Document:

Exhibit 4.47

                                 PROMISSORY NOTE

FACE  AMOUNT                                       $276,000
PRICE                                              $230,000
INTEREST  RATE                               0%  per  month
NOTE  NUMBER                           September-  2005-102
ISSUANCE  DATE                         September  30,  2005
MATURITY  DATE                             March  30,  2006

     FOR  VALUE RECEIVED, NeWave, Inc., a Utah corporation (the "Company"), (OTC
BB:  NWAV)  hereby  promises  to  pay DUTCHESS PRIVATE EQUITIES FUND,  L.P. (the
"Holder")  within  the  Maturity  Date,  or  earlier, the Amount  of Two Hundred
Seventy-Six Thousand Dollars ($276,000) U.S., in such amounts, at such times and
on  such  terms  and  conditions  as  are  specified  herein  (this  "Note").

     Any  capitalized  terms  not  defined  in  this  Note  are  defined  in the
Investment  Agreement  for  the  Equity  Line  of Credit between Preston Capital
Partners,  LLC  (the  "Investor")  and the Company (the "Investment Agreement").

Article  1     Method  of  Payment

     Payments  made  by  the  Company  in  satisfaction  of  this  Note  (each a
"Payment,"  and  collectively,  the "Payments") shall be made from each Put from
the  Equity  Line  of  Credit  with  the  Investor  given  by the Company to the
Investor.     The Company shall make payments to the Holder in the amount of One
Hundred  percent (100%) of each Put Amount (the "Payment Amount") until the Face
Amount  is  paid  in  full on all outstanding Promissory Notes currently due and
payable by the Company ("Prior Notes"), minus any fees due.   First payment will
be  due  at the successful Closing of the first Put  ("Payment Date" or "Payment
Dates"),  and  all  subsequent payments will be made at the Closing of every Put
thereafter, until  this Note is paid in full.   Notwithstanding any provision to
the  contrary  in  this Note, the Company may pay in full to the Holder the Face
Amount, or any balance remaining thereof, in readily available funds at any time
and  from  time  to  time  without penalty.  Failure to do so will constitute an
Event  of  Default  under  this Agreement and the Holder may immediately seek to
take  actions  as  described  under  Article  4  of  this  Agreement.

Payments  pursuant  to this Note shall be made directly from the Closing of each
Put  ("Put
Closing")  and  shall  be  wired directly to the Holder from the Investor on the
Closing  Date.

     The  Company  hereby  authorizes the Investor  to make Payments directly to
the Holder upon Closing of each Put.  The Agreement shall serve as authorization
for  disbursement  of any funds from the Equity Line until such time as the Face
Amount  is  received.

Article  2     Collateral

The  Company  does  hereby  agree  to allow the Holder to use the 25 Put Notices
("Collateral")  from  Note  Numbers February 2005 101 and April 2005 101 ("Prior
Notes")  to  the  Investor  as  Collateral  for  this  Note.

Article  3     Unpaid  Amounts

In  the  event  that  on the Maturity Date the Company has any remaining amounts
unpaid  on  this  Note  (the "Residual Amount"), shall cause an Event of Default
under  this  Agreement  and  the  Holder may immediately seek to take actions as
described  under  Article  4  of  this  Agreement.

Article  4     Defaults  and  Remedies

Section  4.1 Events of Default. An "Event of Default" or "Default" occurs if (a)
the Company does not make the Payment of the Face Amount of this Note within two
(2)  business  days  of the applicable Closing of a Put or the Maturity Date, as
applicable, upon redemption or otherwise, (b) the Company, pursuant to or within
the  meaning  of  any  Bankruptcy  Law (as hereinafter defined): (i) commences a
voluntary  case; (ii) consents to the entry of an order for relief against it in
an  involuntary  case;  (iii)  consents  to  the  appointment of a Custodian (as
hereinafter defined) of it or for all or substantially all of its property; (iv)
makes  a  general assignment for the benefit of its creditors; or (v) a court of
competent  jurisdiction enters an order or decree under any Bankruptcy Law that:
(A)  is  for  relief  against the Company in an involuntary case; (B) appoints a
Custodian of the Company or for all or substantially all of its property; or (C)
orders  the liquidation of the Company, and the order or decree remains unstayed
and  in  effect for sixty (60) calendar days; (c) the Company's $0.001 par value
common  stock  (the  "Common  Stock") is suspended or is no longer listed on any
recognized  exchange,  including  an electronic over-the-counter bulletin board,
for  in  excess  of  two  (2)  consecutive trading days; or (d) the registration
statement  for the underlying shares in the Investment Agreement does not remain
effective for any reason or (e) the Company fails to comply with the Articles of
this  Agreement  as  outlined. As used in this Article 4.1, the term "Bankruptcy
Law"  means  Title  11 of the United States Code or any similar federal or state
law for the relief of debtors. The term "Custodian" means any receiver, trustee,
assignee,  liquidator  or  similar  official  under  any  Bankruptcy  Law.

     In  the  Event  of Default, the Holder may elect to secure a portion of the
Company's  assets  not to exceed 200% of the Face Amount of the Note, including,
but not limited to: accounts receivable, cash, marketable securities, equipment,
building,  land  or  inventory.  The  Holder may also elect to garnishee Revenue
from  the  Company  in  an  amount  that  will repay the Holder on the schedules
outlined  in  this  Agreement.

            For  each  Event  of  Default,  as  outlined  in this Agreement, the
Holder  can  exercise  its right to increase the Face Amount of the Debenture by
ten percent (10%) as an initial penalty and for each Event of Default under this
Agreement.  In addition, the Holder may elect to increase the Face Amount by two
and  one-half  percent  (2.5%)  per month paid as a penalty for liquated damages
("Liquidated  Damages").  The  Liquated Damages will be compounded daily.  It is
the  intention  and  acknowledgement of both parties that the Liquidated Damages
not  be  deemed  as  interest.

     In  the  event of a Default , the Holder shall also have the right, but not
the  obligation,  to 1) switch the Residual Amount to a three-year ("Convertible
Maturity  Date"),  10%  interest  bearing  convertible  debenture  at  the terms
described in Article 4.2 (the "Convertible Debenture"). At such time of Default,
the  Convertible  Debenture  shall  be  considered  closed ("Convertible Closing
Date").  If  the  Holder chooses to convert the Residual Amount to a Convertible
Debenture,  the Company shall have twenty (20) business days after notice of the
same  (the  "Notice  of Convertible Debenture") to file a registration statement
covering  an  amount  of  shares  equal  to  300%  of  the Residual Amount. Such
registration  statement  shall be declared effective under the Securities Act of
1933,  as  amended  (the  "Securities  Act"),  by  the  Securities  and Exchange
Commission  (the  "Commission")  within 40 business days of the date the Company
files  such  Registration Statement. In the event the Company does not file such
registration statement within twenty (20) business days of the Holder's request,
or such registration statement is not declared by the Commission to be effective
under  the  Securities Act within the time period described above , the Residual
Amount  shall  increase by $1,000 per day. In the event the Company is given the
option  for  accelerated  effectiveness of the registration statement, it agrees
that it shall cause such registration statement to be declared effective as soon
as reasonably practicable. In the event that the Company is given the option for
accelerated  effectiveness  of  the  registration  statement, but chooses not to
cause  such  registration statement to be declared effective on such accelerated
basis,  the  Residual  Amount shall increase by $1,000 per day commencing on the
earliest  date  as of which such registration statement would have been declared
to  be  effective  if subject to accelerated effectiveness; or 2) the Holder may
increase  the  Payment Amount described under Article 1 to fulfill the repayment
of the Residual Amount. The Company shall provide full cooperation to the Holder
in  directing  funds  owed to the Holder on any Put to the Investor. The Company
agrees  to  diligently  carry out the terms outlined in the Investment Agreement
for  delivery  of  any  such  shares. In the event the Company is not diligently
fulfilling  its  obligation  to direct funds owed to the Holder from Puts to the
Investor,  as  reasonably determined by the Holder, the Holder may, after giving
the  Company  two  (2)  business days' advance notice to cure the same, elect to
increase  the  Residual  Amount  of the Note by 2.5% each day, compounded daily.

