Document:

Exhibit 4.01

     THIS  NOTE AND THE COMMON SHARES ISSUABLE UPON CONVERSION OF THIS NOTE
     HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.
     THIS  NOTE AND THE COMMON SHARES ISSUABLE UPON CONVERSION OF THIS NOTE
     MAY  NOT  BE  SOLD,  OFFERED  FOR SALE, PLEDGED OR HYPOTHECATED IN THE
     ABSENCE  OF  AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS NOTE UNDER
     SAID  ACT  OR  AN  OPINION OF COUNSEL REASONABLY SATISFACTORY TO AMNIS
     SYSTEMS,  INC.  THAT  SUCH  REGISTRATION  IS  NOT  REQUIRED.

                                CONVERTIBLE NOTE
                                ----------------

          FOR  VALUE  RECEIVED,  AMNIS  SYSTEMS  INC.,  a  Delaware  corporation
(hereinafter  called  "Borrower"),  hereby  promises  to  pay to________________
________________________________________________________________________________
(the "Holder") or order, without demand, the sum of ____________________________
($____________),  with  simple  interest  accruing at the annual rate of 12%, on
June  18,  2004  (the  "Maturity  Date").

          This  Note  has  been  entered  into  pursuant  to  the  terms  of  a
subscription  agreement  between the Borrower and the Holder, dated of even date
herewith  (the  "Subscription Agreement"), and shall be governed by the terms of
such  Subscription  Agreement.  Unless  otherwise separately defined herein, all
capitalized  terms used in this Note shall have the same meaning as is set forth
in  the  Subscription  Agreement.  The following terms shall apply to this Note:

                                    ARTICLE I

                               GENERAL PROVISIONS

          1.1     Payment Grace Period.  The  Borrower  shall  have  a  ten (10)
                  --------------------
business day grace period to pay any monetary amounts due under this Note, after
which  grace  period  a default interest rate of fifteen percent (15%) per annum
shall  apply  to  the  amounts  owed  hereunder.

          1.2     Conversion Privileges.  The Conversion Privileges set forth in
                  ---------------------
Article  II  shall  remain  in  full  force and effect immediately from the date
hereof  and until the Note is paid in full. The Note shall be payable in full on
the  Maturity  Date, unless previously converted into Common Stock in accordance
with  Article  II hereof; provided, that if the Borrower violates or breaches in
any  material  respect  any  of  its  covenants  or  agreements  to register the
Registrable Securities pursuant to Section 10 of the Subscription Agreement, the
Borrower  may  not pay this Note after the Maturity Date, without the consent of
the Holder.

          1.3     Interest Rate.  Simple  interest  payable  on  this Note shall
                  -------------
accrue  at  the  annual  rate  of  twelve percent (12%) and be payable upon each
Conversion,  and  on  the  Maturity  Date,  accelerated  or  otherwise, when the
principal and remaining accrued but unpaid interest shall be due and payable, or
sooner  as  described  below.

                                        1
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                                   ARTICLE II

                                CONVERSION RIGHTS

          The  Holder  shall  have  the right to convert the principal due under
this Note into Shares of the Borrower's Common Stock, $.0001 par value per share
("Common  Stock")  as  set  forth  below.

          2.1.     Conversion into the Borrower's Common Stock.
                   -------------------------------------------

          (a)     The Holder shall have the right from and after the issuance of
this  Note  and  then  at any time until this Note is fully paid, to convert any
outstanding  and unpaid principal portion of this Note, and accrued interest, at
the  election  of  the  Holder  (the date of giving of such notice of conversion
being  a  "Conversion  Date") into fully paid and nonassessable shares of Common
Stock  as  such stock exists on the date of issuance of this Note, or any shares
of  capital  stock  of  Borrower into which such Common Stock shall hereafter be
changed  or  reclassified,  at the conversion price as defined in Section 2.1(b)
hereof (the "Conversion Price"), determined as provided herein. Upon delivery to
the  Borrower  of  a  Notice  of  Conversion  as  described  in Section 9 of the
Subscription  Agreement of the Holder's written request for conversion, Borrower
shall  issue  and  deliver  to  the  Holder  within three business days from the
Conversion  Date ("Delivery Date") that number of shares of Common Stock for the
portion  of the Note converted in accordance with the foregoing. At the election
of the Holder, the Borrower will deliver accrued but unpaid interest on the Note
in  the  manner  provided in Section 1.3 through the Conversion Date directly to
the  Holder  on  or  before  the  Delivery  Date (as defined in the Subscription
Agreement).  The  number  of  shares  of  Common  Stock  to  be issued upon each
conversion  of  this  Note  shall  be determined by dividing that portion of the
principal  of  the  Note  and interest to be converted, by the Conversion Price.

          (b)     Subject  to  adjustment  as provided in Section 2.1(c) hereof,
the  Conversion  Price per share of Common Stock shall be the lower of (i) $.385
("Maximum Base Price") or (ii) seventy percent (70%) of the average of the three
lowest  intraday trading prices for the Common Stock on the Principal Market for
the  twenty  (20)  trading  days prior to but not including the Conversion Date.
Principal Market shall mean the OTC Pink Sheets, NASD OTC Bulletin Board, NASDAQ
SmallCap  Market, NASDAQ National Market System, American Stock Exchange, or New
York  Stock  Exchange,  as  applicable,  or  if  not  then trading on any of the
foregoing,  such  other  principal  market or exchange where the Common Stock is
listed  or  traded  (whichever  of  the  foregoing  is at the time the principal
trading  exchange  or market for the Common Stock). Intraday trading price shall
mean  the  intraday  trading  price  as  reported  by  Bloomberg  Financial.

