Document:

INVESTMENT AGREEMENT

INVESTMENT  AGREEMENT  (this  "AGREEMENT"),  dated  as  of June 3, 2005 by and
between  XTREME  COMPANIES,  INCORPORATED, a Nevada corporation (the "COMPANY"),
and  Preston  Capital  Partners,  a  Delaware Limited Liability Corporation (the
"INVESTOR").

WHEREAS,  the  parties desire that, upon the terms and subject to the conditions
contained  herein,  the  Investor  shall invest up to $5,000,000 to purchase the
Company's  common  stock,  no  par  value  per  share  (the  "COMMON  STOCK");

WHEREAS,  such  investments  will  be  made  in  reliance upon the provisions of
Section 4(2) under the Securities Act of 1933, as amended (the "1933 ACT"), Rule
506  of  Regulation  D,  and  the  rules and regulations promulgated thereunder,
and/or  upon such other exemption from the registration requirements of the 1933
Act  as may be available with respect to any or all of the investments in Common
Stock  to  be  made  hereunder;  and

WHEREAS,  contemporaneously  with  the execution and delivery of this Agreement,
the  parties hereto are executing and delivering a Registration Rights Agreement
substantially in the form attached hereto as Exhibit A (the "REGISTRATION RIGHTS
AGREEMENT")  pursuant  to  which  the  Company  has  agreed  to  provide certain
registration  rights  under  the  1933  Act,  and  the  rules  and  regulations
promulgated  thereunder,  and  applicable  state  securities  laws.

NOW  THEREFORE,  in  consideration  of  the  foregoing  recitals, which shall be
considered  an integral part of this Agreement, the covenants and agreements set
forth  hereafter,  and  other  good  and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Company and the Investor hereby
agree  as  follows:

1.  DEFINITIONS.  As  used in this Agreement, the following terms shall have the
following  meanings  specified  or indicated, and such meanings shall be equally
applicable  to  the  singular  and  plural  forms  of  the  defined  terms.
"1933  ACT"  shall  mean  the  Securities  Act  of  1933,  as it may be amended.
"1934 ACT" shall mean the Securities Exchange Act of 1934, as it may be amended.
"AFFILIATE"  shall  have  the  meaning  specified  in  Section  5(h).
"AGREEMENT"  shall  mean  this  Investment  Agreement.
"BUY-IN"  shall  have  the  meaning  specified  in  Section  6.
"BUY-IN  ADJUSTMENT  AMOUNT"  shall  have  the  meaning  specified in Section 6.
"CLOSING"  shall  have  the  meaning  specified  in  Section  2(h).
"CLOSING  DATE"  shall mean, as defined in Section 2(h), the date which is seven
(7)  Trading  Days  following  the  Put  Notice  Date.
"COMMON  STOCK"  shall  mean  the  Common  Stock  of  the  Company.
"CONTROL"  or  "CONTROLS"  shall  have  the  meaning  specified in Section 5(h).
"COVERING  SHARES"  shall  have  the  meaning  specified  in  Section  6.
"EFFECTIVE  DATE"  shall mean the date the SEC declares effective under the 1933
Act  the  Registration  Statement  covering  the  Securities.
"ENVIRONMENTAL  LAWS"  shall  have  the  meaning  specified  in  Section  4(m).
"EXECUTION  DATE"  shall mean the date all Transaction Documents are executed by
the  Company  and  Investor.
"INDEMNITEES"  shall  have  the  meaning  specified  in  Section  10.
"INDEMNIFIED  LIABILITIES"  shall  have  the  meaning  specified  in Section 10.
"INEFFECTIVE  PERIOD"  shall  mean  any  period  of  time  that the Registration
Statement  or  any  Supplemental  Registration  Statement  (as  defined  in  the
Registration  Rights  Agreement)  becomes ineffective or unavailable for use for
the  sale  or resale, as applicable, of any or all of the Registrable Securities
(as  defined  in  the  Registration  Rights Agreement) for any reason (or in the
event  the  prospectus under either of the above is not current and deliverable)
during  any  time  period  required  under  the  Registration  Rights Agreement.
"INVESTOR"  shall  mean  Preston  Capital  Partners.,  a  Delaware  LLC.
"MAJOR  TRANSACTION"  shall  have  the  meaning  specified  in  Section  2(g).
"MATERIAL  ADVERSE  EFFECT"  shall  have  the meaning specified in Section 4(a).
"MATERIAL  FACTS"  shall  have  the  meaning  specified  in  Section  2(m).
"MAXIMUM  COMMON  STOCK  ISSUANCE"  shall  have the meaning specified in Section
2(j).
"MINIMUM ACCEPTABLE PRICE" with respect to any Put Notice Date shall mean 75% of
the  average  of  the closing bid prices for the fifteen (15) Trading Day period
immediately  preceding  such  Put  Notice  Date.
"OPEN  PERIOD"  shall mean the period beginning on and including the Trading Day
immediately  following  the Effective Date and ending on the earlier to occur of
(i)  the  date  which is 36 (thirty-six) months from the Effective Date and (ii)
termination  of  the  Agreement  in  accordance  with  Section  9.
"PRICING  PERIOD"  shall  mean  the  period beginning on the Put Notice Date and
ending  on  and including the date which is five (5) Trading Days after such Put
Notice  Date.
"PRINCIPAL  MARKET"  shall  mean the American Stock Exchange, Inc., the National
Association  of  Securities  Dealer's,  Inc.  OTC-BB, the NASDAQ National Market
System  or  the  NASDAQ  Small  Cap Market, whichever is the principal market on
which  the  Common  Stock  is  listed.
"PROSPECTUS"  shall mean the prospectus, preliminary prospectus and supplemental
prospectus  used  in  connection  with  the  Registration  Statement.
"PURCHASE  AMOUNT"  shall  mean the total amount being paid by the Investor on a
particular  Closing  Date  to  purchase  the  Securities.
"PURCHASE PRICE" shall mean 95% (ninety-five percent) of the average of the Four
lowest  posted  bid  price  of  the  Common Stock during the Pricing Period in a
Trading  Day.
"PUT  AMOUNT"  shall  have  the  meaning  set  forth  in  Section  2(b)  hereof.
"PUT  NOTICE"  shall  mean  a written notice sent to the Investor by the Company
stating  the  Put  Amount  of Shares the Company intends to sell to the Investor
pursuant  to the terms of the Agreement and stating the current number of Shares
issued  and  outstanding  on  such  date.
"PUT  NOTICE  DATE"  shall mean the Trading Day immediately following the day on
which  the  Investor receives a Put Notice, however a Put Notice shall be deemed
delivered on (x) the Trading Day it is received by facsimile or otherwise by the
Investor  if  such  notice is received prior to 2:00 pm Eastern Time, or (y) the
immediately  succeeding  Trading Day if it is received by facsimile or otherwise
after  2:00  pm  Eastern  Time  on  a  Trading  Day. No Put Notice may be deemed
delivered  on  a  day  that  is  not  a  Trading  Day.
"PUT  RESTRICTION" shall mean the days between the end of the Pricing Period and
the  date  on  which  the  Investor  deems the Put closed. During this time, the
Company  shall  not  be  entitled to deliver another Put Notice unless there has
been  a  release  of  shares.
"REGISTRATION  OPINION  DEADLINE"  shall mean the date that is three (3) Trading
Days  prior  to  each  Put  Notice  Date.
"REGISTRATION  PERIOD"  shall  have  the  meaning  specified  in  Section  5(c).
"REGISTRATION  RIGHTS  AGREEMENT"  shall  mean the Agreement entered into by the
Company  with  Investor  for  the  registration  of  the  Securities.
"REGISTRATION  STATEMENT"  means the registration statement of the Company filed
under  the  1933  Act  covering  the  Common  Stock  issuable  hereunder.
"RELATED  PARTY"  shall  have  the  meaning  specified  in  Section  5(h).
"RESOLUTION"  shall  have  the  meaning  specified  in  Section  8(f).
"SEC"  shall  mean  the  U.S.  Securities  &  Exchange  Commission.
"SEC  DOCUMENTS"  shall  have  the  meaning  specified  in  Section  4(f).
"SECURITIES"  shall mean the shares of Common Stock issued pursuant to the terms
of  the  Agreement.
"SHARES"  shall  mean  the  shares  of common stock of the Company having no par
value  per  share.
"SOLD  SHARES"  shall  have  the  meaning  specified  in  Section  6.
"SUBSIDIARIES"  shall  have  the  meaning  specified  in  Section  4(a).
"TRADING DAY" shall mean any day on which the Principal Market for the Company's
common  stock  is  open  for  trading,  from the hours of 9:30 am until 4:00 pm.
"TRANSACTION  DOCUMENTS"  shall  mean  this  Agreement,  the Registration Rights
Agreement,  the Investor Agreement and each of the other agreements entered into
by  the  parties  hereto  in  connection  with  this  Agreement.
"VALUATION  EVENT"  shall  have  the  meaning  specified  in  Section  2(k).

2.  PURCHASE  AND  SALE  OF  COMMON  STOCK

a.  Purchase  and  Sale of Common Stock. Subject to the terms and conditions set
forth herein, the Company shall issue and sell to the Investor, and the Investor
shall purchase from the Company, up to that number of Shares having an aggregate
Purchase  Price  of  $5,000,000.

b.  Delivery  of  Put  Notices.  (i)  Subject to the terms and conditions of the
Transaction Documents, and from time to time during the Open Period, the Company
may,  in  its sole discretion, deliver a Put Notice to the Investor which states
the  Put Amount (designated in shares of Common Stock) which the Company intends
to  sell  to the Investor on a Closing Date. The Put Notice shall be in the form
attached  hereto  as  Exhibit  "F" and incorporated herein by reference. The Put
Amount  designated  by  the  Company  in  the  form  of a Put Notice shall be as
follows:
The  maximum  amount  that  the Company shall be entitled to Put to the Investor
shall  be  $100,000  per  Put.
During the Open Period, the Company shall not be entitled to submit a Put Notice
until  after the previous Closing has been completed. The Purchase Price for the
Common  Stock  identified  in  the Put Notice shall be equal to 95% (ninety-five
percent)  of  the  average  of four lowest posted bid prices of the Common Stock
during  the  Pricing  Period.
(ii)  If the closing bid price during the applicable Pricing Period with respect
to  that  Put  Notice is less than 75% (seventy-five percent) of the closing bid
prices  of  the  Common Stock for the fifteen (15) Trading Days prior to the Put
Notice  Date ("MINIMUM ACCEPTABLE PRICE") the Put Notice will terminate, only at
the  Company's  request,  sent  via FACSIMILE to the Investor, the Investor will
continue  the  Put until the FACSIMILE is received by the Investor. In the event
that  the  closing  bid price for the applicable Pricing Period is less than the
Minimum  Acceptable  Price,  the  Company  may  elect in its sole discretion, by
sending  written notice to the Investor via facsimile, to cancel that portion of
the  Put  Notice  remaining  for that number of Trading Days remaining after the
written  cancellation  notice  is  received by the Investors. The written notice
shall  be deemed received by the Investors on (i) the Trading Day it is actually
received  by  facsimile or otherwise by the Investors if such notice is received
on  or  prior  to  9:00  A.M.  New York time, or (ii) the immediately succeeding
Trading  Day  if  it  is  received  by  facsimile  after  9:00
A.M.  New  York  time  on  a  Trading  Day or at anytime on a day which is not a
Trading  Day.  Notwithstanding  the  foregoing,  there  shall  be a closing with
respect  to, and the Company shall be responsible for delivering, that number of
shares  of  Common Stock to the Investor that were sold by the Investors through
and  including  the  end  of  the Trading Day the written cancellation notice is
received  by  the  Investor.
(iii) Within Thirteen (13) calendar days after the commencement of each calendar
quarter occurring subsequent to the commencement of the Open Period, the Company
undertakes  to  notify  Investor as to its reasonable expectations as to the Put
Amount  it  intends  to  raise during such calendar quarter, if any, through the
issuance  of  Put Notices. Such notification shall constitute only the Company's
good  faith  estimate  with respect to such calendar quarter and shall in no way
obligate  the  Company  to  raise  such  amount  during such calendar quarter or
otherwise limit its ability to deliver Put Notices during such calendar quarter.
The  failure  by  the  Company to comply with this provision can be cured by the
Company's  notifying Investor at any time as to its reasonable expectations with
respect  to  the  current  calendar  quarter.

c.  Interest.  It  is the intention of the parties that any interest that may be
deemed  to  be  payable under this Agreement shall not exceed the maximum amount
permitted  under  any  applicable law. If a law, which applies to this Agreement
which  sets  the  maximum  interest  amount,  is finally interpreted so that the
interest  in  connection with this Agreement exceeds the permitted limits, then:
(1)  any  such  interest  shall be reduced by the amount necessary to reduce the
interest  to the legally permitted limit; and (2) any sums already collected (if
any) from the Company which exceed the legally permitted limits will be refunded
to  the  Company.  The  Investor  may choose to make this refund by reducing the
amount  that the Company owes under this Agreement or by making a direct payment
to  the  Company.  If  a  refund  reduces  the  amount that the Company owes the
Investor,  the  reduction  will  be  treated  as  a partial payment. In case any
provision  of  this Agreement is held by a court of competent jurisdiction to be
excessive  in  scope or otherwise invalid or unenforceable, such provision shall
be  adjusted  rather  than voided, if possible, so that it is enforceable to the
maximum  extent  possible,  and the validity and enforceability of the remaining
provisions  of  this  Agreement  will  not  in  any  way be affected or impaired
thereby.

