Document:

NEITHER THESE  SECURITIES  NOR THE  SECURITIES  INTO WHICH THESE  SECURITIES ARE
EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE  COMMISSION OR
THE  SECURITIES  COMMISSION  OF ANY STATE IN  RELIANCE  UPON AN  EXEMPTION  FROM
REGISTRATION  UNDER THE  SECURITIES  ACT OF 1933,  AS AMENDED  (THE  "SECURITIES
ACT"),  AND,  ACCORDINGLY,  MAY NOT BE OFFERED  OR SOLD  EXCEPT  PURSUANT  TO AN
EFFECTIVE  REGISTRATION  STATEMENT  UNDER THE  SECURITIES  ACT OR PURSUANT TO AN
AVAILABLE  EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE  REGISTRATION
REQUIREMENTS  OF THE  SECURITIES  ACT AND IN ACCORDANCE  WITH  APPLICABLE  STATE
SECURITIES  LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH  EFFECT,  THE  SUBSTANCE  OF WHICH SHALL BE  REASONABLY  ACCEPTABLE  TO THE
COMPANY.  THESE  SECURITIES AND THE  SECURITIES  ISSUABLE UPON EXERCISE OF THESE
SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER
LOAN SECURED BY SUCH SECURITIES.

                          COMMON STOCK PURCHASE WARRANT

                  To Purchase 300,000 Shares of Common Stock of

                         SUNBURST ACQUISITIONS IV, INC.

            THIS COMMON STOCK PURCHASE  WARRANT (the "Warrant")  certifies that,
for value received,  T.R.  Winston & Company,  LLC (the "Holder"),  is entitled,
upon the terms and subject to the  limitations  on exercise  and the  conditions
hereinafter  set forth,  at any time on or after the date hereof  (the  "Initial
Exercise  Date")  and on or  prior  to  the  close  of  business  on  the  fifth
anniversary  of the  Initial  Exercise  Date (the  "Termination  Date")  but not
thereafter, to subscribe for and purchase from Sunburst Acquisitions IV, Inc., a
Colorado  corporation  (the  "Company"),  up to  300,000  shares  (the  "Warrant
Shares") of Common Stock, no par value, of the Company (the "Common Stock"). The
purchase  price of one share of Common Stock (the  "Exercise  Price") under this
Warrant shall be $0.01, subject to adjustment hereunder.

            1. Title to Warrant.  Prior to the  Termination  Date and subject to
compliance with applicable laws and Section 7 of this Warrant,  this Warrant and
all rights  hereunder  are  transferable,  in whole or in part, at the office or
agency of the  Company by the Holder in person or by duly  authorized  attorney,
upon surrender of this Warrant  together with the Assignment Form annexed hereto
properly  endorsed.  The transferee shall sign an investment  letter in form and
substance reasonably satisfactory to the Company.

            2.  Authorization of Warrant Shares.  The Company covenants that all
Warrant  Shares  which may be issued upon the  exercise of the  purchase  rights
represented  by  this  Warrant  will,  upon  exercise  of  the  purchase  rights
represented by this Warrant, be duly authorized,  validly issued, fully paid and
nonassessable and free from all taxes, liens and charges in respect of the issue
thereof (other than taxes in respect of any transfer occurring contemporaneously
with such issue).

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<PAGE>

            3. Exercise of Warrant.

                  (a)  Exercise  of the  purchase  rights  represented  by  this
      Warrant may be made at any time or times on or after the Initial  Exercise
      Date and on or before the Termination Date by delivery to the Company of a
      duly executed facsimile copy of the Notice of Exercise Form annexed hereto
      (or such  other  office or agency of the  Company as it may  designate  by
      notice in writing to the  registered  Holder at the address of such Holder
      appearing  on the  books  of the  Company);  provided,  however,  within 5
      Trading  Days of the date said  Notice of  Exercise  is  delivered  to the
      Company, the Holder shall have surrendered this Warrant to the Company and
      the Company shall have received payment of the aggregate Exercise Price of
      the shares thereby  purchased by wire transfer or cashier's check drawn on
      a United States bank. Certificates for shares purchased hereunder shall be
      delivered  to the Holder  within 3 Trading  Days from the  delivery to the
      Company of the Notice of  Exercise  Form,  surrender  of this  Warrant and
      payment of the aggregate Exercise Price as set forth above ("Warrant Share
      Delivery  Date").  This Warrant shall be deemed to have been  exercised on
      the date the Exercise Price is received by the Company. The Warrant Shares
      shall be deemed to have been  issued,  and  Holder or any other  person so
      designated  to be named therein shall be deemed to have become a holder of
      record of such  shares for all  purposes,  as of the date the  Warrant has
      been  exercised  by payment to the Company of the  Exercise  Price and all
      taxes  required  to be paid by the Holder,  if any,  pursuant to Section 5
      prior to the issuance of such shares, have been paid. If the Company fails
      to deliver to the Holder a certificate or  certificates  representing  the
      Warrant Shares pursuant to this Section 3(a) by the Warrant Share Delivery
      Date,  then the Holder will have the right to rescind  such  exercise.  In
      addition to any other rights available to the Holder, if the Company fails
      to deliver to the Holder a certificate or  certificates  representing  the
      Warrant  Shares  pursuant to an  exercise  on or before the Warrant  Share
      Delivery Date, and if after such date the Holder is required by its broker
      to purchase (in an open market  transaction or otherwise) shares of Common
      Stock to deliver in  satisfaction  of a sale by the Holder of the  Warrant
      Shares  which the  Holder  anticipated  receiving  upon such  exercise  (a
      "Buy-In"), then the Company shall (1) pay in cash to the Holder the amount
      by which  (x) the  Holder's  total  purchase  price  (including  brokerage
      commissions,  if any) for the shares of Common Stock so purchased  exceeds
      (y) the amount  obtained by  multiplying  (A) the number of Warrant Shares
      that the Company was required to deliver to the Holder in connection  with
      the  exercise at issue times (B) the price at which the sell order  giving
      rise to such purchase  obligation  was executed,  and (2) at the option of
      the Holder,  either  reinstate  the portion of the Warrant and  equivalent
      number of  Warrant  Shares  for which  such  exercise  was not  honored or
      deliver to the Holder the number of shares of Common Stock that would have
      been issued had the Company timely complied with its exercise and delivery
      obligations  hereunder.  For example, if the Holder purchases Common Stock
      having a total purchase price of $11,000 to cover a Buy-In with respect to
      an attempted  exercise of shares of Common  Stock with an  aggregate  sale
      price giving rise to such purchase obligation of $10,000, under clause (1)
      of the immediately preceding sentence the Company shall be required to pay
      the Holder  $1,000.  The Holder shall provide the Company  written  notice
      indicating  the  amounts  payable to the Holder in respect of the  Buy-In,
      together  with  applicable  confirmations  and other  evidence  reasonably
      requested by the Company.  Nothing  herein shall limit a Holder's right to
      pursue any other remedies  available to it hereunder,  at law or in equity
      including,  without  limitation,  a decree of specific  performance and/or
      injunctive  relief with respect to the Company's failure to timely deliver
      certificates  representing  shares of Common  Stock upon  exercise  of the
      Warrant as required pursuant to the terms hereof.

