Document:

EMPLOYMENT AGREEMENT

     This AGREEMENT is made and entered into this 31st day of May, 2001, by
and between SCIENTIFIC ENERGY, INC. (hereinafter referred to as "Company"), a
Utah corporation (with offices located at 630 North 400 West, Salt Lake City,
Utah 84103) and (Name of Employee) whose address is 902 North Date Street,
P.O. Box 3160, Truth or Consequences, NM 87901 (hereinafter referred to as
"Employee") and is based upon the following.

                                  RECITALS:

     A.  Company is organized under the laws of the State of Utah.

     B.  Company has acquired and/or developed various computer programs,
customer lists, sources of supply, manufacturing processes, marketing
techniques, know-how, strategies, information processes, memoranda, notes,
records, data, patents, patentable processes or products, sales practices, new
and enlarged customer relations, technologies, and other trade secrets and all
objects associated with the foregoing (hereinafter collectively referred to as
"Proprietary Information").  Said Proprietary Information was developed by or
for Company for its sole and confidential use, some of which Employee may have
assisted in developing.  Company desires to maintain the secrecy of its
Proprietary Information and to protect the same against improper use by
others, including Employee.  For all purposes relating to confidentiality and
non-disclosure of Proprietary Information and any other confidential
information, any of such information owned or developed by Parent shall be
entitled to the same level of protection as that owned by the Company.

     C.  Employee possesses unique education and skills essential to the
business of the Company and is the director of research and development of the
Company.

     D.  Company desires to engage the services of Employee in an
Employer-Employee relationship.

     E.  Employee desires to be employed by Company.

     NOW, THEREFORE, in consideration of the mutual promises hereinafter set
forth, and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, Company and the Employee agree as follows:

                                  ARTICLE I.
                            EMPLOYMENT AND DUTIES

     1.01.  Employment.  The Company hereby agrees to employ the Employee and
the Employee hereby accepts employment in the capacity of a Researcher of the
Company and agrees to regularly devote time and best efforts to the diligent
and faithful performance of his duties in such capacity. Employee shall report
directly to Company's Chief Executive Officer and shall have the powers and
duties normally associated with such position.

     1.02.  Term.  Unless sooner terminated as hereinafter provided, the term
of the Employee's employment hereunder shall commence on the date of this
Agreement and shall continue through the first anniversary thereof and shall
continue thereafter on a year to year basis subject to the terms and
provisions hereof.

     1.03.  Exclusive Service.  During the continuation of his employment by
the Company hereunder, the Employee will devote his entire business time,
energy, attention and skill to the services of the Company and to the
promotion of its interests, and will not during such time engage in, be
employed by, be a director of or otherwise be directly or indirectly
interested in any business or activity competing with or of a nature similar
to the business of the Company or Parent or in any business or activity
engaged in the manufacturing or selling of health and fitness equipment, nor
take any part in  any activities detrimental to the best interest of the
Company; provided, however, that nothing contained herein will be deemed to
prohibit the Employee from owning stock or other securities of a publicly held
corporation in which the Employee's interest does not exceed five percent (5%)
of the outstanding equity securities of such corporation.

                                 ARTICLE II.
                                 COMPENSATION

     2.01.  Basic Salary.  For all services rendered by Employee under this
Agreement, Company shall pay Employee a basic salary of $___________ per year,
payable in arrears in twelve (12) equal monthly installments, with the first
payment beginning on June 1, 2001 of the pro rata amount thereof for the
services rendered from the date of this Agreement through May 31, 2001, and
payable thereafter on the first day of each month throughout the term of this
Agreement.  The basic salary may be changed by mutual agreement of the parties
at any time.  Employee shall receive annual salary increases in an amount
equal to the average annual salary increase of Parent's upper level
management.

     2.02.  Fringe Benefits.  The Company currently provides no fringe
benefits to Employee but Employee shall be entitled to receive such employee
benefits as the Company may in good faith adopt during the period of full-time
employment.

     2.03.  Bonuses. The Company may pay to Employee such performance-based
bonuses as it may deem appropriate or reasonable from time to time, up to a
maximum of 50% of salary.

     2.04.  Reimbursement for Expenses.  The parties recognize that in the
course of performing his duties hereunder, Employee will necessarily incur
expenses in connection with his duties for such items as entertainment,
traveling (but not commuting), hotels and similar items.  Upon submittal by
the Employee to the Company of reasonably sufficient vouchers and other
documentation supporting the expenditures made by the Employee, Employee shall
be entitled to be reimbursed for all reasonable and necessary expenditures so
incurred.  Any expenses incurred by the Employee in excess of $500.00 for any
given event or transaction shall require prior approval by an appropriate
officer of the Company or reimbursement shall not be allowed.

     2.05.  Return of Unreasonable Compensation.  Notwithstanding anything
contained in this Agreement to the contrary, Employee understands and agrees
that he shall be entitled to and shall accept only that amount of compensation
that is not unreasonable.  (For purposes of this provision, reasonableness of
compensation shall be determined by the relevant provisions of the Internal
Revenue Code as to whether or not such compensation paid to Employee is
properly deductible by the Company.)

     A.  Reimbursement.  In the event that any amount paid to the Employee in
the form of compensation, or reimbursement for travel or entertainment
expenses, is determined to be unreasonable compensation and is disallowed the
Company in whole or in part as a deductible expense for federal income tax
purposes, Employee promises to reimburse the Company to the extent of such
disallowance.

     B.  Reduction of Compensation.  If Employee is required to reimburse the
Company for such amounts, he must do so within thirty (30) days of such
determination; if he fails to pay such amount to the Company, the Company may
reduce his compensation in order to obtain the full amount of such
disallowance over a period of twenty-four (24) months.

     C.  Party in Interest.  In the event a revenue agent proposes to make a
disallowance as mentioned above, the Company will immediately notify Employee
and keep Employee aware of all proceedings with respect to such disallowance.
Employee or his designated representative shall have the right to take control
of the administrative proceeding with the Internal Revenue Service with
respect to the reasonableness of Employee's compensation.  Employee may
request that the Company litigate the issue, and Employee agrees to reimburse
the Company for all expenses incurred by the Company in connection therewith.
Employee's obligation to reimburse the Company for its expenses incurred in
connection with such litigation shall not commence until a final determination
is made by an authorized Revenue agent that the Employee's compensation was
unreasonable.

     D.  Final Determination.  For purposes of this provision, a final
determination by the Tax Court shall be binding upon the parties hereto
insofar as Employee's obligation to reimburse Company for compensation
received over that amount which is reasonable which is incurred.

                                 ARTICLE III.
             NON-DISCLOSURE, CONFIDENTIALITY & COMPANY OWNERSHIP

     In consideration of the employment granted Employee hereunder, Employee
specifically agrees to be bound under the terms of this Article III.

     3.01.  Non-Disclosure.  Employee will acquire and create information
respecting the intimate and confidential affairs of the Company in the various
phases of its business.  Accordingly, Employee agrees that he shall not at any
time use for himself or disclose to any person not employed by the Company any
such knowledge or information heretofore acquired or acquired during the term
of his employment hereunder.  Furthermore, Employee expressly agrees to
disclose to Company any and all information, discovered by Employee or
otherwise available to him, that may be relevant to Company's business
activities, existing or contemplated, sales practices, know-how, new or
improved customer relations and other business methods and practices, all of
which shall be the sole and exclusive property of the Company.

