Document:

THE  SECURITIES  REPRESENTED  HEREBY  HAVE  NOT BEEN REGISTERED UNDER THE UNITED
STATES  SECURITIES  ACT  OF 1933, AS AMENDED (THE "SECURITIES ACT").  THE HOLDER
HEREOF, BY PURCHASING SUCH SECURITIES AGREES FOR THE BENEFIT OF THE COMPANY THAT
SUCH  SECURITIES  MAY  BE OFFERED, SOLD OR OTHERWISE TRANSFERRED ONLY (A) TO THE
COMPANY,  (B)  PURSUANT  TO  AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT,  OR  (C)  IF  REGISTERED  UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE
SECURITIES  LAWS.  IN ADDITION, A SECURITIES PURCHASE AGREEMENT, DATED AS OF THE
DATE  HEREOF,  A COPY OF WHICH MAY BE OBTAINED FROM THE COMPANY AT ITS PRINCIPAL
EXECUTIVE  OFFICE,  CONTAINS  CERTAIN  ADDITIONAL  AGREEMENTS AMONG THE PARTIES,
INCLUDING,  WITHOUT LIMITATION, PROVISIONS WHICH (A) LIMIT THE CONVERSION RIGHTS
OF  THE  HOLDER,  (B)  SPECIFY VOLUNTARY AND MANDATORY REPAYMENT, PREPAYMENT AND
REDEMPTION  RIGHTS  AND  OBLIGATIONS AND (C) SPECIFY EVENTS OF DEFAULT FOLLOWING
WHICH  THE  REMAINING  BALANCE  DUE  AND  OWING  HEREUNDER  MAY  BE ACCELERATED.

No.  1                                                          Up  to  $500,000

                                   E-REX, INC.

                              10% Convertible Note

     E-REX,  INC.,  a  Nevada  corporation  (together  with  its successors, the
"Company"),  for value received hereby promises to pay to Auxiliarius Fortunare,
LLC  or his registered assigns, the principal sum of up to Five Hundred Thousand
Dollars  ($500,000.00)  or,  if  less,  the  principal  amount of this Note then
outstanding,  on the Maturity Date to the Holder in such coin or currency of the
United States of America as at the time of payment shall be legal tender for the
payment  of  public and private debts, and to pay interest on (each an "Interest
Payment  Date")  (i)  the Maturity Date, (ii) each Conversion Date, as hereafter
defined,  and (iii) the date the principal amount of the Convertible Notes shall
be  declared  to  be  or  shall  automatically  become  due  and payable, on the
principal  sum  hereof  outstanding  in  like coin or currency, at the rates per
annum  set  forth  below.  The Maturity Date shall be that date which is two (2)
years  from  the date of each delivery of part or all of the principal amount as
set  forth  below.

     The  Holder  shall  be  required to deliver the principal amount under this
Note  according  to  the  following  schedule:

          (a)     Holder  shall  deliver the sum of $10,000 every seven (7) days
beginning  on  the  seventh (7th) day following the conditions precedent (each a
"Funding  Day"):

               (i)     the  effectiveness within 120 days of the Closing Date as
defined  in  the  Agreement  (and  continued  effectiveness)  of  a Registration
Statement  filed with the Securities and Exchange Commission which registers the
resale  of  the shares of Company common stock to be received by the Holder upon
conversion  of  some  or  all  of  the  principal  amount  of  this  Note;  and

<PAGE>

               (ii)     the average trading volume of the Company's common stock
during  the  fifteen  (15) trading days preceding each Funding Day is within the
range  set  forth in the table attached hereto and made a part hereof as Exhibit
II;  and

               (iii)     the  average  Closing Bid Price of the Company's common
stock  during  the fifteen (15) trading days preceding the Funding Day is within
the  range  set  forth  in  the  table attached hereto and made a part hereof as
Exhibit  II.

               (iv)     the  conditions  precedent  set  forth  in  (a)(ii)  and
(a)(iii),  and  the  Conversion  Price applicable to any given funding traunche,
shall  be  reset based on the table set forth in Exhibit II based on the Closing
Bid  Price  on  each  applicable  Funding  Day.

          (b)     Holder  shall  have  no  obligation  to  deliver the principal
amount under this Note unless and until the conditions set forth above have been
satisfied.

