lower than the Minimum
Acceptable Price. The shares of Common Stock issued shall also be reduced to
correspond with the reduction in the Advance Notice amount. For example, if the
closing bid price of the Company's Common Stock on the Advance Notice Date is
$0.26, and the Minimum Acceptable Price as determined by the Company is $0.16.
For every day during the Pricing Period that the closing bid price of the
Company's Common Stock is below $0.16 the Advance Notice amount shall be reduced
by Twenty Percent (20%). If the Advance Notice amount is One Hundred Seventy
Five Thousand Dollars ($175,000) and the closing bid price of the Company's
Common Stock is below the Minimum Acceptable Price for two (2) of the five (5)
days of the Pricing Period, the Purchase Amount shall be reduced by 40% (2 x
20%) or Seventy Thousand Dollars ($70,000) (40% of $175,000 = $70,000) and
therefore the reduced Advance Notice amount shall be One Hundred Five Thousand
Dollars ($105,000) (the "Reduced Advance Notice amount") ($175,000-$70,000 =
$105,000). Accordingly the number of shares of Common Stock issued to the
Investor shall be reduced and calculated by dividing the Reduced Advance Notice
amount by the Purchase Price.

                  (c) Date of Delivery of Advance Notice. An Advance Notice
shall be deemed delivered on (i) the Trading Day it is received by facsimile or
otherwise by the Investor if such notice is received prior to 12:00 noon Eastern
Time, or (ii) the immediately succeeding Trading Day if it is received by
facsimile or otherwise after 12:00 noon Eastern Time on a Trading Day or at any
time on a day which is not a Trading Day. No Advance Notice may be deemed
delivered, on a day that is not a Trading Day.

                  (d) Pre-Closing Share Credit. Within two (2) business days
after the Advance Notice Date, the Company shall credit shares of the Company's
Common Stock to the Investor's balance account with The Depository Trust Company
through its Deposit Withdrawal At Custodian system, in an amount equal to the
amount of the requested Advance divided by the closing Bid Price of the
Company's Common Stock as of the Advance Notice Date multiplied by one point one
(1.1). Any adjustments to the number of shares to be delivered to the Investor
at the Closing as a result of fluctuations in the closing Bid Price of the
Company's Common Stock shall be made as of the date of the Closing. Any excess
shares shall be credited to the next Advance. In no event shall the number of
shares issuable to the Investor pursuant to an Advance cause the Investor to own
in excess of nine and 9/10 percent (9.9%) of the then outstanding Common Stock
of the Company.

                  (e) Hardship. In the event the Investor sells the Company's
Common Stock pursuant to subsection (c) above and the Company fails to perform
its obligations as mandated in Section 2.5 and 2.2 (c), and specifically fails
to provide the Investor with the shares of Common Stock for the applicable
Advance, the Company acknowledges that the Investor shall suffer financial
hardship and therefore shall be liable for any and all losses, commissions,
fees, or financial hardship caused to the Investor.

                                       5
<PAGE>

         Section 2.3 Closings. On each Advance Date, which shall be six (6)
Trading Days after an Advance Notice Date, (i) the Company shall deliver to the
Investor 's Counsel, as defined pursuant to the Escrow Agreement, shares of the
Company's Common Stock, representing the amount of the Advance by the Investor
pursuant to Section 2.1 herein, registered in the name of the Investor which
shall be delivered to the Investor, or otherwise in accordance with the Escrow
Agreement and (ii) the Investor shall deliver to Wachovia Bank, N.A. (the
"Escrow Agent") the amount of the Advance specified in the Advance Notice by
wire transfer of immediately available funds which shall be delivered to the
Company, or otherwise in accordance with the Escrow Agreement. In addition, on
or prior to the Advance Date, each of the Company and the Investor shall deliver
to the other through the Investor's Counsel all documents, instruments and
writings required to be delivered or reasonably requested by either of them
pursuant to this Agreement in order to implement and effect the transactions
contemplated herein. Payment of funds to the Company and delivery of the
Company's Common Stock to the Investor shall occur in accordance with the
conditions set forth above and those contai ned in the Escrow Agreement;
provided, however, that to the extent the Company has not paid the fees,
expenses, and disbursements of the Investor, the Investor's counsel in
accordance with Section 12.4, the amount of such fees, expenses, and
disbursements may be deducted by the Investor (and shall be paid to the relevant
party) from the amount of the Advance with no reduction in the amount of shares
of the Company's Common Stock to be delivered on such Advance Date.

         Section 2.4 Termination of Investment. The obligation of the Investor
to make an Advance to the Company pursuant to this Agreement shall terminate
permanently (including with respect to an Advance Date that has not yet
occurred) in the event that (i) there shall occur any stop order or suspension
of the effectiveness of the Registration Statement for an aggregate of fifty
(50) Trading Days, other than due to the acts of the Investor, during the
Commitment Period, and (ii) the Company shall at any time fail materially to
comply with the requirements of Article VI and such failure is not cured within
thirty (30) days after receipt of written notice from the Investor, provided,
however, that this termination provision shall not apply to any period
commencing upon the filing of a post-effective amendment to such Registration
Statement and ending upon the date on which such post effective amendment is
declared effective by the SEC.

         Section 2.5 Agreement to Advance Funds.

                  (a) The Investor agrees to advance the amount specified in the
Advance Notice to the Company after the completion of each of the following
conditions and the other conditions set forth in this Agreement:

                           (i) the execution and delivery by the Company, and
the Investor, of this Agreement, and the Exhibits
hereto;

                           (ii) Investor's Counsel shall have received the
shares of Common Stock applicable to the Advance in
accordance with Section 2.2(c) hereof;

                                       6
<PAGE>

                           (iii) the Company's Registration Statement with
respect to the resale of the Registrable Securities in accordance with the terms
of the Registration Rights Agreement shall have been declared effective by the
SEC;

                           (iv) the Company shall have obtained all material
permits and qualifications required by any applicable state for the offer and
sale of the Registrable Securities, or shall have the availability of exemptions
there from. The sale and issuance of the Registrable Securities shall be legally
permitted by all laws and regulations to which the Company is subject;

                           (v) the Company shall have filed with the Commission
in a timely manner all reports, notices and other documents required of a
"reporting company" under the Exchange Act and applicable Commission
regulations;

                           (vi) the fees as set forth in Section 12.4 below
shall have been paid or can be withheld as provided in Section 2.3; and

                           (vii) the conditions set forth in Section 7.2 shall
have been satisfied.

                           (viii) The Company shall have provided to the
Investor an acknowledgement, to the satisfaction of the Investor, from Parks,
Tschopp, Whitcomb & Orr, P.A., the Company's accountant, as to the accountant's
ability to provide all consents required in order to file a registration
statement in connection with this transaction;

                           (ix) The Company's transfer agent shall be DWAC
eligible.

         Section 2.6 Lock Up Period.