d. INVESTOR'S OBLIGATION TO PURCHASE SHARES. Subject to the conditions set forth
in  this  Agreement, following the Investor's receipt of a validly delivered Put
Notice,  the  Investor shall be required to purchase from the Company during the
related  Pricing Period that number of Shares having an aggregate Purchase Price
equal  to  the  lesser  of  (i)  the Put Amount set forth in the Put Notice, and
(ii)  20%  of  the  aggregate  trading  volume  of  the  Common Stock during the
applicable Pricing Period times (x) 95% of the average of (4) lowest closing bid
prices  of  the  Company's Common Stock during the specified Pricing Period, but
only if said Shares bear no restrictive legend, are not subject to stop transfer
instructions  and  are  being held in escrow, pursuant to Section 2(h), prior to
the  applicable  Closing  Date.  No put shall exceed $100,000.

e. Limitation on Investor's Obligation to Purchase Shares. In no event shall the
Investor  purchase  Shares other than pursuant to this Agreement until such date
as  this  Agreement  is  terminated.

f.  Conditions  to  Investor's  Obligation  to  Purchase Shares. Notwithstanding
anything to the contrary in this Agreement, the Company shall not be entitled to
deliver  a  Put  Notice  and the Investor shall not be obligated to purchase any
Shares  at  a  Closing (as defined in Section 2(h)) unless each of the following
conditions  are  satisfied:
(i) a Registration Statement shall have been declared effective and shall remain
effective  and  available  for  the resale of all the Registrable Securities (as
defined  in  the  Registration  Rights Agreement) at all times until the Closing
with  respect  to  the  subject  Put  Notice;
(ii) at all times during the period beginning on the related Put Notice Date and
ending  on  and  including the related Closing Date, the Common Stock shall have
been  listed  on  the  Principal  Market  and shall not have been suspended from
trading  thereon  for  a  period of five (5) consecutive Trading Days during the
Open  Period  and  the  Company  shall  not have been notified of any pending or
threatened  proceeding  or  other  action to delist or suspend the Common Stock;
(iii)  the  Company  has  complied  with its obligations and is otherwise not in
breach  of  a  material  provision  of, or in default under, this Agreement, the
Registration  Rights  Agreement  or  any  other agreement executed in connection
herewith  which has not been corrected prior to delivery of the Put Notice Date;
(iv)  no  injunction  shall  have  been  issued  and  remain in force, or action
commenced  by  a  governmental authority which has not been stayed or abandoned,
prohibiting  the  purchase  or  the  issuance  of  the  Securities;  and
(v)  the  issuance  of  the Securities will not violate the shareholder approval
requirements  of  the  Principal  Market.
If  any of the events described in clauses (i) through (v) above occurs during a
Pricing  Period,  then the Investor shall have no obligation to purchase the Put
Amount  of  Common  Stock  set  forth  in  the  applicable  Put  Notice.

g. For purposes of this Agreement, a "MAJOR TRANSACTION" shall be deemed to have
occurred upon the closing of any of the following events: (i) the consolidation,
merger  or other business combination of the Company with or into another person
(other  than  pursuant to a migratory merger effected solely for the purposes of
changing  the  jurisdiction  of  incorporation  of  the  Company or other than a
transaction  in which the Company is the surviving corporation) (ii) the sale or
transfer  of  all  or  substantially  all  of the Company's assets; or (iii) the
consummation  of  a purchase, tender or exchange offer made to, and accepted by,
the holders of more than 30% of the economic interest in, or the combined voting
power  of  all  classes  of  voting  stock  of,  the  Company.

h.  Mechanics  of Purchase of Shares by Investor. Subject to the satisfaction of
the  conditions set forth in Sections 2(f), 7 and 8, the closing of the purchase
by  the  Investor of Shares (a "CLOSING") shall occur on the date which is Seven
(7)  Trading  Days following the applicable Put Notice Date or when deemed close
by  the  investor.  (each  a "CLOSING DATE") Prior to each Closing Date, (i) the
Company  shall  deliver to the Investor, certificates representing the Shares to
be  issued  to  the  Investor  on  such  date  and registered in the name of the
Investor  and  (ii) the Investor shall deliver to the Company the Purchase Price
to be paid for such Shares (after Investor has received such Shares), determined
as  set  forth  in  Section  2(b)  and  (d), by wire transfer. The Company shall
instruct  the  transfer agent to send the certificate via overnight delivery and
supply  the tracking number and amount of shares to Investor via E-mail. In lieu
of  delivering  physical  certificates  representing the Securities and provided
that  the Company's transfer agent then is participating in The Depository Trust
Company  ("DTC")  Fast  Automated  Securities  Transfer  ("FAST")  program, upon
request  of  the  Investor,  the  Company  shall use its commercially reasonable
efforts to cause its transfer agent to electronically transmit the Securities by
crediting  the  account of the Investor's prime broker (which shall be specified
by  the  Investor  a reasonably sufficient time in advance) with DTC through its
Deposit  Withdrawal  Agent  Commission  ("DWAC")  system.
The  Company  understands  that a delay in the issuance of Securities beyond the
Closing  Date could result in economic loss to the Investor. After the Effective
Date,  as  compensation to the Investor for such loss, the Company agrees to pay
late  payments  to  the  Investor  for  late issuance of Securities (delivery of
Securities  after  the applicable Closing Date) in accordance with the following
schedule  (where  "No. of Days Late" is defined as the number of days beyond the
Closing  Date):

Late  Payment  For  Each
     No.  of  Days  Late               $10,000  of  Common  Stock

     1                         $10
     2                         $20
     3                         $30
     4                         $40
     5                         $50
     6                         $60
     7                         $70
     8                         $80
     9                         $90
    10                         $100
   Over  10                    $100  +  $100  for  each
                               Business  Day  late  beyond  10

The  Company  shall  pay any payments incurred under this Section in immediately
available  funds upon demand. Nothing herein shall limit the Investor's right to
pursue  actual  damages  for  the  Company's  failure  to  issue and deliver the
Securities  to  the Investor, except to the extent that such late payments shall
constitute  payment  for  and  offset  any  such  actual  damages alleged by the
Investor,  and  any  Buy  In  Adjustment  Amount.

i.  Reserved.

j.  Overall  Limit  on Common Stock Issuable. Notwithstanding anything contained
herein  to the contrary, if during the Open Period the Company becomes listed on
an  exchange that limits the number of shares of Common Stock that may be issued
without  shareholder approval, then the number of Shares issuable by the Company
and  purchasable  by the Investor, including the shares of Common Stock issuable
to  the Investors pursuant to Section 11(b), shall not exceed that number of the
shares  of  Common  Stock  that  may  be  issuable without shareholder approval,
subject  to  appropriate  adjustment  for  stock  splits,  stock  dividends,
combinations  or  other similar recapitalization affecting the Common Stock (the
"MAXIMUM  COMMON  STOCK ISSUANCE"), unless the issuance of Shares, including any
Common  Stock to be issued to the Investors pursuant to Section 11(b), in excess
of  the  Maximum  Common Stock Issuance shall first be approved by the Company's
shareholders  in  accordance with applicable law and the By-laws and Articles of
Incorporation  of  the Company, if such issuance of shares of Common Stock could
cause a delisting on the Principal Market. The parties understand and agree that
the  Company's  failure  to seek or obtain such shareholder approval shall in no
way adversely affect the validity and due authorization of the issuance and sale
of  Securities  or  the  Investor's  obligation in accordance with the terms and
conditions  hereof  to  purchase  a  number of Shares in the aggregate up to the
Maximum  Common  Stock Issuance limitation, and that such approval pertains only
to the applicability of the Maximum Common Stock Issuance limitation provided in
this  Section  2(j).

3.  INVESTOR'S  REPRESENTATIONS,  WARRANTIES  AND  COVENANTS.
The  Investor  represents  and  warrants  to  the  Company, and covenants, that:

a.  Sophisticated  Investor.  The  Investor  has,  by reason of its business and
financial experience, such knowledge, sophistication and experience in financial
and  business matters and in making investment decisions of this type that it is
capable  of  (A)  evaluating  the  merits  and  risks  of  an  investment in the
Securities  and  making  an informed investment decision, (B) protecting its own
interest  and (C) bearing the economic risk of such investment for an indefinite
period  of  time.

b.  Authorization;  Enforcement.  This  Agreement  has  been  duly  and  validly
authorized,  executed and delivered on behalf of the Investor and is a valid and
binding agreement of the Investor enforceable against the Investor in accordance
with its terms, subject as to enforceability to general principles of equity and
to  applicable  bankruptcy,  insolvency, reorganization, moratorium, liquidation
and  other  similar laws relating to, or affecting generally, the enforcement of
applicable  creditors'  rights  and  remedies.

c.  Section  9 of the 1934 Act. During the Open Period, the Investor will comply
with  the  provisions  of  Section  9 of the 1934 Act, and the rules promulgated
thereunder,  with  respect  to  transactions  involving  the  Common  Stock. The
Investor  agrees  not  to  short,  either  directly  or  indirectly  through its
affiliates,  principals  or advisors, the Company's common stock during the term
of this Agreement, however, it shall not be deemed a short if the Investor sells
common  stock  after  the  delivery  of  the  Put  Notice  from  the  Company.

d.  Accredited  Investor.  Investor  is an "Accredited Investor" as that term is

defined  in  Rule  501(a)(3)  of  Regulation  D  of  the  1933  Act.
e.  No  Conflicts.  The  execution,  delivery and performance of the Transaction
Documents  by  the  Investor  and  the  consummation  by  the  Investor  of  the
transactions  contemplated  hereby and thereby will not result in a violation of
the  Articles of Incorporation, the By-laws or other organizational documents of
the  Investor.

f.  The  Investor has had an opportunity to discuss the business, management and
financial  affairs of the Company with the Company's management and the Investor
has  received  all documents it has requested from the Company as of the date of
this  Agreement;

g.  INVESTMENT  PURPOSES.  The Investor is purchasing the Securities for its own
account  for  investment  purposes  and not with a view towards distribution and
agrees  to  resell  or  otherwise dispose of the Securities solely in accordance
with  the  registration  provisions of the 1933 Act (or pursuant to an exemption
from  such  registration  provisions).

h.  NO REGISTRATION AS A DEALER. The Investor is not and will not be required to
be  registered  as  a  "dealer"  under  the  1934 Act, either as a result of its
execution  and performance of its obligations under this Agreement or otherwise.

i.  THE  INVESTOR  IS A LIMITED PARTNERSHIP, duly organized, validly existing in
good  standing  in  the  State  of  Delaware.

j.  THE  INVESTOR  UNDERSTANDS  IT  IS  LIABLE  FOR  IT  OWN  TAX  LIABILITIES.

k.  THE  INVESTOR  WILL  COMPLY WITH REGULATION M UNDER THE 1934, IF APPLICABLE.

4.  REPRESENTATIONS  AND  WARRANTIES  OF  THE  COMPANY.
Except as set forth in the Schedules attached hereto, the Company represents and
warrants  to  the  Investor  that:

a.  Organization  and Qualification. The Company is a corporation duly organized
and  validly  existing  in good standing under the laws of its jurisdiction, and
has the requisite corporate power and authorization to own its properties and to
carry  on  its  business  as  now  being  conducted. Each of the Company and its
Subsidiaries is duly qualified as a foreign corporation to do business and is in
good  standing  in  every jurisdiction in which its ownership of property or the
nature  of  the  business  conducted  by  it makes such qualification necessary,
except  to the extent that the failure to be so qualified or be in good standing
would  not  have a Material Adverse Effect. As used in this Agreement, "MATERIAL
ADVERSE  EFFECT"  means any material adverse effect on the business, properties,
assets,  operations,  results of operations, financial condition or prospects of
the  Company  and  its  Subsidiaries,  if  any,  taken  as  a  whole,  or on the
transactions  contemplated  hereby  or  by  the agreements and instruments to be
entered  into  in  connection  herewith,  or  on the authority or ability of the
Company  to  perform its obligations under the Transaction Documents (as defined
in  Section  1  and  4(b)below).  The  Company  has  no  subsidiaries.

b.  Authorization;  Enforcement;  Compliance  with  Other  Instruments.  (i) The
Company  has  the  requisite  corporate  power  and  authority to enter into and
perform this Agreement, the Registration Rights Agreement, and each of the other
agreements  entered  into  by  the  parties  hereto  in  connection  with  the
transactions  contemplated  by  this  Agreement  (collectively, the "TRANSACTION
DOCUMENTS"), and to issue the Securities in accordance with the terms hereof and
thereof,  (ii)  the  execution  and delivery of the Transaction Documents by the
Company  and  the consummation by it of the transactions contemplated hereby and
thereby,  including  without  limitation  the  reservation  for issuance and the
issuance  of  the  Securities  pursuant  to  this  Agreement, have been duly and
validly authorized by the Company's Board of Directors and no further consent or
authorization  is  required  by  the  Company,  its  Board  of Directors, or its
shareholders,  (iii)  the  Transaction  Documents  have  been  duly  and validly
executed  and  delivered  by  the  Company,  and  (iv) the Transaction Documents
constitute  the valid and binding obligations of the Company enforceable against
the Company in accordance with their terms, except as such enforceability may be
limited  by  general  principles of equity or applicable bankruptcy, insolvency,
reorganization,  moratorium,  liquidation  or  similar  laws  relating  to,  or
affecting  generally,  the  enforcement  of  creditors'  rights  and  remedies.

