Document:

ESCROW AGREEMENT

     ESCROW  AGREEMENT  (this "Escrow Agreement") dated as of December 28, 2001,
                               ----------------
by  and  among  Amnis  Systems Inc., a Delaware corporation (the "Company"), the
                                                                  -------
investors  listed  on  Schedule  A attached hereto (the "Investors") and Bondy &
                       -----------                       ---------
Schloss  LLP,  as  escrow  agent  (the  "Escrow  Agent").
                                         -------------

                              W I T N E S S E T H:
                              --------------------

     WHEREAS,  pursuant to a Securities Purchase Agreement, dated as of December
28,  2001,  by and among the Company and the Investors (the "Securities Purchase
                                                             -------------------
Agreement"),  the  Company  and  the  Investors  desire  to  have  (i)  secured
---------
convertible  debentures  (the  "Debentures");  (ii) warrants (the "Warrants") to
purchase  shares of the Company's common stock, $0.0001 par value per share (the
"Common  Stock");  and  (iii)  shares  of  Common Stock representing 200% of the
 -------------
maximum number of shares of Common Stock (the "Escrow Share Minimum") underlying
                                               --------------------
the Debentures and the Warrants and any interest accrued and outstanding thereon
(collectively,  the  "Escrow  Shares"),  delivered  to the Escrow Agent to hold,
                      --------------
along  with  immediately  available funds for the purchase of the Debentures and
Warrants  (the "Escrow Funds"), and the Escrow Agent has agreed to receive, hold
                ------------
and  redeliver the Debentures, Warrants, Escrow Shares and the Escrow Funds, all
upon  the  terms  and  subject  to  the  conditions  hereinafter  set  forth;

     WHEREAS,  the  Securities  Purchase  Agreement contemplates that the Escrow
Funds  shall  be paid into escrow and the Debentures, Warrants and Escrow Shares
to  be  purchased  by the Investors shall be held in escrow and the Escrow Agent
has agreed to receive, hold and pay such Escrow Funds and to receive and deliver
the  Debentures,  Warrants  and Escrow Shares, upon the terms and subject to the
conditions  hereinafter  set  forth;  and

     WHEREAS,  the  Company  acknowledges  and agrees that this Escrow Agreement
shall  serve  as  irrevocable  authorization and direction by the Company to the
Escrow  Agent  to  receive,  hold,  and  ultimately  deliver  the  Escrow Funds,
Debentures,  Warrants  and  Escrow  Shares,  upon  the  terms and subject to the
conditions  of  this  Escrow  Agreement.

NOW,  THEREFORE,  in consideration of the mutual covenants herein contained, and
for  other good and valuable consideration, the receipt and sufficiency of which
is  hereby  acknowledged,  the  parties to this Escrow Agreement hereby agree as
follows:

     1.     Defined  Terms.  Capitalized  terms  used  and not otherwise defined
            --------------
herein  shall  have the meanings respectively assigned to them in the Securities
Purchase  Agreement.

     2.     Escrow  of  Debentures and Warrants.  The Investors shall deliver or
            -----------------------------------
cause  to  be  delivered  to  the  Escrow  Agent  the  Debentures,  Warrants and
applicable  Escrow  Funds  on the Closing Date.  On the Closing Date, the Escrow
Agent  shall  wire transfer the Escrow Funds in accordance with the Disbursement
of  Funds  memorandum.  With  respect  to  the  subsequent  investment,  on  the
Effective  Date,  the  Company  shall  deliver  the Additional Debentures to the
Escrow  Agent,  the Investors shall wire transfer the Escrow Funds in accordance

<PAGE>
with  the Disbursement of Funds memorandum.  Subject to the terms of this Escrow
Agreement  and  the Securities Purchase Agreement, on or before the tenth (10th)
business  day after the Effective Date, the Escrow Agent shall wire transfer the
Escrow  Funds  to the Company.  Prior to the wiring of the Escrow Funds for each
Closing,  the  Investors  shall  confirm to the Escrow Agent that the conditions
contained in Section 7 of the Securities Purchase Agreement have been either met
by  the  Company  or  waived  by  the  Investors.

