Document:

Exhibit 10.13.1

                           HEALTH SCIENCES GROUP, INC.
                        2003 STOCK OPTION, DEFERRED STOCK
                            AND RESTRICTED STOCK PLAN
                             STOCK OPTION AGREEMENT

NAME:  Jacob Engel

                  This AGREEMENT is made effective as of the 11th day of August,
2003 (the "Option Grant Date"),  by and between HEALTH SCIENCES  GROUP,  INC., a
corporation (the "Company") and Jacob Engel (the "Optionee").

                                    RECITALS

                  WHEREAS, the Board of Directors of the Company has established
the 2003 Stock Option,  Deferred  Stock and  Restricted  Stock Plan (the "Plan")
effective as of August 7, 2003, and

                  WHEREAS,   pursuant  to  the  provisions  of  said  Plan,  the
Administrator of the Company, by action duly taken on August 7, 2003, granted to
the Optionee an option or options (the  "Option(s)")  to purchase  shares of the
Common Stock of the Company on the terms and conditions set forth herein.

                                    AGREEMENT

         NOW,  THEREFORE,  in  consideration  of the foregoing and of the mutual
covenants  set forth  herein  and other  good and  valuable  consideration,  the
parties hereto agree as follows:

         1. THE OPTION(S).  The Optionee may, at his/her option, purchase all or
any part of an  aggregate of  2,000,000  shares of Common  Stock (the  "Optioned
Shares"), at the prices of $1.25 to $2.75 per share (the "Option Price"), on the
terms and conditions set forth herein below.

         2. OPTION TYPE;  EXERCISE DATES AND EXERCISE.  The Options are intended
to qualify as Incentive  Stock  Options to the extent  allowable.  The Option(s)
shall be exercisable I.E., vested, as set forth in the vesting formula below for
Option Shares which are not  Restricted  Stock,  or, in  Optionee's  discretion,
immediately for Restricted  Stock which shall be subject to forfeiture  pursuant
to the same vesting formula as pertains to the exercise of the Options:

         3. VESTING  FORMULA.  Subject to earlier  acceleration  as set forth in
Optionee's  Employment Agreement dated August 11, 2003 ("Employment  Agreement")
at paragraph  8(c) in the event of discharge  without Cause or  Resignation  for
Good Reason (which provisions are incorporated herein by reference), the Options
granted  hereunder  shall be  subject  to  vesting,  if and  when the  following
Performance  Benchmarks  are  achieved,  assuming  that  Optionee  has not  been
terminated  for Cause or  resigned  without  Good  Reason  under his  Employment
Agreement, as of the respective vesting dates:

                  (a)      OPTIONS AT $1.25.  Options for 500,000  Option Shares
                           shall be  exercisable  at a price of $1.25 per share,
                           and shall  vest,  i.e.,  become  exercisable  free of
                           forfeiture, after Optionee has continuously served in
                           his  capacity as General  Manager or Chief  Operating
                           Officer under his  Employment  Agreement for a period
                           of 90 days from the date of his Employment  Agreement
                           and provided an Operational  Plan (as provided in the
                           Employment    Agreement)   for   Quality    Botanical
                           Ingredients,  Inc.  ("QBI")  for the  approval of the
                           Board,  within 90 days of the date of his  Employment
                           Agreement.

                  (b)      OPTIONS AT $1.75.  Options for 500,000  Option Shares
                           shall be  exercisable  at a price of $1.75 per share,
                           and shall  vest to the extent of  achievement  of the
                           QBI operating income milestones for the quarter ended

                                       1
<PAGE>

                           December 31,  2003,  as follows:  if QBI's  operating
                           income for the quarter is at least $125,000,  Options
                           for 125,000 Option Shares shall vest and  thereafter,
                           for each increment of $25,000 of QBI operating income
                           for the  quarter an  additional  125,000  Options for
                           Option  Shares  shall vest until a maximum of 500,000
                           Options  exercisable  at $1.75 per Option Share shall
                           vest, if the QBI operating  income  reaches  $200,000
                           for the quarter.  Operating income increments of less
                           than  $25,000  shall  be  rounded  up or  down to the
                           nearest $25,000 number.

                  (c)      OPTIONS AT $2.25.

                          (i)       Options for Option  Shares shall vest and be
                                    exercisable  at $2.25 per  share in  amounts
                                    which    correspond   to   the    applicable
                                    percentage of revenue growth for the Company
                                    on a  consolidated  basis for the year ended
                                    December  31,  2004 over the  prior  year as
                                    shown in the following table:

<TABLE>
<CAPTION>
                                                         Percentage Year Over Year Revenue Growth for 2004
                                              ----------------------------------------------------------------------
                                                   7%            11%            15%            19%           23%
                                              -------------  ------------  ------------  ------------ --------------
<S>                                              <C>            <C>            <C>            <C>           <C>
Number of Vested Option Shares                   20,000         30,000         40,000         50,000        60,000
Cumulative Vested Option Shares                  20,000         50,000         90,000        140,000       200,000
</TABLE>

                                    Revenue  growth  percentages  in between the
                                    percentage  numbers  set  forth in the table
                                    shall  be  rounded  up or down  to the  next
                                    nearest number in the table.

                          (ii)      Options for Option  Shares shall vest and be
                                    exercisable  at $2.25 per  share in  amounts
                                    which correspond to the applicable operating
                                    income  percentage  of  revenue  ("Operating
                                    Margin")  on a  consolidated  basis  for the
                                    year ended 2004 for the Company, as shown in
                                    the following table:

<TABLE>
<CAPTION>
                                                               Percentage Operating Margin for 2004
                                              ----------------------------------------------------------------------
                                                   4%            5%             6%             7%             8%
                                              -------------  ------------  ------------  ------------ --------------
<S>                                              <C>            <C>            <C>            <C>           <C>
Number of Vested Option Shares                   40,000         50,000         60,000         70,000        80,000
Cumulative Vested Option Shares                  40,000         90,000        150,000        220,000       300,000
</TABLE>

                  (d)      OPTIONS AT $2.75.

