Document:

Exhibit 10.37

THIS  NOTE  HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE  "ACT"),  OR  APPLICABLE  STATE  SECURITIES  LAWS,  AND  MAY  NOT  BE SOLD,
TRANSFERRED,  PLEDGED  OR  HYPOTHECATED  IN  THE ABSENCE OF SUCH REGISTRATION OR
RECEIPT BY THE MAKER OF AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE REASONABLY
ACCEPTABLE  TO  THE  MAKER)  IN  THE  FORM,  SUBSTANCE  AND  SCOPE  REASONABLY
SATISFACTORY  TO THE MAKER THAT THIS NOTE MAY BE SOLD, TRANSFERRED, HYPOTHECATED
OR OTHERWISE DISPOSED OF, UNDER AN EXEMPTION FROM REGISTRATION UNDER THE ACT AND
SUCH  STATE  SECURITIES  LAWS.

                            THE AMANDA COMPANY, INC.
                           Convertible Promissory Note
                              due November 19, 2004

No.  CN-3                                                            $50,000.00
Dated:  November  19,  2001

     For  value  received,  THE  AMANDA  COMPANY,  INC., a Utah corporation (the
"Maker"),  hereby  promises  to  pay  to  the  order  of AMRO INTERNATIONAL S.A.
(together  with  its  successors,  representatives,  and  permitted assigns, the
"Holder"),  in  accordance  with  the  terms hereinafter provided, the principal
amount  of  fifty Thousand Dollars ($50,000.00), together with interest thereon.
All  payments  under  or  pursuant  to  this Note shall be made in United States
Dollars  in  immediately  available  funds  to  the Holder at the address of the
Holder  first set forth above or at such other place as the Holder may designate
from  time  to  time in writing to the Maker or by wire transfer of funds to the
Holder's  account, instructions for which are attached hereto as Exhibit A.  The
                                                                 ---------
outstanding  principal balance of this Note shall be due and payable on November
19,  2004 (the "Maturity Date") or at such earlier time as provided herein. This
                -------------
Note  may  not  be prepaid by the Maker.  At the option of the holder, the maker
may  redeem  the  note at 130% of its outstanding value from funds received from
any  future  private  equity  line  of  credit  agreements.

     Purchase  Agreement.  This Note has been executed and delivered pursuant to
the  Convertible  Note  Purchase  Agreement,  dated as of November 19, 2001 (the
"Purchase Agreement"), by and among the Maker and the Holder.  Capitalized terms
used and not otherwise defined herein shall have the meanings set forth for such
terms  in  the  Purchase  Agreement.
-Interest.  Beginning  on  the date hereof, the outstanding principal balance of
this  Note  shall  bear interest, in arrears, at a rate per annum equal to eight
percent  (8%), payable quarterly unless earlier converted or prepaid as provided
herein.  Interest  shall  be  computed  on the basis of a 360-day year of twelve
(12) 30-day months and shall accrue commencing on the issuance date of this Note
(the  "Issuance  Date").  The  interest  shall  be payable, at the option of the
Holder,  in cash or shares of the Maker's common stock, par value $.01 per share
(the  "Common  Stock");  provided,  that  if  the  Holder  elects to receive any
interest  in  Common  Stock,  the Maker shall issue to the Holder registered and
freely tradable shares of Common Stock.  The number of shares of Common Stock to
be  issued  as  payment  of  accrued  and unpaid interest shall be determined by
dividing  (a)  the  total  amount of accrued and unpaid interest to be converted
into  Common  Stock by the lesser of (i) $.02 and (ii) an amount equal to 70% of
the average Per Share Market Value (as defined in Section 3.2(b) hereof) for the
three (3) Trading Days (as defined in Section 4.13 hereof) having the lowest Per
Share  Market  Value  during  the thirty (30) Trading Days prior to the date the
interest  payment  is  due.  Furthermore,  upon  the  occurrence  of an Event of
Default (as defined in Section 2.1 hereof), then to the extent permitted by law,
the Maker will pay interest to the Holder, payable on demand, on the outstanding
principal  balance  of  the  Note  from  the  date of the Event of Default until
payment  in  full  at  the  rate  of  fifteen  percent  (15%)  per  annum.
Payment on Non-Business Days.  Whenever any payment to be made shall be due on a
Saturday,  Sunday  or  a public holiday under the laws of the State of New York,
such  payment  may  be  due  on  the  next succeeding business day and such next
succeeding  day  shall  be  included in the calculation of the amount of accrued
interest  payable  on  such  date.
-Transfer.  This  Note  may be transferred or sold, subject to the provisions of
Section  4.5  of  this  Note,  or  pledged, hypothecated or otherwise granted as
security  by  the  Holder.
-Replacement.  Upon  receipt of a duly executed, notarized and unsecured written
statement from the Holder with respect to the loss, theft or destruction of this
Note  (or  any  replacement  hereof), and without requiring an indemnity bond or
other security, or, in the case of a mutilation of this Note, upon surrender and
cancellation  of  such Note, the Maker shall issue a new Note, of like tenor and
amount,  in  lieu  of  such  lost,  stolen,  destroyed  or  mutilated  Note.

EVENTS  OF  DEFAULT;  REMEDIES
     -Events of Default.  The occurrence of any of the following events shall be
an  "Event  of  Default"  under  this  Note:
the  Maker shall fail to make the payment of any amount of principal outstanding
on  the  date  such  payment  is  due  hereunder;  or
the  Maker  shall  fail to make any payment of interest for a period of five (5)
days  after  the  date  such  interest  is  due;  or
the  failure  of  the  Registration  Statement  to  be declared effective by the
Securities  and Exchange Commission ("SEC") on or prior to the date which is one
hundred  twenty (120) days after the Filing Date (as defined in the Registration
Rights  Agreement);  or
the  suspension  from listing or the failure of the Common Stock to be listed on
the  OTC  Bulletin  Board  for a period of five (5) consecutive Trading Days; or
the  Maker's  notice  to the Holder, including by way of public announcement, at
any time, of its inability to comply (including for any of the reasons described
in  Section  3.8(a)  hereof) or its intention not to comply with proper requests
for  conversion  of  this  Note  into  shares  of  Common  Stock;  or
the  Maker  shall  fail  to  (i) timely delivery the shares of Common Stock upon
conversion  of the Note or any interest accrued and unpaid, (ii) timely file the
Registration  Statement  (as  defined  in  the Registration Rights Agreement) or
(iii)  make  the  payment of any fees and/or liquidated damages under this Note,
the  Purchase  Agreement  or the Registration Rights Agreement, which failure in
the  case  of  items (i) and (iii) of this Section 2.1(f) is not remedied within
seven  (7)  business  days  after  the  incurrence  thereof;  or
while the Registration Statement is required to be maintained effective pursuant
to  the  terms  of  the  Registration Rights Agreement, the effectiveness of the
Registration Statement lapses for any reason (including, without limitation, the
issuance  of  a  stop  order)  or  is  unavailable to the Holder for sale of the
Registrable  Securities  (as  defined  in  the Registration Rights Agreement) in
accordance  with  the terms of the Registration Rights Agreement, and such lapse
or  unavailability  continues for a period of ten (10) consecutive Trading Days,
provided  that  the  cause of such lapse or unavailability is not due to factors
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solely  within  the  control  of  Holder;  or
 -
default  shall  be  made  in  the performance or observance of (i) any covenant,
condition or agreement contained in this Note (other than as set forth in clause
(f)  of  this  Section 2.1) and such default is not fully cured within three (3)
business  days  after  the  occurrence  thereof  or  (ii) any material covenant,
condition  or  agreement contained in the Purchase Agreement or the Registration
Rights  Agreement  which  is not covered by any other provisions of this Section
2.1 and such default is not fully cured within seven (7) business days after the
occurrence  thereof;  or
any  material  representation  or  warranty  made  by the Maker herein or in the
Purchase Agreement or the Registration Rights Agreement shall prove to have been
false  or  incorrect  or  breached in a material respect on the date as of which
made;  or
the Maker shall issue any debt securities which are not subordinate to this Note
on  such terms as are acceptable to the Holders of a majority of the outstanding
principal  amount  of this Note and the other Notes purchased under the Purchase
Agreement;  or
the  consummation  of  any of the following transactions: (i) the consolidation,
merger  or  other  business  combination  of  the Maker with or into a person or
entity  (other  than  (A) pursuant to a migratory merger effected solely for the
purpose  of  changing  the  jurisdiction  of incorporation of the Maker or (B) a
consolidation,  merger  or  other  business  combination in which holders of the
Maker's  voting  power  immediately  prior to the transaction continue after the
transaction  to  hold, directly or indirectly, the voting power of the surviving
entity  or entities necessary to elect a majority of the members of the board of
directors  (or  their  equivalent if other than a corporation) of such entity or
entities),  except  if  in  the case of a consolidation merger or other business
combination  of  the  Maker, the Maker shall have given the Holder not less than
fifteen  (15)  business  days  prior  written  notice  thereof (the "Transaction
                                                                     -----------
Notice") and shall have furnished the Holder with such information regarding the
consolidation,  merger  or  other  business  combination  (including,  without
limitation,  the counterparties thereto) as the Holder may reasonably request in
order  for  the  Holder  to  determine if it will exercise its conversion rights
hereunder  prior  to  the  consummation  of  such consolidation, merger or other
business  combination;  (ii) the sale or transfer of all or substantially all of
the  Maker's assets; or (iii) the consummation of a purchase, tender or exchange
offer  made  to the holders of more than 30% of the outstanding shares of Common
Stock.
the  Maker  shall  (i)  default  in  any payment of any amount or amounts (x) of
principal  of  or  interest  on  any  Indebtedness  (other than the Indebtedness
hereunder)  the aggregate principal amount of which Indebtedness is in excess of
$75,000  or (ii) default in the observance or performance of any other agreement
or  condition  relating  to  any  Indebtedness or contained in any instrument or
agreement  evidencing,  securing  or  relating thereto, or any other event shall
occur  or  condition  exist,  the  effect  of  which  default  or other event or
condition  is  to  cause,  or  to permit the holder or holders or beneficiary or
beneficiaries  of  such  Indebtedness  to  cause  with  the  giving of notice if
required,  such  Indebtedness  to  become  due  prior to its stated maturity; or
the Maker shall (i) apply for or consent to the appointment of, or the taking of
possession  by, a receiver, custodian, trustee or liquidator of itself or of all
or  a substantial part of its property or assets, (ii) make a general assignment
for  the  benefit  of  its  creditors, (iii) commence a voluntary case under the
United  States  Bankruptcy  Code  (as  now  or hereafter in effect) or under the
comparable  laws of any jurisdiction (foreign or domestic), (iv) file a petition
seeking  to  take  advantage  of  any  bankruptcy,  insolvency,  moratorium,
reorganization  or  other  similar  law  affecting the enforcement of creditors'
rights  generally,  (v) acquiesce in writing to any petition filed against it in
an  involuntary case under United States Bankruptcy Code (as now or hereafter in
effect)  or under the comparable laws of any jurisdiction (foreign or domestic),
or (vi) take any action under the laws of any jurisdiction (foreign or domestic)
analogous  to  any  of  the  foregoing;  or
a  proceeding  or  case  shall be commenced in respect of the Maker, without its
application  or consent, in any court of competent jurisdiction, seeking (i) the
liquidation, reorganization, moratorium, dissolution, winding up, or composition
or  readjustment  of  its  debts,  (ii)  the appointment of a trustee, receiver,
custodian, liquidator or the like of it or of all or any substantial part of its
assets in connection with the liquidation or dissolution of the Company or (iii)
similar  relief  in  respect  of  it  under  any law providing for the relief of
debtors,  and  such  proceeding  or  case described in clause (i), (ii) or (iii)
shall  continue  undismissed,  or  unstayed and in effect, for a period of sixty
(60)  days or any order for relief shall be entered in an involuntary case under
United  States  Bankruptcy  Code  (as  now  or hereafter in effect) or under the
comparable  laws  of any jurisdiction (foreign or domestic) against the Maker or
action under the laws of any jurisdiction (foreign or domestic) analogous to any
of  the  foregoing  shall  be taken with respect to the Maker and shall continue
undismissed,  or  unstayed  and  in  effect  for  a  period  of sixty (60) days.
     -Remedies  Upon  An  Event  of  Default.  If an Event of Default shall have
occurred and shall be continuing, the Holder of this Note may at any time at its
option  (a)  declare  the entire unpaid principal balance of this Note, together
with all interest accrued hereon, due and payable, and thereupon, the same shall
be  accelerated and so due and payable, without presentment, demand, protest, or
notice, all of which are hereby expressly unconditionally and irrevocably waived
by the Maker; provided, however, that upon the occurrence of an Event of Default
described in (i) Sections 2.1 (l), (m) or (n), the outstanding principal balance
and  accrued  interest hereunder shall be automatically due and payable and (ii)
Sections 2.1 (c)-(k), demand the prepayment of this Note pursuant to Section 3.7
hereof,  (b)  demand that the principal amount of this Note then outstanding and
all accrued and unpaid interest thereon shall be converted into shares of Common
Stock  at a conversion price per share calculated pursuant to Section 3.1 hereof
assuming  that  the date that the Event of Default occurs is the Conversion Date
(as defined in Section 3.1 hereof), or (c) exercise or otherwise enforce any one
or more of the Holder's rights, powers, privileges, remedies and interests under
this  Note,  the  Purchase  Agreement,  the  Registration  Rights  Agreement  or
applicable law.  No course of delay on the part of the Holder shall operate as a
waiver  thereof  or  otherwise  prejudice  the  right  of the Holder.  No remedy
conferred  hereby  shall  be exclusive of any other remedy referred to herein or
now  or  hereafter  available  at  law,  in  equity,  by  statute  or otherwise.

-CONVERSION;  ANTIDILUTION;  PREPAYMENT
     -Conversion  Option.  At  any time on or after November 19, 2001, this Note
shall  be  convertible  (in  whole or in part), at the option of the Holder (the
"Conversion  Option"),  into such number of fully paid and non-assessable shares
of  Common  Stock  (the "Conversion Rate") as is determined by dividing (x) that
portion  of  the  outstanding principal balance plus accrued and unpaid interest
under  the  Note  as  of  such date that the Holder elects to convert by (y) the
Conversion  Price  (as  hereinafter defined) then in effect on the date on which
the  Holder  faxes  a  notice  of  conversion  (the  "Conversion  Notice"), duly
executed,  to the Maker (facsimile number (949) 859-4380, Attn.: Chief Executive
Officer)  (the  "Conversion Date"), provided, however, that the Conversion Price
shall  be  subject  to  adjustment  as  described  in  Section  3.6  below.
Conversion  Price.
     (a)     The  term "Conversion Price" shall mean the lesser of (A) $.02 (the
                        ----------------
"Fixed  Conversion  Price")  and (B) an amount equal to seventy percent (70%) of
 ------------------------
the  average  Per  Share  Market Value for the three (3) Trading Days having the
 -
lowest  Per  Share Market Value during the thirty (30) Trading Days prior to the
 -
Conversion  Date,  except  that  if  during any period (a "Black-out Period"), a
                                                           ----------------
Holder is unable to trade any Common Stock issued or issuable upon conversion of
the  Notes  immediately due to the postponement of filing or delay or suspension
of  effectiveness of a registration statement or because the Maker has otherwise
informed  such Holder that an existing prospectus cannot be used at that time in
the sale or transfer of such Common Stock, such Holder shall have the option but
not the obligation on any Conversion Date within ten (10) Trading Days following
the  expiration of the Black-out Period of using the Conversion Price applicable
on  such  Conversion  Date  or any Conversion Price selected by such Holder that
would  have  been  applicable  had such Conversion Date been at any earlier time
during  the  Black-out  Period  or  within the ten (10) Trading Days thereafter.