Article  4.2  Conversion  Privilege

(a)     The  Holder  shall  have  the right to convert the Convertible Debenture
into  shares  of Common Stock at any time following the Convertible Closing Date
which  is  before  the  close of business on the Convertible Maturity Date.  The
number of shares of Common Stock issuable upon the conversion of the Convertible
Debenture  shall be determined pursuant to Article 4.3, but the number of shares
issuable  shall  be rounded up or down, as the case may be, to the nearest whole
share.

(b)     The Convertible Debenture may be converted, whether in whole or in part,
at  any  time  and  from  time  to  time.

(c)     In  the  event  all  or  any  portion  of  the  Convertible  Debenture
remains  outstanding  on  the  Convertible  Maturity  Date  (the  "Debenture
Residual  Amount"),  the  unconverted portion of such Convertible Debenture will
automatically  be  converted  into  shares  of  Common Stock on such date in the
manner  set  forth  in  Article  4.3.

Article  4.3  Conversion  Procedure.

The Residual Amount may be converted, in whole or in part any time and from time
to  time,  following  the  Convertible  Closing  Date.  Such conversion shall be
effectuated  by  surrendering  to  the Company, or its attorney, the Convertible
Debenture  to  be  converted together with a facsimile or original of the signed
notice  of conversion (the "Notice of Conversion"). The date on which the Notice
of Conversion is effective ("Conversion Date") shall be deemed to be the date on
which  the  Holder  has  delivered to the Company a facsimile or original of the
signed Notice of Conversion, as long as the original Convertible Debenture(s) to
be  converted  are  received  by  the  Company  within  five  (5)  business days
thereafter.  At  such  time  that  the  original  Convertible Debenture has been
received  by  the  Company,  the  Holder  can  elect whether a reissuance of the
Convertible  Debenture  is  warranted,  or  whether  the  Company can retain the
Convertible  Debenture  as  to  a  continual  conversion  by  the  Holder.
Notwithstanding  the  above,  any Notice of Conversion received by 4:00 P.M. EST
shall  be deemed to have been received the following business day (receipt being
via  a  confirmation  of  the  time  such facsimile to the Company is received).

(a)  Common  Stock  to  be  Issued.  Upon  the  conversion  of  any  Convertible
Debentures,  and  upon  receipt by the Company or its attorney of a facsimile or
original of the Holder's signed Notice of Conversion, the Company shall instruct
its  transfer  agent  to issue stock certificates without restrictive legends or
stop  transfer  instructions,  if  at  that time the aforementioned registration
statement  described  in Article 4.1 has been declared effective (or with proper
restrictive  legends  if the registration statement has not as yet been declared
effective), in such denominations to be specified at conversion representing the
number  of  shares of Common Stock issuable upon such conversion, as applicable.
In  the event that the Debenture is aged one year and deemed sellable under Rule
144, the Company shall, upon a Notice of Conversion, instruct the transfer agent
to issue free trading certificates without restrictive legends, subject to other
applicable  securities  laws.  The  Company  is responsible to provide all costs
associated  with  the  issuance  of the shares, including but not limited to the
opinion  letter,  FedEx  of the certificates and any other costs that arise. The
Company  shall  act  as  registrar  and  shall  maintain  an  appropriate ledger
containing the necessary information with respect to each Convertible Debenture.
The  Company  warrants that no instructions, other than these instructions, have
been  given  or  will  be  given to the transfer agent and that the Common Stock
shall  otherwise  be freely resold, except as may be set forth herein or subject
to  applicable  law.

(b) Conversion Rate. Holder is entitled to convert the Debenture Residual Amount
, plus accrued interest, anytime following the Convertible Maturity Date, at the
lesser  of  (i)  75%  of  the average of the lowest closing bid price during the
fifteen (15) trading days immediately preceding the Convertible Maturity Date or
(ii)  75%  of  the lowest bid price for the twenty (20) trading days immediately
preceding  the  Convertible  Maturity  Date  ("Fixed  Conversion  Price").  No
fractional  shares  or  scrip representing fractions of shares will be issued on
conversion,  but  the  number of shares issuable shall be rounded up or down, as
the  case  may  be,  to  the  nearest  whole  share.

(c)     Nothing  contained  in  the  Convertible  Debenture  shall  be  deemed
to  establish  or  require  the  payment  of interest to the Holder at a rate in
excess  of  the  maximum rate permitted by governing law.  In the event that the
rate  of  interest  required  to  be  paid exceeds the maximum rate permitted by
governing  law,  the  rate  of  interest required to be paid thereunder shall be
automatically  reduced to the maximum rate permitted under the governing law and
such  excess  shall  be returned with reasonable promptness by the Holder to the
Company.

(d)     It  shall  be the Company's responsibility to take all necessary actions
and  to  bear  all  such  costs  to  issue  the Common Stock as provided herein,
including  the  responsibility and cost for delivery of an opinion letter to the
transfer  agent,  if  so  required.  Holder shall be treated as a shareholder of
record  on  the  date  Common Stock is issued to the Holder. If the Holder shall
designate  another  person  as  the  entity  in  the  name  of  which  the stock
certificates  issuable  upon  conversion  of the Convertible Debenture are to be
issued  prior  to the issuance of such certificates, the Holder shall provide to
the  Company evidence that either no tax shall be due and payable as a result of
such  transfer  or  that  the applicable tax has been paid by the Holder or such
person. Upon surrender of any Convertible Debentures that are to be converted in
part, the Company shall issue to the Holder a new Convertible Debenture equal to
the  unconverted  amount,  if  so  requested  in  writing  by  the  Holder.

(e) Within five (5) business days after receipt of the documentation referred to
above in Article 4.2, the Company shall deliver a certificate, for the number of
shares  of  Common  Stock issuable upon the conversion. In the event the Company
does  not  make delivery of the Common Stock as instructed by Holder within five
(5)  business  days  after  the  Conversion Date, then in such event the Company
shall  pay  to  the  Holder  one percent (1%) in cash of the dollar value of the
Debenture Residual Amount remaining after said conversion, compounded daily, per
each  day  after the fifth (5th) business day following the Conversion Date that
the  Common  Stock  is  not delivered to the Purchaser. The Company acknowledges
that its failure to deliver the Common Stock within five (5) business days after
the  Conversion  Date  will cause the Holder to suffer damages in an amount that
will  be  difficult  to  ascertain.  Accordingly,  the  parties agree that it is
appropriate  to  include  in  this  Note  a provision for liquidated damages The
parties acknowledge and agree that the liquidated damages provision set forth in
this  section represents the parties' good faith effort to quantify such damages
and,  as  such,  agree  that  the form and amount of such liquidated damages are
reasonable  and will not constitute a penalty. The payment of liquidated damages
shall  not  relieve the Company from its obligations to deliver the Common Stock
pursuant  to  the  terms  of  this  Convertible  Debenture.

(f)  The  Company  shall  at  all  times  reserve  (or  make alternative written
arrangements  for  reservation or contribution of shares) and have available all
Common  Stock  necessary to meet conversion of the Convertible Debentures by the
Holder  of  the entire amount of Convertible Debentures then outstanding. If, at
any time the Holder submits a Notice of Conversion and the Company does not have
sufficient authorized but unissued shares of Common Stock (or alternative shares
of  Common Stock as may be contributed by stockholders of the Company) available
to  effect,  in  full, a conversion of the Convertible Debentures (a "Conversion
Default,"  the  date of such default being referred to herein as the "Conversion
Default  Date"),  the  Company  shall  issue  to the Holder all of the shares of
Common  Stock  which  are  available,  and  the  Notice  of Conversion as to any
Convertible  Debentures  requested  to  be  converted  but  not  converted  (the
"Unconverted  Convertible Debentures"), may be deemed null and void upon written
notice  sent  by  the Holder to the Company. The Company shall provide notice of
such  Conversion  Default  ("Notice  of  Conversion  Default") to the Holder, by
facsimile  within  three  (3)  business  days of such default (with the original
delivered  by  overnight  mail  or  two  day courier), and the Holder shall give
notice  to  the Company by facsimile within five (5) business days of receipt of
the  original  Notice  of  Conversion  Default  (with  the original delivered by
overnight  mail or two day courier) of its election to either nullify or confirm
the  Notice  of  Conversion.