                          (i)       Options for Option  Shares shall vest and be
                                    exercisable  at $2.75 per  share in  amounts
                                    which    correspond   to   the    applicable
                                    percentage of revenue growth for the Company
                                    for the year ended  December  31,  2005 over
                                    the  prior  year as shown  in the  following
                                    table:

<TABLE>
<CAPTION>
                                                         Percentage Year Over Year Revenue Growth for 2005
                                              ----------------------------------------------------------------------
                                                  11%            14%            17%            20%           23%
                                              -------------  ------------  ------------  ------------ --------------
<S>                                              <C>            <C>            <C>            <C>           <C>
Number of Vested Option Shares                   20,000         30,000         40,000         50,000        60,000
Cumulative Vested Option Shares                  20,000         50,000         90,000        140,000       200,000
</TABLE>

                                    Revenue  growth  percentages  in between the
                                    percentage  numbers  set  forth in the table
                                    shall  be  rounded  up or down  to the  next
                                    nearest number in the table.

                          (ii)      Options   for  shares   shall  vest  and  be
                                    exercisable  at $2.75 per  share in  amounts
                                    which correspond to the applicable operating
                                    income  percentage  of  revenue  ("Operating
                                    Margin")  for the  year  ended  2005 for the
                                    Company, as shown in the following table:

                                       2
<PAGE>

<TABLE>
<CAPTION>

                                                               Percentage Operating Margin for 2005
                                              ----------------------------------------------------------------------
                                                   8%            9%             10%            11%           12%
                                              -------------  ------------  ------------  ------------ --------------
<S>                                              <C>            <C>            <C>            <C>           <C>
Number of Vested Option Shares                   40,000         50,000         60,000         70,000        80,000
Cumulative Vested Option Shares                  40,000         90,000        150,000        220,000       300,000
</TABLE>

For purposes of the Performance Benchmarks set forth in this paragraph 3, salary
increases  and  bonuses to Fred  Tannous and Bill Glaser in amounts in excess of
current  salary and the expensing of stock  options shall not be deemed  charges
against income in determining  operating margin, nor shall non-recurring charges
such as inventory  write-downs or corporate overhead charges from the Company to
QBI for the QBI 12/31/03 milestone set forth in (b) above.

         4. METHOD OF  EXERCISE;  EXERCISE  PERIOD.  This Option shall be deemed
exercised as to the Option  Shares to be purchased  when written  notice of such
exercise has been given to the Company at its principal  business  office by the
Optionee with respect to the Common Stock to be purchased.  Such notice shall be
accompanied  by full payment in cash or cash  equivalents  as  determined by the
Administrator. Any such exercise must occur within 3 years from the vesting date
of the Option  Shares to which the exercise  relates or within such shorter time
as  provided  in  Section  5(c) in the event of  termination  of the  Optionees'
employment.

         5. GOVERNING PLAN. This Agreement hereby  incorporates by reference the
Plan and all of the terms and  conditions of the Plan as heretofore  amended and
as the same may be amended from time to time  hereafter in  accordance  with the
terms thereof,  but no such  subsequent  amendment  shall  adversely  affect the
Optionee's rights under this Agreement and the Plan except as may be required by
applicable  law.  The  Optionee  expressly  acknowledges  and  agrees  that  the
provisions  of this  Agreement  are  subject  to the  Plan;  the  terms  of this
Agreement shall in no manner limit or modify the  controlling  provisions of the
Plan,  and in case of any conflict  between the  provisions of the Plan and this
Agreement,  the provisions of the Plan shall be controlling and binding upon the
parties hereto. The Optionee also hereby expressly acknowledges,  represents and
agrees as follows:

                  (a)  Acknowledges  receipt  of a copy of the  Plan,  a copy of
which is attached hereto and by reference  incorporated  herein,  and represents
that he/she is familiar with the terms and  provisions of said Plan,  and hereby
accepts this Agreement subject to all the terms and provisions of said Plan.

                  (b)  Agrees  to accept as  binding,  conclusive  and final all
decisions or  interpretations  of the  Administrator  upon any questions arising
under the Plan.

                  (c) Acknowledges  that he/she is familiar with Sections of the
Plan  regarding  the  exercise  of the  Option(s)  and  represents  that  he/she
understands  that said  Option(s) must be exercised on or before the earliest of
the following  dates,  whichever is  applicable:  (i) the day prior to the third
anniversary of the vesting date of the tranche of Options being exercised,  (ii)
the date which is three months from the date of  termination  of employment  for
any reason other than death or disability as provided under  Subsection  5(h) of
the  Plan;  or (iii)  the  date  that is six  months  following  the  Optionee's
termination of employment,  by reason of his/her death,  or the date that is six
months  following  his/her  termination of employment,  by reason of disability,
whichever is applicable, as provided in Subsection 5(g) of the Plan

                  (d) Acknowledges, understands and agrees that the existence of
the Plan and the execution of this Agreement are not sufficient by themselves to
cause any  exercise of any  Option(s)  granted as an  Incentive  Stock Option to
qualify for favorable tax treatment  through the  application  of Section 422 of
the  Internal  Revenue  Code;  that  Optionee  must,  in  order  to so  qualify,
individually meet by his own action all applicable  requirements of Section 422,
including  without  limitation  the  following  holding  period  and  employment
requirements as to Incentive Stock Options:

                           (1) HOLDING PERIOD REQUIREMENT:  no disposition of an
         Optioned  Share may be made by  Optionee  within two (2) years from the
         date of the granting of the Option(s) nor within one (1) year after the
         acquisition of the Optioned Shares through exercise of the Options, and

                           (2) EMPLOYMENT  REQUIREMENT:  at all times during the
         period  beginning  on the date of the  granting  of the  Option(s)  and
         ending on the day three (3)  months  before the date of  exercise,  the
         Optionee  must have been an employee of the Company,  its Parent,  or a
         Subsidiary of the Company,  or a corporation  or a parent or subsidiary
         of such corporation  issuing or assuming the Option(s) in a transaction

                                       3
<PAGE>

         to which Section  425(a) of the Internal  Revenue Code applies,  except
         where  the  termination  of  employment  is by means of the  employee's
         disability,  in which case said three (3) month  period may be extended
         to six months.

                  (e) STOCK SPLITS.  All per share exercise  prices set forth in
this Agreement shall be adjusted  proportionally  as follows:  in the event of a
stock  split the price  shall be  decreased  proportionately  and the  number of
shares  covered  by the  Option  increased  proportionately;  in the  event of a
reverse split,  the price shall be increased  proportionately  and the number of
shares covered by the Option reduced proportionately.