                           (i) The Company shall not, without the prior consent
of the Investor, issue or sell (i) any Common Stock without consideration or for
a consideration per share less than the Bid Price on the date of issuance or
(ii) issue or sell any warrant, option, right, contract, call, or other security
or instrument granting the holder thereof the right to acquire Common Stock
without consideration or for a consideration per share less than the Bid Price
on the date of issuance.

                           (ii) On the date hereof, the Company shall obtain
from each officer and director a lock-up agreement, as defined below, in the
form annexed hereto as Schedule 2.6(b) agreeing to only sell in compliance with
the volume limitation of Rule 144.

                                  ARTICLE III.
                   REPRESENTATIONS AND WARRANTIES OF INVESTOR

         Investor hereby represents and warrants to, and agrees with, the
Company that the following are true and as of the date hereof and as of each
Advance Date:

         Section 3.1 Organization and Authorization. The Investor is duly
incorporated or organized and validly existing in the jurisdiction of its
incorporation or organization and has all requisite power and authority to
purchase and hold the securities issuable hereunder. The decision to invest and
the execution and delivery of this Agreement by such Investor, the performance

                                       7
<PAGE>

by such Investor of its obligations hereunder and the consummation by such
Investor of the transactions contemplated hereby have been duly authorized and
requires no other proceedings on the part of the Investor. The undersigned has
the right, power and authority to execute and deliver this Agreement and all
other instruments (including, without limitations, the Registration Rights
Agreement), on behalf of the Investor. This Agreement has been duly executed and
delivered by the Investor and, assuming the execution and delivery hereof and
acceptance thereof by the Company, will constitute the legal, valid and binding
obligations of the Investor, enforceable against the Investor in accordance with
its terms.

         Section 3.2 Evaluation of Risks. The Investor has such knowledge and
experience in financial tax and business matters as to be capable of evaluating
the merits and risks of, and bearing the economic risks entailed by, an
investment in the Company and of protecting its interests in connection with
this transaction. It recognizes that its investment in the Company involves a
high degree of risk.

         Section 3.3 No Legal Advice From the Company. The Investor acknowledges
that it had the opportunity to review this Agreement and the transactions
contemplated by this Agreement with his or its own legal counsel and investment
and tax advisors. The Investor is relying solely on such counsel and advisors
and not on any statements or representations of the Company or any of its
representatives or agents for legal, tax or investment advice with respect to
this investment, the transactions contemplated by this Agreement or the
securities laws of any jurisdiction.

         Section 3.4 Investment Purpose. The securities are being purchased by
the Investor for its own account, for investment and without any view to the
distribution, assignment or resale to others or fractionalization in whole or in
part. The Investor agrees not to assign or in any way transfer the Investor's
rights to the securities or any interest therein and acknowledges that the
Company will not recognize any purported assignment or transfer except in
accordance with applicable Federal and state securities laws. No other person
has or will have a direct or indirect beneficial interest in the securities. The
Investor agrees not to sell, hypothecate or otherwise transfer the Investor's
securities unless the securities are registered under Federal and applicable
state securities laws or unless, in the opinion of counsel satisfactory to the
Company, an exemption from such laws is available.

         Section 3.5 Accredited Investor. Investor is an "Accredited Investor"
as that term is defined in Rule 501(a)(3) of Regulation D of the Securities Act.

         Section 3.6 Information. The Investor and its advisors (and its
counsel), if any, have been furnished with all materials relating to the
business, finances and operations of the Company and information it deemed
material to making an informed investment decision. The Investor and its
advisors, if any, have been afforded the opportunity to ask questions of the
Company and its management. Neither such inquiries nor any other due diligence
investigations conducted by such Investor or its advisors, if any, or its
representatives shall modify, amend or affect the Investor's right to rely on
the Company's representations and warranties contained in this Agreement. The
Investor understands that its investment involves a high degree of risk. The
Investor is in a position regarding the Company, which, based upon employment,
family relationship or economic bargaining power, enabled and enables such
Investor to obtain information from the Company in order to evaluate the merits
and risks of this investment. The Investor has sought such accounting, legal and
tax advice, as it has considered necessary to make an informed investment
decision with respect to this transaction.

                                       8
<PAGE>

         Section 3.7 Receipt of Documents. The Investor and its counsel has
received and read in their entirety: (i) this Agreement and the Exhibits annexed
hereto; (ii) all due diligence and other information necessary to verify the
accuracy and completeness of such representations, warranties and covenants;
(iii) the Company's Form 10-KSB for the year ended December 31, 2001 and Form
10-QSB for the period ended March 31, 2002; and (iv) answers to all questions
the Investor submitted to the Company regarding an investment in the Company;
and the Investor has relied on the information contained therein and has not
been furnished any other documents, literature, memorandum or prospectus.

         Section 3.8 Registration Rights Agreement and Escrow Agreement. The
parties have entered into the Registration Rights Agreement and the Escrow
Agreement, each dated the date hereof.

         Section 3.9 No General Solicitation. Neither the Company, nor any of
its affiliates, nor any person acting on its or their behalf, has engaged in any
form of general solicitation or general advertising (within the meaning of
Regulation D under the Securities Act) in connection with the offer or sale of
the shares of Common Stock offered hereby.

         Section 3.10 Not an Affiliate. The Investor is not an officer, director
or a person that directly, or indirectly through one or more intermediaries,
controls or is controlled by, or is under common control with the Company or any
"Affiliate" of the Company (as that term is defined in Rule 405 of the
Securities Act). Neither the Investor nor its Affiliates has an open short
position in the Common Stock of the Company, and the Investor agrees that it
will not, and that it will cause its Affiliates not to, engage in any short
sales of or hedging transactions with respect to the Common Stock, provided that
the Company acknowledges and agrees that upon receipt of an Advance Notice the
Investor will sell the Shares to be issued to the Investor pursuant to the
Advance Notice, even if the Shares have not been delivered to the Investor.

                                   ARTICLE IV.
                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

         Except as stated below, on the disclosure schedules attached hereto or
in the SEC Documents (as defined herein), the Company hereby represents and
warrants to, and covenants with, the Investor that the following are true and
correct as of the date hereof:

         Section 4.1 Organization and Qualification. The Company is duly
incorporated or organized and validly existing in the jurisdiction of its
incorporation or organization and has all requisite power and authority
corporate power to own its properties and to carry on its business as now being
conducted. Each of the Company and its subsidiaries is duly qualified as a
foreign corporation to do business and is in good standing in every jurisdiction
in which the nature of the business conducted by it makes such qualification
necessary, except to the extent that the failure to be so qualified or be in
good standing would not have a Material Adverse Effect on the Company and its
subsidiaries taken as a whole.