c.  Capitalization.  As  of the date hereof, the authorized capital stock of the
Company  consists  of  (i)  100,000,000 shares of Common Stock, no par value per
share,  of  which  as  of  the  date  hereof,  12,684,202  shares are issued and
outstanding;  (as of March 1, 2004) shares of Common Stock are issuable upon the
exercise  of  options,  warrants  and conversion rights. All of such outstanding
shares  have  been,  or upon issuance will be, validly issued and are fully paid
and nonassessable. Except as disclosed in Schedule 4(c) which is attached hereto
and made a part hereof, (i) no shares of the Company's capital stock are subject
to  preemptive  rights  or any other similar rights or any liens or encumbrances
suffered  or  permitted  by  the  Company,  (ii)  there  are no outstanding debt
securities,  (iii)  there  are  no outstanding shares of capital stock, options,
warrants,  scrip,  rights to subscribe to, calls or commitments of any character
whatsoever  relating to, or securities or rights convertible into, any shares of
capital  stock  of  the  Company  or  any  of  its  Subsidiaries,  or contracts,
commitments,  understandings  or arrangements by which the Company or any of its
Subsidiaries  is or may become bound to issue additional shares of capital stock
of the Company or any of its Subsidiaries or options, warrants, scrip, rights to
subscribe  to,  calls or commitments of any character whatsoever relating to, or
securities  or  rights  convertible  into,  any  shares  of capital stock of the
Company or any of its Subsidiaries, (iv) there are no agreements or arrangements
under  which the Company or any of its Subsidiaries is obligated to register the
sale  of  any  of  their  securities under the 1933 Act (except the Registration
Rights Agreement), (v) there are no outstanding securities of the Company or any
of  its  Subsidiaries  which  contain  any redemption or similar provisions, and
there are no contracts, commitments, understandings or arrangements by which the
Company  or  any of its Subsidiaries is or may become bound to redeem a security
of  the  Company  or  any  of  its Subsidiaries, (vi) there are no securities or
instruments  containing  anti-dilution  or  similar  provisions  that  will  be
triggered  by  the  issuance  of  the Securities as described in this Agreement,
(vii) the Company does not have any stock appreciation rights or "phantom stock"
plans  or  agreements  or  any  similar plan or agreement and (viii) there is no
dispute  as  to  the  class  of  any  shares of the Company's capital stock. The
Company  has  furnished  to the Investor, or the Investor has had access through
EDGAR to, true and correct copies of the Company's Articles of Incorporation, as
in  effect  on  the  date  hereof  (the  "ARTICLES  OF  INCORPORATION"), and the
Company's  By-laws,  as  in  effect on the date hereof (the "BY-LAWS '), and the
terms of all securities convertible into or exercisable for Common Stock and the
material  rights  of  the  holders  thereof  in  respect  thereto.

d.  Issuance  of Shares. A sufficient number of Shares issuable pursuant to this
Agreement  has  been  duly  authorized  and  reserved  for  issuance (subject to
adjustment  pursuant  to the Company's covenant set forth in Section 5(f) below)
pursuant to this Agreement. Upon issuance in accordance with this Agreement, the
Securities  will  be  validly issued, fully paid and nonassessable and free from
all taxes, and liens with respect to the issue thereof. In the event the Company
cannot  register  a  sufficient number of Shares, due to the remaining number of
authorized  shares  of Common Stock being insufficient, the Company will use its
best  efforts  to  register  the  maximum  number  of shares it can based on the
remaining balance of authorized shares and will use its best efforts to increase
the  number  of  its  authorized  shares  as  soon  as  reasonably  practicable.

e.  No  Conflicts.  The  execution,  delivery and performance of the Transaction
Documents by the Company and the consummation by the Company of the transactions
contemplated  hereby  and  thereby  will  not  (i)  result in a violation of the
Articles  of  Incorporation,  any  Certificate  of Designations, Preferences and
Rights  of  any  outstanding  series  of  preferred  stock of the Company or the
By-laws  or  (ii)  conflict  with, or constitute a material default (or an event
which  with  notice  or  lapse  of time or both would become a material default)
under,  or  give to others any rights of termination, amendment, acceleration or
cancellation  of,  any  material  agreement,  contract,  indenture  mortgage,
indebtedness  or instrument to which the Company or any of its Subsidiaries is a
party, or result in a violation of any law, rule, regulation, order, judgment or
decree  (including  United  States  federal  and  state  securities  laws  and
regulations  and  the rules and regulations of the Principal Market or principal
securities  exchange  or  trading  market on which the Common Stock is traded or
listed)  applicable  to  the  Company or any of its Subsidiaries or by which any
property  or  asset  of  the  Company  or  any  of  its Subsidiaries is bound or
affected.  Except  as  disclosed  in  Schedule 4(e), neither the Company nor its
Subsidiaries  is  in violation of any term of, or in default under, the Articles
of Incorporation, any Certificate of Designations, Preferences and Rights of any
outstanding  series  of  preferred  stock of the Company or the By-laws or their
organizational  charter  or  by-laws,  respectively, or any contract, agreement,
mortgage,  indebtedness, indenture, instrument, judgment, decree or order or any
statute,  rule  or  regulation  applicable  to  the Company or its Subsidiaries,
except  for  possible  conflicts,  defaults,  terminations,  amendments,
accelerations,  cancellations  and  violations that would not individually or in
the aggregate have a Material Adverse Effect. The business of the Company is not
being  conducted,  and shall not be conducted, in violation of any law, statute,
ordinance,  rule,  order  or regulation of any governmental authority or agency,
regulatory  or  self-regulatory agency, or court, except for possible violations
the sanctions for which either individually or in the aggregate would not have a
Material  Adverse  Effect. Except as specifically contemplated by this Agreement
and  as  required  under the 1933 Act, the Company is not required to obtain any
consent,  authorization,  permit or order of, or make any filing or registration
(except  the  filing of a registration statement and filings to comply with Blue
Sky  requirements) with, any court, governmental authority or agency, regulatory
or  self-regulatory  agency  or  other  third  party in order for it to execute,
deliver  or  perform  any  of  its  obligations  under,  or contemplated by, the
Transaction  Documents  in  accordance  with  the  terms  hereof or thereof. All
consents,  authorizations,  permits, orders, filings and registrations which the
Company  is  required  to  obtain  pursuant  to the preceding sentence have been
obtained  or  effected  on or prior to the date hereof and are in full force and
effect  as of the date hereof. Except as disclosed in Schedule 4(e), the Company
and  its Subsidiaries are unaware of any facts or circumstances which might give
rise  to any of the foregoing. The Company is not, and will not be, in violation
of  the  listing  requirements  of the Principal Market as in effect on the date
hereof  and  on  each  of  the Closing Dates and is not aware of any facts which
would  reasonably  lead to delisting of the Common Stock by the Principal Market
in  the  foreseeable  future.

f. SEC Documents; Financial Statements. Since at least January 1999, the Company
has filed all reports, schedules, forms, statements and other documents required
to  be  filed  by  it with the SEC pursuant to the reporting requirements of the
1934  Act  (all of the foregoing filed prior to the date hereof and all exhibits
included  therein  and  financial statements and schedules thereto and documents
incorporated  by  reference  therein  being  hereinafter referred to as the "SEC
DOCUMENTS").  The  Company has delivered to the Investor or its representatives,
or  they  have  had access through EDGAR to, true and complete copies of the SEC
Documents.  As  of  their  respective  dates,  the SEC Documents complied in all
material  respects  with  the  requirements  of  the  1934 Act and the rules and
regulations  of  the SEC promulgated thereunder applicable to the SEC Documents,
and  none  of  the  SEC  Documents,  at  the  time they were filed with the SEC,
contained any untrue statement of a material fact or omitted to state a material
fact  required to be stated therein or necessary to make the statements therein,
in  light of the circumstances under which they were made, not misleading. As of
their  respective dates, the financial statements of the Company included in the
SEC  Documents  complied  as  to  form  in all material respects with applicable
accounting  requirements and the published rules and regulations of the SEC with
respect thereto. Such financial statements have been prepared in accordance with
generally  accepted  accounting  principles,  consistently  applied,  during the
periods  involved  (except  (i)  as may be otherwise indicated in such financial
statements  or  the  notes  thereto,  or  (ii)  in the case of unaudited interim
statements,  to  the  extent  they  may exclude footnotes or may be condensed or
summary  statements)  and  fairly present in all material respects the financial
position  of  the  Company  as  of  the  dates  thereof  and  the results of its
operations  and  cash  flows for the periods then ended (subject, in the case of
unaudited  statements,  to  normal year-end audit adjustments). No other written
information provided by or on behalf of the Company to the Investor which is not
included  in  the  SEC  Documents,  including,  without  limitation, information
referred  to in Section 4(d) of this Agreement, contains any untrue statement of
a  material  fact  or  omits  to  state  any material fact necessary to make the
statements  therein,  in  the  light of the circumstance under which they are or
were  made,  not  misleading. Neither the Company nor any of its Subsidiaries or
any of their officers, directors, employees or agents have provided the Investor
with  any material, nonpublic information which was not publicly disclosed prior
to  the  date  hereof  and  any  material, nonpublic information provided to the
Investor by the Company or its Subsidiaries or any of their officers, directors,
employees or agents prior to any Closing Date shall be publicly disclosed by the
Company  prior  to  such  Closing  Date.

g. Absence of Certain Changes. Except as disclosed in Schedule 4(g), the Company
does  not  intend  to change the business operations of the Company. The Company
has  not  taken  any  steps, and does not currently expect to take any steps, to
seek  protection  pursuant  to  any  bankruptcy  law nor does the Company or its
Subsidiaries  have  any knowledge or reason to believe that its creditors intend
to  initiate  involuntary  bankruptcy  proceedings.

h.  Absence  of  Litigation.  Except  as set forth in Schedule 4(h), there is no
action,  suit,  proceeding,  inquiry  or  investigation  before or by any court,
public  board,  government  agency, self-regulatory organization or body pending
or,  to  the  knowledge  of  the  executive  officers  of  Company or any of its
Subsidiaries,  threatened  against or affecting the Company, the Common Stock or
any  of  the  Company's  Subsidiaries  or  any of the Company's or the Company's
Subsidiaries'  officers  or  directors  in their capacities as such, in which an
adverse  decision  could  have  a  Material  Adverse  Effect.

i.  Acknowledgment  Regarding  Investor's  Purchase  of  Shares.  The  Company
acknowledges  and  agrees  that the Investor is acting solely in the capacity of
arm's  length  purchaser  with  respect  to  the  Transaction  Documents and the
transactions  contemplated  hereby and thereby. The Company further acknowledges
that  the  Investor  is  not  acting  as a financial advisor or fiduciary of the
Company  (or  in any similar capacity) with respect to the Transaction Documents
and the transactions contemplated hereby and thereby and any advice given by the
Investor  or  any of its respective representatives or agents in connection with
the  Transaction  Documents and the transactions contemplated hereby and thereby
is  merely  incidental to the Investor's purchase of the Securities. The Company
further represents to the Investor that the Company's decision to enter into the
Transaction Documents has been based solely on the independent evaluation by the
Company  and  its  representatives.

j. No Undisclosed Events, Liabilities, Developments or Circumstances. Since June
30,  2003,  no  event,  liability,  development  or circumstance has occurred or
exists,  or to the Company's knowledge is contemplated to occur, with respect to
the  Company  or  its  Subsidiaries  or  their  respective business, properties,
assets,  prospects, operations or financial condition, that would be required to
be  disclosed  by the Company under applicable securities laws on a registration
statement  filed with the SEC relating to an issuance and sale by the Company of
its  Common  Stock  and  which  has  not  been  publicly  announced.
k.  Employee  Relations.  Neither  the  Company  nor  any of its Subsidiaries is
involved  in any union labor dispute nor, to the knowledge of the Company or any
of its Subsidiaries, is any such dispute threatened. Neither the Company nor any
of  its  Subsidiaries  is  a party to a collective bargaining agreement, and the
Company  and  its  Subsidiaries  believe that relations with their employees are
good.  No  executive  officer  (as  defined  in Rule 501(f) of the 1933 Act) has
notified  the Company that such officer intends to leave the Company's employ or
otherwise  terminate  such  officer's  employment  with  the  Company.

