Document:

NOT VALID UNLESS COUNTERSIGNED BY TRANSFER AGENT
               INCORPORATED UNDER THE LAWS OF THE STATE OF NEVADA

                              BLUEGATE CORPORATION

                                                           CUSIP NO. 09623A 10 5

                                    formerly

                          CRESCENT COMMUNICATIONS, INC.

                   AUTHORIZED COMMON STOCK: 50,000,000 SHARES
                                PAR VALUE: $.001

THIS CERTIFIES THAT

IS THE RECORD HOLDER OF   *SEVEN THOUSAND ONE HUNDRED FORTY THREE*

                   SHARES OF BLUEGATE CORPORATION COMMON STOCK

Transferable on the books of the Corporation in person or by duly authorized
attorney Upon surrender of this Certificate properly endorsed. This Certificate
is not valid until countersigned by the Transfer Agent and registered by the
Registrar.

     Witness the facsimile seal of the Corporation and the facsimile signatures
of its duly authorized officers.

Dated: APRIL 27, 2005

/s/ [ILLEGABLE]                                             /s/ [ILLEGABLE]
--------------------------  [CRESENT COMMUNICATIONS, INC.]  --------------------
        SECRETARY/TRESURER      [CORPORATE SEAL]                       PRESIDENT
                                    [NEVADA]

<PAGE>
NOTICE:   Signature  must  be  guaranteed  by  a  firm  which  is  a member of a
          registered  national stock exchange, or by a bank (other than a saving
          bank),  or  a trust company. The following abbreviations, when used in
          the inscription on the face of this certificate, shall be construed as
          though  they  were written out in full according to applicable laws or
          regulations.

     TEN COM - as tenants in common    UNIF GIFT MIN ACT -. . . Custodian . . .
     TEN ENT - as tenants by the                          (Cust)         (Minor)
               entireties                          under Uniform Gifts to Minors
     JT TEN - as joint tenants with                Act . . . . . . . . . . . . .
              right of suvivorship                              (State)
              and not as tenants
              in common

         Additional abbreviations may also be used though not in the above list.

               For Value Received, _______ hereby sell, assign and transfer unto

PLEASE INSERT SOCIAL SECURITY OR OTHER
     IDENTIFYING NUMBER OF ASSIGNEE
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  (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE. OR ASSIGNEE)

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                                                                          Shares
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of  the  capital  stock  represented  by  the  within certificate, and do hereby
irrevocably  constitute  and  appoint

                                                                        Attorney
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to  transfer  the  said  stock on the books of the within named Corporation with
full  power  of  substitution  in  the  premises.

Dated
     --------------------

     ----------------------------------------------------------------------
     NOTICE:THE  SIGNATURE  TO THIS AGREEMENT MUST CORRESPOND WITH THE NAME
     AS  WRITTEN  UPON  THE  FACE  OF THE CERTIFICATE, IN EVERY PARTICULAR,
     WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER.

                         CURRENT TRANSFER FEE APPLICABLETHIS DEBENTURE AND THE SHARES OF COMMON STOCK UNDERLYING THIS DEBENTURE HAVE
              NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933
        OR ANY APPLICABLE  STATE SECURITIES LAWS, AND MAY NOT BE OFFERED
         FOR SALE, SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED WITHOUT AN
          EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND
          UNDER ANY APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF
             COUNSEL, SATISFACTORY TO THE COMPANY, THAT AN EXEMPTION
                      FROM SUCH REGISTRATION IS AVAILABLE.

                              BLUEGATE CORPORATION

                            10% CONVERTIBLE DEBENTURE
                              DUE NOVEMBER 1, 2005

No. 1                                                               $100,000.00

     FOR  VALUE  RECEIVED,  Bluegate  Corporation,  a  Nevada  corporation  (the
"Company"),  promises  to  pay to Platinum Partners Global Macro Fund, LP, whose
address  is  152 West 57th Street, 54th Floor, New York, NY 10013, or registered
assigns (the "Holder"), the sum of ONE HUNDRED THOUSAND DOLLARS ($100,000.00) in
lawful  money  of the United States of America on or before the Maturity Date as
defined  herein,  with  all  Interest  thereon  as defined and specified herein.

     1. INTEREST. This Debenture shall bear interest ("Interest") at the rate of
ten  percent  (10%) per annum from the Issue Date through the Maturity Date. The
Company  shall  pay  such  Interest  in  cash  on  the  Maturity  Date.

     2.  PRE-PAYMENTS AND MATURITY DATE. This Debenture shall be due and payable
in  full, including all accrued Interest thereon, on November 1, 2005 ("Maturity
Date"). The Company may prepay this Debenture at any time after issuance without
penalty.

     3.  [INTENTIONALLY  OMITTED.]

     4.  CONVERSION  OF  DEBENTURE.

     4.1  Conversion  Price. This Debenture is convertible, at the option of the
Holder,  into  shares  ("Shares") of the Company's common stock, par value $.001
per  share  ("Common  Stock"), at any time after the Issue Date and prior to the
close  of  business on the business day prior to the Maturity Date or conversion
date,  as  the  case  may  be.  The  conversion  price  for  the conversion (the
"Conversion  Price")  will  be equal to $.50 per share, subject to adjustment as
provided  in  Subsection 4.2, and the number of Shares to which the Holder shall
be  entitled  shall  be  determined  by  dividing the then outstanding principal
amount of and interest on this Debenture by the Conversion Price then in effect.