     The  interest  rate  shall  be  ten  percent (10%) per annum (the "Interest
Rate")  or,  if  less,  the  maximum rate permitted by applicable law.  Past due
amounts  (including  interest,  to the extent permitted by law) will also accrue
interest  at  the Interest Rate plus two percent (2%) per annum or, if less, the
maximum  rate  permitted  by  applicable  law,  and  will  be  payable on demand
("Default  Interest").  Interest  on this Convertible Note will be calculated on
the  basis  of  a 360-day year of twelve (12) months.  All payments of principal
and  interest  hereunder shall be made for the benefit of the Holder pursuant to
the terms of the Agreement (hereafter defined).  Except as otherwise provided in
this  Convertible Note, the interest payable on each Interest Payment Date shall
be  added  to  the outstanding principal amount of this Convertible Note on such
date and thereafter be considered part of the outstanding principal amount.  The
Company  may  elect  to pay the interest payable on any Interest Payment Date in
cash, provided it gives the registered holder written notice of such election at
least  five  (5) Business Days prior to the applicable Interest Payment Date and
pays  the same by such date.  On each Conversion Date, interest shall be paid in
shares  of  Common  Stock  on  the  portion  of  the  principal  balance  of the
Convertible  Note  then  being  converted.  The number of shares of Common Stock
issued as interest shall be determined by dividing the dollar amount of interest
due  on  the applicable Interest Payment Date by the Conversion Price or Default
Conversion  Price  then  in  effect.

     This Convertible Note (this "Convertible Note") is one of a duly authorized
issuance of $500,000 original aggregate principal amount of Convertible Notes of
the  Company  referred to in that certain Securities Purchase Agreement dated as
of  the  date  hereof  between the Company and the Purchasers named therein (the
"Agreement").  The  Agreement  contains  certain additional agreements among the
parties  with  respect to the terms of this Convertible Note, including, without
limitation,  provisions which (A) limit the conversion rights of the Holder, (B)
specify  voluntary and mandatory repayment, prepayment and redemption rights and
obligations  and  (C)  specify  Events  of Default following which the remaining
balance  due and owing hereunder may be accelerated.  All such provisions are an
integral part of this Convertible Note and are incorporated herein by reference.
This  Convertible Note is transferable and assignable to one or more Persons, in
accordance  with  the  limitations  set  forth  in  the  Agreement.

<PAGE>

     The  Company  shall  keep  a  register  (the  "Register") in which shall be
entered  the  names  and  addresses of the registered holder of this Convertible
Note  and  particulars  of  this Convertible Note held by such holder and of all
transfers of this Convertible Note.  References to the Holder or "Holders" shall
mean  the  Person  listed  in  the  Register  as  the  registered holder of such
Convertible  Notes.  The  ownership  of this Convertible Note shall be proven by
the  Register.

     1.     Certain  Terms  Defined.  All terms defined in the Agreement and not
            -----------------------
otherwise  defined  herein  shall have for purposes hereof the meanings provided
for  in  the  Agreement.

     2.     Covenants.  Unless  the  Majority  Holders  otherwise  consent  in
            ---------
writing,  the  Company  covenants  and agrees to observe and perform each of its
covenants,  obligations  and  undertakings  contained  in  the  Agreement, which
obligations  and  undertakings  are  expressly assumed herein by the Company and
made  for  the  benefit  of  the  holder  hereof.

     3.     Payment  of Principal.  The Company shall repay the remaining unpaid
            ---------------------
balance  on  this  Convertible  Note on the Maturity Date.  The Company may, and
shall  be  obligated to, prepay all or a portion of this Convertible Note on the
terms  specified  in  the  Agreement.

     4.1     Conversion  of  Convertible Note.  The Holder shall have the right,
             --------------------------------
at  its option, at any time from and after the date of the Agreement, to convert
the  principal amount of this Convertible Note, or any portion of such principal
amount,  into that number of fully paid and nonassessable shares of Common Stock
(as  such  shares shall then be constituted) determined pursuant to this Section
4.1.  The  number of shares of Common Stock to be issued upon each conversion of
this  Convertible Note shall be determined by dividing the Conversion Amount (as
defined  below)  by  the Conversion Price in effect on the date (the "Conversion
Date")  a  Notice  of  Conversion  is  delivered to the Company by the Holder by
facsimile  or  other  reasonable means of communication dispatched prior to 5:00
p.m.,  Florida  Time.  The  term  "Conversion Amount" means, with respect to any
conversion of this Convertible Note, the sum of (1) the principal amount of this
Convertible  Note to be converted in such conversion plus (2) accrued and unpaid
interest,  if  any,  on  such principal amount at the interest rates provided in
this  Convertible Note to the Conversion Date plus (3) Default Interest, if any,
on  the  interest  referred to in the immediately preceding clause (2); the term
"Conversion  Price"  means $0.008 per share, unless the price and trading volume
of  the Company's common stock require that the Conversion Price be reset as set
forth  in  Exhibit  II attached hereto and made a part hereof, in which case the
Conversion  Price  shall  be  as  set  forth  therein.