                                       9
<PAGE>

         Section 4.2 Authorization, Enforcement, Compliance with Other
Instruments. (i) The Company has the requisite corporate power and authority to
enter into and perform this Agreement, the Registration Rights Agreement, the
Escrow Agreement, the Placement Agent Agreement and any related agreements, in
accordance with the terms hereof and thereof, (ii) the execution and delivery of
this Agreement, the Registration Rights Agreement, the Escrow Agreement, the
Placement Agent Agreement and any related agreements by the Company and the
consummation by it of the transactions contemplated hereby and thereby, have
been duly authorized by the Company's Board of Directors and no further consent
or authorization is required by the Company, its Board of Director s or its
stockholders, (iii) this Agreement, the Registration Rights Agreement, the
Escrow Agreement, the Placement Agent Agreement and any related agreements have
been duly executed and delivered by the Company, (iv) this Agreement, the
Registration Rights Agreement, the Escrow Agreement, the Placement Agent
Agreement and assuming the execution and delivery thereof and acceptance by the
Investor and any related agreements constitute the valid and binding obligations
of the Company enforceable against the Company in accordance with their terms,
except as such enforceability may be limited by general principles of equity or
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or
similar laws relating to, or affecting generally, the enforcement of creditors'
rights and remedies.

         Section 4.3 Capitalization. As of the date hereof, the authorized
capital stock of the Company consists of 100,000,000 shares of Common Stock, par
value $.001 per share and 10,000,000 shares of Preferred Stock, par value $.001
per share of which 12,812,000 shares of Common Stock and no shares of Preferred
Stock were issued and outstanding as of the date hereof. All of such outstanding
shares have been validly issued and are fully paid and nonassessable. Except as
disclosed in the SEC Documents, no shares of Common Stock are subject to
preemptive rights or any other similar rights or any liens or encumbrances
suffered or permitted by the Company. Except as disclosed in the SEC Documents,
as of the date hereof, (i) there are no outstanding options, warrants, scrip,
rights to subscribe to, calls or commitments of any character whatsoever
relating to, or securities or rights convertible into, any shares of capital
stock of the Company or any of its subsidiaries, or contracts, commitments,
understandings or arrangements by which the Company or any of its subsidiaries
is or may become bound to issue additional shares of capital stock of the
Company or any of its subsidiaries or options, warrants, scrip, rights to
subscribe to, calls or commitments of any character whatsoever relating to, or
securities or rights convertible into, any shares of capital stock of the
Company or any of its subsidiaries, (ii) there are no outstanding debt
securities and (iii) there are no agreements or arrangements under which the
Company or any of its subsidiaries is obligated to register the sale of any of
their securities under the Securities Act (except pursuant to the Registration
Rights Agreement). There are no securities or instruments containing
anti-dilution or similar provisions that will be triggered by this Agreement or
any related agreement or the consummation of the transactions described herein
or therein.. The Company has furnished to the Investor true and correct copies
of the Company's Certificate of Incorporation, as amended and as in effect on
the date hereof (the "Certificate of Incorporation"), and the Company's By-laws,
as in effect on the date hereof (the "By-laws"), and the terms of all securities
convertible into or exercisable for Common Stock and the material rights of the
holders thereof in respect thereto.

                                       10
<PAGE>

         Section 4.4 No Conflict. The execution, delivery and performance of
this Agreement by the Company and the consummation by the Company of the
transactions contemplated hereby will not (i) result in a violation of the
Certificate of Incorporation, any certificate of designations of any outstanding
series of preferred stock of the Company or By-laws or (ii) conflict with or
constitute a default (or an event which with notice or lapse of time or both
would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture or
instrument to which the Company or any of its subsidiaries is a party, or result
in a violation of any law, rule, regulation, order, judgment or decree
(including federal and state securities laws and regulations and the rules and
regulations of the Principal Market on which the Common Stock is quoted)
applicable to the Company or any of its subsidiaries or by which any material
property or asset of the Company or any of its subsidiaries is bound or affected
and which would cause a Material Adverse Effect. Except as disclosed in the SEC
Documents, neither the Company nor its subsidiaries is in violation of any term
of or in default under its Certificate of Incorporation or By-laws or their
organizational charter or by-laws, respectively, or any material contract,
agreement, mortgage, indebtedness, indenture, instrument, judgment, decree or
order or any statute, rule or regulation applicable to the Company or its
subsidiaries. The business of the Company and its subsidiaries is not being
conducted in violation of any material law, ordinance, regulation of any
governmental entity. Except as specifically contemplated by this Agreement and
as required under the Securities Act and any applicable state securities laws,
the Company is not required to obtain any consent, authorization or order of, or
make any filing or registration with, any court or governmental agency in order
for it to execute, deliver or perform any of its obligations under or
contemplated by this Agreement or the Registration Rights Agreement in
accordance with the terms hereof or thereof. All consents, authorizations,
orders, filings and registrations which the Company is required to obtain
pursuant to the preceding sentence have been obtained or effected on or prior to
the date hereof. The Company and its subsidiaries are unaware of any fact or
circumstance, which might give rise to any of the foregoing.

         Section 4.5 SEC Documents; Financial Statements. Since November 3,
2000, the Company has filed all reports, schedules, forms, statements and other
documents required to be filed by it with the SEC under of the Exchange Act. The
Company has delivered to the Investor or its representatives, or made available
through the SEC's website at http://www.sec.gov, true and complete copies of the
SEC Documents. As of their respective dates, the financial statements of the
Company disclosed in the SEC Documents (the "Financial Statements") complied as
to form in all material respects with applicable accounting requirements and the
published rules and regulations of the SEC with respect thereto. Such financial
statements have been prepared in accordance with generally accepted accounting
principles, consistently applied, during the periods involved (except (i) as may
be otherwise indicated in such financial statements or the notes thereto, or
(ii) in the case of unaudited interim statements, to the extent they may exclude
footnotes or may be condensed or summary statements) and, fairly present in all
material respects the financial position of the Company as of the dates thereof
and the results of its operations and cash flows for the periods then ended
(subject, in the case of unaudited statements, to normal year-end audit
adjustments). No other information provided by or on behalf of the Company to
the Investor which is not included in the SEC Documents contains any untrue
statement of a material fact or omits to state any material fact necessary in
order to make the statements therein, in the light of the circumstances under
which they were made, not misleading.

                                       11
<PAGE>

         Section 4.6 10b-5. The SEC Documents do not include any untrue
statements of material fact, nor do they omit to state any material fact
required to be stated therein necessary to make the statements made, in light of
the circumstances under which they were made, not misleading.

         Section 4.7 No Default. Except as disclosed in Section 4.4 or the SEC
Documents, the Company is not in default in the performance or observance of any
material obligation, agreement, covenant or condition contained in any
indenture, mortgage, deed of trust or other material instrument or agreement to
which it is a party or by which it is or its property is bound and neither the
execution, nor the delivery by the Company, nor the performance by the Company
of its obligations under this Agreement or any of the exhibits or attachments
hereto will conflict with or result in the breach or violation of any of the
terms or provisions of, or constitute a default or result in the creation or
imposition of any lien or charge on any assets or properties of the Company
under its Certificate of Incorporation, By-Laws, any material indenture,
mortgage, deed of trust or other material agreement applicable to the Company or
instrument to which the Company is a party or by which it is bound, or any
statute, or any decree, judgment, order, rules or regulation of any court or
governmental agency or body having jurisdiction over the Company or its
properties, in each case which default, lien or charge is likely to cause a
Material Adverse Effect on the Company's business or financial condition.