<PAGE>
     4.2  Adjustment  Based  Upon Stock Dividends, or Combination of Shares. The
Conversion Price shall each be adjusted in the manner described in the remainder
of  this  Subsection 4.2. If the outstanding shares of the Common Stock shall be
subdivided  into  a greater number of shares or a dividend in Common Stock shall
be  paid  in respect of Common Stock, the Conversion Price in effect immediately
prior  to  such  subdivision  or  at  the  record  date  of  such dividend shall
simultaneously  with  the effectiveness of such subdivision or immediately after
the  record date of such dividend be proportionately reduced. If the outstanding
Shares  shall  be combined into a smaller number of shares, the Conversion Price
in  effect  immediately prior to such combination shall, simultaneously with the
effectiveness  of  such  combination,  be  proportionately  increased.

     4.3  Adjustment  Based  Upon  Merger, Consolidation or Recapitalization. In
case  of any consolidation or merger to which the Company is a party (other than
a  merger in which the Company is the surviving entity and which does not result
in  any  reclassification  of  or  change in the outstanding Common Stock of the
Company),  or  in  case  of  any  sale or conveyance to another person, firm, or
corporation of the property of the Company as an entirety or substantially as an
entirety,  or  in  case of any capital reorganization or reclassification of the
Common  Stock  (other than a change in par value or a subdivision or combination
as  provided for in Subsection 4.2 immediately above), the Holder shall have the
right  to  convent  this  Debenture  into  the kind and amount of securities and
property  (including  cash) receivable upon such consolidation, merger, sale, or
conveyance,  reorganization  or  reclassification  by  a holder of the number of
Shares  into  which  such  Debenture  might have been convened immediately prior
thereto.

     4.4 Exercise of Conversion Privilege. The conversion privilege provided for
herein  shall  be  exercisable by the Holder by written notice to the Company or
its  successor and the surrender of this Debenture in exchange for the number of
shares  (or  other  securities  and property, including cash, in the event of an
adjustment  of  the  Conversion  Price) into which this Debenture is convertible
based  upon  the Conversion Price. Conversion rights will expire at the close of
business  on  the  business  day  prior  to  the  Maturity  Date.

     4.5  Corporate  Status  of  Common Stock to be Issued. All Common Stock (or
other  securities  in the event of an adjustment of the Conversion Price), which
may  be  issued  upon  the  conversion of this Debenture, shall upon issuance be
fully  paid  and  non-assessable.

     4.6  Issuance  of  Certificate.  Upon the conversion of this Debenture, the
Company  shall  in  due course issue to the Holder a certificate or certificates
representing  the  number  of  Shares  (or  other  securities in the event of an
adjustment  of  the  Conversion  Price)  to  which  the  conversion  relates.

     4.7  Fractional  Shares.  No  fractional  Shares  will  be  issued. In lieu
thereof,  the  Company  will  pay cash for fractional Share amounts equal to the
closing  sale price of the Common Stock on the date of conversion, determined as
follows:

          4.7.1  If the Common Stock is listed on a national securities exchange
or  admitted  to unlisted trading privileges on such exchange, the current value
shall  be  the  last reported sale price of the Common Stock on such exchange on
the  last  business day prior to the date of conversion of this Debenture, or if
no  such  sale is made on such day, the average closing bid and asked prices for
such  day  on  such  exchange;  or

                                      -2-
<PAGE>
          4.7.2  If  the  Common  Stock  is  not  listed or admitted to unlisted
trading  privileges,  the current value shall be the last reported sale price or
the  mean  of the last bid and asked prices reported by the National Association
of Securities Dealers Automated Quotation System on the Nasdaq Small-Cap Market,
Nasdaq  National  Market  System  or OTC Bulletin Board (or, if not so quoted on
NASDAQ, by the National Quotation Bureau, Inc. or other reporting system for the
public  market  in which the Common Stock trades) on the last business day prior
to  the  date  of  the  conversion  of  this  Debenture;  or

          4.7.3  If  the  Common  Stock is not so listed or admitted to unlisted
trading  privileges  and  prices  are  not reported on NASDAQ, the current value
shall  be an amount, not less than the book value, determined in such reasonable
manner as may be prescribed by the Board of Directors of the Company.

     4.8  Automatic  Conversion.  If  prior  to the Maturity Date a registration
statement  covering  the  resale  of  the Shares to be issued to the Holder upon
conversion  of  this Debenture shall be declared effective by the Securities and
Exchange  Commission  (the  "Commission"),  then  this  Debenture  shall  fully,
automatically  and  without  any  action on the part of the Holder, convert into
Shares.  The conversion price for any automatic conversion under this Subsection
4.8  shall  be  the  Conversion  Price then in effect as theretofore adjusted as
provided  in  Subsection 4.2, and the number of Shares to which the Holder shall
be  entitled  shall  be  determined  by  dividing the then outstanding principal
amount of and interest on this Debenture by the Conversion Price then in effect.