     3.     Escrow  Shares.  On  the  Closing Date, the Company shall deliver or
            --------------
cause  to  be  delivered to the Escrow Agent the common stock share certificates
representing  the  Escrow Shares (the "Certificates"), registered in the name of
                                       ------------
the  Investors  (or  any nominee designated by Investors), free and clear of all
liens, claims, charges and encumbrances, representing 200% of the maximum number
of  shares  of  Common  Stock underlying the Debentures and the Warrants and any
interest accrued and outstanding thereon.  The Company shall maintain the Escrow
Share  Minimum  in the Escrow Account (as defined below) at all times throughout
the  term  of this Escrow Agreement.  If the number of Escrow Shares falls below
175%  of  the maximum number of shares of Common Stock underlying the Debentures
and  the  Warrants and any interest accrued and outstanding thereon, the Company
shall  replenish  the  Escrow  Account  with such number of additional shares to
maintain the Escrow Share Minimum (the "Replenishment Shares") by delivering the
                                        --------------------
Replenishment  Shares  to  the  Escrow Agent by the second (2nd) business day of
each  month.  Upon  conversion  of  the  Debentures  and/or upon exercise of the
Warrants,  the  Investors  shall  deliver  a copy of the duly executed notice of
exercise  or  notice  of  conversion,  as  the case may be, to the Escrow Agent.
Within one (1) business day after receipt of such notice, the Escrow Agent shall
deliver  one  or  more  Certificates  to  Interwest  Transfer Company, Inc., the
transfer  agent  for  the  Company  (the  "Transfer  Agent"), for removal of any
                                           ---------------
restrictive legends pursuant to the Irrevocable Transfer Agent Instructions, and
upon  receipt  of  such Certificates, shall cause same to be delivered to or for
the  benefit of the Investors pursuant to written instructions of the Investors.

     4.     Escrow  Period.  The  Certificates  delivered  to  the  Escrow Agent
            --------------
pursuant  to  this  Escrow Agreement shall be deposited for safekeeping with the
Escrow Agent (the "Escrow Account").  During the period beginning on the Closing
                   --------------
Date and continuing until all shares of Common Stock issuable upon conversion of
the  Debentures  and  exercise  of  the  Warrants  are  sold  pursuant  to  the
Registration  Statement  (as  defined in the Registration Rights Agreement) (the
"Escrow  Period"),  none  of  such Escrow Shares deposited in the Escrow Account
  -------------
shall  become the property of the Investors or any other entity or be subject to
the  debts  of  the  Investors  or any other entity except as expressly provided
herein,  and the Escrow Agent shall neither make nor permit any disbursements or
deliveries  from  the  Escrow  Account  except  as  expressly  provided  herein.
Notwithstanding  the  foregoing,  if  any  Escrow  Shares  remain  in the Escrow
Account,  all  such  Escrow Shares then remaining in the Escrow Account shall be
forwarded  to  the  Transfer Agent within five (5) business days thereafter upon
written  request  given  to  Escrow  Agent  by  the  Company.

     5.     Holding of Shares.  The Escrow Agent shall hold the Escrow Shares in
            -----------------
a  segregated  escrow  account  where  it  normally  holds  such  Escrow Shares.

     6.     Further  Assurances.  The Company and the Investors agree to do such
            -------------------
further  acts  and  to  execute  and  deliver  such  statements,  assignments,
agreements,  instruments  and  other documents as the Escrow Agent, from time to
time, may reasonably request in connection with the administration, maintenance,
enforcement  or  adjudication  of this Escrow Agreement in order (a) to give the
Escrow  Agent  confirmation  and assurance of the Escrow Agent's rights, powers,

                                      -2-
<PAGE>
privileges,  remedies  and  interests under this Escrow Agreement and applicable
law,  (b)  to  better enable the Escrow Agent to exercise any such right, power,
privilege,  remedy  or  interest, or (c) to otherwise effectuate the purpose and
the  terms  and  provisions  of  this  Escrow  Agreement,  each in such form and
substance  as  may  be  reasonably  acceptable  to  the  Escrow  Agent.

