Document:

This Consulting Agreement is made as of the 7th day of December, 2005

BETWEEN:

     ROBERT TRAINOR, Consultant, of the City of Strathfoyle, Count Deny,
     Northern Ireland (hereinafter referred to as "Trainor")

                                                       OF THE FIRST PART

AND

     DERMISONICS, INC., a corporation incorporated pursuant to the laws of the
     State of Nevada (hereinafter referred to as "Dermisonics")

                                                       OF THE SECOND PART

WHEREAS Dermisonics is the owner of certain intellectual property rights which
have been utilized to develop a sonically activated drug delivery device (the
"U-Strip") which facilitates the transdermal application of a variety of heavy
molecular drugs;

AND WHEREAS, as the plan for commercialization of the U-Strip progresses, the
management of Dermisonics want to develop a marketing program for the U-Strip in
the European Union;

AND WHEREAS Trainor, in his capacity as a strategic planner and consultant, has
developed marketing strategies for a number of North American and European
companies;

          NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the
premises, the mutual agreements and covenants herein contained and for other
good and valuable consideration now paid by each of the parties hereto to the
other (the receipt and sufficiency of which is hereby acknowledged), the parties
hereto agree as follows:

     1.   APPOINTMENT.
          ------------

     Dermisonics hereby engages Trainor and Trainor agrees to render services to
Dermisonics as a consultant upon the terms and conditions hereinafter set forth.

     2.   TERM
          ----

     The term of this Consulting Agreement shall begin as of the date of this
Agreement, and shall terminate on December 7th, 2006, unless earlier terminated
in accordance with paragraph 7 herein or extended as agreed to between parties.

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     3.   SERVICES
          --------

     During the term of this Agreement, Trainor shall provide advice to,
undertake for and consult with Dermisonics concerning management, marketing,
consulting and strategic planning in connection with the development,
maintenance and growth of a market in the European Union for the U-Strip. In
connection with this service, Trainor shall dedicate 100% of his time during the
term of this Consulting Agreement to working with and reporting to the
management of Dermisonics toward the successful implementation of the European
marketing plan for the U-Strip. Without limiting the generality of the
foregoing, Trainor shall be specifically responsible for::

          (a)  The implementation of short-range and long-term strategic
               planning to fully develop and enhance Dermisonics's domestic
               marketing plan as it relates specifically to the U-Strip and the
               identification of pharmaceutical companies and other strategic
               allies which represent potential sources of broad based and
               reliable distribution in the European Union, and

          (b)  Assistance with regard to the identification, evaluation,
               structuring, negotiating and closing of licensing programs, joint
               ventures and/or strategic alliances dedicated to the efficient
               and profitable distribution of the U-Strip in the European Union.

     4.   DUTIES OF DERMISONICS
          ---------------------

     Dermisonics shall provide Trainor, on a regular and timely basis, with all
approved data and information about it, its subsidiaries, its management, the
ongoing technical development and regulatory status of the U-Strip and its
operations as shall be reasonably requested by Trainor, and shall advise Trainor
of any facts which would effect the accuracy of any data and information
previously supplied pursuant to this paragraph. Dermisonics shall promptly
supply Trainor with full and complete copies of financial reports, all filings
with all federal and state securities agencies; with full and complete copies of
all stockholder reports; with all data and information supplied by any financial
analyst, and with all brochures or other sales materials relating to its
products or services and with any further information which might reasonably be
deemed useful to Trainor in the provision of the services detailed in section 3
above.

     5.   COMPENSATION
          ------------

     Dermisonics shall issue and deliver to Trainor an aggregate of two hundred
and seventy-five thousand shares (275,000) of the Corporation's $0.005 par value
common stock ("Shares") which shall be registered by Dermisonics with the SEC on
Form S-8 (the "Form S-8") of the Securities Act of 1933, as amended, no later
than five (5) business days from the execution of this Consulting Agreement. The
number of Shares which will be issued pursuant to this Consulting Agreement
shall be adjusted to reflect any splits,

<PAGE>
recapitalization, reverse splits, capitalization's, mergers, consolidations,
sale of assets or other corporate reorganizations. Trainor shall receive the
Shares one day after the effectiveness of the Form S-8.

     Expenses relating to any activities undertaken by Trainor under this
Consulting Agreement will be charged to Dermisonics at cost on a monthly basis.
Travel and accommodation terms will be mutually agreed upon prior to the
activity being undertaken. Expenses will be invoiced and payment due within
thirty (30) days of receipt of an invoice.

     6.   REPRESENTATION AND INDEMNIFICATION.
          -----------------------------------

     Dermisonics shall be deemed to have made a continuing representation of the
accuracy of any and all facts, material information and data which it supplies
to Trainor and acknowledges its awareness that Trainor will rely on such
continuing representation in disseminating such information and otherwise
performing its advisory functions. Trainor in the absence of notice in writing
from Dermisonics will rely on the continuing accuracy of material, information
and data supplies to Dermisonics. Trainor represents that he has knowledge of
and is experienced in providing the aforementioned services.

     7.   LIMITATION OF LIABILITY
          -----------------------

     In the event that either party shall be liable to the other pursuant to the
terms of this Consulting Agreement for any failure to perform in connection with
this Consulting Agreement, that party's liability shall be limited as follows:

          (a)  All liabilities in contract and tort for direct loss shall be
               limited to the actual value of the shares paid in the year of the
               claim; and

          (b)  All liabilities in contract and in tort for incidental, indirect,
               special or consequential damages including, but not limited to,
               loss of revenues or profits shall be excluded.

     8.   CONFIDENTIAL INFORMATION
          ------------------------

     Each party may use the information received from the other party pursuant
to this Consulting Agreement and may provide such information to their
respective employees as applicable for their use only in connection with the
Agreement.

     Each party agrees that it shall use the same means it uses to protect its
own confidential and proprietary information to prevent the disclosure and to
protect the confidentiality of both

     (i)  written information received from the other party which is marked or
          identified as "confidential",

     (ii) written or verbal information which is of its nature confidential; and

<PAGE>
     (ii) oral or visual information identified as confidential at the time of
          disclosure which is reduced to written form and provided to the other
          in such written form promptly after such oral or visual disclosure,

     The foregoing shall not prevent either party from disclosing Information
that is:

    (iii) already known by the recipient party prior to the disclosure thereof
          with no obligation of confidentiality;

     (iv) publicly known or becomes publicly known not due to any unauthorized
          act of the recipient party;

     (v)  rightfully received from a third party;

     (vi) independently developed by the recipient party without use of the
          other party's Information;

    (vii) disclosed without similar restrictions by the party owning the
          Information to any third party;

   (viii) approved by the other party for disclosure; or

     (ix) required to be disclosed pursuant to a governmental or legal
          requirement provided that the disclosing party gives to the other
          party written notice of such requirement prior to any such disclosure.

          Upon expiration or termination of the Consulting Agreement or upon
written request of the party providing the Information, the other party shall
return all copies of the Information to the providing party or certify in
writing that all copies of the Information have been destroyed. Either party may
return the Information, or any part of it, to the other party at any time.

          Each party makes no warranty, express or implied, with respect to the
Information. Neither party shall be liable to the other or to any other person
hereunder for amounts representing loss of profits or loss of business or
indirect, consequential or punitive damages of the other party or of such other
person in connection with the provision or use of the Information hereunder.

          Nothing contained in this Agreement shall be construed as granting or
conferring any rights by license or otherwise in the Information.