     4.2     Irrevocable Instructions to Transfer Agent. Consistent with Section
             ----------------------------------------------
7.10  of  the Agreement, the Company (i) shall promptly irrevocably instruct its
transfer  agent  to  issue  certificates  for  the  Common  Stock  issuable upon
conversion  of  this  Convertible Note and (ii) agrees that its issuance of this
Convertible  Note shall constitute full authority to its officers and agents who
are  charged  with the duty of executing stock certificates to execute and issue
the  necessary  certificates  for  shares of Common Stock in accordance with the
terms  and  conditions  of  this  Convertible  Note.

<PAGE>

     4.3     Method  of  Conversion
             ----------------------

     (a)     Notwithstanding  anything  to  the  contrary set forth herein, upon
conversion  of  this  Convertible  Note in accordance with the terms hereof, the
Holder  shall  not  be required to physically surrender this Convertible Note to
the  Company  unless the entire unpaid principal amount of this Convertible Note
is  so  converted.  Rather,  records  showing the principal amount converted (or
otherwise  repaid)  and  the  date  of  such  conversion  or  repayment shall be
maintained  on  a ledger substantially in the form of Annex I attached hereto (a
                                                      -------
copy  of  which shall be delivered to the Company and the Escrow Agent with each
Notice  of Conversion).  It is specifically contemplated that the Company hereof
shall act as the calculation agent for conversions and repayments.  In the event
of any dispute or discrepancies, such records maintained by the Company shall be
controlling  and determinative in the absence of manifest error.  The Holder and
any  assignee,  by  acceptance  of  this Convertible Note, acknowledge and agree
that, by reason of the provisions of this paragraph, following a conversion of a
portion  of  this  Convertible  Note,  the  principal amount represented by this
Convertible  Note will be the amount indicated on Annex I attached hereto (which
                                                  -------
may  be  less  than  the  amount  stated  on  the  face  hereof).

     (b)     The  Company  shall  not  be  required  to pay any tax which may be
payable  in  respect  of  any  transfer involved in the issuance and delivery of
shares  of  Common  Stock  or other securities or property on conversion of this
Convertible  Note  in  a name other than that of the Holder (or in street name),
and  the  Company  shall  not be required to issue or deliver any such shares or
other  securities or property unless and until the person or persons (other than
the  Holder or the custodian in whose street name such shares are to be held for
the  Holder's  account)  requesting  the issuance thereof shall have paid to the
Company the amount of any such tax or shall have established to the satisfaction
of  the  Company  that  such  tax  has  been  paid.

     (c)     Upon receipt  by  the  Company  and  Escrow  Agent  of  a Notice of
Conversion,  the Holder shall be deemed to be the holder of record of the Common
Stock  issuable  upon  such conversion, the outstanding principal amount and the
amount  of accrued and unpaid interest on this Convertible Note shall be reduced
to  reflect such conversion, and, unless the Company defaults on its obligations
under this Article 4, all rights with respect to the portion of this Convertible
Note  being  so  converted shall forthwith terminate except the right to receive
the  Common Stock or other securities, cash or other assets, as herein provided,
on  such  conversion.  If  the Holder shall have given a Notice of Conversion as
provided  herein, the Company's obligation to issue and deliver the certificates
for  shares of Common Stock shall be absolute and unconditional, irrespective of
the  absence  of  any  action  by  the Holder to enforce the same, any waiver or
consent  with  respect  to  any  provision thereof, the recovery of any judgment
against  any person or any action by the Holder to enforce the same, any failure
or delay in the enforcement of any other obligation of the Company to the Holder
of  record,  or any setoff, counterclaim, recoupment, limitation or termination,
or  any breach or alleged breach by the Holder of any obligation to the Company,
and  irrespective  of  any  other  circumstance which might otherwise limit such
obligation  of the Company to the Holder in connection with such conversion. The
date  of  receipt  (including receipt via telecopy) of such Notice of Conversion
shall be the Conversion Date so long as it is received before 5:00 p.m., Florida
Time,  on  such  date.