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<PAGE>

                  (b) If this Warrant  shall have been  exercised  in part,  the
      Company shall,  at the time of delivery of the certificate or certificates
      representing  Warrant Shares,  deliver to Holder a new Warrant  evidencing
      the rights of Holder to purchase the unpurchased Warrant Shares called for
      by this  Warrant,  which  new  Warrant  shall  in all  other  respects  be
      identical with this Warrant.

                  (c) The  Holder  shall  not have the  right  to  exercise  any
      portion of this  Warrant,  pursuant to Section 3(a) or  otherwise,  to the
      extent that after  giving  effect to such  issuance  after  exercise,  the
      Holder  (together  with  the  Holder's  affiliates),  as set  forth on the
      applicable Notice of Exercise,  would  beneficially own in excess of 4.99%
      of the number of shares of the Common Stock outstanding  immediately after
      giving effect to such  issuance.  For purposes of the foregoing  sentence,
      the number of shares of Common Stock  beneficially owned by the Holder and
      its affiliates shall include the number of shares of Common Stock issuable
      upon exercise of this Warrant with respect to which the  determination  of
      such  sentence  is being made,  but shall  exclude the number of shares of
      Common Stock which would be issuable  upon (A) exercise of the  remaining,
      nonexercised  portion of this Warrant  beneficially owned by the Holder or
      any of its affiliates and (B) exercise or conversion of the unexercised or
      nonconverted  portion of any other  securities of the Company  (including,
      without  limitation,  any  other  Debentures  or  Warrants)  subject  to a
      limitation on conversion or exercise analogous to the limitation contained
      herein  beneficially owned by the Holder or any of its affiliates.  Except
      as set forth in the preceding sentence, for purposes of this Section 3(c),
      beneficial  ownership shall be calculated in accordance with Section 13(d)
      of the Exchange Act, it being  acknowledged  by Holder that the Company is
      not  representing  to Holder that such  calculation is in compliance  with
      Section 13(d) of the Exchange Act and Holder is solely responsible for any
      schedules required to be filed in accordance therewith. To the extent that
      the limitation  contained in this Section 3(c) applies,  the determination
      of whether this Warrant is  exercisable  (in relation to other  securities
      owned by the Holder) and of which a portion of this Warrant is exercisable
      shall be in the sole  discretion of such Holder,  and the  submission of a
      Notice of Exercise  shall be deemed to be such Holder's  determination  of
      whether this Warrant is exercisable (in relation to other securities owned
      by such Holder) and of which  portion of this Warrant is  exercisable,  in
      each case subject to such aggregate percentage limitation, and the Company
      shall  have no  obligation  to  verify or  confirm  the  accuracy  of such
      determination.  For  purposes of this Section  3(c),  in  determining  the
      number of outstanding  shares of Common Stock,  the Holder may rely on the
      number  of  outstanding  shares of Common  Stock as  reflected  in (x) the
      Company's most recent Form 10-QSB or Form 10-KSB,  as the case may be, (y)
      a more recent public  announcement  by the Company or (z) any other notice
      by the Company or the Company's Transfer Agent setting forth the number of
      shares of Common  Stock  outstanding.  Upon the written or oral request of
      the Holder,  the Company shall within two Trading Days confirm  orally and
      in  writing  to the  Holder  the  number of shares  of Common  Stock  then
      outstanding. In any case, the number of outstanding shares of Common Stock
      shall be determined  after giving effect to the  conversion or exercise of
      securities of the Company,  including  this Warrant,  by the Holder or its
      affiliates since the date as of which such number of outstanding shares of
      Common Stock was reported.

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<PAGE>

                  (d) If at any time after one year from the date of issuance of
      this Warrant there is no effective  registration statement registering the
      resale of the Warrant Shares by the Holder,  then this Warrant may also be
      exercised  at such  time by means of a  "cashless  exercise"  in which the
      Holder  shall be  entitled  to  receive a  certificate  for the  number of
      Warrant Shares equal to the quotient  obtained by dividing  [(A-B) (X)] by
      (A), where:

                (A)  =  the VWAP on the Trading Day  immediately  preceding  the
                        date of such election;

                (B)  =  the Exercise Price of this Warrant, as adjusted; and

                (X)  =  the number of Warrant  Shares  issuable upon exercise of
                        this  Warrant  in  accordance  with  the  terms  of this
                        Warrant  by  means  of a  cash  exercise  rather  than a
                        cashless exercise.

            4. No  Fractional  Shares or Scrip.  No  fractional  shares or scrip
representing  fractional  shares  shall  be  issued  upon the  exercise  of this
Warrant.  As to any fraction of a share which Holder would otherwise be entitled
to purchase  upon such  exercise,  the Company  shall pay a cash  adjustment  in
respect of such final fraction in an amount equal to such fraction multiplied by
the Exercise Price.

            5. Charges, Taxes and Expenses. Issuance of certificates for Warrant
Shares shall be made without  charge to the Holder for any issue or transfer tax
or other incidental expense in respect of the issuance of such certificate,  all
of which taxes and expenses shall be paid by the Company,  and such certificates
shall be  issued  in the name of the  Holder  or in such name or names as may be
directed by the Holder;  provided,  however,  that in the event certificates for
Warrant  Shares are to be issued in a name  other  than the name of the  Holder,
this  Warrant  when  surrendered  for  exercise  shall  be  accompanied  by  the
Assignment Form attached hereto duly executed by the Holder; and the Company may
require, as a condition thereto, the payment of a sum sufficient to reimburse it
for any transfer tax incidental thereto.