     5.  STATUS  OF  HOLDER  OF  DEBENTURE. This Debenture shall not entitle the
Holder  to  any voting rights or other rights as a shareholder of the Company or
to  any  rights  whatsoever except the rights herein expressed, and no dividends
shall  be  payable  or  accrue  in  respect  of this Debenture or the securities
issuable  upon  the  conversion  hereof unless and until this Debenture shall be
converted.  Upon  the  conversion  of  this  Debenture, the Holder shall, to the
extent  permitted  by  law,  be  deemed to be the holder of record of the Shares
issuable  upon such conversion, notwithstanding that the stock transfer books of
the  Company  shall  then  be  closed or that the certificates representing such
Shares  shall not then be actually delivered. Immediately upon the conversion of
this  Debenture,  the  rights  of Holder under this Debenture shall cease except
with  regard  to  the  right  to receive the Shares issuable upon conversion. As
promptly  as  practicable  after either the conversion of this Debenture, Holder
shall  surrender  this  Debenture  marked  "Cancelled."

     6.  RESERVE  OF  SHARES.  The  Company  shall reserve out of its authorized
Shares  (and  other  securities  in the event of an adjustment of the Conversion
Price)  a number of shares sufficient to enable it to comply with its obligation
to  issue  Shares  (and  other  securities  in the event of an adjustment of the
Conversion  Price)  upon  the  conversion  of  this  Debenture.

     7.  REGISTRATION  RIGHTS.

     7.1  The  Holder  of  this  Debenture shall have the right to join with the
Company  to register the Common Stock underlying the Debenture or any warrant to
purchase  Common Stock issued in connection herewith ("Underlying Common Stock")
in any Registration Statement under the Securities Act of 1933 (the "Act") filed
by  the  Company with the Commission, which includes a public offering of equity
securities  for  cash,  either  for  the  account  of  the  Company  or  for the

                                      -3-
<PAGE>
account  of  any  other  person.  This  right  to  join  with  the  Company in a
Registration  Statement  under  the  Securities  Act  of 1933 (the "Act") is not
applicable  to a Registration Statement filed by the Company with the Commission
on  Form S-4, S-8, or any other form not registering a public offering of equity
securities  for  cash.  If,  at  any  time,  the  Company  proposes  to  file  a
Registration  Statement  as  described  above  with the Commission, it shall, at
least  thirty  (30)  days  prior  to  such  filing,  give written notice of such
proposed  filing to the Holder and its designees at their addresses appearing on
the  records  of  the  Company and shall offer to include in any such filing any
proposed disposition of the Underlying Common Stock. Within fifteen (15) days of
receipt  of  the Company's notice of filing, the owners of the Underlying Common
Stock  may  request  registration  of  the Underlying Common Stock pursuant to a
written request setting forth the intended method of distribution and such other
data  or  information as the Company or its counsel shall reasonably require and
the  Company shall use its best efforts to cause all Underlying Common Stock, as
to  which  registration  shall  have  been  so  requested, to be included in the
securities  to  be  covered  by  the  Registration  Statement, all to the extent
requisite  to  permit  the  sale  or other disposition by the undersigned of the
Underlying  Common Stock requested to be so registered; provided, however, that:

          (i)  If, at any time after giving such written notice of its intention
to  register  any securities and prior to the effective date of the Registration
Statement,  the  Company  shall  determine  for  any reason not to register such
securities,  the  Company  may,  at  its  election,  give written notice of such
determination to the undersigned, and thereupon the Company shall be relieved of
its  obligation  to register any Underlying Common Stock in connection with such
registration;

          (ii)  If  such  registration  involves  an  underwritten offering, the
undersigned  must  sell its Underlying Common Stock to the underwriters selected
by  the Company on the same terms and conditions as apply to the Company (except
as  otherwise  agreed  to  by  the  Company  in  writing);  and

          (iii)  The  Company  shall  be  obligated  to  keep  the  Registration
Statement  effective  only  for  nine  months  after its initial effective date.

     The  Company  shall  supply  said owner(s) with copies of such Registration
Statement,  and of the prospectus included therein, in such quantities as may be
reasonably  necessary  for  the purpose of the proposed disposition. The Company
will  pay all registration expenses in connection with the registration pursuant
to  this  Subsection.  Such reasonable expenses will include all registration of
filing  fees, printing expenses and reasonable fees and disbursements of counsel
for  the  Company and its independent certified public accountants, the fees and
expenses  associated  with  any required filing with the National Association of
Dealers,  Inc. ("NASD"). The Company is not required to pay any fees or expenses
of  Holder,  placement agents or legal counsel of the Holder or placement agent,
or accountant or any other advisors, including any transfer taxes, underwriting,
brokerage  or  other  discounts  and  commissions  and  finder's or similar fees
payable  with  respect  to  the  Common  Stock  registered  in  the Registration
Statement.