<PAGE>

     5.     Miscellaneous.  This  Convertible  Note  shall  be  deemed  to  be a
            -------------
contract made under the laws of the State of Florida, and for all purposes shall
be  governed  by  and  construed  in accordance with the laws of said State. The
parties hereto, including all guarantors or endorsers, hereby waive presentment,
demand, notice, protest and all other demands and notices in connection with the
delivery,  acceptance,  performance  and  enforcement  of this Convertible Note,
except  as specifically provided herein, and assent to extensions of the time of
payment,  or  forbearance or other indulgence without notice. The Company hereby
submits  to  the  exclusive jurisdiction of the United States District Court for
the  State  of  Florida and of any Florida state court for purposes of all legal
proceedings  arising  out  of  or relating to this Convertible Note. The Company
irrevocably  waives, to the fullest extent permitted by law, any objection which
it  may  now or hereafter have to the laying of the venue of any such proceeding
brought in such a court and any claim that any such proceeding brought in such a
court  has been brought in an inconvenient forum. The Company hereby irrevocably
waives any and all right to trial by jury in any legal proceeding arising out of
or  relating  to this Convertible Note. Notwithstanding anything to the contrary
in  the foregoing, at the election of the Holder, any dispute between the Holder
and  the  Company may be arbitrated, rather than litigated in the courts, before
and  in  accordance  with the rules of the American Arbitration Association. The
Company  agrees  to  submit  to  and  participate  in  any  such  arbitration.

     The  Holder of this Convertible Note by acceptance of this Convertible Note
agrees  to  be  bound  by  the  provisions  of  this  Convertible Note which are
expressly  binding  on  such  Holder.

                            [Signature page follows]

<PAGE>
     IN  WITNESS  WHEREOF,  the  Company  has  caused this instrument to be duly
executed.

     Dated:  October  14,  2002

                                   E-REX,  INC.,
                                   a  Nevada  corporation

                                   /s/  Carl  Dilley
                                   -----------------
                                   By:  Carl  Dilley
                                        ------------
                                   Its:  President
                                         ---------

<PAGE>

<TABLE>
<CAPTION>
                                                      ANNEX I

                                           CONVERSION AND REPAYMENT LEDGER

<S>   <C>                <C>                         <C>                          <C>
         PRINCIPAL   INTERESTED CONVERTED   PRINCIPAL           NEW PRINCIPAL
DATE     BALANCE     OR PAID                CONVERTED OR PAID   BALANCE         ISSUER INITIALS   HOLDER INITIALS
----     ---------   --------------------   -----------------   -------------   ---------------   ---------------

</TABLE>

<PAGE>

                                    EXHIBIT I

                              NOTICE OF CONVERSION

   (To be Executed by the Registered Holder in order to Convert the Convertible
                                      Note)

     The undersigned hereby irrevocably elects to convert $______________ of the
above  Convertible  Note  into  shares  of Common Stock of E-Rex, Inc., a Nevada
corporation  ("Company")  according  to  the  conditions  set  forth  in  such
Convertible  Note,  as  of  the  date  written  below.

     If  shares  are  to  be  issued  in  the  name  of  a person other than the
undersigned,  the  undersigned will pay all transfer and other taxes and charges
payable  with  respect  thereto.

Date  of  Conversion:______________________________________

Applicable  Conversion  Price     $0.008  (unless reset pursuant to
                                  ----------------------------------------------
                                  Section  4.1  of  the  Note.
                                  ----------------------------------------------

Signature:_________________________________________________
          [Print  Name  of  Holder  and  Title  of  Signer]

Address:___________________________________________________
___________________________________________________________

SSN  or  EIN:______________________________________________
Shares  are  to  be  registered  in  the  following  name:

Name:______________________________________________________
Address:___________________________________________________
Tel:_______________________________________________________
Fax:_______________________________________________________
SSN  or  EIN:______________________________________________

Shares  are  to  be  sent  or  delivered  to  the  following  account:

Account  Name:_____________________________________________
Address:___________________________________________________
Tel:_______________________________________________________
Fax:_______________________________________________________
SSN  or  EIN:______________________________________________

<PAGE>

<TABLE>
<CAPTION>
                                              EXHIBIT II

                                   EREX FUNDING RESET PROVISION TABLE

<S>                                 <C>               <C>                <C>               <C>
                                    AVERAGE 15 DAYS   CONVERTIBLE        MINIMUM 15 PRIOR  WEEKLY
                                    PRIOR CLOSING     NOTE               TRADING DAYS      TRANCHE
                                    BID PRICE         CONVERSION PRICE   DAILY VOLUME      FUNDING