         Section 4.8 Absence of Events of Default. Except for matters described
in the SEC Documents and/or this Agreement, no Event of Default, as defined in
the respective agreement to which the Company is a party, and no event which,
with the giving of notice or the passage of time or both, would become an Event
of Default (as so defined), has occurred and is continuing, which would have a
Material Adverse Effect on the Company's business, properties, prospects,
financial condition or results of operations.

         Section 4.9 Intellectual Property Rights. The Company and its
subsidiaries own or possess adequate rights or licenses to use all material
trademarks, trade names, service marks, service mark registrations, service
names, patents, patent rights, copyrights, inventions, licenses, approvals,
governmental authorizations, trade secrets and rights necessary to conduct their
respective businesses as now conducted. The Company and its subsidiaries do not
have any knowledge of any infringement by the Company or its subsidiaries of
trademark, trade name rights, patents, patent rights, copyrights, inventions,
licenses, service names, service marks, service mark registrations, trade secret
or other similar rights of others, and, to the knowledge of the Company, there
is no claim, action or proceeding being made or brought against, or to the
Company's knowledge, being threatened against, the Company or its subsidiaries
regarding trademark, trade name, patents, patent rights, invention, copyright,
license, service names, service marks, service mark registrations, trade secret
or other infringement; and the Company and its subsidiaries are unaware of any
facts or circumstances which might give rise to any of the foregoing.

         Section 4.10 Employee Relations. Neither the Company nor any of its
subsidiaries is involved in any labor dispute nor, to the knowledge of the
Company or any of its subsidiaries, is any such dispute threatened. None of the
Company 's or its subsidiaries' employees is a member of a union and the Company
and its subsidiaries believe that their relations with their employees are good.

                                       12
<PAGE>

         Section 4.11 Environmental Laws. The Company and its subsidiaries are
(i) in compliance with any and all applicable material foreign, federal, state
and local laws and regulations relating to the protection of human health and
safety, the environment or hazardous or toxic substances or wastes, pollutants
or contaminants ("Environmental Laws"), (ii) have received all permits, licenses
or other approvals required of them under applicable Environmental Laws to
conduct their respective businesses and (iii) are in compliance with all terms
and conditions of any such permit, license or approval.

         Section 4.12 Title. Except as set forth in the SEC Documents, the
Company has good and marketable title to its properties and material assets
owned by it, free and clear of any pledge, lien, security interest, encumbrance,
claim or equitable interest other than such as are not material to the business
of the Company. Any real property and facilities held under lease by the Company
and its subsidiaries are held by them under valid, subsisting and enforceable
leases with such exceptions as are not material and do not interfere with the
use made and proposed to be made of such property and buildings by the Company
and its subsidiaries.

         Section 4.13 Insurance. The Company and each of its subsidiaries are
insured by insurers of recognized financial responsibility against such losses
and risks and in such amounts as management of the Company believes to be
prudent and customary in the businesses in which the Company and its
subsidiaries are engaged. Neither the Company nor any such subsidiary has been
refused any insurance coverage sought or applied for and neither the Company nor
any such subsidiary has any reason to believe that it will not be able to renew
its existing insurance coverage as and when such coverage expires or to obtain
similar coverage from similar insurers as may be necessary to continue its
business at a cost that would not materially and adversely affect the condition,
financial or otherwise, or the earnings, business or operations of the Company
and its subsidiaries, taken as a whole.

         Section 4.14 Regulatory Permits. The Company and its subsidiaries
possess all material certificates, authorizations and permits issued by the
appropriate federal, state or foreign regulatory authorities necessary to
conduct their respective businesses , and neither the Company nor any such
subsidiary has received any notice of proceedings relating to the revocation or
modification of any such certificate, authorization or permit.

         Section 4.15 Internal Accounting Controls. The Company and each of its
subsidiaries maintain a system of internal accounting controls sufficient to
provide reasonable assurance that (i) transactions are executed in accordance
with management's general or specific authorizations, (ii) transactions are
recorded as necessary to permit preparation of financial statements in
conformity with generally accepted accounting principles and to maintain asset
accountability, (iii) access to assets is permitted only in accordance with
management's general or specific authorization and (iv) the recorded
accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences.

         Section 4.16 No Material Adverse Breaches, etc. Except as set forth in
the SEC Documents, neither the Company nor any of its subsidiaries is subject to
any charter, corporate or other legal restriction, or any judgment, decree,
order, rule or regulation which in the judgment of the Company's officers has or

                                       13
<PAGE>

is expected in the future to have a Material Adverse Effect on the business,
properties, operations, financial condition, results of operations or prospects
of the Company or its subsidiaries. Except as set forth in the SEC Documents,
neither the Company nor any of its subsidiaries is in breach of any contract or
agreement which breach, in the judgment of the Company's officers, has or is
expected to have a Material Adverse Effect on the business, properties,
operations, financial condition, results of operations or prospects of the
Company or its subsidiaries.

         Section 4.17 Absence of Litigation. Except as set forth in the SEC
Documents, there is no action, suit, proceeding, inquiry or investigation before
or by any court, public board, government agency, self-regulatory organization
or body pending against or affecting the Company, the Common Stock or any of the
Company's subsidiaries, wherein an unfavorable decision, ruling or finding would
(i) have a Material Adverse Effect on the transactions contemplated hereby (ii)
adversely affect the validity or enforceability of, or the authority or ability
of the Company to perform its obligations under, this Agreement or any of the
documents contemplated herein, or (iii) except as expressly disclosed in the SEC
Documents, have a Material Adverse Effect on the business, operations,
properties, financial condition or results of operation of the Company and its
subsidiaries taken as a whole.

         Section 4.18 Subsidiaries. Except as disclosed in the SEC Documents,
the Company does not presently own or control, directly or indirectly, any
interest in any other corporation, partnership, association or other business
entity.

         Section 4.19 Tax Status. The Company and each of its subsidiaries has
made or filed all federal and state income and all other tax returns, reports
and declarations required by any jurisdiction to which it is subject and (unless
and only to the extent that the Company and each of its subsidiaries has set
aside on its books provisions reasonably adequate for the payment of all unpaid
and unreported taxes) has paid all taxes and other governmental assessments and
charges that are material in amount, shown or determined to be due on such
returns, reports and declarations, except those being contested in good faith
and has set aside on its books provision reasonably adequate for the payment of
all taxes for periods subsequent to the periods to which such returns, reports
or declarations apply. There are no unpaid taxes in any material amount claimed
to be due by the taxing authority of any jurisdiction, and the officers of the
Company know of no basis for any such claim.