     The  Company  agrees  to  pay  the Holder payments for a Conversion Default
("Conversion  Default  Payments")  in  the  amount  of  (N/365),  multiplied  by
..24,  multiplied  by  the  initial issuance price of the outstanding or tendered
but  not  converted  Convertible  Debentures  held  by the Holder, where N = the
number  of  days  from  the  Conversion  Default  Date  to  the  date  (the
"Authorization  Date") that the Company authorizes a sufficient number of shares
of  Common  Stock  to effect conversion of all remaining Convertible Debentures.
The  Company  shall  send  notice  ("Authorization  Notice")  to the Holder that
additional shares of Common Stock have been authorized, the Authorization  Date,
and  the  amount  of  Holder's accrued Conversion Default Payments.  The accrued
Conversion  Default  shall  be  paid in cash or shall be convertible into Common
Stock  at  the  conversion  rate  set  forth  in  the  first  sentence  of  this
paragraph,  upon  written  notice  sent  by  the  Holder  to  the Company, which
Conversion  Default  shall  be  payable as follows:  (i) in the event the Holder
elects  to  take such payment in cash, cash payments shall be made to the Holder
by  the  fifth  (5th)  day of the following calendar month, or (ii) in the event
Holder elects to take such payment in stock, the Holder may convert such payment
amount into Common Stock at  the conversion rate set forth in the first sentence
of  this  paragraph  at any time after the fifth (5th) day of the calendar month
following  the  month  in which the Authorization Notice was received, until the
expiration  of  the  mandatory  three  (3)  year  conversion  period.

The  Company  acknowledges  that  its failure to maintain a sufficient number of
authorized but unissued shares of Common Stock to effect in full a conversion of
the Convertible Debentures will  cause  the  Holder  to  suffer  damages  in  an
amount  that  will  be  difficult  to  ascertain. Accordingly, the parties agree
that  it  is appropriate to include in this Agreement a provision for liquidated
damages.  The  parties  acknowledge  and  agree  that  the  liquidated  damages
provision set forth in this section represents the parties' good faith effort to
quantify  such  damages  and,  as  such,  agree that the form and amount of such
liquidated  damages  are  reasonable  and  will  not  constitute a penalty.  The
payment of liquidated damages shall not relieve the Company from its obligations
to deliver the Common Stock pursuant to the terms of this Convertible Debenture.

(g) If, by the fifth (5th) business day after the Conversion Date of any portion
of  the  Convertible  Debentures  to  be  converted  (the  "Delivery Date"), the
transfer  agent fails for any reason to deliver the Common Stock upon conversion
by  the  Holder  and  after such Delivery Date, the Holder purchases, in an open
market  transaction or otherwise, shares of Common Stock (the "Covering Shares")
solely  in  order  to make delivery in satisfaction of a sale of Common Stock by
the  Holder  (the "Sold Shares"), which delivery such Holder anticipated to make
using  the Common Stock issuable upon conversion (a "Buy-In"), the Company shall
pay  to  the  Holder, in addition to any other amounts due to Holder pursuant to
this  Convertible  Debenture,  and  not  in  lieu thereof, the Buy-In Adjustment
Amount (as defined below). The "Buy In Adjustment Amount" is the amount equal to
the  excess,  if  any,  of  (x)  the  Holder's  total  purchase price (including
brokerage commissions, if any) for the Covering Shares over (y) the net proceeds
(after  brokerage  commissions,  if any) received by the Holder from the sale of
the  Sold  Shares.  The  Company  shall  pay the Buy-In Adjustment Amount to the
Holder  in  immediately available funds within five (5) business days of written
demand  by  the  Holder.  By  way  of  illustration and not in limitation of the
foregoing,  if  the  Holder  purchases  shares  of  Common  Stock having a total
purchase  price  (including  brokerage commissions) of $11,000 to cover a Buy-In
with  respect to shares of Common Stock it sold for net proceeds of $10,000, the
Buy-In Adjustment Amount which the Company will be required to pay to the Holder
will  be  $1,000.

(h)  The  Company  shall defend, protect, indemnify and hold harmless the Holder
and all of its shareholders, officers, directors, employees, counsel, and direct
or  indirect  investors  and  any  of  the  foregoing  person's  agents or other
representatives  (including,  without  limitation,  those retained in connection
with  the  transactions  contemplated  by  this  Agreement)  (collectively,  the
"Article  4.3(h)  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 Article
4.3(h)  Indemnitee  is a party to the action for which indemnification hereunder
is  sought),  and  including  reasonable  attorneys' fees and disbursements (the
"Article  4.3(h)  Indemnified  Liabilities"),  incurred  by  any  Article 4.3(h)
Indemnitee  as  a  result  of,  or  arising  out  of,  or  relating  to  (i) any
misrepresentation  or  breach  of  any  representation  or  warranty made by the
Company  in  the  Transaction  Documents or any other certificate, instrument or
document  contemplated  hereby  or  thereby,  (ii)  any  breach of any covenant,
agreement,  or  obligation of the Company contained in the Transaction Documents
or  any  other  certificate,  instrument,  or  document  contemplated  hereby or
thereby,  (iii) any cause of action, suit, or claim brought or made against such
Article  4.3(h) Indemnitee by a third party and arising out of or resulting from
the  execution,  delivery,  performance,  or  enforcement  of  the  Transaction
Documents  or any other certificate, instrument, or document contemplated hereby
or thereby, (iv) any transaction financed or to be financed in whole or in part,
directly  or  indirectly,  with the proceeds of the issuance of the Common Stock
underlying  the  Convertible  Debenture ("Securities"), or (v) the status of the
Holder or holder of the Securities as an investor in the Company, except insofar
as  any  such  misrepresentation, breach or any untrue statement, alleged untrue
statement,  omission,  or  alleged  omission  is  made  in  reliance upon and in
conformity  with  written  information furnished to the Company by the Holder or
the  Investor which is specifically intended by the Holder or the Investor to be
relied  upon  by  the  Company, including for use in the preparation of any such
registration  statement,  preliminary  prospectus, or prospectus, or is based on
illegal trading of the Common Stock by the Holder or the Investor. 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 that is permissible under
applicable  law.  The indemnity provisions contained herein shall be in addition
to  any  cause  of  action  or  similar  rights  the  Holder  may  have, and any
liabilities  the  Holder  may  be  subject  to.

Article  5     Registration

     The  Company agrees not to file any registration statement (including those
on Form S-8) without  the  prior  written  approval  of  the  Holder.    In  the
event  the  Company  does  file  a  registration  statement  without the express
written  consent  of the Holder, it shall be deemed an Event of Default, and the
Holder  may  elect to take actions under Article 4.  The Company must also issue
the Holder an equal number of Shares included in the Registration Statement as a
additional  penalty  for  liquidated  damages.

Article  6     Mergers

     The  Company  shall  not  consolidate  or  merge  into,  or transfer all or
substantially  all  of  its assets to, any person, unless such person assumes in
writing  the  obligations  of  the Company under this Note and immediately after
such  transaction  no  Event  of  Default  exists.  Any  reference herein to the
Company  shall  refer  to  such  surviving  or  transferee  corporation  and the
obligations of the Company shall terminate upon such written assumption. Failure
to do so will constitute an Event of Default under this Agreement and the Holder
may  immediately  seek  to  take  actions  as  described under Article 4 of this
Agreement.

Article  7     Additional  Financing

     The Company will not enter into any additional financing agreements without
prior expressed written consent from the Holder, which shall not be unreasonably
withheld.  In  the  Event  the  Company  does  enter  into  another  financing
arrangement without written consent it will constitute an Event of Default under
this  Agreement and the Holder may immediately seek to take actions as described
under  Article  4  of  this  Agreement.