     7.2 The number of Underlying Common Stock to be included in an underwritten
offering  may  be reduced, pro rata among all the Company's stockholders selling
shares  in  the

                                      -4-
<PAGE>
offering,  in  a  ratio equal to the respective amounts of shares proposed to be
sold  by  such  stockholders, if and to the extent that the managing underwriter
shall  advise  the  undersigned and the Company by letter of its belief that the
number  of  securities requested to be registered exceeds the number that can be
sold  in  (or  during the term of) such offering without adversely affecting the
marketing  of  the  securities  to  be  sold  by  the  Company.

     7.3     Each  Holder  shall  pay  all  costs  and expenses incurred by such
Holder,  including  all  transfer  taxes,  underwriting,  brokerage  and  other
discounts  and commissions and finder's and similar fees payable with respect to
the Underlying Common Stock registered pursuant to this Section 7. To the extent
any  registration  expenses  are  incurred, assumed or paid by any Holder or any
placement  or  sales  agent  therefor  or underwriter thereof with the Company's
prior  consent,  the  Company shall reimburse such person for the full amount of
the  registration expenses so incurred, assumed or paid within a reasonable time
after  receipt  of  a  written  request  for the same. Any registration expenses
submitted  by  any Holder, placement agent, sales agent or underwriter on behalf
of  any  such  person for payment by the Company shall be itemized in detail and
contain  clear  and  accurate receipts of all expenditures made by such parties.

     7.4  (a)     The  Company shall protect, indemnify and hold the Holder, and
its  officers,  directors,  stockholders,  attorneys,  accountants,  employees,
affiliates,  successors  and assigns, harmless from any and all demands, claims,
actions,  causes  of  actions, lawsuits, proceedings, investigations, judgments,
losses,  damages,  injuries,  liabilities,  obligations,  expenses  and  costs
(including  costs  of  litigation  and attorneys' fees), arising out of or based
upon  (i)  any untrue statement or alleged untrue statement of any material fact
contained  in  or incorporated by reference into the Registration Statement, any
preliminary  prospectus  or final prospectus contained therein, or any amendment
or  supplement thereto, (ii) the omission or alleged omission to state therein a
material  fact required to be stated therein or necessary to make the statements
therein  not  misleading,  or (iii) any material violation by the Company of any
rule  or regulation promulgated under Act applicable to the Company and relating
to  action  or inaction by the Company in connection with any such registration;
provided,  however,  that the Company shall not be liable in the case of (i) and
(ii)  above  if  and  to  the  extent  that  the  event otherwise giving rise to
indemnification  arises  out  of or is based upon an untrue statement or alleged
untrue  statement  or  omission  or  alleged  omission  made  in conformity with
information  furnished  by  a  person  otherwise  entitled to indemnification in
writing  specifically  for  use  in the Registration Statement or prospectus, or
information  contained in a writing that has been expressly approved by a person
otherwise  entitled  to  indemnification.

          (b)  The  Holder shall protect, indemnify and hold the Company and its
officers,  directors,  stockholders,  attorneys,  accountants,  employees,
affiliates,  successors  and assigns, harmless from any and all demands, claims,
actions,  causes  of  actions, lawsuits, proceedings, investigations, judgments,
losses,  damages,  injuries,  liabilities,  obligations,  expenses  and  costs
(including  costs  of  litigation  and attorneys' fees), arising out of or based
upon  (i)  any untrue statement or alleged untrue statement of any material fact
contained  in  or incorporated by reference into the Registration Statement, any
preliminary  prospectus  or final prospectus contained therein, or any amendment
or  supplement thereto, (ii) the omission or alleged omission to state therein a
material  fact required to be stated therein or necessary to make the statements
therein  not  misleading,  or  (iii) any material violation by the Holder of any
rule  or  regulation  promulgated  under

                                      -5-
<PAGE>
the  Act  applicable  to  the  Holder  and relating to action or inaction by the
Holder  in  connection  with  any such registration; provided, however, that the
Holder  shall  be  liable  in  the case of (i) and (ii) above only if and to the
extent  that  the event giving rise to indemnification arises out of or is based
upon  an  untrue  statement  or  alleged untrue statement or omission or alleged
omission  made in conformity with information furnished by the Holder in writing
specifically for use in the Registration Statement or prospectus, or information
contained  in  a  writing  that  has  been  expressly  approved  by  the Holder.