     3.02.  Proprietary Information.  Employee agrees that all Proprietary
Information shall be Company's sole and exclusive property.  Employee shall
not, except for Company use, copy or duplicate any Proprietary Information,
nor remove the same (or any portion thereof) from the Company's facilities,
nor use any information concerning the Proprietary Information except for the
Company's benefit, either during his employment or thereafter.  Employee
agrees that he will deliver all of the Proprietary Information that may be in
his possession to the Company on termination of his employment, or at any
other time on the Company's request, together with his written certification
of compliance herewith.  Employee shall take such action, including without
limitation, the storing of proprietary information in a secure location as may
be necessary to maintain the confidentiality and prevent the inadvertent
disclosure of the proprietary information entrusted to or otherwise within his
possession or control.

     3.03.  Company Property and Protective Rights.  With respect to all
inventive ideas and Proprietary Information (collectively "Inventive Ideas")
which (i) relates to Company's business or anticipated business as of the date
hereof, (ii) originated or was developed by Employee while in the employ of
the Company, or (iii) was originated with or developed by Employee within the
period of one (1) year after the termination of said employment and which
relates to projects upon which Employee has worked during said employment, or
to the business carried on or contemplated by the Company, or as to which
Employee has acquired information as a result of his employment with Company,
and all patents obtained on such Inventive Ideas, Employee covenants as
follows:

     A.  Disclosure and Assignment.  Employee agrees to disclose and assign
all such Inventive Ideas, information and any patents obtained thereon to the
Company at least quarter-annually and at such other times as the Company may
require.

     B.  Records.  The Employee shall keep, maintain, and make available to
the Company complete and up-to-date written records which may include sales
information and sales practices, customers and potential customers,
photographs, drawings, descriptions, and the like.  Since the Employee is also
expected to be technically creative, he shall keep, maintain and make
available to the Company complete and up-to-date records of his ideas,
suggestions, inventions, discoveries, improvements and the like relating to
fields of interest to the Company.  All such records are the sole property of
the Company.  If the Employee is engaged in a selling capacity, he shall keep
and maintain records of sales and customers in the strictest of confidence
solely for the benefit of the Company.

     C.  Property of Company.  Employee agrees that all such Inventive Ideas
conceived of by Employee, whether during or after normal working hours, and
any patents thereon shall be the exclusive property of the Company and hereby
assigns all such rights therein to the Company.

     D.  Other Acts.  Employee will at any time and all times during and after
the term of his employment hereunder furnish such information and assistance,
and shall, at the request and expense of the Company, make, execute and
deliver all applications, papers, assignments or instruments and perform or
cause to be performed such other lawful acts as the Company may deem desirable
or necessary in making or prosecuting applications, domestic or foreign, for
letters patent, copyrights, trademarks, re-issues, and extensions thereof, and
cooperate (without expense to Employee) with the Company and/or its
representatives in any controversy or legal proceedings relating to any
Inventive Ideas and improvements or to the patents which may be procured
thereon.  Employee understands that if he should be requested after the
termination of his employment to perform services for the Company in
accordance with the terms of this Section 3.03, he shall be paid therefor at
the compensation rate prevailing for him at the time of termination, and
Employee gives the Company full and exclusive power to prosecute all such
applications and all proceedings in connection therewith.

     E.  Non-Exclusive License.  If for any reason the Company shall make the
determination not to obtain a patent, copyright, or other protective device
for any patent or Inventive Idea developed by the Employee, then,
notwithstanding anything to the contrary in this Agreement, the Employee shall
have the option to obtain such patent, copyright, or other similar protective
device at his sole and absolute expense, and shall have the right to make,
manufacture, or otherwise exploit such protected right.  In the event that the
Employee does in fact obtain such a patent, copyright, or similar protective
device on any patentable right or Inventive Idea, Employer shall have a right
of first refusal to make, manufacture, or otherwise exploit such protected
right.  Such right of first refusal must be exercised by the Company, if at
all, within sixty (60) days of Employee giving Company written notice that he
has obtained such a patent, copyright, or similar protective device on any
patentable right or Inventive Idea.

     3.04.  Continuation of Obligations.  Employee's obligations of
confidentiality and cooperation set forth in this Article III are ongoing in
nature and shall not terminate upon termination of Employee's employment
hereunder.

                                 ARTICLE IV.
                               NON-COMPETITION

      4.01.  Covenant Not to Compete.  In consideration of the employment
hereunder, Employee hereby agrees that during the term of his employment with
Company, during any subsequent consultation period, and for a period of
twenty-four (24) months after the termination of his employment with Company,
Employee will not either directly or indirectly own, have a proprietary
interest of any kind in (except for less than five percent (5%) of any listed
company or company traded in the over-the-counter market), be employed by, or
serve as a consultant to or for any business or enterprise (other than the
Company and its affiliates) that is engaged in competition with the Company
and its affiliates or any of the Company's or its affiliates' parent or
subsidiary corporations at the time of termination of employment anywhere in
the world without the express written consent of the Company.

     4.02.  No Solicitation of Other Employees.  During the term of Employee's
employment hereunder and for a period of twenty-four (24) months thereafter,
Employee agrees not to influence or attempt to influence any other employee,
salesman, contractor or agent of the Company to terminate his employment or
work with the Company or to work for or on behalf of any competitor or
potential competitor of the Company, including without limitation, Employee
himself or any other entity controlled or organized by Employee or in which
Employee is an officer, a director or agent

     4.03.  No Solicitation of Customers.  During the term of Employee's
employment hereunder and for a period of twenty-four (24) months years
thereafter, Employee agrees not to divert, by solicitation or any other means,
the Customers of Company existing at the time Employee's employment hereunder
terminates.  Company's Customers shall mean (a) all customers for with Company
provides services of any kind in the twelve (12) month period prior to
termination of Employee's employment with Company; (b) all customers and
potential customers actively solicited by Company at any time in the twelve
(12) month period prior to termination of Employee's employment with Company;
and (c) all successors, owners, directors, partners and management personnel
of the customers and potential customers defined in (a) and (b) above.

                                  ARTICLE V.
                         ILLNESS, DISABILITY OR DEATH

     5.01.  Sick Leave.   Employee shall be entitled to five (5) days sick
leave in each fiscal year of the Employer if he is unable to perform his
services by reason of illness or accident not resulting in Employee becoming
"totally disabled" without any adjustment in his compensation.  Unused sick
leave may not be carried over from one (1) fiscal year to the next.

     5.02.  Death or Disability.  Employee's employment shall terminate
immediately upon his death.  In the event the Employee becomes physically or
mentally disabled so as to become unable, for a period of more than ninety
(90) consecutive working days or for more than ninety (90) working days in the
aggregate during any twelve (12) month period, to perform his duties hereunder
on a substantially full-time basis, the Company may at its option terminate
his employment upon not less than thirty (30) days' written notice.  The
Company's right to terminate Employee's employment pursuant to the preceding
sentence shall cease in the event the notice of termination provided for
herein shall not be given during the period of Employee's disability.  In the
event of termination, the Company shall be obligated to pay the Employee's
salary under Section 2.01 hereof only through the calendar month in which such
termination occurs.  Termination of Employee's employment, pursuant to this
paragraph of the Employment Agreement, shall have reference to only the
termination of the Employee's obligation to perform services hereunder and the
Company's obligation to retain the services of Employee and compensate
Employee therefor.  All other terms hereof, and conditions of this Agreement
shall remain in full force and effect upon termination of Employee's
employment hereunder, including without limitation the provisions of Articles
III and VI.