          Each party acknowledges and agrees that the Information is the
confidential and/or proprietary and/or trade secret information of the other and
the unauthorized use or disclosure of the Information could cause irreparable
harm and significant injury to the other party for which that other party would
have no adequate remedy at law.

<PAGE>
          Therefore each party shall have the right, in addition to any other
rights it may have at law or in equity, to seek and obtain immediate injunctive
relief in respect of any breach or potential breach of this Consulting Agreement
by the other.

          The provisions of this Clause 8 shall survive the expiry or
termination for whatever reason of this Consulting Agreement.

     9.   MISCELLANEOUS
          -------------

     Termination: This Consulting Agreement may be terminated by either Party
     -----------
upon written notice to the other Party for any reason which shall be effective
five (5) business days from the date of such notice. This Consulting Agreement
shall be terminated immediately upon written notice for material breach of this
Consulting Agreement.

     Modification: This Consulting Agreement sets forth the entire understanding
     ------------
of the Parties with respect to the subject matter hereof. This Consulting
Agreement may be amended only in writing signed by both Parties.

     Counterparts: This consulting agreement may be executed in any number of
     ------------
counterparts by original or facsimile signature by the authorized officer of
Dermisonics and Trainor each of which counterparts, when executed and delivered,
shall be an original but such counterparts together shall constitute one and the
same instrument.

     Notices: Any notice required or permitted to be given hereunder shall be in
     -------
writing and shall be mailed or otherwise delivered in person or by facsimile
transmission at the address of such Party set forth blow or to such other
address or facsimile telephone number as the Party shall have furnished in
writing to the other Party:

     For Dermisonics:         Dermisonics, Inc.,
                              Four Tower Bridge,
                              200 Bar-Harbor Drive,
                              West Conshohoken, PA
                              U.S.A.         19428-2977

     For Trainor:             Robert Trainor,
                              3 Aghamor Park,
                              Strathfoyle, Londonderry,
                              BT471XF Northern Ireland

     Waiver: Any waiver by either Party of a breach of any provision of this
     ------
Consulting Agreement shall not operate as or be construed to be a waiver of any
other breach of that provision or of any breach of any other provision of this
Consulting Agreement. The failure of a Party to insist upon strict adherence to
any term of this Consulting Agreement on one or more occasions will not be
considered a waiver or deprive that Party of the right thereafter to insist upon
adherence to that term of any other term of this Consulting Agreement.

<PAGE>
     Severability: If any provision of this Consulting Agreement is invalid,
     ------------
illegal, or unenforceable, the balance of this Consulting Agreement shall remain
in effect, and if any provision is inapplicable to any person or circumstance,
it shall nevertheless remain applicable to all other persons and circumstances.

     Disagreements: Any dispute or other disagreement arising from or out of
     -------------
this Consulting Agreement shall be submitted to arbitration under the rules of
the American Arbitration Association and the decision of the arbiter(s) shall be
enforceable in any court having jurisdiction thereof. Arbitration shall occur
only in the State of California. The interpretation and the enforcement of this
Agreement shall be governed by California Law as applied to residents of the
State of Califonia relating to contracts executed in and to be performed solely
within the State of California. In the event any dispute is arbitrated, the
prevailing Party ( as determined by the arbiter(s)) shall be entitled to recover
that Party's reasonable attorney's fees incurred ( as determined by the
arbiter(s)).

     IN WITNESS THEREOF, this Consulting Agreement has been executed by the
Parties as of the date first above written.

                                        Dermisonics, Inc.

                                        /s/Bruce H. Haglund
                                        -------------------------

                                        Bruce H. Haglund,
                                        President

/s/ Mary Anne Bradley                   /s/Robert Trainor
-------------------------               -------------------------

Witness                                 Robert TrainorTHESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS  AMENDED (THE "ACT"), OR ANY STATE SECURITIES LAWS.  THESE SECURITIES MAY NOT
BE  SOLD  OR  OFFERED  FOR  SALE  EXCEPT  PURSUANT  TO AN EFFECTIVE REGISTRATION
STATEMENT  UNDER  THE  ACT  AND  ANY  APPLICABLE  STATE  SECURITIES  LAWS  OR AN
APPLICABLE  EXEMPTION  FROM  SUCH  REQUIREMENTS.

                            $25,000 PRINCIPAL AMOUNT

                                DERMISONICS, INC.

                8.0% CONVERTIBLE DEBENTURE DUE  DECEMBER 13, 2005

     THIS DEBENTURE is issued by DERMISONICS, INC., a corporation duly organized
and  existing  under  the  laws  of  the State of Nevada (the "Company"), and is
designated as the Company's 8.0% Convertible Debenture Due December 13, 2005, in
an  aggregate  principal amount equal to Twenty-five Thousand U.S. Dollars (U.S.
$25,000)  (the  "Debenture").

     FOR  VALUE  RECEIVED, the Company promises to pay to HYMAN FEIN, 3000 Bronx
Park  East,  Bronx,  New  York  10467,  the  initial holder hereof, or its order
(including  successors-in-interest,  the  "Holder"),  the  principal  sum  of
Twenty-five  Thousand  U.S.  Dollars  (U.S. $25,000) on a date one year from the
execution  date hereof, being December 13, 2005 (the "Maturity Date") and to pay
interest on the principal sum outstanding under this Debenture (the "Outstanding
Principal  Amount"),  at  the  rate  of  8.0%  per  annum.

     All  principal  and  interest  shall be due on the Maturity Date.  Interest
shall  accrue  daily  commencing  on  the  date  hereof and shall continue until
payment  in  full  of  all  amounts  due  under this Debenture.  The interest so
payable will be paid to the person in whose name this Debenture is registered on
the records of the Company regarding registration and transfers of the Debenture
(the "Debenture Register").  The Maturity Date may be extended at the discretion
of the Holder on a month-to-month basis for up to one year by written instrument
executed  by Holder.  Approval of any extension by Holder does not oblige Holder
to  approve  any  further  extension.

     The  principal of, interest on, and default payments (referred to below) in
respect  of  this  Debenture  are payable in such coin or currency of the United
States  as  of  the  time  of  payment is legal tender for payment of public and
private  debts,  at  the address last appearing on the Debenture Register of the
Company  as  designated  in  writing  by  the  Holder  hereof from time to time.

     This  Debenture  is  subject  to  the  following  additional  provisions:

                                        1
<PAGE>
     1.  DENOMINATION.  The  Debentures  are exchangeable for an equal aggregate
         ------------
principal  amount  of Debentures of different denominations, as requested by the
Holder  surrendering  the  same.  No  service  charge  will  be  made  for  such
registration  or  transfer  or  exchange.

     2.  TRANSFERS.  This  Debenture  may  be  transferred  or  exchanged in the
         ---------
United  States  only  in  compliance with the Securities Act of 1933, as amended
(the  "Act")  and  applicable  state  securities  laws, or applicable exemptions
therefrom.  Prior to due presentment for transfer of this Debenture, the Company
may  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,  whether  or  not  this  Debenture  is  overdue.

     3.  DEFINITIONS.  For  purposes  hereof  the  following  definitions  shall
         -----------
apply:

         "Change  in  Control Transaction" shall mean the occurrence of (x) any
          ---------------------------------
consolidation  or  merger  of  the Company with or into any other corporation or
other  entity  or  person  (whether  or  not  the  Company  is  the  surviving
corporation),  or any other corporate reorganization or transaction or series of
related  transactions in which in excess of 50% of the Company's voting power is
transferred  through  a  merger,  consolidation,  tender  offer  or  similar
transaction,  or  (y)  any person (as defined in Section 13(d) of the Securities
Exchange  Act  of  1934,  as  amended  (the  "Exchange Act")), together with its
affiliates and associates (as such terms are defined in Rule 405 under the Act),
beneficially  owns  or is deemed to beneficially own (as described in Rule 13d-3
under  the  Exchange Act without regard to the 60-day exercise period) in excess
of  50%  of  the  Company's  voting  power.