Reset Provision 12 . . . . . . . .  $           0.25  $           0.188            60,000  $ 10,000
Reset Provision 11 . . . . . . . .  $           0.15  $           0.113            90,000  $ 10,000
Reset Provision 10 . . . . . . . .  $           0.10  $           0.075           140,000  $ 10,000
Reset Provision 9. . . . . . . . .  $           0.08  $           0.060           170,000  $ 10,000
Reset Provision 8. . . . . . . . .  $           0.05  $           0.038           270,000  $ 10,000
Reset Provision 7. . . . . . . . .  $           0.04  $           0.030           350,000  $ 10,000
Reset Provision 6. . . . . . . . .  $          0.025  $           0.019           550,000  $ 10,000
Reset Provision 5. . . . . . . . .  $          0.015  $           0.011           900,000  $ 10,000
DOC EXECUTION PARAMETERS . . . . .  $          0.009  $           0.007         1,500,000  $ 10,000
Reset Provision 1. . . . . . . . .  $          0.007  $           0.006         1,900,000  $ 10,000
----------------------------------  ----------------  -----------------  ----------------  --------
Reset Provision 2. . . . . . . . .  $          0.006  $           0.005         2,200,000  $ 10,000
Reset Provision 3. . . . . . . . .  $          0.005  $           0.004         2,700,000  $ 10,000
Reset Provision 4. . . . . . . . .  $          0.004  $           0.003         3,400,000  $ 10,000
</TABLE>THIS  COMMON STOCK PURCHASE WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"). THE HOLDER HEREOF, BY PURCHASING
THIS  COMMON  STOCK PURCHASE WARRANT, AGREES FOR THE BENEFIT OF THE COMPANY THAT
SUCH  SECURITIES  MAY  BE OFFERED, SOLD OR OTHERWISE TRANSFERRED ONLY (A) TO THE
COMPANY,  (B)  PURSUANT  TO  AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT,  OR  (C)  IF  REGISTERED  UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE
SECURITIES  LAWS.  IN  ADDITION, A SECURITIES PURCHASE AGREEMENT, DATED THE DATE
HEREOF,  A  COPY  OF  WHICH  MAY  BE  OBTAINED FROM THE COMPANY AT ITS PRINCIPAL
EXECUTIVE  OFFICE,  CONTAINS  CERTAIN  ADDITIONAL  AGREEMENTS AMONG THE PARTIES,
INCLUDING, WITHOUT LIMITATION, PROVISIONS WHICH LIMIT THE EXERCISE RIGHTS OF THE
HOLDER.

                                   E-REX, INC.

                          COMMON STOCK PURCHASE WARRANT

No.  1                                  Warrant  to  Purchase  5,000,000  Shares

     E-REX,  INC.,  a Nevada corporation (the "Company"), hereby certifies that,
for  value received, Auxiliarius Fortunare,LLC, or assigns, is entitled, subject
to  the  terms set forth below, to purchase from the Company at any time or from
time  to  time  during the period commencing October 14, 2002 and ending October
14,  2004  (the  "Exercise  Period"),  at  the  Purchase  Price  (as hereinafter
defined),  five  million  (5,000,000) shares of the fully paid and nonassessable
shares  of Common Stock of the Company.  The number and character of such shares
of  Common  Stock  and  the Purchase Price are subject to adjustment as provided
herein.

     This  Warrant  (this "Warrant"; such term to include any warrants issued in
substitution  therefor)  is  one  of  a  series  of  one  (1) warrants issued in
connection  with  that  certain  Securities Purchase Agreement (the "Agreement")
dated  of  even  date  herewith among the initial Holder hereof, the Company and
certain  other  parties  thereto.

     Capitalized terms used herein not otherwise defined shall have the meanings
ascribed  thereto  in the Agreement.  As used herein the following terms, unless
the  context  otherwise  requires,  have  the  following  respective  meanings:

          (a)     The  term  "Agreement"  refers  to  that  certain  Securities
Purchase  Agreement dated the date herewith among the initial Holder hereof, the
Company  and  certain  other  parties  hereto.

<PAGE>

          (b)     The term "Company" shall include E-Rex, Inc. and any  corpora-
tion that shall succeed or assume the obligations of such corporation hereunder.