                                 ARTICLE VI.
                                 TERMINATION

     6.01.  Termination by Company for Cause.  The Company reserves the right
to immediately terminate Employee's employment under this Agreement should any
of the following (which shall constitute "Cause") occur:

     A.  Employee's commission of a felony or any other act abhorrent to the
community which a reasonable person would consider materially damaging to the
reputation of the Company or its successors or assigns.

     B.  Employee's material breach of or failure to perform his obligations
in accordance with the terms and conditions of this Agreement.

     C.  The Company has sold all or substantially all of its assets.

     D.  The Company has discontinued operations.

     E.  The Company has a cumulative EBITDA loss of $150,000.00 at any time.

     F.  Employee shall commit any fraud, embezzlement, theft,
misappropriation or breach of fiduciary duty or similar act of dishonesty
against the Company.

     G.  Employee shall perform an act of gross negligence in the performance
of his duties hereunder or shall willfully neglect his duties hereunder or
shall refuse to carry out the reasonable directions of the person to whom
Employee reports as set forth in paragraph 1.01 hereof, or shall make a
statement which has a Material Adverse Effect (as defined in the Asset
Purchase Agreement) upon the Company or its business or which statement, when
made, was intended by Employee to reflect materially and adversely upon the
Company or its business.

     H.  Dishonesty by Employee related to his employment.

     I.  Violation of a key Company policy by Employee (including, but not
limited to, acts of harassment or discrimination, or use of unlawful drugs or
drunkenness on Company property during normal work hours).

     J.  Insubordination or dereliction of duty by Employee (i.e. conduct such
as refusal to follow reasonable and lawful direct written orders of the CEO).

     In each such case of Cause set forth in items (A), (B), and (F) through
(J) above (but excluding (C), (D) and (E)), the Employee shall have a period
of thirty (30) days to cure the breach, failure or refusal after receipt of
written notice of the breach, failure or refusal from the Company.

     6.02.  Termination by Employee With Cause.  Employee may terminate his
employment hereunder for "cause" immediately at any time upon notice to the
Company.  For this purpose, "cause" shall be deemed to exist if, without
Employee's consent:

     A.   The Company willfully fails or refuses to perform any material
obligation under this Agreement.

In such case of Cause set forth in item (A) above, the Company shall have a
period of thirty (30) days to cure the failure or refusal after receipt of
written notice of the failure or refusal from the Employee.

     6.03.  Termination by Employee Without Cause.  Employee may terminate his
employment hereunder at any time by delivering to Company written notice of
such termination not later than thirty (30) days prior to the date of such
termination; provided, however, that Employee agrees not to exercise such
right during the first year of employment hereunder.

     6.04.   Termination by Company Without Cause.  The Company may terminate
Employee's employment hereunder at any time by delivering to Employee written
notice of such termination not later than thirty (30) days prior to the date
of such termination; provided, however, that Employer agrees not to exercise
such right during the first year of employment hereunder.

     6.05.  Death and Disability.  This Agreement shall terminate in the event
of the Employee's permanent disability or death.

     6.06.  Effect on Other Provisions.  Termination of Employee's employment
under this Agreement, will terminate only Employee's obligations to act as
Employee for the Company under this Agreement and shall also terminate
Company's obligation of compensation to the Employee as set forth in Article
II hereof.  Employee's obligation to perform under any and all of the
remaining paragraphs and specifically Articles III and IV, shall remain in
full force and effect as set forth in this Agreement after the termination of
the Employee's employment.

     6.07.  Exit Interview.  Immediately prior to the termination of
Employee's employment hereunder, for whatever reason and whether by Employee
or Company, Employee agrees to submit to an exit interview with an appropriate
officer of Company for the purpose of determining Employee's present and
future compliance with Articles III and IV, above.

                                 ARTICLE VII.
                                MISCELLANEOUS

     7.01.  Insurance.  Company may, but shall not be required to, purchase
and maintain at his expense such comprehensive, professional and liability
insurance coverage as it shall deem necessary and appropriate, covering the
acts, errors and omissions of Employee in the normal course of his employment.

     7.02.  Office Facilities.  Company shall operate and maintain facilities,
and shall provide equipment, and other supplies as is suitable to Employee's
position and adequate for the performance of his duties.

     7.03.  Records and Files.  All case records, charts and personal files
concerning customers of Company shall belong to and remain the property of
Company.  Upon termination of his employment hereunder, Employee shall not be
entitled to keep or reproduce Company's records or charts related to any
customer unless such customer shall specifically request that his records be
transmitted to Employee.

     7.04.  Rights and Obligations of Successors.  This Agreement shall be
assignable and transferable by the Company to any subsidiary or affiliate of
the Company and shall inure to the benefit of and be binding upon the
Employee, his heirs, personal representative, and assigns.  As to the
Employee, however, his rights and obligations hereunder are personal in nature
and shall not be transferred or otherwise assigned.

     7.05.  Effect of Business Combination.  In the event of any merger,
consolidation or other business combination involving the Company or its
affiliates and any one or more other business entities, this Employment
Agreement shall have effect only to the extent and nature of the Company's
operations as they exist immediately prior to the time of such merger,
consolidation or other business combination.

     7.06.  Remedies.  Employee understands that the Company would not have
any adequate remedy at law for the material breach or threatened breach by him
of any one or more of the covenants set forth in this Agreement and agrees
that in the event of any such material breach or threatened breach, the
Company may in addition to the other remedies which may be available to it:

     A.  File suit for damages, and/or,

     B.  File a suit in equity (without having to give a bond or other
security) to enjoin him from the breach of threatened breach of such
covenants.

     7.07.  Waiver.  A waiver by any party of any provision hereof, whether in
writing or by course of conduct or otherwise, shall be valid only in the
instance for which it is given, and shall not be deemed a continuing waiver of
said provision, nor shall it be construed as a waiver of any other provision
hereof.

     7.08.  Paragraph Headings.  The paragraph headings of this Agreement are
inserted only for convenience and in no way define, limit or describe the
scope or intent of this Agreement nor affect its terms and provisions.

     7.09.  Number and Gender.  As used in this Agreement, the term Company
shall include all Companies, and the term Employee shall include all
Employees, and the masculine shall include the feminine, and the feminine the
masculine, when the context so requires.

     7.10.  Preparation of Agreement.  The parties hereto acknowledge that
they have both participated in the preparation of this Agreement and, in the
event that any question arises regarding its interpretation, no presumption
shall be drawn in favor of or against any party hereto with respect to the
drafting hereof.

     7.11.  Governing Law.  This Agreement, and all matters relating hereto,
including any matter or dispute arising out of the Agreement, shall be
interpreted, governed, and enforced according to the laws of the State of
Utah, and the parties hereto consent to the jurisdiction and venue of any
appropriate court in the State of Utah to resolve such disputes.

     7.12.  Amendments.  This Agreement may be amended at any time upon
unanimous agreement of the parties hereto, which amendment(s) must be reduced
to writing and signed by all parties in order to become effective.

     7.13.  Entire Agreement.  This Agreement constitutes and represents the
entire agreement of the parties hereto with respect to the subject matter
hereof, and all other prior agreements, covenants, promises and conditions,
verbal or written, between these parties are incorporated herein.  No party
hereto has relied upon any other promise, representation or warranty, other
than those contained herein, in executing this Agreement.

     7.14.  Further Instruments.  The parties hereto agree that they will
execute any and all other documents or legal instruments that may be necessary
or required to carry out and effectuate all of the provisions hereof.

     7.15.  Attorney's Fees.  In the event that any party hereto shall be in
default or breach of this Agreement, said party shall be liable to pay all
reasonable attorney's fees, court costs and other related collection costs and
expenses incurred by the prevailing party in prosecuting its rights hereunder.