     (b)     The  term "Per Share Market Value" means on any particular date (a)
                        ----------------------
the  closing  bid  price  of  the  Common Stock on such date on the OTC Bulletin
Board,  The  Nasdaq  Small-Cap  Market,  the  Nasdaq  National  Market  or other
registered  national  stock exchange on which the Common Stock is then listed or
if  there  is  no  such  price  on such date, then the closing bid price on such
exchange  or quotation system on the date nearest preceding such date, or (b) if
the  Common  Stock is not listed then on The Nasdaq Small-Cap Market, the Nasdaq
National Market or any registered national stock exchange, the closing bid price
for  a  share  of  Common  Stock  in the over-the-counter market, as reported by
NASDAQ  or in the National Quotation Bureau Incorporated or similar organization
or  agency  succeeding  to  its  functions  of reporting prices) at the close of
business  on  such date, then the average of the three (3) lowest closing bid or
closing  prices,  if  applicable,  of  the  "Pink Sheet" quotes for the relevant
                                             ----------
thirty  (30)  day  trading conversion period, as determined in good faith by the
Holder,  or  (d) if the Common Stock is not then publicly traded the fair market
value  of  a share of Common Stock as determined by an Independent Appraiser (as
defined  in  Section  4.13  hereof)  selected  in good faith by the Holders of a
majority  in  interest  of  the  Notes; provided, however, that the Maker, after
                                        --------  -------
receipt of the determination by such Independent Appraiser, shall have the right
to  select  an  additional Independent Appraiser, in which case, the fair market
value  shall  be  equal  to  the  average  of  the  determinations  by each such
Independent  Appraiser; and provided, further that all determinations of the Per
                            --------  -------
Share  Market  Value  shall  be  appropriately adjusted for any stock dividends,
stock  splits  or  other  similar  transactions  during  such  period.  The
determination  of  fair  market value by an Independent Appraiser shall be based
upon  the fair market value of the Issuer determined on a going concern basis as
between  a  willing  buyer  and  a  willing  seller  and taking into account all
relevant  factors  determinative of value, and shall be final and binding on all
parties.  In determining the fair market value of any shares of Common Stock, no
consideration shall be given to any restrictions on transfer of the Common Stock
imposed by agreement or by federal or state securities laws, or to the existence
or  absence  of,  or  any  limitations  on,  voting  rights.
     Mechanics  of  Conversion.
Not  later  than five (5) Trading Days after any Conversion Date, the Maker will
deliver  to  the  applicable  Holder  by  express  courier  (A) a certificate or
certificates which shall be free of restrictive legends and trading restrictions
(other  than  those  required  by  Section  5.1  of  the  Purchase  Agreement)
                                   ------------
representing  the  number  of  shares  of  Common  Stock being acquired upon the
conversion of the Notes and (B) one or more certificates representing the amount
of  Notes  not  converted.  If  in  the  case  of  any  Conversion  Notice  such
certificate  or  certificates  are  not  delivered  to  or  as  directed  by the
applicable  Holder  by  the  third  Trading  Day  after the Conversion Date (the
"Delivery Date"), the Holder shall be entitled by written notice to the Maker at
      --------
any  time  on  or  before  its  receipt  of  such  certificate  or  certificates
thereafter,  to  rescind  such  conversion,  in  which  event  the  Maker  shall
immediately  return  the  certificates  representing  the  Notes  tendered  for
conversion,  whereupon  the Maker and the Holder shall each be restored to their
respective  positions  immediately  prior  to  the  delivery  of  such notice of
revocation,  except  that any amounts described in Sections 3.3(b) and (c) shall
be  payable  through  the  date  notice  of  rescission  is  given to the Maker.
The Maker understands that a delay in the delivery of the shares of Common Stock
upon  conversion  of  the Notes and failure to deliver certificates representing
the  unconverted  shares  of  the Notes beyond the Delivery Date could result in
economic  loss  to the Holder.  If the Maker fails to deliver to the Holder such
certificate  or  certificates pursuant to this Section hereunder by the Delivery
Date, the Maker shall pay to such Holder, in cash, an amount per Trading Day for
each  Trading  Day until such certificates are delivered, together with interest
on  such  amount  at a rate of 10% per annum, accruing until such amount and any
accrued  interest  thereon  is  paid  in  full, equal to (i) 1% of the aggregate
principal  amount  of the Notes requested to be converted for the first five (5)
Trading  Days  after  the  Delivery  Date and (ii) 2% of the aggregate principal
amount  of  the  Notes requested to be converted for each Trading Day thereafter
(which  amounts  shall  be  paid  as  liquidated  damages and not as a penalty).
Nothing  herein  shall  limit  a Holder's right to pursue actual damages for the
Maker's failure to deliver certificates representing shares of Common Stock upon
conversion  within  the  period specified herein (including, without limitation,
damages  relating  to  any  purchase of shares of Common Stock by such Holder to
make  delivery  on  a  sale  effected  in anticipation of receiving certificates
representing  shares  of  Common Stock upon conversion, such damages to be in an
amount  equal  to (A) the aggregate amount paid by such Holder for the shares of
Common  Stock  so  purchased  minus (B) the aggregate amount of net proceeds, if
any,  received by such Holder from the sale of the shares of Common Stock issued
by  the Maker pursuant to such conversion), and such Holder shall have the right
to  pursue  all remedies available to it at law or in equity (including, without
limitation,  a  decree  of  specific  performance  and/or  injunctive  relief).
Notwithstanding  anything  to the contrary contained herein, the Holder shall be
entitled  to  withdraw  a  Conversion Notice, and upon such withdrawal the Maker
shall only be obligated to pay the liquidated damages accrued in accordance with
this  Section  3.3(b)  through  the  date  the  Conversion  Notice is withdrawn.
In  addition  to any other rights available to the Holder, if the Maker fails to
deliver  to  the  Holder  such  certificate  or certificates pursuant to Section
3.3(a)  by the Delivery Date and if after the Delivery Date the Holder purchases
(in  an  open market transaction or otherwise) shares of Common Stock to deliver
in  satisfaction  of  a  sale  by such Holder of the Conversion Shares which the
Holder  anticipated  receiving upon such conversion (a "Buy-In"), then the Maker
                                                        ------
shall  pay  in  cash  to the Holder (in addition to any remedies available to or
elected by the Holder) the amount by which (A) the Holder's total purchase price
(including  brokerage  commissions,  if  any)  for the shares of Common Stock so
purchased exceeds (B) the aggregate principal amount of the Notes for which such
conversion  was  not timely honored, together with interest thereon at a rate of
15%  per  annum,  accruing until such amount and any accrued interest thereon is
paid  in  full  (which  amount  shall be paid as liquidated damages and not as a
penalty).  For  example, if the Holder purchases shares of Common Stock having a
total  purchase  price of $11,000 to cover a Buy-In with respect to an attempted
conversion  of  $10,000 aggregate principal amount of the Notes, the Maker shall
be  required  to pay the Holder $1,000, plus interest.  The Holder shall provide
the Maker written notice indicating the amounts payable to the Holder in respect
of  the  Buy-In.
     Ownership  Cap.  Notwithstanding  anything  to  the  contrary  set forth in
Section  3  of this Note, at no time may a holder of this Note convert this Note
if the number of shares of Common Stock to be issued pursuant to such conversion
would  exceed,  when  aggregated  with all other shares of Common Stock owned by
such  holder  at  such  time,  the  number of shares of Common Stock which would
result  in  such  holder  owning  more  than  9.99%  of  all of the Common Stock
outstanding  at  such  time;  provided, however, that upon a holder of this Note
providing  the Company with 75 days notice (pursuant to Section 4.1 hereof) (the
"Waiver  Notice")  that  such  holder  would like to waive this Section 3.4 with
regard  to  any  or  all shares of Common Stock issuable upon conversion of this
Note,  this  Section  3.4  will be of no force or effect with regard to all or a
portion  of  the  Note  referenced  in  the  Waiver  Notice.
Intentionally  Omitted.
-Adjustment  of  Conversion  Price.
The  Fixed  Conversion Price shall be subject to adjustment from time to time as
follows:
Adjustments  for  Stock Splits and Combinations.  If the Maker shall at any time
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or  from  time  to  time  after  the  Issuance Date, effect a stock split of the
outstanding  Common  Stock,  the  applicable  Fixed  Conversion  Price in effect
immediately prior to the stock split shall be proportionately decreased.  If the
Maker  shall  at  any time or from time to time after the Issuance Date, combine
the outstanding shares of Common Stock, the applicable Fixed Conversion Price in
effect  immediately prior to the combination shall be proportionately increased.
Any  adjustments under this Section 3.6(a)(i) shall be effective at the close of
business  on  the  date  the  stock  split  or  combination  occurs.
       (ii)   Adjustments for Certain Dividends and Distributions.  If the Maker
              ---------------------------------------------------
shall at any time or from time to time after the Issuance Date, make or issue or
set  a  record date for the determination of holders of Common Stock entitled to
receive  a  dividend  or  other  distribution payable in shares of Common Stock,
then,  and  in  each  event,  the  applicable  Fixed  Conversion Price in effect
immediately  prior  to  such  event  shall  be  decreased as of the time of such
issuance  or,  in  the  event  such record date shall have been fixed, as of the
close  of  business  on  such  record  date,  by multiplying, as applicable, the
applicable  Fixed  Conversion  Price  then  in  effect  by  a  fraction:
     (1)     the  numerator  of  which  shall  be  the total number of shares of
Common  Stock  issued  and  outstanding  immediately  prior  to the time of such
issuance  or  the  close  of  business  on  such  record  date;  and
     (2)     the  denominator  of  which  shall be the total number of shares of
Common  Stock  issued  and  outstanding  immediately  prior  to the time of such
issuance  or the close of business on such record date plus the number of shares
of  Common  Stock  issuable  in  payment  of  such  dividend  or  distribution.
       (iii)     Adjustment for Other Dividends and Distributions.  If the Maker
               --------------------------------------------------
shall at any time or from time to time after the Issuance Date, make or issue or
set  a  record date for the determination of holders of Common Stock entitled to
receive  a dividend or other distribution payable in other than shares of Common
Stock,  then, and in each event, an appropriate revision to the applicable Fixed
Conversion  Price  shall  be made and provision shall be made (by adjustments of
the  Conversion  Price  or  otherwise)  so  that  the holders of the Notes shall
receive  upon conversions thereof, in addition to the number of shares of Common
Stock receivable thereon, the number of securities of the Maker which they would
have  received  had  their Notes been converted into Common Stock on the date of
such  event and had thereafter, during the period from the date of such event to
and  including  the Conversion Date, retained such securities (together with any
distributions  payable  thereon  during  such period), giving application to all
adjustments  called  for  during such period under this Section 3.6(a)(iii) with
respect  to  the  rights  of  the  holders  of  the  Notes.
       (iv)     Adjustments for Reclassification,  Exchange or Substitution.  If
               -------------------------------------------------------------
the  Common Stock issuable upon conversion of the Notes at any time or from time
to time after the Issuance Date shall be changed to the same or different number
of  shares  of  any  class  or  classes  of  stock, whether by reclassification,
exchange,  substitution  or  otherwise  (other  than  by way of a stock split or
combination  of  shares  or  stock dividends provided for in Sections 3.6(a)(i),
(ii)  and  (iii),  or a reorganization, merger, consolidation, or sale of assets
provided  for  in  Section  3.6(a)(v)),  then, and in each event, an appropriate
revision  to  the  Fixed  Conversion Price shall be made and provisions shall be
made (by adjustments of the Conversion Price or otherwise) so that the holder of
each  of the Notes shall have the right thereafter to convert such Note into the
kind  and  amount  of  shares  of  stock  and  other  securities receivable upon
reclassification,  exchange,  substitution  or  other  change, by holders of the
number  of shares of Common Stock into which such Note might have been converted
immediately  prior  to  such  reclassification,  exchange, substitution or other
change,  all  subject  to  further  adjustment  as  provided  herein.
       (v)     Adjustments for Reorganization, Merger, Consolidation or Sales of
             -------------------------------------------------------------------
Assets.  If at any time or from time to time after the Issuance Date there shall
-----
be  a capital reorganization of the Maker (other than by way of a stock split or
combination  of  shares  or  stock  dividends  or  distributions provided for in
Section  3.6(a)(i),  (ii)  and  (iii),  or  a  reclassification,  exchange  or
substitution  of  shares  provided  for  in  Section 3.6(a)(iv)), or a merger or
consolidation  of the Maker with or into another corporation, or the sale of all
or substantially all of the Maker's properties or assets to any other person (an
"Organic Change"), then as a part of such Organic Change an appropriate revision
 --------------
to  the  Conversion  Price  shall  be  made  and  provision  shall  be  made (by
adjustments  of  the  Conversion  Price or otherwise) so that the holder of each
Note  shall  have  the  right  thereafter to convert such Note into the kind and
amount  of  shares of stock and other securities or property of the Maker or any
successor  corporation  resulting  from  Organic  Change.  In  any  such  case,
appropriate  adjustment  shall  be  made in the application of the provisions of
this  Section  3.6(a)(v)  with respect to the rights of the holders of the Notes
after  the  Organic  Change  to  the  end  that  the  provisions of this Section
3.6(a)(v)  (including  any adjustment in the applicable Conversion Price then in
effect  and  the  number of shares of stock or other securities deliverable upon
conversion  of  the  Notes)  shall  be  applied after that event in as nearly an
equivalent  manner  as  may  be  practicable.
       (vi)     Adjustments for Issuance of Additional Shares of Common Stock.
           ---------------------------------------------------------------
If the Maker, at any time after the Issuance Date,  shall issue  any additional
shares of Common  Stock  (otherwise  than  as  provided  in  the foregoing
subsections (i) through (v) of this Section 3.6) (the "Additional Shares of
Common Stock"), at a price  per  share less than the applicable Fixed Conversion
Price then in effect or without consideration, then the applicable Fixed
Conversion Price  upon  each such  issuance  shall be  adjusted to that price
(rounded to the nearest cent) determined  by  multiplying the applicable Fixed
Conversion Price then in effect by  a  fraction:
     (1)     the  numerator of which shall be equal to the sum of (A) the number
of  shares of Common Stock outstanding immediately prior to the issuance of such
Additional  Shares of Common Stock plus (B) the number of shares of Common Stock
                                   ----
(rounded  to  the nearest whole share) which the aggregate consideration for the
total  number of such Additional Shares of Common Stock so issued would purchase
at  a  price  per  share  equal to the applicable Fixed Conversion Price then in
effect,  and
     (2)     the denominator of which shall be  equal to the number of shares of
Common  Stock  outstanding  immediately  after  the  issuance of such Additional
Shares  of Common Stock.  The provisions of this subsection (vi) shall not apply
under  any  of  the  circumstances  for  which  an  adjustment  is  provided  in
subsections (i), (ii), (iii), (iv) or (v) of this Section 3.6(a).  No adjustment
of  the  applicable  Fixed  Conversion Price shall be made under this subsection
(a)(iv)  upon  the  issuance  of any Additional Shares of Common Stock which are
issued  pursuant  to  any Common Stock Equivalent (as defined below) if upon the
issuance of such Common Stock Equivalent (x) any adjustment shall have been made
pursuant  to  subsection  (vii)  of this Section 3.6(a) or (y) no adjustment was
required  pursuant to subsection (vii) of this Section 3.6(a).  No adjustment of
the  applicable  Fixed Conversion Price shall be made under this subsection (vi)
in  an amount less than $.005 per share, but any such lesser adjustment shall be
carried  forward  and  shall  be  made  at  the  time and together with the next
subsequent  adjustment,  if  any, which together with any adjustments so carried
forward  shall  amount  to  $.005  per  share  or  more;  provided that upon any
                                                          --------
adjustment  of the applicable Fixed Conversion Price as a result of any dividend
or  distribution  payable  in Common Stock or Convertible Securities (as defined
below)  or the reclassification, subdivision or combination of Common Stock into
a  greater  or smaller number of shares, the foregoing figure of $.005 per share
(or  such  figure  as  last adjusted) shall be adjusted (to the nearest one-half
cent)  in proportion to the adjustment in the applicable Fixed Conversion Price.
       (vii)     Issuanceof Common Stock Equivalents.  If the Maker, at any time
                -------------------------------------
after  the  Issuance  Date,  shall  issue  any  securities  convertible  into or
exchangeable  for,  directly  or  indirectly,  Common  Stock  ("Convertible
                                                                -----------
Securities"),  other  than  this  Note,  or any rights or warrants or options to
purchase  any  such  Common  Stock or Convertible Securities, shall be issued or
sold  (collectively, the "Common Stock Equivalents") and the price per share for
                          ------------------------
which  Additional  Shares of Common Stock may be issuable thereafter pursuant to
such  Common Stock Equivalent shall be less than the applicable Fixed Conversion
Price  then  in  effect,  or  if,  after  any  such  issuance  of  Common  Stock
Equivalents, the price per share for which Additional Shares of Common Stock may
be  issuable  thereafter  is  amended  or adjusted, and such price as so amended
shall  be  less than the applicable Fixed Conversion Price in effect at the time
of  such  amendment,  then  the applicable Fixed Conversion Price upon each such
issuance  or  amendment  shall  be adjusted as provided in the first sentence of
subsection  (vi) of this Section 3.6(a) on the basis that (1) the maximum number
of  Additional Shares of Common Stock issuable pursuant to all such Common Stock
Equivalents  shall  be  deemed  to  have been issued (whether or not such Common
Stock  Equivalents are actually then exercisable, convertible or exchangeable in
whole  or  in  part)  as of the earlier of (A) the date on which the Maker shall
enter  into a firm contract for the issuance of such Common Stock Equivalent, or
(B)  the  date  of  actual issuance of such Common Stock Equivalent, and (2) the
aggregate  consideration  for such maximum number of Additional Shares of Common
Stock  shall be deemed to be the minimum consideration received or receivable by
the Maker for the issuance of such Additional Shares of Common Stock pursuant to
such  Common Stock Equivalent.  No adjustment of the applicable Fixed Conversion
Price  shall  be  made  under  this  subsection  (vii)  upon the issuance of any
Convertible Security which is issued pursuant to the exercise of any warrants or
other  subscription  or  purchase  rights  therefor,  if  any  adjustment  shall
previously  have been made to the exercise price of such warrants then in effect
upon  the  issuance of such warrants or other rights pursuant to this subsection
(vii).  If  no  adjustment is required under this subsection (vii) upon issuance
of  any  Common  Stock  Equivalent  or  once  an  adjustment  is made under this
subsection  (vii) based upon the Per Share Market Value in effect on the date of
such adjustment, no further adjustment shall be made under this subsection (vii)
based  solely  upon  a  change  in  the  Per Share Market Value after such date.
(viii)     Consideration  for  Stock.  In case any shares of Common Stock or any
           -------------------------
Common  Stock  Equivalents  shall  be  issued  or  sold:
     (1)     in  connection  with any merger or consolidation in which the Maker
is  the  surviving  corporation (other than any consolidation or merger in which
the  previously outstanding shares of Common Stock of the Maker shall be changed
to  or  exchanged for the stock or other securities of another corporation), the
amount  of  consideration  therefore  shall  be, deemed to be the fair value, as
determined  reasonably and in good faith by the Board of Directors of the Maker,
of  such  portion  of the assets and business of the nonsurviving corporation as
such  Board  may  determine  to  be attributable to such shares of Common Stock,
Convertible  Securities,  rights  or warrants or options, as the case may be; or
(2)     in  the  event  of any consolidation or merger of the Maker in which the
Maker  is  not  the surviving corporation or in which the previously outstanding
shares  of  Common Stock of the Maker shall be changed into or exchanged for the
stock or other securities of another corporation, or in the event of any sale of
all  or  substantially  all  of  the  assets  of  the  Maker  for stock or other
securities of any corporation, the Maker shall be deemed to have issued a number
of  shares  of its Common Stock for stock or securities or other property of the
other  corporation  computed  on the basis of the actual exchange ratio on which
the transaction was predicated, and for a consideration equal to the fair market
value  on  the date of such transaction of all such stock or securities or other
property  of  the  other  corporation.  If  any  such  calculation  results  in
adjustment  of the applicable Fixed Conversion Price, or the number of shares of
Common  Stock  issuable  upon  conversion of the Notes, the determination of the
applicable  Fixed  Conversion  Price  or  the  number  of shares of Common Stock
issuable  upon  conversion  of  the  Notes  immediately  prior  to  such merger,
consolidation  or  sale, shall be made after giving effect to such adjustment of
the  number  of  shares  of  Common Stock issuable upon conversion of the Notes.
     (b)     Record Date.  In case the Maker shall take record of the holders of
             -----------
its  Common Stock for the purpose of entitling them to subscribe for or purchase
Common  Stock  or  Convertible Securities, then the date of the issue or sale of
the  shares  of  Common  Stock  shall  be  deemed  to  be  such  record  date.
     (c)     Certain  Issues  Excepted.  Anything  herein  to  the contrary
                  -------------------------
notwithstanding,  the  Maker shall not be required to make any adjustment of the
number  of shares of Common Stock issuable upon conversion of the Notes upon the
grant  after  the  Issuance Date of, or the exercise after the Issuance Date of,
options or warrants or rights to purchase stock under the Maker's existing stock
option  plan  or  options  or  warrants  or  rights  to purchase stock issued to
officers  and/or  directors  of  the  Company.