         6.  REPRESENTATIONS  AND WARRANTIES.  As a condition to the exercise of
any portion of an Option,  the Company  may require the person  exercising  such
Option to make any representation  and/or warranty to the Company as may, in the
judgment of counsel to the Company, be required under the Securities Act of 1933
or any other  applicable law or regulation.  Optionee  hereby  represents to the
Company  that each of the Options  evidenced  hereby and the shares  purchasable
upon exercise  thereof are being  acquired only for  investment  and without any
present intention to sell or distribute such securities, that Optionee will sign
a lock-up agreement similar to that signed by the principal  shareholders at the
public  offering  ("PO")  of the  Company's  stock  as may  be  required  by the
underwriters in such PO.

         7. OPTIONS NOT  TRANSFERABLE.  No Stock Option shall be transferable by
the Optionee other than by will or by the laws of descent and distribution.

         8. NO ENLARGEMENT OF EMPLOYEE  RIGHTS.  Nothing in this Agreement shall
be construed to confer upon the Optionee (if an employee) any right to continued
employment with the Company,  any future Parent or any future Subsidiary,  or to
restrict  in any way the right of the  Company,  any  future  Subsidiary  or any
future Parent, to terminate his/her  employment.  Optionee  acknowledges that in
the  absence  of an  express  written  employment  agreement  to  the  contrary,
Optionee's  employment  with the Company may be terminated by the Company at any
time, with or without cause.

         9. WITHHOLDING OF TAXES.  Optionee  authorizes the Company to withhold,
in accordance with any applicable law, from any compensation  payable to him any
taxes required to be withheld by federal,  state or local law as a result of the
grant of the Option(s) or the issuance of stock pursuant to the exercise of such
Option(s).

         10. LAWS APPLICABLE TO CONSTRUCTION.  This Agreement shall be construed
and enforced in accordance with the laws of the State of California.

         11. AGREEMENT BINDING ON SUCCESSORS.  The terms of this Agreement shall
be binding upon the executors,  administrators,  heirs, successors,  transferees
and assignees of the Optionee.

         12. COSTS OF  LITIGATION.  In any action at law or in equity to enforce
any of  the  provisions  or  rights  under  this  Agreement  or  the  Plan,  the
unsuccessful  party to such  litigation,  as  determined by the court in a final
judgment  or  decree,  shall pay the  successful  party or  parties  all  costs,
expenses and  reasonable  attorneys'  fees incurred by the  successful  party or
parties (including without limitation costs,  expenses end fees on any appeals),
and if the successful  party recovers  judgment in any such action or proceeding
such  costs,  expenses  and  attorneys'  fees shall be  included  as part of the
judgment.

         13. NECESSARY ACTS. The Optionee agrees to perform all acts and execute
and deliver any  documents  that may be  reasonably  necessary  to carry out the
provisions  of  this  Agreement,  including  but not  limited  to all  acts  and
documents  related to  compliance  with federal  and/or state  securities  laws.
Optionee shall be responsible  for conferring with his or her own tax accountant
regarding  the tax matters  pertaining  to the  Options and the  exercise of the
Options  and shall be solely  responsible  as to all tax filings  pertaining  to
Optionee, including the filing of an 83(b) election, if any.

                                       4
<PAGE>

         14. COUNTERPARTS. For convenience this Agreement may be executed in any
number of  identical  counterparts,  each of which  shall be  deemed a  complete
original  in itself  and may be  introduced  in  evidence  or used for any other
purpose without the production of any other counterparts.

         15.  INVALID  PROVISIONS.  In the  event  that  any  provision  of this
Agreement is found to be invalid or otherwise unenforceable under any applicable
law, such invalidity or unenforceability shall not be construed as rendering any
other provisions  contained herein invalid or unenforceable,  and all such other
provisions shall be given full force and effect to the same extent as though the
invalid and unenforceable provision was not contained herein.

         16. LIMITATION ON VALUE OF OPTIONED SHARES.  Optionee acknowledges that
the Plan  provides that the aggregate  fair market value  (determined  as of the
date  hereof)  of the  shares of  Common  Stock for  which  Options  granted  as
Incentive  Stock Options are  exercisable  for the first time by Optionee during
any calendar year under all incentive  stock option plans of the Company and any
future  Subsidiary shall not exceed  $100,000.  It is understood and agreed that
should it be determined  that an Option if granted as an Incentive  Stock Option
hereunder would exceed such maximum,  such Option shall be considered granted as
a  Non-Qualified  Stock  Option to the  extent,  but only to the  extent of such
excess. This limitation shall not apply to any option granted as a Non-Qualified
Stock Option.

                                       5
<PAGE>

         IN WITNESS  WHEREOF,  the Company and the Optionee  have  executed this
Agreement effective as of the date first written hereinabove.

HEALTH SCIENCES GROUP, INC.                   OPTIONEE

By:
   -----------------------------------------  ---------------------------------
   Name:____________________________                      (Signature)
   Title:________________________

                                              ---------------------------------
                                                          (Print Name)

Address of Participant:
------------------------------------        ----------------------------------
                                                       (Social Security)
------------------------------------

------------------------------------

------------------------------------

                                       6
<PAGE>

         By his or her  signature  below,  the spouse of the  Optionee,  if such
Optionee be legally  married as of the date of his execution of this  Agreement,
acknowledges that he or she has read this Agreement and the Plan and is familiar
with the terms and provisions  thereof,  and agrees to be bound by all the terms
and conditions of said Agreement and said Plan document and appoints Optionee as
attorney in fact with respect to any matter pertaining thereto.

                                        ---------------------------------------
                                        Spouse

                                        Dated: ________________________________

         By his or her signature below the Optionee represents that he or she is
not legally married as of the date of execution of this Agreement.

                                        ---------------------------------------
                                        Optionee

                                        Dated: ________________________________

                                       7Exhibit 10.14

                                    DEBENTURE

         THESE  SECURITIES HAVE NOT BEEN REGISTERED  UNDER THE SECURITIES ACT OF
         1933, AS AMENDED,  OR THE  SECURITIES  LAWS OF ANY STATE AND MAY NOT BE
         SOLD OR OFFERED  FOR SALE IN THE ABSENCE OF AN  EFFECTIVE  REGISTRATION
         STATEMENT FOR THE SECURITIES OR AN OPINION OF COUNSEL OR OTHER EVIDENCE
         ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

                                                                 US $500,000.00

                           HEALTHSCIENCES GROUP, INC.