l. Intellectual Property Rights. The Company and its Subsidiaries own or possess
adequate  rights  or licenses to use all trademarks, trade names, service marks,
service  mark  registrations, service names, patents, patent rights, copyrights,
inventions,  licenses, approvals, governmental authorizations, trade secrets and
rights necessary to conduct their respective businesses as now conducted. Except
as  set  forth  on Schedule 4(l), none of the Company's trademarks, trade names,
service  marks,  service  mark  registrations,  service  names,  patents, patent
rights,  copyrights, inventions, licenses, approvals, government authorizations,
trade  secrets  or  other  intellectual property rights necessary to conduct its
business  as  now  or as proposed to be conducted have expired or terminated, or
are  expected  to  expire  or  terminate  within two years from the date of this
Agreement.  The  Company  and  its Subsidiaries do not have any knowledge of any
infringement by the Company or its Subsidiaries of trademark, trade name rights,
patents, patent rights, copyrights, inventions, licenses, service names, service
marks,  service  mark  registrations,  trade  secret  or other similar rights of
others,  or  of  any  such  development of similar or identical trade secrets or
technical information by others and, except as set forth on Schedule 4(l), there
is  no  claim,  action  or  proceeding  being made or brought against, or to the
Company's  knowledge,  being threatened against, the Company or its Subsidiaries
regarding  trademark,  trade name, patents, patent rights, invention, copyright,
license,  service names, service marks, service mark registrations, trade secret
or  other  infringement; and the Company and its Subsidiaries are unaware of any
facts  or  circumstances  which  might  give  rise  to any of the foregoing. The
Company  and its Subsidiaries have taken reasonable security measures to protect
the  secrecy, confidentiality and value of all of their intellectual properties.

m.  Environmental  Laws.  The  Company  (i)  is  in  compliance with any and all
applicable  foreign,  federal,  state and local laws and regulations relating to
the protection of human health and safety, the environment or hazardous or toxic
substances  or  wastes,  pollutants or contaminants ("ENVIRONMENTAL LAWS"), (ii)
have  received  all  permits, licenses or other approvals required of them under
applicable  Environmental  Laws to conduct their respective businesses and (iii)
are  in  compliance with all terms and conditions of any such permit, license or
approval  where,  in each of the three foregoing cases, the failure to so comply
would  have,  individually  or  in  the  aggregate,  a  Material Adverse Effect.

n.  Title.  The  Company  has good and marketable title to all personal property
owned  by  them  which  is  material  to  the  business  of  the Company and its
Subsidiaries, in each case free and clear of all liens, encumbrances and defects
except  such  as  are  described  in  Schedule 4(n) or such as do not materially
affect  the  value  of  such property and do not interfere with the use made and
proposed  to  be  made  of  such  property  by the Company Any real property and
facilities  held  under  lease  by  the  Company  are  held  by  it under valid,
subsisting  and  enforceable leases with such exceptions as are not material and
do  not interfere with the use made and proposed to be made of such property and
buildings  by  the  Company  and  its  Subsidiaries.

o.  Insurance.  The Company and each of its Subsidiaries are insured by insurers
of recognized financial responsibility against such losses and risks and in such
amounts  as  management  of  the  Company  reasonably believes to be prudent and
customary  in  the  businesses  in  which  the  Company and its Subsidiaries are
engaged.  Neither  the  Company  nor  any  such  Subsidiary has been refused any
insurance  coverage  sought  or applied for and neither the Company nor any such
Subsidiary  has  any  reason  to  believe  that it will not be able to renew its
existing  insurance  coverage  as  and  when  such coverage expires or to obtain
similar  coverage  from  similar  insurers  as  may be necessary to continue its
business  at  a  cost  that  would  not  have  a  Material  Adverse  Effect.

p.  Regulatory  Permits. The Company and its Subsidiaries have in full force and
effect  all  certificates,  approvals,  authorizations  and  permits  from  the
appropriate  federal,  state,  local  or  foreign  regulatory  authorities  and
comparable foreign regulatory agencies, necessary to own, lease or operate their
respective  properties  and  assets and conduct their respective businesses, and
neither  the  Company  nor  any  such  Subsidiary  has  received  any  notice of
proceedings  relating to the revocation or modification of any such certificate,
approval,  authorization  or  permit,  except  for such certificates, approvals,
authorizations  or  permits  which  if  not  obtained,  or  such  revocations or
modifications  which,  would  not  have  a  Material  Adverse  Effect.

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

r.  No  Materially  Adverse  Contracts,  Etc. Neither the Company nor any of its
Subsidiaries is subject to any charter, corporate or other legal restriction, or
any  judgment,  decree,  order,  rule or regulation which in the judgment of the
Company's  officers  has or is expected in the future to have a Material Adverse
Effect.  Neither  the  Company  nor  any  of  its Subsidiaries is a party to any
contract  or agreement which in the judgment of the Company's officers has or is
expected  to  have  a  Material  Adverse  Effect.

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

t.  Certain  Transactions.  Except  as set forth on Schedule 4(t) and in the SEC
Documents  filed at least ten days prior to the date hereof and except for arm's
length transactions pursuant to which the Company makes payments in the ordinary
course  of  business  upon terms no less favorable than the Company could obtain
from third parties and except for transactions that do not exceed $10,000 in one
year, and other than the grant of stock options disclosed on Schedule 4(c), none
of  the officers, directors, or employees of the Company is presently a party to
any transaction with the Company (other than for services as employees, officers
and directors), including any contract, agreement or other arrangement providing
for  the  furnishing  of  services  to  or  by,  providing for rental of real or
personal  property  to  or  from, or otherwise requiring payments to or from any
officer,  director  or  such  employee  or, to the knowledge of the Company, any
corporation,  partnership, trust or other entity in which any officer, director,
or  any  such  employee  has  a substantial interest or is an officer, director,
trustee  or  partner.

u.  Dilutive Effect. The Company understands and acknowledges that the number of
shares  of  Common Stock issuable upon purchases pursuant to this Agreement will
increase in certain circumstances including, but not necessarily limited to, the
circumstance  wherein  the trading price of the Common Stock declines during the
period  between the Effective Date and the end of the Open Period. The Company's
executive officers and directors have studied and fully understand the nature of
the  transactions  contemplated by this Agreement and recognize that they have a
potential  dilutive effect. The board of directors of the Company has concluded,
in  its good faith business judgment that such issuance is in the best interests
of  the  Company.  The  Company  specifically acknowledges that, subject to such
limitations  as  are  expressly  set  forth  in  the  Transaction Documents, its
obligation  to  issue  shares  of  Common  Stock upon purchases pursuant to this
Agreement  is  absolute and unconditional regardless of the dilutive effect that
such  issuance  may have on the ownership interests of other shareholders of the
Company.

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

w.  NO  FINDERS  OR  FINANCIAL  ADVISORY FEES will be paid by the Company to the
Investor  with  respect  to  the  transactions  contemplated  by this Agreement.

5.  COVENANTS  OF  THE  COMPANY

a.  Best  Efforts. The Company shall use its best efforts timely to satisfy each
of  the  conditions  to  be  satisfied  by  it  as provided in Section 7 of this
Agreement.

b.  Blue Sky. The Company shall, at its sole cost and expense, on or before each
of the Closing Dates, take such action as the Company shall reasonably determine
is  necessary  to  qualify  the  Securities  for,  or  obtain  exemption for the
Securities  for,  sale  to the Investor at each of the Closings pursuant to this
Agreement  under  applicable securities or "Blue Sky" laws of such states of the
United  States,  as reasonably specified by Investor, and shall provide evidence
of any such action so taken to the Investor on or prior to the Closing Date. The
Company  shall,  at  its  sole  cost  and  expense, make all filings and reports
relating  to  the offer and sale of the Securities required under the applicable
securities or "Blue Sky" laws of such states of the United States following each
of  the  Closing  Dates.

c.  Reporting  Status. Until the earlier to occur of (i) the first date which is
after  the  date this Agreement is terminated pursuant to Section 9 and on which
the  Holders  (as that term is defined in the Registration Rights Agreement) may
sell  all  of  the  Securities  without  restriction  pursuant  to  Rule  144(k)
promulgated  under  the  1933  Act  (or successor thereto), and (ii) the date on
which  (A) the Holders shall have sold all the Securities and (B) this Agreement
has  been  terminated  pursuant  to  Section  9 (the "REGISTRATION PERIOD"), the
Company shall file all reports required to be filed with the SEC pursuant to the
1934  Act, and the Company shall not terminate its status as a reporting company
under  the  1934  Act.

d.  Use  of  Proceeds.  The  Company  will use the proceeds from the sale of the
Shares  (excluding  amounts  paid  by  the  Company for fees as set forth in the
Transaction  Documents)  for  general  corporate and working capital purposes or
other  appropriate  uses  as  approved  by  the  Company's  Board  of Directors.

e.  Financial  Information. The Company agrees to make available to the Investor
via  EDGAR  or  other  electronic means the following to the Investor during the
Registration  Period:  (i) within five (5) Trading Days after the filing thereof
with the SEC, a copy of its Annual Reports on Form 10-KSB, its Quarterly Reports
on  Form 10-QSB, any Current Reports on Form 8-K and any Registration Statements
or  amendments  filed  pursuant  to  the  1933  Act; (ii) on the same day as the
release thereof, facsimile copies of all press releases issued by the Company or
any  of its Subsidiaries, (iii) copies of any notices and other information made
available  or  given  to  the  shareholders  of  the  Company  generally,
contemporaneously  with  the  making  available  or  giving  thereof  to  the
shareholders  and  (iv)  within  two  (2)  calendar  days  of filing or delivery
thereof, copies of all documents filed with, and all correspondence sent to, the
Principal Market, any securities exchange or market, or the National Association
of  Securities  Dealers,  Inc.,  unless  such  information is material nonpublic
information.

f.  Reservation  of Shares. Subject to the following sentence, the Company shall
take  all action necessary to at all times have authorized, and reserved for the
purpose  of  issuance,  a sufficient number of shares of Common Stock to provide
for  the  issuance  of  the  Securities hereunder. In the event that the Company
determines  that  it  does  not have a sufficient number of authorized shares of
Common  Stock  to  reserve  and keep available for issuance as described in this
Section  5(f),  the Company shall use its best efforts to increase the number of
authorized  shares  of  Common  Stock  by  seeking  shareholder approval for the
authorization  of  such  additional  shares.

g. Listing. The Company shall promptly secure and maintain the listing of all of
the  Registrable  Securities  (as  defined in the Registration Rights Agreement)
upon  the  Principal  Market  and  each  other  national securities exchange and
automated  quotation  system, if any, upon which shares of Common Stock are then
listed (subject to official notice of issuance) and shall maintain, such listing
of  all Registrable Securities from time to time issuable under the terms of the
Transaction  Documents.  The  Company  shall  maintain  the  Common  Stock's
authorization for quotation on the Principal Market. Neither the Company nor any
of  its Subsidiaries shall take any action which would be reasonably expected to
result  in  the  delisting  or  suspension  of the Common Stock on the Principal
Market  (excluding  suspensions  of not more than one trading day resulting from
business  announcements  by  the Company). The Company shall promptly provide to
the  Investor  copies  of  any  notices  it  receives  from the Principal Market
regarding  the  continued  eligibility  of  the Common Stock for listing on such
automated  quotation  system  or  securities exchange. The Company shall pay all
fees  and  expenses  in  connection  with  satisfying its obligations under this
Section  5(g).

h.  Reserved.

i.  Filing  of  Form  8-K. On or before the date which is three (3) Trading Days
after  the  Execution  Date, the Company shall file a Current Report on Form 8-K
with  the  SEC  describing  the  terms  of  the  transaction contemplated by the
Transaction  Documents  in  the form required by the 1934 Act, if such filing is
required.

j.  Corporate  Existence. The Company shall use its best efforts to preserve and
continue  the  corporate  existence  of  the  Company.

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

6.  COVER.  If  the  number  of  Shares  represented  by  any Put Notices become
restricted  or  are  no  longer  freely  trading  for  any reason, and after the
applicable  Closing  Date, the Investor purchases, in an open market transaction
or  otherwise,  the  Company's  Common Stock (the "Covering Shares") in order to
make  delivery  in  satisfaction  of a sale of Common Stock by the Investor (the
"Sold  Shares"),  which  delivery  such  Investor  anticipated to make using the
Shares  represented by the Put Notice (a "Buy-In"), the Company shall pay to the
Investor the Buy-In Adjustment Amount (as defined below). The "Buy-In Adjustment
Amount"  is  the amount equal to the excess, if any, of (a) the Investor's total
purchase price (including brokerage commissions, if any) for the Covering Shares
over  (b) the net proceeds (after brokerage commissions, if any) received by the
Investor  from  the  sale  of  the Sold Shares. The Company shall pay the Buy-In
Adjustment  Amount  to  the  Investor in immediately available funds immediately
upon demand by the Investor. By way of illustration and not in limitation of the
foregoing,  if the Investor purchases Common Stock having a total purchase price
(including  brokerage  commissions) of $11,000 to cover a Buy-In with respect to
the  Common  Stock  it  sold  for net proceeds of $10,000, the Buy-In Adjustment
Amount which the Company will be required to pay to the Investor will be $1,000

7.  CONDITIONS  OF  THE  COMPANY'S  OBLIGATION  TO  SELL.
The  obligation hereunder of the Company to issue and sell the Securities to the
Investor is further subject to the satisfaction, at or before each Closing Date,
of  each  of  the following conditions set forth below. These conditions are for
the  Company's  sole benefit and may be waived by the Company at any time in its
sole  discretion.

a.  The Investor shall have executed each of this Agreement and the Registration
Rights  Agreement  and  delivered  the  same  to  the  Company.

b.  The Investor shall have delivered to the Investor the Purchase Price for the
Securities  being  purchased  by  the  Investor at the Closing (after receipt of
confirmation  of  delivery  of  such Securities) by wire transfer of immediately
available  funds  pursuant  to  the  wire instructions provided by the Investor.

c.  The representations and warranties of the Investor shall be true and correct
as of the date when made and as of the applicable Closing Date as though made at
that time (except for representations and warranties that speak as of a specific
date),  and  the  Investor shall have performed, satisfied and complied with the
covenants, agreements and conditions required by the Transaction Documents to be
performed,  satisfied  or  complied  with  by  the  Investor at or prior to such
Closing  Date.

d.  No  statute, rule, regulation, executive order, decree, ruling or injunction
shall  have  been  enacted,  entered,  promulgated  or  endorsed by any court or
governmental  authority  of  competent  jurisdiction  which  prohibits  the
consummation  of  any  of  the  transactions  contemplated  by  this  Agreement.

e.  No Valuation Event shall have occurred since the applicable Put Notice Date.