         Section 4.20 Certain Transactions. Except as set forth in the SEC
Documents none of the officers, directors, or employees of the Company is
presently a party to any transaction with the Company (other than for services
as employees, officers and directors), including any contract, agreement or
other arrangement providing for the furnishing of services to or by, providing
for rental of real or personal property to or from, or otherwise requiring
payments to or from any officer, director or such employee or, to the knowledge
of the Company, any corporation, partnership, trust or other entity in which any
officer, director, or any such employee has a substantial interest or is an
officer, director, trustee or partner.

         Section 4.21 Fees and Rights of First Refusal. Except as set forth in
the SEC Documents, the Company is not obligated to offer the securities offered
hereunder on a right of first refusal basis or otherwise to any third parties
including, but not limited to, current or former shareholders of the Company,
underwriters, brokers, agents or other third parties.

                                       14
<PAGE>

         Section 4.22 Use of Proceeds. The Company represents that the net
proceeds from this offering will be used for general corporate purposes.
However, in no event shall the net proceeds from this offering be used by the
Company for the payment (or loaned to any such person for the payment) of any
judgment, or other liability, incurred by any executive officer, officer,
director or employee of the Company, except for any liability owed to such
person for services rendered, or if any judgment or other liability is incurred
by such person originating from services rendered to the Company, or the Company
has indemnified such person from liability.

         Section 4.23 Further Representation and Warranties of the Company. For
so long as any securities issuable hereunder held by the Investor remain
outstanding, the Company acknowledges, represents, warrants and agrees that it
will maintain the listing of its Common Stock on the Principal Market

         Section 4.24 Opinion of Counsel. Investor shall receive an opinion
letter from Newman, Pollock & Klein, LLP, counsel to the Company (updated where
applicable) on the date hereof.

         Section 4.25 Opinion of Counsel. The Company will obtain for the
Investor, at the Company's expense, any and all opinions of counsel which may be
reasonably required in order to sell the securities issuable hereunder without
restriction.

         Section 4.26 Dilution. The Company is aware and acknowledges that
issuance of shares of the Company's Common Stock could cause dilution to
existing shareholders and could significantly increase the outstanding number of
shares of Common Stock.

                                   ARTICLE V.
                                 INDEMNIFICATION

         The Investor and the Company represent to the other the following with
respect to itself:

         Section 5.1       Indemnification.

                  (a) In consideration of the Investor's execution and delivery
of this Agreement, and in addition to all of the Company's other obligations
under this Agreement, the Company shall defend, protect, indemnify and hold
harmless the Investor, and all of its officers, directors, partners, employees
and agents (including, without limitation, those retained in connection with the
transactions contemplated by this Agreement) (collectively, the "Investor
Indemnitees") from and against any and all actions, causes of action, suits,
claims, losses, costs, penalties, fees, liabilities and damages, and expenses in
connection therewith (irrespective of whether any such Investor Indemnitee is a
party to the action for which indemnification hereunder is sought), and
including reasonable attorneys' fees and disbursements (the "Indemnified
Liabilities"), incurred by the Investor Indemnitees or any of them as a result
of, or arising out of, or relating to (a) any misrepresentation or breach of any
representation or warranty made by the Company in this Agreement or the
Registration Rights Agreement or any other certificate, instrument or document
contemplated hereby or thereby, (b) any breach of any covenant, agreement or
obligation of the Company contained in this Agreement or the Registration Rights
Agreement or any other certificate, instrument or document contemplated hereby
or thereby, or (c) any cause of action, suit or claim brought or made against
such Investor Indemnitee not arising out of any action or inaction of an
Investor Indemnitee, and arising out of or resulting from the execution,

                                       15
<PAGE>

delivery, performance or enforcement of this Agreement or any other instrument,
document or agreement executed pursuant hereto by any of the Investor
Indemnitees. To the extent that the foregoing undertaking by the Company may be
unenforceable for any reason, the Company shall make the maximum contribution to
the payment and satisfaction of each of the Indemnified Liabilities, which is
permissible under applicable law.

                  (b) In consideration of the Company's execution and delivery
of this Agreement, and in addition to all of the Investor's other obligations
under this Agreement, the Investor shall defend, protect, indemnify and hold
harmless the Company and all of its officers, directors, shareholders, employees
and agents (including, without limitation, those retained in connection with the
transactions contemplated by this Agreement) (collectively, the "Company
Indemnitees") from and against any and all Indemnified Liabilities incurred by
the Company Indemnitees or any of them as a result of, or arising out of, or
relating to (a) any misrepresentation or breach of any representation or
warranty made by the Investor in this Agreement, the Registration Rights
Agreement, or any instrument or document contemplated hereby or thereby executed
by the Investor, (b) any breach of any covenant, agreement or obligation of the
Investor(s) contained in this Agreement, the Registration Rights Agreement or
any other certificate, instrument or document contemplated hereby or thereby
executed by the Investor, or (c) any cause of action, suit or claim brought or
made against such Company Indemnitee based on misrepresentations or due to a
breach by the Investor and arising out of or resulting from the execution,
delivery, performance or enforcement of this Agreement or any other instrument,
document or agreement executed pursuant hereto by any of the Company
Indemnitees. To the extent that the foregoing undertaking by the Investor may be
unenforceable for any reason, the Investor shall make the maximum contribution
to the payment and satisfaction of each of the Indemnified Liabilities, which is
permissible under applicable law.

                                   ARTICLE VI.
                            COVENANTS OF THE COMPANY

         Section 6.1 Registration Rights. The Company shall cause the
Registration Rights Agreement to remain in full force and effect and the Company
shall comply in all material respects with the terms thereof.

         Section 6.2 Listing of Common Stock. The Company shall maintain the
Common Stock' s authorization for quotation on the National Association of
Securities Dealers Over the Counter Bulletin Board.

         Section 6.3 Exchange Act Registration. The Company will cause its
Common Stock to continue to be registered under Section 12(g) of the Exchange
Act, will file in a timely manner all reports and other documents required of it
as a reporting company under the Exchange Act and will not take any action or
file any document (whether or not permitted by Exchange Act or the rules there
under to terminate or suspend such registration or to terminate or suspend its
reporting and filing obligations under said Exchange Act.

                                       16
<PAGE>

         Section 6.4 Transfer Agent Instructions. Not later than two (2)
business days after each Advance Notice Date and prior to each Closing and the
effectiveness of the Registration Statement and resale of the Common Stock by
the Investor, the Company will deliver instructions to its transfer agent to
issue shares of Common Stock free of restrictive legends.

         Section 6.5 Corporate Existence. The Company will take all steps
necessary to preserve and continue the corporate existence of the Company.