                     CONVERTIBLE DEBENTURE DUE MAY 21, 2004

         FOR VALUE RECEIVED, HEALTHSCIENCES GROUP, INC., a corporation organized
and existing under the laws of the State of Colorado (the "Company") promises to
pay to CASTLERIGG  MASTER  INVESTMENTS,  LTD., the registered holder hereof (the
"Holder"),  the  principal sum of $500,000 on (the  "Maturity  Date") and to pay
interest at the Maturity Date on the principal sum outstanding from time to time
in arrears at the rate of 12% per annum, accruing from May 21, 2003, the date of
execution  of  that  certain  securities  purchase  agreement  (the  "Securities
Purchase Agreement") between the Holder and the Company dated as of May 21, 2003
(the  "Commencement  Date").  The  accrual of  interest  shall  commence  on the
Commencement Date and shall continue to accrue on a daily basis until payment in
full of the  principal  sum has  been  made or  duly  provided  for.  Additional
provisions  regarding the payment of interest are provided in Section 4(C) below
(the terms of which shall govern as if this  sentence  were not included in this
Debenture).  The Debenture may not be prepaid  without the prior written consent
of the Holder.

         This Debenture is being issued  pursuant to the terms of the Securities
Purchase  Agreement  to  which  the  Company  and the  Holder  (or the  Holder's
predecessor in interest) are parties.  Capitalized  terms not otherwise  defined
herein  shall have the  meanings  ascribed  to them in the  Securities  Purchase
Agreement.

         This Debenture is subject to the following additional provisions:

         1.  Unless  the Holder is a  non-United  States  person or entity,  the
Company  shall be entitled to withhold  from all payments of  principal  of, and
interest  on,  this  Debenture  any amounts  required  to be withheld  under the
applicable  provisions of the United States income tax laws or other  applicable
laws at the time of such  payments,  and Holder  shall  execute  and deliver all
required documentation in connection therewith. This Debenture is intended to be
in registered  form to qualify for the exemption  from  withholding  any amounts
with  respect to  interest  payments  payable to  non-United  States  persons or
entities in accordance with Regulation 1.871-14c of the Internal Revenue Code.

         2. This Debenture has been issued subject to investment representations
of the original  purchaser  hereof and may be  transferred  or exchanged only in
compliance  with the Securities  Act of 1933, as amended (the "Act"),  and other
applicable  state and foreign  securities  laws and the terms of the  Securities
Purchase Agreement. In the event of any proposed transfer of this Debenture, the
Company may  require,  prior to issuance of a new  Debenture in the name of such
other person,  that it receive reasonable  transfer  documentation.  The Company
shall maintain a book entry system (the  "Debenture  Register")  with respect to
principal and interest. Prior to due presentment for transfer of this Debenture,
the Company  and any agent of the  Company  shall treat the person in whose name
this  Debenture is duly  registered on the Company's  Debenture  Register as the
owner hereof for the purpose of receiving payment as herein provided and for all
other  purposes,  whether or not this  Debenture  be  overdue,  and  neither the
Company  nor any such agent shall be  affected  by notice to the  contrary.  The
Debenture  can be  transferred  through  both  surrender  and  issuance of a new
Debenture (or reissuance of this Debenture) or the book entry system.

                                       1
<PAGE>

         3. A. (i) At any time  commencing on the Conversion  Date, and prior to
the time this Debenture is paid in full in accordance with its terms  (including
without  limitation after the Maturity Date and after the occurrence of an Event
of Default, as defined below), the Holder of this Debenture is entitled,  at its
option, subject to the following provisions of this Section 4, to convert all or
a portion of this Debenture at any time into shares of Common Stock,  $0.001 par
value  ("Common  Stock"),  of the  Company at the  Conversion  Price (as defined
below).

                           (ii) The term  "Conversion  Date"  means  the date on
which  notice is given of  conversion  with respect to any  Debenture,  provided
however,  that the Conversion Date shall not precede the earlier of (A) 150 days
after  the  Commencement  Date or (B) the  date a  registration  statement  (the
"Registration  Statement") is declared  effective by the SEC with respect to the
Registrable Securities,  or (C) the date that any shareholder of the Company who
became the beneficial  owner of shares of Common Stock of the Company within the
12 months preceding the date of this Debenture sells such shares of Common Stock
in a public sale pursuant to Rule 144 under the 1933 Act..

                           (iii) The term "Conversion Price" means the lesser of
(A) 30% below the average VWAP per share of Common Stock for the five days prior
to the Conversion Date, but in no event lower than the Floor Price, or (B) $0.85
per share.

                           (iv) The term "VWAP" means the daily volume  weighted
average price of the Company's  Common Stock on the Principal  Trading Market as
reported  by  Bloomberg  Financial  L.P.  (Based on a trading day from 9:30 a.m.
Eastern Time to 4:00 p.m.  Eastern  Time) using the VWAP function on the date in
question.

                           (v) The term  "Floor  Price"  shall mean the lower of
(A)  $0.85 per share and (B) such  other  price as may be  determined  under the
Securities Purchase Agreement.