          (c)     The Maximum  Base Price and number and kind of shares or other
securities  to  be issued upon conversion determined pursuant to Section 2.1(a),
shall  be  subject to adjustment from time to time upon the happening of certain
events  while  this  conversion  right  remains  outstanding,  as  follows:

               A.     Merger,  Sale of Assets, etc.  If the Borrower at any time
shall  consolidate with or merge into or sell or convey all or substantially all
its  assets  to  any  other  corporation,  this Note, as to the unpaid principal
portion  thereof  and  accrued  interest  thereon, shall thereafter be deemed to
evidence  the  right  to  purchase  such  number  and  kind  of  shares or other
securities  and property as would have been issuable or distributable on account
of  such  consolidation, merger, sale or conveyance, upon or with respect to the
securities subject to the conversion or purchase right immediately prior to such
consolidation,  merger,  sale  or  conveyance.  The  foregoing  provision  shall
similarly  apply  to  successive  transactions  of  a similar nature by any such
successor  or  purchaser.  Without limiting the generality of the foregoing, the
anti-dilution  provisions of this Section shall apply to such securities of such
successor or purchaser after any such consolidation, merger, sale or conveyance.

                                        2
<PAGE>
               B.     Reclassification, etc.  If the Borrower at any time shall,
by  reclassification  or  otherwise,  change the Common Stock into the same or a
different  number  of  securities  of any class or classes, this Note, as to the
unpaid  principal portion thereof and accrued interest thereon, shall thereafter
be  deemed  to  evidence  the  right  to  purchase  an  adjusted  number of such
securities  and  kind of securities as would have been issuable as the result of
such  change  with  respect  to  the  Common  Stock  immediately  prior  to such
reclassification  or  other  change.

               C.     Stock  Splits,  Combinations and Dividends.  If the shares
of  Common  Stock are subdivided or combined into a greater or smaller number of
shares  of  Common Stock, or if a dividend is paid on the Common Stock in shares
of  Common  Stock, the Conversion Price shall be proportionately reduced in case
of  subdivision  of shares or stock dividend or proportionately increased in the
case  of  combination  of shares, in each such case by the ratio which the total
number  of shares of Common Stock outstanding immediately after such event bears
to  the  total number of shares of Common Stock outstanding immediately prior to
such  event.

          (d)     During  the  period the conversion right exists, Borrower will
reserve  from  its  authorized  and unissued Common Stock a sufficient number of
shares  to  provide for the issuance of Common Stock upon the full conversion of
this  Note. Borrower represents that upon issuance, such shares will be duly and
validly issued, fully paid and non-assessable. Borrower agrees that its issuance
of  this  Note  shall  constitute  full  authority  to its officers, agents, and
transfer  agents  who  are  charged with the duty of executing and issuing stock
certificates  to  execute  and  issue  the  necessary certificates for shares of
Common  Stock  upon  the  conversion  of  this  Note.

          2.2     Method of Conversion.  This  Note  may  be  converted  by  the
                  --------------------
Holder  in  whole  or  in  part  as  described  in Section 2.1(a) hereof and the
Subscription  Agreement.  Upon  partial  conversion  of  this  Note,  a new Note
containing  the  same  date and provisions of this Note shall, at the request of
the Holder, be issued by the Borrower to the Holder for the principal balance of
this  Note  and  interest  which  shall  not  have  been  converted  or  paid.

          2.3     Maximum Conversion.  The  Holder  shall  not  be  entitled  to
                  ------------------
convert  on  a  Conversion  Date that amount of the Note in connection with that
number  of shares of Common Stock which would be in excess of the sum of (i) the
number  of  shares  of  Common  Stock  beneficially  owned by the Holder and its
affiliates  on  a  Conversion Date, (ii) any Common Stock issuable in connection
with  the  unconverted  portion  of  the Note, and (iii) the number of shares of
Common  Stock issuable upon the conversion of the Note with respect to which the
determination  of this provision is being made on a Conversion Date, which would
result  in  beneficial  ownership  by the Holder and its affiliates of more than
9.99%  of  the  outstanding  shares  of  Common  Stock  of  the  Company on such
Conversion  Date. For the purposes of the provision to the immediately preceding
sentence,  beneficial  ownership  shall be determined in accordance with Section
13(d)  of  the Securities Exchange Act of 1934, as amended, and Regulation 13d-3
thereunder.  Subject  to  the  foregoing,  the  Holder  shall  not be limited to
aggregate  conversions  of only 9.99% and aggregate conversion by the Holder may
exceed  9.99%.  The  Holder shall have the authority and obligation to determine
whether  the restriction contained in this Section 2.3 will limit any conversion
hereunder  and  to  the  extent  that  the Holder determines that the limitation
contained  in  this  Section  applies, the determination of which portion of the
Notes  are convertible shall be the responsibility and obligation of the Holder.
The Holder may void the conversion limitation described in this Section 2.3 upon
75  days  prior written notice to the Borrower. The Holder may allocate which of
the  equity  of  the  Company  deemed  beneficially owned by the Holder shall be
included in the 9.99% amount described above and which shall be allocated to the
excess  above  9.99%.

                                        3
<PAGE>
                                  ARTICLE III

                                EVENT OF DEFAULT

          The  occurrence  of  any of the following events of default ("Event of
Default")  shall, at the option of the Holder hereof, make all sums of principal
and  interest  then  remaining  unpaid  hereon  and  all  other  amounts payable
hereunder  immediately  due  and  payable,  upon demand, without presentment, or
grace  period,  all  of  which  hereby are expressly waived, except as set forth
below:

          3.1     Failure to Pay Principal or Interest.  The  Borrower  fails to
                  ------------------------------------
pay any installment of principal, interest or other sum due under this Note when
due and such failure continues for a period of ten (10) days after the due date.
The  ten  (10)  day  period  described  in this Section 3.1 is the same ten (10)
business  day  period  described  in  Section  1.1  hereof.

          3.2     Breach  of  Covenant.   The  Borrower  breaches  any  material
                  --------------------
covenant  or  other term or condition of the Subscription Agreement or this Note
in  any  material  respect  and such breach, if subject to cure, continues for a
period  of  ten (10) business days after written notice to the Borrower from the
Holder.