            6.  Closing of Books.  The  Company  will not close its  stockholder
books or records in any  manner  which  prevents  the  timely  exercise  of this
Warrant, pursuant to the terms hereof.

            7. Transfer, Division and Combination.

                  (a) Subject to compliance with any applicable  securities laws
      and the conditions  set forth in Sections 1 and 7(e) hereof,  this Warrant
      and all  rights  hereunder  are  transferable,  in whole or in part,  upon
      surrender of this Warrant at the principal office of the Company, together
      with a  written  assignment  of this  Warrant  substantially  in the  form
      attached  hereto duly  executed by the Holder or its agent or attorney and
      funds sufficient to pay any transfer taxes payable upon the making of such
      transfer.  Upon such surrender and, if required, such payment, the Company
      shall  execute  and  deliver a new  Warrant or Warrants in the name of the
      assignee or assignees and in the denomination or  denominations  specified
      in such  instrument of  assignment,  and shall issue to the assignor a new
      Warrant  evidencing the portion of this Warrant not so assigned,  and this
      Warrant shall promptly be cancelled.  A Warrant, if properly assigned, may
      be exercised by a new holder for the  purchase of Warrant  Shares  without
      having a new Warrant issued.

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<PAGE>

                  (b)  This  Warrant  may be  divided  or  combined  with  other
      Warrants upon presentation  hereof at the aforesaid office of the Company,
      together with a written notice  specifying the names and  denominations in
      which new Warrants are to be issued,  signed by the Holder or its agent or
      attorney.  Subject to  compliance  with Section  7(a),  as to any transfer
      which may be involved in such division or  combination,  the Company shall
      execute and deliver a new Warrant or Warrants in exchange  for the Warrant
      or Warrants to be divided or combined in accordance with such notice.

                  (c) The Company  shall  prepare,  issue and deliver at its own
      expense (other than transfer taxes) the new Warrant or Warrants under this
      Section 7.

                  (d) The Company agrees to maintain,  at its aforesaid  office,
      books  for  the  registration  and the  registration  of  transfer  of the
      Warrants.

                  (e) If,  at the  time of the  surrender  of  this  Warrant  in
      connection with any transfer of this Warrant, the transfer of this Warrant
      shall not be registered  pursuant to an effective  registration  statement
      under the Securities Act and under applicable state securities or blue sky
      laws,  the Company may require,  as a condition of allowing  such transfer
      (i) that the Holder or  transferee  of this  Warrant,  as the case may be,
      furnish to the Company a written  opinion of counsel  (which opinion shall
      be in form,  substance  and scope  customary  for  opinions  of counsel in
      comparable  transactions)  to the effect  that such  transfer  may be made
      without  registration  under the Securities Act and under applicable state
      securities or blue sky laws,  (ii) that the holder or  transferee  execute
      and  deliver to the  Company an  investment  letter in form and  substance
      acceptable to the Company and (iii) that the  transferee be an "accredited
      investor" as defined in Rule 501(a)(1),  (a)(2), (a)(3), (a)(7), or (a)(8)
      promulgated under the Securities Act or a qualified institutional buyer as
      defined in Rule 144A(a) under the Securities Act.

            8. No Rights as Shareholder  until  Exercise.  This Warrant does not
entitle the Holder to any voting rights or other rights as a shareholder  of the
Company prior to the exercise hereof. Upon the surrender of this Warrant and the
payment of the aggregate  Exercise  Price (or by means of a cashless  exercise),
the  Warrant  Shares  so  purchased  shall be and be deemed to be issued to such
Holder as the record  owner of such  shares as of the close of  business  on the
later of the date of such surrender or payment.

            9. Loss,  Theft,  Destruction or Mutilation of Warrant.  The Company
covenants that upon receipt by the Company of evidence  reasonably  satisfactory
to it of the loss, theft, destruction or mutilation of this Warrant or any stock
certificate  relating  to the  Warrant  Shares,  and in case of  loss,  theft or
destruction,  of indemnity or security reasonably  satisfactory to it (which, in
the case of the  Warrant,  shall not include the posting of any bond),  and upon
surrender and cancellation of such Warrant or stock  certificate,  if mutilated,
the Company  will make and deliver a new  Warrant or stock  certificate  of like
tenor  and  dated  as of such  cancellation,  in lieu of such  Warrant  or stock
certificate.

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<PAGE>

            10. Saturdays,  Sundays, Holidays, etc. If the last or appointed day
for the taking of any action or the  expiration of any right required or granted
herein shall be a Saturday,  Sunday or a legal holiday,  then such action may be
taken or such right may be exercised on the next  succeeding day not a Saturday,
Sunday or legal holiday.

            11. Adjustments of Exercise Price and Number of Warrant Shares.

                  (a) Stock  Splits,  etc.  The  number  and kind of  securities
      purchasable upon the exercise of this Warrant and the Exercise Price shall
      be subject to  adjustment  from time to time upon the  happening of any of
      the  following.  In case the Company shall (i) pay a dividend in shares of
      Common Stock or make a  distribution  in shares of Common Stock to holders
      of its outstanding  Common Stock, (ii) subdivide its outstanding shares of
      Common  Stock  into  a  greater  number  of  shares,   (iii)  combine  its
      outstanding  shares of  Common  Stock  into a smaller  number of shares of
      Common  Stock,  or  (iv)  issue  any  shares  of its  capital  stock  in a
      reclassification  of the Common Stock,  then the number of Warrant  Shares
      purchasable upon exercise of this Warrant  immediately prior thereto shall
      be adjusted  so that the Holder  shall be entitled to receive the kind and
      number of Warrant Shares or other securities of the Company which it would
      have  owned  or have  been  entitled  to  receive  had such  Warrant  been
      exercised in advance  thereof.  Upon each such  adjustment of the kind and
      number of Warrant  Shares or other  securities  of the  Company  which are
      purchasable hereunder, the Holder shall thereafter be entitled to purchase
      the  number of  Warrant  Shares or other  securities  resulting  from such
      adjustment  at an  Exercise  Price  per  Warrant  Share or other  security
      obtained by multiplying the Exercise Price in effect  immediately prior to
      such  adjustment  by the number of  Warrant  Shares  purchasable  pursuant
      hereto  immediately prior to such adjustment and dividing by the number of
      Warrant  Shares or other  securities  of the Company that are  purchasable
      pursuant  hereto  immediately  after such  adjustment.  An adjustment made
      pursuant to this paragraph shall become  effective  immediately  after the
      effective  date of such event  retroactive to the record date, if any, for
      such event.