          (c)     The  term  "Common  Stock"  includes  (a) the Company's common
stock,  par  value $0.001 per share, (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 though 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.

          (d)     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)  that the Holder of this Warrant at any time shall be entitled to
receive,  or shall have received, on the exercise of this Warrant, in lieu of or
in addition to Common Stock, or that 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  3  or  otherwise.

          (e)     The  term  "Purchase  Price"  means  $0.008  per  share.

          (f)     The  term  "Registration  Rights  Agreement"  refers  to  that
certain  Registration Rights Agreement dated the date herewith among the initial
Holder  hereof,  the  Company  and  certain  other  parties  hereto.

     1.     Exercise  of  Warrant.

     1.1.     Method  of  Exercise.

     (a)     This  Warrant may be exercised in whole or in part (but not as to a
fractional  share of Common Stock), at any time and from time to time during the
Exercise  Period  by  the  Holder  hereof by delivery of a notice of exercise (a
"Notice  of Exercise") in the form attached hereto as Exhibit I via facsimile to
                                                      ---------
the Company.  Promptly thereafter the Holder shall surrender this Warrant to the
Company  at  its  principal office, accompanied by payment of the Purchase Price
multiplied  by  the  number  of shares of Common Stock for which this Warrant is
being  exercised (the "Exercise Price").  Payment of the Exercise Price shall be
made  by wire transfer to the account of the Company.  Upon exercise, the Holder
shall  be  entitled to receive, one or more certificates, issued in the Holder's
name  or  in  such  name  or  names  as  the  Holder  may direct, subject to the
limitations  on  transfer  contained  herein, for the number of shares of Common
Stock  so purchased.  The shares of Common Stock so purchased shall be deemed to
be  issued  as  of  the close of business on the date on which the Company shall
have  received  from  the  Holder  payment  of the Exercise Price (the "Exercise
Date").

<PAGE>

     (b)     Notwithstanding anything to the contrary  set  forth  herein,  upon
exercise  of  all  or  a  portion  of  this Warrant in accordance with the terms
hereof, the Holder shall not be required to physically surrender this Warrant to
the  Company.  Rather,  records  showing the amount so exercised and the date of
exercise  shall be maintained on a ledger in the form of Annex B attached hereto
                                                         -------
(a  copy  of which shall be delivered to the Company or transfer agent with each
Notice  of  Exercise).  It  is specifically contemplated that the Company hereof
shall  act  as  the calculation agent for all exercises of this Warrant.  In the
event  of  any  dispute or discrepancies, such records maintained by the Company
shall  be  controlling  and determinative in the absence of manifest error.  The
Holder  and  any  assignee, by acceptance of this Warrant, acknowledge and agree
that,  by reason of the provisions of this paragraph, following an exercise of a
portion  of  this  Warrant,  the number of shares of Common Stock represented by
this  Warrant will be the amount indicated on Annex B attached hereto (which may
                                              -------
be  less  than  the  amount  stated  on  the  face  hereof).
     1.2.     Regulation  D  Restrictions.  The  Holder  hereof  represents  and
warrants  to  the  Company  that  it  has  acquired this Warrant and anticipates
acquiring  the  shares  of  Common  Stock  issuable upon exercise of the Warrant
solely for its own account for investment purposes and not with a view to or for
resale  of  such  securities  unless  such  resale  has been registered with the
Commission  or  an applicable exemption is available therefor.  At the time this
Warrant  is exercised, the Company may require the Holder to state in the Notice
of  Exercise  such  representations  concerning  the  Holder as are necessary or
appropriate  to  assure  compliance  by  the  Holder  with  the  Securities Act.

     1.3.     Limitation on Exercise.  Notwithstanding  the rights of the Holder
to exercise all or a  portion of this Warrant as described herein, such exercise
rights  shall  be limited, solely to the extent set forth in the Agreement as if
such provisions were specifically set forth herein.  Specifically, the rights of
the  Holder  to  exercise  all  or  a portion of this Warrant are subject to the
limitation  on  exercise  provisions specified in Section 10.1 of the Agreement.

     2.     Delivery  of  Stock  Certificates  on  Exercise.   Within  five  (5)
business  days  after  the  exercise of this Warrant, the Company at its expense
(including  the  payment by it of any applicable issue, stamp or transfer taxes)
will  cause to be issued in the name of and delivered to the Holder thereof, or,
to  the  extent  permissible  hereunder, to such other person as such Holder may
direct,  a  certificate  or  certificates  for  the  number  of  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 applicable Purchase Price, 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
which  certificate  or  certificates  shall be without restrictive legend of any
nature  provided  that  a  registration statement has been declared effective in
accordance  with  the  Registration  Rights  Agreement,  and  if  a registration
statement  has  not  been  declared effective, then in accordance with Rule 144.