(Signatures on following page)

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first above written.

                              COMPANY:

                              SCIENTIFIC ENERGY, INC.

                            By /s/ Todd B. Crosland
                              ---------------------------------
                            Its  Pres

                               EMPLOYEE:

                             (Name of Employee)

                           __________________________________________

The foregoing Employment Agreement is entered by and between Scientific
Energy, Inc. and the following employees:

            Schedule of Employment Agreements and Related Salaries

            Employee         Salary Per Year
            ----------       --------------

            Daryl Conley      $14,000
            David Sanders       8,000
            Otis H. Sanders    20,000
            Paul Thomas         8,000LOAN AGREEMENT

        THE PROMISSORY NOTE TO BE ISSUED PURSUANT HERETO HAS NOT BEEN
    REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED,
     AND MAY NOT BE OFFERED OR SOLD UNLESS THE SECURITIES ARE REGISTERED
        UNDER THE SECURITIES ACT OR AN EXEMPTION FROM THE REGISTRATION
               REQUIREMENTS OF THE SECURITIES ACT IS AVAILABLE.

     THIS LOAN AGREEMENT (this "Agreement"), dated as of the 15th day of June,
2001 (this "Agreement"), is entered into by and between SCIENTIFIC ENERGY,
INC., a Nevada corporation (the "Debtor"), and TODD B. CROSLAND, an individual
resident of Salt Lake County, Utah ("Creditor").

                                  Agreement

     FOR AND IN CONSIDERATION of the mutual promises and covenants contained
herein and the mutual benefit to the parties to be derived from this
Agreement, it is hereby agreed as follows:

                                  SECTION I
                                   The Loan

     1.1     Commitment.  Subject to the terms and conditions of this
Agreement and in reliance upon the representations and warranties of Debtor
herein set forth, Creditor hereby agrees to lend to Debtor the aggregate sum
of Three Hundred Fifty Thousand and No/100 Dollars ($350,000.00) (the "Loan").

     1.2     Disbursement.  The amount of the Loan shall be disbursed by
Creditor upon request of Debtor and upon satisfaction of all conditions
precedent thereto set forth in this Agreement as provided below on one or more
dates (each, a "Funding Date").

     1.3     Conditions to Advance.  Notwithstanding any other provision of
this Agreement, Creditor shall have no obligation to make any advance
hereunder if the conditions precedent to the making of such advance specified
in section III hereof have not been satisfied or if an event of default or
unmatured event of default shall have occurred and be continuing.

     1.4     Interest. The unpaid principal amounts advanced under the Loan,
plus any accrued but unpaid interest, outstanding from time to time shall bear
interest at the rate of the PRIME interest rate, as per annum, compounded
monthly, for the actual number of days such amount is outstanding based on a
360-day year. Upon the occurrence and during the continuation of an Event of
Default, any unpaid principal amount of the Loan, and any overdue interest,
shall bear interest at a rate of the greater of: (a) ten percent (10%) per
annum or (b) three percent (3%) plus PRIME per annum, compounded monthly,
computed for the actual number of days such amount is outstanding based on a
360-day year.

     1.5     Repayment. The principal amount of the Loan, together with all
accrued but unpaid interest, shall be due and payable on the date that is
thirty (30) days after demand therefor is given by the Creditor, which demand
shall not occur before the date that is one year from the date hereof.

                                    Note

     2.1     The Note.  The obligation of Debtor to repay the Loan of Creditor
shall be evidenced by a promissory note(s) ("Note" or "Notes") of Debtor in
the form attached as Exhibit "A" hereto, dated the date of each borrowing
hereunder (or such other date as Debtor and Creditor agree upon), payable to
the order of Creditor, in accordance with the terms of this Agreement.  The
Loan shall be payable, together with interest as provided therein, on the
terms and conditions more particularly set forth in such Note(s). Every term
contained in the Notes shall be deemed incorporated into this Agreement.  To
the extent any provision of the Notes shall be deemed to be inconsistent with
the provisions of this Agreement, however, the provisions of this Agreement
shall control.

                                 SECTION III
                            Conditions of Lending

     The obligation of Creditor to make the Loan is subject to the following
conditions:

     3.1     Certain Documents. All the following documents shall have been
received by Creditor on or before each Funding Date:

     (a)     Resolutions of Debtor's board of directors approving and
authorizing the execution, delivery, and performance of this Agreement, the
Note, and all other documents delivered in connection herewith (the "Loan
Documents") executed by it, certified as of the date of this Agreement by
Debtor's corporate secretary or an assistant secretary;

     (b)     Certificates from the duly authorized officer of Debtor to the
effect that it has satisfied each term, covenant, or condition required to be
kept, observed, or met as a condition precedent to making this Loan;

     (c)     The Note in the form of Exhibit "A" attached hereto, drawn to the
order of Creditor, executed as appropriate by Debtor;

     (d)     This Agreement executed by Debtor and Creditor;

     (f)     Such other documents as Creditor may reasonably request.

     3.2     Representations and Warranties True.  The representations and
warranties of Debtor contained in this Agreement shall be true on and as of
each Funding Date, except for inaccuracies that are not in the aggregate
material.

     3.3     Compliance with Covenants.  Debtor shall have performed, and be
in compliance with, in all material respects, all of its agreements and
covenants under this Agreement.

     3.4     Absence of Event of Default.  No Default or Event of Default
shall exist.

     3.5     Financial Condition.  Debtor shall have furnished such
information concerning the financial condition of Debtor as Creditor shall
reasonably request, and such information shall be satisfactory to Creditor and
its representatives.  Such information shall include evidence that there has
been no adverse change in the financial condition of Debtor since the
immediately preceding Funding Date.  There shall not then be pending against
Debtor any petition in bankruptcy, whether voluntary or otherwise, any
assignment for the benefit of creditors, any petition seeking reorganization
or arrangement under the bankruptcy, insolvency, reorganization or similar
laws of the United States or of any state thereof, or any other action
affecting the rights of creditors of Debtor brought under the aforesaid laws.

     3.6     Legal Matters.  All proceedings in connection with the Loan, all
documents incident thereto, and all legal matters in connection with the
transactions by Debtor to be financed hereunder shall be satisfactory in form
and substance to Creditor and Creditor's counsel, and Creditor shall have
received all approvals, opinions or documents that Creditor or its counsel may
reasonably have requested in connection with the Funding, all in form and
substance satisfactory to Creditor.

     3.7     Access to Information; Due Diligence.  Creditor and his
representatives shall have had access to such information and records of
Debtor as Creditor shall have reasonably requested, and all such information
and records shall be satisfactory to Creditor and its representatives.

     3.8     Other Matters.  Creditor shall have received from Debtor such
other agreements, certificates, instruments and documents as Creditor may
reasonably request to evidence or carry out the transactions contemplated by
this Agreement.

                                  SECTION IV
                        Representations and Warranties

     To induce the Creditor to extend its commitment hereunder and to make the
Loan hereunder, Debtor represents, covenants and warrants to Creditor and
agrees as follows:

     4.1     Organization. Debtor is a corporation duly organized, validly
existing, and in good standing under the laws of the state of Nevada and has
the power and is duly authorized, qualified, franchised, and licensed under
all applicable laws, regulations, ordinances, and orders of public authorities
to own all its properties and assets and to carry on its business in all
material respects as it is now being conducted, including qualification to do
business as a foreign corporation in the states in which the character and
location of the assets owned by it or the nature of the business transacted by
it requires qualification, except to the extent the failure to so qualify
would not materially and adversely affect the business, operations,
properties, assets or condition of Debtor. Debtor has full power and authority
to own or lease and to operate and use its assets and to carry on its business
as now conducted.