          (c)  Promptly  after  receipt  by  an  indemnified  party  under  this
Subsection  7.4  of  notice  of  the  threat or commencement of any action, such
indemnified  party shall, if a claim in respect thereof is to be made against an
indemnifying  party  hereunder,  notify  each such indemnifying party in writing
thereof,  but  the omission so to notify an indemnifying party shall not relieve
it  from  any liability which it may have to any indemnified party to the extent
that  the  indemnifying  party is not prejudice as a result thereof. In case any
such  action  shall be brought against any indemnified party and it shall notify
an  indemnifying party of the commencement thereof, the indemnifying party shall
be  entitled  to  participate in and, to the extent it shall wish, to assume and
undertake  the  defense  thereof  with  counsel  reasonably satisfactory to such
indemnified  party,  and,  after  notice  from  the  indemnifying  party to such
indemnified  party  of  its  election  so  to  assume  and undertake the defense
thereof,  the  indemnifying  party shall not be liable to such indemnified party
under  this  Subsection 7.4 for any legal expenses subsequently incurred by such
indemnified  party  in connection with the defense thereof other than reasonable
costs  of  investigation  and  of  liaison  with  counsel  so elected; provided,
however,  that, if the defendants in any such action include both an indemnified
party  and  an  indemnifying  party and the related indemnified party shall have
reasonably concluded that there may be reasonable defenses available to it which
are different from or additional to those available to the indemnifying party or
if the interests of the indemnified party reasonably may be believed to conflict
with  the  interests of the indemnifying party, the indemnified party shall have
the  right  to  select  separate  counsel  and to assume such legal defenses and
otherwise  to  participate  in the defense of such action, with the expenses and
fees  of  such separate counsel and other expenses related to such participation
to  be  reimbursed  by the indemnifying party as incurred. No indemnifying party
shall be subject to any liability for any settlement made without consent, which
shall  not  be unreasonably withheld. No indemnifying party shall consent to the
entry  of  any judgment or enter into any settlement that does not include as an
unconditional  term  thereof  the  giving  by  the claimant or plaintiff to such
indemnified  party of a release from all liability with respect to such claim or
litigation.

     8.     DEFAULT.  The  Company  shall  perform its obligations and covenants
hereunder  and  in each and every other agreement between the Company and Holder
pertaining  to the Indebtedness evidenced hereby. The following provisions shall
apply  upon  failure  of  the  Company  so  to  perform.

          8.1  Event of Default. Any of the following events shall constitute an
"Event  of  Default"  hereunder:

               8.1.1  Failure  by  the  Company  to  pay principal of any of the
Debenture  when  due  and  payable  on  the  Maturity  Date;

               8.1.2 Failure of the Company  to pay Interest when due hereunder,
which

                                      -6-
<PAGE>
failure  continues  for  a  period of thirty (30) days after the due date of the
amount  involved;  or

               8.1.3  Failure  of  the  Company to perform any of the covenants,
conditions, provisions or agreements contained herein, or in any other agreement
between  the Company and Holder pertaining to the Indebtedness evidenced hereby,
which  failure continues for a period of sixty (60) days after written notice of
default  has been given to the Company by the Holder; provided, however, that if
the  nature  of  the Company's obligation is such that more than sixty (60) days
are  required  for  performance, then an Event of Default shall not occur if the
Company  commences  performance within such sixty (60) day period and thereafter
diligently  prosecutes  the  same  to  completion;  or

               8.1.4  The  entry of an order for relief under Federal Bankruptcy
Code  as  to  the Company or entry of any order appointing a receiver or trustee
for  the  Company  or  approving  a  petition in reorganization or other similar
relief  under  bankruptcy or similar laws in the United States of America or any
other  competent  jurisdiction,  and  if  such  order,  if  involuntary,  is not
satisfied or withdrawn within sixty (60) days after entry thereof; or the filing
of  a  petition  by  the  Company  seeking  any  of the foregoing, or consenting
thereto:  or  the filing of a petition to take advantage of any debtor's act; or
making  a  general  assignment  for  the  benefit  of creditors; or admitting in
writing  inability  to  pay  debts  as  they  mature.

     8.2  Acceleration.  Upon  any  Event of  Default  (in addition to any other
rights  or  remedies  provided  for  under this Debenture), at the option of the
Holder,  all  sums evidenced hereby, including all principal, accrued but unpaid
Interest, fees and all other amounts due hereunder, shall become immediately due
and  payable.  If  an  Event  of Default in the payment of principal or Interest
should  occur  and  be  continuing with respect to the Debenture, the Holder may
declare the principal of the Debenture to be immediately due and payable. In the
Event  of  a  Default  due to a breach of any other covenant or term, Holder may
take  action  to  accelerate  the  Debenture. If an Event of Default relating to
certain events of bankruptcy, insolvency or reorganization of the Company or any
Subsidiary  occurs  and  is continuing, the principal of and and interest on the
Debenture will become and be immediately due and payable without any declaration
or  other act on the part of the Holder. Under certain circumstances, the Holder
may  rescind  any  such  acceleration  with  respect  to  the  Debenture and its
consequences.

     8.3 Notice by Company. Upon the happening of any Event of Default specified
in  this  Section  that  is  not  cured within the respective periods prescribed
above, the Company will give prompt written notice thereof to the Holder of this
Debenture.

     8.4 No Waiver. Failure of the Holder to exercise any option hereunder shall
not  constitute  a  waiver of the right to exercise the same in the event of any
subsequent  Event  of  Default,  or  in the event of continuance of any existing
Event  of  Default  after  demand  or  performance  thereof.

     8.5  Default  Interest. Default Interest will accrue on an unpaid principal
or  Interest  due hereunder at the rate of eighteen percent (18%) per annum upon
the  occurrence  of  any  Event  of Default until the Event of Default is cured.

                                      -7-
<PAGE>
     9.   INVESTMENT INTENT, RESTRICTIONS ON ASSIGNMENT, ASSIGNMENT, TRANSFER OR
LOSS  OF  THE  DEBENTURE.