         "Closing  Date"  shall  mean  the  date  of  original issuance of this
          -------------
Debenture.

         "Common  Stock"  shall  mean  the  common  stock  of  the  Company.
          -------------

         "Conversion  Notice" shall have the meaning set forth in Section 4(d).
          ------------------

         "Conversion  Price"  shall have the meaning set forth in Section 4(b).
          -----------------

         "Holder  Conversion  Date" shall have the meaning set forth in Section
          ------------------------
5(c).

         "Trading  Day" shall mean a day on which the Common Stock is traded on
          ------------
the principal exchange on which the Common Stock has been listed (or any similar
organization  or  agency  succeeding  such  market  or  exchange's  functions of
reporting  prices).

                                        2
<PAGE>
     4.   CONVERSION AT  THE OPTION OF THE HOLDER.  The Holder of this Debenture
         ----------------------------------------
shall  have  the  following  conversion  rights.

          (a)  Holder's  Right  to Convert.  At any time subsequent to issuance,
               ---------------------------
the  Outstanding  Principal Amount (plus accrued but unpaid interest and default
payments)  under this Debenture shall be convertible in whole or in part, at the
option  of the Holder hereof, into fully paid, validly issued, and nonassessable
shares  of  Common Stock.  If this Debenture is converted in part, the remaining
portion  of  this  Debenture not so converted shall remain entitled to be repaid
and  to  the  conversion  rights  provided  herein.

          (b)  Conversion  Price  for  Holder Converted Shares.  The Outstanding
               -----------------------------------------------
Principal Amount (plus accrued but unpaid interest and default payments) of this
Debenture  that  is  converted  into shares of Common Stock at the option of the
Holder  shall be convertible into fully paid and non-assessable shares of Common
Stock  of the Company, at a conversion price equal to the lesser of (i) $.90 per
share  (as  adjusted  for  any stock splits, stock dividends and similar events)
(the  "Conversion Price"), or (ii) the number of shares of Common Stock equal to
60%  of  the  five-day average closing price of the Common Stock once the Common
Stock  has  exceeded  an  average  daily  trading volume of 100,000 shares for a
period  of  10  consecutive  trading  days  (the  "Reset  Conversion  Price").

          (c)  Mechanics  of Conversion.  In order to convert this Debenture (in
               ------------------------
whole  or  in  part) into full shares of Common Stock, the Holder (i) shall give
written  notice  in  the form of Exhibit "1" hereto (the "Conversion Notice") by
facsimile  to  the  Company at such office that the Holder elects to convert the
principal  amount  (plus  accrued  but  unpaid  interest  and  default payments)
specified  therein,  which  such  notice  and election shall be revocable by the
Holder at any time prior to its receipt of the Common Stock upon conversion, and
(ii)  as  soon as practicable after such notice, shall surrender this Debenture,
duly  endorsed, by either overnight courier or two-day courier, to the principal
office  of  the  Company;  provided,  however,  that  the  Company  shall not be
                           --------   -------
obligated  to  issue  certificates  evidencing  the  shares  of the Common Stock
issuable  upon  such  conversion  unless  either  the  Debenture  evidencing the
principal  amount  is  delivered to the Company as provided above, or the Holder
notifies  the Company that such Debenture(s) have been lost, stolen or destroyed
and  promptly  executes  an  agreement reasonably satisfactory to the Company to
indemnify the Company from any loss incurred by it in connection with such lost,
stolen or destroyed Debentures.  If a Holder is converting less than the maximum
number  of  shares it may convert under its Debenture, the Company shall reissue
the  Debenture  with  the  appropriate  remaining  principal  amount  as soon as
practicable  after  the  Company  shall  have  received the Holder's surrendered
Debenture.

                                        3
<PAGE>
               The  Company  shall  issue and deliver within one business day of
the  delivery  to  the  Company  of  such  Conversion  Notice, to such Holder of
Debenture(s)  at the address of the Holder, or to its designee, a certificate or
certificates  for the number of shares of Common Stock to which the Holder shall
be  entitled  as  aforesaid, together with a calculation of the Conversion Price
and  a  Debenture  or  Debentures  for  the  principal  amount of Debentures not
submitted for conversion.  The date on which the Conversion Notice is given (the
"Holder Conversion Date") shall be deemed to be the date the Company received by
facsimile  the  Conversion Notice, and the person or persons entitled to receive
the  shares  of  Common Stock issuable upon such conversion shall be treated for
all  purposes  as the record holder or holders of such shares of Common Stock on
such  date.

               In  lieu  of  delivering  physical  certificates representing the
Common  Shares  issuable  upon  conversion of Debentures, provided the Company's
transfer  agent  is  participating  in the Depository Trust Company ("DTC") Fast
Automated  Securities Transfer ("FAST") program, upon request of the holder, the
Company shall use its best efforts to cause its transfer agent to electronically
transmit  the  Common Shares issuable upon conversion or exercise to the Holder,
by  crediting  the account of Holder's prime broker with DTC through its Deposit
Withdrawal  Agent  Commission  ("DWAC")  system.  The  time periods for delivery
described  above  shall  apply  to  the electronic transmittals through the DWAC
system.  The  parties agree to coordinate with DTC to accomplish this objective.
The  conversions  pursuant to Sections 5 and 6 shall be deemed to have been made
immediately  prior  to the close of business on the Holder Conversion Date.  The
person  or  persons  entitled  to  receive  the Common Shares issuable upon such
conversion  shall be treated for all purposes as the record holder or holders of
such  Common  Shares  at  the  close  of business on the Holder Conversion Date.

          (d)  Limitations on Right to Convert.  In no event shall the Holder be
               -------------------------------
permitted  to  convert principal of this Debenture in excess of that amount upon
the  Conversion  of  which:

               (i)  the  number  of  Conversion  Shares to be issued pursuant to
such  Conversion,  when  added  to  the  number of shares of Common Stock issued
pursuant  to  all prior Conversions of the Debenture, would exceed 19.99% of the
number  of  shares  of  Common Stock outstanding on the Closing Date (subject to
equitable  adjustment  from  time  to time for the events described in Section 5
below)  (the  "Cap  Amount"), except that such limitation shall not apply in the
               -----------
event  that the Company obtains the approval of the holders of a majority of the
Company's  outstanding Common Stock ("Stockholder Approval") for the issuance of
                                      --------------------
Common  Stock  in excess of the Cap Amount. In the event that, as a result of an
adjustment  or  reset  to  the  Conversion Price, the number of shares of Common
Stock  issuable upon conversion of the entire principal amount of this Debenture
outstanding  on  the  effective date of such adjustment or reset exceeds the Cap
Amount  (without  regard  to  any  other  limitations