                  B.  Conversion  shall be effectuated by delivering a Notice of
Conversion  to the  Company  as  provided  in  this  paragraph.  The  Notice  of
Conversion  shall be executed by the Holder of this Debenture and shall evidence
such Holder's  intention to convert this Debenture or a specified portion hereof
in the form annexed hereto as Exhibit A. If paid in Common Stock as contemplated
hereby,  interest  accrued or  accruing  from the Closing  Date to the  relevant
Conversion Date shall be paid in Common Stock at the Conversion Price applicable
as of such  Conversion  Date.  No  fractional  shares of  Common  Stock or scrip
representing fractions of shares will be issued on conversion, but the number of
shares  issuable shall be rounded to the nearest whole share.  The date on which
notice of conversion is given (the "Conversion  Date") shall be deemed to be the
date on which the Holder  faxes or  otherwise  delivers  the  conversion  notice
("Notice of Conversion") to the Company so that it is received by the Company on
or before such specified date,  provided that, if such conversion  would convert
the entire  remaining  principal of this Debenture,  the Holder shall deliver to
the  Company  the  original  Debenture  being  converted  no later than five (5)
business days thereafter (and if not so delivered with such time, the Conversion
Date  shall be the date on which the later of the Notice of  Conversion  and the
original  Debenture  being  converted  is  received by the  Company).  Facsimile
delivery  of the  Notice of  Conversion  shall be  accepted  by the  Company  at
facsimile   number  (310)  242-6700;   Attn:   Frederick   Tannous,   President.
Certificates    representing   Common   Stock   upon   conversion   ("Conversion
Certificates")  will be delivered to the Holder at the address  specified in the
Notice  of  Conversion  (which  may be  the  Holder's  address  for  notices  as
contemplated by the Securities Purchase Agreement or a different  address),  via
express courier, by electronic transfer or otherwise,  within three (3) business
days (such business day, the "Delivery Date") after the date on which the Notice
of Conversion is delivered to the Company as contemplated in this paragraph.  In
the event that the shares represented by the Conversion Certificates are subject
to an effective  Registration  Statement on the Conversion  Date, the Conversion
Certificates  shall be  delivered  without any legend  restricting  transfer and
without any pending "stop transfer" restrictions.  In the event that the Company
fails to deliver the  Conversion  Certificates  within two business  days of the
Delivery Date, the Holder shall be entitled to the issuance of additional shares
of  Common  Stock  as set  forth  in  Section  5(e) of the  Securities  Purchase
Agreement.  In the  event  that the  Company  fails to  deliver  the  Conversion
Certificates  on or before the Delivery  Date, the Holder shall also be entitled
to its remedies under Section 5(f) of the Securities Purchase Agreement.

                                       2
<PAGE>

                  C. (i) Subject to the other terms of this Section C,  interest
on the  principal  amount of this  Debenture  converted  pursuant to a Notice of
Conversion  shall be due and  payable,  at the  option  of the  Holder,  in cash
quarterly in arrears or Common Stock on the Conversion Date.

                           (ii) The  number  of  shares  of  Common  Stock to be
issued in payment of such  interest  shall be  determined by dividing the dollar
amount of the  interest to be so paid by the  Conversion  Price on the  relevant
Conversion  Date.  Such Common Stock shall be  delivered  to the Holder,  or per
Holder's  instructions,   on  the  Delivery  Date  for  the  related  Conversion
Certificates pursuant to Section 4(B) hereof.

                           (iii) If the Holder  elects to have the interest paid
in cash, the Company shall make such payment quarterly commencing June 30, 2003.

                  D.  Notwithstanding  any other provision  hereof, or of any of
the other  Transaction  Agreements (as those terms are defined in the Securities
Purchase  Agreement),  in no event (except (i) as specifically  provided in this
Debenture as an exception to this provision,  or (ii) while there is outstanding
a tender offer for any or all of the shares of the Company's Common Stock),  the
Holder of this  Debenture may not convert any Debenture to the extent that after
such  conversion,  the number of shares of Common  Stock owned by the Holder and
its  affiliates  (other  than  shares  of  Common  Stock  which  may  be  deemed
beneficially  owned  through the  ownership  of the  unconverted  portion of the
Debenture and any unexercised warrant issued to the Holder and its affiliates as
of such date (the  "Warrant")),  would result in ownership by the  Purchaser and
its affiliates of 4.99% or more of the Company's  issued and outstanding  shares
of Common Stock  following such  conversion and exercise.  In the event that the
Holder owns both the Debenture and the Warrant which would  otherwise  result in
ownership of 4.99% or more of the  Company's  issued and  outstanding  shares of
Common Stock but for the prior sentence, then the Warrant shall be deemed to not
be exercisable to the extent  necessary to allow  conversion of the Debenture to
the maximum  extent  possible and still permit the Holder's  ownership to remain
below  4.99%.  This  restriction  shall be binding  upon any  transferee  of the
Debenture from any Holder.  The preceding  shall not interfere with the Holder's
right to convert this  Debenture  over time which in the  aggregate  totals more
than 4.99% of the then outstanding shares of Common Stock so long as such Holder
and  its  affiliates  do not  beneficially  own  more  than  4.99%  of the  then
outstanding Common Stock at any given time.

                  E. In lieu of delivering  physical  certificates  representing
the Common Stock issuable upon conversion, provided the Company's transfer agent
is  participating  in  the  Depository  Trust  Company  ("DTC")  Fast  Automated
Securities Transfer program,  upon request of the Lender and its compliance with
the  provisions  contained  in  this  paragraph,  so  long  as the  certificates
therefore do not bear a legend and the Lender thereof is not obligated to return
such  certificate for the placement of a legend  thereon,  the Company shall use
its best  efforts to cause its  transfer  agent to  electronically  transmit the
Common Stock issuable upon  conversion to the Lender by crediting the account of
Lender's Prime Broker with DTC through its Deposit  Withdrawal  Agent Commission
system.

         5. A. Until at such time as the Holder does not directly or  indirectly
own any Debentures, the Holder will have the absolute and unconditional right to
redeem all, or a portion,  of the then Unconverted  Debenture (as defined below)
in cash for the Put Price (as  defined  below) in  accordance  with the terms of
this Section 5 (such put, a "Put ").

                  B. (i) The term "Put Price" means the amount, payable in cash,
equal to (x) one hundred thirty percent (130.00%) of the aggregate  principal of
the Unconverted Debenture and all accrued interest thereon through and including
the date of the Put Notice.

                           (ii)  The  term  "Unconverted  Debenture"  means  the
principal amount of this Debenture has not
been converted as of the relevant date.

                  C. The Holder shall give  written  notice of such Put Price to
the Company (the "Put Notice"). Notwithstanding anything contained herein to the
contrary, the Holder shall have the right to redeem this Debenture,  in whole or
in part,  after either (A) the VWAP per share of a share of Common Stock is less
than $0.85 per share on the trading  date prior to the date that would have been
the Conversion  Date but for the Lender's  exercise of its redemption  right, or
(B)  if  there  is  no  effective  registration  statement  in  effect  for  the

                                       3
<PAGE>

Registrable  Securities on or before the 150th day from the  Commencement  Date,
then the Lender shall have the following redemption right. The Company shall pay
the Put Price within 30 days of the Put Notice (the "Put Payment Date"). The Put
Price shall bear interest at the rate of 12% per annum;  provided however,  that
in the event that the Put Price is not paid within 30 days,  the Put Price shall
bear interest at the rate of 25% per annum from the date of the  Debenture.  The
parties  acknowledge  that the 30%  premium  in the Put  Price to the  aggregate
principal  of the  Unconverted  Debenture  and all accrued  and unpaid  interest
thereon are in consideration  for the Holder waiving its right to receive Common
Stock of the Company upon conversion of the Debenture.