     7.     Conflicting  Demands.  If  conflicting  or adverse claims or demands
            --------------------
are  made  or  notices  served  upon the Escrow Agent with respect to the escrow
provided  for  herein, the Company and the Investors agree that the Escrow Agent
shall  refuse  to comply with any such claim or demand and withhold and stop all
further  performance of this escrow so long as such disagreement shall continue.
In so doing, the Escrow Agent shall not be or become liable for damages, losses,
costs,  expenses  or  interest to any person for its failure to comply with such
conflicting  or adverse demands.  The Escrow Agent shall be entitled to continue
to  so  refrain  and  refuse  to so act until such conflicting claims or demands
shall  have  been  finally  determined  by  a  court  or arbitrator of competent
jurisdiction  or  shall  have  been  settled by agreement of the parties to such
controversy,  in  which  case  the  Escrow  Agent shall be notified thereof in a
notice  signed  by such parties.  The Escrow Agent may also elect to commence an
interpleader  or other action for declaratory judgment for the purpose of having
the  respective  rights  of  the claimants adjudicated, and may deposit with the
court  the  Escrow  Shares  and the Escrow Funds held hereunder pursuant to this
Escrow Agreement; and if it so commences and deposits, the Escrow Agent shall be
relieved  and  discharged  from  any  further  duties and obligations under this
Escrow  Agreement.

     8.     Disputes.  Each  of  the  parties hereto hereby covenants and agrees
            --------
that the Federal or state courts located in the County of New York, State of New
York  shall have jurisdiction over any dispute with the Escrow Agent or relating
to  this  Escrow  Agreement.

     9.     Expenses of the Escrow Agent.  The Company agrees to pay any and all
            ----------------------------
out-of-pocket  costs and expenses up to $5,000 per year (excluding the costs and
expenses  incurred by the Escrow Agent in connection with the commencement of an
interpleader  pursuant  to  Section  7  hereof)  incurred by the Escrow Agent in
connection  with all waivers, releases, discharges, satisfactions, modifications
and  amendments  of this Escrow Agreement, the administration and holding of the
Escrow  Shares  and  the  investment  of  the Escrow Funds, and the enforcement,
protection and adjudication of the Escrow Agent's rights hereunder by the Escrow
Agent,  including,  without  limitation,  the out-of-pocket disbursements of the
Escrow  Agent itself and expenses and costs of other attorneys it may retain, if
any.  The  Company  shall be liable to the Escrow Agent for any expenses payable
by  the  Escrow  Agent.

     10.     Reliance  on  Documents  and  Experts.  The  Escrow  Agent shall be
             -------------------------------------
entitled  to  rely  upon any notice, consent, certificate, affidavit, statement,
paper,  document,  writing  or  communication  (which  to  the  extent permitted
hereunder  may  be  by  telegram,  cable,  telecopier,  or telephone) reasonably
believed by it to be genuine and to have been signed, sent or made by the proper
person  or  persons,  and  upon  opinions and advice of legal counsel (including
itself  or  counsel  for  any  party hereto), independent public accountants and
other  experts  selected  by  the  Escrow  Agent  and mutually acceptable to the
Company  and  the  Investors.

                                      -3-
<PAGE>
     11.     Status  of the Escrow Agent, Etc.  The Escrow Agent is acting under
             --------------------------------
this  Escrow  Agreement  as  a  stakeholder  only.  No term or provision of this
Escrow  Agreement is intended to create, nor shall any such term or provision be
deemed  to  have  created,  any  joint  venture,  partnership or attorney-client
relationship between or among the Escrow Agent and the Company or the Investors.
This Escrow Agreement shall not be deemed to prohibit or in any way restrict the
Escrow Agent's representation of the Investors, who may be advised by the Escrow
Agent on any and all matters pertaining to this Escrow Agreement.  To the extent
the  Investors  have  been represented by the Escrow Agent, each Investor hereby
waives  any  conflict  of  interest  and  irrevocably authorizes and directs the
Escrow  Agent  to  carry  out  the terms and provisions of this Escrow Agreement
fairly  as  to  all  parties,  without  regard  to  any  such representation and
irrespective  of  the impact upon such Investor.  The Escrow Agent's only duties
are  those expressly set forth in this Escrow Agreement, and the Company and the
Investors  authorize the Escrow Agent to perform those duties in accordance with
its  usual practices in holding funds of its own or those of other escrows.  The
Escrow  Agent  may  exercise  or  otherwise  enforce  any of its rights, powers,
privileges,  remedies  and  interests under this Escrow Agreement and applicable
law  or  perform any of its duties under this Escrow Agreement by or through its
partners,  employees,  attorneys,  agents  or  designees.