     4.2     Authority of Debtor. Debtor has taken all action required by law,
its articles of incorporation or articles of organization, its bylaws or
operating agreement, or otherwise to authorize the execution and delivery of
the Loan Documents and the consummation of the transactions herein
contemplated.  Debtor has full power and authority to execute, deliver and
perform all of the Loan Documents.  This Agreement is, and the Loan Documents
will be on their execution and delivery as contemplated hereby, the legal,
valid, and binding agreements of Debtor, enforceable between the parties in
accordance with their terms, except as such enforcement may be limited by
bankruptcy, insolvency, or other laws affecting enforcement of creditors'
rights generally and by general principles of equity.  The execution and
delivery of this Agreement does not, and the consummation of the transactions
contemplated by this Agreement in accordance with the terms hereof will not,
violate any provision of Debtor's articles of incorporation or bylaws, or
violate, conflict with, result in a breach of the terms, conditions or
provisions of, or constitute a default, an event of default or an event
creating rights of acceleration, termination or cancellation or a loss of
rights under, or result in the creation or imposition of any encumbrance upon
any of the assets of Debtor, under any other material note, instrument,
agreement, mortgage, lease, license, franchise, permit or other authorization,
right, restriction or obligation to which Debtor or any of its assets are
subject or by which Debtor is bound.

     4.3     Title to Property.  Debtor has good and marketable title to all
of the personal and real properties as reflected on Debtor's most recent
balance sheet, free and clear of all encumbrances, and such imperfections of
title that are not individually or in the aggregate material or such as will
materially interfere with the conduct of Debtor's business.  No UCC financing
statement covering any of the Stockholders' Equity is on file in any public
office.

     4.4     Executive Offices. Debtor has not had its principal executive
office in any state other than Utah at any time since its organization.

     4.5     Absence of Certain Changes or Events.  Since the date of the most
recent financial statements delivered to Creditor, there has not been (i) any
material adverse change in the business, operations, properties, assets, or
condition of Debtor, or (ii) any damage, destruction, or loss to Debtor
(whether or not covered by insurance) materially and adversely affecting the
business, operations, properties, assets, or conditions of Debtor, taken as a
whole.

     4.6     Governmental Authorizations.  Debtor has all licenses,
franchises, permits, and other governmental authorizations that are legally
required to enable it to conduct the businesses of Debtor in all material
respects as conducted on the date of this Agreement. No authorization,
approval, consent, or order of, or registration, declaration, or filing with,
any court or other governmental body is required in connection with the
execution and delivery by Debtor of this Agreement and the consummation by
Debtor of the transactions contemplated hereby.

     4.7     Litigation and Proceedings.  There are no actions, suits, or
proceedings pending or, to the knowledge of Debtor, threatened by or against,
or affecting Debtor or the properties of Debtor, at law or in equity, before
any court or other governmental agency or instrumentality, domestic or
foreign, or before any arbitrator of any kind; Debtor has no knowledge of any
default on its part with respect to any judgment, order, writ, injunction,
decree, award, rule, or regulation of any court, arbitrator, or governmental
agency or instrumentality.

     4.8     Material Contract Defaults.  Debtor is not in default in any
respect under the terms of any outstanding contract, agreement, lease, or
other commitment which is material to the business, operations, properties,
assets, or condition of Debtor, and there is no event of default or other
event which, with notice or lapse of time or both, would constitute a default
in any material respect under any such contract, agreement, lease, or other
commitment.

     4.9     Taxes.  All federal, state, local, and foreign tax returns and
tax reports required to be filed by or on behalf of Debtor have been filed
with the appropriate governmental agency and all jurisdictions in which such
reports are required to be filed, and all taxes which have become due pursuant
to such tax returns or to any assessment which has become payable have been
paid. Proper and accurate amounts of taxes have been withheld by or on behalf
of Debtor with respect to all compensation paid to employees of Debtor for all
periods ending on or before the date hereof, and all deposits required with
respect to compensation paid to such employees have been made, in complete
compliance with the provisions of all applicable federal, state, and local tax
and other laws.

     4.10     Third-Party Consents.  No contract, agreement, lease, or other
commitment, written or oral, to which Debtor is a party or to which any of its
properties or assets are subject require the consent of the other party in
order to consummate the transactions herein contemplated, except where the
failure to obtain such consent would not have a material adverse effect on the
business, operations, properties, or assets or condition of Debtor.

     4.11     No Conflict With Other Instruments.  The execution of this
Agreement and the consummation of the transactions contemplated by this
Agreement will not result in the breach of any term or provision of, or
constitute an event of default under, any material indenture, mortgage, deed
of trust, or other material contract, agreement, or instrument to which Debtor
is a party or to which any of its properties or operations are subject, except
where such breach or default would not have a material adverse effect on the
business, operations, properties, or assets or condition of Debtor.

     4.12     Compliance With Laws and Regulations.  Debtor has complied with
all applicable statutes and regulations of any federal, state, or other
governmental entity or agency thereof, except to the extent that noncompliance
would not materially and adversely affect the business, operations,
properties, assets, or condition of Debtor or except to the extent that
noncompliance would not result in the incurrence of any material liability for
Debtor.

     4.13     Insurance. All of the insurable properties of Debtor are insured
for the benefit of Debtor in the amount of their full replacement value
(subject to reasonable deductibles) against losses due to fire and other
casualty, with extended coverage, and other risks customarily insured against
by persons operating similar properties in the localities where such
properties are located and under valid and enforceable policies issued by
insurers of recognized responsibility.  Debtor shall also maintain general
public liability insurance against claims for personal injury, death, or
property damage upon, in, or about Debtor's properties or operations,
affording protection and in such amounts reasonable and customary in the
circumstances with insurance carriers of recognized responsibility.  Such
policy or policies containing substantially equivalent coverage will be
outstanding and in full force at all times when any portion of the Note
remains unpaid.

     4.14     Insolvency Proceedings.  No person has filed any proceeding in
any court in any jurisdiction asserting that Debtor is insolvent, fails to pay
its debts as they become due, or otherwise should become subject to any Debtor
Relief Law (as defined in section 8.1 below).

                                  SECTION V
                            Affirmative Covenants

     5.1     Punctual Payment and Performance.  Debtor shall duly and
punctually pay the principal and interest on the Loan and all other amounts
provided for in this Agreement, or any other Loan Document, and shall perform
all its obligations and covenants under all Loan Documents.

     5.2     Title to Properties.  Debtor shall maintain good and marketable
title to the Stockholders' Equity, free and clear of all encumbrances.  Debtor
shall warrant and forever defend its right, title and interest in and to its
assets against the claims and demands of every person whatsoever claiming or
which may claim the same or any part thereof.

     5.3     Use of Loan Proceeds.  Debtor will utilize all of the proceeds
from the Loan contemplated hereby for general corporate purposes, including
payment of administrative and overhead expenses.

     5.4     Continuation of Business.  Debtor will use its best efforts
consistent with prudent business practices to preserve and maintain its
business and business organization intact; to preserve its goodwill; to pay
its obligations as they mature; to retain its employees; and to retain its
relationships with investors, suppliers, and customers.

     5.5     Compliance with Laws.  Debtor will take all reasonably necessary
actions to comply with applicable statutes and regulations governing the
activities and operations of Debtor and will maintain its legal existence and
right to carry on its business in each state or other jurisdiction in which it
now conducts business.