                                        4
<PAGE>
on  such  Conversion  that  may  be imposed by the terms of this Debenture), the
Holder  shall  have the right, upon delivery of written notice to the Company at
any  time on or after the effective date of such adjustment or reset, to require
the  Company to redeem the amount of principal of this Debenture that the Holder
would  be  unable  to  convert as a result of the limitation imposed hereby at a
redemption  price equal to the amount of such principal plus all unpaid interest
                                                        ----
and  other amounts accrued on this Debenture.  Such redemption shall be effected
on  or  before  the  fifth Business Day following receipt by the Company of such
written  notice by delivery of immediately available funds in the amount of such
redemption price to the Holder.  In the event of a sale of other transfer of all
or any portion of this Debenture to a third party, such party shall be allocated
a  pro rata share of the Cap Amount and shall be deemed to assume the rights and
obligations  provided  by  the  terms  of  this  Section  4(e)(i);  or

               (ii)  (x)  the  number of Conversion Shares to be issued pursuant
to  such  Conversion  plus (y) the number of shares of Common Stock beneficially
                      ----
owned  by  the  Holder (other than Common Stock which may be deemed beneficially
owned  except  for  being  subject  to  a  limitation  on conversion or exercise
analogous  to  the limitation contained in this subsection (e)(ii)) would exceed
9.99%  of  the  number of shares of Common Stock then issued and outstanding, it
being the intent of the Corporation and the Holder that the Holder not be deemed
at  any  time  to have the power to vote or dispose of greater than 9.99% of the
number  of  shares  of  Common Stock issued and outstanding at any time. Nothing
contained  herein shall be deemed to restrict the right of the Holder to convert
such  excess  principal  amount at such time as such Conversion will not violate
the  provisions of this subsection (e)(ii). As used herein, beneficial ownership
shall  be determined in accordance with Section 13(d) of the Securities Exchange
Act  of  1934,  as  amended,  and  the rules thereunder.  To the extent that the
limitation contained in this subsection (e)(ii) applies, the Company may rely on
the Holder's determination of whether principal of this Debenture is convertible
pursuant  to  the  terms  hereof, the Company having no obligation whatsoever to
verify  or  confirm  the accuracy of such determination, and the submission of a
Conversion  Notice  by  the  Holder  shall  be  deemed  to  be  the  Holder's
representation  that  the  principal  amount  specified  therein  is convertible
pursuant  to  the  terms  hereof.  The  holders of Common Stock are to be deemed
third-party  beneficiaries  of  the  limitation imposed hereby and, accordingly,
this  subsection  may  not  be  amended  without the consent of the holders of a
majority of the shares of Common Stock then outstanding; provided, however, that
                                                         --------  -------
the  Holder  shall  have the right, upon written notice to the Company, to waive
the  provisions  of  this  subsection  (e)(ii) in the event that (a) a Change of
Control  Transaction  is  announced  or  effected or (b) a Liquidation Event (as
defined  below)  occurs.

     5.   CONVERSION  UPON  MATURITY.
          --------------------------

          (a)  At  the  Maturity  Date, the Outstanding Principal Amount of, and
all  accrued  and unpaid interest on, and default payments and all other amounts
owing

                                        5
<PAGE>
under,  all  Debentures  outstanding  at such time shall be paid in full in cash
without  notice  unless the Holder has elected to convert to Common Stock of the
Company  in  accordance  with  the  terms  of  the  Debentures.

          (b)  In  the  event  of  conversion to Common Stock, the Company shall
issue  and deliver within 10 business days after delivery to the Company of this
Debenture,  or  after  receipt of the agreement and indemnification described in
Section 4(d) above, to the Holder of the Debenture at the address of the Holder,
or  to  its  designee, a certificate or certificates for the number of shares of
Common  Stock  to  which the Holder shall be entitled hereunder, together with a
calculation  of the Conversion Price.  The person or persons entitled to receive
the  shares  of  Common Stock issuable upon such conversion shall be treated for
all  purposes  as the record holder or holders of such shares of Common Stock on
the  Maturity  Date.

     6.   COMPANY'S  RIGHT  OF  REDEMPTION.  Notwithstanding  anything  to  the
          --------------------------------
contrary  in  this  Agreement,  the  Company shall have the right to redeem this
Debenture  at  any time during the period after the Common Stock has exceeded an
average  daily  trading  volume of 100,000 shares for a period of 10 consecutive
trading  days until the Maturity Date, in whole or in part, on 15 business days'
notice  to the Holder, subject to the Holder's conversion rights being exercised
prior  to  the redemption date set forth in the redemption notice to the Holder.

     7.  STOCK  SPLITS;  DIVIDENDS;  ADJUSTMENTS;  REORGANIZATIONS.
         ---------------------------------------------------------

         (a)   If the Company, at any time while the Debentures are outstanding,
(i) shall pay a stock dividend or otherwise make a distribution or distributions
on  any  equity securities (including investments or securities convertible into
or  exchangeable  for  such  equity  securities) in shares of Common Stock, (ii)
issue  any  securities  payable  in  shares of Common Stock, (iii) subdivide the
outstanding  shares of Common Stock into a larger number of shares, (iv) combine
outstanding  shares  of  Common  Stock  into  a  smaller  number  of shares, the
Conversion  Price shall be multiplied by a fraction of which the numerator shall
be  the  number  of  shares of Common Stock outstanding before such event and of
which  the denominator shall be the number of shares of Common Stock outstanding
after  such  event.  Any  adjustment  made  pursuant  to this Section 8(a) shall
become  effective  immediately  after  the  record date for the determination of
shareholders  entitled to receive such dividend or distribution and shall become
effective  immediately  after  the  effective date in the case of an issuance, a
subdivision  or  a  combination.

         (b)   (1)     In  the event that at any time or from time to time after
the  Closing  Date,  the  Common  Stock  issuable  upon  the  conversion  of the
Debentures is changed into the same or a different number of shares of any class
or  classes  of  stock,  whether  by  merger,  consolidation,  recapitalization,
reclassification  or  otherwise  (other

                                        6
<PAGE>
than  a subdivision or combination of shares or stock dividend or reorganization
provided  for elsewhere in this Section 7), then and as a condition to each such
event  provision  shall be made in a manner reasonably acceptable to the Holders
of  Debentures so that each Holder of Debentures shall have the right thereafter
to  convert  such  Debenture  into  the  kind  of  stock  receivable  upon  such
recapitalization,  reclassification  or  other  change  by  holders of shares of
Common  Stock,  all  subject  to further adjustment as provided herein.  In such
event,  the  formulae  set  forth  herein for conversion and redemption shall be
equitably adjusted to reflect such change in number of shares or, if shares of a
new  class  of  stock  are  issued,  to reflect the market price of the class or
classes  of  stock  issued  in  connection with the above described transaction.

               (2)  If  at  any time or from time to time after the Closing Date
there  is  a  capital  reorganization of the Common Stock, including by way of a
sale  of  all  or  substantially  all of the assets of the Company (other than a
recapitalization,  subdivision,  combination,  reclassification  or  exchange of
shares  provided  for  elsewhere  in  this  Section 7), then, as a part of and a
condition to such reorganization, provision shall be made in a manner reasonably
acceptable  to  the  Holders  of  the  Debentures  so  that  the  Holders of the
Debentures  shall  thereafter  be  entitled  to  receive  upon conversion of the
Debentures  the  number  of  shares  of stock or other securities or property to
which  a  holder  of  the  number  of  shares  of  Common Stock deliverable upon
conversion  would  have  been  entitled  on  such  capital  reorganization.

          (c)  Whenever any element of the Conversion Price is adjusted pursuant
to  Section  7(a)  or (b), the Company shall promptly mail to each Holder of the
Debentures,  a  notice  setting forth the Conversion Price after such adjustment
and  setting  forth  a  brief  statement of the facts requiring such adjustment.