         Section 6.6 Notice of Certain Events Affecting Registration; Suspension
of Right to Make an Advance. The Company will immediately notify the Investor
upon its becoming aware of the occurrence of any of the following events in
respect of a registration statement or related prospectus relating to an
offering of Registrable Securities: (i) receipt of any request for additional
information by the SEC or any other Federal or state governmental authority
during the period of effectiveness of the Registration Statement for amendments
or supplements to the registration statement or related prospectus; (ii) the
issuance by the SEC or any other Federal or state governmental authority of any
stop order suspending the effectiveness of the Registration Statement or the
initiation of any proceedings for that purpose; (iii) receipt of any
notification with respect to the suspension of the qualification or exemption
from qualification of any of the Registrable Securities for sale in any
jurisdiction or the initiation or threatening of any proceeding for such
purpose; (iv) the happening of any event that makes any statement made in the
Registration Statement or related prospectus of any document incorporated or
deemed to be incorporated therein by reference untrue in any material respect or
that requires the making of any changes in the Registration Statement, related
prospectus or documents so that, in the case of the Registration Statement, it
will not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein not misleading, and that in the case of the related prospectus, it will
not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not
misleading; and (v) the Company's reasonable determination that a post-effective
amendment to the Registration Statement would be appropriate; and the Company
will promptly make available to the Investor any such supplement or amendment to
the related prospectus. The Company shall not deliver to the Investor any
Advance Notice during the continuation of any of the foregoing events.

         Section 6.7 Expectations Regarding Advance Notices. Within ten (10)
days after the commencement of each calendar quarter occurring subsequent to the
commencement of the Commitment Period, the Company must notify the Investor, in
writing, as to its reasonable expectations as to the dollar amount it intends to
raise during such calendar quarter, if any, through the issuance of Advance
Notices. Such notification shall constitute only the Company's good faith
estimate and shall in no way obligate the Company to raise such amount, or any
amount, or otherwise limit its ability to deliver Advance Notices. The failure
by the Company to comply with this provision can be cured by the Company's
notifying the Investor, in writing, at any time as to its reasonable
expectations with respect to the current calendar quarter.

         Section 6.8 Consent of Investor to Sell Common Stock. During the
Commitment Period, the Company shall not issue or sell (i) any Common Stock
without consideration or for a consideration per share less than its Bid Price
determined immediately prior to its issuance, (ii) issue or sell any warrant,

                                       17
<PAGE>

option, right, contract, call, or other security or instrument granting the
holder thereof the right to acquire Common Stock without consideration or for a
consideration per share less than such Common Stock's Bid Price determined
immediately prior to its issuance, or (iii) file any registration statement on
Form S-8.

         Section 6.9 Consolidation; Merger. The Company shall not, at any time
after the date hereof, effect any merger or consolidation of the Company with or
into, or a transfer of all or substantially all the assets of the Company to
another entity (a "Consolidation Event") unless the resulting successor or
acquiring entity (if not the Company) assumes by written instrument the
obligation to deliver to the Investor such shares of stock and/or securities as
the Investor is entitled to receive pursuant to this Agreement.

         Section 6.10 Issuance of the Company's Common Stock. The sale of the
shares of Common Stock shall be made in accordance with the provisions and
requirements of Regulation D and any applicable state securities law.

                                  ARTICLE VII.
                CONDITIONS FOR ADVANCE AND CONDITIONS TO CLOSING

         Section 7.1 Conditions Precedent to the Obligations of the Company. The
obligation hereunder of the Company to issue and sell the shares of Common Stock
to the Investor incident to each Closing is subject to the satisfaction, or
waiver by the Company, at or before each such Closing, of each of the conditions
set forth below.

                  (a) Accuracy of the Investor's Representations and Warranties.
The representations and warranties of the Investor shall be true and correct in
all material respects.

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

         Section 7.2 Conditions Precedent to the Right of the Company to Deliver
an Advance Notice and the Obligation of the Investor to Purchase Shares of
Common Stock. The right of the Company to deliver an Advance Notice and the
obligation of the Investor hereunder to acquire and pay for shares of the
Company's Common Stock incident to a Closing is subject to the satisfaction or
waiver by the Investor, on (i) the date of delivery of such Advance Notice and
(ii) the applicable Advance Date (each a "Condition Satisfaction Date"), of each
of the following conditions:

                  (a) Registration of the Common Stock with the SEC. The Company
shall have filed with the SEC a Registration Statement with respect to the
resale of the Registrable Securities in accordance with the terms of the
Registration Rights Agreement. As set forth in the Registration Rights
Agreement, the Registration Statement shall have previously become effective and
shall remain effective on each Condition Satisfaction Date and (i) neither the
Company nor the Investor shall have received notice that the SEC has issued or
intends to issue a stop order with respect to the Registration Statement or that
the SEC otherwise has suspended or withdrawn the effectiveness of the
Registration Statement, either temporarily or permanently, or intends or has

                                       18
<PAGE>

threatened to do so (unless the SEC's concerns have been addressed and the
Investor is reasonably satisfied that the SEC no longer is considering or
intends to take such action), and (ii) no other suspension of the use or
withdrawal of the effectiveness of the Registration Statement or related
prospectus shall exist. The Registration Statement must have been declared
effective by the SEC prior to the first Advance Notice Date.

                  (b) Authority. The Company shall have obtained all permits and
qualifications required by any applicable state in accordance with the
Registration Rights Agreement for the offer and sale of the shares of Common
Stock, or shall have the availability of exemptions there from. The sale and
issuance of the shares of Common Stock shall be legally permitted by all laws
and regulations to which the Company is subject.

                  (c) Fundamental Changes. There shall not exist any fundamental
changes to the information set forth in the Registration Statement which would
require the Company to file a post-effective amendment to the Registration
Statement.

                  (d) Performance by the Company. The Company shall have
performed, satisfied and complied in all material respects with all covenants,
agreements and conditions required by this Agreement (including, without
limitation, the conditions specified in Section 2.5 hereof) and the Registration
Rights Agreement to be performed, satisfied or complied with by the Company at
or prior to each Condition Satisfaction Date.

                  (e) No Injunction. No statute, rule, regulation, executive
order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by any court or governmental authority of competent
jurisdiction that prohibits or directly and adversely affects any of the
transactions contemplated by this Agreement, and no proceeding shall have been
commenced that may have the effect of prohibiting or adversely affecting any of
the transactions contemplated by this Agreement.

                  (f) No Suspension of Trading in or Delisting of Common Stock.
The trading of the Common Stock is not suspended by the SEC or the Principal
Market (if the Common Stock is traded on a Principal Market). The issuance of
shares of Common Stock with respect to the applicable Closing, if any, shall not
violate the shareholder approval requirements of the Principal Market (if the
Common Stock is traded on a Principal market). The Company shall not have
received any notice threatening the continued listing of the Common Stock on the
Principal Market (if the Common Stock is traded on a Principal Market).

                  (g) Maximum Advance Amount. The amount of the individual
Advance requested by the Company does not exceed the Maximum Advance Amount
unless waived by the Investor. In addition, in no event shall the number of
shares issuable to the Investor pursuant to an Advance cause the Investor to own
in excess of nine and 9/10 percent (9.9%) of the then outstanding Common Stock
of the Company.