      (d)     No  Impairment.  The  Maker  shall  not,  by  amendment of its
                  --------------
Certificate  of Incorporation or through any reorganization, transfer of assets,
consolidation,  merger,  dissolution,  issue  or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the  terms  to  be observed or performed hereunder by the Maker, but will at all
times  in  good  faith, assist in the carrying out of all the provisions of this
Section  3.6  and  in  the  taking  of  all  such  action as may be necessary or
appropriate  in  order  to  protect  the Conversion Rights of the Holder against
impairment.  In  the event a Holder shall elect to convert any Notes as provided
herein,  the  Maker cannot refuse conversion based on any claim that such Holder
or  any  one  associated  or affiliated with such Holder has been engaged in any
violation  of  law, violation of an agreement to which such Holder is a party or
for  any  reason  whatsoever,  unless,  an  injunction  from a court, on notice,
restraining  and or adjoining conversion of all or of said Notes shall have been
issued  and  the  Maker posts a surety bond for the benefit of such Holder in an
amount  equal  to  130%  of  the  amount  of the Notes the Holder has elected to
convert  plus  the  amount  of the Notes outstanding, which bond shall remain in
effect  until  the  completion  of arbitration/litigation of the dispute and the
proceeds  of  which  shall  be  payable  to  such Holder in the event it obtains
judgment.

      (e)  Certificates as to Adjustments. Upon occurrence of each adjustment or
            --------------------------------
readjustment  of  the Fixed Conversion Price or number of shares of Common Stock
issuable upon conversion of this Note pursuant to this Section 3.6, the Maker at
its expense shall promptly compute such adjustment or readjustment in accordance
with the terms hereof and furnish to the Holder a certificate setting forth such
adjustment  and  readjustment,  showing  in  detail  the  facts  upon which such
adjustment  or  readjustment is based.  The Maker shall, upon written request of
the  Holder, at any time, furnish or cause to be furnished to such holder a like
certificate  setting  forth  such  adjustments and readjustments, the applicable
Fixed Conversion Price in effect at the time, and the number of shares of Common
Stock  and the amount, if any, of other securities or property which at the time
would  be  received  upon  the  conversion  of  this  Note.  Notwithstanding the
foregoing, the Maker shall not be obligated to deliver a certificate unless such
certificate  would  reflect an increase or decrease of at least one percent (1%)
of  such  adjusted  amount.
      (f)   Issue  Taxes. The Maker shall pay any and all issue and other taxes,
            ------------
excluding  federal,  state or local income taxes, that may be payable in respect
of  any  issue  or delivery of shares of Common Stock on conversion of this Note
pursuant  thereto;  provided,  however, that the Maker shall not be obligated to
                    --------   -------
pay  any  transfer  taxes resulting from any transfer requested by any holder in
connection  with  any  such  conversion.
     (g)     Fractional Shares.  No fractional shares of Common Stock shall be
             -----------------
issued upon conversion of this Note. In lieu of any fractional shares to which
the Holder would otherwise be  entitled, the  Maker  shall pay cash equal to the
product  of  such  fraction  multiplied  by  the average of the Per Share Market
Values of the Common Stock for the five (5) consecutive Trading Days immediately
preceding  the  Conversion  Date.
      (h)    Reservation of Common Stock. The Maker shall at all times when this
            ------------------------------
Note  shall be outstanding, reserve and keep available out of its authorized but
unissued  Common  Stock, such number of share of Common Stock as shall from time
to  time  be  sufficient  to effect the conversion of this Note and all interest
accrued  thereon; provided that the number of shares of Common Stock so reserved
                  --------
shall  at  no time be less than 150% of the number of shares of Common Stock for
which  this  Note  and all interest accrued thereon are at any time convertible.
The  Maker  shall,  from  time  to  time in accordance with the Delaware General
Corporation  Law, as amended, increase the authorized number of shares of Common
Stock  if  at  any  time  the  unissued number of authorized shares shall not be
sufficient  to  satisfy  the  Maker's  obligations  under  this  Section 3.6(h).
     (i)     -Regulatory  Compliance.  If  any  shares  of  Common  Stock  to be
              ----------------------
reserved  for  the  purpose  of  conversion of this Note or any interest accrued
thereon  require  registration  or  listing with or approval of any governmental
authority,  stock  exchange  or other regulatory body under any federal or state
law  or  regulation  or  otherwise  before  such shares may be validly issued or
delivered  upon  conversion,  the  Maker shall, at its sole cost and expense, in
good  faith  and  as  expeditiously  as  possible,  endeavor  to  secure  such
registration,  listing  or  approval,  as  the  case  may  be.

     Section  3.7     Prepayment.
     (a)     Prepayment  Upon  an Event of Default.  Notwithstanding anything to
             -------------------------------------
the  contrary  contained  herein,  upon  the  occurrence  of an Event of Default
described  in  Sections  2.1(c)-(k)  hereof, the Holder shall have the right, at
such  Holder's  option,  to require the Maker to prepay all or a portion of this
Note  at  a price equal to Prepayment Price (as defined in Section 3.7(c) below)
applicable  at  the  time of such request.  Nothing in this Section 3.7(a) shall
limit  the  Holder's  rights  under  Section  2.2  hereof.
     (b)     Prepayment Option Upon Major Transaction.  In addition to all other
rights  of  the  holders  of  the  Notes contained herein, simultaneous with the
occurrence  of  a Major Transaction (as defined below), each holder of the Notes
shall  have  the  right, at such holder's option, to require the Maker to prepay
all  or  a portion of such holder's Notes at a price equal to the greater of (i)
115%  of the aggregate principal amount of the Notes and (ii) the product of (A)
the  Conversion  Rate  and (B) the Per Share Market Value of the Common Stock on
the Trading Day immediately preceding such Major Transaction ("Major Transaction
Prepayment  Price").
     (c)     Prepayment Option Upon Triggering Event.  In addition  to all other
rights  of  the  holders of the Notes contained herein, after a Triggering Event
(as  defined  below),  each  holder  of  the Notes shall have the right, at such
holder's  option,  to  require  the  Maker  to  prepay  all or a portion of such
holder's  Notes  at  a  price  equal to the greater of (i) 130% of the aggregate
principal amount of the Notes and (ii) the product of (A) the Conversion Rate at
such  time  and (B) the Per Share Market Value of the Common Stock calculated as
of the date immediately preceding such Triggering Event on which the exchange or
market on which the Common Stock is traded is open ("Triggering Event Prepayment
Price"  and,  collectively  with  "Major  Transaction  Prepayment  Price,"  the
"Prepayment  Price").
     (d)     "Major Transaction." A "Major  Transaction" shall be deemed to have
occurred  at  such  time  as  any  of  the  following  events:
       (i)     the  consolidation, merger or  other  business combination of the
Maker  with  or  into  another Person (as defined in Section 4.13 hereof) (other
than  (A)  pursuant  to  a  migratory  merger effected solely for the purpose of
changing  the jurisdiction of incorporation of the Maker or (B) a consolidation,
merger  or  other  business  combination  in which holders of the Maker's voting
power  immediately  prior  to  the transaction continue after the transaction to
hold,  directly  or  indirectly,  the  voting  power  of the surviving entity or
entities  necessary to elect a majority of the members of the board of directors
(or  their  equivalent if other than a corporation) of such entity or entities).
       (ii)   the sale or transfer of all or substantially all of the Maker's
assets; or
       (iii)  consummation of a  purchase, tender or  exchange offer made to the
holders  of  more  than  30%  of  the  outstanding  shares  of  Common  Stock.
     (e)     "Triggering  Event."  A  "Triggering Event" shall be deemed to have
occurred  at  such  time  as  any  of  the  following  events:
       (i)    the failure of the Registration Statement to be declared effective
by  the  SEC  on  or prior to the date which is 270 days after the Closing Date,
provided  that  the  Maker  has  failed to file the Registration Statement on or
before  the  Filing  Date  (as  defined in the Registration Rights Agreement) or
respond  to  any  and each of the SEC's comments within fifteen (15) days of the
Maker's  receipt  of  each  of  the  SEC's  comments;
       (ii)    while the Registration Statement is required to be maintained
effective pursuant to the terms of the Registration Rights Agreement, the
effectiveness of the Registration Statement lapses for any reason (including,
 without limitation, the  issuance  of a stop order) or is unavailable to the
holder of the Notes for sale of the Registrable Securities (as defined in the
Registration Rights Agreement) in accordance with the terms of the Registration
 Rights Agreement, and such lapse or unavailability continues for a period of
 ten (10) consecutive Trading  Days, provided that the cause of such lapse or
 unavailability is due to factors within the control of the Maker and not due to
 factors solely within the control  of  such  holder  of  the  Notes;
       (iii)  the suspension from trading or the failure of the Common Stock to
be traded on the OTC  Bulletin  Board for a period of five (5) consecutive days,
provided,  that  such  suspension from listing or failure to be listed is due to
factors  within the control of the Maker, including, but not limited to, failure
to  timely file all reports required to be filed with the SEC or to meet the net
tangible  assets  requirements  for  listing,  if  any;
       (iv)   the Maker's notice to any holder of the Notes, including by way of
public  announcement, at any time, of its inability to comply (including for any
of  the  reasons  described  in Section 3.8) or its intention not to comply with
proper  requests for conversion of any of the Notes into shares of Common Stock;
        (v)   the Maker's failure to comply with a Conversion Notice tendered
within ten (10) business days after the receipt by the Maker of the Conversion
Notice and  the  certificates  representing  the  Notes;  or
       (vi)  the Maker breaches any representation, warranty, covenant or other
term or condition of the Purchase Agreement, the Registration Rights Agreement
or any other agreement, document, certificate or  other instrument  delivered in
connection  with  the  transactions  contemplated  thereby  or  hereby.
     (f)     Mechanics  of Prepayment at Option of Buyer Upon Major Transaction.
No  sooner  than  fifteen  (15)  days  nor later than ten (10) days prior to the
consummation of a Major Transaction, but not prior to the public announcement of
such  Major  Transaction,  the  Maker  shall  deliver written notice thereof via
facsimile  and  overnight courier ("Notice of Major Transaction") to each holder
of  the  Notes.  At any time after receipt of a Notice of Major Transaction (or,
in  the  event  a Notice of Major Transaction is not delivered at least ten (10)
days  prior  to a Major Transaction, at any time within ten (10) days prior to a
Major  Transaction),  any  holder  of the Notes then outstanding may require the
Maker  to  prepay, effective immediately prior to the consummation of such Major
Transaction,  all  of  the holder's Notes then outstanding by delivering written
notice  thereof  via  facsimile  and overnight courier ("Notice of Prepayment at
Option  of  Buyer  Upon  Major  Transaction")  to  the  Maker,  which  Notice of
Prepayment  at  Option  of  Buyer  Upon Major Transaction shall indicate (i) the
number  of  Notes that such holder is electing to prepay and (ii) the applicable
Major  Transaction  Prepayment  Price,  as calculated pursuant to Section 3.7(b)
above.
     (g)     Mechanics of Prepayment at  Option of  Buyer Upon Triggering Event.
Within  one  (1) day after the occurrence of a Triggering Event, the Maker shall
deliver  written  notice thereof via facsimile and overnight courier ("Notice of
Triggering  Event")  to each holder of the Notes.  At any time after the earlier
of  a  holder's receipt of a Notice of Triggering Event and such holder becoming
aware  of  a  Triggering  Event,  any  holder  of the Notes then outstanding may
require  the  Maker  to  prepay  all  of  the Notes by delivering written notice
thereof  via facsimile and overnight courier ("Notice of Prepayment at Option of
Buyer Upon Triggering Event") to the Maker, which Notice of Prepayment at Option
of  Buyer Upon Triggering Event shall indicate (i) the number of Notes that such
holder is electing to prepay and (ii) the applicable Triggering Event Prepayment
Price,  as  calculated  pursuant  to  Section  3.7(c)  above.
     (h)   Payment of Prepayment Price.  Upon the Maker's receipt of a Notice(s)
of Prepayment at Option of Buyer Upon Triggering Event or a Notice(s) of
Prepayment at Option of Buyer Upon Major Transaction from any holder of the
Notes, the Maker  shall  immediately  notify  each  holder of the Notes by
facsimile of the Maker's receipt of such  Notice(s)  of  Prepayment  at  Option
of Buyer Upon Triggering Event or Notice(s) of Prepayment at Option of Buyer
Upon Major Transaction and each holder which has sent such a notice shall
promptly submit to the Maker such holder's certificates representing the Notes
which such holder has  elected to have prepaid.  The Maker shall deliver the
applicable Triggering Event  Prepayment Price, in the case of a prepayment
pursuant to Section 3.7(g), to  such  holder  within  five  (5) business days
after the Maker's receipt of a Notice  of  Prepayment at Option of Buyer Upon
Triggering Event and, in the case of  a  prepayment pursuant to  Section 3.7(f),
the  Maker  shall deliver the applicable Major Transaction Prepayment  Price
immediately  prior  to  the consummation  of  the  Major  Transaction; provided
that a holder's certificates representing  the  Notes  shall  have  been  so
delivered to the Maker; provided further  that  if  the Maker is unable to
prepay all of the Notes to be prepaid, the  Maker  shall  prepay  an amount from
each holder of the Notes being prepaid equal  to  such  holder's  pro-rata
amount (based on the number of Notes held by such  holder  relative  to  the
number of Notes outstanding) of all Notes being prepaid.  If  the  Maker  shall
fail  to  prepay all of the Notes submitted for prepayment (other than pursuant
to a dispute as to the arithmetic calculation of the  Prepayment  Price),  in
addition  to  any  remedy  such  holder  of  the  Notes  may
have under this Note and the Purchase Agreement, the applicable Prepayment Price
payable  in respect of such Notes not prepaid shall bear interest at the rate of
2.0%  per  month  (prorated  for  partial months) until paid in full.  Until the
Maker  pays  such  unpaid applicable Prepayment Price in full to a holder of the
Notes  submitted  for  prepayment,  such holder shall have the option (the "Void
Optional  Prepayment  Option")  to,  in lieu of prepayment, require the Maker to
promptly  return  to  such  holder(s)  all  of the Notes that were submitted for
prepayment by such holder(s) under this Section 3.7 and for which the applicable
Prepayment  Price  has  not  been paid, by sending written notice thereof to the
Maker  via facsimile (the "Void Optional Prepayment Notice").   Upon the Maker's
receipt  of  such Void Optional Prepayment Notice(s) and prior to payment of the
full applicable Prepayment Price to such holder, (i) the Notice(s) of Prepayment
at  Option  of  Buyer  Upon  Triggering  Event or the Notice(s) of Prepayment at
Option  of  Buyer  Upon Major Transaction, as the case may be, shall be null and
void  with  respect  to  those  Notes submitted for prepayment and for which the
applicable  Prepayment Price has not been paid, (ii) the Maker shall immediately
return any Notes submitted to the Maker by each holder for prepayment under this
Section  3.7(h)  and for which the applicable Prepayment Price has not been paid
and  (iii)  the Conversion Price of such returned Notes shall be adjusted to the
lesser  of  (A)  the Conversion Price as in effect on the date on which the Void
Optional  Prepayment  Notice(s) is delivered to the Maker and (B) the lowest Per
Share  Market  Value  during  the  period  beginning  on  the  date on which the
Notice(s)  of  Prepayment  of  Option  of  Buyer  Upon  Major Transaction or the
Notice(s)  of  Prepayment  at Option of Buyer Upon Triggering event, as the case
may  be,  is  delivered  to  the  Maker and ending on the date on which the Void
Optional  Prepayment  Notice(s)  is  delivered  to  the  Maker; provided that no
adjustment  shall  be made if such adjustment would result in an increase of the
Conversion  Price  then  in  effect.  A  holder's  delivery  of  a Void Optional
Prepayment  Notice  and  exercise  of its rights following such notice shall not
effect  the Maker's obligations to make any payments which have accrued prior to
the  date  of such notice.  Payments provided for in this Section 3.7 shall have
priority  to  payments  to  other  stockholders  in  connection  with  a  Major
Transaction.
     Section  3.8     Inability  to  Fully  Convert.
                      -----------------------------
     (a)     Holder's  Option  if  Maker  Cannot  Fully  Convert.  If,  upon the
             ---------------------------------------------------
Maker's  receipt of a Conversion Notice, the Maker cannot issue shares of Common
Stock  registered  for  resale  under the Registration Statement for any reason,
including,  without limitation, because the Maker (w) does not have a sufficient
number  of  shares  of  Common  Stock authorized and available, (x) is otherwise
prohibited  by  applicable  law  or  by  the  rules  or regulations of any stock
exchange,  interdealer  quotation  system  or other self-regulatory organization
with  jurisdiction  over  the Maker or any of its securities from issuing all of
the  Common  Stock  which is to be issued to the Holder pursuant to a Conversion
Notice  or  (y)  fails  to  have  a  sufficient number of shares of Common Stock
registered  for  resale  under  the Registration Statement, then the Maker shall
issue  as  many shares of Common Stock as it is able to issue in accordance with
the  Holder's  Conversion Notice and, with respect to the unconverted portion of
the  Note,  the  Holder,  solely  at  Holder's  option,  can  elect  to:
     (ii)     require the Maker to prepay that portion of the Note for which the
Maker is unable to issue Common Stock in accordance with the Holder's Conversion
Notice (the "Mandatory Prepayment") at a price per share equal to the Prepayment
             --------------------
Price  as  of  such  Conversion  Date  (the  "Mandatory  Prepayment  Price");
                                              ----------------------------
     if  the Maker's inability to fully convert is pursuant to Section 3.8(a)(y)
above, require the Maker to issue restricted shares of Common Stock equal to one
hundred  twenty percent (120%) of the number of shares of Common Stock the Maker
is  unable  to  deliver  in  accordance  with  such  holder's Conversion Notice;
void  its Conversion Notice and retain or have returned, as the case may be, the
Note  that  was to be converted pursuant to the Conversion Notice (provided that
the  Holder's  voiding  its  Conversion  Notice  shall  not  effect  the Maker's
obligations  to  make  any payments which have accrued prior to the date of such
notice).
     (b)     Mechanics  of  Fulfilling  Holder's  Election.  The  Maker  shall
             ---------------------------------------------
immediately  send  via facsimile to the Holder, upon receipt of a facsimile copy
of  a  Conversion  Notice  from  the  Holder  which cannot be fully satisfied as
described  in  Section  3.8(a) above, a notice of the Maker's inability to fully
satisfy  the  Conversion Notice (the "Inability to Fully Convert Notice").  Such
                                      ---------------------------------
Inability to Fully Convert Notice shall indicate (i) the reason why the Maker is
unable  to fully satisfy such holder's Conversion Notice, (ii) the amount of the
Note  which  cannot  be  converted and (iii) the applicable Mandatory Prepayment
Price.  The  Holder  shall  notify the Maker of its election pursuant to Section
3.8(a) above by delivering written notice via facsimile to the Maker ("Notice in
                                                                       ---------
Response  to  Inability  to  Convert").
------------------------------------
     (c)  Payment  of  Prepayment  Price.  If the Holder shall elect to have its
          ------------------------------
shares  prepaid  pursuant  to  Section  3.8(a)(i) above, the Maker shall pay the
Mandatory  Prepayment  Price  in  cash to the Holder within five (5) days of the
Maker's  receipt  of  the  Holder's  Notice in Response to Inability to Convert,
provided that prior to the Maker's receipt of the Holder's Notice in Response to
    ----
Inability to Convert the Maker has not delivered a notice to the Holder stating,
to  the satisfaction of the Holder, that the event or condition resulting in the
Mandatory  Prepayment  has  been cured and all Conversion Shares issuable to the
Holder  can  and will be delivered to the Holder in accordance with the terms of
this  Note.  If  the Maker shall fail to pay the applicable Mandatory Prepayment
Price to the Holder on a timely basis as described in this Section 3.8(c) (other
than pursuant to a dispute as to the determination of the arithmetic calculation
of  the  Prepayment  Price), in addition to any remedy the Holder may have under
this  Note and the Purchase Agreement, such unpaid amount shall bear interest at
the  rate  of  2.0%  per month (prorated for partial months) until paid in full.
Until  the  full  Mandatory  Prepayment Price is paid in full to the Holder, the
Holder may (i) void the Mandatory Prepayment with respect to that portion of the
Note  for  which  the  full  Mandatory  Prepayment Price has not been paid, (ii)
receive  back  such  Note,  and  (iii) require that the Conversion Price of such
returned Note be adjusted to the lesser of (A) the Conversion Price as in effect
on  the  date  on  which  the Holder voided the Mandatory Prepayment and (B) the
lowest Per Share Market Value during the period beginning on the Conversion Date
and  ending  on  the  date  the  Holder  voided  the  Mandatory  Prepayment.
     Section  3.9     No  Rights as Shareholder.  Nothing contained in this Note
shall  be  construed  as  conferring upon the Holder, prior to the conversion of
this Note, the right to vote or to receive dividends or to consent or to receive
notice  as  a  shareholder  in  respect  of  any meeting of shareholders for the
election  of  directors of the Maker or of any other matter, or any other rights
as  a  shareholder  of the Maker.  Upon the issuance of a Conversion Notice, the
Holder  shall  have  all  rights  as  a  shareholder  of  the  Maker.