          3.3     Breach  of  Representations  and  Warranties.   Any  material
                  --------------------------------------------
representation  or  warranty  of  the  Borrower made herein, in the Subscription
Agreement,  or  in  any  agreement,  statement  or  certificate given in writing
pursuant  hereto  or in connection therewith shall be false or misleading in any
material  respect  as  of  the  date  made  and  the  Closing  Date.

          3.4     Receiver or Trustee.  The  Borrower  shall  make an assignment
                  -------------------
for  the  benefit  of creditors, or apply for or consent to the appointment of a
receiver  or  trustee  for  it  or  for  a  substantial  part of its property or
business;  or  such  a  receiver  or  trustee  shall  otherwise  be  appointed.

          3.5     Judgments.  Any money  judgment, writ or similar final process
                  ---------
shall  be  entered  or  filed  against  Borrower or any of its property or other
assets  for more than $100,000, and shall remain unvacated, unbonded or unstayed
for  a  period  of  forty-five  (45)  days.

          3.6     Bankruptcy.   Bankruptcy,  insolvency,  reorganization  or
                  ----------
liquidation  proceedings or other proceedings or relief under any bankruptcy law
or  any  law  for  the  relief  of debtors shall be instituted by or against the
Borrower  and if instituted against Borrower are not dismissed within 45 days of
initiation.

          3.7     Delisting.   Delisting  of  the  Common  Stock  from  the  OTC
                  ---------
Bulletin  Board  or  such  other principal exchange on which the Common Stock is
listed  for  trading;  failure  to  comply  with  the requirements for continued
listing  on  the  OTC  Bulletin  Board for a period of three consecutive trading
days;  or  notification from the OTC Bulletin Board or any Principal Market that
the Borrower is not in compliance with the conditions for such continued listing
on  the  OTC  Bulletin  Board  or  other  Principal  Market.

          3.8     Stop Trade.  An  SEC  stop  trade  order  or  Principal Market
                  ----------
trading suspension that lasts for five or more consecutive trading days.

          3.9     Failure to Deliver Common Stock or Replacement Note.
                  ---------------------------------------------------
Borrower's  failure to timely deliver Common Stock to the Holder pursuant to and
in  the  form required by this Note and Section 9 of the Subscription Agreement,
or,  if  required,  a  replacement  Note.

          3.10     Non-Registration Event.  The occurrence of a Non-Registration
                   ----------------------
Event as described in Section 10.4 of the Subscription Agreement except that for
purposes of this Section, a Non-Registration Event

                                        4
<PAGE>
in  connection  with  the  Filing  Date  shall be deemed to have occurred if the
registration  statement  described  in  Section  10.1(iv)  of  the  Subscription
Agreement  is  not  filed  on  or  before  the Filing Date as defined in Section
10.1(iv)  of  the  Subscription  Agreement.

          3.11     Cross Default.  A default by the Borrower of a material term,
                   -------------
covenant,  warranty  or undertaking of any other agreement to which the Borrower
and  Holder  are parties, or the occurrence of a material event of default under
any  such  other  agreement, in each case, which is not cured after any required
notice  and/or  cure  period.

                                   ARTICLE IV

                                  MISCELLANEOUS

          4.1     Failure or Indulgence Not Waiver.  No  failure or delay on the
                  --------------------------------
part of Holder hereof in the exercise of any power, right or privilege hereunder
shall  operate  as a waiver thereof, nor shall any single or partial exercise of
any such power, right or privilege preclude other or further exercise thereof or
of  any  other  right,  power  or  privilege.  All  rights and remedies existing
hereunder  are  cumulative  to,  and  not  exclusive  of, any rights or remedies
otherwise  available.

          4.2     Notices.  All notices, demands, requests, consents, approvals,
                  -------
and  other  communications  required  or permitted hereunder shall be in writing
and,  unless  otherwise  specified  herein, shall be (i) personally served, (ii)
deposited  in  the  mail,  registered  or  certified,  return receipt requested,
postage  prepaid,  (iii) delivered by reputable air courier service with charges
prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed
as  set  forth below or to such other address as such party shall have specified
most  recently  by written notice. Any notice or other communication required or
permitted to be given hereunder shall be deemed effective (a) upon hand delivery
or  delivery  by  facsimile,  with  accurate  confirmation  generated  by  the
transmitting  facsimile  machine,  at the address or number designated below (if
delivered on a business day during normal business hours where such notice is to
be  received),  or  the first business day following such delivery (if delivered
other  than  on a business day during normal business hours where such notice is
to  be received) or (b) on the second business day following the date of mailing
by  express  courier  service, fully prepaid, addressed to such address, or upon
actual  receipt  of such mailing, whichever shall first occur. The addresses for
such  communications  shall  be:  (i) if to the Borrower to: Amnis Systems Inc.,
3450  Hillview  Avenue,  Palo  Alto,  CA  94304,  Attn:  Mike  Liccardo or Larry
Bartlett,  telecopier number: (650) 855-0222, with a copy by telecopier only to:
Leland,  Parachini,  Steinberg, 333 Market Street, 27th Floor, San Francisco, CA
94105, Attn: Ed Pollack, Esq., telecopier number: (415) 974-1520, and (ii) if to
the Holder, to the name, address and telecopy number set forth on the front page
of  this  Note,  with  a copy by telecopier only to Grushko & Mittman, P.C., 551
Fifth  Avenue,  Suite  1601,  New York, New York 10176, telecopier number: (212)
697-3575.

          4.3     Amendment  Provision.  The  term  "Note"  and  all  reference
                  --------------------
thereto,  as  used  throughout  this  instrument,  shall mean this instrument as
originally  executed, or if later amended or supplemented, then as so amended or
supplemented.