8.  FURTHER  CONDITIONS  OF  THE  INVESTOR'S  OBLIGATION  TO  PURCHASE.
The  obligation  of  the Investor hereunder to purchase Shares is subject to the
satisfaction,  on  or  before  each  Closing  Date,  of  each  of  the following
conditions  set  forth  below.

a.  The  Company  shall  have  executed  each  of  the Transaction Documents and
delivered  the  same  to  the  Investor.

b.  The  Common  Stock shall be authorized for quotation on the Principal Market
and  trading  in the Common Stock shall not have been suspended by the Principal
Market  or  the  SEC,  at  any time beginning on the date hereof and through and
including  the  respective  Closing Date (excluding suspensions of not more than
one  Trading  Day resulting from business announcements by the Company, provided
that  such  suspensions  occur prior to the Company's delivery of the Put Notice
related  to  such  Closing).

c.  The  representations and warranties of the Company shall be true and correct
as of the date when made and as of the applicable Closing Date as though made at
that  time  (except  for  (i)  representations and warranties that speak as of a
specific  date  and  (ii)  with  respect to the representations made in Sections
4(g),  (h)  and  (j) and the third sentence of Section 4(k) hereof, events which
occur  on  or  after the date of this Agreement and are disclosed in SEC filings
made  by  the Company at least ten (10) Trading Days prior to the applicable Put
Notice  Date)  and the Company shall have performed, satisfied and complied with
the  covenants,  agreements and conditions required by the Transaction Documents
to  be  performed,  satisfied  or complied with by the Company on or before such
Closing  Date.  The  Investor  may  request  an  update  as of such Closing Date
regarding  the  representation  contained  in  Section  4(c)  above.

d.  reserved

e.  The  Company  shall  have  executed  and  delivered  to  the  Investor  the
certificates  representing,  or have executed electronic book-entry transfer of,
the  Securities  (in  such  denominations  as such Investor shall request) being
purchased  by  the  Investor  at  such  Closing.

f.  The  Board  of  Directors  of  the  Company  shall  have adopted resolutions
consistent  with Section 4(b)(ii) above (the "RESOLUTIONS") and such Resolutions
shall  not  have  been  amended  or  rescinded  prior  to  such  Closing  Date.

g.  reserved

h.  No  statute, rule, regulation, executive order, decree, ruling or injunction
shall  have  been  enacted,  entered,  promulgated  or  endorsed by any court or
governmental  authority  of  competent  jurisdiction  which  prohibits  the
consummation  of  any  of  the  transactions  contemplated  by  this  Agreement.

i.  The  Registration  Statement  shall be effective on each Closing Date and no
stop  order  suspending the effectiveness of the Registration statement shall be
in  effect  or shall be pending or threatened. Furthermore, on each Closing Date
(i) neither the Company nor Investor shall have received notice that the SEC has
issued  or  intends  to  issue  a  stop  order with respect to such Registration
Statement or that the SEC otherwise has suspended or withdrawn the effectiveness
of such Registration Statement, either temporarily or permanently, or intends or
has  threatened  to  do  so  (unless  the SEC's concerns have been addressed and
Investor  is  reasonably  satisfied  that  the  SEC  no longer is considering or
intends  to  take  such  action),  and  (ii)  no  other suspension of the use or
withdrawal  of  the  effectiveness  of  such  Registration  Statement or related
prospectus  shall  exist.

j.  At  the  time  of  each  Closing,  the  Registration  Statement  (including
information  or  documents incorporated by reference therein) and any amendments
or supplements thereto shall not contain any untrue statement of a material fact
or omit to state any material fact required to be stated therein or necessary to
make  the  statements  therein  not  misleading  or  which  would require public
disclosure  or  an  update  supplement  to  the  prospectus.

k.  If  applicable,  the  shareholders  of  the  Company shall have approved the
issuance  of  any  Shares  in  excess  of  the  Maximum Common Stock Issuance in
accordance  with  Section  2(j).

l.  The  conditions  to  such  Closing set forth in Section 2(f) shall have been
satisfied  on  or  before  such  Closing  Date.

m.  The  Company  shall  have  certified to the Investor the number of shares of
Common Stock outstanding as of a date within ten (10) Trading Days prior to such
Closing  Date.

n.  The  Company  shall  have  delivered  to  such Investor such other documents
relating  to the transactions contemplated by this Agreement as such Investor or
its  counsel  may  reasonably  request  upon  reasonable  advance  notice.

o.  On or before the execution of this Agreement, the Company shall have a draft
of  the  Registration  Statement  covering  the  Securities.

9. TERMINATION. This Agreement shall terminate upon any of the following events:
(i)  when  the  Investor  has purchased an aggregate of $5,000,000 in the Common
Stock  of  the  Company  pursuant to this Agreement; provided that the Company's
representations, warranties and covenants contained in this Agreement insofar as
applicable  to the transactions consummated hereunder prior to such termination,
shall survive the termination of this Agreement for the period of any applicable
statute  of  limitations,
(ii)  on  the  date  which  is  36 (thirty-six) months after the Effective Date;
(iii)  the  trading  of  the Common Stock is suspended by the SEC, the Principal
Market  or the NASD for a period of five (5) consecutive Trading Days during the
Open  Period;
(iv)  the  Company  shall  not  have filed with the SEC the initial Registration
Statement with respect to the resale of the Registrable Securities in accordance
with  the  terms of the initial Registration Rights Agreement within One Hundred
and  twenty (120) calendar days of the date hereof or the Registration Statement
has not been declared effective within one hundred eighty (180) calendar days of
the  date  hereof;  or
(v)  The  Common  Stock  ceases to be registered under the 1934 Act or listed or
traded  on  the  Principal  Market;  or  Upon  the  occurrence  of  one  of  the
above-described  events,  the Company shall send written notice of such event to
the  Investor.

10.  INDEMNIFICATION.  In consideration of the Investor's execution and delivery
of  the  this  Agreement and the Registration Rights Agreement and acquiring the
Shares hereunder and in addition to all of the Company's other obligations under
the Transaction Documents, the Company shall defend, protect, indemnify and hold
harmless  the  Investor  and  all  of  their  shareholders, officers, directors,
employees,  counsel,  and  direct or indirect investors and any of the foregoing
person's  agents  or other representatives (including, without limitation, those
retained  in  connection  with  the transactions contemplated by this Agreement)
(collectively,  the  "INDEMNITEES") from and against any and all actions, causes
of  action,  suits,  claims,  losses,  costs,  penalties,  fees, liabilities and
damages,  and expenses in connection therewith (irrespective of whether any such
Indemnitee  is  a  party  to  the  action for which indemnification hereunder is
sought),  and  including  reasonable  attorneys'  fees  and  disbursements  (the
"INDEMNIFIED  LIABILITIES'),  incurred  by  any  Indemnitee  as  a result of, or
arising  out  of,  or  relating  to  (i)  any misrepresentation or breach of any
representation  or  warranty made by the Company in the Transaction Documents or
any  other  certificate,  instrument  or document contemplated hereby or thereby
(ii)  any  breach  of  any  covenant,  agreement  or  obligation  of the Company
contained  in  the Transaction Documents or any other certificate, instrument or
document  contemplated  hereby  or  thereby,  (iii) any cause of action, suit or
claim  brought  or made against such Indemnitee by a third party and arising out
of  or resulting from the execution, delivery, performance or enforcement of the
Transaction  Documents  or  any  other  certificate,  instrument  or  document
contemplated  hereby or thereby, (iv) any transaction financed or to be financed
in  whole  or in part, directly or indirectly, with the proceeds of the issuance
of  the Securities or (v) the status of the Investor or holder of the Securities
as  an  investor  in  the Company, except insofar as any such misrepresentation,
breach  or  any  untrue statement, alleged untrue statement, omission or alleged
omission  is  made  in  reliance upon and in conformity with written information
furnished  to  the Company by the Investor which is specifically intended by the
Investor  for  use  in  the  preparation  of  any  such  Registration Statement,
preliminary  prospectus  or  prospectus  or  based on illegal or alleged illegal
trading  of  the  Shares  by  the  Investor.  To  the  extent that the foregoing
undertaking  by  the  Company  may  be unenforceable for any reason, the Company
shall  make  the maximum contribution to the payment and satisfaction of each of
the  Indemnified  Liabilities  which  is  permissible  under applicable law. The
indemnity  provisions  contained  herein  shall  be  in addition to any cause of
action or similar rights the Investor may have, and any liabilities the Investor
may  be  subject  to.

11.  GOVERNING  LAW;  MISCELLANEOUS.

a.  Governing  Law.  This  Agreement  shall  be  governed  by and interpreted in
accordance  with the laws of the Commonwealth of Massachusetts without regard to
the principles of conflict of laws. Each party hereby irrevocably submits to the
exclusive  jurisdiction  of  the state and federal courts sitting in the City of
Boston,  County  of Suffolk, for the adjudication of any dispute hereunder or in
connection  herewith  or  with  any transaction contemplated hereby or discussed
herein,  and  hereby  irrevocably  waives, and agrees not to assert in any suit,
action  or  proceeding,  any  claim  that  it  is  not personally subject to the
jurisdiction  of any such court, that such suit, action or proceeding is brought
in an inconvenient forum or that the venue of such suit, action or proceeding is
improper.  Each  party hereby irrevocably waives personal service of process and
consents  to  process  being  served  in  any such suit, action or proceeding by
mailing a copy thereof to such party at the address for such notices to it under
this Agreement and agrees that such service shall constitute good and sufficient
service  of process and notice thereof. Nothing contained herein shall be deemed
to  limit  in any way any right to serve process in any manner permitted by law.
If  any  provision  of  this  Agreement shall be invalid or unenforceable in any
jurisdiction,  such invalidity or unenforceability shall not affect the validity
or enforceability of the remainder of this Agreement in that jurisdiction or the
validity  or  enforceability  of  any  provision  of this Agreement in any other
jurisdiction.

b.   Legal  Fees;
(i) Except as otherwise set forth in the Transaction Documents, each party shall
pay  the  fees  and expenses of its advisers, counsel, the accountants and other
experts,  if  any, and all other expenses incurred by such party incident to the
negotiation, preparation, execution, delivery and performance of this Agreement.
Any  attorneys'  fees  and  expenses  incurred  by  either the Company or by the
Investor in connection with the preparation, negotiation, execution and delivery
of any amendments to this Agreement or relating to the enforcement of the rights
of  any party, after the occurrence of any breach of the terms of this Agreement
by  another party or any default by another party in respect of the transactions
contemplated  hereunder, shall be paid on demand by the party which breached the
Agreement  and/or defaulted, as the case may be. The Company shall pay all stamp
and  other  taxes  and  duties  levied  in  connection  with the issuance of any
Securities.

c.  Counterparts.  This  Agreement  may  be  executed  in  two or more identical
counterparts,  all  of  which shall be considered one and the same agreement and
shall  become  effective  when  counterparts  have been signed by each party and
delivered  to  the  other  party;  provided  that a facsimile signature shall be
considered  due  execution  and shall be binding upon the signatory thereto with
the  same force and effect as if the signature were an original, not a facsimile
signature.

d. Headings; Singular/Plural. The headings of this Agreement are for convenience
of  reference  and shall not form part of, or affect the interpretation of, this
Agreement.  Whenever  required  by  the  context of this Agreement, the singular
shall  include  the  plural  and  masculine  shall  include  the  feminine.

e.  Severability.  If  any  provision  of  this  Agreement  shall  be invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not
affect the validity or enforceability of the remainder of this Agreement in that
jurisdiction  or  the  validity  or  enforceability  of  any  provision  of this
Agreement  in  any  other  jurisdiction.