-MISCELLANEOUS
     -Notices.  Any  notice,  demand,  request,  waiver  or  other communication
required  or  permitted  to  be given hereunder shall be in writing and shall be
effective  (a)  upon hand delivery by telex (with correct answer back received),
telecopy  or  facsimile  at  the  address  or  number designated in the Purchase
Agreement  (if  delivered  on  a business day during normal business hours where
such  notice  is  to  be  received),  or  the  first business day following such
delivery (if delivered other than on a business day during normal business hours
where such notice is to be received) or (b) on the second business day following
the date of mailing by express courier service, fully prepaid, addressed to such
address,  or  upon  actual receipt of such mailing, whichever shall first occur.
The Maker will give written notice to the Holder at least twenty (20) days prior
to  the  date  on  which  the  Maker closes its books or takes a record (x) with
respect  to any dividend or distribution upon the Common Stock, (y) with respect
to  any  pro  rata  subscription  offer  to  holders  of Common Stock or (z) for
determining  rights  to  vote  with  respect to any Organic Change, dissolution,
liquidation  or winding-up and in no event shall such notice be provided to such
holder prior to such information being made known to the public.  The Maker will
also  give  written  notice to the Holder at least twenty (20) days prior to the
date  on  which  any Organic Change, dissolution, liquidation or winding-up will
take  place and in no event shall such notice be provided to the Holder prior to
such  information  being  made  known  to  the  public.
Governing  Law.  This Note shall be governed by and construed in accordance with
the  internal laws of the State of New York, without giving effect to the choice
of  law  provisions.  This  Note  shall not be interpreted or construed with any
presumption  against  the  party  causing  this  Note  to  be  drafted.
-Headings.  Article  and  section  headings in this Note are included herein for
purposes  of  convenience  of  reference only and shall not constitute a part of
this  Note  for  any  other  purpose.
Remedies,  Characterizations, Other Obligations, Breaches and Injunctive Relief.
The  remedies  provided  in this Note shall be cumulative and in addition to all
other  remedies  available  under  this  Note,  at  law or in equity (including,
without  limitation,  a  decree  of specific performance and/or other injunctive
relief),  no remedy contained herein shall be deemed a waiver of compliance with
the  provisions  giving  rise  to  such  remedy and nothing herein shall limit a
holder's  right  to pursue actual damages for any failure by the Maker to comply
with  the  terms  of  this  Note.  Amounts set forth or provided for herein with
respect to payments, conversion and the like (and the computation thereof) shall
be  the  amounts  to  be received by the holder thereof and shall not, except as
expressly  provided  herein, be subject to any other obligation of the Maker (or
the  performance  thereof).  The  Maker  acknowledges that a breach by it of its
obligations hereunder will cause irreparable and material harm to the Holder and
that  the  remedy  at  law  for any such breach may be inadequate. Therefore the
Maker  agrees  that,  in  the event of any such breach or threatened breach, the
Holder  shall  be  entitled,  in  addition  to  all  other  available rights and
remedies,  at  law  or  in  equity,  to  seek  and obtain such equitable relief,
including  but  not  limited  to  an  injunction  restraining any such breach or
threatened  breach,  without  the necessity of showing economic loss and without
any  bond  or  other  security  being  required.
-Enforcement  Expenses.  The  Maker  agrees  to  pay  all  costs and expenses of
enforcement  of  this Note, including, without limitation, reasonable attorneys'
fees  and  expenses.
-Binding  Effect.   The obligations of the Maker and the Holder set forth herein
shall  be binding upon the successors and assigns of each such party, whether or
not  such  successors  or  assigns  are  permitted  by  the  terms  hereof.
-Amendments.  This  Note  may not be modified or amended in any manner except in
writing  executed  by  the  Maker  and  the  Holder.
-Compliance  with  Securities  Laws.  The  Holder of this Note acknowledges that
this  Note  is  being  acquired solely for the Holder's own account and not as a
nominee  for  any other party, and for investment, and that the Holder shall not
offer, sell or otherwise dispose of this Note.  This Note and any Note issued in
substitution  or  replacement  therefore  shall  be  stamped or imprinted with a
legend  in  substantially  the  following  form:
" THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE  "ACT"),  OR  APPLICABLE  STATE  SECURITIES  LAWS,  AND  MAY  NOT  BE SOLD,
TRANSFERRED,  PLEDGED  OR  HYPOTHECATED  IN  THE ABSENCE OF SUCH REGISTRATION OR
RECEIPT BY THE MAKER OF AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE REASONABLY
ACCEPTABLE  TO  THE  MAKER)  IN  THE  FORM,  SUBSTANCE  AND  SCOPE  REASONABLY
SATISFACTORY  TO THE MAKER THAT THIS NOTE MAY BE SOLD, TRANSFERRED, HYPOTHECATED
OR OTHERWISE DISPOSED OF, UNDER AN EXEMPTION FROM REGISTRATION UNDER THE ACT AND
SUCH  STATE  SECURITIES  LAWS."

     -Consent  to  Jurisdiction.  Each  of  the  Maker and the Holder (i) hereby
irrevocably  submits to the exclusive jurisdiction of the United States District
Court  sitting  in the Southern District of New York and the courts of the State
of  New  York located in New York county for the purposes of any suit, action or
proceeding  arising  out of or relating to this Note and (ii) hereby waives, and
agrees  not  to assert in any such suit, action or proceeding, any claim that it
is  not  personally  subject  to  the jurisdiction of such court, that the suit,
action  or  proceeding  is brought in an inconvenient forum or that the venue of
the  suit,  action  or proceeding is improper.  Each of the Maker and the Holder
consents  to  process  being  served  in  any such suit, action or proceeding by
mailing  a copy thereof to such party at the address in effect for notices to it
under  the Purchase Agreement and agrees that such service shall constitute good
and  sufficient  service of process and notice thereof.  Nothing in this Section
4.9  shall  affect  or  limit  any  right  to  serve process in any other manner
permitted  by  law.
-Parties  in Interest.  This Note shall be binding upon, inure to the benefit of
and  be enforceable by the Maker, the Holder and their respective successors and
permitted  assigns.
-Failure  or  Indulgence  Not  Waiver.  No  failure  or delay on the part of the
Holder  in the exercise of any power, right or privilege hereunder shall operate
as a waiver thereof, nor shall any single or partial exercise of any such power,
right  or  privilege  preclude other or further exercise thereof or of any other
right,  power  or  privilege.
-Maker Waivers.  Except as otherwise specifically provided herein, the Maker and
all  others  that  may  become  liable  for  all  or any part of the obligations
evidenced  by this Note, hereby waive presentment, demand, notice of nonpayment,
protest  and  all  other  demands'  and notices in connection with the delivery,
acceptance,  performance  and enforcement of this Note, and do hereby consent to
any  number  of  renewals  of extensions of the time or payment hereof and agree
that  any  such  renewals  or  extensions may be made without notice to any such
persons  and  without affecting their liability herein and do further consent to
the  release of any person liable hereon, all without affecting the liability of
the  other  persons,  firms or Maker liable for the payment of this Note, AND DO
HEREBY  WAIVE  TRIAL  BY  JURY.
No  delay  or  omission on the part of the Holder in exercising its rights under
this  Note,  or  course of conduct relating hereto, shall operate as a waiver of
such rights or any other right of the Holder, nor shall any waiver by the Holder
of  any  such right or rights on any one occasion be deemed a waiver of the same
right  or  rights  on  any  future  occasion.
THE  MAKER  ACKNOWLEDGES  THAT THE TRANSACTION OF WHICH THIS NOTE IS A PART IS A
COMMERCIAL  TRANSACTION,  AND  TO  THE  EXTENT ALLOWED BY APPLICABLE LAW, HEREBY
WAIVES  ITS  RIGHT  TO NOTICE AND HEARING WITH RESPECT TO ANY PREJUDGMENT REMEDY
WHICH  THE  HOLDER  OR  ITS  SUCCESSORS  OR  ASSIGNS  MAY  DESIRE  TO  USE.
     Section 4.13     Definitions.  For the purposes hereof, the following terms
                      -----------
shall  have  the  following  meanings:

     "Independent  Appraiser"  means  a  nationally recognized or major regional
      ----------------------
investment  banking  firm or firm of independent certified public accountants of
recognized standing (which may be the firm that regularly examines the financial
statements  of  the  Issuer)  that  is  regularly  engaged  in  the  business of
appraising  the  Capital  Stock  or  assets of corporations or other entities as
going concerns, and which is not affiliated with either the Issuer or the Holder
of  any  Warrant.

     "Person"  means  an  individual  or  a  corporation,  partnership,  trust,
      ------
incorporated  or  unincorporated  association,  joint venture, limited liability
      --
company,  joint stock company, government (or an agency or political subdivision
thereof)  or  other  entity  of  any  kind.

     "Trading  Day"  means  (a) a day on which the Common Stock is traded on The
      ------------
Nasdaq Small-Cap Market, the Nasdaq National Market or other registered national
stock  exchange  on which the Common Stock has been listed, or (b) if the Common
Stock  is  not listed on The Nasdaq Small-Cap Market, the Nasdaq National Market
or  any  registered  national stock exchange, a day or which the Common Stock is
traded in the over-the-counter market, as reported by the OTC Bulletin Board, or
(c)  if the Common Stock is not quoted on the OTC Bulletin Board, a day on which
the  Common  Stock  is  quoted in the over-the-counter market as reported by the
National  Quotation  Bureau  Incorporated (or any similar organization or agency
succeeding  its  functions  of reporting prices); provided, however, that in the
                                                  --------  -------
event that the Common Stock is not listed or quoted as set forth in (a), (b) and
(c)  hereof, then Trading Day shall mean any day except Saturday, Sunday and any
day which shall be a legal holiday or a day on which banking institutions in the
State  of  New York are authorized or required by law or other government action
to  close.

                           THE  AMANDA  COMPANY,  INC.

                           By:  /s/  Jose  Candia
                                ------------
                           Name:  Jose  Candia
                           Title: Chief  Executive  Officer

<PAGE>

                                    EXHIBIT A

                               WIRE INSTRUCTIONS.

Payee:  ________________________________________________________
Bank:  ________________________________________________________
Address:  _____________________________________________________
          ______________________________________________________
Bank  No.:  _____________________________________________________
Account  No.:  __________________________________________________
Account  Name:  _________________________________________________

<PAGE>
                                     FORM OF
                              NOTICE OF CONVERSION
     (To be Executed by the Registered Holder in order to Convert the Note)
The  undersigned  hereby irrevocably elects to convert $ ________________ of the
principal  amount  of  the above Note No. ___ into shares of Common Stock of THE
AMANDA COMPANY, INC. (the "Maker") according to the conditions hereof, as of the
date  written  below.
Date  of  Conversion*  _________________________________________________________
Applicable Conversion Price * __________________________________________________
Signature___________________________________________________________________
     [Name]
Address:__________________________________________________________________
     _______________________________________________________________________748221_2
                                                            Exhibit 10.38

                            CONVERTIBLE NOTE PURCHASE

                                    AGREEMENT

                          DATED AS OF NOVEMBER 19, 2001

                                      AMONG

                             THE AMANDA COMPANY, INC

                                       AND

                        THE PURCHASER LISTED ON EXHIBIT A

<PAGE>
                           TABLE OF CONTENTS (CONT'D)

                                                                    PAGE
                                                                    ----
748221_2
                                TABLE OF CONTENTS

                                                                    PAGE
                                                                    ----

ARTICLE  I            PURCHASE  AND  SALE  OF  NOTE                    3
     Section  1.1     Purchase  and  Sale  of  Note                    3
     Section  1.2     The  Conversion  Shares                          3
     Section  1.3     Purchase  Price  and  Closing                    3
     Section  1.4     Warrant                                          4

ARTICLE  II           REPRESENTATIONS  AND  WARRANTIES                 4
     Section  2.1     Representations and Warranties of the Company    4
     Section  2.2     Representations and Warranties of the Purchaser 14

ARTICLE  III          COVENANTS                                       16
     Section  3.1     Securities  Compliance.                         16
     Section  3.2     Registration  and  Listing                      16
     Section  3.3     Inspection  Rights                              16
     Section  3.4     Compliance  with  Laws                          16
     Section  3.5     Keeping  of  Records  and  Books  of  Account   17
     Section  3.6     Reporting  Requirements                         17
     Section  3.7     Amendments                                      17
     Section  3.8     Other  Agreements                               17
     Section  3.9     Distributions.                                  17
     Section  3.10    Intentionally  Omitted.                         17
     Section  3.11    Regulation  S.                                  18
     Section  3.12    Future  Financings                              18
     Section  3.13    Reservation  of  Shares                         18
     Section  3.14    Transfer  Agent  Instructions                   18

ARTICLE  IV           CONDITIONS                                      19
     Section  4.1     Conditions Precedent to the Obligation of the
                      Company  to  Sell  the  Note                    19

ARTICLE  V            REGISTRATION  RIGHTS                            21

ARTICLE  VI           CERTIFICATE  LEGEND                             21
     Section  6.1     Legend                                          21

ARTICLE  VII          TERMINATION                                     22
     Section  7.1     Termination  by  Mutual  Consent                22
     Section  7.2     Other  Termination                              22
     Section  7.3     Effect  of  Termination                         22

ARTICLE  VIII         INDEMNIFICATION                                 23
     Section  8.1     General  Indemnity                              23
     Section  8.2     Indemnification  Procedure                      23
ARTICLE  IX           MISCELLANEOUS                                   24
     Section  9.1     Fees  and  Expenses                             24
     Section  9.2     Specific Enforcement, Consent to Jurisdiction.  24
     Section  9.3     Entire  Agreement;  Amendment                   25
Section  9.4          Notices                                         25
     Section  9.5     Waivers                                         26
     Section  9.6     Headings                                        26
     Section  9.7     Successors  and  Assigns                        26
     Section  9.8     No  Third  Party  Beneficiaries                 26
     Section  9.9     Governing  Law                                  26
     Section  9.10    Survival                                        26
     Section  9.11    Counterparts                                    27
     Section  9.12    Publicity                                       27
     Section  9.13    Severability                                    27
     Section  9.14    Further  Assurances                             27

<PAGE>
                       CONVERTIBLE NOTE PURCHASE AGREEMENT

     This  CONVERTIBLE  NOTE PURCHASE AGREEMENT (the "Agreement") is dated as of
November  19,  2001 by and between THE AMANDA COMPANY, INC.  (the "Company"),  a
Utah  company,  and  the  Purchaser of the Convertible Note of the Company whose
name  is  set  forth  on  Exhibit  A  hereto  (the  "Purchaser").

     The  parties  hereto  agree  as  follows:

Purchase  and  Sale  of  Note

     -     Purchase  and Sale of Note.  Upon the following terms and conditions,
           --------------------------
the  Company  shall  issue  and  sell  to  the Purchaser and the Purchaser shall
purchase from the Company, (i) two convertible promissory notes in the aggregate
principal  amount  of  $50,000 bearing interest at the rate of 8% per annum, due
November  19,  2004,  convertible into shares of the Company's Common Stock, par
value  $.01  per  share (the "Common Stock"), in substantially the form attached
hereto as Exhibit B (the "Note"), and (ii) no Warrants to purchase shares of the
Company's  Common  Stock, in substantially the form attached hereto as Exhibit C
(the  "Warrant").  The  purchase  price  for  the  Note and the Warrant shall be
$50,000 (the "Purchase Price").  The Company and the Purchaser are executing and
delivering  this Agreement in accordance with and in reliance upon the exemption
from  securities  registration afforded by Rule 506 of Regulation D ("Regulation
D")  as promulgated by the United States Securities and Exchange Commission (the
"Commission")  under  the  Securities  Act  of 1933, as amended (the "Securities
Act"),  Regulation S ("Regulation S") as promulgated by the Commission under the
Securities  Act,  or  Section  4(2)  of  the  Securities  Act.

     -     The  Conversion Shares.  Immediately upon the filing of a Certificate
           ----------------------
of  Amendment  to  the  Company's  Certificate  of  Incorporation  with the Utah
Secretary  of  State  increasing its authorized capital stock, the Company shall
authorize,  reserve  and  maintain,  free of preemptive rights and other similar
contractual rights of stockholders, no less than 150% of the aggregate number of
shares  of Common Stock needed to effect the conversion of the Note at the Fixed
Conversion  Price  (as  defined  in  the  Note)  and  any  interest  accrued and
outstanding  thereon  and  exercise  of the Warrant.  Any shares of Common Stock
issuable  upon  conversion  of the Note and any interest accrued and outstanding
thereon  and  exercise  of  the Warrant (and such shares when issued) are herein
referred  to  as the "Conversion Shares" and the "Warrant Shares," respectively.
The  Note,  the  Conversion  Shares  and  the  Warrant  Shares  are  sometimes
collectively  referred  to  herein  as  the  "Shares."