     12.     Exculpation.  The  Escrow  Agent  and  its  designees,  and  their
             -----------
respective  partners,  employees,  attorneys  and  agents,  shall  not incur any
liability  whatsoever  for the investment or disposition of the Escrow Shares or
the  Escrow Funds or the taking of any other action in accordance with the terms
and  provisions  of this Escrow Agreement, for any mistake or error in judgment,
for  compliance  with  any  applicable  law  or  any  attachment, order or other
directive  of any court or other authority (irrespective of any conflicting term
or  provision of this Escrow Agreement), or for any act or omission of any other
person  selected  with  reasonable  care  and  engaged  by  the  Escrow Agent in
connection  with  this  Escrow  Agreement (other than for such Escrow Agent's or
such  person's own acts or omissions breaching a duty owed to the claimant under
this Escrow Agreement and amounting to gross negligence or willful misconduct as
finally determined pursuant to applicable law by a governmental authority having
jurisdiction); and the Company and the Investors hereby waive any and all claims
and  actions  whatsoever  against  the Escrow Agent and its designees, and their
respective  partners, employees, attorneys and agents, arising out of or related
directly  or  indirectly  to  any  and  all of the foregoing acts, omissions and
circumstances.  Furthermore,  the  Escrow  Agent  and  its  designees, and their
respective  partners,  employees,  attorneys  and  agents,  shall  not incur any
liability (other than for a person's own acts or omissions breaching a duty owed
to the claimant under this Escrow Agreement and amounting to gross negligence or
willful  misconduct  as  finally  determined  pursuant  to  applicable  law by a
governmental authority having jurisdiction) for other acts and omissions arising
out  of  or  related  directly  or  indirectly to this Escrow Agreement; and the
Company  and the Investors hereby expressly waive any and all claims and actions
(other  than the Escrow Agent's or such person's own acts or omissions breaching
a  duty  owed  to  the  claimant  and  amounting  to gross negligence or willful
misconduct  as  finally  determined pursuant to applicable law by a governmental
authority  having  jurisdiction) against the Escrow Agent and its designees, and
their  respective  partners,  employees, attorneys and agents, arising out of or
related  directly  or indirectly to any and all of the foregoing acts, omissions
and  circumstances.

                                      -4-
<PAGE>
     13.     Indemnification.  The  Escrow  Agent  and  its designees, and their
             ---------------
respective  partners,  employees,  attorneys  and  agents, shall be indemnified,
reimbursed,  held harmless and, at the request of the Escrow Agent, defended, by
the  Company  from  and  against  any  and  all  claims, liabilities, losses and
expenses  (including, without limitation, the reasonable disbursements, expenses
and  fees  of their respective attorneys) that may be imposed upon, incurred by,
or  asserted  against  any  of  them,  arising  out  of  or  related directly or
indirectly  to  this  Escrow  Agreement or the Escrow Shares, except such as are
occasioned  by  the indemnified person's own acts and omissions breaching a duty
owed  to  the  claimant  under  this  Escrow  Agreement  and  amounting to gross
negligence  or  willful  misconduct as finally determined pursuant to applicable
law  by  a  governmental  authority  having  jurisdiction.

     14.     Notices.  Any  notice,  request,  demand  or  other  communication
             -------
permitted  or  required to be given hereunder shall be in writing, shall be sent
by  one  of  the following means to the addressee at the address set forth below
(or  at  such  other  address  as shall be designated hereunder by notice to the
other  parties  and persons receiving copies, effective upon actual receipt) and
shall  be  deemed  conclusively  to  have  been given: (a) upon hand delivery by
telecopy or facsimile at the address or number designated below (if delivered on
a  business  day  during  normal  business  hours  where  such  notice  is to be
received), or the first business day following such delivery (if delivered other
than  on  a business day during normal business hours where such notice is to be
received), (b) on the second (2nd) business day following the date of mailing by
express  courier  service, fully prepaid, addressed to such address, or (c) upon
actual  receipt  of  such  mailing,  whichever  shall  first  occur.