Article  8     Notice

     Any  notices,  consents,  waivers  or  other  communications  required  or
permitted  to  be given under the terms of this Note 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  confirmation  of
transmission is mechanically or electronically generated and kept on file by the
sending  party); or (iii) 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:

If  to  the  Company:
Michael  Hill,  Chief  Executive  Officer
NeWave,  Inc.
30  South  La  Patera  #7
Goleta,  Ca  93117
Telephone:  (805)  964-9202
Facsimile:  (805)  964-9232

If  to  the  Holder:
Dutchess  Private  Equities  Fund,  II,  LP  Douglas  Leighton
50  Commonwealth  Ave,  Suite  2
Boston,  MA  02116
(617)  301-4700

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

Article  9     Time

     Where  this  Note  authorizes  or  requires  the  payment  of  money or the
performance of a condition or obligation on a Saturday or Sunday or a holiday in
which  the United States Stock Markets ("US Markets") are closed ("Holiday"), or
authorizes or requires the payment of money or the performance of a condition or
obligation  within,  before  or  after  a period of time computed from a certain
date,  and such period of time ends on a Saturday or a Sunday or a Holiday, such
payment  may be made or condition or obligation performed on the next succeeding
business  day,  and  if the period ends at a specified hour, such payment may be
made  or condition performed, at or before the same hour of such next succeeding
business  day,  with  the  same  force  and  effect  as  if made or performed in
accordance  with  the  terms of this Note.  A "business day" shall mean a day on
which  the  US  Markets  are  open  for  a  full  day  or  half  day of trading.

Article  10     No  Assignment

This  Note  shall  not  be  assigned.

Article  11     Rules  of  Construction.

     In  this Note, unless the context otherwise requires, words in the singular
number  include the plural, and in the plural include the singular, and words of
the  masculine gender include the feminine and the neuter, and when the tense so
indicates,  words of the neuter gender may refer to any  gender.    The  numbers
and  titles  of  sections  contained  in  the  Note  are  inserted  for
convenience of reference only, and they neither form a part of this Note nor are
they to be used in the construction or interpretation hereof.  Wherever, in this
Note,  a determination of the Company is required or allowed, such determination
shall  be made by a majority of the Board of Directors of the Company and, if it
is  made  in good faith, it shall be conclusive and binding upon the Company and
the  Holder.

Article  12     Governing  Law

     The  validity,  terms,  performance  and  enforcement of this Note shall be
governed  and construed by the provisions hereof and in accordance with the laws
of  the  Commonwealth  of  Massachusetts  applicable  to  agreements  that  are
negotiated,  executed,  delivered  and  performed  solely in the Commonwealth of
Massachusetts.

Article  13     Litigation

The  parties  to  this  agreement  will  submit  all disputes arising under this
agreement  to arbitration in Boston, Massachusetts before a single arbitrator of
the  American  Arbitration Association ("AAA"). The arbitrator shall be selected
by  application  of the rules of the AAA, or by mutual agreement of the parties,
except that such arbitrator shall be an attorney admitted to practice law in the
Commonwealth  of  Massachusetts.  No  party to this agreement will challenge the
jurisdiction  or  venue  provisions  as  provided  in  this  section.

Article  14     Reserved

Article  15     Reserved

Article  16     Indemnification

     In  consideration  of  the  Holder's  execution  and  delivery  of  this
Agreement  and  the  acquisition and funding by the Holder of the Note hereunder
and  in  addition to all of the Company's other obligations  under the documents
contemplated  hereby,  the  Company  shall  defend,  protect, indemnify and hold
harmless the Holder and all of its shareholders, officers, directors, employees,
counsel,  and  direct  or  indirect  investors and any of the foregoing person's
agents  or  other representatives (including, without limitation, those retained
in  connection  with  the  transactions  contemplated  by  this  Agreement)
(collectively,  the  "Indemnities") 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  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 any Indemnitee as a result of, or
arising  out  of,  or  relating  to  (i)  any misrepresentation or breach of any
representation  or  warranty  made  by  the  Company  in  the Note, or any other
certificate,  instrument  or  document  contemplated  hereby  or  thereby  (ii)
any  breach  of  any  covenant,  agreement  or  obligation  of  the  Company
contained  in  the  Note  or  any  other  certificate,  instrument  or  document
contemplated  hereby  or  thereby,  except  insofar  as  any  such
misrepresentation,  breach  or  any  untrue statement, alleged untrue statement,
omission  or  alleged  omission  is made in reliance upon and in conformity with
written  information furnished to the Company by, or on behalf of, the Holder or
is  based  on  illegal  trading of the Common Stock by the Holder. 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 that is permissible
under  applicable  law.  The  indemnity  provisions contained herein shall be in
addition  to  any cause of action or similar rights the Holder may have, and any
liabilities  the  Holder  may  be  subject  to.

Article  17      Holder  Shares

     The  Company  shall issue Seventy thousand (70,000) shares of unregistered,
restricted  Common  Stock  to  the  Holder  as  an  incentive for the investment
("Shares").  The  Shares shall be issued and delivered immediately to the Holder
and  shall carry piggyback registration rights.  In the event the Shares are not
registered  in  the  next  registration  statement, the Company shall pay to the
Holder,  as  a  penalty, ten thousand (10,000) additional shares of common stock
for each time a registration statement is filed and the Shares are not included.
The  Holder retains the right to waive such penalty, in the event Holder chooses
to  do  so.

Article  18       Use  of  Proceeds

This  shall  not  to  be  used  to  pay  down  long-term  debt  to any financial
institution

Article  19       Senior  Obligation

     The  Company  shall  cause  this  Note  and  all  other  existing Notes and
Debentures with the Holder ("Holder's Debt") to be senior in right of payment to
all  other  Indebtedness  of  the  Company.

Article  20        Document  Preparation  Expense

The  Company  shall  pay  to  Dutchess  Advisors,  LLC  ten  thousand  dollars
($10,000)
directly  from  closing,  for  the  preparation  of  documents.

Article  21  Prior  Notes  with  Holder

     At such time as this Note is paid off in full, the Company agrees to resume
and  maintain  the schedule of Payments for Prior Notes as outlined in Article 1
("Method  of  Payment")  of  this
Note  (August  2005  -  102)

WHILE THERE IS AN OUTSTANDING BALANCE ON THIS NOTE AND ALL PRIOR NOTES WITH THE
HOLDER, THE TERMS AND CONDITIONS DEFINED IN THE ARTICLES HEREIN SHALL SUPERCEDE
ALL OTHER AGREEMENTS AND REPRESENTATIONS, WHETHER WRITTEN AND ORAL, BETWEEN THE
    HOLDER AND THE COMPANY SPECIFICALLY WITH RESPECT TO ARTICLE 1 ("METHOD OF
   PAYMENT") DEFINED IN PRIOR NOTES AND THE COMPANY SHALL INSTEAD COMPLY WITH
 ARTICLE 21 DEFINED ABOVE WITH RESPECT TO ALL FUTURE PAYMENTS. THE HOLDER SHALL
 HAVE THE RIGHT TO DIRECT PAYMENTS TOWARD THIS NOTE OR ANY OTHER NOTE WHILE ANY
                             NOTES ARE OUTSTANDING.

Any  misrepresentations  shall  be  considered  a  breach  of  contract and will
constitute  an  Event  of  Default  under  this  Agreement  and  the  Holder may
immediately seek to take actions as described under Article 4 of this Agreement.
                                      *****

BY SIGNING THIS NOTE, THE HOLDER AND COMPANY AGREE TO VOID THE PRIOR NOTE SIGNED
ON  THE  SAME  DAY  WITH  A  FACE  AMOUNT  OF  $264,000.

IN WITNESS WHEREOF, the Company has duly executed this Note as of the date first
written  above.

                                        NEWAVE, INC.