     -     Purchase  Price and Closing.  The Company agrees to issue and sell to
           ---------------------------
the  Purchaser  and,  in  consideration  of  and  in  express  reliance upon the
representations,  warranties, covenants, terms and conditions of this Agreement,
the Purchaser agrees to purchase the Note set forth opposite its name on Exhibit
A  for  a purchase price equal to $50,000.  The closing of the purchase and sale
of the Note and Warrant (the "Closing") to be acquired by the Purchaser from the
Company  under  this  Agreement  shall  take place at the offices of Naccarato &
Associates at 10:00 a.m. P.S.T. on the date on which the last to be fulfilled or
waived  of  the  conditions set forth in Article IV hereof and applicable to the
Closing  shall  be fulfilled or waived in accordance herewith or such other time
and  place  or on such date as the Purchaser and the Company may agree upon (the
"Closing  Date").  On  the  Closing  Date,  the  Company  shall  deliver  to the
Purchaser  the  Note and the Purchaser shall deliver to the Company the Purchase
Price.  In  addition,  each  party  shall deliver all documents, instruments and
writings required to be delivered by such party pursuant to this Agreement at or
prior  to  the  Closing.  This Agreement shall become effective upon the date of
execution  of  this Agreement by each of the parties hereto, which date shall be
no  later  than November 19, 2001, unless otherwise agreed upon by the Purchaser
and  the  Company.

          Warrant.  The  Company  agrees  to issue to the Purchaser a Warrant to
          -------
purchase -0- shares of Common Stock on the Closing Date.  The Warrant shall have
an  exercise  price  equal  to the Warrant Price (as defined in the Warrant) and
shall  expire  on  the  fifth  anniversary of the issuance date of such Warrant.

Representations  and  Warranties

     -     Representations  and  Warranties  of the Company.  The Company hereby
           ------------------------------------------------
makes  the  following  representations  and  warranties  to  the  Purchaser:

     (bb)     -Organization,  Good  Standing  and  Power.  The  Company  is  a
               -----------------------------------------
corporation  duly  incorporated, validly existing and in good standing under the
laws  of  the  State of Utah and has the requisite corporate power to own, lease
and  operate  its properties and assets and to conduct its business as it is now
being conducted.  The Company does not have any subsidiaries except as set forth
on  Schedule  2.1(g)  hereto.  The  Company  and  each  such  subsidiary is duly
    ----------------
qualified  as  a  foreign  corporation to do business and is in good standing in
every  jurisdiction  in  which  the nature of the business conducted or property
owned  by  it  makes such qualification necessary except for any jurisdiction(s)
(alone  or  in  the  aggregate) in which the failure to be so qualified will not
have  a  Material Adverse Effect.  For the purposes of this Agreement, "Material
Adverse  Effect"  means  any  adverse  effect  on  the  business,  operations,
properties, prospects, or financial condition of the Company or its subsidiaries
and which is material to such entity or other entities controlling or controlled
by  such  entity.

     (cc)     -Authorization;  Enforcement.  The  Company  has  the  requisite
               ---------------------------
corporate  power  and  authority  to  enter into and perform this Agreement, the
Registration  Rights  Agreement  attached hereto as Exhibit D (the "Registration
Rights  Agreement"), the Transfer Agent Instructions (as defined in Section 3.14
hereof) and the Warrant (collectively, the "Transaction Documents") and to issue
and  sell  the  Shares  in  accordance with the terms hereof and the Warrant, as
applicable.  The  execution,  delivery  and  performance  of  the  Transaction
Documents  by  the  Company  and  the  consummation  by  it  of the transactions
contemplated  hereby  and  thereby  have been duly and validly authorized by all
necessary  corporate  action,  and  no  further  consent or authorization of the
Company  or  its Board of Directors or stockholders is required.  This Agreement
has  been  duly  executed and delivered by the Company.  The Registration Rights
Agreement  will have been duly executed and delivered by the Company at Closing.
Each of the Transaction Documents constitutes, or shall constitute when executed
and delivered, a valid and binding obligation of the Company enforceable against
the  Company  in accordance with its terms, except as such enforceability may be
limited  by  applicable  bankruptcy,  insolvency,  reorganization,  moratorium,
liquidation,  conservatorship,  receivership  or  similar  laws  relating to, or
affecting  generally  the  enforcement  of, creditor's rights and remedies or by
other  equitable  principles  of  general  application.

     (dd)     -Capitalization.  The  authorized capital stock of the Company and
               --------------
the shares thereof currently issued and outstanding as of September 20, 2001 are
set  forth  on  Schedule  2.1(c)  hereto.  All  of the outstanding shares of the
                ----------------
Company's  Common  Stock  have  been duly and validly authorized.  Except as set
forth  in  this Agreement and the Registration Rights Agreement and as set forth
on  Schedule 2.1(c) hereto, no shares of Common Stock are entitled to preemptive
    ---------------
rights  or  registration  rights and there are no outstanding options, warrants,
scrip,  rights  to subscribe to, call or commitments of any character whatsoever
relating  to,  or  securities  or rights convertible into, any shares of capital
stock  of  the  Company.  Furthermore, except as set forth in this Agreement and
the Registration Rights Agreement and as set forth on Schedule 2.1(c), there are
                                                      ---------------
no  contracts, commitments, understandings, or arrangements by which the Company
is  or  may  become bound to issue additional shares of the capital stock of the
Company  or  options,  securities  or  rights convertible into shares of capital
stock  of  the Company.  Except for customary transfer restrictions contained in
agreements entered into by the Company in order to sell restricted securities or
as  provided  on  Schedule  2.1  (c)  hereto,  the Company is not a party to any
                  ------------------
agreement  granting  registration  or  anti-dilution  rights  to any person with
respect to any of its equity or debt securities.  The Company is not a party to,
and  it has no knowledge of, any agreement restricting the voting or transfer of
any shares of the capital stock of the Company.  Except as set forth on Schedule
                                                                        --------
2.1(c)  hereto, the offer and sale of all capital stock, convertible securities,
------
rights, warrants, or options of the Company issued prior to the Closing complied
with  all applicable Federal and state securities laws, and no stockholder has a
right  of rescission or damages with respect thereto which would have a Material
Adverse  Effect (as defined in Section 2.1(e) herein) on the Company's financial
condition  or operating results.  The Company has furnished or made available to
the  Purchaser  true  and  correct  copies  of  the  Company's  Certificate  of
Incorporation  as  in  effect  on  the  date hereof (the "Certificate"), and the
Company's  Bylaws  as  in  effect  on  the  date  hereof  (the  "Bylaws").

     (ee)     -Issuance  of Note.  The Note to be issued at the Closing has been
               -----------------
duly  authorized  by all necessary corporate action and, when paid for or issued
in  accordance  with  the  terms  hereof,  the  Note shall be validly issued and
outstanding,  fully  paid  and  nonassessable  and  free and clear of all liens,
encumbrances  and rights of refusal of any kind.  When the Conversion Shares and
the  Warrant  Shares are issued in accordance with the terms of the Note and the
Warrant,  respectively,  such  shares  will  be duly authorized by all necessary
corporate  action  and  validly  issued  and  outstanding,  fully  paid  and
nonassessable,  and  the  holders  shall be entitled to all rights accorded to a
holder  of  Common  Stock.

     (ff)     -No  Conflicts.  The  execution,  delivery  and performance of the
               -------------
Transaction  Documents by the Company and the consummation by the Company of the
transactions contemplated herein and therein do not (i) violate any provision of
the Company's Certificate or Bylaws, (ii) conflict with, or constitute a default
(or  an event which with notice or lapse of time or both would become a default)
under,  or  give to others any rights of termination, amendment, acceleration or
cancellation  of, any agreement, mortgage, deed of trust, indenture, note, bond,
license,  lease  agreement,  instrument  or obligation to which the Company is a
party,  (iii)  create or impose a lien, charge or encumbrance on any property of
the  Company  under  any  agreement  or any commitment to which the Company is a
party  or  by  which  the  Company  is  bound  or by which any of its respective
properties  or  assets  are bound, or (iv) result in a violation of any federal,
state,  local  or  foreign  statute, rule, regulation, order, judgment or decree
(including  Federal and state securities laws and regulations) applicable to the
Company  or  any  of  its  subsidiaries or by which any property or asset of the
Company  or  any of its subsidiaries are bound or affected, except, in all cases
other  than  violations  pursuant  to  clause  (i)  above,  for  such conflicts,
defaults,  terminations,  amendments, acceleration, cancellations and violations
as  would not, individually or in the aggregate, have a Material Adverse Effect.
The  business  of  the  Company  and  its subsidiaries is not being conducted in
violation  of  any  laws,  ordinances or regulations of any governmental entity,
except  for  possible violations which singularly or in the aggregate do not and
will  not  have  a  Material  Adverse Effect.  The Company is not required under
Federal,  state  or  local  law,  rule  or  regulation  to  obtain  any consent,
authorization or order of, or make any filing or registration with, any court or
governmental  agency  in  order for it to execute, deliver or perform any of its
obligations  under  the  Transaction  Documents  or issue and sell the Note, the
Conversion  Shares and the Warrant Shares in accordance with the terms hereof or
thereof  (other than any filings which may be required to be made by the Company
with the Commission or state securities administrators subsequent to the Closing
or  any  registration  statement  which  may be filed pursuant hereto); provided
that,  for  purposes of the representation made in this sentence, the Company is
assuming  and  relying  upon  the  accuracy  of the relevant representations and
agreements  of  the  Purchaser  herein.

     (gg)     -Commission  Documents, Financial Statements.  The Common Stock of
               -------------------------------------------
the  Company  is registered pursuant to Section 12(b) or 12(g) of the Securities
Exchange  Act  of  1934,  as  amended  (the "Exchange Act"), and the Company has
timely  filed  all  reports,  schedules,  forms,  statements and other documents
required  to  be  filed  by  it  with  the  Commission pursuant to the reporting
requirements  of  the Exchange Act, including material filed pursuant to Section
13(a)  or  15(d)  of  the  Exchange  Act (all of the foregoing including filings
incorporated  by  reference  therein being referred to herein as the "Commission
Documents").  The  Company has delivered or made available to the Purchaser true
and  complete copies of the Commission Documents filed with the Commission since
June  30,  2001.  The  Company  has  not  provided to the Purchaser any material
non-public  information or other information which, according to applicable law,
rule or regulation, should have been disclosed publicly by the Company but which
has  not  been  so  disclosed,  other  than  with  respect  to  the transactions
contemplated  by  this  Agreement.  As  of  their  respective dates, the audited
financial statements as presented in the Commission Documents for the year ended
September  30, 2000 (the "Financial Statement") and the Form 10-Q for the fiscal
quarter  ended June 30, 2001 (the "Form 10-Q") complied in all material respects
with  the  requirements of the Exchange Act and the rules and regulations of the
Commission promulgated thereunder and other federal, state and local laws, rules
and regulations applicable to such documents, and, as of their respective dates,
neither  the  Financial  Statement nor the Form 10-Q referred to above contained
any  untrue  statement  of  a  material fact or omitted to state a material fact
required  to  be  stated  therein  or  necessary in order to make the statements
therein,  in  light  of  the  circumstances  under  which  they  were  made, not
misleading.  The  financial statements of the Company included in the Commission
Documents  comply as to form in all material respects with applicable accounting
requirements  and the published rules and regulations of the Commission or other
applicable  rules  and  regulations  with  respect  thereto.  Such  financial
statements  have  been prepared in accordance with generally accepted accounting
principles  ("GAAP")  applied  on a consistent basis 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  not include footnotes or may be condensed or summary statements), and
fairly  present  in  all material respects the financial position of the Company
and  its  subsidiaries as of the dates thereof and the results of operations and
cash  flows  for  the  periods  then  ended  (subject,  in the case of unaudited
statements,  to  normal  year-end  audit  adjustments).

     (hh)     -Subsidiaries.  Schedule  2.1(g) hereto sets forth each subsidiary
               ------------   ----------------
of  the  Company,  showing the jurisdiction of its incorporation or organization
and  showing  the percentage of each person's ownership of the outstanding stock
or  other  interests  of  such  subsidiary.  For the purposes of this Agreement,
"subsidiary"  shall  mean  any  corporation  or other entity of which at least a
majority  of  the  securities or other ownership interest having ordinary voting
power  (absolutely  or  contingently)  for  the  election  of directors or other
persons  performing  similar  functions  are  at  the  time  owned  directly  or
indirectly  by  the  Company  and/or  any of its other subsidiaries.  All of the
outstanding shares of capital stock of each subsidiary have been duly authorized
and  validly  issued,  and  are  fully  paid  and  nonassessable.  There  are no
outstanding  preemptive,  conversion  or  other  rights,  options,  warrants  or
agreements  granted or issued by or binding upon any subsidiary for the purchase
or  acquisition  of  any  shares of capital stock of any subsidiary or any other
securities  convertible  into,  exchangeable  for  or  evidencing  the rights to
subscribe  for  any  shares  of such capital stock.  Neither the Company nor any
subsidiary  is subject to any obligation (contingent or otherwise) to repurchase
or otherwise acquire or retire any shares of the capital stock of any subsidiary
or any convertible securities, rights, warrants or options of the type described
in  the preceding sentence.  Neither the Company nor any subsidiary is party to,
nor  has  any  knowledge of, any agreement restricting the voting or transfer of
any  shares  of  the  capital  stock  of  any  subsidiary.

     (ii)     -No  Material  Adverse  Change.  Since  June  30,  2001,  the date
               -----------------------------
through  which  the most recent quarterly report of the Company on Form 10-Q has
been  prepared and filed with the Commission, a copy of which is included in the
Commission  Documents,  the Company has not experienced or suffered any Material
Adverse  Effect.

     (jj)     -No  Undisclosed  Liabilities.  Neither the Company nor any of its
               ----------------------------
subsidiaries  has  any  liabilities,  obligations,  claims  or  losses  (whether
liquidated  or unliquidated, secured or unsecured, absolute, accrued, contingent
or  otherwise) other than those incurred in the ordinary course of the Company's
or  its  subsidiaries  respective  businesses  since  June  30,  2001 and which,
individually  or  in  the aggregate, do not or would not have a Material Adverse
Effect  on  the  Company  or  its  subsidiaries.

     (kk)     -No Undisclosed Events or Circumstances.  No event or circumstance
               --------------------------------------
has  occurred or exists with respect to the Company or its subsidiaries or their
respective businesses, properties, prospects, operations or financial condition,
which,  under  applicable law, rule or regulation, requires public disclosure or
announcement  by  the  Company  but  which has not been so publicly announced or
disclosed.

     (ll)     -Indebtedness.  Schedule  2.1(k)  hereto sets forth as of the date
               ------------   ----------------
hereof  all outstanding secured and unsecured Indebtedness of the Company or any
subsidiary, or for which the Company or any subsidiary has commitments.  For the
purposes  of  this  Agreement, "Indebtedness" shall mean (a) any liabilities for
borrowed  money  or amounts owed in excess of $75,000 (other than trade accounts
payable  incurred  in  the  ordinary  course  of  business), (b) all guaranties,
endorsements  and  other  contingent  obligations  in respect of Indebtedness of
others,  whether  or  not  the  same are or should be reflected in the Company's
balance  sheet  (or  the  notes  thereto),  except  guaranties by endorsement of
negotiable  instruments for deposit or collection or similar transactions in the
ordinary  course of business; and (c) the present value of any lease payments in
excess of $75,000 due under leases required to be capitalized in accordance with
GAAP.  Except  as  set  forth on Schedule 2.1(k) hereto, neither the Company nor
                                 ---------------
any  subsidiary  is  in  default  with  respect  to  any  Indebtedness.

     (mm)     -Title  to Assets.  Except as set forth on Schedule 2.1(k) hereto,
               ----------------                          ---------------
each of the Company and the subsidiaries has good and marketable title to all of
its  real and personal property, free of any mortgages, pledges, charges, liens,
security  interests  or  other  encumbrances,  except  for  those  such  that,
individually  or in the aggregate, do not cause a Material Adverse Effect on the
Company's  financial  condition  or  operating  results.  All said leases of the
Company  and each of its subsidiaries are valid and subsisting and in full force
and  effect.

     (nn)     -Actions  Pending.  There is no action, suit, claim, investigation
               ----------------
or  proceeding  pending  or, to the knowledge of the Company, threatened against
the  Company or any subsidiary which questions the validity of this Agreement or
the transactions contemplated hereby or any action taken or to be taken pursuant
hereto or thereto.  Except as set forth in the Commission Documents, there is no
action, suit, claim, investigation or proceeding pending or, to the knowledge of
the Company, threatened, against or involving the Company, any subsidiary or any
of  their  respective  properties  or  assets.  Except  as set forth on Schedule
                                                                        --------
2.1(m)  hereto,  there are no outstanding orders, judgments, injunctions, awards
     -
or  decrees  of any court, arbitrator or governmental or regulatory body against
the  Company  or  any  subsidiary or any officers or directors of the Company or
subsidiary  in  their  capacities  as  such  that  would, individually or in the
aggregate,  have  a  Material  Adverse  Effect.

     (oo)     -Compliance  with  Law.  The  business  of  the  Company  and  the
               ---------------------
subsidiaries  has  been  and is presently being conducted in accordance with all
applicable  federal,  state  and local governmental laws, rules, regulations and
ordinances,  except  such that, individually or in the aggregate, do not cause a
Material  Adverse  Effect.  The  Company  and  each of its subsidiaries have all
franchises,  permits,  licenses,  consents  and other governmental or regulatory
authorizations  and  approvals  necessary for the conduct of its business as now
being  conducted  by  it unless the failure to possess such franchises, permits,
licenses,  consents  and  other  governmental  or  regulatory authorizations and
approvals, individually or in the aggregate, could not reasonably be expected to
have  a  Material  Adverse  Effect.

     (pp)     -Taxes.  The  Company  and each of the subsidiaries has accurately
               -----
prepared  and  filed all federal, state and other tax returns required by law to
be  filed  by it, has paid or made provisions for the payment of all taxes shown
to  be due and all additional assessments, and adequate provisions have been and
are  reflected  in  the financial statements of the Company and the subsidiaries
for  all  current taxes and other charges to which the Company or any subsidiary
is  subject  and  which  are not currently due and payable.  None of the federal
income  tax  returns  of  the Company or any subsidiary have been audited by the
Internal  Revenue  Service.  The  Company  has  no  knowledge  of any additional
assessments,  adjustments or contingent tax liability (whether federal or state)
pending  or threatened against the Company or any subsidiary for any period, nor
of  any  basis  for  any  such  assessment,  adjustment  or  contingency.