If to the Company:       Amnis  Systems  Inc.
                         3450 Hillview Avenue
                         Palo Alto, California 94304
                         Attention: Michael A. Liccardo, President and Chief
                         Financial Officer

                         Telecopier: 650-850-0200
                         Telephone: 650-354-8854

with  a  copy  to:       Leland, Parachini, Steinberg, Matzger, Melnick, LLP
                         333 Market Street, 27th Floor
                         San Francisco, California 94105
                         Attention: Edward V. Pollack, Esquire
                         Telecopier: 415-957-1800
                         Telephone:  415-974-1520

If  to any Investor:     at the address of such Investor set forth on Schedule A
                                                                      ----------
                         to this Escrow Agreement, with a copy to the Investor's
                         counsel as set forth on Schedule A or as specified in
                         writing by such Investor.

                                      -5-
<PAGE>
If to the Escrow Agent:  Bondy  &  Schloss  LLP
                         6 East 43rd Street
                         New York, NY 10017
                         Attention: Jeffrey A Rinde
                         Telecopier:: 212-972-1677
                         Telephone: 212-661-3535

     15.     Section  and  Other  Headings.  The  section  and  other  headings
             -----------------------------
contained in this Escrow Agreement are for convenience only, shall not be deemed
a  part  of  this  Escrow  Agreement  and  shall  not  affect  the  meaning  or
interpretation  of  this  Escrow  Agreement.

     16.     Governing  Law.  This  Escrow  Agreement  shall be governed by, and
             --------------
construed  and  enforced  in accordance with, the laws of the State of New York,
without regard to principles of conflicts of law.  The Company and the Investors
(i)  hereby irrevocably submit to the jurisdiction of the United States District
Court sitting in the Southern District of New York for the purposes of any suit,
action  or  proceeding  arising  out  of  or  relating  to this Agreement or the
Securities  Purchase Agreement and (ii) hereby waive, and agree not to assert in
any such suit, action or proceeding, any claim that it is not personally subject
to  the  jurisdiction  of  such  court,  that  the suit, action or proceeding is
brought  in  an  inconvenient  forum  or  that  the venue of the suit, action or
proceeding  is improper.  The Company and the Investors consent to process being
served  in any such suit, action or proceeding by mailing a copy thereof to such
party at the address in effect for notices to it under this Agreement and agrees
that  such  service  shall constitute good and sufficient service of process and
notice  thereof.  Nothing  in this Section 16 shall affect or limit any right to
serve  process  in  any  other  manner  permitted  by  law.

     17.     Counterparts.  This Escrow Agreement may be executed by the parties
             ------------
hereto  in  separate  counterparts, each of which when so executed and delivered
shall be an original but all such counterparts shall together constitute one and
the  same  agreement.

     18.    Resignation  of Escrow Agent.  The Escrow Agent may, at any time, at
            ----------------------------
its  option,  elect  to  resign  its  duties  as  Escrow Agent under this Escrow
Agreement by providing notice thereof to the Company and the Investors.  In such
event,  the  Escrow  Agent  shall deposit the Escrow Shares and the Escrow Funds
with a successor independent escrow agent to be appointed by (a) the Company and
the  Investors  within  thirty  (30)  days  following  the  receipt of notice of
resignation  from  the  Escrow Agent, or (b) the Escrow Agent if the Company and
the  Investors  shall  have  not  agreed  on a successor escrow agent within the
aforesaid 30-day period, upon which appointment and delivery of the Escrow Funds
and  the  Escrow  Shares,  the  Escrow  Agent  shall be released of and from all
liability  under  this  Escrow  Agreement.

     19.     Successors  and  Assigns;  Assignment.  Whenever  in  this  Escrow
             -------------------------------------
Agreement  reference  is  made  to  any party, such reference shall be deemed to
include  the  successors,  assigns and legal representatives of such party, and,
without  limiting  the  generality  of  the  foregoing,  all  representations,
warranties,  covenants  and other agreements made by or on behalf of the Company
and  the  Investors  in  this Escrow Agreement shall inure to the benefit of any
successor  escrow  agent hereunder; provided, however, that nothing herein shall
                                    --------  -------
be  deemed  to authorize or permit the Company or the Investors to assign any of
their  rights  or  obligations  hereunder to any other person (whether or not an
affiliate  of  the Company or the Investors) without the written consent of each
of  the  other parties nor to authorize or permit the Escrow Agent to assign any
of  its  duties  or  obligations hereunder except as provided in this Section 19
hereof.

                                      -6-
<PAGE>
     20.     No  Third  Party Rights.  The representations, warranties and other
             -----------------------
terms  and  provisions of this Escrow Agreement are for the exclusive benefit of
the  parties hereto, and no other person, including the creditors of the Company
or  the  Investors, shall have any right or claim against any party by reason of
any  of  those terms and provisions or be entitled to enforce any of those terms
and  provisions  against  any  party.