                  (b) Anti-Dilution Provisions.  During the Exercise Period, the
      Exercise  Price  shall  be  subject  to  adjustment  from  time to time as
      provided in this Section  11(b).  In the event that any  adjustment of the
      Exercise Price as required  herein  results in a fraction of a cent,  such
      Exercise Price shall be rounded up or down to the nearest cent.

                  (i) Adjustment of Exercise  Price. If and whenever the Company
            issues or sells, or in accordance with Section  11(b)(ii)  hereof is
            deemed to have  issued or sold,  any  shares of Common  Stock for an
            effective  consideration  per share of less  than the then  Exercise
            Price, or for no  consideration  (such lower price,  the "Base Share
            Price" and such  issuances  collectively,  a  "Dilutive  Issuance"),
            then,  the  Exercise  Price shall be reduced to equal the Base Share
            Price. Such adjustment shall be made whenever shares of Common Stock
            or Common Stock Equivalents are issued.

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<PAGE>

                  (ii) Effect on Exercise Price of Certain Events.  For purposes
            of  determining  the adjusted  Exercise  Price under  Section  11(b)
            hereof, the following will be applicable:

                              (A) Issuance of Rights or Options.  If the Company
                  in any  manner  issues  or  grants  any  warrants,  rights  or
                  options, whether or not immediately exercisable,  to subscribe
                  for or to purchase  Common Stock or Common  Stock  Equivalents
                  (such warrants, rights and options to purchase Common Stock or
                  Common  Stock  Equivalents  are  hereinafter  referred  to  as
                  "Options") and the effective  price per share for which Common
                  Stock is issuable  upon the  exercise of such  Options is less
                  than the Exercise Price ("Below Base Price Options"), then the
                  maximum  total number of shares of Common Stock  issuable upon
                  the  exercise of all such Below Base Price  Options  (assuming
                  full   exercise,   conversion  or  exchange  of  Common  Stock
                  Equivalents,  if  applicable)  will,  as of  the  date  of the
                  issuance or grant of such Below Base Price Options,  be deemed
                  to be  outstanding  and to have  been  issued  and sold by the
                  Company for such price per share and the maximum consideration
                  payable  to the  Company  upon such  exercise  (assuming  full
                  exercise,  conversion or exchange of Common Stock Equivalents,
                  if  applicable)  will be deemed to have been  received  by the
                  Company.   For  purposes  of  the  preceding   sentence,   the
                  "effective  price per share for which Common Stock is issuable
                  upon  the  exercise  of such  Below  Base  Price  Options"  is
                  determined by dividing (i) the total amount,  if any, received
                  or receivable by the Company as consideration for the issuance
                  or  granting  of all such Below Base Price  Options,  plus the
                  minimum aggregate amount of additional consideration,  if any,
                  payable to the  Company  upon the  exercise  of all such Below
                  Base  Price  Options,  plus,  in  the  case  of  Common  Stock
                  Equivalents  issuable  upon the  exercise  of such  Below Base
                  Price  Options,  the minimum  aggregate  amount of  additional
                  consideration   payable  upon  the  exercise,   conversion  or
                  exchange  thereof at the time such  Common  Stock  Equivalents
                  first become exercisable, convertible or exchangeable, by (ii)
                  the maximum  total number of shares of Common  Stock  issuable
                  upon  the  exercise  of all  such  Below  Base  Price  Options
                  (assuming  full  conversion  of Common Stock  Equivalents,  if
                  applicable).  No further adjustment to the Exercise Price will
                  be made upon the actual issuance of such Common Stock upon the
                  exercise  of  such  Below  Base  Price  Options  or  upon  the
                  exercise,  conversion or exchange of Common Stock  Equivalents
                  issuable upon exercise of such Below Base Price Options.

                              (B) Issuance of Common Stock  Equivalents.  If the
                  Company  in any  manner  issues  or  sells  any  Common  Stock
                  Equivalents,  whether or not  immediately  convertible  (other
                  than where the same are issuable upon the exercise of Options)
                  and the  effective  price per share for which  Common Stock is
                  issuable  upon such  exercise,  conversion or exchange is less
                  than the  Exercise  Price,  then the maximum  total  number of
                  shares of Common Stock issuable upon the exercise,  conversion
                  or exchange of all such Common Stock  Equivalents  will, as of
                  the date of the issuance of such Common Stock Equivalents,  be
                  deemed to be  outstanding  and to have been issued and sold by
                  the   Company  for  such  price  per  share  and  the  maximum
                  consideration  payable  to  the  Company  upon  such  exercise
                  (assuming  full  exercise,  conversion  or  exchange of Common
                  Stock Equivalents,  if applicable) will be deemed to have been
                  received by the  Company.  For the  purposes of the  preceding
                  sentence,  the  "effective  price per  share for which  Common
                  Stock is issuable upon such exercise,  conversion or exchange"
                  is  determined  by  dividing  (i) the  total  amount,  if any,
                  received or receivable by the Company as consideration for the
                  issuance or sale of all such Common  Stock  Equivalents,  plus
                  the minimum aggregate amount of additional  consideration,  if
                  any,  payable to the Company upon the exercise,  conversion or
                  exchange  thereof at the time such  Common  Stock  Equivalents
                  first become exercisable, convertible or exchangeable, by (ii)
                  the maximum  total number of shares of Common  Stock  issuable
                  upon the  exercise,  conversion or exchange of all such Common
                  Stock Equivalents. No further adjustment to the Exercise Price
                  will be made upon the actual  issuance  of such  Common  Stock
                  upon  exercise,  conversion  or exchange of such Common  Stock
                  Equivalents.