     (qq)     -Certain  Fees.  Except as set forth on Schedule 2.1(p) hereto, no
               -------------                          ---------------
brokers,  finders  or  financial advisory fees or commissions will be payable by
the  Company or any subsidiary or any Purchaser with respect to the transactions
contemplated  by  this  Agreement.

     (rr)     -Disclosure.  To the best of the Company's knowledge, neither this
               ----------
Agreement  or  the  Schedules  hereto  nor  any other documents, certificates or
instruments  furnished  to  the  Purchaser by or on behalf of the Company or any
subsidiary  in  connection  with the transactions contemplated by this Agreement
contain any untrue statement of a material fact or omit to state a material fact
necessary  in  order to make the statements made herein or therein, in the light
of  the  circumstances  under  which  they  were  made  herein  or  therein, not
misleading.

     (ss)     -Operation  of Business.  The Company and each of the subsidiaries
               ----------------------
owns  or  possesses  all  patents,  trademarks,  domain  names  (whether  or not
registered)  and  any  patentable improvements or copyrightable derivative works
thereof,  websites  and  intellectual  property rights relating thereto, service
marks,  trade names, copyrights, licenses and authorizations and all rights with
respect to the foregoing, which are necessary for the conduct of its business as
now  conducted  without  any  conflict  with  the  rights  of  others.

     (tt)     -Environmental  Compliance.  The  Company  and  each  of  its
               -------------------------
subsidiaries  have obtained all material approvals, authorization, certificates,
consents,  licenses,  orders  and permits or other similar authorizations of all
governmental  authorities, or from any other person, that are required under any
Environmental Laws.  No material permits, licenses and other authorizations have
been  issued  under  any  Environmental Laws to the Company or its subsidiaries.
"Environmental  Laws"  shall mean all applicable laws relating to the protection
of the environment including, without limitation, all requirements pertaining to
reporting,  licensing,  permitting,  controlling,  investigating  or remediating
emissions,  discharges, releases or threatened releases of hazardous substances,
chemical  substances, pollutants, contaminants or toxic substances, materials or
wastes, whether solid, liquid or gaseous in nature, into the air, surface water,
groundwater  or  land, or relating to the manufacture, processing, distribution,
use,  treatment,  storage,  disposal,  transport  or  handling  of  hazardous
substances,  chemical  substances, pollutants, contaminants or toxic substances,
material or wastes, whether solid, liquid or gaseous in nature.  The Company has
all  necessary  governmental approvals required under all Environmental Laws and
used in its business or in the business of any of its subsidiaries.  The Company
and  each of its subsidiaries are also in compliance with all other limitations,
restrictions,  conditions,  standards,  requirements,  schedules  and timetables
required  or imposed under all Environmental Laws.  Except for such instances as
would not individually or in the aggregate have a Material Adverse Effect, there
are  no past or present events, conditions, circumstances, incidents, actions or
omissions  relating  to  or in any way affecting the Company or its subsidiaries
that  violate or may violate any Environmental Law after the Closing or that may
give  rise  to  any  environmental liability, or otherwise form the basis of any
claim,  action,  demand,  suit,  proceeding, hearing, study or investigation (i)
under  any  Environmental  Law,  or (ii) based on or related to the manufacture,
processing,  distribution, use, treatment, storage (including without limitation
underground  storage  tanks),  disposal, transport or handling, or the emission,
discharge,  release  or  threatened  release  of  any  hazardous  substance.
"Environmental  Liabilities"  means  all  liabilities  of a person (whether such
liabilities  are  owed by such person to governmental authorities, third parties
or  otherwise)  whether  currently in existence or arising hereafter which arise
under  or  relate  to  any  Environmental  Law.

     (uu)     -Books  and Records Internal Accounting Controls.  The records and
               -----------------------------------------------
documents of the Company and its subsidiaries accurately reflect in all material
respects  the  information  relating  to  the  business  of  the Company and the
subsidiaries, the location and collection of their assets, and the nature of all
transactions  giving  rise  to  the  obligations  or  accounts receivable of the
Company  or any subsidiary.  The Company and each of its subsidiaries maintain a
system  of  internal  accounting  controls  sufficient,  in  the judgment of the
Company's  board  of  directors,  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 actions is taken
with  respect  to  any  differences.

     (vv)     -Material  Agreements.  Except  as  set  forth  on Schedule 2.1(u)
               --------------------                              ---------------
hereto, neither the Company nor any subsidiary is a party to any written or oral
contract,  instrument, agreement, commitment, obligation, plan or arrangement, a
copy of which would be required to be filed with the Commission as an exhibit to
a registration statement on Form S-1 or applicable form (collectively, "Material
Agreements")  if the Company or any subsidiary were registering securities under
the  Securities  Act.  The  Company  and  each  of  its  subsidiaries has in all
material respects performed all the obligations required to be performed by them
to  date under the foregoing agreements, have received no notice of default and,
to  the  best  of  the Company's knowledge are not in default under any Material
Agreement  now  in  effect,  the  result of which could cause a Material Adverse
Effect.  No  written  or  oral  contract,  instrument,  agreement,  commitment,
obligation,  plan  or  arrangement of the Company or of any subsidiary limits or
shall limit the payment of dividends on the Company's Note, its preferred stock,
if  any,  or  its  Common  Stock.

     (ww)     -Transactions  with  Affiliates.  Except  as  set  forth  in  the
               ------------------------------
Commission  Documents  and  as set forth on Schedule 2.1(v) hereto, there are no
                                            ---------------
loans,  leases,  agreements, contracts, royalty agreements, management contracts
or  arrangements or other continuing transactions exceeding $100,000 between (a)
the Company, any subsidiary or any of their respective customers or suppliers on
the  one  hand,  and (b) on the other hand, any officer, employee, consultant or
director  of  the  Company, or any of its subsidiaries, or any person owning any
capital  stock  of  the Company or any subsidiary or any member of the immediate
family  of  such  officer,  employee, consultant, director or stockholder or any
corporation  or  other  entity controlled by such officer, employee, consultant,
director  or  stockholder,  or a member of the immediate family of such officer,
employee,  consultant,  director  or  stockholder.

     (xx)     -Securities Act of 1933.  The Company has complied and will comply
               ----------------------
with  all  applicable  Federal  and state securities laws in connection with the
offer,  issuance  and  sale  of the Note and the Warrant hereunder.  Neither the
Company  nor  anyone  acting  on its behalf, directly or indirectly, has or will
sell,  offer  to  sell or solicit offers to buy the Note, the Warrant or similar
securities  to,  or  solicit offers with respect thereto from, or enter into any
preliminary  conversations or negotiations relating thereto with, any person, or
has  taken  or  will take any action so as to bring the issuance and sale of the
Note and the Warrant under the registration provisions of the Securities Act and
applicable  state  securities  laws.  Neither  the  Company  nor  any  of  its
affiliates,  nor  any  person  acting on its or their behalf, has engaged in any
form  of  general  solicitation  or  general  advertising (within the meaning of
Regulation  D  under the Securities Act) in connection with the offer or sale of
the  Note  and  the  Warrant.

     (yy)     -Governmental  Approvals.  Except  for  the  filing  of any notice
               -----------------------
prior  or  subsequent to the Closing that may be required under applicable state
and/or  Federal  securities  laws (which if required, shall be filed on a timely
basis),  including the filing of a registration statement or statements pursuant
to  the  Registration  Rights  Agreement,  no  authorization, consent, approval,
license,  exemption  of,  filing  or registration with any court or governmental
department,  commission,  board,  bureau, agency or instrumentality, domestic or
foreign,  is  or  will be necessary for, or in connection with, the execution or
delivery  of  the Note, or for the performance by the Company of its obligations
under  the  Transaction  Documents.

     (zz)     -Employees.  Neither  the  Company  nor  any  subsidiary  has  any
               ---------
collective  bargaining arrangements or agreements covering any of its employees.
Neither  the  Company  nor any subsidiary has any employment contract, agreement
regarding  proprietary  information, non-competition agreement, non-solicitation
agreement,  confidentiality  agreement,  or  any  other  similar  contract  or
restrictive  covenant,  relating  to  the  right  of  any  officer,  employee or
consultant  to  be employed or engaged by the Company or such subsidiary.  Since
March  31,  2001,  no  officer, consultant or key employee of the Company or any
subsidiary  whose  termination,  either  individually or in the aggregate, could
have  a  Material  Adverse  Effect,  has  terminated or, to the knowledge of the
Company,  has  any  present  intention  of  terminating his or her employment or
engagement  with  the  Company  or  any  subsidiary.

     (aaa)     -Absence  of  Certain  Developments.  Except  as  set  forth  on
                ----------------------------------
Schedule  2.1(z)  hereto,  since  June  30,  2001,  neither  the Company nor any
       ---------
subsidiary  has:

     (i)     issued  any  stock,  bonds  or  other  corporate  securities or any
rights,  options  or  warrants  with  respect  thereto;

     (ii)     borrowed  any  amount  or  incurred  or  become  subject  to  any
liabilities  (absolute or contingent) except current liabilities incurred in the
ordinary  course  of  business  which are comparable in nature and amount to the
current  liabilities  incurred  in  the  ordinary  course of business during the
comparable  portion of its prior fiscal year, as adjusted to reflect the current
nature  and  volume  of  the  Company's  or  such  subsidiary's  business;

     (iii)     discharged  or satisfied any material lien or encumbrance or paid
any  material  obligation  or  liability  (absolute  or  contingent), other than
current  liabilities  paid  in  the  ordinary  course  of  business;

     (iv)     declared  or  made  any  payment  or distribution of cash or other
property to stockholders with respect to its stock, or purchased or redeemed, or
made  any  agreements so to purchase or redeem, any shares of its capital stock;

     (v)     sold,  assigned  or  transferred  any  other  tangible  assets,  or
canceled  any  material  debts  or  claims,  except  in  the  ordinary course of
business;

     (vi)     sold, assigned or transferred any patent rights, trademarks, trade
names,  copyrights,  trade  secrets  or  other intangible assets or intellectual
property  rights,  or  disclosed any proprietary confidential information to any
person  except  to  customers  in  the  ordinary  course  of  business or to the
Purchaser  or  its  representatives;

     (vii)     suffered  any substantial losses or waived any rights of material
value,  whether  or not in the ordinary course of business, or suffered the loss
of  any  material  amount  of  prospective  business;

     (viii)     made any changes in employee compensation except in the ordinary
course  of  business  and  consistent  with  past  practices;

     (ix)     made  capital  expenditures or commitments therefor that aggregate
in  excess  of  $100,000;

     (x)     entered  into  any  other  transaction  other  than in the ordinary
course  of  business, or entered into any other material transaction, whether or
not  in  the  ordinary  course  of  business;

     (xi)     made  charitable  contributions  or  pledges in excess of $25,000;

     (xii)     suffered  any  material  damage,  destruction  or  casualty loss,
whether  or  not  covered  by  insurance;

     (xiii)     experienced  any  material  problems with labor or management in
connection  with  the  terms  and  conditions  of  their  employment;

     (xiv)     effected  any  two  or more events of the foregoing kind which in
the  aggregate  would  be  material  to  the  Company  or  its  subsidiaries; or

     (xv)     entered  into  an  agreement, written or otherwise, to take any of
the  foregoing  actions.

     (bbb)     -Use of Proceeds.  The proceeds from the sale of the Note will be
                ---------------
used  by  the  Company  for  working  capital  and  general  corporate purposes.

     (ab)     Public  Utility  Holding  Company  Act  and Investment Company Act
              ------------------------------------------------------------------
Status.  The Company is not a "holding company" or a "public utility company" as
such  terms  are  defined  in the Public Utility Holding Company Act of 1935, as
amended.  The  Company  is  not, and as a result of and immediately upon Closing
will not be, an "investment company" or a company "controlled" by an "investment
company,"  within the meaning of the Investment Company Act of 1940, as amended.

     (ac)     ERISA.  No  liability  to the Pension Benefit Guaranty Corporation
              -----
has  been  incurred  with  respect  to  any  Plan  by  the Company or any of its
subsidiaries  which  is  or  would  be materially adverse to the Company and its
subsidiaries.  The  execution  and  delivery of this Agreement and the issue and
sale  of  the  Note  will  not  involve  any transaction which is subject to the
prohibitions  of Section 406 of ERISA or in connection with which a tax could be
imposed  pursuant  to  Section  4975  of  the  Internal Revenue Code of 1986, as
amended,  provided  that,  if the Purchaser, or any person or entity that owns a
beneficial  interest  in  the  Purchaser,  is an "employee pension benefit plan"
(within  the meaning of Section 3(2) of ERISA) with respect to which the Company
is  a  "party  in  interest" (within the meaning of Section 3(14) of ERISA), the
requirements  of Sections 407(d)(5) and 408(e) of ERISA, if applicable, are met.
As used in this Section 2.1(ac), the term "Plan" shall mean an "employee pension
benefit  plan"  (as  defined  in  Section  3  of  ERISA)  which  is  or has been
established  or  maintained, or to which contributions are or have been made, by
the  Company  or  any  subsidiary  or  by  any trade or business, whether or not
incorporated,  which,  together  with  the  Company  or any subsidiary, is under
common  control,  as  described  in  Section  414(b)  or  (c)  of  the  Code.

     (ad)     Dilutive  Effect.  The  Company  understands and acknowledges that
              ----------------
the  number  of  Conversion  Shares issuable upon conversion of the Note and the
Warrant  Shares  issuable  upon exercise of the Warrant will increase in certain
circumstances.  The  Company  further  acknowledges that its obligation to issue
Conversion  Shares upon conversion of the Note in accordance with this Agreement
and its obligations to issue the Warrant Shares upon the exercise of the Warrant
in  accordance  with  this Agreement and the Warrant, is, in each case, absolute
and  unconditional regardless of the dilutive effect that such issuance may have
on  the  ownership  interest  of  other  stockholders  of  the  Company.

     (ae)   No "Directed Selling Efforts." In connection with the offer and sale
              --------------------------------
of  the  Note  and  the  Warrant, no distributor or any affiliates or any person
acting  on  behalf  of  the  Company  or  any  affiliate  of  the Company or any
distributor  has  engaged  in  any  "directed  selling efforts" (as such term is
defined  under  Regulation S) nor conducted any general solicitation relating to
the  offer to persons residing within the United States or to "U.S. Persons" (as
that  term  is  defined  under  Regulation  S).

     (af)  Filings Under the Act and the Exchange Act. The Company has filed all
            -------------------------------------------
reports  and  other  documents  required to be filed by it under the Act and the
Exchange  Act,  and  no  such  document, at the time it was filed, contained any
untrue  statement  of  a  material  fact  or  omitted  to  state a material fact
necessary  to  make  the  statements  contained  therein,  in  the  light of the
circumstances  under  which  they  were made, not misleading.  There has been no
material  change in the Company since its last filing with the Commission except
for  changes  in  senior  management.  The  Company  is  a "reporting issuer" as
defined  in  Rule  902 of Regulation S and will remain a reporting issuer for at
least  one  year  from  the  date  hereof.

     -     Representations  and  Warranties  of  the  Purchaser.  The  Purchaser
           ----------------------------------------------------
hereby  makes  the  following  representations  and  warranties  to the Company:

     (a)     Organization  and  Standing  of  the Purchaser.  The Purchaser is a
             ----------------------------------------------
corporation  or partnership duly incorporated or organized, validly existing and
in  good  standing  under  the  laws of the jurisdiction of its incorporation or
organization.

     (b)     Authorization and Power.  The Purchaser has the requisite power and
             -----------------------
authority  to  enter  into  and  perform this Agreement and to purchase the Note
being  sold  to  it  hereunder.  The execution, delivery and performance of this
Agreement  and  the  Registration  Rights  Agreement  by  such Purchaser and the
consummation by it of the transactions contemplated hereby and thereby have been
duly  authorized  by  all  necessary  corporate  or  partnership  action (if the
Purchaser  is  an  entity),  and  no  further  consent  or authorization of such
Purchaser  or its Board of Directors, stockholders, or partners, as the case may
be,  is  required.  Each of this Agreement and the Registration Rights Agreement
has  been  duly  authorized,  executed  and  delivered  by  such  Purchaser.

     (c)     -No  Conflicts.  The  execution,  delivery  and performance of this
              -------------
Agreement  and  the  Registration  Rights Agreement and the consummation by such
Purchaser of the transactions contemplated hereby and thereby or relating hereto
do  not  and  will  not  (i)  result  in a violation of such Purchaser's charter
documents  or bylaws or (ii) conflict with, or constitute a default (or an event
which  with  notice  or  lapse of time or both would become a default) under, or
give  to  others  any  rights  of  termination,  amendment,  acceleration  or
cancellation  of  any agreement, indenture or instrument to which such Purchaser
is  a  party,  or  result in a violation of any law, rule, or regulation, or any
order, judgment or decree of any court or governmental agency applicable to such
Purchaser  or its properties (except for such conflicts, defaults and violations
as  would  not, individually or in the aggregate, have a Material Adverse Effect
on  such  Purchaser).  Such  Purchaser  is  not  required to obtain any consent,
authorization or order of, or make any filing or registration with, any court or
governmental  agency  in  order for it to execute, deliver or perform any of its
obligations  under  this  Agreement  or  the  Registration  Rights Agreement, or
relating hereto or thereto, or to purchase the Note in accordance with the terms
hereof,  provided that for purposes of the representation made in this sentence,
such  Purchaser  is  assuming  and  relying  upon  the  accuracy of the relevant
representations  and  agreements  of  the  Company  herein.

     (d)     Acquisition  for  Investment.  The Purchaser is purchasing the Note
             ----------------------------
and  acquiring  the  Warrant  solely  for  its  own  account  for the purpose of
investment  and  not with a view to or for sale in connection with distribution.
The Purchaser does not have a present intention to sell the Note or the Warrant,
nor  a  present  arrangement  (whether  or  not legally binding) or intention to
effect  any  distribution of the Note or the Warrant to or through any person or
entity; provided, however, that by making the representations herein and subject
        --------  -------
to  Section  2.2(f) below, such Purchaser does not agree to hold the Note or the
Warrant for any minimum or other specific term and reserves the right to dispose
of  the  Note  or  the Warrant at any time in accordance with Federal securities
laws  applicable  to  such  disposition.  Such Purchaser acknowledges that it is
able  to  bear  the financial risks associated with an investment in the Note or
the  Warrant  and  that  it  has  been  given full access to such records of the
Company  and  the  subsidiaries  and  to  the  officers  of  the Company and the
subsidiaries  as  it  has  deemed  necessary  or  appropriate to conduct its due
diligence  investigation.

     (e)     Accredited Purchaser.  The Purchaser is an "accredited investor" as
             --------------------
defined  in  Regulation D promulgated under the Securities Act and is a resident
of  the  jurisdiction  indicated  on  Exhibit  A  hereto.