          (d)  In  the  event  of any setting by the Company of a record date of
the  holders  of  any  class  of  securities  for the purpose of determining the
holders  thereof who are entitled to receive any dividend or other distribution,
any  security  or right convertible or exchangeable into or entitling the holder
thereof  to receive additional shares of Common Stock, or any right to subscribe
for, purchase or otherwise acquire any shares of stock of any class or any other
securities or property, or to receive any other right, the Company shall deliver
to  each  Holder  of  Debentures  at  least  20 days prior to the date specified
therein,  a  notice  specifying the date on which any such record is to be taken
for the purpose of such dividend, distribution, security or right and the amount
and  character  of  such  dividend,  distribution,  security  or  right.

     8.     RESERVATION OF SHARES; FRACTIONAL SHARES.  The Company hereby agrees
            ----------------------------------------
that  at  all  times  there  shall be reserved for issuance and/or delivery upon
conversion  of this Debenture and issuance of Common Stock such number of shares
of  its  Common  Stock  (to  the  extent  determinable) as shall be required for
issuance  and  delivery upon conversion of this Debenture and issuance of Common
Stock.  No  fractional  shares  of

                                        7
<PAGE>
Common  Stock  or  scrip representing fractional shares of Common Stock shall be
issuable hereunder.  The number of shares of Common Stock that are issuable upon
any  conversion  shall  be  rounded  up  to  the  nearest  whole  share.

     9.  NO  REISSUANCE OF THE DEBENTURE.  No Debentures acquired by the Company
         -------------------------------
by  reason of redemption, purchase, exchange or otherwise shall be reissued, and
all  such  Debentures  shall  be  retired.

     10.  WAIVERS  OF DEMAND, ETC.  The Company hereby expressly and irrevocably
          -----------------------
waives demand and presentment for payment, notice of nonpayment, protest, notice
of  protest, notice of dishonor, notice of acceleration or intent to accelerate,
bringing  of  suit  and diligence in taking any action to collect amounts called
for  hereunder  and will be directly and primarily liable for the payment of all
sums  owing  and  to  be  owing  hereon,  regardless  of and without any notice,
diligence,  act  or  omission as or with respect to the collection of any amount
called  for  hereunder.

     11.  REPLACEMENT  DEBENTURE.  In  the  event  that  any Holder notifies the
          ----------------------
Company  that  its Debenture(s) have been lost, stolen or destroyed, replacement
Debenture(s)  identical in all respects to the original Debenture(s) (except for
registration  number  and  Outstanding  Principal Amount, if different than that
shown  on  the  original  Debenture(s)), shall be issued to the Holder, provided
that  the  Holder  executes  and delivers to the Company an agreement reasonably
satisfactory  to  the Company to indemnify the Company from any loss incurred by
it  in  connection  with  such  Debenture.

     12.  PAYMENT OF EXPENSES; ISSUE TAXES.  The Company agrees to pay all debts
          --------------------------------
and  expenses, including attorneys' fees, which may be incurred by the Holder in
enforcing  the  provisions  of  this  Debenture and/or collecting any amount due
under  this  Debenture or the Purchase Agreement.  The Company shall pay any and
all  issue  and  other  taxes (excluding any income, franchise or similar taxes)
that maybe payable in respect of any issue or delivery of shares of Common Stock
on  conversion  of  any  Debenture  pursuant  hereto.

     13.  DEFAULTS/LIQUIDATED  DAMAGES.
          ----------------------------

          (a)  If  one  or  more  of the following described "Events of Default"
shall  occur:

               (i)  (A)  The  Company shall default in the payment of principal,
          interest  and  all  other  amounts  due  on this Debenture, or (B) The
          Company  shall  have  breached  or be in breach of any representation,
          warranty,  covenant  or  agreement made by the Company in the Purchase
          Agreement;  or

                                        8
<PAGE>
               (ii)  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 30 days after
          such  appointment;  or

               (iii)  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
          30  days  thereafter;  or

               (iv)  Bankruptcy,  reorganization,  insolvency  or  liquidation
          proceedings  or  other proceedings, or relief under any bankruptcy law
          or  any  law  for the relief of debt shall be instituted by or against
          the  Company  and,  if  instituted  against  the  Company shall not be
          dismissed  within 30 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 to any material allegations of, or default
          in  answering  a  petition  filed  in  any  such  proceeding

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 the
Debenture  immediately  due and payable, without presentment, demand, protest or
notice of any kind, all of which are hereby expressly waived, anything herein or
in  any  other  instruments  contained  to the contrary notwithstanding, and the
Holder  may  immediately, and without expiration of any period of grace, enforce
any  and  all  of  the Holder's rights and remedies provided herein or any other
rights  or  remedies  afforded  by  law.  In  such event, the Debenture shall be
redeemed  at  a  redemption price per Debenture equal to 120% of the Outstanding
Principal  Amount of the Debenture, plus accrued but unpaid interest and default
payments on the Debenture at an interest rate of 13% as a default interest rate.

     14.  REGISTRATION  RIGHTS.
          --------------------

          (a)  As  used  in  this  Debenture, the following terms shall have the
following  meanings:

               (i)  "Business  Day"  shall mean a day, Monday through Friday, on
                     -------------
          which  banks  are  generally  open for business in New York, New York.

               (ii)  "Person"  shall  mean  any person, individual, corporation,
                      ------
          limited liability company, partnership, trust or other nongovernmental

                                        9
<PAGE>
          entity  or  any  governmental  agency,  court, authority or other body
          (whether  foreign,  federal,  state,  local  or  otherwise).

               (iii) The terms "register," "registered" and "registration" refer
                                --------    ----------       ------------
          to  the  registration  effected  by  preparing  and  filing  with  the
          Securities  and  Exchange  Commission  (the  "SEC")  a  registration
          statement  in compliance with the Act, and the declaration or ordering
          by  the  SEC  of  the  effectiveness  of  such registration statement.

               (iv)  "Registrable  Securities"  shall mean The term "Registrable
                      -----------------------
          Securities"  shall  mean: (A) the Common Stock issued or issuable upon
          conversion  of  Holder's  Debenture;  and  (B)  Common  Stock or other
          securities  of the Company issued (or issuable upon the conversion) as
          a  dividend  or  other  distribution  with  respect  to  Common Stock;
          excluding  in  all  cases, however, any Registrable Securities sold to
          the  public  pursuant to a registration under the Act or an applicable
          exemption  therefrom.

               (v)  "Registration  Expenses" shall mean all expenses incurred by
                     ----------------------
          the Company in complying with Section 14(b) hereof, including, without
          limitation,  all registration, qualification and filing fees, printing
          expenses,  escrow  fees, fees and expenses of counsel for the Company,
          blue  sky  fees  and  expenses  and  the expense of any special audits
          incident  to, or required by, any such registration (but excluding the
          aggregate  fees  of  legal  counsel  for  all  Holders).

          (b)  The  Company  shall not later than 180 days after the date hereof
(the  "Filing Date"), (i) use its reasonable best efforts to file with the SEC a
registration statement (the "Registration Statement") with respect to the resale
of  the  Registrable Securities and use its reasonable best efforts to have such
Registration  Statement  declared  effective by the SEC within 240 days from the
date  hereof  and (ii) cause such Registration Statement to remain effective for
the  Registration  Period  (as  hereafter  defined).

          (c)  All  Registration  Expenses  incurred  in  connection  with  any
registration,  qualification,  exemption or compliance pursuant to Section 14(b)
shall  be  borne  by  the  Company.