                                                 By  /s/ Michael Hill
                                                 Name:     Michael Hill
                                                 Title: Chief Executive  Officer

                                        DUTCHESS  PRIVATE EQUITIES  FUND,  L.P.
                                        BY  ITS  GENERAL PARTNER  DUTCHESS
                                        CAPITAL  MANAGEMENT, LLC

                                                 By:  /s/  Douglas H. Leighton
                                                      ------------------------
                                                 Name:  Douglas  H.  Leighton
                                                 Title:  A  Managing Memberex101

    
      

LINE
      OF CREDIT AGREEMENT

    

    THIS
      ACCOUNTS RECEIVABLE PURCHASE AGREEMENT (the “Agreement”) is made as of
      the day
      of
      October, 31st, 2005 by and between Mosaic Financial Services, LLC, a
      Delaware limited liability company, (the
      “Provider”) having a business address at [Address]
      and
      eRXSYS, Inc., a Nevada Corporation, (the “Company”) having its principal place
      of business and executive offices at 18021 Sky Park Circle, Suite G2, Irvine,
      California 92614-6570.

     

    W
      I T N E S S E T H:

    

    WHEREAS,
      the
      Provider is in the trade or business of advancing funds for businesses for
      a
      fee;

    

    WHEREAS,
      the
      Company desires to avail itself of the services of the Provider under the terms
      and conditions of this Agreement; and

    

    WHEREAS,
      the
      Provider wishes to advance funds to the Company under the terms and conditions
      of this Agreement.

    

    NOW
      THEREFORE, in
      consideration of the mutual promises contained in this Agreement, the
      sufficiency and receipt of which are hereby acknowledged, the parties agree
      as
      follows:

    

    1. Definitions.
      When
      used
      herein, the following terms shall have the following meanings.

    

    1.1. “Account
      Balance”shall
      mean, on any given day, the gross amount of all Pledged Receivables unpaid
      on
      that day.

    

    1.2.
      “Account
      Debtor”shall
      have the meaning set forth in New York Uniform Commercial Code (hereinafter,
      “NYUCC”) Section 9-102(a)(3) and shall include any person liable on any Pledged
      Receivable, including without limitation, any guarantor of the Pledged
      Receivable and any issuer of a letter of credit or banker’s
      acceptance.

    

    1.3. “Adjustments”shall
      mean all discounts, allowances, returns, disputes, counterclaims, offsets,
      defenses, rights of recoupment, rights of return, warranty claims, or short
      payments, asserted by or on behalf of any Account Debtor with respect to any
      Pledged Receivable.

    

    1.4. “Advance”
      shall
      have the meaning set forth in Section 2.2 hereof.

    

    1.5. “Collateral”
      shall
      have the meaning set forth in Section 8 hereof

    

    1.6. “Collections”shall
      mean all good funds received by the Provider from or on behalf of an Account
      Debtor with respect to Pledged Receivables.

     

    1.7. “Compliance
      Certificate”shall
      mean a certificate, in a form provided by the Provider to the Company, which
      contains the certification of the chief financial officer of the

    Company
      that, among other things, the representations and warranties set forth in this
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Agreement
      are true and correct as of the date such certificate is delivered.

    

    1.8. “Event
      of Default”shall
      have the meaning set forth in Section 9 hereof

    

    1.9. “Finance
      Charges”shall
      have the meaning set forth in Section 3.2 hereof

    

    1.10. “Obligations”shall
      mean all advances, financial accommodations, liabilities, obligations, covenants
      and duties owing, arising, due or payable by the Company to the Provider of
      any
      kind or nature, present or future, arising under or in connection with this
      Agreement or under any other document, instrument or agreement, whether or
      not
      evidenced by any note, guarantee or other instrument whether arising on account
      or by overdraft, whether direct or indirect (including those acquired by
      assignment) absolute or contingent, primary or secondary, due or to become
      due,
      now owing or hereafter arising, and however acquired; including, without
      limitation, all Advances, Finance Charges, fees, expenses, professional fees
      and
      attorney’s fees and any other sums chargeable to the Company hereunder or
      otherwise.

    

    1.11. “Pledged
      Receivables”shall
      mean all those accounts, receivables, chattel paper, instruments, contract
      rights, documents, general intangibles, letters of credit, drafts, bankers
      acceptances, and rights to payment, and all proceeds thereof (all of the
      foregoing being referred to as “receivables”), arising out of the invoices and
      other agreements to which the Company has a right to collect from an Account
      Debtor for the first time on a date when there is an unpaid Advance
      outstanding.

    

    1.12. “Refund”shall
      have the meaning set forth in Section 3.5 hereof.

    

    1.13. “Reconciliation
      Date”shall
      mean the last calendar day of each calendar month.

    

    2. Draw
      upon Line of Credit; transfer of Receivables.

    

    2.1 
      Activation. A
      line of
      credit (the “Line of Credit”) in the maximum amount of up to ONE MILLION DOLLARS
      ($1,000,000) is hereby activated in favor the Company effective on the date
      of
      this Agreement.

    

    2.2. Draws
      upon Line of Credit. During
      the Term hereof, provided that there does not then exist any Event of Default
      or
      any event that with notice, lapse of time or otherwise would constitute an
      Event
      of Default, the Company may request a draw upon the line of credit against
      the
      receivables granted hereby (hereinafter, an “Advance”).

    

    2.3. Acceptance
      of Receivables. All
      receivables due to the Company on Account Balances which become due for the
      first time on a date when there is an outstanding and unpaid Advance due to
      the
      Provider shall become a Pledged Receivable. It shall be a condition to each
      Advance that (a) all of the representations and warranties set forth in Section
      8 of this Agreement be true and correct on and as of the date of the Advance
      as
      though made at and as of each such date, and (b) no Event of Default or any
      event or condition that with notice, lapse of time or otherwise would constitute
      an Event of Default shall have occurred and be continuing, or would result
      from
      such Advance.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    2.4. Effectiveness
      of Pledge to the Provider. Effective
      upon the Provider’s payment of an Advance, and in consideration therefore and in
      consideration of the covenants of this Agreement, the Company hereby absolutely
      sells, transfers and assigns to the Provider, all of the Company’s right, title
      and interest in and to each Pledged Receivable and all funds due or which may
      become due on or with respect to such Pledged Receivable. The Provider shall
      be
      the absolute owner of each Pledged Receivable until such time as all outstanding
      Advances and Obligations have been repaid to the Provider. The Provider shall
      have, with respect to any goods related to the Pledged Receivable, all the
      rights and remedies of an unpaid the Company under the NYUCC and other
      applicable law, including the rights of replevin, claim and delivery,
      reclamation and stoppage in transit.

    

    2.5 Commitment
      Fee.
      On the
      date of this Agreement, the Company shall pay to the Provider a one time
      commitment fee (the “Commitment Fee”) equal to THREE PERCENT (3%) of the initial
      amount of the Line of Credit.

    

    3. Collections,
      Finance Charges and Remittances.

    

    3.1. Collections.
      Upon
      receipt by the Provider of Collections, the Provider shall promptly credit
      such
      Collections to the Company’s Account Balance on a daily basis; provided, that if
      the Company is in default under this Agreement, the Provider shall apply all
      Collections to the Company’s Obligations hereunder in such order and manner as
      the Provider may determine. If an item of Collection is not honored or the
      Provider does not receive good funds for any reason, the amount shall be
      included in the Account Balance as if the Collections had not been received
      and
      Finance Charges under Section 3.2 shall continue to accrue thereon.

    

    3.2. Finance
      Charges.
      On
      each
      Reconciliation Date the Company shall pay to the Provider a Finance Charge
      in
      the amount of ONE AND ONE HALF PERCENT (1.50%) of the amount of the then
      available Line of Credit. The Provider shall deduct the accrued Finance Charges
      from the Advances. In addition, the Company agrees to reimburse the Provider
      for
      the cost of wire transfers at the rate of THIRTY DOLLARS ($30.00) for each
      transfer, and TWENTY DOLLARS ($20.00) for the delivery of documents by overnight
      courier.

    

    3.3. Accounting.
      The
      accrued Finance Charge for the preceding month shall be due and payable by
      the
      Company on or before the SEVENTH (7th)
      calendar day following the close of each month. In the event that an amount
      aside from the Finance Charge is due the Provider, the Company shall issue
      its
      draft to the Provider for the full amount due. All payments due hereunder shall
      be made in the manner, and subject o the provisions of Section 4.2 hereof,
      and
      shall be subject to the Provider’s rights of offset and recoupment.