     5.6     Defective Execution.  Debtor will promptly cure or cause to be
cured any defect in the execution or delivery of this Agreement and any other
instruments executed in connection with this transaction.

     5.7     Additional Documents.  Debtor will promptly execute and deliver,
or cause to be executed and delivered, any other instruments or documents
which Creditor may reasonably request or which may be required in order to
consummate the transactions contemplated by this Agreement.

     5.8     Financial and Other Reports.  So long as any balance due under
the Note remains outstanding, Debtor shall transmit to Creditor, within ninety
(90) days after the end of each fiscal year of Debtor and within forty-five
(45) days after the end of each fiscal quarter (other than the fourth fiscal
quarter), a copy of its financial statements for the fiscal year or quarter
then ended.  At the request of Creditor, Debtor shall provide to Creditor
summaries of current activities, results of operations and other matters.  In
addition, Creditor's duly authorized representatives, on five (5) days' prior
notice, shall have the right to inspect and audit the books and records of
Debtor during regular business hours.

                                  SECTION VI
                              Negative Covenants

     Debtor covenants and agrees that it will not, prior to the satisfaction
of all its obligations under the terms of this Agreement and accompanying
Note(s), without the prior written consent of Creditor, do any of the
following:

     6.1     Restrictions on Liens; Satisfaction of Existing Obligations.
Debtor shall not create or incur, or suffer to be created or incurred or to
exist, any encumbrance upon any of its Assets, except purchase money security
interests, whether now owned or hereafter acquired, or upon the proceeds,
income or profits therefrom, and, other than in the ordinary course of its
business, Debtor will not discharge or satisfy any lien, mortgage, pledge,
charge, security, or other encumbrance on any of its present or future assets,
properties, or revenues.

     6.2     Asset Sales. Debtor shall not sell, lease, assign, transfer or
otherwise dispose of any of its Assets, except for sales in the ordinary
course of Debtor's business.

     6.3     Indebtedness.  Other than in the ordinary course of its business,
Debtor will not engage in any transaction that would create or result in any
additional indebtedness or pay any obligation or liability.

     6.4     Release of Claims.  Except in the ordinary course of its
business, Debtor will not waive or release any of its rights or claims which
have any potential material value.

     6.5     Governmental Compliance.  Debtor will not violate in any material
respect any law, rule, regulation, order, or ordinance applicable to the
conduct of its business or relinquish or terminate any rights, qualifications,
licenses, or permits that would materially affect its financial condition or
business.

     6.6     Sales of Assets or Corporate Reorganizations.  Debtor will not
enter into any negotiation or agreement or entertain any proposals relating to
the sale of all or substantially all of its assets, or the merger of Debtor
with any other corporation or entity.

     6.7     Guarantor or Surety.  Debtor will not guarantee or act as surety
for any indebtedness of any person.

                                 SECTION VII
                                   Default

     7.1.     Events of Default.  Upon the occurrence and during the
continuance of any one or more of the events hereinafter enumerated ("Events
of Default"), the unpaid balance of the principal and all interest then
accrued on the Note shall become immediately due and payable, without
presentation, demand, protest, notice of protest, or other notice of dishonor,
all of which are hereby expressly waived by Debtor, such events being as
follows:

     (a)     The failure or refusal of Debtor to pay principal of or interest
on the Notes within five (5) days of when the same becomes due in accordance
with the terms thereof.

     (b)     The failure or refusal of Debtor punctually and properly to
perform, observe, and comply with any other covenant or agreement contained in
this Agreement and the Notes and such failure or refusal is not cured or
remedied within thirty (30) days after Debtor has (or, with the exercise of
reasonable investigation, should have) notice thereof.

     (c)     Debtor shall (i) become insolvent, (ii) fail to pay its debts
generally as they become due, (iii) voluntarily seek, consent to or acquiesce
in the benefit or benefits of any Debtor Relief Law (defined hereinafter), or
(iv) become a party to (or be made the subject of) any proceeding provided for
by any Debtor Relief Law, other than as a creditor or claimant, that could
suspend or otherwise adversely affect the Rights (defined hereinafter) of
Creditor granted herein (unless, in the event such proceeding is involuntary,
the petition instituting same is dismissed within 60 days of the filing of
same).  "Debtor Relief Law" means the Bankruptcy Code of the United States of
America and all other applicable liquidation, conservatorship, bankruptcy,
moratorium, rearrangement, receivership, insolvency, reorganization,
suspension of payments, or similar Laws from time to time in effect affecting
the Rights of creditors generally.  "Rights" means rights, remedies, powers,
and privileges.  "Laws" means all applicable statutes, laws, ordinances,
regulations, orders, writs, injunctions, or decrees of any state,
commonwealth, nation, territory, possession, county, parish, municipality, or
Tribunal.  "Tribunal" means any court or governmental department, commission,
board, bureau, agency or instrumentality of the United States or of any state,
commonwealth, nation, territory, possession, county, parish, or municipality,
whether now or hereafter constituted and/or existing.

     (d)     The failure to have discharged within a period of thirty (30)
days after the commencement thereof any attachment, sequestration or similar
proceeding against any of the assets of Debtor, or the loss, theft or
destruction of, or occurrence of substantial damage to, a material part of the
assets of Debtor, except to the extent adequately covered by insurance.

     (e)     Debtor fails to pay any money judgment against it at least ten
(10) days prior to the date on which any of Debtor's assets may be lawfully
sold to satisfy such judgment.

     (f)     The discovery by Creditor that any statement, representation, or
warranty herein or in any writing delivered to Creditor pursuant to this
Agreement, or the Note is false, misleading, or erroneous in any material
respect.

If any one or more of the Events of Default specified above shall have
happened, the Creditor may, at its option, (i) offset against the amount owed
to Creditor any sum or sums owed by Creditor to Debtor, (ii) reduce any claim
to judgment, (iii) execute and foreclose all liens or any part thereof, and/or
(iv) proceed to protect and enforce its rights either by suit in equity and/or
by action of law, or by other appropriate proceedings, whether for the
specific performance of any covenant or agreement contained in the Note, or in
aid of the exercise granted by the Note, of any right, or to enforce any other
legal or equitable right or remedy of the holder of the Note.

     7.2     Procedure on Default.  Upon the occurrence of an event of
default:

     (a)     In the event of default in the payment of said Loan when due or
declared due, Creditor, shall have any right or remedy provided by law or in
equity;

     (b)     The requirement of reasonable notice to Debtor of the time and
place of any public sale of the Debtor's assets or of the time after which any
private sale, or any other intended disposition thereof is to be made, shall
be met if such notice is mailed, postage prepaid, to Debtor at the address
designated below, at least 30 days before the date of any public or private
sale or other disposition is to be made.

     7.3     Defaults Upon Prior Indebtedness.  Upon the default of Debtor of
any term, covenant, or condition required to be performed by it on any
priority secured indebtedness or the receipt by Debtor from any such priority
secured creditor of notice of any default under such indebtedness, whether or
not repayment of the indebtedness is accelerated, Debtor shall promptly advise
Creditor in writing of the nature and amount of default and of the action, if
any, threatened by such priority secured creditor.  Notwithstanding Debtor's
obligation to cure any and all such defaults, Creditor may, but shall not be
obligated to do so, cure such default in the name, place, and stead of Debtor
and, in the case of such curative efforts by Creditor, succeed to all of the
rights, remedies, and security of such priority secured creditor.

                                 SECTION VIII
                           Miscellaneous Provisions

     8.1     Assignment of Agreement.  Except as expressly provided, neither
the rights nor the duties of the parties to this Agreement may be assigned or
delegated by Debtor in whole or in part without the prior written consent of
Creditor.