          (d)  In  the  case  of  the  registration, qualification, exemption or
compliance  effected  by  the  Company  pursuant  to this Debenture, the Company
shall,  upon  reasonable  request,  inform  Holder  as  to  the  status  of such
registration,  qualification,  exemption  and  compliance.  At  its  expense the
Company  shall:

                                       10
<PAGE>
               (i)  use  its  reasonable best efforts to keep such registration,
          and  any qualification, exemption or compliance under state securities
          laws  which  the  Holders  reasonably  request  the Company to obtain,
          continuously  effective  as  to  all  Registrable Securities until the
          earlier  of:  (i)  the Holder having completed the distribution of the
          Registrable  Securities  described  in  the  Registration  Statement
          relating thereto; or (ii) with respect to any Holder, such time as all
          Registrable  Securities  then  held  by  such  Holder  may  be sold in
          compliance  with Rule 144 under the Act within any three-month period.
          The  period  of time during which the Company is required hereunder to
          keep  the  Registration  Statement  effective is referred to herein as
          "the  Registration  Period";

               (ii)  advise  the  Holder:

                    (A)  when  the  Registration  Statement  or  any  amendment
               thereto  has  been  filed  with the SEC and when the Registration
               Statement  or  any  post-effective  amendment  thereto has become
               effective;

                    (B)  of any request by the SEC for amendments or supplements
               to  the Registration Statement or the prospectus included therein
               or  for  additional  information;

                    (C)  of the issuance by the SEC of any stop order suspending
               the effectiveness of the Registration Statement or the initiation
               of  any  proceedings  for  such  purpose;

                    (D)  of  the receipt by the Company of any notification with
               respect to the suspension of the qualification of the Registrable
               Securities  included  therein for sale in any jurisdiction or the
               initiation or threatening of any proceeding for such purpose; and

                    (E)  of  the happening of any event that requires the making
               of any changes in the Registration Statement or the prospectus so
               that,  as of such date, the statements therein are not misleading
               and  do  not  omit to state a material fact required to be stated
               therein  or necessary to make the statements therein (in the case
               of  the prospectus, in the light of the circumstances under which
               they  were  made)  not  misleading;

               (iii)  make  every  reasonable effort to obtain the withdrawal of
          any  order  suspending the effectiveness of any Registration Statement
          at  the  earliest  possible  time;

                                       11
<PAGE>
               (iv) furnish to Holder, without charge, at least one copy of such
          Registration  Statement and any post-effective amendment or supplement
          thereto,  including  financial  statements  and schedules, and, if the
          Holder  so  requests  in  writing,  all  exhibits  (excluding  those
          incorporated  by  reference)  in  the  form  filed  with  the  SEC;

               (v)  during  the  Registration Period, deliver to Holder, without
          charge,  a  reasonable  number of copies of the prospectus included in
          such Registration Statement and any amendment or supplement thereto as
          Holder  may  reasonably  request; and the Company consents to the use,
          consistent  with  the  provisions  hereof,  of  the prospectus and any
          amendment  or  supplement thereto by the Holder in connection with the
          offering  and  sale  of  the  Registrable  Securities  covered  by the
          prospectus  and  any  amendment  or  supplement  thereto;

               (vi)  during  the  Registration  Period,  deliver to Holder, upon
          request,  (A)  a  copy  of  the full Registration Statement (excluding
          exhibits);  (B)  all  exhibits  excluded  by  the parenthetical to the
          immediately  preceding clause (A); and (C) such other documents as may
          be  reasonably  requested  by  the  Holder;

               (vii)  prior  to  any  public  offering of Registrable Securities
          pursuant  to the Registration Statement, register or qualify or obtain
          an  exemption  for the offer and sale under the securities or blue sky
          laws  of  such jurisdictions as Holder reasonably requests in writing,
          provided  that  the Company shall not for any such purpose be required
          to  qualify generally to transact business as a foreign corporation in
          any jurisdiction where it is not so qualified or to consent to general
          service  of process in any such jurisdiction, and do any and all other
          acts  or  things reasonably necessary or advisable to enable the offer
          and  sale  in such jurisdictions of the Registrable Securities covered
          by  the  Registration  Statement;

               (viii)  cooperate  with  the  Holder  to  facilitate  the  timely
          preparation  and  delivery  of  certificates  representing Registrable
          Securities  to be sold pursuant to the Registration Statement, free of
          any  restrictive  legends  to  the extent not required at such time as
          determined by the Company after consultation with legal counsel and in
          such denominations and registered in such names as Holder may request;

               (ix)  upon  the  occurrence  of any event contemplated by Section
          14(d)(ii)(E)  above,  the  Company  shall  promptly  prepare  a
          post-effective amendment to the Registration Statement or a supplement
          to  the  related  prospectus,  or  file any other required document so
          that,  as  thereafter  delivered  to  purchasers  of  the  Registrable
          Securities  included  therein,  the

                                       12
<PAGE>
          prospectus will not include any untrue statement of a material fact or
          omit  to  state  any  material  fact  necessary to make the statements
          therein, in the light of the circumstances under which they were made,
          not  misleading;  and

               (x)  use  its  reasonable  best efforts to comply in all material
          respects  with  all  applicable  rules and regulations of the SEC, and
          make  generally  available to the Holder not later than 45 days (or 90
          days if the fiscal quarter is the fourth fiscal quarter) after the end
          of  its  fiscal  quarter  in  which  the first anniversary date of the
          effective  date  of  the  Registration  Statement  occurs, an earnings
          statement  satisfying  the  provisions  of  Section  11(a) of the Act.

          (e)  [RESERVED].

          (f)  (i)  To  the extent permitted by law, the Company shall indemnify
each  Holder,  each  underwriter  of  the Registrable Securities and each person
controlling  such Holder and each such underwriter within the meaning of Section
15  of  the  Act,  with  respect  to  which  any  registration, qualification or
compliance  has  been  sought  pursuant  to  this Debenture, against all claims,
losses, expenses, costs, damages and liabilities (or action in respect thereof),
including  any  of  the  foregoing  incurred  in  settlement  of any litigation,
commenced  or  threatened (subject to Section 14(f)(iii)  below), arising out of
or based on (i) any untrue statement (or alleged untrue statement) of a material
fact  contained  in any registration statement, prospectus or offering circular,
or  any  amendment  or  supplement  thereof,  incident to any such registration,
qualification  or  compliance, or based on any omission (or alleged omission) to
state therein a material fact required to be stated therein or necessary to make
the  statements  therein  not  misleading in light of the circumstances in which
they were made, or (ii) any violation or alleged violation by the Company of the
Act,  the  Exchange  Act, or any rule or regulation promulgated under the Act or
the  Exchange  Act,  and  shall  reimburse  each Holder, each underwriter of the
Registrable  Securities  and  each  person controlling such Holder and each such
underwriter,  for  reasonable  legal  and  other  expenses,  in  connection with
investigating  or defending any such claim, loss, damage, liability or action as
and  when  incurred;  provided  that the Company shall not be liable in any such
case  to  the extent that any untrue statement or omission or allegation thereof
is made in reliance upon and in conformity with written information furnished to
the  Company  by  or  on  behalf  of such Holder or underwriter and stated to be
specifically  for  use in preparation of such registration statement, prospectus
or offering circular; provided that the foregoing indemnity agreement is subject
to  the  condition  that,  insofar as it relates to any such untrue statement or
alleged untrue statement or omission or alleged omission made in the preliminary
prospectus but eliminated or remedied in the amended prospectus on file with the
SEC  at  the time the registration statement becomes effective or in the amended
prospectus  filed  with  the  SEC  pursuant  to  Rule  424(b)  of  the