     9.1  (a)  The Holder, by acceptance of this Debenture, represents that this
Debenture and any Shares issuable upon conversion of this Debenture are being
and will be acquired for the Holder's own account for investment and not with a
view to, or for resale in connection with, the distribution thereof in violation
of applicable securities laws, and that the Holder has no present intention of
distributing or reselling this Debenture or any such Shares. The Holder, by
acceptance of this Debenture, further represents that it has not offered or sold
this Debenture, or any Shares into which this Debenture is convertible, directly
or indirectly to any other person, and that the Holder is not acquiring this
Debenture or any such Common Stock for the account of any other person.
Certificates evidencing Shares issuable upon conversion of this Debenture shall
bear the following legend:

          "THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN
          REGISTERED UNDER THE SECURITIES ACT OF 1933 AND HAVE BEEN
          TAKEN FOR INVESTMENT PURPOSES ONLY AND NOT WITH A VIEW TO
          THE DISTRIBUTION THEREOF IN VIOLATION OF APPLICABLE
          SECURITIES LAWS, AND SUCH SECURITIES MAY NOT BE SOLD OR
          TRANSFERRED UNLESS THERE IS AN EFFECTIVE REGISTRATION
          STATEMENT UNDER SUCH ACT COVERING SUCH SECURITIES OR THE
          COMPANY RECEIVES AN OPINION OF COUNSEL (WHICH MAY BE COUNSEL
          FOR THE COMPANY) REASONABLY ACCEPTABLE TO THE COMPANY
          STATING THAT SUCH SALE OR TRANSFER IS EXEMPT FROM THE
          REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH
          ACT.

          (b)     No  Holder of this Debenture may assign, transfer, hypothecate
or  sell  all  or any part of this Debenture (or any of the Shares issuable upon
conversion  of  this Debenture) or in any way alienate or encumber the Debenture
(or  any  of  the Shares issuable upon conversion of this Debenture) without the
express written consent of the Company, the granting or denial of which shall be
within  the  absolute  discretion  of  the  Company.  Any attempt to effect such
transfer  without the consent of the Company shall be null and void. The Company
has not registered this Debenture (or any of the Shares issuable upon conversion
of  this Debenture) under the Act or the applicable securities laws of any state
in  reliance  on  exemptions  from registration. Such exemptions depend upon the
investment  intent  of  the Holder at the time he acquires his Debenture or such
Shares.  Each  Holder  has  acquired  his Debenture (and will acquire the Shares
issuable  upon  conversion of this Debenture) for his own account for investment
purposes  only  and  not  with  a  view  toward  distribution  or resale of such
Debenture  or  such  shares  within  the  meaning  of the Act and the applicable
securities laws of any state. The Company shall be under no duty to register the
Debenture  (or  any of the Shares issuable upon conversion of this Debenture) or
to  comply  with  an  exemption  in  connection with the sale, transfer or other
disposition  under  the  applicable  laws  and  regulations  of  the  Act or the
applicable  securities  laws of any state. The Company may require the Holder to
provide,  at  his  expense, an opinion of counsel satisfactory to the Company to
the  effect  that any proposed transfer or other assignment of the Debenture (or
any of the Shares issuable upon conversion of this Debenture) will not result in
a  violation  of  the  applicable  federal  or  state

                                      -8-
<PAGE>
securities  laws  or  any other applicable federal or state laws or regulations.

     9.2  All  expenses, including reasonable legal fees incurred by the Company
in  connection  with  any  permitted  transfer,  assignment  or  pledge  of this
Debenture  will  be  paid  by the Holder requesting such transfer, assignment or
pledge.

     9.3  Upon receipt of evidence reasonably satisfactory to the Company of the
loss,  theft, destruction or mutilation of any Debenture and, in the case of any
such  loss, theft or destruction of any Debenture, upon delivery of an indemnity
bond  in such reasonable amount as the Company may determine (or, in the case of
any  Debenture  held by the original Debenture holder, of an indemnity agreement
reasonably satisfactory to the Company), or, in the case of any such mutilation,
upon  the surrender of such Debenture to the Company at its principal office for
cancellation,  the  Company  at  its  expense  will execute and deliver, in lieu
thereof,  a  new  Debenture  of  like  tenor,  dated  the date to which interest
hereunder  shall  have  been  paid  on such lost, stolen, destroyed or mutilated
Debenture.

     9.4 Subject to Subsections 9.1 and 9.2 above and 9.5 below, the Holder may,
at  his  option, either in person or by duly authorized attorney, surrender this
Debenture  for  registration  of transfer at the principal office of the Company
and,  upon  payment  of  any  expenses  associated with the transfer, receive in
exchange therefor the Debenture, dated as of the date to which interest has been
paid on the Debenture so surrendered, each in the principal amount of $10,000 or
any  multiple  thereof,  for  the  same aggregate unpaid principal amount as the
Debenture  so surrendered and registered as payable to such person or persons as
may be designated by the Holder. Every Debenture surrendered for registration of
transfer  shall be duly endorsed or shall be accompanied by a written instrument
of  transfer  duly  executed  by  the  Holder or his attorney duly authorized in
writing.  Every  Debenture, so made and delivered by the Company in exchange for
any  Debenture  surrendered, shall in all other respects be in the same form and
have  the  same terms as the Debenture surrendered. No transfer of any Debenture
shall  be  valid  unless  made  in  such  manner  at the principal office of the
Company.