     8.2     Governing Law.  Unless otherwise provided herein, this Agreement
shall be governed by, and construed and enforced in accordance with, the laws
of the state of Utah.

     8.3     Notices.  All notices, demands, requests, or other communications
required or authorized hereunder shall be deemed given sufficiently if in
writing and if personally delivered; if sent by facsimile transmission; if
sent by registered mail or certified mail, return receipt requested and
postage prepaid; or if sent by second day express delivery:

     If to Creditor, to:     Todd B. Crosland
                             630 North 400 West
                             Salt Lake City, UT  84103
                             Telecopy No.:  (801) 328-3194

If to Debtor, to:            Scientific Energy, Inc.
                             630 North 400 West
                             Salt Lake City, UT  84103
                             Telecopy No.:  (801) 328-3194

or other such addresses and facsimile numbers as shall be furnished by any
party in the manner for giving notices hereunder, and any such notice, demand,
request, or other communication shall be deemed to have been given as of the
date so delivered or sent by facsimile transmission, three days after the date
so mailed, or two days after the date so sent by second day delivery.

     8.4     Title and Captions.  Section titles and captions of this
Agreement are for convenience and reference only and shall not be deemed part
of this Agreement and shall not be interpreted to define, limit, augment,
extend, or describe the scope, content, or intent of any part or parts of this
Agreement.

     8.5     Pronouns and Plurals.  Whenever the context may require, all
pronouns used herein shall include the corresponding masculine, feminine, or
neuter forms and the singular form of pronouns and verbs shall include the
plural and vice versa.  Each of the foregoing genders and plurals is
understood to refer to a corporation, partnership, or other legal entity when
the context so requires.

     8.6     Further Action.  The parties shall execute and deliver all
documents and instruments, provide all information, and take or forebear from
all such action as may be necessary or appropriate to achieve the purposes of
this Agreement.

     8.7     Binding Effect Upon Successors.  This Agreement shall be binding
upon, and inure to the benefit of, the parties and their respective heirs,
executors, administrators, successors, legal representatives, and assigns;
provided, that this provision shall not be construed as permitting assignment,
substitution, delegation, or other transfer of rights or obligations, except
strictly in accordance with the provisions of this Agreement.

     8.8     Entire Agreement; Integration.  This Agreement and the Note to be
executed and delivered in accordance herewith constitute the entire agreement
among the parties pertaining to the subject matter hereof, and supersede all
prior agreements and understandings pertaining thereto.  No covenant,
representation, or condition not expressed in this Agreement shall affect or
be deemed to interpret, change, or restrict the express provisions hereof.
The failure of either party to inspect the documents referred to herein
constitutes a waiver of any objection, contention, or claim that may be based
upon such an inspection.

     8.9     Creditors.  Unless expressly provided in this Agreement, none of
the provisions of this Agreement shall be for the benefit of, or enforceable
by, any creditors of any party hereto.

     8.10     Waiver.  No failure by any party to insist upon the strict
performance of any covenant, duty, promise, or condition of this Agreement or
to exercise any right or remedy consequent upon a breach thereof shall
constitute a waiver of any such breach or any other covenant, duty, promise,
or condition.  Any party may, by notice delivered in the manner provided in
this Agreement, but shall be under no obligation to, waive any of its rights
or any conditions to its obligations hereunder, or any duty, obligation, or
covenant of any other party.  No waiver shall affect or alter the remainder of
this Agreement but each and every other covenant, duty, promise, and condition
hereof shall continue in force and effect with respect to any other then
existing or subsequently occurring breach.

     8.11     Rights and Remedies.  The rights and remedies of any of the
parties hereof shall not be mutually exclusive, and the exercise of the rights
arising from one or more of the provisions of this Agreement shall not
preclude the exercise of the rights arising from any other provision.  Each of
the parties confirms that damages at law may be an inadequate remedy for a
breach or threatened breach of any provision hereof.  The respective rights
and obligations hereunder shall be enforceable by specific performance,
injunction, or other equitable remedy, but nothing herein contained is
intended to or shall limit or affect any rights at law, statutory or
otherwise, of any party aggrieved as against the other parties for a breach or
threatened breach of any provision hereof, it being the intention by this
paragraph to make clear the agreement of the parties that the respective
rights and obligations of the parties hereunder shall be enforceable in equity
as well as at law or otherwise.

     8.12     Severability.  In the event that any condition, covenant, or
other provision herein contained is held to be invalid or void by any court of
competent jurisdiction, the same shall be deemed severable from the remainder
of this Agreement and shall in no way affect any other covenant or condition
herein contained.  If such condition, covenant, or other provision shall be
deemed invalid due to its scope or breadth, such provision shall be deemed
valid to the extent of the scope of breadth permitted by law.

     8.13     Exhibit.  All exhibits attached to this Agreement and any
documents to be delivered herewith are expressly made a part of this Agreement
as fully as though completely set forth in it.  All references to this
Agreement, either in the Agreement itself or in any of such writings, shall be
deemed to refer to and include this Agreement and all such exhibits and
writings.  Any breach of or default under any provision of any of such writing
shall, for all purposes, constitute a breach or default under this Agreement
and all other such writings.

     8.14     Authorization.  Each individual executing this Agreement does
thereby represent and warrant to each other person so signing (and each other
entity for which another person may be signing) that he has been duly
authorized to deliver this Agreement in the capacity, and for the entity (if
any), set forth where he signs.

     8.15     Survival of Warranties and Representations.  The warranties and
representations contained in this Agreement shall survive consummation of the
transactions contemplated herein.

     8.16     Attorneys' Fees.  Should either party take any legal action to
enforce any of the terms or provisions of the Loan Documents, or any costs are
incurred by reason of breach or default in any of the covenants,
representations, warranties, terms, or conditions of the Loan Documents, the
nondefaulting party shall be entitled to recover any costs, including
attorneys' fees incurred in enforcing the obligations of the other party under
the terms of the Loan Documents or in collecting any judgment that may be
entered.

     8.17     Time of Essence.  Time is of the essence in the performance of
the duties, covenants, or obligations of the parties under the terms of this
Agreement.

     8.18     Counterpart Execution.  This Agreement may be executed as one
instrument signed by all parties or in separate counterparts hereof, each of
which counterparts shall be considered an original and all of which shall be
deemed to be one instrument, and any signed counterpart shall be deemed signed
and delivered by the party signing it if sent to any other party hereto by
electronic facsimile transmission.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement
effective this 15th day of June, 2001.

                    Debtor:

                    SCIENTIFIC ENERGY, INC.

                    By:   /s/ Jana K. Meyer
                          ----------------------------------
                          Jana K. Meyer, Secretary/Treasurer

                    Creditor:

                    /s/ Todd B. Crosland
                    --------------------
                    TODD B. CROSLAND

<PAGE>

                                 [EXHIBIT A]

                               PROMISSORY NOTE

$___0,000.00                 Salt Lake City, Utah              _________, 2001

     FOR VALUE RECEIVED, the undersigned, SCIENTIFIC ENERGY, INC. ("Maker"), a
Nevada corporation whose mailing address is 630 North 400 West, Salt Lake
City, UT 84103, hereby promises to pay to the order of TODD B. CROSLAND
("Payee"), an individual resident of 630 North 400 West, Salt Lake City, UT
84103, the principal sum of ______________ THOUSAND and NO/100 Dollars
($___0,000.00), or such lesser amount as has been advanced by Payee to Maker
pursuant to the Loan Agreement dated June 15, 2001 between Maker and Payee
(the "Loan Agreement"), in lawful money of the United States of America for
payment of private debts, together with interest (calculated on the basis of
the actual number of days elapsed but computed as if each year consisted of
360 days) on the unpaid principal balance from time to time outstanding at a
rate which from day to day shall be, except as otherwise provided in this
note, the prime rate per annum, compounded monthly.  All past due amounts and
accrued interest thereon shall bear interest at a rate of the greater of: (a)
ten percent (10%) per annum or (b) three percent (3%) plus PRIME per annum,
compounded monthly, computed for the actual number of days such amount is
outstanding based on a 360-day year.