     (f)     Rule  144.  The  Purchaser understands that the Shares must be held
             ---------
indefinitely  unless  such  Shares are registered under the Securities Act or an
exemption from registration is available.  Such Purchaser acknowledges that such
person is familiar with Rule 144 of the rules and regulations of the Commission,
as  amended,  promulgated  pursuant to the Securities Act ("Rule 144"), and that
such  person  has  been advised that Rule 144 permits resales only under certain
circumstances.  Such  Purchaser  understands that to the extent that Rule 144 is
not  available,  such  person  will  be unable to sell any Shares without either
registration under the Securities Act or the existence of another exemption from
such  registration  requirement.

     (g)     General.  Such  Purchaser  understands  that  the  Shares are being
             -------
offered  and sold in reliance on a transactional exemption from the registration
requirement of Federal and state securities laws and the Company is relying upon
the  truth  and  accuracy  of  the  representations,  warranties,  agreements,
acknowledgments  and  understandings of such Purchaser set forth herein in order
to  determine  the  applicability of such exemptions and the suitability of such
Purchaser  to  acquire  the  Shares.

     (h)    Foreign  Purchaser. The Purchaser is  not a "U.S. person" as defined
            ------------------
under  Rule  902(o)  of Regulation S under the Securities Act.  The Purchaser is
not  acquiring  the  Note  and  Warrant  for  the account or benefit of any U.S.
person.

     (i) Offshore Transaction. The document effecting this purchase and sale has
          --------------------
been  executed  by the Purchaser outside the "United States" (as defined in Rule
902(p)  of Regulation S).  The Purchaser is acquiring the Note and Warrant in an
"offshore  transaction"  (as  defined in Rule 902(i) of Regulation S).  The Note
and  Warrant  were  not offered to the Purchaser in the United States and at the
time  of  execution of this Agreement and the time of any offer to the Purchaser
to purchase the Note and Warrant hereunder, the Purchaser was physically outside
of  the  United  States.

     (j)   Independent Investigation; Advertisements. The Purchaser, in offering
          -------------------------------------------
to  purchase  the  Note  and  Warrant  hereunder,  has  relied  solely  upon  an
independent  investigation  made  by  such Purchaser and its representatives, if
any, and has, prior to the date hereof, been given access to and the opportunity
to  examine all books and records of the Company, and all material contracts and
documents  of  the  Company.  In  making its investment decision to purchase the
Note  and  Warrant,  the  Purchaser  is  not  relying  on  any  oral  or written
representations  or  assurances  from  the  Company  or  any other person or any
representation  of  the  Company  or any other person other than as set forth in
this  Agreement,  or  on  any  information other than contained in the Company's
public  filings  required  under the Act and the Exchange Act.  The Purchaser is
not  subscribing  for  the  Note and Warrant as a result of or subsequent to any
advertisement,  article,  notice  or  other  communication  published  in  any
newspaper,  magazine  or  similar media or broadcast over television or radio or
presented  at  any  seminar.

Covenants

     The  Company  covenants  with the Purchaser as follows, which covenants are
for  the  benefit  of  the  Purchaser  and  its  permitted assignees (as defined
herein).

          -Securities  Compliance.
           ----------------------

     (a)     The  Company  shall  notify the Commission in accordance with their
rules  and  regulations,  of  the  transactions  contemplated  by  any  of  the
Transaction  Documents,  and  shall take all necessary action and proceedings as
may  be  required  and permitted by applicable law, rule and regulation, for the
legal  and valid issuance of the Note and the Warrant Shares to the Purchaser or
subsequent  holders.

     (b)     The  Company  is  relying  upon  the  truth  and  accuracy  of  the
representations,  warranties,  agreements, acknowledgments and understandings of
the  Purchaser  set  forth  herein  in  order  to determine the applicability of
Federal  and  state  securities  laws  exemptions  and  the  suitability  of the
Purchaser  to  acquire  the  Note.

          -Registration and Listing.  The Company will cause its Common Stock to
           ------------------------
continue  to  be  registered  under Sections 12(b) or 12(g) of the Exchange Act,
will  comply in all respects with its reporting and filing obligations under the
Exchange  Act,  will  comply  with  all requirements related to any registration
statement filed pursuant to this Agreement or the Registration Rights Agreement,
and  will  not take any action or file any document (whether or not permitted by
the  Securities Act or the rules promulgated thereunder) to terminate or suspend
such  registration  or  to  terminate  or  suspend  its  reporting  and  filing
obligations  under  the  Exchange  Act  or  Securities  Act, except as permitted
herein.  The  Company  will take all action necessary to continue the listing or
trading of its Common Stock on the over-the-counter electronic bulletin board or
any  successor  market.

          -Inspection  Rights.  The Company shall permit, during normal business
           ------------------
hours  and  upon reasonable request and reasonable notice, each Purchaser or any
employees, agents or representatives thereof, so long as such Purchaser shall be
obligated  hereunder to purchase the Note or shall beneficially own any Note, or
shall  own  Conversion Shares which, in the aggregate, represent more than 2% of
the  total  combined  voting power of all voting securities then outstanding, to
examine and make reasonable copies of and extracts from the records and books of
account  of,  and  visit  and  inspect  the  properties,  assets, operations and
business of the Company and any subsidiary, and to discuss the affairs, finances
and  accounts  of  the  Company  and  any  subsidiary  with any of its officers,
consultants,  directors,  and  key  employees.

          -Compliance  with  Laws.  The  Company  shall  comply,  and cause each
           ----------------------
subsidiary  to  comply, with all applicable laws, rules, regulations and orders,
noncompliance  with  which  could  have  a  Material  Adverse  Effect.

          -Keeping  of Records and Books of Account.  The Company shall keep and
           ----------------------------------------
cause  each  subsidiary  to keep adequate records and books of account, in which
complete  entries  will  be  made  in accordance with GAAP consistently applied,
reflecting  all  financial transactions of the Company and its subsidiaries, and
in which, for each fiscal year, all proper reserves for depreciation, depletion,
obsolescence,  amortization,  taxes,  bad debts and other purposes in connection
with  its  business  shall  be  made.

          -Reporting  Requirements.  The  Company shall furnish the following to
           -----------------------
each  Purchaser  so  long  as  such  Purchaser  shall  be obligated hereunder to
purchase  the  Note  or shall beneficially own any Note, or shall own Conversion
Shares  which,  in  the  aggregate, represent more than 2% of the total combined
voting  power of all voting securities then outstanding, provided, however, that
                                                         --------  -------
the  Company  shall  not be obligated to furnish the following, if the following
reports  have  been  filed  by  the  Company with the Commission pursuant to the
Commission's  "electronic  data  gathering  and  retrieval"  (EDGAR)  service:

     (a)     Quarterly Reports filed with the Commission on Form 10-Q as soon as
available,  and  in  any event within 45 days after the end of each of the first
three  (3)  fiscal  quarters  of  the  Company;

     (b)     Annual  Reports  filed  with the Commission on Form 10-K as soon as
available,  and in any event within 90 days after the end of each fiscal year of
the  Company;  and

     (c)     Copies of all notices and information, including without limitation
notices  and proxy statements in connection with any meetings, that are provided
to  holders  of  shares  of Common Stock, contemporaneously with the delivery of
such  notices  or  information  to  such  holders  of  Common  Stock.

          -Amendments.  The  Company  shall  not amend or waive any provision of
           ----------
the  Certificate  or  Bylaws of the Company, or Registration Rights Agreement in
any  way  that  would  adversely  affect  the liquidation preferences, dividends
rights,  conversion rights, voting rights or redemption rights of the holders of
the  Note.

     -     Other  Agreements.  The Company shall not enter into any agreement in
           -----------------
which  the terms of such agreement would restrict or impair the right or ability
to  perform  of  the  Company  or any subsidiary under any Transaction Document.

     -     Distributions.  So  long  as any Note remain outstanding, the Company
           -------------
agrees  that  it  shall  not  (i)  declare  or  pay  any  dividends  or make any
distributions  to  any  holder(s)  of Common Stock or (ii) purchase or otherwise
acquire  for  value,  directly  or  indirectly, any Common Stock or other equity
security  of  the  Company.

          -Intentionally  Omitted.
           ----------------------

          Regulation  S.  The  Company  covenants and agrees that if the Company
          -------------
fails  to  register  the  Conversion Shares within 60 days from the Closing Date
under  the  terms  and  conditions of the Registration Rights Agreement attached
hereto  as  Exhibit  D,  then  for so long as such registration statement is not
effective  and  as  any  of  the  Shares  remain  outstanding and continue to be
"restricted securities" within the meaning of Rule 144 under the Securities Act,
the  Company  shall, in order to permit resales of any of the Shares pursuant to
Regulation  S  under  the  Securities  Act,  (a)  continue  to file all material
required to be filed pursuant to Section 13(a) or 15(d) of the Exchange Act, and
(b)  not  knowingly  engage  in  directed selling efforts in connection with the
resale  of  securities  by  any  Purchaser  under  Regulation  S.

          -Future  Financings.  The Company covenants and agrees that during the
           ------------------
period  from  the  Closing  Date through the 180th day immediately following the
effective  date  of  the  Registration Statement (as such term is defined in the
Registration  Rights  Agreement),  the  Company  shall  not, without the written
consent  of  the Purchaser, offer, sell or issue: (i) any shares of Common Stock
or  (ii) any securities convertible or exchangeable into Common Stock other than
a  Permitted  Financing.  For  purposes  of  this  Section  3.12,  a  "Permitted
Financing"  shall  mean  shares  of  Common  Stock  to be issued pursuant to the
Convertible  Note  Purchase  Agreement,  dated  November  19, 2001, by and among
certain  investors  and  the  Company.

     -     Reservation  of Shares.  Immediately upon the filing of a Certificate
           ----------------------
of  Amendment  to  the  Company's  Certificate  of  Incorporation  with the Utah
Secretary of State increasing its authorized capital stock and so long as any of
the  Notes  or  Warrants  remain  outstanding, the Company shall take all action
necessary  to  at  all  times  have  authorized, and reserved for the purpose of
issuance,  no  less  than 150% of the aggregate number of shares of Common Stock
needed  to  provide  for  the  issuance of the Conversion Shares and the Warrant
Shares.

     -     Transfer  Agent  Instructions.  The  Company  shall issue irrevocable
           -----------------------------
instructions  to its transfer agent, and any subsequent transfer agent, to issue
certificates,  registered  in  the  name  of  each  Purchaser  or its respective
nominee(s),  for the Conversion Shares and the Warrant Shares in such amounts as
specified  from time to time by each Purchaser to the Company upon conversion of
the  Note  or  exercise  of the Warrant in the form of Exhibit E attached hereto
(the  "Irrevocable  Transfer Agent Instructions").  Prior to registration of the
Conversion  Shares  and  the  Warrant  Shares under the Securities Act, all such
certificates  shall bear the restrictive legend specified in Section 6.1 of this
Agreement.  The  Company warrants that no instruction other than the Irrevocable
Transfer  Agent  Instructions  referred to in this Section 3.14 will be given by
the  Company to its transfer agent and that the Shares shall otherwise be freely
transferable  on  the  books  and  records  of  the Company as and to the extent
provided  in  this  Agreement and the Registration Rights Agreement.  Nothing in
this  Section  3.14  shall  affect  in  any way each Purchaser's obligations and
agreements  set  forth  in  Section 6.1 to comply with all applicable prospectus
delivery  requirements,  if  any,  upon  resale  of  the Shares.  If a Purchaser
provides the Company with an opinion of counsel, in a generally acceptable form,
to  the  effect  that a public sale, assignment or transfer of the Shares may be
made without registration under the Securities Act or the Purchaser provides the
Company  with reasonable assurances that the Shares can be sold pursuant to Rule
144  without  any  restriction  as  to the number of securities acquired as of a
particular  date that can then be immediately sold, the Company shall permit the
transfer,  and,  in  the  case  of the Conversion Shares and the Warrant Shares,
promptly  instruct  its transfer agent to issue one or more certificates in such
name  and  in  such denominations as specified by such Purchaser and without any
restrictive  legend.  The  Company  acknowledges  that  a  breach  by  it of its
obligations under this Section 3.14 will cause irreparable harm to the Purchaser
by  vitiating  the  intent  and  purpose of the transaction contemplated hereby.
Accordingly, the Company acknowledges that the remedy at law for a breach of its
obligations  under this Section 3.14 will be inadequate and agrees, in the event
of  a  breach  or  threatened  breach  by  the Company of the provisions of this
Section  3.14,  that  the  Purchaser shall be entitled, in addition to all other
available  remedies,  to  an  order and/or injunction restraining any breach and
requiring  immediate  issuance  and  transfer,  without the necessity of showing
economic  loss  and  without  any  bond  or  other  security  being  required.

Conditions

     -     Conditions  Precedent  to  the  Obligation of the Company to Sell the
           ---------------------------------------------------------------------
Note.  The  obligation  hereunder  of the Company to issue and sell the Note and
the  Warrant  to  the  Purchaser is subject to the satisfaction or waiver, at or
before  the  Closing  Date,  of  each  of the 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)     Accuracy  of  Each Purchaser's Representations and Warranties.  The
             -------------------------------------------------------------
representations  and  warranties  of each Purchaser shall be true and correct in
all  material  respects  as  of the date when made and as of the Closing Date as
though  made  at  that  time, except for representations and warranties that are
expressly  made  as of a particular date, which shall be true and correct in all
material  respects  as  of  such  date.

     (b)     Performance  by the Purchaser.  The Purchaser shall have performed,
             -----------------------------
satisfied  and  complied in all material respects with all covenants, agreements
and conditions required by this Agreement to be performed, satisfied or complied
with  by  the  Purchaser  at  or  prior  to  the  Closing  Date.

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

     Section  4.2     Conditions Precedent to the Obligation of the Purchaser to
                      ----------------------------------------------------------
Purchase the Note.  The obligation hereunder of the Purchaser to acquire and pay
-----------------
for  the  Note  and  the Warrant is subject to the satisfaction or waiver, at or
before  the  Closing  Date,  of  each  of the conditions set forth below.  These
conditions  are  for  the  Purchaser's  sole  benefit  and  may be waived by the
Purchaser  at  any  time  in  its  sole  discretion.

     (a)     Accuracy  of the Company's Representations and Warranties.  Each of
             ---------------------------------------------------------
the  representations  and warranties of the Company shall be true and correct in
all  material  respects  as  of the date when made and as of the Closing Date as
though  made  at that time (except for representations and warranties that speak
as  of  a  particular  date),  which  shall  be true and correct in all material
respects  as  of  such  date.

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

     (c)     No  Suspension,  Etc.  From  the  date  hereof to the Closing Date,
             ---------------------
trading  in  the  Company's  Common  Stock  shall not have been suspended by the
Commission  (except  for any suspension of trading of limited duration agreed to
by the Company, which suspension shall be terminated prior to the Closing Date),
and,  at  any time prior to the Closing Date, trading in securities generally as
reported  by  Bloomberg  Financial  Markets  ("Bloomberg")  shall  not have been
suspended  or  limited,  or  minimum  prices  shall not have been established on
securities  whose  trades  are  reported  by Bloomberg, or on the New York Stock
Exchange, nor shall a banking moratorium have been declared either by the United
States or New York State authorities, nor shall there have occurred any material
outbreak  or  escalation  of  hostilities  or  other  national  or international
calamity  or  crisis of such magnitude in its effect on, or any material adverse
change  in  any  financial  market  which, in each case, in the judgment of such
Purchaser,  makes  it  impracticable  or  inadvisable  to  purchase  the  Note.

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

     (e)     No Proceedings or Litigation.  No action, suit or proceeding before
             ----------------------------
any  arbitrator  or any governmental authority shall have been commenced, and no
investigation  by any governmental authority shall have been threatened, against
the  Company  or any subsidiary, or any of the officers, directors or affiliates
of  the  Company  or  any  subsidiary seeking to restrain, prevent or change the
transactions  contemplated  by  this Agreement, or seeking damages in connection
with  such  transactions.

     (f)     Opinion  of Counsel, Etc.  At the Closing, the Purchaser shall have
             -------------------------
received an opinion of counsel to the Company, dated the date of the Closing, in
the  form  of Exhibit F hereto, and such other certificates and documents as the
Purchaser  or  its  counsel  shall  reasonably  require incident to the Closing.

     (g)     Registration  Rights  Agreement.  At the Closing, the Company shall
             -------------------------------
have executed and delivered the Registration Rights Agreement to each Purchaser.

     (h)     Certificates.  The  Company  shall  have  executed and delivered to
             ------------
each  Purchaser, the certificates (in such denominations as such Purchaser shall
request)  for  the Note and the Warrant being purchased by such Purchaser at the
Closing.

     (i)     Resolutions.  Prior  to the Closing Date, the Board of Directors of
             -----------
the  Company shall have adopted resolutions consistent with Section 2.1(b) above
in  a  form  reasonably  acceptable  to  such  Purchaser  (the  "Resolutions").

     (j)     Reservation of Shares. Immediately upon the filing of a Certificate
             ---------------------
of  Amendment  to  the  Company's  Certificate  of  Incorporation  with the Utah
Secretary  of  State  increasing its authorized capital stock, the Company shall
authorize, reserve and maintain out of its authorized and unissued Common Stock,
solely  for the purpose of effecting the conversion of the Note and the exercise
of the Warrant, a number of shares of Common Stock equal to at least 150% of the
aggregate  number  of  Conversion  Shares  issuable  upon conversion of the Note
outstanding  on  the Closing Date and the number of Warrant Shares issuable upon
exercise  of  the  Warrant assuming such Warrant was granted on the Closing Date
(after  giving  effect  to  the Note and the Warrant to be issued on the Closing
Date and assuming such Note and Warrant were fully convertible or exercisable on
such  date  regardless  of  any  limitation  on  the  timing  or  amount of such
conversions  or  exercises).

     (k)     Transfer  Agent  Instructions.  The  Irrevocable  Transfer  Agent
             -----------------------------
Instructions,  in  the  form  of  Exhibit  E  attached  hereto,  shall have been
delivered  to  and  acknowledged  in  writing  by  the Company's transfer agent.

     (l)     Secretary's  Certificate.  The Company shall have delivered to such
             ------------------------
Purchaser a secretary's certificate, dated as of the Closing Date, as to (i) the
Resolutions,  (ii)  the  Certificate, (iii) the Bylaws, each as in effect at the
Closing,  and  (iv)  the authority and incumbency of the officers of the Company
executing  the  Transaction  Documents  and  any  other documents required to be
executed  or  delivered  in  connection  therewith.

Registration  Rights

     At  the  Closing,  the  Company  and  the  Purchaser  shall  enter  into  a
Registration  Rights  Agreement  in  the  form  attached  hereto  as  Exhibit D.