          4.4     Assignability.  This  Note  shall be binding upon the Borrower
                  -------------
and its successors and assigns, and shall inure to the benefit of the Holder and
its  successors  and  assigns.

          4.5     Cost of Collection.  If default is made in the payment of this
                  ------------------
Note,  Borrower  shall  pay  the  Holder  hereof reasonable costs of collection,
including  reasonable  attorneys'  fees.

                                        5
<PAGE>
          4.6     Governing Law.  This  Note  shall be governed by and construed
                  -------------
in  accordance  with  the  laws  of the State of New York. Any action brought by
either  party against the other concerning the transactions contemplated by this
Agreement  shall  be  brought  only  in  the  state courts of New York or in the
federal courts located in the state of New York. Both parties and the individual
signing  this  Agreement  on  behalf  of  the  Borrower  agree  to submit to the
jurisdiction  of  such courts. The prevailing party shall be entitled to recover
from  the  other  party  its  reasonable  attorney's  fees  and  costs.

          4.7     Maximum Payments.  Nothing contained herein shall be deemed to
                  ----------------
establish  or  require  the  payment  of  a rate of interest or other charges in
excess of the maximum permitted by applicable law. In the event that the rate of
interest  required  to  be  paid  or  other charges hereunder exceed the maximum
permitted  by such law, any payments in excess of such maximum shall be credited
against  amounts  owed  by  the  Borrower to the Holder and thus refunded to the
Borrower.

          4.8     Redemption.  This  Note may not be redeemed or paid before the
                  ----------
Maturity Date without the consent of the Holder.

          4.9     Shareholder Status.  The  Holder  shall  not  have rights as a
                  ------------------
shareholder  of  the Borrower with respect to unconverted portions of this Note,
except  that from and after the Delivery Date, the Holder shall have rights as a
shareholder of the Borrower with respect to Common Stock to be delivered on such
Delivery  Date.

                                        6
<PAGE>
     IN WITNESS WHEREOF, Borrower has caused this Note to be signed in its name
by an authorized officer on this 18th day of June, 2002.

                                             AMNIS  SYSTEMS  INC.

                                             By:________________________________
                                                    Name:
                                                    Title:

WITNESS:

_______________________________

                                        7
<PAGE>
                              NOTICE OF CONVERSION
                              --------------------

(To be executed by the Registered Holder in order to convert the Note)

     The  undersigned  hereby  elects to convert $_________ of the principal and
$_________  of the interest due on the Note issued by AMNIS SYSTEMS INC. on June
____,  2002  into  Shares  of Common Stock of AMNIS SYSTEMS INC. (the "Company")
according  to  the  conditions  set  forth  in such Note, as of the date written
below.

Date of Conversion:____________________________________________________________

Conversion Price:______________________________________________________________

Shares To Be Delivered:________________________________________________________

Signature:_____________________________________________________________________

Print Name:____________________________________________________________________

Address:_______________________________________________________________________

        _______________________________________________________________________

                                        8
<PAGE>Exhibit 4.02

THIS  WARRANT  AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE
NOT  BEEN  REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS WARRANT
AND  THE  COMMON  SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD,
OFFERED  FOR  SALE,  PLEDGED  OR  HYPOTHECATED  IN  THE  ABSENCE OF AN EFFECTIVE
REGISTRATION  STATEMENT  AS  TO  THIS  WARRANT  UNDER  SAID ACT OR AN OPINION OF
COUNSEL  REASONABLY SATISFACTORY TO AMNIS SYSTEMS INC. THAT SUCH REGISTRATION IS
NOT  REQUIRED.

                           Right to Purchase _________ shares of Common Stock of
                   Amnis Systems Inc. (subject to adjustment as provided herein)

                          COMMON STOCK PURCHASE WARRANT

No.  2002-__                                     Issue Date:  June 18, 2002

     AMNIS  SYSTEMS INC., a corporation organized under the laws of the State of
Delaware  (the  "Company"),  hereby  certifies  that,  for  value  received,
_________________________________  (the  "Holder"),  or  assigns,  is  entitled,
subject  to  the  terms  set  forth below, to purchase from the Company from and
after  six  months  from  the Issue Date of this Warrant and at any time or from
time  to time before 5:00 p.m., New York time, through five (5) years after such
date (the "Expiration Date"), up to ________ fully paid and nonassessable shares
of  Common  Stock  (as  hereinafter defined), $.0001 par value per share, of the
Company  at  a  per share purchase price of $0.1301. The aforedescribed purchase
price  per share, as adjusted from time to time as herein provided, are referred
to  herein  as  the "Purchase Price". The number and character of such shares of
Common  Stock  and  the  Purchase  Price  are  subject to adjustment as provided
herein.

     As  used herein the following terms, unless the context otherwise requires,
have  the  following  respective  meanings:

     (a)     The  term  "Company"  shall  include  Amnis  Systems  Inc.  and any
corporation which shall succeed or assume the obligations of Amnis Systems, Inc.
hereunder.

     (b)     The  term  "Common  Stock" includes (a) the Company's Common Stock,
$.0001  par  value  per  share,  as  authorized  on the date of the Subscription
Agreement  referred  to  in Section 9 hereof, (b) any other capital stock of any
class  or  classes  (however  designated) of the Company, authorized on or after
such  date,  the holders of which shall have the right, without limitation as to
amount,  either  to  all  or  to a share of the balance of current dividends and
liquidating  dividends  after  the payment of dividends and distributions on any
shares entitled to preference, and the holders of which shall ordinarily, in the
absence  of contingencies, be entitled to vote for the election of a majority of
directors of the Company (even if the right so to vote has been suspended by the
happening  of such a contingency) and (c) any other securities into which or for
which  any  of  the  securities  described  in  (a)  or  (b) may be converted or
exchanged  pursuant  to a plan of recapitalization, reorganization, merger, sale
of  assets  or  otherwise.