     21.     No  Waiver  by  Action,  Etc.  Any waiver or consent respecting any
             ----------------------------
representation,  warranty,  covenant  or  other term or provision of this Escrow
Agreement  shall be effective only in the specific instance and for the specific
purpose  for which given and shall not be deemed, regardless of frequency given,
to  be  a  further  or  continuing waiver or consent.  The failure or delay of a
party  at any time or times to require performance of, or to exercise its rights
with  respect  to,  any  representation,  warranty,  covenant  or  other term or
provision  of this Escrow Agreement in any manner (except as otherwise expressly
provided herein) shall affect its right at a later time to enforce any such term
or  provision.  No  notice  to  or demand on the Company or the Investors in any
case  shall  entitle  such party to any other or further notice or demand in the
same,  similar or other circumstances.  All rights, powers, privileges, remedies
and  interests of the parties under this Escrow Agreement are cumulative and not
alternatives,  and  they  are  in  addition  to  and  shall not limit (except as
otherwise  expressly  provided herein) any other right, power, privilege, remedy
or  interest  of  the  parties  under  this  Escrow Agreement or applicable law.

     22.     Modification,  Amendment,  Etc.  Each  and  every  modification and
             ------------------------------
amendment  of this Escrow Agreement shall be in writing and signed by all of the
parties  hereto, and each and every waiver of, or consent to any departure from,
any  covenant,  representation,  warranty  or  other  provision  of  this Escrow
Agreement  shall  be  in writing and signed by the party granting such waiver or
consent.

     23.     Entire  Agreement.  This  Escrow  Agreement  contains  the  entire
             -----------------
agreement  of  the  parties  with  respect  to  the matters contained herein and
supersedes  all  prior  representations,  agreements and understandings, oral or
otherwise,  among  the  parties  with  respect  to the matters contained herein.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -7-
<PAGE>
IN  WITNESS  WHEREOF,  the parties hereto have executed this Escrow Agreement on
the  date  first  written  above.

                                        AMNIS  SYSTEMS  INC.

                                        By: /s/  Michael  A.  Liccardo
                                        ------------------------------------
                                        Name:  Michael  A.  Liccardo
                                        Title: C.E.O.

                                        BONDY & SCHLOSS LLP, as escrow agent

                                        By: /s/  Jeffrey  A  Rinde
                                        ------------------------------------
                                        Name:  Jeffrey  A  Rinde
                                        Title:

                                        BRISTOL INVESTMENT FUND, LTD.

                                        By: /s/  Diana  Derycz  Kessler
                                        ------------------------------------
                                               Diana  Derycz  Kessler
                                               Director

                                      -8-
<PAGE>
                                   Schedule A
                                   ----------

Names  and  Addresses  of  Investors
------------------------------------

Bristol  Investment  Fund,  Ltd.
Caledonian  House
Jennett  Street
George  Town
Grand  Cayman,  Cayman  Islands
Telephone:  441-298-5067
Facsimile:  441-295-2305

with a copy to:

Bristol  DLP,  LLC
Investment  Manager
6363  Sunset  Blvd.,  Fifth  Floor
Hollywood,  California  90028
Attention:  Amy  Wang,  Esq.
Telephone:  323-769-2852
Facsimile:  323-468-8307
Email:  amy@bristolcompanies.net

Bondy  &  Schloss  LLP
6  East  43rd  Street
New  York,  NY  10017
Attention:  Jeffrey  A  Rinde
Telephone:  212-661-3535
Facsimile:  212-972-1677

                                      -9-
<PAGE>[Letterhead of Amnis Systems Inc.]

                                December 28, 2001

Kurtis  Hughes
Interwest Transfer Company, Inc.
1981 East Murray Holladay Road
Suite  100
Salt Lake City, Utah 84117

Ladies and Gentlemen:

          AMNIS  SYSTEMS  INC.,  a  Delaware  corporation  (the  "Company"), and
certain  investors  (the  "Investors")  have  entered into a Securities Purchase
Agreement  dated  as  of  December  28, 2001 (the "Agreement") providing for the
issuance  of  12%  Convertible  Debentures  in the aggregate principal amount of
$1,000,000  (the  "Debentures") and warrants to purchase 1,000,000 shares of the
Company's  Common  Stock  (the  "Warrants"),  for the aggregate consideration of
$1,000,000.