     

    4. Recourse
      and Repurchase Obligations.

    

    4.1. Recourse.
      The
      Provider’s acquisition of Pledged Receivables from the Company shall be with
      full recourse against the Company. In the event the Obligations exceed the
      amount of Pledged Receivables and Collateral, the Company shall be liable for
      any deficiency.

    

    4.2. Company’s
      Payment of the Amounts Due the Provider. When
      any
      amount 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

      owing
        to
        the Provider becomes due, the Provider shall inform the Company of the manner
        of
        payment which may be any one or more of the following in the Provider’s sole
        discretion: (a) in cash immediately upon demand therefor; (b) by delivery
        of
        additional receivables which shall thereupon become Pledged Receivables;
        (c) by
        deduction from or offset against the amount that otherwise would be forwarded
        to
        the Company in respect of any further Advances that may be made by the Provider;
        or (f) by any combination of the foregoing as the Provider may in its sole
        discretion choose from time to time.

    

    

    5. Power
      of Attorney. The
      Company does hereby irrevocably appoint the Provider and its successors and
      assigns as the Company’s true and lawful attorney in fact, and hereby authorizes
      the Provider, regardless of whether there has been an Event of Default, (a)
      to
      sell, assign. transfer, pledge, compromise, or discharge the whole or any part
      of the Pledged Receivables; (b) to demand, collect, receive, sue, and give
      releases to any Account Debtor for the funds due or which may become due upon
      or
      with respect to the Pledged Receivables and to compromise, prosecute, or defend
      any action, claim, case or proceeding relating to the Pledged Receivables,
      including the filing of a claim or the voting of such claims in any bankruptcy
      case, all in the Provider’s name or the Company’s name, as the Provider may
      choose; (c) to prepare, file and sign the Company’s name on any notice, claim,
      assignment, demand. draft, or notice of or satisfaction of lien or mechanic’s
      lien or similar document with respect to Pledged Receivables; (d) to notify
      all
      Account Debtors with respect to the Pledged Receivables to pay the Provider
      directly; (e) to receive, open, and dispose of all mail addressed to the Company
      for the purpose of collecting the Pledged Receivables: (f) to endorse the
      Company’s name on any checks or other forms of payment on the Pledged
      Receivables; (g) to execute on behalf of the Company any and all instruments,
      documents, financing statements and the like to perfect the Provider’s interests
      in the Pledged Receivables and Collateral; and (h) to do all acts and things
      necessary or expedient, in furtherance of any such purposes. If the Provider
      receives a check or item which is payment for both a Pledged Receivable and
      another receivable, the funds shall first be applied to the Pledged Receivable
      and, so long as there does not exist an Event of Default or an event that with
      notice, lapse of time or otherwise would constitute an Event of Default, the
      excess shall be remitted to the Company. Upon the occurrence and continuation
      of
      an Event of Default all of the power of attorney rights granted by the Company
      to the Provider hereunder shall be applicable with respect to all Pledged
      Receivables and all Collateral.

    

    
      6. Representations,
        Warranties and Covenants.

    

    

    6.1. Receivables
      Warranties, Representations and Covenants. To
      induce
      the Provider to service Pledged Receivables and to renders its services to
      the
      Company, and with full knowledge that the truth and accuracy of the following
      are being relied upon by the Provider in determining whether to accept
      receivables as Pledged Receivables. The Company represents, warrants, covenants
      and agrees, with respect to each Pledged Receivable, that:

    

    (A)  The
      Company is the absolute owner of each Pledged Receivable and has full legal
      right to sell, transfer and assign such receivables;

    

    (B)  The
      correct amount of each Pledged Receivable is as set forth in the invoice which
      corresponds thereto and is not in dispute;

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (C)  The
      payment of each receivable is not contingent upon the fulfillment of any
      obligation or contract, past or future and any and all obligations required
      of
      the Company have been fulfilled as of the date of the rendering of the services
      giving rise to the Pledged Receivable;

    

    (D)  Each
      receivable is based on an actual sale and delivery of goods and/or services
      actually rendered, is presently due and owing to the Company, is not past due
      or
      in default, has not been previously sold, assigned, transferred, or pledged,
      and
      is free of any and all liens, security interests and encumbrances other than
      liens, security interests or encumbrances in favor of the Provider or an
      affiliate of the Provider;

    

    (E)  There
      are
      no defenses, offsets, or counterclaims against any of the receivables, and
      no
      agreement has been made under which the Account Debtor may claim any deduction
      or discount, except as otherwise identified by the Company;

    

    (F)  Each
      Pledged Receivable shall be the property of the Provider and shall be collected
      by the Provider, but if for any reason it should be paid to the Company, the
      Company shall promptly notify the Provider of such payment, shall hold any
      checks, drafts, or funds so received in trust for the benefit of the Provider,
      and shall promptly transfer and deliver the same to the Provider;

    

    (G)  Provider
      shall have the right of endorsement, and also the right to require endorsement
      by the Company, on all payments received in connection with each Pledged
      Receivable and any proceeds of Collateral;

    

    (H)  Company,
      and to the Company’s best knowledge, each Account Debtor of a Pledged
      Receivable, are and shall remain solvent as that term is defined in the United
      States Bankruptcy Code and the NYUCC, and no such Account Debtor has filed
      or
      had filed against it a voluntary or involuntary petition for relief under the
      United States Bankruptcy Code;

    

    (I)  Each
      Account Debtor of a Pledged Receivable will not object to the payment for,
      or
      the quality or the quantity of the subject matter of, the receivable and is
      liable for the amount set forth on each invoice;

    

    (J)  Each
      Account Debtor shall promptly be notified by the Company, after acceptance
      by
      the Provider, that the Pledged Receivable has been transferred to and is payable
      to the Provider, and the Company shall not take or permit any action to
      countermand such notification; and

    

    (K)  All
      receivables forwarded to and accepted by the Provider after the date hereof,
      and
      thereby becoming Pledged Receivables, shall comply with each and every one
      of
      the foregoing representations, warranties, covenants and agreements referred
      to
      above in this Section 6.1.

    

    6.2. Additional
      Warranties, Representations and Covenants. In
      addition to the 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

      foregoing
        warranties, representations and covenants, to induce the Provider to buy
        receivables and to render its services to the Company, the Company hereby
        represents, warrants, covenants and agrees that:

    

    

    (A)  Company
      will not assign, transfer, sell, or grant, or permit any lien or security
      interest in any Pledged Receivables or Collateral to or in favor of any other
      party, without the Providers prior written consent;

    

    (B)  The
      Company’s name, form of organization, chief executive office, and the place
      where the records concerning all Pledged Receivables and Collateral are kept
      is
      set forth at the beginning of this Agreement. Collateral is located only at
      the
      location set forth in the beginning of this Agreement, or, if located at any
      additional location, as set forth on a schedule attached to this Agreement,
      and
      the Company will give the Provider at least thirty (30) days prior written
      notice if such name, organization, chief executive office or other locations
      of
      Collateral or records concerning Pledged Receivables or Collateral is changed
      or
      added and shall execute any documents necessary to perfect the Provider’s
      interest in the Pledged Receivables and the Collateral;

    

    (C)  Company
      shall (i) pay all of its normal gross payroll for employees, and all federal
      and
      state taxes, as and when due, including without limitation all payroll,
      withholding, income and state sales taxes; (ii) deliver at any time and from
      time to time at the Provider’s request, evidence satisfactory to the Provider
      that all such amounts have been paid to the proper taxing authorities; and
      (iii)
      if requested by the Provider, pay its payroll and related taxes through a bank
      or an independent payroll service acceptable to the Provider;

    

    (D)  Company
      has not, as of the time the Company delivers to the Provider a Pledged
      Receivable, or as of the time the Company accepts any Advance from the Provider,
      filed a voluntary petition for relief under the United States Bankruptcy Code
      or
      had filed against it an involuntary petition for relict;

    

    (E)  If
      the
      Company owns, holds or has any interest in, any copyrights (whether registered,
      or unregistered), patents or trademarks, and licenses of any of the foregoing,
      such interest has been disclosed to the Provider and is specifically listed
      and
identified
      on a schedule to this Agreement, and the Company shall immediately notify
      the
      Provider
      if the Company hereafter obtains any interest in any additional copyrights,
      patents, trademarks or licenses that are significant in value or are material
      to
      the conduct of its business;

    

    (F)  Company
      shall provide the Provider with a Compliance Certificate (i) on a quarterly
      basis to be received by the Provider no later than the FIFTH (5th) calendar
      day
      following each calendar quarter, and; (ii) on a more frequent or other basis
      if
      and as requested by the Provider;

    

    (G)  The
      Company shall provide the Provider with an aged accounts receivable listing
      upon
      request; and

    

    (H)  On
      request by the Provider, the Company will promptly furnish any information
      

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

       

      the
        Provider may reasonably request to determine the financial condition of the
        Company including, but not limited to, all of the Company’s Obligations, and the
        condition of any of the Company’s receivables which may include but are not
        limited to Pledged Receivables.