     (c)     The  term "Other Securities" refers to any stock (other than Common
Stock)  and  other  securities  of the Company or any other person (corporate or
otherwise)  which  the  holder  of  the Warrant

                                        1
<PAGE>
at  any  time  shall  be  entitled  to  receive,  or shall have received, on the
exercise  of  the Warrant, in lieu of orin addition to Common Stock, or which at
any  time  shall  be  issuable  or  shall have been issued in exchange for or in
replacement  of  Common  Stock  or  Other  Securities  pursuant  to Section 4 or
otherwise.

     1.   Exercise  of  Warrant.
          ---------------------

          1.1.     Number  of Shares Issuable upon Exercise.  From and after the
                   ----------------------------------------
date  hereof  through and including the Expiration Date, the holder hereof shall
be  entitled  to  receive,  upon exercise of this Warrant in whole in accordance
with  the  terms  of  subsection 1.2 or upon exercise of this Warrant in part in
accordance  with  subsection 1.3, shares of Common Stock of the Company, subject
to  adjustment  pursuant  to  Section  4.

          1.2.     Full  Exercise.  This Warrant may be exercised in full by the
                   --------------
holder  hereof  by  delivery  of  an  original  or facsimile copy of the form of
subscription  attached  as  Exhibit  A  hereto  (the  "Subscription  Form") duly
executed  by  such holder and surrender of the original Warrant within seven (7)
days of exercise, to the Company at its principal office or at the office of its
Warrant  Agent  (as provided hereinafter), accompanied by payment, in cash, wire
transfer  or  by  certified  or  official bank check payable to the order of the
Company,  in  the  amount obtained by multiplying the number of shares of Common
Stock  for  which this Warrant is then exercisable by the Purchase Price then in
effect.

          1.3.     Partial Exercise.  This Warrant may be exercised in part (but
                   ----------------
not  for  a  fractional share) by surrender of this Warrant in the manner and at
the  place  provided  in  subsection  1.2  except that the amount payable by the
holder  on such partial exercise shall be the amount obtained by multiplying (a)
the  number  of  shares  of  Common  Stock  designated  by  the  holder  in  the
Subscription Form by (b) the Purchase Price then in effect.  On any such partial
exercise,  the  Company,  at its expense, will forthwith issue and deliver to or
upon  the order of the holder hereof a new Warrant of like tenor, in the name of
the  holder  hereof  or  as  such  holder  (upon  payment  by such holder of any
applicable transfer taxes) may request, the number of shares of Common Stock for
which  such  Warrant  may  still  be  exercised.

          1.4.     Fair  Market  Value.  Fair  Market Value of a share of Common
                   -------------------
Stock  as  of  a  particular date (the "Determination Date") shall mean the Fair
Market  Value  of  a share of the Company's Common Stock. Fair Market Value of a
share  of  Common  Stock  as  of  a  Determination  Date  shall  mean:

               (a)     If the Company's Common Stock is traded on an exchange or
is  quoted  on  the  National  Association of Securities Dealers, Inc. Automated
Quotation  ("NASDAQ")  National Market System, the NASDAQ SmallCap Market or the
American  Stock  Exchange,  Inc.,  then  the  closing  or  last  sale  price,
respectively,  reported  for  the  last  business  day immediately preceding the
Determination  Date.

               (b)     If  the  Company's  Common  Stock  is  not  traded  on an
exchange  or on the NASDAQ National Market System, the NASDAQ SmallCap Market or
the American Stock Exchange, Inc., but is traded in the over-the-counter market,
then the mean of the closing bid and asked prices reported for the last business
day  immediately  preceding  the  Determination  Date.

               (c)     Except  as provided in clause (d) below, if the Company's
Common Stock is not publicly traded, then as the Holder and the Company agree or
in  the  absence  of  agreement by arbitration in accordance with the rules then
standing  of the American Arbitration Association, before a single arbitrator to
be chosen from a panel of persons qualified by education and training to pass on
the  matter  to  be  decided.

                                        2
<PAGE>
               (d)     If  the  Determination Date is the date of a liquidation,
dissolution  or winding up, or any event deemed to be a liquidation, dissolution
or  winding up pursuant to the Company's charter, then all amounts to be payable
per share to holders of the Common Stock pursuant to the charter in the event of
such  liquidation,  dissolution  or  winding  up,  plus  all other amounts to be
payable  per  share  in  respect  of  the  Common Stock in liquidation under the
charter,  assuming for the purposes of this clause (d) that all of the shares of
Common  Stock then issuable upon exercise of all of the Warrants are outstanding
at  the  Determination  Date.

          1.5.     Company  Acknowledgment. The Company will, at the time of the
                   -----------------------
exercise  of  the  Warrant, upon the request of the holder hereof acknowledge in
writing  its  continuing obligation to afford to such holder any rights to which
such holder shall continue to be entitled after such exercise in accordance with
the  provisions  of  this  Warrant.  If  the  holder shall fail to make any such
request,  such failure shall not affect the continuing obligation of the Company
to  afford  to  such  holder  any  such  rights.

          1.6.     Trustee  for  Warrant  Holders.  In  the event that a bank or
                   ------------------------------
trust  company  shall  have  been  appointed  as  trustee for the holders of the
Warrants  pursuant  to Subsection 3.2, such bank or trust company shall have all
the  powers  and  duties of a warrant agent (as hereinafter described) and shall
accept,  in its own name for the account of the Company or such successor person
as may be entitled thereto, all amounts otherwise payable to the Company or such
successor,  as  the  case  may  be, on exercise of this Warrant pursuant to this
Section  1.