<PAGE>

     3.     Adjustment of Purchase Price In Certain Events.  The Purchase  Price
to be paid by the Holder upon exercise of this Warrant, and the consideration to
be received upon exercise of this Warrant, shall be adjusted in case at any time
or from time to time for Capital Reorganizations as provided in the Agreement as
if  such  provisions  were  specifically  set  forth  herein.

     4.     No  Impairment.  The Company will  not, by amendment of its Articles
of Incorporation or through  any  reorganization,  transfer  of  assets,consoli-
dation,  merger, dissolution, issue or sale of securities or any other voluntary
action, avoid or seek to avoid the observance or performance of any of the terms
of  this Warrant, but will at all times in good faith assist in the carrying out
of  all  such  terms and in the taking of all such action as may be necessary or
appropriate in order to protect the rights of the Holder of this Warrant against
impairment.  Without  limiting  the generality of the foregoing, the Company (a)
will  not  increase  the  par  value  of  any  shares of stock receivable on the
exercise of this Warrant above the amount payable therefor on such exercise, (b)
will  take  all such action as may be necessary or appropriate in order that the
Company  may  validly  and  legally issue fully paid and nonassessable shares of
stock  on  the  exercise  of  this  Warrant,  and  (c)  will not transfer all or
substantially all of its properties and assets to any other person (corporate or
otherwise),  or  consolidate  with  or merge into any other person or permit any
such person to consolidate with or merge into the Company (if the Company is not
the  surviving  person),  unless  such  other  person  shall expressly assume in
writing  and  will  be  bound  by  all  the  terms  of  this  Warrant.

     5.     Intentionally  Left  Blank.

     6.     Notices  of  Record  Date.  In  the  event  of

     (a)     any  taking  by the Company of a record of the Holders of any class
or  securities  for  the  purpose  of  determining  the  Holders thereof who are
entitled  to  receive  any  dividend  or  other  distribution,  or  any right to
subscribe for, purchase or otherwise acquire any shares of stock of any class or
any  other  securities  or  property,  or  to  receive  any  other  right,  or

     (b)     any capital reorganization of the Company,  any reclassification or
recapitalization  of  the capital stock of the Company or any transfer of all or
substantially all the assets of the Company to or consolidation or merger of the
Company  with  or  into  any  other  person,  or

     (c)     any voluntary or involuntary dissolution, liquidation or winding-up
of the  Company,

then  and  in each such event the Company will mail or cause to be mailed to the
Holder of this Warrant a notice specifying (i) the date on which any such record
is  to  be  taken  for  the purpose of such dividend, distribution or right, and
stating  the  amount  and character of such dividend, distribution or right, and
(ii) the date on which any  such  reorganization,  reclassification, recapitali-
zation,  transfer, consolidation, merger, dissolution, liquidation or winding-up
is  to  take  place,  and the time, if any, as of which the Holders of record of
Common Stock (or Other Securities) shall be entitled to  exchange  their  shares
of  Common  Stock  (or  Other  Securities)  for  securities  or  other  property
deliverable on such reorganization, reclassification, recapitalization, transfer
consolidation, merger, dissolution, liquidation or winding-up. Such notice shall
be  mailed  at least twenty (20) days prior to the date specified in such notice
on  which  any  action  is  to  be  taken.

<PAGE>

     7.     Reservation  of  Stock Issuable on Exercise of Warrant.  The Company
will  at  all times reserve and keep available, solely for issuance and delivery
on  the  exercise  of  this  Warrant,  all  shares  of  Common  Stock  (or Other
Securities)  from  time  to  time  issuable  on  the  exercise  of this Warrant.

     8.     Exchange  of  Warrant.  On  surrender  for exchange of this Warrant,
properly  endorsed and in compliance with the restrictions on transfer set forth
in  the  legend  on the face of this Warrant, to the Company, the Company at its
expense  will  issue  and deliver to or on the order of the Holder thereof a new
Warrant  of like tenor, in the name of such Holder or as such Holder (on payment
by  such  Holder  of  any  applicable transfer taxes) may direct, calling in the
aggregate  on the face or faces thereof for the number of shares of Common Stock
called  for  on  the  face  of  the  Warrant  so  surrendered.