     You  are  hereby  irrevocably  authorized  and  instructed  to  reserve  a
sufficient  number  of  shares of Common Stock (initially, 12,400,000 shares) of
the  Company  for issuance upon full conversion of the Debentures (including the
exercise  of  the  Investment  Options  described  therein)  and exercise of the
Warrants  in  accordance  with  the  respective  terms  thereof.  You are hereby
further  irrevocably authorized and directed to issue the shares of Common Stock
so  reserved  upon  your  receipt  from  the  Company  of a notice of conversion
("Notice  of  Conversion")  or  exercise  agreement  ("Exercise Agreement") duly
executed  by  an  Investor  in  accordance  with  the  terms of such notices and
agreements  and  the  Debentures  and  Warrants,  as  applicable.

     A  copy of a Form of Debenture and Form of Warrant is attached hereto.  You
should  familiarize  yourself  with  your  issuance and delivery obligations, as
Transfer Agent, contained therein.  The shares to be issued are to be registered
in the names of the registered holder of the securities submitted for conversion
or  exercise.

     So  long as you have previously received confirmation from the Company that
the  shares  have  been  registered  under the 1933 Act or otherwise may be sold
pursuant  to  Rule 144 without any restriction as to the number of securities as
of  a  particular  date that can then be immediately sold, such shares should be
transferred,  at  the  option  of  the  holder  of the Debentures or Warrants as
specified  in  the  Notice  of  Conversion or Exercise Agreement, as applicable,
either  (i)  electronically  by crediting the account of a Prime Broker with the
Depository  Trust Company through its Deposit Withdrawal Agent Commission system
or  (ii)  in  certificated  form  without  any  legend  which would restrict the
transfer  of  the  shares,  and you should remove all stop-transfer instructions
relating  to such shares.  Until such time as you are advised by Company counsel

<PAGE>
that the shares have been registered under the 1933 Act or otherwise may be sold
pursuant  to  Rule 144 without any restriction as to the number of securities as
of  a  particular  date  that  can  then  be  immediately  sold,  you are hereby
instructed  to  place  the  following  legends  on  the  certificates:

     THE  SECURITIES  REPRESENTED  BY  THIS  CERTIFICATE  HAVE  NOT  BEEN
     REGISTERED  UNDER  THE  SECURITIES  ACT  OF  1933,  AS  AMENDED.  THE
     SECURITIES  MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF
     AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER SAID ACT,
     OR  AN  OPINION  OF COUNSEL IN FORM, SUBSTANCE AND SCOPE CUSTOMARY FOR
     OPINIONS  OF  COUNSEL IN COMPARABLE TRANSACTIONS, THAT REGISTRATION IS
     NOT  REQUIRED  OR  UNLESS  SOLD  PURSUANT  TO RULE 144 UNDER SAID ACT.

The  legend  set  forth above shall be removed and you are instructed to issue a
certificate  without  such  legend  to the holder of any shares upon which it is
stamped,  if, unless otherwise required by applicable state securities laws, (a)
such  shares  are  registered for sale under an effective registration statement
filed  under  the 1933 Act or otherwise may be sold pursuant to Rule 144 without
any  restriction as to the number of securities as of a particular date that can
then  be  immediately sold, (b) such holder provides the Company with an opinion
of  counsel,  in  form, substance and scope customary for opinions of counsel in
comparable  transactions,  to  the effect that a public sale or transfer of such
security  may  be  made without registration under the 1933 Act and such sale or
transfer  is  effected  or  (c) such holder provides the Company with reasonable
assurances  that  such  shares  can  be  sold  pursuant  to  Rule  144.

     The  Investors are intended to be and are third party beneficiaries hereof,
and  no  amendment  or  modification to the instructions set forth herein may be
made  without  the  consent  of  such  Investors.

                                           Very  truly  yours,

                                           AMNIS  SYSTEMS  INC.

                                           /s/ Michael  A.  Liccardo
                                           -------------------------------------
                                           Michael  A.  Liccardo
                                           President and Chief Executive Officer

Acknowledged:

-------------------------------
Transfer  Agent

                                        2
<PAGE>

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