         6.  Notwithstanding  anything  contained  herein to the  contrary,  the
Holder  covenants and agrees with the Company that, in the event of a conversion
or redemption,  the Holder will not convert or redeem an amount of more than the
greater of (i) $50,000  principal  amount of this  Debenture per week or (ii) an
aggregate  amount equal to 15% of the average  daily dollar  volume of shares of
Common  Stock  traded  on the  Principal  Market  for the  five  days  prior  to
conversion or redemption.

         7.  Subject  to the  terms of the  Securities  Purchase  Agreement,  no
provision of this Debenture shall alter or impair the obligation of the Company,
which is absolute and  unconditional,  to pay the principal of, and interest on,
this Debenture at the time, place, and rate, and in the coin or currency, herein
prescribed.  This Debenture and all other  Debentures now or hereafter issued of
similar terms are direct obligations of the Company.

         8. No recourse shall be had for the payment of the principal of, or the
interest  on, this  Debenture,  or for any claim based  hereon,  or otherwise in
respect hereof, against any incorporator,  shareholder,  officer or director, as
such,  past,  present or future,  of the Company or any  successor  corporation,
whether  by  virtue  of any  constitution,  statute  or rule  of law,  or by the
enforcement of any assessment or penalty or otherwise, all such liability being,
by the acceptance  hereof and as part of the consideration for the issue hereof,
expressly waived and released.

         9. All payments  contemplated hereby to be made "in cash" shall be made
in immediately available good funds of United States of America currency by wire
transfer to an account designated in writing by the Holder to the Company (which
account may be changed by notice similarly given). All payments of cash and each
delivery of shares of Common Stock issuable to the Holder as contemplated hereby
shall be made to the  Holder at the  address  last  appearing  on the  Debenture
Register  of the  Company as  designated  in writing by the Holder  from time to
time;  except  that the  Holder  can  designate,  by  notice to the  Company,  a
different delivery address for any one or more specific payments or deliveries.

         If, for as long as this  Debenture  remains  outstanding,  the  Company
enters into a merger (other than where the Company is the  surviving  entity) or
consolidation with another  corporation or other entity or a sale or transfer of
all or  substantially  all of  the  assets  of the  Company  to  another  person
(collectively, a "Sale"), the Company will require, in the agreements reflecting
such transaction,  that the surviving entity expressly assume the obligations of
the Company hereunder. Notwithstanding the foregoing, if the Company enters into
a Sale and the  holders  of the Common  Stock are  entitled  to  receive  stock,
securities or property in respect of or in exchange for Common Stock,  then as a
condition  of such  Sale,  the  Company  and any such  successor,  purchaser  or
transferee  will agree that the  Debenture  may  thereafter  be converted on the
terms and subject to the  conditions set forth above into the kind and amount of
stock, securities or property receivable upon such merger,  consolidation,  sale
or transfer by a holder of the number of shares of Common  Stock into which this
Debenture   might  have  been   converted   immediately   before  such   merger,
consolidation, sale or transfer, subject to adjustments which shall be as nearly
equivalent as may be practicable.

         11. A. If,  for any  reason,  prior to the  Conversion  Date or the Put
Payment Date, the Company spins off or otherwise divests itself of a part of its
business  or  operations  or  disposes  all or of a  part  of  its  assets  in a
transaction (the "Spin Off") in which the Company does not receive  compensation
for such business, operations or assets, but causes securities of another entity
(the "Spin Off  Securities")  to be issued to security  holders of the  Company,
then the Company shall cause (i) to be reserved Spin Off Securities equal to the
number  thereof  which  would  have  been  issued to the  Holder  had all of the
Holder's  Debentures  outstanding  on the record  date (the  "Record  Date") for
determining  the  amount  and  number  of Spin Off  Securities  to be  issued to
security holders of the Company (the "Outstanding Debentures") been converted as

                                       4
<PAGE>

of the close of business on the trading day  immediately  before the Record Date
(the  "Reserved  Spin Off  Shares"),  and (ii) to be issued to the Holder on the
conversion  of all or any of the  Outstanding  Debentures,  such  amount  of the
Reserved Spin Off Shares equal to (x) the Reserved Spin Off Shares multiplied by
(y) a  fraction,  of which  (I) the  numerator  is the  principal  amount of the
Outstanding  Debentures  then being  converted,  and (II) the denominator is the
principal amount of the Outstanding Debentures.

                  B. If, at any time while any portion of this Debenture remains
outstanding, the Company effectuates a stock split or reverse stock split of its
Common  Stock or issues a dividend on its Common Stock  consisting  of shares of
Common  Stock,  the  Conversion  Price,  the Floor  Price and any other  amounts
calculated as contemplated hereby or by any of the other Transaction  Agreements
shall be equitably adjusted to reflect such action.

         12. The Holder of the Debenture, by acceptance hereof, agrees that this
Debenture is being  acquired for investment and that such Holder will not offer,
sell or  otherwise  dispose  of this  Debenture  or the  shares of Common  Stock
issuable  upon  conversion  thereof  except under  circumstances  which will not
result in a  violation  of the Act or any  applicable  state Blue Sky or foreign
laws or similar laws relating to the sale of securities.