     2.1     Delivery  of  Stock  Certificates,  etc.  on Exercise.  The Company
             -----------------------------------------------------
agrees  that  the shares of Common Stock purchased upon exercise of this Warrant
shall  be  deemed  to be issued to the holder hereof as the record owner of such
shares  as of the close of business on the date on which this Warrant shall have
been  surrendered  and  payment  made  for  such shares as aforesaid. As soon as
practicable  after  the  exercise of this Warrant in full or in part, and in any
event  within  seven  (7) days thereafter, the Company at its expense (including
the  payment by it of any applicable issue taxes) will cause to be issued in the
name  of  and delivered to the holder hereof, or as such holder (upon payment by
such  holder  of  any  applicable  transfer taxes) may direct in compliance with
applicable securities laws, a certificate or certificates for the number of duly
and  validly  issued,  fully  paid  and nonassessable shares of Common Stock (or
Other Securities) to which such holder shall be entitled on such exercise, plus,
in  lieu  of  any  fractional  share  to  which  such  holder would otherwise be
entitled,  cash  equal to such fraction multiplied by the then Fair Market Value
of  one  full  share,  together  with  any  other  stock or other securities and
property  (including  cash,  where  applicable) to which such holder is entitled
upon  such  exercise  pursuant  to  Section  1  or  otherwise.

     2.2.     Cashless  Exercise.
              ------------------

          (a)     Payment  may  be  made  either  in (i) cash or by certified or
official  bank check payable to the order of the Company equal to the applicable
aggregate  Purchase  Price,  (ii)  by  delivery  of  Common  Stock issuable upon
exercise  of  the  Warrants  in  accordance with Section (b) below or (iii) by a
combination  of  any  of  the foregoing methods, for the number of Common Shares
specified in such form (as such exercise number shall be adjusted to reflect any
adjustment  in the total number of shares of Common Stock issuable to the holder
per  the  terms  of  this Warrant) and the holder shall thereupon be entitled to
receive  the  number  of  duly  authorized,  validly  issued,  fully-paid  and
non-assessable  shares  of  Common  Stock  (or  Other  Securities) determined as
provided  herein.

          (b)     Notwithstanding  any provisions herein to the contrary, if the
Fair  Market  Value  of  one  share of Common Stock is greater than the Purchase
Price  (at  the  date  of calculation as set forth below), in lieu of exercising
this  Warrant  for  cash,  upon  consent of the Company, the holder may elect to
receive  shares equal to the value (as determined below) of this Warrant (or the
portion  thereof  being

                                        3
<PAGE>
cancelled)  by  surrender of this Warrant at the principal office of the Company
together with the properly endorsed Subscription Form in which event the Company
shall  issue to the holder a number of shares of Common Stock computed using the
following  formula:

                    X= Y(A-B)
                       ------
                         A

          Where     X=   the  number of shares of Common Stock to be issued to
                         the  holder

                    Y=   the  number of shares of Common Stock purchasable under
                         the  Warrant  or,  if  only a portion of the Warrant is
                         being  exercised,  the  portion  of  the  Warrant being
                         exercised  (at  the  date  of  such  calculation)

                    A=   the  Fair  Market  Value  of one share of the Company's
                         Common  Stock  (at  the  date  of  such  calculation)

                    B=   Purchase  Price  (as  adjusted  to  the  date  of  such
                         calculation)

          (c)     The  Holder  may  not  employ  the  cashless  exercise feature
described above at any time that the Warrant Stock to be issued upon exercise is
included  for  unrestricted  resale  in  an  effective  registration  statement.

     3.   Adjustment  for  Reorganization,  Consolidation,  Merger,  etc.
          ---------------------------------------------------------------

          3.1.     Reorganization,  Consolidation,  Merger, etc.  In case at any
                   --------------------------------------------
time  or  from  time to time, the Company shall (a) effect a reorganization, (b)
consolidate  with  or  merge  into  any  other  person  or  (c)  transfer all or
substantially all of its properties or assets to any other person under any plan
or  arrangement contemplating the dissolution of the Company, then, in each such
case,  as  a  condition  to  the  consummation of such a transaction, proper and
adequate  provision  shall  be  made  by  the Company whereby the holder of this
Warrant,  on the exercise hereof as provided in Section 1, at any time after the
consummation  of  such  reorganization, consolidation or merger or the effective
date  of  such  dissolution,  as  the case may be, shall receive, in lieu of the
Common  Stock  (or  Other  Securities)  issuable  on such exercise prior to such
consummation or such effective date, the stock and other securities and property
(including  cash)  to  which  such  holder  would  have  been entitled upon such
consummation or in connection with such dissolution, as the case may be, if such
holder  had so exercised this Warrant, immediately prior thereto, all subject to
further  adjustment  thereafter  as  provided  in  Section  4.

          3.2.     Dissolution.  In  the event of any dissolution of the Company
                   -----------
following  the transfer of all or substantially all of its properties or assets,
the Company, prior to such dissolution, shall at its expense deliver or cause to
be  delivered the stock and other securities and property (including cash, where
applicable)  receivable  by the holders of the Warrants after the effective date
of such dissolution pursuant to this Section 3 to a bank or trust company having
its  principal  office  in New York, NY, as trustee for the holder or holders of
the  Warrants.

          3.3.     Continuation  of  Terms.  Upon  any  reorganization,
                   -----------------------
consolidation,  merger  or transfer (and any dissolution following any transfer)
referred  to  in  this  Section 3, this Warrant shall continue in full force and
effect and the terms hereof shall be applicable to the shares of stock and other
securities  and  property  receivable  on the exercise of this Warrant after the
consummation  of  such  reorganization, consolidation or merger or the effective
date  of  dissolution following any such transfer, as the case may be, and shall
be  binding upon the issuer of any such stock or other securities, including, in
the  case of any such transfer, the person acquiring all or substantially all of
the  properties  or  assets  of  the

                                        4
<PAGE>
Company,  whether  or  not such person shall have expressly assumed the terms of
this  Warrant  as  provided  in  Section  4.  In the event this Warrant does not
continue  in  full  force  and  effect after the consummation of the transaction
described  in  this  Section  3,  then  only  in  such  event will the Company's
securities  and  property  (including  cash, where applicable) receivable by the
holders  of  the Warrants be delivered to the Trustee as contemplated by Section
3.2.