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<PAGE>

                              (C) Change in Option Price or Conversion  Rate. If
                  there is a change at any time in (i) the amount of  additional
                  consideration  payable to the Company upon the exercise of any
                  Options; (ii) the amount of additional consideration,  if any,
                  payable  to the  Company  upon  the  exercise,  conversion  or
                  exchange of any Common Stock Equivalents; or (iii) the rate at
                  which any Common Stock  Equivalents  are  convertible  into or
                  exchangeable  for Common Stock (in each such case,  other than
                  under or by reason of provisions  designed to protect  against
                  dilution),  the  Exercise  Price in effect at the time of such
                  change will be  readjusted  to the Exercise  Price which would
                  have been in effect  at such time had such  Options  or Common
                  Stock Equivalents still outstanding  provided for such changed
                  additional  consideration  or changed  conversion rate, as the
                  case may be, at the time initially granted, issued or sold.

                              (D) Calculation of Consideration  Received. If any
                  Common Stock,  Options or Common Stock Equivalents are issued,
                  granted or sold for cash, the consideration  received therefor
                  for purposes of this  Warrant  will be the amount  received by
                  the  Company   therefor,   before   deduction  of   reasonable
                  commissions,  underwriting  discounts or  allowances  or other
                  reasonable  expenses  paid  or  incurred  by  the  Company  in
                  connection  with  such  issuance,  grant or sale.  In case any
                  Common Stock,  Options or Common Stock  Equivalents are issued
                  or sold  for a  consideration  part or all of  which  shall be
                  other than cash,  the amount of the  consideration  other than
                  cash  received by the Company will be the fair market value of
                  such consideration,  except where such consideration  consists
                  of  securities,  in which  case the  amount  of  consideration
                  received by the Company will be the fair market value (closing
                  bid price,  if traded on any market) thereof as of the date of
                  receipt.  In case any Common  Stock,  Options or Common  Stock
                  Equivalents  are  issued  in  connection  with any  merger  or
                  consolidation   in  which  the   Company   is  the   surviving
                  corporation,  the  amount of  consideration  therefor  will be
                  deemed to be the fair market  value of such portion of the net
                  assets and  business of the  non-surviving  corporation  as is
                  attributable  to such Common  Stock,  Options or Common  Stock
                  Equivalents,  as the case may be. The fair market value of any
                  consideration other than cash or securities will be determined
                  in good  faith by an  investment  banker or other  appropriate
                  expert of  national  reputation  selected  by the  Company and
                  reasonably  acceptable to the holder hereof, with the costs of
                  such appraisal to be borne by the Company.

                                       8
<PAGE>

                              (E) Failure to comply with  provisions of Warrant.
                  In the event the Company fails to comply with any provision of
                  this Warrant, the Exercise Price shall be reduced by 50%.

                  (iii) Offerings of Other Property to Common Stock Holders.  If
            the  Company,  at any time  prior  to the  Termination  Date,  shall
            distribute to all holders of Common Stock (and not to Holders of the
            Warrants)  evidences  of its  indebtedness  or  assets  or rights or
            warrants to subscribe  for or purchase  any security  other than the
            Common Stock (which shall be subject to Section  11(b)(i)),  then in
            each such case the Exercise  Price shall be adjusted by  multiplying
            the Exercise  Price in effect  immediately  prior to the record date
            fixed for  determination  of  stockholders  entitled to receive such
            distribution  by a fraction  of which the  denominator  shall be the
            VWAP determined as of the record date mentioned  above, and of which
            the  numerator  shall be such VWAP on such record date less the then
            per share fair  market  value at such  record date of the portion of
            such assets or evidence of indebtedness so distributed applicable to
            one outstanding share of the Common Stock as determined by the Board
            of Directors in good faith. In either case the adjustments  shall be
            described  in a statement  provided to the Holders of the portion of
            assets  or  evidences  of   indebtedness   so  distributed  or  such
            subscription  rights  applicable to one share of Common Stock.  Such
            adjustment shall be made whenever any such  distribution is made and
            shall become effective  immediately  after the record date mentioned
            above.

                  (iv) Minimum  Adjustment of Exercise  Price.  No adjustment of
            the Exercise Price shall be made in an amount of less than 1% of the
            Exercise  Price in effect at the time such  adjustment  is otherwise
            required to be made, but any such lesser adjustment shall be carried
            forward  and  shall be made at the time and  together  with the next
            subsequent  adjustment  which,  together  with  any  adjustments  so
            carried  forward,  shall amount to not less than 1% of such Exercise
            Price.

                                       9
<PAGE>

            12.  Reorganization,   Reclassification,  Merger,  Consolidation  or
Disposition  of  Assets.  In case the  Company  shall  reorganize  its  capital,
reclassify  its  capital  stock,  consolidate  or  merge  with or  into  another
corporation  (where the Company is not the surviving  corporation or where there
is a change in or distribution with respect to the Common Stock of the Company),
or sell,  transfer or otherwise  dispose of its property,  assets or business to
another  corporation  and,  pursuant  to  the  terms  of  such   reorganization,
reclassification,  merger,  consolidation  or disposition  of assets,  shares of
common stock of the successor or acquiring  corporation,  or any cash, shares of
stock or other  securities  or  property  of any  nature  whatsoever  (including
warrants or other  subscription or purchase rights) in addition to or in lieu of
common stock of the successor or acquiring  corporation ("Other Property"),  are
to be received by or  distributed to the holders of Common Stock of the Company,
then the Holder shall have the right thereafter to receive, at the option of the
Holder, (a) upon exercise of this Warrant,  the number of shares of Common Stock
of the  successor  or  acquiring  corporation  or of the  Company,  if it is the
surviving corporation, and Other Property receivable upon or as a result of such
reorganization, reclassification, merger, consolidation or disposition of assets
by a Holder of the number of shares of Common  Stock for which  this  Warrant is
exercisable  immediately  prior to such  event or (b) cash equal to the value of
this Warrant as determined in accordance with the  Black-Scholes  option pricing
formula.  In  case  of  any  such  reorganization,   reclassification,   merger,
consolidation or disposition of assets,  the successor or acquiring  corporation
(if  other  than  the  Company)  shall  expressly  assume  the due and  punctual
observance  and  performance  of each and every  covenant and  condition of this
Warrant to be performed and observed by the Company and all the  obligations and
liabilities   hereunder,   subject  to  such  modifications  as  may  be  deemed
appropriate (as determined in good faith by resolution of the Board of Directors
of the Company) in order to provide for  adjustments of Warrant Shares for which
this Warrant is exercisable  which shall be as nearly  equivalent as practicable
to the adjustments provided for in this Section 12. For purposes of this Section
12, "common stock of the successor or acquiring corporation" shall include stock
of such  corporation  of any class which is not  preferred  as to  dividends  or
assets  over any  other  class of stock  of such  corporation  and  which is not
subject to  redemption  and shall also include any  evidences  of  indebtedness,
shares of stock or other  securities  which are convertible into or exchangeable
for any such stock,  either  immediately or upon the arrival of a specified date
or the  happening  of a  specified  event and any  warrants  or other  rights to
subscribe  for or purchase  any such stock.  The  foregoing  provisions  of this
Section   12   shall    similarly    apply   to   successive    reorganizations,
reclassifications, mergers, consolidations or disposition of assets.