         13. The Holder recognizes that the Company may be limited in the number
of shares of Common Stock it may issue by (i) reason of its  authorized  shares,
or (ii) the applicable rules and regulations of the principal  securities market
on  which  the  Common  Stock  is  listed  or  traded  (collectively,  the  "Cap
Regulations").  Without  limiting the other provisions  hereof,  (i) the Company
will take all steps reasonably  necessary to be in a position to issue shares of
Common  Stock  on  conversion  of  the  Debentures  without  violating  the  Cap
Regulations  and (ii) if, despite  taking such steps,  the Company still can not
issue such shares of Common Stock  without  violating the Cap  Regulations,  the
Holder  of this  Debenture  (to the  extent  the  same can not be  converted  in
compliance with the Cap Regulations (an "Unconverted Debenture"), shall have the
option,  exercisable in the Holder's sole and absolute discretion,  to elect any
one of the following remedies:

                  (x)  require the  Company to issue  shares of Common  Stock in
         accordance  with such  Holder's  Notice of  Conversion  relating to the
         Unconverted Debenture at the Conversion Price; or

                  (y) require the Company to redeem each  Unconverted  Debenture
         for an amount (the "Cap Redemption Amount"), payable in cash, equal to:

                                  V                           x           M
                           -----------------
                                CP

         where:

                  "V" means the  outstanding  principal  plus  accrued  interest
         through the Cap  Redemption  Date (as defined  below) of an Unconverted
         Debenture;

                  "CP"  means  the  Conversion  Rate in  effect  on the  date of
         redemption (the "Cap Redemption Date") specified in the notice from the
         Holder electing this remedy; and

                  "M" means the  highest  closing  ask price  during  the period
         beginning on the Cap Redemption  Date and ending on the date of payment
         of the Cap Redemption Amount.

         The  holder  of an  Unconverted  Debenture  may  elect one of the above
         remedies  with respect to a portion of such  Unconverted  Debenture and
         the other  remedy with  respect to other  portions  of the  Unconverted
         Debenture.

         14. This  Debenture  shall be governed by and  construed in  accordance
with the laws of the State of Colorado  as applied to  agreements  executed  and
performed  in such  state.  The  Holder and the  Company  each  consents  to the
exclusive  jurisdiction of the federal courts whose districts encompass any part
of the City of New York or the state  courts of the State of New York sitting in
the City of New York in connection with any dispute arising under this Debenture
and hereby  waives,  to the maximum  extent  permitted  by law,  any  objection,
including any  objection  based on forum non  coveniens,  to the bringing of any
such  proceeding in such  jurisdictions.  The Company shall reimburse the Holder
for any  reasonable  legal  fees and  disbursements  incurred  by the  Holder in
enforcement of or protection of any of its rights under this Debenture.

                                       5
<PAGE>

         15. The following shall constitute an "Event of Default":

                  a.       The Company shall default in the payment of principal
                           or interest on this Debenture; or

                  b.       Any of the  representations or warranties made by the
                           Company  in  Section  3 of  the  Securities  Purchase
                           Agreement   shall  be  false  or  misleading  in  any
                           material respect at the time made; or

                  c.       The Company shall fail to perform or observe,  in any
                           material   respect,   any   other   covenant,   term,
                           provision,  condition, agreement or obligation of any
                           Debenture  in this  series  and  such  failure  shall
                           continue  uncured  for a period of  thirty  (30) days
                           after written notice from the Holder of such failure;
                           or

                  d.       The Company shall fail to perform or observe,  in any
                           material  respect,  any  covenant,  term,  provision,
                           condition,  agreement  or  obligation  of the Company
                           under  any of the  Transaction  Agreements  and  such
                           failure shall continue uncured for a period of thirty
                           (30) days  after  written  notice  from the Holder of
                           such failure; or

                  e.       The Company  shall (1) admit in writing its inability
                           to pay its debts  generally as they mature;  (2) make
                           an  assignment   for  the  benefit  of  creditors  or
                           commence  proceedings  for  its  dissolution;  or (3)
                           apply for or consent to the appointment of a trustee,
                           liquidator  or receiver for its or for a  substantial
                           part of its property or business; or

                  f.       A trustee,  liquidator or receiver shall be appointed
                           for  the  Company  or for a  substantial  part of its
                           property  or  business  without its consent and shall
                           not be  discharged  within sixty (60) days after such
                           appointment; or

                  g.       Any  governmental  agency or any  court of  competent
                           jurisdiction  at the  instance  of  any  governmental
                           agency shall  assume  custody or control of the whole
                           or  any  substantial  portion  of the  properties  or
                           assets of the  Company  and  shall  not be  dismissed
                           within sixty (60) days thereafter; or

                  h.       Bankruptcy, reorganization, insolvency or liquidation
                           proceedings or other proceedings for relief under any
                           bankruptcy  law or any law for the  relief of debtors
                           shall be instituted by or against the Company and, if
                           instituted   against  the   Company,   shall  not  be
                           dismissed   within   sixty   (60)  days   after  such
                           institution  or the  Company  shall by any  action or
                           answer  approve of,  consent to, or  acquiesce in any
                           such  proceedings  or admit the material  allegations
                           of, or default in  answering a petition  filed in any
                           such proceeding.

                  i.       The Company  fails to issue shares of Common Stock to
                           the  Holder or to cause its  Transfer  Agent to issue
                           shares of Common Stock upon exercise by the Holder of
                           the  conversion  rights of the  Holder in  accordance
                           with the terms of this  Debenture,  fails to transfer
                           or to  cause  its  Transfer  Agent  to  transfer  any
                           certificate  for shares of Common Stock issued to the
                           Holder upon  conversion  of this  Debenture  and when
                           required by this Debenture or the Registration Rights
                           Agreement,  and such transfer is otherwise lawful, or
                           fails to remove  any  restrictive  legend or to cause
                           its Transfer Agent to transfer on any  certificate or
                           any shares of Common  Stock issued to the Holder upon
                           conversion of this  Debenture as and when required by
                           this Debenture,  the Securities Purchase Agreement or
                           the  Registration  Rights  Agreement  and such legend
                           removal is  otherwise  lawful,  and any such  failure
                           shall  continue  uncured for five (5)  business  days
                           after written notice of such failure.

                  j.       Any money judgment, writ or warrant of attachment, or
                           similar  process  in excess of Two  Hundred  Thousand
                           ($200,000)  Dollars in the aggregate shall be entered
                           or filed against the Company or any of its properties

                                       6
<PAGE>

                           or other assets and shall remain  unpaid,  unvacated,
                           unbonded or unstayed  for a period of sixty (60) days
                           or in any event later than five (5) days prior to the
                           date of any  proposed  sale  thereunder  (unless such
                           judgment, writ or warrant of attachment is reasonably
                           believed   by  the  Company  to  be  90%  covered  by
                           insurance); or

                  k.       The Company shall have its Common Stock  suspended or
                           delisted from an exchange or over-the-counter  market
                           from trading or has  received  notice of final action
                           concerning  delisting  and the  Common  Stock  is not
                           relisted within five days thereafter.