     1.     Payments. The principal amount of this Note, together with all
accrued but unpaid interest, shall be due and payable on the date that is
thirty (30) days after demand therefor is given by the holder of this Note,
which demand shall not occur before June 15, 2002.

     2.     Time and Place of Payment.  If any payment falls due on a day
which is considered a legal holiday in the state of Utah, Maker shall be
entitled to delay such payment until the next succeeding regular business day,
but interest shall continue to accrue until the payment is in fact made.  Each
payment or prepayment hereon must be paid at the office of Payee set forth
above, or at such other place as the Payee or other holder hereof may from
time to time designate in writing, in lawful money or in funds which are or
will be available for immediate use by Payee at such office by 2:00 p.m., Salt
Lake City time on the day payment or prepayment is due.

     3.     Prepayment.  Maker reserves the right and privilege of prepaying
this Note in whole or in part at any time, or from time to time, without
notice, premium, charge, or penalty.  Prepayments on this Note shall be
applied first to accrued and unpaid interest to the date of such prepayment,
next to expenses for which Payee is due to be reimbursed under the terms of
this Note, and then to the unpaid principal balance hereof.

     4.     Default. An event of default ("Event of Default") shall be deemed
to have occurred upon the happening of any of the following events or
conditions:

          (a)     The failure or refusal of Maker to pay principal of or
interest on this note within five (5) days of when the same becomes due in
accordance with the terms hereof.

          (b)     The failure or refusal of Maker punctually to and properly
to perform, observe, and comply with any covenant or agreement contained
herein, and such failure or refusal continues for a period of thirty (30) days
after Maker has (or, with the exercise of reasonable investigation, should
have) notice thereof.

          (c)     Maker shall (i) become insolvent, (ii) fail to pay its debts
generally as they become due, (iii) voluntarily seek, consent to or acquiesce
in the benefit or benefits of any Debtor Relief Law (defined hereinafter), or
(iv) become a party to (or be made the subject of) any proceeding provided for
by any Debtor Relief Law, other than as a creditor or claimant, that could
suspend or otherwise adversely affect the Rights (defined hereinafter) of
Payee granted herein (unless, in the event such proceeding is involuntary, the
petition instituting same is dismissed within 60 days of the filing of same).
"Debtor Relief Law" means the Bankruptcy Code of the United States of America
and all other applicable liquidation, conservatorship, bankruptcy, moratorium,
rearrangement, receivership, insolvency, reorganization, suspension of
payments, or similar Laws from time to time in effect affecting the Rights of
creditors generally.  "Rights" means rights, remedies, powers, and privileges.
"Laws" means all applicable statutes, laws, ordinances, regulations, orders,
writs, injunctions, or decrees of any state, commonwealth, nation, territory,
possession, county, parish, municipality, or Tribunal.  "Tribunal" means any
court or governmental department, commission, board, bureau, agency or
instrumentality of the United States or of any state, commonwealth, nation,
territory, possession, county, parish, or municipality, whether now or
hereafter constituted and/or existing.

          (d)     The failure to have discharged within a period of thirty
(30) days after the commencement thereof any attachment, sequestration or
similar proceeding against any of the assets of Maker, or the loss, theft or
destruction of, or occurrence of substantial damage to, a material part of the
assets of Maker, except to the extent adequately covered by insurance.

          (e)     Maker fails to pay any money judgment against it at least
ten (10) days prior to the date on which any of Maker's assets may be lawfully
sold to satisfy such judgment.

          (f)     The discovery by Payee that any statement, representation,
or warranty herein or in any writing ever delivered to Payee pursuant to this
Note is false, misleading, or erroneous in any material respect.

     If any one or more of the Events of Default specified above shall have
happened, the entire unpaid balance of principal of and accrued interest on
this Note shall be immediately due and payable without presentation, demand,
protest, notice of protest, or other notice of dishonor, all of which are
hereby expressly waived by Debtor, and the holder of this Note may, without
notice or demand (which are hereby waived), at his option, (i) offset against
this Note any sum or sums owed by the holder hereof to Maker, (ii) reduce any
claim to judgment, (iii) foreclose all liens or any part thereof, and/or (iv)
proceed to protect and enforce its rights either by suit in equity and/or by
action of law, or by other appropriate proceedings, whether for the specific
performance of any covenant or agreement contained in this Note, or in aid of
the exercise granted by this Note, of any right, or to enforce any other legal
or equitable right or remedy of the holder of this Note.

     5.     Cumulative Rights.  No delay on the part of the holder of this
Note in the exercise of any power or right or single partial exercise of any
such power or right under this Note, or under any other instrument executed
pursuant hereto shall operate as a waiver thereof.  Enforcement by the holder
of this Note of any right for the payment hereof shall not constitute any
election by it of remedies so as to preclude the exercise of any other remedy
available to it.

     6.     Collection Costs.  If this Note is placed in the hands of an
attorney for collection, or if it is collected through any legal proceeding at
law or in equity or in bankruptcy, receivership or other court proceedings,
Maker agrees to pay all costs of collection, including but not limited to
court costs and reasonable attorney's fees of the Payee.

     7.     Waiver.  Maker, and each surety, endorser, guarantor, and other
party liable for the payment of any sums of money payable on this Note,
jointly and severally waive presentment and demand for payment, protest, and
notice of protest and nonpayment, or other notice of default except as
specified herein and agree that their liability on this Note shall not be
affected by any renewal or extension in the time of payment hereof, or in any
indulgences, or by any partial payment, any release or change in any security
for the payment of this Note, before or after maturity, regardless of the
number of such renewals, extensions, indulgences, releases, or changes.

     8.     Notices.  Any notice or demand given hereunder by the holder
hereof shall be deemed to have been given and received (a) when actually
received by Maker, if delivered in person, (b) if mailed, on the earlier of
the date actually received or (whether ever received or not) two business days
after deposit in the U. S. Mail, postage prepaid, addressed to Maker at its
address on the first page, or (c) as otherwise provided in the Loan Agreement.

     9.     Successor and Assigns.  All of the covenants, stipulations,
promises and agreements in this Note contained by or on behalf of Maker shall
bind its successors and assigns, whether so expressed or not; provided,
however, that Maker may not, without the prior written consent of Payee,
assign any rights, powers, duties, or obligations under this note.

     10.     Headings.  The headings of the paragraphs of this Note are
inserted for convenience only and shall not be deemed to constitute a part
hereof.

     11.     Applicable Law.  This Note is being executed and delivered, and
is intended to be performed, in the state of Utah, and the substantive laws of
such state shall govern the validity, construction, enforcement and
interpretation of this Note except insofar as federal laws shall have
application.

     EXECUTED effective the ______ day of _______________, 2001.

                              SCIENTIFIC ENERGY, INC.

                              By:_______________________________________
                                 Jana K. Meyer, Secretary/Treasurer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00029-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00029-of-00352.parquet"}]]