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

g.  Notices.  Any  notices  or  other communications required or permitted to be
given under the terms of this Agreement must be in writing and will be deemed to
have  been  delivered  (i)  upon  receipt,  when delivered personally; (ii) upon
receipt,  when  sent  by  facsimile  (provided  confirmation  of transmission is
mechanically or electronically generated and kept on file by the sending party);
or  (iii)  one  (1)  day  after  deposit  with a nationally recognized overnight
delivery  service,  in  each case properly addressed to the party to receive the
same.  The  addresses  and  facsimile  numbers for such communications shall be:
IF  TO  THE  COMPANY:

Kevin  Ryan
Chief  Executive  Officer  and  Chairman
11782  Western  Avenue,  Unit  18
Stanton,  California  90680
Telephone:  (714)  895-0944

With  a  copy  to:
Amy  Trombly,  Esq.
1163  Walnut  Street,  Suite  7
Newton,  MA  02461

IF  TO  THE  INVESTOR:
John  Wykoff
34  Myrtle  St
Boston,  MA  02108

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

h.  No  Assignment.  This  Agreement  may  not  be  assigned.

i.  No  Third Party Beneficiaries. This Agreement is intended for the benefit of
the  parties  hereto and is not for the benefit of, nor may any provision hereof
be  enforced  by,  any  other  person.

j.  Survival. The representations and warranties of the Company and the Investor
contained  in  Sections  2  and  3,  the  agreements  and covenants set forth in
Sections  4  and  5, and the indemnification provisions set forth in Section 10,
shall  survive  each  of  the  Closings  and  the termination of this Agreement.

k.  Publicity. The Company and Investor shall consult with each other in issuing
any  press  releases  or  otherwise making public statements with respect to the
transactions contemplated hereby and no party shall issue any such press release
or  otherwise  make  any  such public statement without the prior consent of the
other  parties,  which  consent  shall  not be unreasonably withheld or delayed,
except that no prior consent shall be required if such disclosure is required by
law,  in  which  such  case the disclosing party shall provide the other parties
with  prior  notice of such public statement. Notwithstanding the foregoing, the
Company  shall  not  publicly  disclose  the  name of Investor without the prior
written consent of such Investor, except to the extent required by law. Investor
acknowledges  that  this  Agreement and all or part of the Transaction Documents
may  be  deemed  to  be  "material  contracts"  as  that term is defined by Item
601(b)(10)  of Regulation S-K, and that the Company may therefore be required to
file  such  documents  as  exhibits  to reports or registration statements filed
under  the Securities 1933 Act or the 1934 Act. Investor further agrees that the
status of such documents and materials as material contracts shall be determined
solely  by  the  Company,  in  consultation  with  its  counsel.

l.  Further Assurances. Each party shall do and perform, or cause to be done and
performed,  all  such further acts and things, and shall execute and deliver all
such  other  agreements,  certificates,  instruments and documents, as the other
party may reasonably request in order to carry out the intent and accomplish the
purposes of this Agreement and the consummation of the transactions contemplated
hereby.

m.  Placement  Agent.  The Company agrees to pay U.S. Euro Securities, ("USE") a
registered  broker  dealer, 1% of the Put Amount on each draw as a fee, until an
aggregate  amount of $7,500. USE will also act as an unaffiliated broker dealer.
The  Investor  shall have no obligation with respect to any fees or with respect
to  any  claims  made by or on behalf of other persons or entities for fees of a
type  contemplated  in  this  Section  that  may  be  due in connection with the
transactions  contemplated  by  the  Transaction  Documents.  The  Company shall
indemnify  and hold harmless the Investor, their employees, officers, directors,
agents,  and  partners,  and  their  respective affiliates, from and against all
claims,  losses,  damages,  costs  (including  the  costs  of  preparation  and
attorney's  fees)  and  expenses  incurred  in  respect  of  any such claimed or
existing  fees,  as  such  fees  and  expenses  are  incurred.

n. No Strict Construction. The language used in this Agreement will be deemed to
be  the  language  chosen  by the parties to express their mutual intent, and no
rules  of  strict  construction  will  be  applied  against  any  party.

o.  Remedies.  The  Investor and each holder of the Shares shall have all rights
and  remedies  set forth in this Agreement and the Registration Rights Agreement
and  all  rights  and  remedies which such holders have been granted at any time
under  any  other agreement or contract and all of the rights which such holders
have  under  any  law.  Any person having any rights under any provision of this
Agreement shall be entitled to enforce such rights specifically (without posting
a bond or other security), to recover damages by reason of any default or breach
of  any  provision  of  this  Agreement,  including  the  recovery of reasonable
attorneys  fees  and  costs,  and  to  exercise all other rights granted by law.

p. Payment Set Aside. To the extent that the Company makes a payment or payments
to  the  Investor hereunder or the Registration Rights Agreement or the Investor
enforces  or  exercises  its rights hereunder or thereunder, and such payment or
payments or the proceeds of such enforcement or exercise or any part thereof are
subsequently  invalidated, declared to be fraudulent or preferential, set aside,
recovered from, disgorged by or are required to be refunded, repaid or otherwise
restored  to  the Company, a trustee, receiver or any other person under any law
(including, without limitation, any bankruptcy law, state or federal law, common
law  or  equitable  cause of action), then to the extent of any such restoration
the  obligation  or  part  thereof  originally intended to be satisfied shall be
revived  and  continued in full force and effect as if such payment had not been
made  or  such  enforcement  or  setoff  had  not  occurred.

q. Pricing of Common Stock. For purposes of this Agreement, the bid price of the
Common  Stock  in  this  Agreement  shall  be  as  reported  on  Bloomberg.

XTREME  COMPANIES,  INCORPORATED
INVESTMENT  AGREEMENT  SIGNATURE  PAGE
Your  signature  on  this Signature Page evidences your agreement to be bound by
the terms and conditions of the Investment Agreement and the Registration Rights
Agreement.
1.  The  undersigned  signatory  hereby  certifies  that  he/she  has  read  and
understands  the  Investment  Agreement,  and  the  representations  made by the
undersigned  in  this  Investment  Agreement  are  true  and  accurate.

PRESTON  CAPITAL  PARTNERS,  LLC

                                   By:  /s/  John  P  Wykoff
                                          --------------------
                                   Name:  John  P  Wykoff
                                  Title:   A  Managing  Member

XTREME  COMPANIES,  INCORPORATED

                                       By:  /s/  Kevin Ryan
                                          --------------------
                                        Kevin Ryan, CEOXTREME COMPANIES, INC.
                            PLACEMENT AGENT AGREEMENT

Dated  as  of:  June 3,  2005

The  undersigned,  Xtreme Companies, Inc., a Nevada corporation (the "COMPANY"),
hereby  agrees  with  U.S.  Euro  Securities  (the "PLACEMENTAGENT") and Preston
Capital  Partners.,  a Delaware Limited Partnership (the "INVESTOR") as follows:

1.     OFFERING.  The  Company  hereby engages the Placement Agent to act as its
exclusive  placement  agent  in  connection  with the Investment Agreement dated
June 3, 2005 (the "INVESTMENT AGREEMENT") pursuant to which the Company shall
issue  and  sell  to  the  Investor,  from  time to time, and the Investor shall
purchase  from  the  Company  (the  "OFFERING")  up  to  Five  Million  Dollars
($5,000,000)  of  the  Company's  Class  A  Voting Common Stock (the "COMMITMENT
AMOUNT"),  par  value  $0.001 per share (the "COMMON STOCK"), at price per share
equal  to  the  Purchase  Price,  as  that  term  is  defined  in the Investment
Agreement.  Pursuant  to  the  terms  hereof,  the  Placement Agent shall render
consulting  services to the Company with respect to the Investment Agreement and
shall  be  available  for  consultation  in  connection  with the advances to be
requested  by the Company pursuant to the Investment Agreement.  All capitalized
terms  used  herein and not otherwise defined herein shall have the same meaning
ascribed  to  them  as in the Investment Agreement. The Investor will be granted
certain  registration  rights with respect to the Common Stock as more fully set
forth  in  a  Registration Rights Agreement between the Company and the Investor
dated  June 3, 2005 (the "REGISTRATION RIGHTS AGREEMENT"). The documents to be
executed  and  delivered  in  connection  with  the Offering, including, but not
limited,  to  this  Agreement,  the  Investment  Agreement, and the Registration
Rights  Agreement,  and  any Prospectus or other disclosure document ( including
all  amendments  and  supplements ) utilized in connection with the Offering are
referred  to sometimes hereinafter collectively as the "OFFERING MATERIALS." The
Company's Common Stock is sometimes referred to hereinafter as the "SECURITIES."
The  Placement  Agent  shall  not  be  obligated to sell any Securities and this
Offering  by  the  Placement  Agent  shall  be solely on a "best efforts basis."

2.     REPRESENTATIONS,  WARRANTIES  AND  COVENANTS  OF  THE  PLACEMENT  AGENT.

     A.  The  Placement  Agent  represents,  warrants  and covenants as follows:

     (i)     The Placement Agent has the necessary  authority to enter into this
Agreement  and  to  consummate  the  transactions  contemplated  hereby.

     (ii)     The  execution  and  delivery  by  the  Placement  Agent  of  this
Agreement  and the consummation of the transactions contemplated herein will not
result  in  any  violation  of,  or be in conflict with, or constitute a default
under, any agreement or instrument to which the Placement Agent is a party or by
which  the Placement Agent or its properties are bound, or any judgment, decree,
order  or,  to  the Placement Agent's knowledge, any statute, rule or regulation
applicable to the Placement Agent. This Agreement when executed and delivered by
the Placement Agent, will constitute the legal, valid and binding obligations of
the  Placement  Agent,  enforceable  in  accordance with their respective terms,
except  to  the

<PAGE>
extent  that  (a)  the  enforceability  hereof  or  thereof  may  be  limited by
bankruptcy,  insolvency, reorganization, moratorium or similar laws from time to
time  in  effect  and  affecting  the  rights  of  creditors  generally, (b) the
enforceability  hereof or thereof is subject to general principles of equity, or
(c)  the  indemnification  provisions  hereof  or  thereof  may be held to be in
violation  of  public  policy.

     (iii)     Upon  receipt and execution of this Agreement the Placement Agent
will promptly forward copies of this Agreement to the Company or its counsel and
the  Investor  or  its  counsel.

     (iv)     The  Placement  Agent  will not take any action that it reasonably
believes  would  cause  the Offering to violate the provisions of the Securities
Act  of  1933,  as amended (the "1933 ACT"), the Securities Exchange Act of 1934
(the  "1934  ACT"), the respective rules and regulations promulgated there under
(the  "RULES  AND  REGULATIONS")  or  applicable "Blue Sky" laws of any state or
jurisdiction.

     (v)     The  Placement  Agent  will use all reasonable efforts to determine
(a)  whether the Investor is an Accredited Investor and (b) that any information
furnished  by the Investor is true and accurate.  The Placement Agent shall have
no  obligation  to  insure  that  (x)  any  check, note, draft or other means of
payment  for  the  Common Stock will be honored, paid or enforceable against the
Investor  in accordance with its terms, or (y) subject to the performance of the
Placement  Agent's  obligations  and  the  accuracy  of  the  Placement  Agent's
representations  and  warranties  hereunder, (1) the Offering is exempt from the
registration requirements of the 1933 Act or any applicable state "Blue Sky" law
or  (2)  the  Investor  is  an  Accredited  Investor.

     (vi)     The  Placement  Agent  is  a member of the National Association of
Securities  Dealers,  Inc.,  and is a broker-dealer registered as such under the
1934  Act  and  under  the securities laws of the states in which the Securities
will  be  offered  or  sold  by the Placement Agent unless an exemption for such
state  registration  is available to the Placement Agent. The Placement Agent is
in  compliance  with  all  material  rules  and  regulations  applicable  to the
Placement  Agent generally and applicable to the Placement Agent's participation
in  the  Offering.

3.     REPRESENTATIONS  AND  WARRANTIES  OF  THE  COMPANY.

A.  The  Company  makes  to  the  Placement  Agent  all  the representations and
warranties  it  makes  to  the  Investor  in  the  Investment  Agreement and, in
addition,  represents  and  warrants  as  follows:

     (i)     The  execution, delivery and performance of each of this Agreement,
the  Investment Agreement and the Registration Rights Agreement has been or will
be  duly  and validly authorized by the Company and is, and with respect to this
Agreement,  the  Investment Agreement and the Registration Rights Agreement will
each be, a valid and binding agreement of the Company, enforceable in accordance
with  its  respective  terms,  except  to the extent that (a) the enforceability
hereof  or  thereof  may  be  limited by bankruptcy, insolvency, reorganization,
moratorium  or similar laws from time to time in effect and affecting the rights
of  creditors  generally, (b) the enforceability hereof or thereof is subject to
general  principles  of  equity  or (c) the indemnification provisions hereof or
thereof  may  be  held to be in violation of public policy. The Securities to be
issued  pursuant  to  the  transactions  contemplated  by this Agreement and the
Investment  Agreement  have  been

<PAGE>
duly  authorized  and,  when  issued  and  paid  for in accordance with (x) this
Agreement,  the  Investment  Agreement  and  the  certificates/instruments
representing  such  Securities, (y) will be valid and binding obligations of the
Company,  enforceable  in  accordance with their respective terms, except to the
extent  that  (1)  the  enforceability  thereof  may  be  limited by bankruptcy,
insolvency,  reorganization,  moratorium  or  similar  laws from time to time in
effect  and  affecting  the  rights  of  creditors  generally,  and  (2)  the
enforceability thereof is subject to general principles of equity. All corporate
action  required  to  be  taken  for the authorization, issuance and sale of the
Securities  has  been  duly  and  validly  taken  by  the  Company.