If an Event of Default shall have occurred, then, or at any time thereafter, and
in each and every such case, unless such Event of Default shall have been waived
in writing by the Holder (which waiver shall not be deemed to be a waiver of any
subsequent  default)  at the  option  of the  Holder  and in the  Holder's  sole
discretion,  the Holder may consider this Debenture  immediately due and payable
(and the Maturity Date shall be accelerated  accordingly),  without presentment,
demand, protest or notice of any kind, all of which are hereby expressly waived,
anything  herein or in any note or other  instruments  contained to the contrary
notwithstanding,  and the  Holder  may  immediately  enforce  any and all of the
Holder's  rights and  remedies  provided  herein or any other rights or remedies
afforded by law.  In the event of a Default,  the  interest  rate on any overdue
principal  amount shall be twenty-five  percent (25%) per annum commencing as of
the date of this Debenture.

         16.  Nothing   contained  in  this  Debenture  shall  be  construed  as
conferring  upon the  Holder  the right to vote or to  receive  dividends  or to
consent  or  receive  notice as a  shareholder  in  respect  of any  meeting  of
shareholders  or any rights  whatsoever as a shareholder of the Company,  unless
and to the extent converted in accordance with the terms hereof.

         17. In the event for any  reason,  any payment by or act of the Company
or the Holder shall  result in payment of interest  which would exceed the limit
authorized  by or be in violation of the law of the  jurisdiction  applicable to
this Debenture, then ipso facto the obligation of the Company to pay interest or
perform such act or requirement  shall be reduced to the limit  authorized under
such law,  so that in no event shall the  Company be  obligated  to pay any such
interest, perform any such act or be bound by any requirement which would result
in the payment of interest  in excess of the limit so  authorized.  In the event
any payment by or act of the Company shall result in the extraction of a rate of
interest in excess of a sum which is lawfully collectible as interest, then such
amount (to the extent of such excess not returned to the Company) shall, without
further  agreement or notice between or by the Company or the Holder,  be deemed
applied to the payment of principal,  if any, hereunder immediately upon receipt
of such excess funds by the Holder, with the same force and effect as though the
Company had specifically  designated such sums to be so applied to principal and
the Holder had agreed to accept such sums as an interest-free prepayment of this
Debenture.  If any part of such excess remains after the principal has been paid
in full, whether by the provisions of the preceding sentences of this Section 16
or otherwise,  such excess shall be deemed to be an interest- free loan from the
Company to the Holder,  which loan shall be payable  immediately  upon demand by
the  Company.  The  provisions  of this  Section 16 shall  control  every  other
provision of this Debenture.

                            [Signature Page Follows]

                                       7
<PAGE>

         IN WITNESS  WHEREOF,  the Company has caused this instrument to be duly
executed by an officer thereunto duly authorized.

Dated: May 21, 2003
                                       HEALTHSCIENCES GROUP, INC.

                                       By:_____________________________________
                                       Name: __________________________________
                                       Title:___________________________________

                                       8
<PAGE>

                                    EXHIBIT A

                              NOTICE OF CONVERSION
                                       OF
                  CONVERTIBLE DEBENTURE SERIES DUE MAY 21, 2004

  (To be Executed by the Registered Holder in Order to Convert the Debenture)

FROM:
     ----------------------------------------------------- ("Holder")

DATE:                                                       (the
     -----------------------------------------------------  "Conversion Date")

RE:      Conversion of $________-  principal amount (the "Converted  Debenture")
         of the  Convertible  Debenture  Due May 21, 2004 (the  "Debenture")  of
         HEALTHSCIENCES  GROUP  INC.(the  "Company")   ___________  shares  (the
         "Conversion Shares") of Common Stock (defined below)

CONVERSION DATE:

         The captioned  Holder  hereby gives notice to the Company,  pursuant to
         the  Debenture of  HEALTHSCIENCES  GROUP INC. that the Holder elects to
         convert  the  Converted  Debenture  into fully paid and  non-assessable
         shares of Common Stock,  $0.001 par value (the "Common Stock"),  of the
         Company as of the Conversion  Date  specified  above.  Said  conversion
         shall be based on the following Conversion Price

Based on this Conversion  Price, the number of Conversion Shares indicated above
should be issued in the following name(s):

          Name and Record Address                   Conversion Shares

          --------------------------------------

          --------------------------------------

          --------------------------------------

         As contemplated by the Debenture and the Securities Purchase Agreement,
this Notice of  Conversion is being sent by facsimile to the  telecopier  number
and officer indicated above.

         If this Notice of  Conversion  represents  the full  conversion  of the
outstanding  balance  of the  Debenture,  the Holder  either (1) has  previously
surrendered the Debenture,  duly endorsed,  to the Company or (2) will surrender
(or cause to be surrendered) the Debenture, duly endorsed, to the Company at the
address  indicated  above by express courier within five (5) business days after
delivery or facsimile transmission of this Notice of Conversion.

         The  certificates   representing   the  Conversion   Shares  should  be
transmitted  by the Company to the Holder via express  courier or by  electronic
transfer within the time  contemplated by the Debenture and Securities  Purchase
Agreement after receipt of this Notice of Conversion (by facsimile  transmission
or otherwise) to:

                     --------------------------------------

                     --------------------------------------

                     --------------------------------------

         As  contemplated  by the  Debenture,  the  Company  should also pay all
accrued but unpaid interest on the Converted Debenture to the Holder. The Holder

                                       1
<PAGE>

         |X|      If the  Holder  elects  to have such  interest  paid in Common
                  Stock, as contemplated by the Debenture, such shares should be
                  issued in the name of the  Holder  and  delivered  in the same
                  manner as, and together with, the Conversion Shares.

         |X|      If the Holder elects to have the interest  paid in cash,  such
                  payment should be made by wire transfer as follows:

                             ------------------------------------------
                             (Print name of Holder)

                             By:
                             ------------------------------------------
                             (Signature of Authorized Person)

                             ------------------------------------------
                             (Printed Name and Title)

                                       2

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