          3.4.     Share  Issuance.   Except  for  the  Excepted  Issuances  as
                   ---------------
described  in  Section  11  of the Subscription Agreement, if the Company at any
time  shall  issue  any shares of Common Stock prior to the complete exercise of
this  Warrant  for a consideration less than the Purchase Price that would be in
effect  at  the  time of such issue, then, and thereafter successively upon each
such  issue,  the  Purchase Price shall be reduced as follows: (i) the number of
shares  of  Common  Stock  outstanding  immediately prior to such issue shall be
multiplied  by  the  Purchase  Price in effect at the time of such issue and the
product  shall  be added to the aggregate consideration, if any, received by the
Company  upon  such issue of additional shares of Common Stock; and (ii) the sum
so obtained shall be divided by the number of shares of Common Stock outstanding
immediately  after  such  issue.  The  resulting  quotient shall be the adjusted
Purchase  Price.  For  purposes of this adjustment, the issuance of any security
of the Company carrying the right to convert such security into shares of Common
Stock  or  of any warrant, right or option to purchase Common Stock shall result
in  an  adjustment  to  the Purchase Price upon the issuance of shares of Common
Stock  upon  exercise  of  such  conversion  or  purchase  rights.

     4.     Extraordinary  Events Regarding Common Stock.  In the event that the
            --------------------------------------------
Company  shall  (a) issue additional shares of the Common Stock as a dividend or
other  distribution  on  outstanding Common Stock, (b) subdivide its outstanding
shares of Common Stock or (c) combine its outstanding shares of the Common Stock
into  a  smaller number of shares of the Common Stock, then, in each such event,
the  Purchase  Price  shall, simultaneously with the happening of such event, be
adjusted  by multiplying the then Purchase Price by a fraction, the numerator of
which  shall  be  the  number  of shares of Common Stock outstanding immediately
prior  to  such event and the denominator of which shall be the number of shares
of  Common  Stock  outstanding  immediately after such event, and the product so
obtained  shall  thereafter  be  the Purchase Price then in effect. The Purchase
Price, as so adjusted, shall be readjusted in the same manner upon the happening
of any successive event or events described herein in this Section 4. The number
of  shares  of Common Stock that the holder of this Warrant shall thereafter, on
the  exercise  hereof  as provided in Section 1, be entitled to receive shall be
increased  to  a number determined by multiplying the number of shares of Common
Stock  that  would  otherwise  (but  for  the  provisions  of this Section 4) be
issuable  on  such  exercise  by  a  fraction  of which (a) the numerator is the
Purchase  Price  that would otherwise (but for the provisions of this Section 4)
be  in  effect,  and  (b) the denominator is the Purchase Price in effect on the
date  of  such  exercise.

     5.     Certificate  as  to  Adjustments.  In each case of any adjustment or
            --------------------------------
readjustment in the shares of Common Stock (or Other Securities) issuable on the
exercise  of  the  Warrants,  the Company at its expense will promptly cause its
Chief Financial Officer or other appropriate designee to compute such adjustment
or  readjustment  in  accordance  with  the  terms  of the Warrant and prepare a
certificate  setting forth such adjustment or readjustment and showing in detail
the  facts  upon  which  such  adjustment  or readjustment is based, including a
statement of (a) the consideration received or receivable by the Company for any
additional shares of Common Stock (or Other Securities) issued or sold or deemed
to  have been issued or sold, (b) the number of shares of Common Stock (or Other
Securities)  outstanding  or deemed to be outstanding and (c) the Purchase Price
and  the  number  of shares of Common Stock to be received upon exercise of this
Warrant,  in  effect immediately prior to such adjustment or readjustment and as
adjusted  or  readjusted as provided in this Warrant. The Company will forthwith
mail  a  copy  of  each  such  certificate  to the holder of the Warrant and any
Warrant Agent of the Company (appointed pursuant to Section 11 hereof).

                                        5
<PAGE>
     6.     Reservation  of  Stock,  etc.  Issuable  on  Exercise  of  Warrant;
            -------------------------------------------------------------------
Financial  Statements.   From  and  after  the  Issue  Date of this Warrant, the
---------------------
Company  will  at  all times reserve and keep available, solely for issuance and
delivery  on  the exercise of the Warrants, all shares of Common Stock (or Other
Securities)  from  time  to  time issuable on the exercise of the Warrant.  This
Warrant  entitles the holder hereof to receive copies of all financial and other
information  distributed  or  required  to  be distributed to the holders of the
Company's  Common  Stock.

     7.     Assignment;  Exchange  of  Warrant.  Subject  to  compliance  with
            ----------------------------------
applicable  securities  laws, this Warrant, and the rights evidenced hereby, may
be  transferred by any registered holder hereof (a "Transferor") with respect to
any  or  all  of the Shares. On the surrender for exchange of this Warrant, with
the  Transferor's  endorsement  in  the  form  of Exhibit B attached hereto (the
"Transferor  Endorsement  Form")  and  together  with  evidence  reasonably
satisfactory  to the Company demonstrating compliance with applicable securities
laws,  the  Company  at  its  expense, but with payment by the Transferor of any
applicable  transfer  taxes)  will  issue  and deliver to or on the order of the
Transferor  thereof  a new Warrant or Warrants of like tenor, in the name of the
Transferor  and/or  the  transferee(s)  specified in such Transferor Endorsement
Form  (each  a  "Transferee"),  calling  in  the  aggregate on the face or faces
thereof for the number of shares of Common Stock called for on the face or faces
of  the  Warrant  so  surrendered  by  the  Transferor.

     8.     Replacement  of  Warrant.  On  receipt  of  evidence  reasonably
            ------------------------
satisfactory  to  the  Company  of the loss, theft, destruction or mutilation of
this  Warrant  and,  in  the case of any such loss, theft or destruction of this
Warrant,  on  delivery  of  an  indemnity  agreement  or  security  reasonably
satisfactory  in  form  and  amount  to  the Company or, in the case of any such
mutilation,  on  surrender  and cancellation of this Warrant, the Company at its
expense  will execute and deliver, in lieu thereof, a new Warrant of like tenor.