     9.5  The  Company  may  treat  the  person  in whose name this Debenture is
registered  as  the  owner  and  Holder  of  this  Debenture  for the purpose of
receiving  payment  of  all principal of and all Interest on this Debenture, and
for  all  other  purposes  whatsoever,  whether  or  not such Debenture shall be
overdue  and,  except for transfers effected in accordance with this subsection,
the  Company  shall  not  be  affected  by  notice  to  the  contrary.

     10.  MODIFICATIONS  AND  AMENDMENTS.  Modifications  and  amendments to the
Debenture  may  be  made  by  the  Company  only with the consent of the Holder.

     11.  NOTICES.  All notices provided for herein shall be validly given if in
writing and delivered personally or sent by certified mail, postage prepaid, (in
the  case  of the Company) to the office of the Company or such other address as
the  Company  may from time to time designate in writing sent by certified mail,
postage prepaid, or (in the case of the Holder) to the Holder at his address set
forth  above or such other address as the Holder may from time to time designate
in  writing  to  the  Company  by  certified  mail,  postage  prepaid.

                                      -9-
<PAGE>
     12.  USURY.  All  Interest,  fees,  charges, goods, things in action or any
other  sums  or things of value, or other contractual obligations (collectively,
the  "Additional  Sums") paid by the Company hereunder, whether pursuant to this
Debenture  or  otherwise,  with respect to the Indebtedness evidenced hereby, or
any  other  document  or  instrument  in any way pertaining to the Indebtedness,
which,  under  the  laws of the State of Texas may be deemed to be Interest with
respect  to such loan or Indebtedness, shall, for the purpose of any laws of the
State  of  Texas,  which  may limit the maximum amount of Interest to be charged
with  respect  to  such  loan or Indebtedness, be payable by the Company as, and
shall  be deemed to be, Interest and for such purposes only, the agreed upon and
contracted  rate  of  Interest shall be deemed to be increased by the Additional
Sums. Notwithstanding any provision of this Debenture to the contrary, the total
liability  for payments in the nature of Interest under this Debenture shall not
exceed  the  limits  imposed  by  applicable law. The Company shall not assert a
claim,  and  shall  actively resist any attempts to compel it to assert a claim,
respecting  a  benefit under any present or future usury laws against any Holder
of  this  Debenture.

     13. BINDING EFFECT. This Debenture shall be binding upon the parties hereto
and  their  respective  heirs,  executors,  administrators,  representatives,
successors  and  permitted  assigns.

     14. COLLECTION FEES. Except as otherwise provided herein, the Company shall
pay  all costs of collection, including reasonable attorneys' fees and all costs
of suit and preparation for such suit (and whether at trial or appellate level),
in  the  event  the unpaid principal amount of this Debenture, or any payment of
Interest  is  not  paid  when  due,  or in the event Holder is made party to any
litigation  because  of  the  existence  of  the  Indebtedness evidenced by this
Debenture,  or  if  at  any  time Holder should incur any attorneys' fees in any
proceeding  under  the  Federal  Bankruptcy  Code (or other similar laws for the
protection  of debtors generally) in order to collect any Indebtedness hereunder
or to preserve, protect or realize upon any security for, or guarantee or surety
of, such Indebtedness whether suit be brought or not, and whether through courts
of  original  jurisdiction,  as  well as in courts of appellate jurisdiction, or
through  a  bankruptcy  court  or  other  legal  proceedings.

     15.  CONSTRUCTION.  THIS  DEBENTURE  SHALL  BE GOVERNED AS TO ITS VALIDITY,
INTERPRETATION,  CONSTRUCTION,  EFFECT  AND  IN  ALL  OTHER  RESPECTS  BY AND IN
ACCORDANCE  WITH  THE  LAWS  AND  INTERPRETATIONS THEREOF OF THE STATE OF TEXAS.
UNLESS  THE  CONTEXT  OTHERWISE  REQUIRES,  THE  USE  OF  TERMS  IN SINGULAR AND
MASCULINE  FORM  SHALL  INCLUDE  IN ALL INSTANCES SINGULAR AND PLURAL NUMBER AND
MASCULINE,  FEMININE  AND  NEUTER  GENDER.

     16.  SEVERABILITY. In the event any one or more of the provisions contained
in this Debenture or any future amendment hereto shall for any reason be held to
be invalid, illegal or unenforceable in any respect, such invalidity, illegality
or  unenforceability  shall  not affect any other provision of this Debenture or
such other agreement, and in lieu of each such invalid, illegal or unenforceable
provision  there  shall  be  added  automatically  as a part of this Debenture a
provision  as  similar  in  terms  to  such  invalid,  illegal  or unenforceable
provision  as  may  be  possible  and  be  valid,  legal  and  enforceable.

                                      -10-
<PAGE>
     17.  DEFINITIONS.