     (ii)     The  Company  has  a  duly  authorized,  issued  and  outstanding
capitalization  as set forth herein and in the Investment Agreement. The Company
is  not  a  party  to or bound by any instrument, agreement or other arrangement
providing  for it to issue any capital stock, rights, warrants, options or other
securities,  except  for  this Agreement, the agreements described herein and as
described  in the Investment Agreement, dated the date hereof and the agreements
described  therein.  All  issued and outstanding securities of the Company, have
been  duly  authorized and validly issued and are fully paid and non-assessable;
the  holders  thereof  have  no  rights  of rescission or preemptive rights with
respect  thereto  and  are not subject to personal liability solely by reason of
being  security holders; and none of such securities were issued in violation of
the  preemptive  rights of any holders of any security of the Company. As of the
date  hereof,  the  authorized  capital  stock  of  the  Company  consists  of
100,000,000 shares of Class A Voting Common Stock, par value $0.001 per share of
which  17,293,119  shares  of  Common  Stock  are  issued  and  outstanding  .

     (iii)     The  Common  Stock to be issued in accordance with this Agreement
and  the  Investment Agreement has been duly authorized and when issued and paid
for  in  accordance  with  this  Agreement,  the  Investment  Agreement  and the
certificates/instruments representing such Common Stock, will be validly issued,
fully-paid  and  non-assessable;  the  holders  thereof  will  not be subject to
personal  liability  solely by reason of being such holders; such Securities are
not  and  will  not  be  subject  to  the preemptive rights of any holder of any
security  of  the  Company.

4.     REPRESENTATIONS,  WARRANTIES  AND  COVENANTS  OF  THE  INVESTOR.

A.     The  Investor  makes  to  the Placement Agent all the representations and
warranties  it makes to the Company in the Investment Agreement and, in addition
represents,  warrants  and  covenants  as  follows:

     (i)     The  Investor  has the necessary power to enter into this Agreement
and  to  consummate  the  transactions  contemplated  hereby.

     (ii)     The  execution  and delivery by the Investor of this Agreement and
the  consummation of the transactions contemplated herein will not result in any
violation  of,  or  be  in  conflict

<PAGE>
with,  or  constitute  a default under, any agreement or instrument to which the
Investor is a party or by which the Investor or its properties are bound, or any
judgment,  decree,  order  or, to the Investor's knowledge, any statute, rule or
regulation  applicable  to  the  Investor.  This  Agreement  when  executed  and
delivered  by  the  Investor,  will  constitute  the  legal,  valid  and binding
obligations  of  the  Investor,  enforceable in accordance with their respective
terms, except to the extent that (a) the enforceability hereof or thereof may be
limited  by  bankruptcy,  insolvency, reorganization, moratorium or similar laws
from time to time in effect and affecting the rights of creditors generally, (b)
the enforceability hereof or thereof is subject to general principles of equity,
or  (c)  the  indemnification  provisions hereof or thereof may be held to be in
violation  of  public  policy.

         (iii)  the  Investor  is  not,  and  will  not  be,  as a result of the
transactions  contemplated  by  the  Offering  Materials  a  "dealer" within the
meaning  of the Securities Exchange Act of 1934 and applicable federal and state
securities  laws and regulations. The Investor covenants that in this respect it
is and will remain in compliance with the requirements of applicable "no action"
rulings  of  the  U.S.  Securities  Exchange  Commission.

     (iv)     The  Investor  will  promptly  forward  copies  of any and all due
diligence  questionnaires  compiled  by  the  Investor  to  the Placement Agent.

5.     CERTAIN  COVENANTS  AND  AGREEMENTS  OF  THE  COMPANY.

     The  Company covenants and agrees at its expense and without any expense to
the  Placement  Agent  as  follows:

A.     To  advise  the  Placement  Agent  of  any material adverse change in the
Company's  financial  condition,  prospects  or  business  or of any development
materially  affecting the Company or rendering untrue or misleading any material
statement in the Offering Materials occurring at any time as soon as the Company
is  either  informed  or  becomes  aware  thereof.

B.     To  use  its  commercially  reasonable  efforts to cause the Common Stock
issuable  in  connection  with  the  Equity  Line  of  Credit to be qualified or
registered  for  sale  on terms consistent with those stated in the Registration
Rights  Agreement  and  under  the  securities laws of such jurisdictions as the
Placement  Agent  and  the  Investor  shall  reasonably  request. Qualification,
registration  and  exemption  charges  and  fees  shall  be at the sole cost and
expense  of  the  Company.

C.     Upon  written  request,  to provide and continue to provide the Placement
Agent  and the Investor copies of all quarterly financial statements and audited
annual  financial  statements  prepared  by  or  on behalf of the Company, other
reports  prepared  by  or on behalf of the Company for public disclosure and all
documents  delivered  to  the  Company's  stockholders.

D.     To  deliver,  during the registration period of the Investment Agreement,
to  the  Placement  Agent  upon  the  Placement  Agent's  request,

     (i)     within  forty  five  (45)  days, a statement of its income for each
such  quarterly  period,  and  its  balance  sheet and a statement of changes in
stockholders'  equity  as of the end of such quarterly period, all in reasonable
detail,  certified  by  its  principal  financial  or  accounting  officer;

<PAGE>

     (ii)     within  ninety  (90) days after the close of each fiscal year, its
balance  sheet as of the close of such fiscal year, together with a statement of
income,  a  statement of changes in stockholders' equity and a statement of cash
flow for such fiscal year, such balance sheet, statement of income, statement of
changes  in  stockholders' equity and statement of cash flow to be in reasonable
detail  and  accompanied  by  a  copy  of  the  certificate or report thereon of
independent  auditors  if  audited  financial  statements  are  prepared;  and

     (iii)     a copy of all documents, reports and information furnished to its
stockholders  at  the  time  that  such  documents,  reports and information are
furnished  to  its  stockholders.

(iv)     a  copy  of  all  documents,  reports  and information furnished to the
Investor  at the time that such documents, reports and information are furnished
to  the  Investor.

E.     To  comply  with  the  terms  of  the  Offering  Materials.

F.     To  ensure  that any transactions between or among the Company, or any of
its  officers,  directors  and affiliates be on terms and conditions that are no
less  favorable  to  the  Company,  than  the terms and conditions that would be
available  in  an  "arm's  length"  transaction with an independent third party.

6.     INDEMNIFICATION.

A.     The  Company  hereby agrees that it will indemnify and hold the Placement
Agent and each officer, director, shareholder, employee or representative of the
Placement  Agent  and  each  person  controlling,  controlled by or under common
control  with  the  Placement Agent within the meaning of Section 15 of the 1933
Act or Section 20 of the 1934 Act or the SEC's Rules and Regulations promulgated
there under (the "Rules and Regulations"), harmless from and against any and all
loss,  claim,  damage, liability, cost or expense whatsoever (including, but not
limited  to,  any  and  all  reasonable  legal  fees  and  other  expenses  and
disbursements  incurred in connection with investigating, preparing to defend or
defending  any  action,  suit  or  proceeding,  including  any  inquiry  or
investigation,  commenced or threatened, or any claim whatsoever or in appearing
or  preparing  for  appearance  as  a witness in any action, suit or proceeding,
including  any  inquiry,  investigation  or  pretrial  proceeding  such  as  a
deposition)  to  which  the  Placement  Agent  or such indemnified person of the
Placement  Agent  may become subject under the 1933 Act, the 1934 Act, the Rules
and  Regulations, or any other federal or state law or regulation, common law or
otherwise,  arising  out  of  or  based upon (i) any untrue statement or alleged
untrue  statement  of  a  material  fact  contained  in  (a)  Section  4 of this
Agreement,  (b) the Offering Materials (except those written statements relating
to  the  Placement  Agent given by an indemnified person for inclusion therein),
(c)  any  application or other document or written communication executed by the
Company  or based upon written information furnished by the Company filed in any
jurisdiction  in  order  to  qualify  the Common Stock under the securities laws
thereof,  or  any  state  securities  commission or agency; (ii) the omission or
alleged  omission from documents described in clauses (a), (b) or (c) above of a
material  fact required to be stated therein or necessary to make the statements
therein  not  misleading;  or  (iii) the breach of any representation, warranty,
covenant or agreement made by the Company in this Agreement. The Company further
agrees  that  upon  demand by an indemnified person, at any time or from time to
time,  it  will  promptly reimburse such indemnified person for any loss, claim,
damage,  liability,  cost  or  expense  actually  and

<PAGE>
reasonably  paid  by  the  indemnified  person  as  to  which  the  Company  has
indemnified  such  person  pursuant  hereto.  Notwithstanding  the  foregoing
provisions  of  this  Paragraph  6(A),  any such payment or reimbursement by the
Company  of fees, expenses or disbursements incurred by an indemnified person in
any  proceeding  in  which a final judgment by a court of competent jurisdiction
(after  all  appeals or the expiration of time to appeal) is entered against the
Placement  Agent  or such indemnified person based upon specific finding of fact
as  to  the  Placement  Agent  or  such indemnified person's gross negligence or
willful  misfeasance  will  be  promptly  repaid  to  the  Company.

B.     The  Placement  Agent  hereby  agrees that it will indemnify and hold the
Company  and  each officer, director, shareholder, employee or representative of
the  Company, and each person controlling, controlled by or under common control
with  the Company within the meaning of Section 15 of the 1933 Act or Section 20
of  the 1934 Act or the Rules and Regulations, harmless from and against any and
all  loss,  claim, damage, liability, cost or expense whatsoever (including, but
not  limited  to,  any  and  all  reasonable  legal  fees and other expenses and
disbursements  incurred in connection with investigating, preparing to defend or
defending  any  action,  suit  or  proceeding,  including  any  inquiry  or
investigation,  commenced or threatened, or any claim whatsoever or in appearing
or  preparing  for  appearance  as  a witness in any action, suit or proceeding,
including  any  inquiry,  investigation  or  pretrial  proceeding  such  as  a
deposition)  to  which the Company or such indemnified person of the Company may
become  subject  under the 1933 Act, the 1934 Act, the Rules and Regulations, or
any  other  federal or state law or regulation, common law or otherwise, arising
out  of  or  based  upon (i) the conduct of the Placement Agent or its officers,
employees  or  representatives  in  willful  violation  of  any of such laws and
regulations  while  acting  as  Placement  Agent  for  the  Offering or (ii) the
material  breach  of any representation, warranty, covenant or agreement made by
the  Placement Agent in this Agreement (iii) any false or misleading information
provided  to  the  Company  by one of the Placement Agent's indemnified persons.
Notwithstanding  the  foregoing  provisions  of  this  Paragraph  6(B), any such
payment  or  reimbursement  by  the  Placement  Agent  of  fees,  expenses  or
disbursements  incurred  by  an  indemnified person in any proceeding in which a
final  judgment  by  a court of competent jurisdiction (after all appeals or the
expiration  of  time to appeal) is entered against such indemnified person based
upon  specific  finding of fact as to such indemnified person's gross negligence
or willful misfeasance will be promptly repaid to the Placement Agent. Placement
Agent  shall  not  be  responsible  for any such indemnity payment, loss, claim,
damage  or  liability beyond what amount of the gross proceeds was paid to them.

C.     The  Investor hereby agrees that it will indemnify and hold the Placement
Agent and each officer, director, shareholder, employee or representative of the
Placement  Agent,  and  each  person  controlling, controlled by or under common
control  with  the  Placement Agent within the meaning of Section 15 of the 1933
Act  or  Section  20 of the 1934 Act or the Rules and Regulations, harmless from
and  against  any  and  all  loss,  claim,  damage,  liability,  cost or expense
whatsoever (including, but not limited to, any and all reasonable legal fees and
other  expenses  and  disbursements  incurred  in connection with investigating,
preparing  to  defend or defending any action, suit or proceeding, including any
inquiry or investigation, commenced or threatened, or any claim whatsoever or in
appearing  or  preparing  for  appearance  as  a  witness in any action, suit or
proceeding,  including any inquiry, investigation or pretrial proceeding such as
a  deposition)  to  which  the Placement Agent or such indemnified person of the
Placement  Agent  may become subject under the 1933 Act, the 1934 Act, the Rules
and  Regulations, or any other federal or state law or regulation, common law or
otherwise,  arising  out of or based upon (i) the conduct of the Investor or its
officers,  employees  or  representatives  in its acting as the Investor for the
Offering  or  (ii) the material breach of any representation, warranty, covenant
or  agreement  made by the Investor in the Offering Materials (iii) any false or
misleading information provided to the Placement Agent by the Investor or one of
the  Investor's  indemnified  persons.

D.  The  Placement  Agent  hereby  agrees  that  it  will indemnify and hold the
Investor  and each officer, director, shareholder, employee or representative of
the Investor, and each person controlling, controlled by or under common control
with the Investor within the meaning of section 15 of the 1933 Act or Section 20
of  the 1934 Act or the Rules and Regulations, harmless from and against any and
all  loss,  claim, damage, liability, cost or expense whatsoever (including, but
not  limited  to,  any  and  all  reasonable  legal  fees and other expenses and
disbursements  incurred in connection with investigating, preparing to defend or
defending  any  action,  suit  or  proceeding,  including  any  inquiry  or
investigation,  commenced or threatened, or any claim whatsoever or in appearing
or  preparing  for  appearance  as  a witness in any action, suit or proceeding,
including  any  inquiry,  investigation  or  pretrial  proceeding  such  as  a
deposition) to which the Investor or such indemnified person of the Investor may
become  subject  under the 1933 Act, the 1934 Act, the Rules and Regulations, or
any  other  federal or state law or regulation, common law or otherwise, arising
out  of  or  based  upon (i) the conduct of the Placement Agent or its officers,
employees  or  representatives  in  willful  violation  of  any of such laws and
regulations  while  acting  as  the Placement Agent for the Offering or (ii) the
material  breach  of any representation, warranty, covenant or agreement made by
the  Placement Agent in this Agreement (iii) any false or misleading information
provided  to  the  Investor by one of the Placement Agent's indemnified persons.
Notwithstanding  the  foregoing  provisions  of  this  Paragraph  6(D), any such
payment  or  reimbursement  by  the  Placement  Agent  of  fees,  expenses  or
disbursements  incurred  by  an  indemnified person in any proceeding in which a
final  judgment  by  a court of competent jurisdiction (after all appeals or the
expiration  of  time to appeal) is entered against such indemnified person based
upon  specific  finding of fact as to such indemnified person's gross negligence
or willful misfeasance will be promptly repaid to the Placement Agent. Placement
Agent  shall  not  be  responsible  for any such indemnity payment, loss, claim,
damage  or  liability beyond what amount of the gross proceeds was paid to them.