            13. Voluntary Adjustment by the Company. The Company may at any time
during the term of this Warrant  reduce the then current  Exercise  Price to any
amount and for any period of time deemed  appropriate  by the Board of Directors
of the Company.

            14. Notice of  Adjustment.  Whenever the number of Warrant Shares or
number or kind of securities or other property  purchasable upon the exercise of
this Warrant or the Exercise Price is adjusted, as herein provided,  the Company
shall give notice thereof to the Holder,  which notice shall state the number of
Warrant Shares (and other securities or property)  purchasable upon the exercise
of this  Warrant  and the  Exercise  Price of such  Warrant  Shares  (and  other
securities or property) after such  adjustment,  setting forth a brief statement
of the facts  requiring  such  adjustment  and setting forth the  computation by
which such adjustment was made.

                                       10
<PAGE>

            15. Notice of Corporate Action. If at any time:

                  (a) the  Company  shall  take a record of the  holders  of its
      Common  Stock for the purpose of  entitling  them to receive a dividend or
      other  distribution,  or  any  right  to  subscribe  for or  purchase  any
      evidences  of its  indebtedness,  any  shares of stock of any class or any
      other securities or property, or to receive any other right, or

                  (b) there shall be any capital  reorganization of the Company,
      any  reclassification  or  recapitalization  of the  capital  stock of the
      Company or any  consolidation  or merger of the Company with, or any sale,
      transfer or other  disposition of all or  substantially  all the property,
      assets or business of the Company to, another corporation or,

                  (c) there shall be a  voluntary  or  involuntary  dissolution,
      liquidation or winding up of the Company;

then, in any one or more of such cases,  the Company shall give to Holder (i) at
least 20 days' prior written  notice of the date on which a record date shall be
selected for such dividend,  distribution or right or for determining  rights to
vote  in  respect  of  any  such   reorganization,   reclassification,   merger,
consolidation, sale, transfer, disposition,  liquidation or winding up, and (ii)
in the case of any such reorganization, reclassification, merger, consolidation,
sale, transfer, disposition, dissolution, liquidation or winding up, at least 20
days'  prior  written  notice of the date when the same shall take  place.  Such
notice in accordance  with the foregoing  clause also shall specify (i) the date
on which  any such  record  is to be taken  for the  purpose  of such  dividend,
distribution  or right,  the date on which the holders of Common  Stock shall be
entitled  to any such  dividend,  distribution  or  right,  and the  amount  and
character  thereof,  and  (ii)  the  date  on  which  any  such  reorganization,
reclassification,    merger,   consolidation,   sale,   transfer,   disposition,
dissolution,  liquidation  or winding  up is to take place and the time,  if any
such  time is to be fixed,  as of which the  holders  of Common  Stock  shall be
entitled to exchange  their  Warrant  Shares for  securities  or other  property
deliverable upon such disposition,  dissolution, liquidation or winding up. Each
such written  notice shall be  sufficiently  given if addressed to Holder at the
last address of Holder  appearing  on the books of the Company and  delivered in
accordance with Section 17(d).

            16. Authorized  Shares. The Company covenants that during the period
the Warrant is  outstanding,  it will reserve from its  authorized  and unissued
Common  Stock a  sufficient  number of shares to provide for the issuance of the
Warrant Shares upon the exercise of any purchase rights under this Warrant.  The
Company  further  covenants  that its issuance of this Warrant shall  constitute
full authority to its officers who are charged with the duty of executing  stock
certificates  to execute and issue the  necessary  certificates  for the Warrant
Shares upon the exercise of the purchase rights under this Warrant.  The Company
will take all such  reasonable  action as may be  necessary  to assure that such
Warrant  Shares  may be issued  as  provided  herein  without  violation  of any
applicable law or regulation,  or of any requirements of the Trading Market upon
which the Common Stock may be listed.

                                       11
<PAGE>

                  Except  and to the  extent as waived  or  consented  to by the
Holder,  the Company  shall not by any action,  including,  without  limitation,
amending  its  certificate  of  incorporation  or  through  any  reorganization,
transfer  of  assets,  consolidation,  merger,  dissolution,  issue  or  sale of
securities or any other voluntary action,  avoid or seek to avoid the observance
or  performance  of any of the terms of this  Warrant,  but will at all times in
good faith assist in the carrying out of all such terms and in the taking of all
such actions as may be necessary or  appropriate to protect the rights of Holder
as set forth in this Warrant against impairment. Without limiting the generality
of the foregoing, the Company will (a) not increase the par value of any Warrant
Shares above the amount payable therefor upon such exercise immediately prior to
such  increase  in par value,  (b) take all such action as may be  necessary  or
appropriate  in order that the Company may validly and legally  issue fully paid
and nonassessable  Warrant Shares upon the exercise of this Warrant, and (c) use
commercially reasonable efforts to obtain all such authorizations, exemptions or
consents from any public regulatory body having  jurisdiction  thereof as may be
necessary to enable the Company to perform its obligations under this Warrant.

                  Before  taking any action which would result in an  adjustment
in the number of Warrant

            Shares for which  this  Warrant is  exercisable  or in the  Exercise
Price, the Company shall obtain all such  authorizations or exemptions  thereof,
or consents  thereto,  as may be necessary  from any public  regulatory  body or
bodies having jurisdiction thereof.

            17. Registration Rights. If the Company at any time proposes for any
reason to register its restricted common stock under the Securities Act of 1933,
as amended (the "Act"),  it shall include in such registration all of the Common
Stock issued  pursuant to this Warrant on the same terms and  conditions  as the
securities  otherwise being registered in such registration and shall afford the
Holder with an opportunity to review such  registration  statement at least five
(5) business days prior to filing such registration statement.