     17.1 "Holder" means a Person in whose name a Debenture is registered on the
Company's  books.

     17.2 "Indebtedness" means, without duplication, with respect to any Person,
(a)  all obligations of such Person (i) in respect of borrowed money (whether or
not  the  recourse of the lender is to the whole of the assets of such person or
only  to  a  portion  thereof),  (ii)  evidenced  by bonds, notes, debentures or
similar  instruments,  (iii) representing the balance deferred and unpaid of the
purchase price of any property or services (other than accounts payable or other
obligations  arising  in  the  ordinary  course  of business), (iv) evidenced by
bankers' acceptances or similar instruments issued or accepted by banks, (v) for
the  payment of money relating to a capitalized lease obligation under generally
accepted  accounting  principles as in effect in the United States of America as
of  the  Issue  Date, or (vi) evidenced by a letter of credit or a reimbursement
obligation  of  such  Person  with  respect to any letter of credit; (b) all net
obligations  of  such  Person  under  interest rate swap obligations and foreign
currency  hedges;  (c)  all  liabilities  of others of the kind described in the
preceding  clauses  (a)  or  (b)  that  such  Person  has guaranteed or that are
otherwise  its  legal  liability; (d) Indebtedness (as otherwise defined in this
definition)  of  another  Person  secured  by  lien on any asset of such Person,
whether  or  not such Indebtedness is assumed by such Person, the amount of such
obligations  being  deemed  to  be  the  lesser  of  (1) the full amount of such
obligations  so  secured,  and  (2)  the  fair  market  value  of such asset, as
determined  in  good  faith  by  the  Board  of  Directors of such Person, which
determination  shall  be  evidenced  by  a board resolution; and (e) any and all
deferrals,  renewals, extensions, refinancings and refundings (whether direct or
indirect)  of,  or amendments, modifications or supplements to, any liability of
the  kind  described  in any of the preceding clauses (a), (b), (c), (d) or this
clause  (e),  whether  or  not  between  or  among  the  same  parties.

     17.3  "Issue  Date"  means the date on which the Debenture is first issued.

     17.4  A  "Subsidiary"  means  (i)  a corporation a majority of whose voting
stock  is  at  the time, directly or indirectly, owned by the Company, by one or
more  subsidiaries of the Company or by the Company and one or more subsidiaries
of  the  Company, (ii) a partnership in which the Company or a subsidiary of the
Company  is,  at the date of determination, a general or limited partner of such
partnership,  but  only  if the Company or its subsidiary is entitled to receive
more  than  fifty  percent  (50%)  of  the  assets  of such partnership upon its
dissolution, or (iii) any other Person (other than a corporation or partnership)
in  which  the  Company,  directly  or  indirectly, at the date of determination
thereof,  has  (x)  at  least  a majority ownership interest or (y) the power to
elect  or direct the election of a majority of directors or other governing body
of  the  Company.

     18.  MISCELLANEOUS. Except as otherwise provided herein, the Company waives
demand,  diligence,  presentment  for  payment and protest, notice of extension,
dishonor,  maturity  and  protest.  Time  is  of the essence with respect to the
performance  of  each  and every covenant, condition, term and provision hereof.

                                      -11-
<PAGE>
     IN  WITNESS  WHEREOF,  this  Debenture  has  been issued on the 15th day of
February,  2005.

                                      BLUEGATE CORPORATION

                                      By  /s/  Manfred Sternberg
                                        ---------------------------------------
                                               Manfred Sternberg
                                               Chief Executive Officer

                                      -12-
<PAGE>
                              BLUEGATE CORPORATION

                 10% CONVERTIBLE DEBENTURE DUE NOVEMBER 1, 2005

                      NOTICE OF CONVERSION AND SUBSCRIPTION

               (To be completed and signed only upon a conversion
             of the Debenture into Common Stock in whole or in part)

TO:  BLUEGATE CORPORATION

     The  undersigned,  the Holder of the attached 10% Convertible Debenture Due
November  1, 2005 ("Debenture"), hereby irrevocably elects to exercise the right
to convert part or all of the outstanding principal balance and accrued Interest
on the Debenture into shares ("Shares") of the Company's common stock, par value
$.001  per  share,  and  thereby  purchase _______ Shares. The undersigned makes
payment  of $________for the Shares by converting and canceling the indebtedness
represented  by  the  Debenture.  The  undersigned  hereby  requests  that  the
Certificate(s) for such securities be issued in the name(s) and delivered to the
address(es)  as  follows:

Name:

Address:

Deliver to:

Address:

     If  the  foregoing  Notice  of  Conversion  and  Subscription evidences the
conversion of less than the entire principal amount of the Debenture and accrued
Interest thereon, please issue a new Debenture, of like tenor, for the remaining
principal  amount  of  the Debenture in the name(s), and deliver the same to the
address(es),  as  follows:

Name:

Address:

DATED:________________ ___, 2005.

_______________________________________________________________________________
(Name of Holder)

_______________________________________________________________________________
(Signature of Holder or Authorized Signatory)

_______________________________________________________________________________
(Social Security or Taxpayer Identification Number of Holder)

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