                  (h) No Knowledge. The Company has no knowledge of any event
more likely than not to have the effect of causing such Registration Statement
to be suspended or otherwise ineffective.

                                       19
<PAGE>

                  (i) Other. On each Condition Satisfaction Date, the Investor
shall have received and been reasonably satisfied with such other certificates
and documents as shall have been reasonably requested by the Investor in order
for the Investor to confirm the Company's satisfaction of the conditions set
forth in this Section 7.2, including, without limitation, a certificate executed
by an executive officer of the Company and to the effect that all the conditions
to such Closing shall have been satisfied as at the date of each such
certificate substantially in the form annexed hereto on Exhibit A.

                                  ARTICLE VIII.
         DUE DILIGENCE REVIEW; NON-DISCLOSURE OF NON-PUBLIC INFORMATION

         Section 8.1 Due Diligence Review. Prior to the filing of the
Registration Statement the Company shall make available for inspection and
review by the Investor, advisors to and representatives of the Investor, any
underwriter participating in any disposition of the Registrable Securities on
behalf of the Investor pursuant to the Registration Statement, any such
registration statement or amendment or supplement thereto or any blue sky, NASD
or other filing, all financial and other records, all SEC Documents and other
filings with the SEC, and all other corporate documents and properties of the
Company as may be reasonably necessary for the purpose of such review, and cause
the Company's officers, directors and employees to supply all such information
reasonably requested by the Investor or any such representative, advisor or
underwriter in connection with such Registration Statement (including, without
limitation, in response to all questions and other inquiries reasonably made or
submitted by any of them), prior to and from time to time after the filing and
effectiveness of the Registration Statement for the sole purpose of enabling the
Investor and such representatives, advisors and underwriters and their
respective accountants and attorneys to conduct initial and ongoing due
diligence with respect to the Company and the accuracy of the Registration
Statement.

         Section 8.2       Non-Disclosure of Non-Public Information.

                  (a) The Company shall not disclose non-public information to
the Investor, advisors to or representatives of the Investor unless prior to
disclosure of such information the Company identifies such information as being
non-public information and provides the Investor, such advisors and
representatives with the opportunity to accept or refuse to accept such
non-public information for review. The Company may, as a condition to disclosing
any non-public information hereunder, require the Investor's advisors and
representatives to enter into a confidentiality agreement in form reasonably
satisfactory to the Company and the Investor.

                  (b) Nothing herein shall require the Company to disclose
non-public information to the Investor or its advisors or representatives, and
the Company represents that it does not disseminate non-public information to
any investors who purchase stock in the Company in a public offering, to money
managers or to securities analysts, provided, however, that notwithstanding
anything herein to the contrary, the Company will, as hereinabove provided,
immediately notify the advisors and representatives of the Investor and, if any,
underwriters, of any event or the existence of any circumstance (without any
obligation to disclose the specific event or circumstance) of which it becomes
aware, constituting non-public information (whether or not requested of the
Company specifically or generally during the course of due diligence by such
persons or entities), which, if not disclosed in the prospectus included in the

                                       20
<PAGE>

Registration Statement would cause such prospectus to include a material
misstatement or to omit a material fact required to be stated therein in order
to make the statements, therein, in light of the circumstances in which they
were made, not misleading. Nothing contained in this Section 8.2 shall be
construed to mean that such persons or entities other than the Investor (without
the written consent of the Investor prior to disclosure of such information) may
not obtain non-public information in the course of conducting due diligence in
accordance with the terms of this Agreement and nothing herein shall prevent any
such persons or entities from notifying the Company of their opinion that based
on such due diligence by such persons or entities, that the Registration
Statement contains an untrue statement of material fact or omits a material fact
required to be stated in the Registration Statement or necessary to make the
statements contained therein, in light of the circumstances in which they were
made, not misleading.

                                   ARTICLE IX.
                           CHOICE OF LAW/JURISDICTION

         Section 9.1 Governing Law. This Agreement shall be governed by and
interpreted in accordance with the laws of the State of New Jersey without
regard to the principles of conflict of laws. The parties further agree that any
action between them shall be heard in Hudson County, New Jersey, and expressly
consent to the jurisdiction and venue of the Superior Court of New Jersey,
sitting in Hudson County, New Jersey and the United States District Court of New
Jersey, sitting in Newark, New Jersey, for the adjudication of any civil action
asserted pursuant to this paragraph.

                                   ARTICLE X.
                             ASSIGNMENT; TERMINATION

         Section 10.1 Assignment. Neither this Agreement nor any rights of the
Company hereunder may be assigned to any other Person.

         Section 10.2 Termination. The obligations of the Investor to make
Advance s under Article II hereof shall terminate twenty-four (24) months after
the Effective Date.

                                   ARTICLE XI
                                     NOTICES

         Section 11.1 Notices. Any notices, consents, waivers, or other
communications required or permitted to be given under the terms of this
Agreement must be in writing and will be deemed to have been delivered (i) upon
receipt, when delivered personally; (ii) upon receipt, when sent by facsimile,
provided a copy is mailed by U.S. certified mail, return receipt requested;
(iii) three (3) days after being sent by U.S. certified mail, return receipt
requested, or (iv) one (1) day after deposit with a nationally recognized
overnight delivery service, in each case properly addressed to the party to
receive the same. The addresses and facsimile numbers for such communications
shall be:

                                       21
<PAGE>

If to the Company, to:              Bio-One Corporation
                                    1630 Winter Springs Blvd.
                                    Winter Springs, Florida 32708
                                    Attention:  Armand Dauplaise
                                                President
                                    Telephone:  (407) 977-1005
                                    Facsimile:  (407) 977-1186

With a copy to:                     Newman, Pollock & Klein, LLP
                                    2101 N.W. Corporate Boulevard -  Suite 414
                                    Boca Raton, Florida 33431
                                    Attention:  Irwin Newman, Esq.
                                    Telephone:  (561) 997-9920
                                    Facsimile:  (561) 241-4943

If to the Investor(s):              Cornell Capital Partners, LP
                                    101 Hudson Street -Suite 3606
                                    Jersey City, NJ 07302
                                    Attention:  Mark Angelo
                                                Portfolio Manager
                                    Telephone:  (201) 985-8300
                                    Facsimile:  (201) 985-8266

With a Copy to:                     Butler Gonzalez LLP
                                    1000 Stuyvesant Avenue - Suite 6
                                    Union, NJ 07083
                                    Attention:  David Gonzalez, Esq.
                                    Telephone:  (908) 810-8588
                                    Facsimile:  (908) 810-0973

Each party shall provide five (5) days prior written notice to the other party
of any change in address or facsimile number.