    

    

    7. Adjustments.
      In
      the
      event of a breach of any of the representations, warranties, or covenants set
      forth in Section 6.1, or in the event any Adjustment or dispute is asserted
      by
      any Account Debtor, the Company shall promptly advise the Provider and shall,
      subject to the Provider’s approval, resolve such disputes and advise the
      Provider of any adjustments. Unless the disputed Pledged Receivable is
      repurchased by the Company and the full Repurchase Amount is paid, the Provider
      shall remain the absolute owner of any Pledged Receivable which is subject
      to
      Adjustment or repurchase under Section 4.2 hereof, and any rejected, returned,
      or recovered personal property, with the right to take possession thereof at
      any
      time. If such possession is not taken by the Provider, the Company is to resell
      it for the Provider’s account at the Company’s expense with the proceeds made
      payable to the Provider. While the Company retains possession of said returned
      goods, the Company shall segregate said goods and mark them property of the
      Provider.

    

    8. Security
      Interest. To
      secure
      the prompt payment and performance to the Provider of all of the Obligations,
      the Company hereby grants to the Provider a continuing lien upon and security
      interest in all of the Company’s now existing or hereafter arising rights and
      interest in the following, whether now owned or existing or hereafter created,
      acquired, or arising, and wherever located (collectively, the
“Collateral”):

    

    (A) All
      accounts, receivables, contract rights, chattel paper, instruments, documents,
      letters of credit, bankers acceptances, drafts, checks, cash, securities, and
      general intangibles (including, without limitation, all claims, causes of
      action, deposit accounts, guaranties, rights in and claims under insurance
      policies (including rights to
      

premium
      refunds), rights to tax refunds, copyrights, patents, trademarks, rights In
      and
      under license agreements, and all other intellectual property;

    

    (B) All
      inventory, including the Company’s rights to any returned or rejected goods,
      with respect to which the Provider shall have all the rights of any unpaid
      the
      Company, including the rights of replevin, claim and delivery, reclamation,
      and
      stoppage in transit;

    

    (C) All
      funds, refunds and other amounts due the Company, including, without limitation,
      amounts due the Company under this Agreement (including the Company’s right of
      offset end recoupment);

    

    (D) All
      equipment, machinery, furniture, furnishings, fixtures, tools, supplies and
      motor vehicles;

    

    (E) All
      farm
      products, crops, timber, minerals and the like (including oil and
      gas);

    

    (F) All
      accessions to, substitutions for, and replacements of, all of the
      foregoing;

    

    (G) All
      books
      and records pertaining to all of the foregoing; and

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (H) All
      proceeds of the foregoing, whether due to voluntary or involuntary disposition,
      including insurance proceeds. The Company is not authorized to sell, assign,
      transfer or otherwise convey any Collateral without the Provider’s prior written
      consent, except for the sale of finished inventory in the Company’s usual course
      of business. The Company agrees to sign UCC financing statements, in a form
      acceptable to the Provider, and any other instruments and documents requested
      by
      the Provider to evidence, perfect, or protect the interests of the Provider
      in
      the Collateral. The Company agrees to deliver to the Provider the originals
      of
      all instruments, chattel paper and documents evidencing or related to Pledged
      Receivables and Collateral.

    

    9. Default.
      The
      occurrence of any one or more of the following shall constitute an Event of
      Default hereunder,

    

    (A) Company
      fails to pay any amount owed to the Provider as and when due;

    

    (B) There
      shall be commenced by or against the Company any voluntary or involuntary case
      under the United States Bankruptcy Code, or any assignment for the benefit
      of
      creditors, or appointment of a receiver or custodian for any of its
      assets;

    

    (C) Company
      shall become insolvent in that its debts are greater than the fair value of
      its
      assets, or the Company is generally not paying its debts as they become due
      or
      is left with unreasonably small capital;

    

    
      

(D) Any
      involuntary lien, garnishment, attachment or the like is issued against or
      attaches to the Pledged Receivables or any Collateral;

    

    (E) Company
      shall breach any covenant, agreement, warranty, or representation set forth
      herein, and the same is not cured to the Provider’s satisfaction within ten (10)
      days after the Provider has given the Company oral or written notice thereof;
      provided, that if such breach is incapable of being cured it shall constitute
      an
      immediate default hereunder;

     

    (F) An
      event
      of default shall occur under any guaranty executed by any guarantor of the
      Obligations of the Company to the Provider under this Agreement, or any material
      provision of any such guaranty shall for any reason cease to be valid or
      enforceable or any such guaranty shall be repudiated or terminated, including
      by
      operation of law;

     

    (G) A
      default
      or event of default shall occur under any agreement between the Company and
      any
      creditor of the Company that has entered into a subordination agreement with
      the
      Provider: or

     

    (H) Any
      creditor that has entered into a subordination agreement with the Provider
      shall
      breach any of the terms of or not comply with such subordination
      agreement.

     

    10.
      Remedies
      Upon Default. Upon
      the
      occurrence of an Event of Default, (a) without implying any obligation to buy
      receivables, the Provider may cease buying receivables or 

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    extending
      any financial accommodations to the Company; (b) all or a portion of the
      Obligations shall be, at the option of and upon demand by the Provider, or
      with
      respect to an Event of Default described in Section 9(B), automatically and
      without notice or demand, due and payable in full; and (c) the Provider shall
      have and may exercise all the rights and remedies under this Agreement and
      under
      applicable law, including the rights and remedies of a secured party under
      the
      NYUCC, all the power of attorney rights described in Section 5 with respect
      to
      all Collateral, and the right to collect, dispose of, sell, lease, use, and
      realize upon all Pledged Receivables and all Collateral in any commercially
      reasonable manner. The Company and the Provider agree that any notice of sale
      required to be given to the Company shall be deemed to be reasonable if given
      FIVE (5) days prior to the date on or after which the sale may be
      hold.

     

    11. Accrual
      of Interest. If
      any
      amount owed by the Company hereunder is not paid when due, such amounts shall
      bear interest at a per annum rate equal to the per annum rate of the Finance
      Charges for Pledged Receivables outstanding for less than 30 days, until the
      earlier of (i) payment in good funds or (ii) entry of a final judgment thereof;
      at which time the principal amount of any money judgment remaining unsatisfied
      shall accrue interest at the highest rate allowed by applicable
      law.

    

    12. Fees,
      Costs and Expenses; Indemnification. The
      Company will pay to the Provider immediately upon demand all fees, costs and
      expenses (including fees ofattorneys
      and professionals and their costs and expenses) that the Provider incurs or
      may
      from time to time impose in connection with any of the following: (a) preparing,
      negotiating, administering, and enforcing this Agreement or any other agreement
      executed in connection herewith, including any amendments, waivers or consents
      in connection with any of the foregoing, (b) any litigation or dispute (whether
      instituted by the Provider, the Company or any other person) in any way relating
      to the Pledged Receivables, the Collateral, this Agreement or any other
      agreement executed in connection herewith or therewith, (d) enforcing any rights
      against the Company or any guarantor, or any Account Debtor, (e) protecting
      or
      enforcing its interest in the Pledged Receivables or the Collateral, (f)
      collecting the Pledged Receivables and the Obligations, and (g) the
      representation of the Provider in connection with any bankruptcy case or
      insolvency proceeding involving the Company, any Pledged Receivable, the
      Collateral, any Account Debtor, or any guarantor. The Company shall indemnify
      and hold the Provider harmless from and against any and all claims, actions,
      damages, costs, expenses, and liabilities of any nature whatsoever arising
      in
      connection with any of the foregoing.