                                       13
<PAGE>
Act  or in the prospectus subject to completion under Rule 434 of the Act, which
together  meet  the  requirements  of  Section  10(a)  of  the  Act  (the "Final
Prospectus"),  such  indemnity  agreement  shall not inure to the benefit of any
such  Holder,  any such underwriter or any such controlling person, if a copy of
the Final Prospectus furnished by the Company to the Holder for delivery was not
furnished to the person or entity asserting the loss, liability, claim or damage
at  or  prior  to  the time such furnishing is required by the Act and the Final
Prospectus  would  have  cured  the  defect giving rise to such loss, liability,
claim  or  damage.  Notwithstanding  any  provision  herein to the contrary, the
Company  shall  reimburse  each  Holder,  upon  such  Holder's  demand,  for all
reasonably  necessary  expenses  and  costs  which  are  incurred,  as  and when
incurred,  by such Holder as a result of the indemnification claims described in
this  Section  14(f)(i).  Such  demand  may  be  made from time to time prior to
resolution  of  the  claim.

               (ii)  Holder  will  severally,  if Registrable Securities held by
          such  Holder  are  included  in  the  securities  as  to  which  such
          registration, qualification or compliance is being effected, indemnify
          the  Company,  each of its directors and officers, each underwriter of
          the  Registrable  Securities  and each person who controls the Company
          and  each underwriter of the Registrable Securities within the meaning
          of Section 15 of the Act, against all claims, losses, expenses, costs,
          damages and liabilities (or actions in respect thereof), including any
          of  the  foregoing incurred in settlement of any litigation, commenced
          or threatened (subject to Section 14(f)(iii) below), arising out of or
          based  on  any  untrue  statement  (or  alleged untrue statement) of a
          material  fact  contained in any registration statement, prospectus or
          offering circular, or any amendment or supplement thereof, incident to
          any  such  registration,  qualification  or compliance or based on any
          omission  (or  alleged  omission)  to  state  therein  a material fact
          required  to  be  stated  therein  or necessary to make the statements
          therein  not  misleading  in  light of the circumstances in which they
          were  made,  and  will  reimburse  the  Company,  such  directors  and
          officers,  each  underwriter  of  the  Registrable Securities and each
          person controlling the Company and each underwriter of the Registrable
          Securities  for  reasonable  legal  and  any  other  expenses or costs
          reasonably  incurred in connection with investigating or defending any
          such  claim,  loss,  damage,  liability or action as incurred, in each
          case to the extent, but only to the extent, that such untrue statement
          or  omission  or  allegation  thereof is made in reliance upon, and in
          conformity with, written information furnished to the Company by or on
          behalf  of  the  Holder  and  stated  to  be  specifically  for use in
          preparation  of  such  registration  statement, prospectus or offering
          circular;  provided  that  the indemnity shall not apply to the extent
          that  such claim, loss, damage or liability results from the fact that
          a  current  copy  of

                                       14
<PAGE>
          the  prospectus  or  offering  circular  was not made available to the
          Holder  and  such  current copy of the prospectus or offering circular
          would  have cured the defect giving rise to such loss, claim, expense,
          costs, damage or liability. Notwithstanding the foregoing, in no event
          shall a Holder be liable for any such claims, losses, expenses, costs,
          damages  or  liabilities  in  excess  of the proceeds received by such
          Holder  in that offering, except in the event of fraud by such Holder.

               (iii)  Each  party entitled to indemnification under this Section
          14(f)  (the  "Indemnified  Party")  shall  give  notice  to  the party
          required  to  provide  indemnification  (the  "Indemnifying  Party")
          promptly  after  such  Indemnified  Party  has actual knowledge of any
          claim  as  to  which  indemnity  may  be  sought, and shall permit the
          Indemnifying  Party  to  assume  the  defense of any such claim or any
          litigation  resulting  therefrom,  provided  that  counsel  for  the
          Indemnifying  Party,  who  shall  conduct the defense of such claim or
          litigation, shall be approved by the Indemnified Party (whose approval
          shall  not  unreasonably  be  withheld), and the Indemnified Party may
          participate  in  such defense with its own counsel at such Indemnified
          Party's  expense  unless  the  named parties to any proceeding covered
          hereby  (including  any impleaded parties) include both the Company or
          any  others  the  Company  may  designate  and one or more Indemnified
          Persons,  and representation of the Indemnified Persons and such other
          parties  by  the  same counsel would be inappropriate due to actual or
          potential  differing interests between them, and provided further that
          the failure of any Indemnified Party to give notice as provided herein
          shall not relieve the Indemnifying Party of its obligations under this
          Debenture,  unless  such  failure  is  materially  prejudicial  to the
          Indemnifying  Party  in  defending  such  claim  or  litigation.  An
          Indemnifying Party shall not be liable for any settlement of an action
          or  claim effected without its written consent (which consent will not
          be  unreasonably  withheld).

               (iv) If the indemnification provided for in this Section 14(f) is
          held  by  a  court  of  competent jurisdiction to be unavailable to an
          Indemnified  Party with respect to any loss, liability, claim, damage,
          cost  or  expense referred to therein, then the Indemnifying Party, in
          lieu  of  indemnifying  such  Indemnified  Party  thereunder,  shall
          contribute  to the amount paid or payable by such Indemnified Party as
          a  result  of  such loss, liability, claim, damage, cost or expense in
          such proportion as is appropriate to reflect the relative fault of the
          Indemnifying Party on the one hand and of the Indemnified Party on the
          other in connection with the statements or omissions which resulted in
          such  loss,  liability,  claim, damage, cost or expense as well as any
          other  relevant  equitable  considerations.  The relative fault of the
          Indemnifying  Party  and  of  the

                                       15
<PAGE>
          Indemnified  Party  shall  be  determined by reference to, among other
          things,  whether  the untrue or alleged untrue statement of a material
          fact  or  the omission to state a material fact relates to information
          supplied  or which should have been supplied by the Indemnifying Party
          or  by  the  Indemnified  Party  and  the  parties'  relative  intent,
          knowledge, access to information and opportunity to correct or prevent
          such  statement  or  omission.

          (g)  With  a  view  to  making available to the Holder the benefits of
certain  rules  and  regulations of the SEC which at any time permit the sale of
the Registrable Securities to the public without registration, the Company shall
use  its  reasonable  best  efforts:

               (i)  to  make  and  keep  public  information available, as those
          terms  are  understood  and  defined in Rule 144 under the Act, at all
          times;

               (ii)  to  file  with  the  SEC in a timely manner all reports and
          other  documents  required  of the Company under the Exchange Act; and

               (iii)  so  long  as  a Holder owns any Registrable Securities, to
          furnish to such Holder upon any reasonable request a written statement
          by  the  Company as to its compliance with Rule 144 under the Act, and
          of the Exchange Act, and a copy of the most recent annual or quarterly
          report  of  the  Company,  and such other reports and documents of the
          Company  as  such  Holder may reasonably request in availing itself of
          any  rule  or regulation of the SEC allowing a Holder to sell any such
          securities  without  registration.

     15.  SAVINGS  CLAUSE.  In case any provision of this Debenture is held by a
          ---------------
court of competent jurisdiction to be excessive in scope or otherwise invalid or
unenforceable, such provision shall be adjusted rather than voided, if possible,
so  that  it is enforceable to the maximum extent possible, and the validity and
enforceability of the remaining provisions of this Debenture will not in any way
be  affected  or  impaired thereby, and such provision shall remain effective in
all  other  jurisdictions.