            18. Miscellaneous.

                        (a)   Jurisdiction.   All   questions   concerning   the
      construction,  validity,  enforcement and  interpretation  of this Warrant
      shall be determined  in accordance  with the internal laws of the State of
      New York,  without  regard to the  principles of conflicts of law thereof.
      Each   party   agrees   that  all   legal   proceedings   concerning   the
      interpretations,  enforcement and defense of the transactions contemplated
      by this Warrant  (whether brought against a party hereto or its respective
      affiliates, directors, officers, shareholders,  employees or agents) shall
      be commenced  exclusively  in the state and federal  courts sitting in the
      City of New York. Each party hereby  irrevocably  submits to the exclusive
      jurisdiction  of the state and federal  courts  sitting in the City of New
      York,  borough of Manhattan for the adjudication of any dispute  hereunder
      or in connection  herewith or with any transaction  contemplated hereby or
      discussed herein, and hereby irrevocably  waives, and agrees not to assert
      in any suit,  action or  proceeding,  any claim that it is not  personally
      subject to the jurisdiction of any such court,  that such suit,  action or
      proceeding is improper or  inconvenient  venue for such  proceeding.  Each
      party hereby  irrevocably  waives personal service of process and consents
      to process being served in any such suit,  action or proceeding by mailing
      a copy  thereof via  registered  or certified  mail or overnight  delivery
      (with  evidence  of  delivery)  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  contained herein shall be deemed to limit in any way any right to
      serve process in any manner permitted by law. The parties hereby waive all
      rights to a trial by jury.  If either  party  shall  commence an action or
      proceeding to enforce any provisions of the  Transaction  Documents,  then
      the prevailing  party in such action or proceeding  shall be reimbursed by
      the other  party for its  attorneys'  fees and  other  costs and  expenses
      incurred  with the  investigation,  preparation  and  prosecution  of such
      action or proceeding.

                                       12
<PAGE>

                  (b)  Restrictions.  The Holder  acknowledges  that the Warrant
      Shares acquired upon the exercise of this Warrant, if not registered, will
      have  restrictions  upon resale  imposed by state and  federal  securities
      laws.

                  (c) Nonwaiver and Expenses.  No course of dealing or any delay
      or failure to exercise  any right  hereunder  on the part of Holder  shall
      operate as a waiver of such right or otherwise  prejudice Holder's rights,
      powers or remedies,  notwithstanding all rights hereunder terminate on the
      Termination  Date. If the Company  willfully and knowingly fails to comply
      with any provision of this Warrant,  which results in any material damages
      to the Holder,  the Company  shall pay to Holder such  amounts as shall be
      sufficient to cover any costs and expenses including,  but not limited to,
      reasonable  attorneys'  fees,  including  those of appellate  proceedings,
      incurred by Holder in  collecting  any amounts due  pursuant  hereto or in
      otherwise enforcing any of its rights, powers or remedies hereunder.

                  (d) Notices. Any notice, request or other document required or
      permitted to be given or  delivered to the Holder by the Company  shall be
      delivered by facsimile to the attention of Terry Fields at (604) 643-7498,
      or by mail to 103 - 20120 64th Avenue Langley, B.C., Canada V2Y 1M8.

                  (e)  Limitation  of  Liability.  No provision  hereof,  in the
      absence of any  affirmative  action by Holder to exercise  this Warrant or
      purchase  Warrant  Shares,  and no  enumeration  herein  of the  rights or
      privileges  of Holder,  shall give rise to any liability of Holder for the
      purchase  price of any Common  Stock or as a  stockholder  of the Company,
      whether  such  liability is asserted by the Company or by creditors of the
      Company.

                  (f)  Remedies.  Holder,  in  addition  to  being  entitled  to
      exercise all rights granted by law, including recovery of damages, will be
      entitled to specific  performance  of its rights under this  Warrant.  The
      Company  agrees that monetary  damages would not be adequate  compensation
      for any loss  incurred  by reason of a breach by it of the  provisions  of
      this  Warrant  and  hereby  agrees to waive the  defense in any action for
      specific performance that a remedy at law would be adequate.

                  (g) Successors and Assigns.  Subject to applicable  securities
      laws, this Warrant and the rights and obligations  evidenced  hereby shall
      inure to the benefit of and be binding upon the  successors of the Company
      and the successors and permitted assigns of Holder. The provisions of this
      Warrant are  intended  to be for the  benefit of all Holders  from time to
      time of this Warrant and shall be enforceable by any such Holder or holder
      of Warrant Shares.

                                       13
<PAGE>

                  (h) Amendment.  This Warrant may be modified or amended or the
      provisions  hereof waived with the written  consent of the Company and the
      Holder.

                  (i) Severability.  Wherever  possible,  each provision of this
      Warrant shall be  interpreted  in such manner as to be effective and valid
      under  applicable  law,  but if any  provision  of this  Warrant  shall be
      prohibited by or invalid under  applicable  law, such  provision  shall be
      ineffective  to the  extent of such  prohibition  or  invalidity,  without
      invalidating the remainder of such provisions or the remaining  provisions
      of this Warrant.

                  (j)  Headings.  The headings  used in this Warrant are for the
      convenience of reference only and shall not, for any purpose,  be deemed a
      part of this Warrant.

                              ********************

                                       14
<PAGE>

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

Dated: May 3, 2004

                                        SUNBURST ACQUISITIONS IV, INC.

                                        By: ____________________________________
                                            Name:
                                            Title:

                                       15
<PAGE>

                               NOTICE OF EXERCISE

TO: SUNBURST ACQUISITIONS IV, INC.

            (1) The  undersigned  hereby  elects to  purchase  ________  Warrant
Shares of the Company  pursuant to the terms of the  attached  Warrant  (only if
exercised in full),  and tenders herewith payment of the exercise price in full,
together with all applicable transfer taxes, if any.

            (2) Payment shall take the form of (check applicable box):

                  [ ] in lawful money of the United States; or

                  [ ] the  cancellation  of such number of Warrant  Shares as is
                  necessary,  in  accordance  with  the  formula  set  forth  in
                  subsection  3(d), to exercise this Warrant with respect to the
                  maximum number of Warrant Shares  purchasable  pursuant to the
                  cashless exercise procedure set forth in subsection 3(d).