     9.     Registration  Rights.  The  Holder of this Warrant is hereby granted
            --------------------
certain  registration  rights by the Company.  These registration rights are set
forth  in a Subscription Agreement entered into by the Company and the Holder as
Subscriber  of  the Company's Convertible Notes at or prior to the issue date of
this  Warrant.  The  terms  of  the registration rights relating to common stock
purchase  warrants  issued pursuant to Subscription Agreement ("Other Warrants")
are  incorporated  herein  by  this  reference  and  granted  to  the  Holder in
connection  with  this  Warrant.  All  other  rights,  remedies,  privileges,
indemnification,  and  reservation  rights  granted  to  the holder of the Other
Warrants  are hereby granted to the Holder of this Warrant.  Upon the occurrence
of  a  Non-Registration  Event, as defined in the Subscription Agreement, in the
event  the Company is unable to issue Common Stock upon exercise of this Warrant
that  has been registered in a Registration Statement described in Section 10 of
the  Subscription  Agreement,  within  the  time  periods  described  in  the
Subscription  Agreement,  which Registration Statement must be effective for the
periods  set  forth in the Subscription Agreement, then upon written demand made
by  the  Holder,  the Company will pay to the Holder of this Warrant, in lieu of
delivering  Common  Stock,  a  sum  equal  to the closing price of the Company's
Common  Stock on the principal market or exchange upon which the Common Stock is
listed  for trading on the trading date immediately preceding the date notice is
given  by  the  Holder,  less the Purchase Price, for each share of Common Stock
designated  in  such  notice  from  the  Holder.

     10.     Maximum  Exercise.  The  Holder  shall  not be entitled to exercise
             -----------------
this  Warrant  on  an exercise date, in connection with that number of shares of
Common  Stock which would be in excess of the sum of (i) the number of shares of
Common  Stock beneficially owned by the Holder and its affiliates on an exercise
date,  and  (ii) the number of shares of Common Stock issuable upon the exercise
of  this  Warrant  with respect to which the determination of this limitation is
being  made  on  an exercise date, which would result in beneficial ownership by
the  Holder  and  its affiliates of more than 9.99% of the outstanding shares of
Common  Stock  of the Company on such date.  For the purposes of the immediately

                                        6
<PAGE>
preceding  sentence, beneficial ownership shall be determined in accordance with
Section 13(d) of the Securities Exchange Act of 1934, as amended, and Regulation
13d-3  thereunder.  Subject to the foregoing, the Holder shall not be limited to
aggregate  exercises which would result in the issuance of more than 9.99%.  The
restriction  described  in  this paragraph may be revoked upon seventy-five (75)
days prior notice from the Holder to the Company.  The Holder may allocate which
of  the  equity of the Company deemed beneficially owned by the Subscriber shall
be  included in the 9.99% amount described above and which shall be allocated to
the  excess  above  9.99%.

     11.     Warrant  Agent.  The  Company  may,  by  written notice to the each
             --------------
holder  of the Warrant, appoint an agent for the purpose of issuing Common Stock
(or  Other  Securities)  on  the exercise of this Warrant pursuant to Section 1,
exchanging  this  Warrant  pursuant  to  Section  7,  and replacing this Warrant
pursuant  to  Section  8,  or  any  of  the  foregoing,  and thereafter any such
issuance,  exchange  or  replacement,  as the case may be, shall be made at such
office  by  such  agent.

     12.     Transfer on the Company's Books.  Until this Warrant is transferred
             -------------------------------
on  the books of the Company, the Company may treat the registered holder hereof
as the absolute owner hereof for all purposes, notwithstanding any notice to the
contrary.

     13.     Notices.  All  notices, demands, requests, consents, approvals, and
             -------
other  communications  required  or permitted hereunder shall be in writing and,
unless  otherwise  specified  herein,  shall  be  (i)  personally  served,  (ii)
deposited  in  the  mail,  registered  or  certified,  return receipt requested,
postage  prepaid,  (iii) delivered by reputable air courier service with charges
prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed
as  set  forth below or to such other address as such party shall have specified
most  recently by written notice.  Any notice or other communication required or
permitted to be given hereunder shall be deemed effective (a) upon hand delivery
or  delivery  by  facsimile,  with  accurate  confirmation  generated  by  the
transmitting  facsimile  machine,  at the address or number designated below (if
delivered on a business day during normal business hours where such notice is to
be  received),  or  the first business day following such delivery (if delivered
other  than  on a business day during normal business hours where such notice is
to  be received) or (b) on the second business day following the date of mailing
by  express  courier  service, fully prepaid, addressed to such address, or upon
actual  receipt  of  such  mailing,  whichever  shall  first  occur.

     14.     Miscellaneous.  This  Warrant  and  any term hereof may be changed,
             -------------
waived,  discharged or terminated only by an instrument in writing signed by the
party against which enforcement of such change, waiver, discharge or termination
is  sought.  This Warrant shall be construed and enforced in accordance with and
governed by the laws of New York.  Any dispute relating to this Warrant shall be
adjudicated  in  New York County in the State of New York.  The headings in this
Warrant  are  for  purposes  of reference only, and shall not limit or otherwise
affect  any  of  the  terms  hereof.  The  invalidity or unenforceability of any
provision  hereof  shall  in no way affect the validity or enforceability of any
other  provision.

                                        7
<PAGE>
     IN  WITNESS  WHEREOF,  the Company has executed this Warrant as of the date
first  written  above.

                                        AMNIS  SYSTEMS  INC.

                                        By:_____________________________________
                                              Name:
                                              Title:

Witness:

_________________________________

                                        8
<PAGE>

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