Certificate  Legend

     -     Legend.  Each  certificate representing the Note and the Warrant and,
           ------
if appropriate, securities issued upon conversion and exercise thereof, shall be
stamped or otherwise imprinted with a legend substantially in the following form
(in addition to any legend required by applicable state securities or "blue sky"
laws):

THE  SECURITIES REPRESENTED BY THIS CERTIFICATE (THE "SECURITIES") HAVE NOT BEEN
REGISTERED  UNDER  THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT")
OR  ANY  STATE  SECURITIES  LAWS  AND  MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE
DISPOSED  OF  UNLESS  REGISTERED  UNDER  THE SECURITIES ACT AND UNDER APPLICABLE
STATE SECURITIES LAWS OR PEN INTERCONNECT INC. SHALL HAVE RECEIVED AN OPINION OF
ITS  COUNSEL  THAT  REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND
UNDER  THE  PROVISIONS  OF  APPLICABLE  STATE  SECURITIES  LAWS IS NOT REQUIRED.

     The  Company  agrees  to reissue certificates representing the Note and the
Warrant, without the legend set forth above if at such time, prior to making any
transfer  of any Note, Warrant, Conversion Shares or Warrant Shares, such holder
thereof shall give written notice to the Company describing the manner and terms
of  such  transfer  and  removal  as  the  Company may reasonably request.  Such
proposed  transfer will not be effected until: (a) the Company has notified such
holder  that  either  (i) in the opinion of Company counsel, the registration of
such Note, Warrant, Conversion Shares or Warrant Shares under the Securities Act
is  not  required  in  connection  with  such  proposed  transfer;  or  (ii)  a
registration  statement  under  the  Securities  Act  covering  such  proposed
disposition  has  been  filed  by the Company with the Commission and has become
effective under the Securities Act; and (b) the Company has notified such holder
that  either:  (i)  in  the  opinion  of  Company  counsel,  the registration or
qualification  under  the  securities  or  "blue  sky"  laws of any state is not
required  in  connection with such proposed disposition, or (ii) compliance with
applicable  state  securities or "blue sky" laws has been effected.  The Company
will  use its best efforts to respond to any such notice from a holder within 10
days.  In  the  case  of any proposed transfer under this Section 6, the Company
will  use reasonable efforts to comply with any such applicable state securities
or  "blue sky" laws, but shall in no event be required, in connection therewith,
to qualify to do business in any state where it is not then qualified or to take
any  action that would subject it to tax or to the general service of process in
any  state where it is not then subject.  The restrictions on transfer contained
in  Section  6.1  shall  be in addition to, and not by way of limitation of, any
other restrictions on transfer contained in any other section of this Agreement.

Termination

          -Termination  by  Mutual Consent.  This Agreement may be terminated at
           -------------------------------
any  time prior to the Closing Date by the mutual written consent of the Company
and  the  Purchaser.

          -Other Termination.  This Agreement may be terminated by the action of
           -----------------
the  Board  of  Directors  of the Company or by the Purchaser at any time if the
Closing  shall  not  have  been  consummated by October 31, 2001, as long as the
failure  to  so  consummate  is  not  the  fault  of  the  terminating  party.

     -     Effect of Termination.  In the event of termination by the Company or
           ---------------------
the  Purchaser,  written  notice  thereof  shall forthwith be given to the other
party  and  the transactions contemplated by this Agreement and the Registration
Rights Agreement shall be terminated without further action by either party.  If
this  Agreement  is  terminated  as  provided in Section 7.1 or 7.2 herein, this
Agreement  shall  become  void  and  of  no further force and effect, except for
Sections  9.1  and  9.2,  and  Article VIII herein.  Nothing in this Section 7.3
shall  be  deemed to release the Company or any Purchaser from any liability for
any  breach  under  this  Agreement  or the Registration Rights Agreement, or to
impair  the  rights  of  the  Company  and  the  Purchaser  to  compel  specific
performance  by  the other party of its obligations under this Agreement and the
Registration  Rights  Agreement.

Indemnification

     -     General Indemnity.  The Company agrees to indemnify and hold harmless
           -----------------
the  Purchaser  (and  its  respective  directors,  officers, affiliates, agents,
successors  and  assigns)  from  and  against  any  and all losses, liabilities,
deficiencies,  costs,  damages  and  expenses  (including,  without  limitation,
reasonable attorney's fees, charges and disbursements) incurred by the Purchaser
as a result of any inaccuracy in or breach of the representations, warranties or
covenants  made  by  the  Company herein.  The Purchaser agrees to indemnify and
hold  harmless  the  Company  and  its  directors, officers, affiliates, agents,
successors  and  assigns  from  and  against  any  and  all losses, liabilities,
deficiencies,  costs,  damages  and  expenses  (including,  without  limitation,
reasonable attorneys fees, charges and disbursements) incurred by the Company as
result  of  any  inaccuracy  in  or breach of the representations, warranties or
covenants  made  by  the  Purchaser  herein.

          -Indemnification  Procedure.  Any  party  entitled  to indemnification
           --------------------------
under this Article VIII (an "indemnified party") will give written notice to the
indemnifying  party  of  any matters giving rise to a claim for indemnification;
provided, that the failure of any party entitled to indemnification hereunder to
give  notice  as provided herein shall not relieve the indemnifying party of its
obligations  under  this Article VIII except to the extent that the indemnifying
party  is  actually  prejudiced  by  such  failure  to give notice.  In case any
action,  proceeding  or claim is brought against an indemnified party in respect
of  which  indemnification  is sought hereunder, the indemnifying party shall be
entitled  to  participate  in  and,  unless  in  the  reasonable judgment of the
indemnified  party  a conflict of interest between it and the indemnifying party
may  exist  with  respect  of  such  action,  proceeding or claim, to assume the
defense  thereof  with counsel reasonably satisfactory to the indemnified party.
In  the  event  that the indemnifying party advises an indemnified party that it
will  contest  such  a  claim for indemnification hereunder, or fails, within 30
days of receipt of any indemnification notice to notify, in writing, such person
of  its  election to defend, settle or compromise, at its sole cost and expense,
any  action,  proceeding or claim (or discontinues its defense at any time after
it  commences  such  defense),  then  the  indemnified party may, at its option,
defend,  settle  or  otherwise  compromise  or pay such action or claim.  In any
event,  unless  and until the indemnifying party elects in writing to assume and
does  so  assume  the  defense  of  any  such  claim,  proceeding or action, the
indemnified party's costs and expenses arising out of the defense, settlement or
compromise  of  any  such action, claim or proceeding shall be losses subject to
indemnification hereunder.  The indemnified party shall cooperate fully with the
indemnifying  party  in  connection  with any negotiation or defense of any such
action  or claim by the indemnifying party and shall furnish to the indemnifying
party  all  information  reasonably  available  to  the  indemnified party which
relates  to  such  action  or  claim.  The  indemnifying  party  shall  keep the
indemnified party fully apprised at all times as to the status of the defense or
any  settlement  negotiations  with  respect thereto.  If the indemnifying party
elects  to  defend any such action or claim, then the indemnified party shall be
entitled  to  participate in such defense with counsel of its choice at its sole
cost and expense.  The indemnifying party shall not be liable for any settlement
of  any  action, claim or proceeding effected without its prior written consent.
Notwithstanding  anything in this Article VIII to the contrary, the indemnifying
party  shall  not, without the indemnified party's prior written consent, settle
or  compromise  any claim or consent to entry of any judgment in respect thereof
which  imposes  any future obligation on the indemnified party or which does not
include,  as  an  unconditional  term thereof, the giving by the claimant or the
plaintiff to the indemnified party of a release from all liability in respect of
such  claim.  The indemnification required by this Article VIII shall be made by
periodic  payments  of  the amount thereof during the course of investigation or
defense, as and when bills are received or expense, loss, damage or liability is
incurred,  so  long  as  the indemnified party irrevocably agrees to refund such
moneys  if it is ultimately determined by a court of competent jurisdiction that
such  party  was  not  entitled to indemnification.  Notwithstanding anything in
this  Article  VIII  to  the  contrary, the Purchaser shall be liable under this
Article  VIII  for  only  that  amount of indemnification as does not exceed the
proceeds  to  such Purchaser as a result of the sale of the Conversion Shares by
the  Purchaser.  The  indemnity agreements contained herein shall be in addition
to  (a)  any  cause of action or similar rights of the indemnified party against
the indemnifying party or others, and (b) any liabilities the indemnifying party
may  be  subject  to  pursuant  to  the  law.

Miscellaneous

     -     Fees and Expenses.  Each party shall pay the fees and expenses of its
           -----------------
advisors,  counsel,  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.  In addition, the Company
shall  pay  all  reasonable  fees  and  expenses  incurred  by  the Purchaser in
connection with the filing and declaration of effectiveness by the Commission of
the  Registration  Statement  (as defined in the Registration Rights Agreement),
any  amendments,  modifications or waivers of this Agreement or any of the other
Transaction  Documents  or  incurred  in connection with the enforcement of this
Agreement  and  any  of  the  other  Transaction  Documents,  including, without
limitation,  all  reasonable  attorneys fees and expenses. The Company shall pay
all  stamp  or other similar taxes and duties levied in connection with issuance
of  the  Note  pursuant  hereto.

          -Specific  Enforcement,  Consent  to  Jurisdiction.
           -------------------------------------------------

     (a)     The  Company  and  the  Purchaser  acknowledge  and  agree  that
irreparable  damage  would occur in the event that any of the provisions of this
Agreement  or the Registration Rights Agreement were not performed in accordance
with  their specific terms or were otherwise breached.  It is accordingly agreed
that the parties shall be entitled to an injunction or injunctions to prevent or
cure  breaches  of  the  provisions of this Agreement or the Registration Rights
Agreement  and  to  enforce  specifically  the  terms  and  provisions hereof or
thereof,  this being in addition to any other remedy to which any of them may be
entitled  by  law  or  equity.

     (b)     Each  of  the  Company  and  the  Purchaser  (i) hereby irrevocably
submits  to  the  exclusive  jurisdiction  of  the  United States District Court
sitting  in  the  Southern  District  of  New York for the purposes of any suit,
action  or  proceeding  arising  out  of  or  relating  to this Agreement or the
Registration  Rights  Agreement and (ii) hereby waives, and agrees not to assert
in  any  such  suit,  action  or proceeding, any claim that it is not personally
subject  to  the jurisdiction of such court, that the suit, action or proceeding
is  brought  in  an  inconvenient forum or that the venue of the suit, action or
proceeding  is  improper.  Any  suit,  action  or  proceeding  arising out of or
relating  to  this  Agreement  or  the  Registration Rights Agreement brought by
either  the Company or the Purchaser shall be brought in the jurisdiction of the
United States District Court sitting in the Southern District of New York.  Each
of  the  Company  and the Purchaser consents to process being served in any such
suit,  action  or  proceeding  by  mailing  a  copy thereof to such party at the
address  in  effect  for notices to it under this Agreement and agrees that such
service  shall  constitute  good  and  sufficient  service of process and notice
thereof.  Nothing  in  this Section 9.2 shall affect or limit any right to serve
process  in  any  other  manner  permitted  by  law.

          -Entire  Agreement;  Amendment.  This  Agreement  contains  the entire
           -----------------------------
understanding  of  the  parties  with respect to the matters covered hereby and,
except as specifically set forth herein or in the Transaction Documents, neither
the  Company  nor the Purchaser makes any representations, warranty, covenant or
undertaking with respect to such matters.  No provision of this Agreement may be
waived  or  amended other than by a written instrument signed by the Company and
the  Purchaser, and no provision hereof may be waived other than by an a written
instrument signed by the party against whom enforcement of any such amendment or
waiver  is  sought.  No  consideration shall be offered or paid to any person to
amend  or  consent  to  a  waiver or modification of any provision of any of the
Transaction  Documents  unless  the same consideration is also offered to all of
the  parties to the Transaction Documents or holder of the Note, as the case may
be.

          -Notices.  Any  notice, demand, request, waiver or other communication
           -------
required  or  permitted  to  be given hereunder shall be in writing and shall be
effective  (a)  upon hand delivery by telex (with correct answer back received),
telecopy or facsimile at the address or number designated below (if delivered on
a  business  day  during  normal  business  hours  where  such  notice  is to be
received), or the first business day following such delivery (if delivered other
than  on  a business day during normal business hours where such notice is to be
received)  or  (b)  on  the second business day following the date of mailing by
express  courier  service,  fully  prepaid,  addressed  to such address, or upon
actual  receipt of such mailing, whichever shall first occur.  The addresses for
such  communications  shall  be:

If  to  the  Company:            THE  AMANDA  COMPANY,  INC
                                 13765  Alton  Parkway,  Suite  F
                                 Irvine,  California  92618
                                 Attention:  Chief  Executive  Officer
                                 Telephone  No.:  (949)  859-6279
                                 Facsimile  No.:  (949)  859-4380

If  to  any  Purchaser:          At  the  address of such Purchaser set forth on
                                 Exhibit  A  to  this  Agreement.

with  copies  (which  copies
shall  not  constitute  notice
to  the  Company)  to:          Naccarato  &  Associates
                                19600  Fairchild,  Suite  260
                                Irvine,  California  92618
                                Attention:  Owen  M.  Naccarato,  Esq.
                                Telephone  No.:  (949)  851-9261
                                Facsimile  No.:  (949)  851-9262

     Any  party  hereto  may from time to time change its address for notices by
giving  at  least  ten  (10)  days written notice of such changed address to the
other  party  hereto.

     -     Waivers.  No  waiver  by  either party of any default with respect to
           -------
any  provision, condition or requirement of this Agreement shall be deemed to be
a continuing waiver in the future or a waiver of any other provisions, condition
or  requirement hereof, nor shall any delay or omission of any party to exercise
any  right  hereunder  in  any  manner  impair  the  exercise of any  such right
accruing  to  it  thereafter.

          -Headings.  The  article,  section  and  subsection  headings  in this
           --------
Agreement  are  for  convenience  only  and  shall not constitute a part of this
Agreement  for  any other purpose and shall not be deemed to limit or affect any
of  the  provisions  hereof.

          -Successors  and  Assigns.  This  Agreement  shall be binding upon and
           ------------------------
inure to the benefit of the parties and their successors and assigns.  After the
Closing,  the  assignment  by  a party to this Agreement of any rights hereunder
shall  not  affect  the  obligations  of  such  party  under  this  Agreement.

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

          -Governing  Law.  This Agreement shall be governed by and construed in
           --------------
accordance  with  the  internal  laws  of  the State of New York, without giving
effect  to  the  choice  of  law  provisions.

        Survival.  The  representations  and  warranties  of the Company and the
        --------
Purchaser  contained  in Sections 2.1(o) and (s) should survive indefinitely and
those  contained  in  Article II, with the exception of Sections 2.1(o) and (s),
shall  survive  the execution and delivery hereof and the Closing until the date
three  (3)  years  from  the  Closing Date, and the agreements and covenants set
forth in Article I, III, V, VII, VIII and IX of this Agreement shall survive the
execution  and  delivery  hereof  and  the Closing hereunder until the Purchaser
beneficially  owns  (determined in accordance with Rule 13d-3 under the Exchange
Act)  less  than  2% of the total combined voting power of all voting securities
then  outstanding,  provided,  that  Sections 3.1, 3.2, 3.4, 3.5, 3.7, 3.8, 3.9,
3.12,  3.13, and 3.14 shall not expire until the Registration Statement required
by  Section  2  of the Registration Rights Agreement is no longer required to be
effective  under  the  terms  and  conditions  of Registration Rights Agreement.

          -Counterparts.  This  Agreement  may  be  executed  in  any  number of
           ------------
counterparts,  all  of  which  taken  together shall constitute one and the same
instrument and shall become effective when counterparts have been signed by each
party  and  delivered  to the other parties hereto, it being understood that all
parties  need  not  sign  the  same  counterpart.  In the event any signature is
delivered  by  facsimile  transmission,  the  party using such means of delivery
shall  cause  four  (4)  additional  executed  signature  pages to be physically
delivered  to  the  other  parties  within  five  (5)  days of the execution and
delivery  hereof.

          -Publicity.  The  Company  agrees  that it will not disclose, and will
           ---------
not  include  in  any public announcement, the name of the Purchaser without the
consent  of  the Purchaser, which consent shall not be unreasonably withheld, or
unless  and  until  such disclosure is required by law or applicable regulation,
and  then  only  to  the  extent  of  such  requirement.

          -Severability.  The  provisions of this Agreement and the Registration
           ------------
Rights  Agreement  are  severable  and, in the event that any court of competent
jurisdiction  shall  determine that any one or more of the provisions or part of
the  provisions contained in this Agreement or the Registration Rights Agreement
shall,  for  any  reason, be held to be invalid, illegal or unenforceable in any
respect,  such  invalidity,  illegality or unenforceability shall not affect any
other  provision  or  part  of a provision of this Agreement or the Registration
Rights  Agreement  shall be reformed and construed as if such invalid or illegal
or  unenforceable provision, or part of such provision, had never been contained
herein,  so  that  such  provisions would be valid, legal and enforceable to the
maximum  extent  possible.

          -Further  Assurances.  From and after the date of this Agreement, upon
           -------------------
the  request  of  the  Purchaser  or  the  Company,  each of the Company and the
Purchaser  shall  execute  and  deliver  such  instruments,  documents and other
writings  as  may  be reasonably necessary or desirable to confirm and carry out
and to effectuate fully the intent and purposes of this Agreement, the Note, the
Conversion  Shares,  the Warrant, the Warrant Shares and the Registration Rights
Agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

     IN  WITNESS  WHEREOF,  the  parties hereto have caused this Agreement to be
duly  executed by their respective authorized officer as of the date first above
written.

     THE  AMANDA  COMPANY,  INC

                                     By  /s/  Jose  Candia
                                         -----------------
                                     Name:  Jose  Candia
                                     Title:   Chief  Executive  Officer

                                AMRO  INTERNATIONAL  SA

                                     By:  /s/  H.  U.  Bachofen
                                     Name:  H.  U.  Bachofen
                                     Title:

<PAGE>
                                    EXHIBIT A

                    Purchaser / Number of Notes and Warrants

Name  and  Residence            Number  of  Notes             Dollar  Amount
of  Purchaser                   and  Warrants  Purchased      of Investment
----------------------          ------------------------      --------------

Alpha  Capital  AG               Note:  $50,000.00  Note.     $50,000.00
                                 ----

<PAGE>
                                    EXHIBIT  B

                       Form of Convertible Promissory Note

<PAGE>
                                    EXHIBIT C

                                 Form of Warrant

<PAGE>
                                    EXHIBIT D

                      Form of Registration Rights Agreement

<PAGE>
                                    EXHIBIT E

                       Form of Transfer Agent Instructions

<PAGE>
                                    EXHIBIT F

                                 Form of Opinion

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