E.     Promptly  after receipt by an indemnified party of notice of commencement
of  any  action  covered  by  Section  6(A),  (B),  (C)  or (D), the party to be
indemnified  shall, within five (5) business days, notify the indemnifying party
of  the  commencement  thereof;  the omission by one (1) indemnified party to so
notify  the  indemnifying  party shall not relieve the indemnifying party of its
obligation  to  indemnify any other indemnified party that has given such notice
and  shall  not  relieve the indemnifying party of any liability outside of this
indemnification  if  not  materially  prejudiced  thereby. In the event that any
action  is brought against the indemnified party, the indemnifying party will be
entitled  to participate therein and, to the extent it may desire, to assume and
control  the  defense  thereof  with  counsel  chosen  by it which is reasonably
acceptable to the indemnified party. After notice from the indemnifying party to
such  indemnified  party  of  its election to so assume the defense thereof, the
indemnifying  party  will  not  be  liable  to such indemnified party under such
Section  6(A),  (B),  (C),  or  (D) for any legal or other expenses subsequently
incurred  by  such indemnified party in connection with the defense thereof, but
the  indemnified  party  may, at its own expense, participate in such defense by
counsel  chosen  by  it,  without,  however,  impairing the indemnifying party's
control  of  the  defense.  Subject  to  the  proviso  of  this  sentence  and
notwithstanding  any  other  statement  to  the  contrary  contained herein, the
indemnified  party  or  parties  shall have the right to choose its or their own
counsel  and  control  the  defense  of  any  action,  all at the expense of the
indemnifying  party  if,  (i)  the  employment  of  such counsel shall have been
authorized  in  writing by the indemnifying party in connection with the defense
of  such  action  at  the  expense  of  the  indemnifying  party,  or  (ii)  the
indemnifying  party  shall  not have employed counsel reasonably satisfactory to
such  indemnified  party  to  have charge of the defense of such action within a
reasonable  time  after  notice  of  commencement  of  the action, or (iii) such
indemnified  party  or parties shall have reasonably concluded that there may be
defenses available to it or them which are different from or additional to those
available  to  one  or  all  of  the  indemnifying  parties  (in  which case the
indemnifying  parties  shall  not  have  the right to direct the defense of such
action  on  behalf  of the indemnified party or parties), in any of which events
such  fees  and  expenses  of  one  additional  counsel  shall  be  borne by the
indemnifying party; provided, however, that the indemnifying party shall not, in
connection  with any one action or separate but substantially similar or related
actions  in the same jurisdiction arising out of the same general allegations or
circumstance,  be  liable  for the reasonable fees and expenses of more than one
separate  firm  of  attorneys  at  any  time  for  all
such  indemnified  parties. No settlement of any action or proceeding against an
indemnified  party  shall be made without the consent of the indemnifying party.

F.     In  order to provide for just and equitable contribution in circumstances
in which the indemnification provided for in Section 6 is due in accordance with
its  terms but is for any reason held by a court to be unavailable on grounds of
policy  or otherwise, the Company and the Placement Agent and the Investor shall
contribute  to  the aggregate losses, claims, damages and liabilities (including
legal or other expenses reasonably incurred in connection with the investigation
or  defense  of  same)  which the other may incur in such proportion so that the
Company,  the  Placement  Agent  and  the Investor shall be responsible for such
percent  of  the  aggregate  of  such losses, claims, damages and liabilities as
shall  equal  the  percentage  of  the  gross  proceeds  paid  to each of them.;
provided,  however, that no person guilty of fraudulent misrepresentation within
the  meaning  of Section 11(f) of the 1933 Act shall be entitled to contribution
from  any  person  who  was not guilty of such fraudulent misrepresentation. For
purposes  of  this  Section 6(F), any person controlling, controlled by or under
common  control  with  the  Placement  Agent, or any partner, director, officer,
employee, representative or any agent of any thereof, shall have the same rights
to  contribution  as the Placement Agent and each person controlling, controlled
by  or under common control with the Company within the meaning of Section 15 of
the  1933  Act or Section 20 of the 1934 Act and each officer of the Company and
each  director  of the Company shall have the same rights to contribution as the
Company  and each person controlling, controlled by or under common control with
the  Investor  within the meaning of Section 15 of the 1933 Act or Section 20 of
the  1934 Act and each member of the general partner of the Investor  shall have
the  same  rights  to  contribution  as  the  Company.  Any  party  entitled  to
contribution  will,  promptly  after  receipt  of  notice of commencement of any
action,  suit  or  proceeding against such party in respect of which a claim for
contribution may be made against the other party under this Section 6(F), notify
such  party  from whom contribution may be sought, but the omission to so notify
such party shall not relieve the party from whom contribution may be sought from
any  obligation  they  may  have  hereunder  or otherwise if the party from whom
contribution  may  be sought is not materially prejudiced thereby. The indemnity
and  contribution  agreements contained in this Section 6 shall remain operative
and  in  full  force  and  effect  regardless of any investigation made by or on
behalf  of  any  indemnified  person  or  any  termination  of  this  Agreement.

7.     FEES.  Upon the execution of this Agreement, the Company hereby agrees to
pay  the  Placement Agent 1% for the gross proceeds from each Put with a maximum
aggregate  amount  of  ten  thousand  dollars  ($10,000)

8.     PAYMENT  OF  EXPENSES.  The  Company  hereby  agrees  to  bear all of the
expenses  in  connection  with  the  Offering, including, but not limited to the
following:  filing fees, printing and duplicating costs, advertisements, postage
and  mailing  expenses  with  respect to the transmission of Offering Materials,
registrar  and  transfer agent fees, and expenses, fees of the Company's counsel
and  accountants,  issue  and transfer taxes, if any. The Company agrees to bear
all  the  reasonable  expenses of the Placement Agent in performing its services
under  this  Agreement  including  but  not  limited to the fees and expenses of
counsel.

9.     CONDITIONS  OF  CLOSING.  The Closing shall be held at the offices of the
Investor  or its counsel. The obligations of the Placement Agent hereunder shall
be  subject  to the continuing accuracy of the representations and warranties of
the  Company  herein  as  of  the date hereof and as of the Date of Closing (the
"Closing  Date") with respect to the Company as if it had been made on and as of
such  Closing  Date;  the  accuracy  on  and  as  of  the
Closing  Date  of the statements of the officers of the Company made pursuant to
the  provisions  hereof;  and  the  performance  by the Company on and as of the
Closing  Date  of  its  covenants and obligations hereunder and to the following
further  conditions:

A.     Upon  the  effectiveness  of a registration statement  in accordance with
the  Investment  Agreement,  the  Placement  Agent shall receive the opinions of
Counsel  to the Company and of the Investor, dated as of the date thereof, which
opinion  shall be in form and substance reasonably satisfactory to the Investor,
the  Company,  their  counsel  and  the  Placement  Agent.

B.     At or prior to the Closing, the Placement Agent shall have been furnished
such  documents,  certificates and opinions as it may reasonably require for the
purpose  of enabling them to review or pass upon the matters referred to in this
Agreement  and  the  Offering  Materials,  or in order to evidence the accuracy,
completeness  or  satisfaction  of  any  of  the  representations, warranties or
conditions  herein  contained.

C.     At  and  prior  to  the  Closing,  (i)  there shall have been no material
adverse  change  nor development involving a prospective change in the condition
or  prospects or the business activities, financial or otherwise, of the Company
from  the  latest  dates as of which such condition is set forth in the Offering
Materials; (ii) there shall have been no transaction, not in the ordinary course
of business except the transactions pursuant to the Investment Agreement entered
into by the Company which has not been disclosed in the Offering Materials or to
the  Placement  Agent  in  writing;  (iii)  except  as set forth in the Offering
Materials,  the  Company  shall  not  be  in  default under any provision of any
instrument  relating  to  any  outstanding  indebtedness  for  which a waiver or
extension  has  not  been  otherwise  received;  (iv) except as set forth in the
Offering Materials, the Company shall not have issued any securities (other than
those  to  be  issued as provided in the Offering Materials) or declared or paid
any  dividend  or  made  any  distribution of its capital stock of any class and
there shall not have been any change in the indebtedness (long or short term) or
liabilities  or  obligations  of the Company (contingent or otherwise) and trade
payable  debt;  (v)  no  material amount of the assets of the Company shall have
been  pledged  or  mortgaged, except as indicated in the Offering Materials; and
(v)  no  action, suit or proceeding, at law or in equity, against the Company or
affecting  any  of  its  properties or businesses shall be pending or threatened
before  or  by  any  court  or  federal  or  state  commission,  board  or other
administrative  agency,  domestic  or  foreign, wherein an unfavorable decision,
ruling or finding could materially adversely affect the businesses, prospects or
financial  condition  or  income  of  the  Company,  except  as set forth in the
Offering  Materials.

D.     At  Closing,  the  Placement  Agent  shall  receive  a certificate of the
Company  signed by an executive officer and chief financial officer, dated as of
the  applicable  Closing,  to  the  effect  that  the  conditions  set  forth in
subparagraph  (C)  above  have  been  satisfied  and  that, as of the applicable
closing,  the representations and warranties of the Company set forth herein are
true  and  correct.

10.     TERMINATION.  This  Agreement  shall  be co-terminus with, and terminate
upon  the  same  terms  and  conditions  as  those  set forth in, the Investment
Agreement.  The  rights of the Investor and the obligations of the Company under
the Registration Rights Agreement, and the rights of the Placement Agent and the
obligations  of  the  Company  shall  survive  the termination of this Agreement
unabridged  for  a  period  of  twenty-four  (24) months after the Closing Date.

11.     MISCELLANEOUS.  A.  This  Agreement  may  be  executed  in any number of
counterparts,  each  of  which  shall be deemed to be an original, but all which
shall  be  deemed  to  be one and the same instrument. B. Any notice required or
permitted  to  be  given hereunder shall be given in writing and shall be deemed
effective  when  deposited  in  the United States mail, postage prepaid, or when
received if personally delivered or faxed (upon confirmation of receipt received
by  the  sending  party),  addressed  as  follows:

If  to  Placement  Agent,  to:
     US  EURO  Securities,  Inc
     Corporate  Finance  Department
     275  Madison  Ave
     6th  Floor
     New  York,  NY  10016

     With  a  copy  to:
     Michael  Roy  Fugler
     Same  address

     If  to  the  Company,  to:

      Kevin  Ryan
     Xtreme  Companies
     300  Westlink  Ave
     Washington,  MO  63090

     With  a  copy  to:

     If  to  the  Investor:

Preston  Capital  Partners,  LLC
34  Myrtle  St
Boston  MA  02108

     or  to  such  other address of which written notice is given to the others.

C.     This  Agreement  shall be governed by and construed in all respects under
the  laws  of  the  State of Delaware, without reference to its conflict of laws
rules  or  principles. Any suit, action, proceeding or litigation arising out of
or relating to this Agreement shall be brought and prosecuted in such federal or
state  court  or  courts  located  within  the  Commonwealth of Massachusetts as
provided  by  law. The parties hereby irrevocably and unconditionally consent to
the jurisdiction of each such court or courts located within the Commonwealth of
Massachusetts  and to service of process by registered or certified mail, return
receipt requested, or by any other manner provided by applicable law, and hereby
irrevocably  and unconditionally waive any right to claim that any suit, action,
proceeding  or  litigation  so  commenced  has been commenced in an inconvenient
forum.

D.     This  Agreement  and  the  other agreements referenced herein contain the
entire  understanding  between  the  parties  hereto  and may not be modified or
amended except by a writing duly signed by the party against whom enforcement of
the  modification  or  amendment  is  sought.

E.     If  any  provision  of  this  Agreement  shall  be  held to be invalid or
unenforceable,  such  invalidity  or unenforceability shall not affect any other
provision  of  this  Agreement.

     [REMAINDER  OF  PAGE  INTENTIONALLY  LEFT  BLANK]

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

COMPANY:

By:  /s/ Kevin Ryan
Name:  Kevin  Ryan
Title:  President  and  CEO

PLACEMENT  AGENT:

By:  /s/ Raymond Dowd
Name:  Raymond  P.  Dowd
Title:  President/Compliance  Department

PLACEMENT AGENT:

/s/ Michael Roy Fugler
Michael Roy Fugler
Corporate Finance Department

INVESTOR:

Preston  Capital  Partners,  LLC

By:/s/ John Wykoff
Name:  John  Wykoff
Title:  A  Managing  Member

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