     9.     Replacement of Warrant.  On receipt of evidence reasonably satisfac-
tory  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.

     10.    Remedies.  The  Company stipulates that the remedies at law  of  the
Holder  of this Warrant in the event of any default or threatened default by the
Company  in  the  performance  of  or  compliance  with any of the terms of this
Warrant  are  not  and  will  not  be  adequate,  and  that  such  terms  may be
specifically  enforced by a decree for the specific performance of any agreement
contained  herein  or  by  an injunction against a violation of any of the terms
hereof  or  otherwise.

     11.    Negotiability, etc. This Warrant is issued upon the following terms,
to  all  of  which each Holder or owner hereof by the taking hereof consents and
agrees:

     (a)     title  to  this  Warrant  may  be  transferred  by  endorsement and
delivery  in  the  same  manner  as  in  the  case  of  a  negotiable instrument
transferable  by  endorsement  and  delivery.

     (b)     any  person  in  possession  of  this  Warrant properly endorsed is
authorized  to  represent  himself  as absolute owner hereof and is empowered to
transfer absolute title hereto by endorsement and delivery hereof to a bona fide
purchaser  hereof  for value; each prior taker or owner waives and renounces all
of  his  equities  or  rights  in  this  Warrant in favor of each such bona fide
purchaser, and each such bona fide purchaser shall acquire absolute title hereto
and  to  all  rights  represented  hereby;

     (c)     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;  and

<PAGE>

     (d)     notwithstanding  the  foregoing,  this  Warrant  may  not  be sold,
transferred  or  assigned except pursuant to an effective registration statement
under  the  Securities  Act  or  pursuant  to an applicable exemption therefrom.

     12.    Registration  Rights.  The  Company  is  obligated  to register  the
shares of Common Stock issuable upon exercise of this Warrant in accordance with
the  terms  of  the  Registration  Rights  Agreement.

     13.    Notices.  All notices and other communications from the  Company  to
the  Holder  of  this  Warrant  shall  be  mailed  by  first class registered or
certified  mail,  postage prepaid, at such address as may have been furnished to
the Company in writing by such Holder or, until any such Holder furnishes to the
Company  an  address,  then  to,  and at the address of, the last Holder of this
Warrant  who  has  so  furnished  an  address  to  the  Company.

     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  internal  laws  of the State of Florida. 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.

DATED  as  of  October  14,  2002.

               E-REX,  INC.

               By:   /s/  Carl  Dilley
                     -----------------
               Name:  Carl  Dilley
                      ------------
               Title: President
                      ---------

[Corporate  Seal]

Attest:

By:     Carl  Dilley
        ------------
        Secretary

<PAGE>

                                    EXHIBIT I

                      FORM OF NOTICE OF EXERCISE - WARRANT
                      ------------------------------------
                       (To be executed only upon exercise
                       of the Warrant in whole or in part)

To:  E-REX,  INC.

     The  undersigned  registered  Holder  of  the  accompanying  Warrant hereby
exercises  such  Warrant  or  portion  thereof  for,  and  purchases thereunder,
______________  shares of Common Stock (as defined in such Warrant) and herewith
makes  payment therefor in the amount and manner set forth below, as of the date
written  below.  The  undersigned requests that the certificates for such shares
of Common  Stock  be  issued  in  the  name  of,  and  delivered  to, __________
  whose  address  is  _________________________________________________________.

     The  Exercise Price is paid by check or wire transfer to the account of the
Company  in  the  amount  of  $________.

     Upon  exercise  pursuant  to this Notice of Exercise, the Holder will be in
compliance  with  the  Limitation  on  Exercise  (as  defined  in the Securities
Purchase  Agreement  pursuant  to  which  this  Warrant  was  issued).

Dated:  ____________________       _____________________________________________
                                  (Name  must  conform  to  name  of  Holder  as
                                    specified  on  the  face  of  the  Warrant)

                                   By:_________________________________
                                   Name:_______________________________
                                   Title:______________________________

                                   Address  of  Holder:________________
                                   ____________________________________
                                   ____________________________________

Date  of  exercise:______________________

     Insert  the  number  of shares of Common Stock as to which the accompanying
Warrant  is being exercised. In the case of a partial exercise, a new Warrant or
Warrants  will  be issued and delivered, representing the unexercised portion of
the  accompanying  Warrant,  to  the  holder  surrendering  the  same.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]