                                  ARTICLE XII.
                                  MISCELLANEOUS

         Section 12.1 Counterparts. This Agreement may be executed in two or
more identical counterparts, all of which shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each
party and delivered to the other party. In the event any signature page is
delivered by facsimile transmission, the party using such means of delivery
shall cause four (4) additional original executed signature pages to be
physically delivered to the other party within five (5) days of the execution
and delivery hereof.

                                       22
<PAGE>

         Section 12.2 Entire Agreement; Amendments. This Agreement supersedes
all other prior oral or written agreements between the Investor, the Company,
their affiliates and persons acting on their behalf with respect to the matters
discussed herein, and this Agreement and the instruments referenced herein
contain the entire understanding of the parties with respect to the matters
covered herein and therein and, except as specifically set forth herein or
therein, neither the Company nor the Investor makes any representation,
warranty, covenant or undertaking with respect to such matters. No provision of
this Agreement may be waived or amended other than by an instrument in writing
signed by the party to be charged with enforcement.

         Section 12.3 Reporting Entity for the Common Stock. The reporting
entity relied upon for the determination of the trading price or trading volume
of the Common Stock on any given Trading Day for the purposes of this Agreement
shall be Bloomberg, L.P. or any successor thereto. The written mutual consent of
the Investor and the Company shall be required to employ any other reporting
entity.

         Section 12.4 Fees and Expenses. The Company hereby agrees to pay the
following fees:

                  (a) Legal Fees. Each of the parties shall pay its own fees and
expenses (including the fees of any attorneys, accountants, appraisers or others
engaged by such party) in connection with this Agreement and the transactions
contemplated hereby, except that the Company will pay the sum of Fifteen
Thousand Dollars ($15,000), to Butler Gonzalez LLP for legal, administrative,
and escrow fees either upon the execution of this Agreement. Subsequently on
each advance date, the Company will pay Butler Gonzalez LLP, the sum of Five
Hundred Dollars ($500) for legal, administrative and escrow fees of Kirkpatrick
& Lockhart LLP directly out the proceeds of any Advances hereunder.

                  (b) Commitment Fees.

                           (i) On each Advance Date the Company shall pay to the
Investor, directly from the gross proceeds held in escrow, an amount equal to
five percent (5%) of the amount of each Advance. The Company hereby agrees that
if such payment, as is described above, is not made by the Company on the
Advance Date, such payment will be made at the direction of the Investor as
outlined and mandated by Section 2.3 of this Agreement.

                           (ii) Upon the execution of this Agreement the Company
shall issue to the Investor shares of the Company' s Common Stock in an amount
equal to Three Hundred Forty Thousand Dollars ($340,000) divided by the Closing
Bid Price on the Closing Date (the "Investor's Shares").

                           (iii) Fully Earned. Any Investor's Shares issued to
the Investor shall be deemed fully earned as of the date hereof.

                           (iv) Registration Rights. The Investor's Shares will
have demand and "piggy-back" registration rights.

         Section 12.5 Brokerage. Each of the parties hereto represents that it
has had no dealings in connection with this transaction with any finder or
broker who will demand payment of any fee or commission from the other party.
The Company on the one hand, and the Investor, on the other hand, agree to
indemnify the other against and hold the other harmless from any and all
liabilities to any person claiming brokerage commissions or finder's fees on
account of services purported to have been rendered on behalf of the
indemnifying party in connection with this Agreement or the transactions
contemplated hereby.

                                       23
<PAGE>

         Section 12.6 Confidentiality. If for any reason the transactions
contemplated by this Agreement are not consummated, each of the parties hereto
shall keep confidential any information obtained from any other party (except
information publicly available or in such party's domain prior to the date
hereof, and except as required by court order) and shall promptly return to the
other parties all schedules, documents, instruments, work papers or other
written information without retaining copies there of, previously furnished by
it as a result of this Agreement or in connection herein.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       24
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Equity Line of
Credit Agreement to be executed by the undersigned, thereunto duly authorized,
as of the date first set forth above.

                                               COMPANY:
                                               BIO-ONE CORPORATION

                                               By: /s/ Armand Dauplaise
                                               --------------------------------
                                               Name: Armand Dauplaise
                                               Title:   President

                                               INVESTOR:
                                               CORNELL CAPITAL PARTNERS, LP

                                               By: Yorkville Advisors, LLC
                                               Its: General Partner

                                               By: /s/ Mark Angelo
                                               --------------------------------
                                               Name:    Mark Angelo
                                               Title: Portfolio Manager

                                       25
<PAGE>

                                    EXHIBIT A
                                    ---------

                      ADVANCE NOTICE/COMPLIANCE CERTIFICATE
                      -------------------------------------

BIO-ONE CORPORATION

The undersigned, ________________________________ hereby certifies, with respect
to the sale of shares of Common Stock of Bio-One Corporation. (the "Company "),
issuable in connection with this Advance Notice and Compliance Certificate dated
___________________ (the "Notice"), delivered pursuant to the Equity Line of
Credit Agreement (the "Agreement"), as follows:

         1. The undersigned is the duly elected President and Chief Executive
Officer of the Company.

         2. There are no fundamental changes to the information set forth in the
Registration Statement which would require the Company to file a post effective
amendment to the Registration Statement.

         3. The Company has performed in all material respects all covenants and
agreements to be performed by the Company on or prior to the Advance Date
related to the Notice and has complied in all material respects with all
obligations and conditions contained in the Agreement.

         4. The Advance requested is _____________________.

         The undersigned has executed this Certificate this ____ day of
_________________.

BIO-ONE CORPORATION

By:      ______________________________

Name:    Armand Dauplaise

Title:   President & CEO

<PAGE>

                                SCHEDULED 2.6(B)
                                ----------------

BIO-ONE CORPORATION
-------------------

         The undersigned hereby agrees that for a period commencing on the date
hereof and expiring on the termination of the Agreement dated ________________
between Bio-One Corporation. (the "Company"), and Cornell Capital Partners, LP,
(the "Investor") (the "Lock-up Period"), he, she or it will not, directly or
indirectly, without the prior written consent of the Investor, issue, offer,
agree or offer to sell, sell, grant an option for the purchase or sale of,
transfer, pledge, assign, hypothecate, distribute or otherwise encumber or
dispose of except pursuant to Rule 144 of the General Rules and Regulations
under the Securities Act of 1933, any securities of the Company, including
common stock or options, rights, warrants or other securities underlying,
convertible into, exchangeable or exercisable for or evidencing any right to
purchase or subscribe for any common stock (whether or not beneficially owned by
the undersigned), or any beneficial interest therein (collectively, the
"Securities").

         In order to enable the aforesaid covenants to be enforced, the
undersigned hereby consents to the placing of legends and/or stop-transfer
orders with the transfer agent of the Company's securities with respect to any
of the Securities registered in the name of the undersigned or beneficially
owned by the undersigned, and the undersigned hereby confirms the undersigned's
investment in the Company.

Dated: _______________, 2002

Signature

Name:
Address:
City, State, Zip Code:
Print Social Security Number
or Taxpayer I.D. Number

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