     16.  ENTIRE  AGREEMENT.  This  Debenture  and the agreements referred to in
          -----------------
this  Debenture  constitute  the  full  and  entire  understanding and agreement
between  the Company and the Holder with respect to the subject hereof.  Neither
this  Debenture  nor  any  term  hereof  may  be  amended, waived, discharged or
terminated  other  than  by  a  written instrument signed by the Company and the
Holder.

     17.  ASSIGNMENT, ETC.  The Holder (but not the Company) may without notice,
          ----------------
transfer  or  assign  this  Debenture  or  any interest herein and may mortgage,
encumber  or

                                       16
<PAGE>
transfer  any  of  its  rights  or interest in and to this Debenture or any part
hereof  and,  without limitation, each assignee, transferee and mortgagee (which
may  include  any  affiliate  of the Holder) shall have the right to transfer or
assign  its  interest.  Each  such assignee, transferee and mortgagee shall have
all  of the rights of the Holder under this Debenture.  The Company agrees that,
subject  to compliance with the Purchase Agreement, after receipt by the Company
of  written  notice of assignment from the Holder or from the Holder's assignee,
all  principal,  interest and other amounts which are then and thereafter become
due  under this Debenture shall be paid to such assignee at the place of payment
designated in such notice.  This Debenture shall be binding upon the Company and
its  successors  and affiliates and shall inure to the benefit of the Holder and
its  successors  and  assigns.

     18.  NO  WAIVER.  No  failure on the part of the Holder to exercise, and no
          ----------
delay  in  exercising  any  right,  remedy or power hereunder shall operate as a
waiver  thereof,  nor  shall any single or partial exercise by the Holder of any
right,  remedy  or  power hereunder preclude any other or future exercise of any
other  right,  remedy  or  power.  Each  and every right, remedy or power hereby
granted  to  the  Holder  or  allowed  it  by  law  or  other agreement shall be
cumulative  and  not  exclusive of any other, and may be exercised by the Holder
from  time  to  time.

     19.  NOTICES.  The  Company  shall  distribute to the Holders of Debentures
          -------
copies  of  all  notices,  materials,  annual  and  quarterly  reports,  proxy
statements, information statements and any other documents distributed generally
to  the  holders  of shares of Common Stock of the Company, at such times and by
such  method  as  such  documents are distributed to such holders of such Common
Stock,  but  shall  not  directly  or  indirectly  provide  material  non-public
information  to  the  Holder  without  such  Holder's  prior  written  consent.

     20.  MISCELLANEOUS.  Unless  otherwise provided herein, any notice or other
          -------------
communication to a party hereunder shall be sufficiently given if in writing and
personally  delivered,  facsimiled  or  mailed  to said party by certified mail,
return  receipt requested, at its address set forth herein or such other address
as  either  may  designate  for  itself  in  such  notice  to  the  other  and
communications  shall  be deemed to have been received when delivered personally
or,  if  sent  by mail or facsimile, then when actually received by the party to
whom  it  is addressed.  Whenever the sense of this Debenture requires, words in
the singular shall be deemed to include the plural and words in the plural shall
be  deemed  to  include the singular.  Section headings are for convenience only
and  shall  not  affect  the  meaning  of  this  document.

     21.  GOVERNING  LAW;  CONSENT  TO  JURISDICTION.  This  Debenture  shall be
          ------------------------------------------
governed  by and construed and enforced in accordance with the laws of the State
of New York applicable to contracts to be executed and performed entirely within
such  state.  The  Company  (i)  hereby  irrevocably  submits  to  the exclusive
jurisdiction  of  the

                                       17
<PAGE>
state  and  federal  court located in New York, New York for the purposes of any
suit,  action or proceeding arising out of or related to this Debenture 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.  The Company consents
to process being served in any such suit, action or proceeding by mailing a copy
thereof  to  such  party  as  provided herein and agrees that such service shall
constitute  good  and sufficient service of process and notice thereof.  Nothing
in  this  section  shall affect or limit any right to serve process in any other
manner  permitted  by  law.

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

                              DERMISONICS,  INC.

                              By:
                                   -----------------------------------------
                                   Bruce  H.  Haglund,  Chairman

                              Dated:
                                       -------------------------------------

                                       18
<PAGE>
                                   EXHIBIT "1"
            (Executed by Registered Holder to Convert the Debenture)

                                CONVERSION NOTICE

                                       FOR

                8.0% CONVERTIBLE DEBENTURE DUE DECEMBER 13, 2005

     The  undersigned,  as Holder of the 8.0% Convertible Debenture Due December
13,  2005  of  DERMISONICS,  INC.  (the "Company"), in the outstanding principal
amount  of  U.S. $25,000 (the "Debenture"), hereby irrevocably elects to convert
that  portion  of the outstanding principal amount of the Debenture shown on the
next  page  into  shares  of Common Stock, $.01 par value per share (the "Common
Stock"),  of the Company according to the conditions of the Debenture, as of the
date written below.  The undersigned hereby requests that share certificates for
the  Common  Stock  to  be issued to the undersigned pursuant to this Conversion
Notice  be  issued  in  the  name  of,  and delivered to, the undersigned or its
designee as indicated below.  If shares are to be issued in the name of a person
other  than the undersigned, the undersigned will pay all transfer taxes payable
with  respect thereto.  No fee will be charged to the Holder for any conversion,
except  for  transfer  taxes,  if  any.

Conversion Information:      Name of Holder:
                                                --------------------------------
                                                (Print  Name)

                             By:
                                    --------------------------------------------
                                    (Signature)

                                    --------------------------------------------
                                    (Title,  if  applicable)

                             Address  of  Holder:

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

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

                             Issue  Common  Stock  to:
                                                        ------------------------

                             At:
                                     -------------------------------------------

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

                                       19
<PAGE>
                       Electronically  transmit  and  credit  Common  Stock  to:

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

                       At:
                          ------------------------------------------------------

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

                       Date  of  Conversion:
                                            ------------------------------------

                       Applicable  Conversion  Price:
                                                     ---------------------------

                THE COMPUTATION OF THE NUMBER OF COMMON SHARES TO
                 BE RECEIVED IS SET FORTH ON THE FOLLOWING PAGE.

                                       20
<PAGE>
             COMPUTATION OF NUMBER OF COMMON SHARES TO BE RECEIVED:

A.  Outstanding  Principal  Amount  converted:                      $
                                                                    -----------
B.  Accrued, unpaid interest on Outstanding Principal Amount
    converted:                                                      $
                                                                    -----------
C.  Default  payments  due  Holder:                                 $
                                                                    -----------

                                                                    -----------
TOTAL  DOLLAR  AMOUNT  CONVERTED  (TOTAL OF A + B + C)              $
                                                                    -----------

                                                                    ===========

CONVERSION  PRICE:

                                                                      $
Number of Shares of Common Stock  =  Total dollar amount converted  =
                                     -----------------------------
                                     Conversion  Price                $
                                                                      ---------
                                                                      $
NUMBER  OF  SHARES  OF  COMMON  STOCK  =
                                         ----------

If  the  conversion  is not being settled by DTC, please issue and deliver _____
certificate(s)  for  shares  of  Common  Stock  in  the  following  amount(s):

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

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

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

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

Please  issue  and  deliver         new  Debenture(s)  in the following amounts:
                             -----

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

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

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

                                       21

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