    

    13. Severability,
      Waiver, Choice of Law; and Forum.
      In the
      event that any provision of this Agreement is deemed invalid by reason of law,
      this Agreement will be construed as not containing such provision and the
      remainder of the Agreement shall remain in full force and effect, the Provider
      retains all of its rights, even if it makes an Advance after an Event of
      Default. If the Provider waives an Event of Default, it may enforce a later
      Event of Default. Any consent or waiver under, or amendment of, this Agreement
      must be in writing. Nothing contained herein, or any action taken or not taken
      by the Provider at any time, shall be construed at any time to be indicative
      of
      any obligation or willingness on the part of the Provider to amend this
      Agreement or to grant to the Company any waivers or consents. This Agreement
      has
      been transmitted by the Company to the Provider at the Provider’s office in the
      State of New York and has been executed and accepted by the Provider in the
      State of New York. This Agreement 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    shall
      be
      governed by and interpreted in accordance with the internal laws of the State
      of
      New York, without regard to any provisions relating to choice of laws.
In
      the
      event a dispute arises in connection with this Agreement, the courts located
      in
      the state and city of New York and the appropriate appellate courts therefrom
      shall have exclusive jurisdiction and the parties hereby irrevocably submit
      to
      the jurisdiction of such courts.

    

    14. Account
      Collection Services. Certain
      Account Debtors may require or prefer that all of the Company’s receivables be
      paid to the same address and/or party, or the Company and the Provider may
      agree
      that all receivables with respect to certain Account Debtors be paid to one
      party. In such event the Provider and the Company may agree that the Provider
      shall collect all receivables whether owned by the Company or the Provider
      and
      (provided that there does not then exist an Event of Default or event that
      with
      notice, lapse or time or otherwise would constitute an Event of Default, and
      subject to the Provider’s rights in the Collateral) the Provider agrees to remit
      to the Company the amount of the receivables collections it receives with
      respect to receivables other than Pledged Receivables. It is understood and
      agreed by the Company that this Section does not impose any affirmative duty
      on
      the Provider to do any act other than to turn over such amounts. All such
      receivables and collections are Collateral and in the event of the Company’s
      default hereunder, the Provider shall have no duty to remit collections of
      Collateral and may apply such collections to the obligations hereunder and
      the
      Provider shall have the rights of a secured party under the NYUCC.

    

    15.
      Notices.
      All
      notices shall be given to the Provider and the Company at the addresses or
      faxes
      set forth on the first page of this Agreement and shall be deemed to have been
      delivered and received: (a) if mailed, three (3) calendar days after deposited
      in the United States mail, first class, postage pre-paid, (b) one (1) calendar
      day after deposit with an overnight mail or messenger service; or (c) on the
      same date of confirmed transmission if sent by hand delivery, telecopier,
      telefax or telex.

    

    16. Jury
      Trial. THE
      COMPANY AND THE PROVIDER EACH HEREBY (a) WAIVE THEIR RESPECTIVE RIGHTS TO A
      JURY
      TRIAL ON ANY CLAIM OR ACTION ARISING OUT OF OR IN CONNECTION WITH THIS
      AGREEMENT, ANY RELATED AGREEMENTS, OR ANY OF THE TRANSACTIONS CONTEMPLATED
      HEREBY OR THEREBY; (b)RECOGNIZE AND AGREE THAT THE FOREGOING WAIVER CONSTITUTES
      A MATERIAL INDUCEMENT FOR IT TO ENTER IN TO THIS AGREEMENT; AND (c) REPRESENT
      AND WARRANT THAT IT HAS REVIEWED THIS WAIVER, HAS DETERMINED FOR ITSELF THE
      NECESSITY TO REVIEW THE SAME WITH ITS LEGAL COUNSEL, AND KNOWINGLY AND
      VOLUNTARILY WAIVES ALL RIGHTS TO A JURY TRIAL.

     

    17. Term
      and Termination. The
      term
      of this Agreement shall be for one (1) year from the date hereof (the “Term”).
      Notwithstanding the foregoing, any termination of this Agreement shall not
      affect the Provider’s security interest in the Collateral and the Provider’s
      ownership of the Pledged Receivables, and this Agreement shall continue to
      be
      effective, and the Provider’s rights and remedies hereunder shall survive such
      termination, until all transactions entered into and Obligations incurred
      hereunder or in connection herewith have been completed and satisfied in
      full.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    18. Titles
      and Section Headings. The
      titles and section headings used herein are for convenience only and shall
      not
      be used in interpreting this Agreement.

     

    19. Other
      Agreements. The
      terms
      and provisions of this Agreement shall not adversely affect the rights of the
      Provider or any of its affiliates under any other document, instrument or
      agreement. The terms of such other documents, instruments and agreements shall
      remain in full force and effect notwithstanding the execution of this Agreement.
      In the event of a conflict between any provision of this Agreement and any
      provision of any other document, instrument or agreement between the Company,
      on
      the one hand, and the Provider or any affiliate, the Provider shall determine
      in
      its sole discretion which provision shall apply. The Company acknowledges
      specifically that any security agreements, liens and/or security interests
      currently securing payment of any obligations of the Company owing to the
      Provider or any affiliate also secure the Company’s obligations under this
      Agreement, and are valid and subsisting and are not adversely affected by
      execution of this Agreement. The Company further acknowledges that (a) any
      collateral under other outstanding security agreements or other documents
      between the Company and the Provider or any affiliate secures the obligations
      of
      the Company under this Agreement and (b) a default by the Company under this
      Agreement constitutes a default under other outstanding agreements between
      the
      Company and the Provider or any affiliate.

    

    21. Conversion
      Right.

    

    (A) Conversion
      Right.
      The
      Provider shall have a continuing right (the “Conversion Right”) during the Term
      to convert all or a portion of the then outstanding amount of the Obligations
      hereunder into a number of shares of the common stock (the “Common Stock”) of
      the Company determined using a conversion price (the “Conversion Price”) equal
      to the rolling SEVEN (7) trading day weighted average closing bid price for
      the
      Common Stock on the OTC:BB (or such other equivalent market on which the Common
      Stock in then quoted) calculated as of the trading day immediately preceding
      the
      date the Conversion Right is exercised. Notwithstanding the foregoing, the
      Conversion Price shall not be less than FORTY CENTS ($0.40) nor more than EIGHTY
      CENTS ($0.80).

    

    (B)  Registration
      Rights.
      The
      Provider shall be entitled to piggyback registration rights upon exercise of
      this Conversion Right. Further, it is the intention of the parties that this
      Section 21 shall, to the extent permitted by law, be deemed a right to purchase
      the Common Stock that triggers the applicable holding period for the underlying
      Common Stock for purposes of Rule 144.

    

    (C)  Notice
      of Exercise.
      The
      Provider may exercise this Conversion Right by giving the Company written notice
      specifying the amount of the Obligations elects to convert into Common
      Stock.

     

    
      IN
        WITNESS WHEREOF, the Company and the Provider have executed this Agreement
        on
        the day and year above written.

    

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

     

    MOSAIC
      FINANCIAL SERVICES, LLC

     

    By:
      /s/ Haresh Sheth         
           

    Name:
      Haresh Sheth

    Title:
      Member

    

    ERXSYS,
      Inc.

     

    By:
      /s/ Robert DelVecchio          

    Name: Robert
      DelVecchio

    Title:

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    SCHEDULE
      6.2(B)

    

    (location
      of Collateral other than at the principal office of the Company)

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    SCHEDULE
      6.2(E)

    

    (Identification
      of copyrights, patents, trademarks, licenses and other intellectual
      property)

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