            (3) Please issue a certificate  or  certificates  representing  said
Warrant  Shares  in the  name of the  undersigned  or in such  other  name as is
specified below:

                  ________________________________________

The Warrant Shares shall be delivered to the following:

                  ________________________________________

                  ________________________________________

                  ________________________________________

            (4) Accredited Investor. The undersigned is an "accredited investor"
as defined in  Regulation D  promulgated  under the  Securities  Act of 1933, as
amended.

                                     [PURCHASER]

                                     By: _______________________________________
                                         Name:
                                         Title:

                                     Dated: ____________________________________
<PAGE>

                                 ASSIGNMENT FORM

                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

            FOR VALUE RECEIVED,  the foregoing  Warrant and all rights evidenced
thereby are hereby assigned to

_______________________________________________ whose address is

_________________________________________________________________.

                                     Dated:  ______________, _______

                  Holder's Signature: ______________________________

                  Holder's Address:_________________________________

Signature Guaranteed:  _____________________________________________

NOTE: The signature to this  Assignment Form must correspond with the name as it
appears on the face of the Warrant,  without  alteration or  enlargement  or any
change whatsoever,  and must be guaranteed by a bank or trust company.  Officers
of corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing Warrant.THIS TRANSACTION FEE AGREEMENT is made as of the 22nd day of April, 2004.

BETWEEN:

            SUNBURST ACQUISITIONS IV INC.
            103-20120 64th Ave.
            Langley, British Columbia
            CANADA V2Y1M8
            (the "Company")

OF THE FIRST PART

AND:

            T.R. WINSTON & COMPANY, LLC
            1999 Ave. of the Stars
            Los Angeles, CA 90067
            (the "Broker")

OF THE SECOND PART

W H E R E A S:

      A. The Company has entered into agreements with respect to the acquisition
of interests in mineral properties in Mexico;

      B. The Broker is a licensed broker-dealer with the National Association of
Securities Dealers;

      C. The Broker  introduced the Company to the  individuals  responsible for
finding the mineral  properties  and securing  such mineral  properties  for the
Company (such individuals to be called the "Mineral  Investor"),  and the Broker
assisted the Company with follow up transactions;

      D. The Company  wishes to reward the Broker for its services in the manner
hereinafter set forth.

            NOW, THEREFORE, in consideration of the mutual covenants,  promises,
conditions,  warranties and  representations  hereinafter set forth, the parties
hereto agree as follows:

            1. The  Company  agrees to  compensate  the Finder as  follows:  the
option to  purchase  three  million  (3,000,000)  shares of common  stock at the
purchase price of one penny ($0.01) (the "Shares").  Such option agreement terms
are in the Option Agreement attached hereto as Exhibit A and incorporated herein
as part of this Agreement.

            2. The Shares shall carry piggy-back registration rights and as such
Company is required to include the Shares in any registration statement filed by
the Company for the  registration  of any shares of common stock in the Company.
Notwithstanding,  upon  demand by the holder of the Shares to the  Company,  the
Shares shall be registered pursuant to an effective  registration statement duly
filed with the U.S. Securities and Exchange Commission, including a registration
on Form S-8.

                                       1
<PAGE>

            3. The parties  hereto,  and each of them,  covenant  and agree that
each of them shall and will upon  reasonable  request by the other party,  make,
do,  execute or cause to be made,  done or executed  all such  further and other
lawful acts, deeds, things,  devices and assurances whatsoever for the better or
more  perfect  and  absolute  performance  of the terms and  conditions  of this
Agreement.

            4. By execution  hereof,  the Company  acknowledges  that the Broker
does not provide  investment  advice or  financial  planning  services.  In that
regard,  the  Broker  is not  registered  as an  investment  adviser  under  the
Investment  Advisers Act of 1940, as amended,  and cannot therefore  provide any
advice regarding the desirability or value of purchasing,  selling,  transacting
in, investing in, or holding any security. Rather, the Broker's services will be
limited  to those  properly  provided  by a  licensed  broker-dealer.  Broker is
registered with the NASD as an "Introducing Broker/Dealer".

            5. The Company  hereby  agrees to  indemnify  and hold  harmless the
Broker, its managers, members, agents and employees (collectively referred to as
the Broker for  purposes of this Section 6) from and against any and all claims,
actions,  suits,   proceedings  (including  those  of  shareholders),   damages,
liabilities  and  expenses as incurred  by any of them  (including  the fees and
expenses of counsel)  which are related to or arise out of any actions  taken or
omitted to be taken (including any untrue statements made or omitted to be made)
by the Company or any actions taken or omitted to be taken by the Broker (except
in the  case of  gross  negligence  or  willful  misconduct  on the part of such
Broker)  in  connection  with  the  transactions  contemplated  by the  Purchase
Agreement or otherwise  related to or arising out of the Broker's  activities on
behalf of the  Company.  The Company  shall  reimburse  Broker for all  expenses
(including  the fees  and  expenses  of  counsel)  incurred  by such  Broker  in
connection with  investigating,  preparing or defending any such claim,  action,
suit  or  proceeding,   including  in  connection  with  pending  or  threatened
litigation to which Broker is a party.

            6. The Company and the Broker  acknowledge that Diana Derycz Kessler
serves as the registered  representative  of the Broker that is overseeing  this
transaction,  and that Diana  Derycz-Kessler also has an interest in the Company
by virtue of the fact that her  husband  Paul  Kessler is a  shareholder  in the
Company.  Paul  Kessler  has filed a Form  13(g)  disclosing  his own  ownership
interest in the Company.

            7. This Agreement  shall enure to the benefit of and be binding upon
the parties hereto and their respective  heirs,  administrators,  successors and
assigns.

            8. This  Agreement  shall be enforced,  governed by and construed in
accordance  with the laws of the State of New York applicable to agreements made
and to be performed  entirely within such State. In the event that any provision
of this Agreement is invalid or  unenforceable  under any applicable  statute or
rule of law, then such provision shall be deemed  inoperative to the extent that
it may  conflict  therewith  and shall be deemed  modified to conform  with such
statute  or rule of law.  Any  provision  hereof  which  may  prove  invalid  or
unenforceable  under any law shall not affect the validity or  enforceability of
any other  provision  hereof.  The parties hereto hereby submit to the exclusive
jurisdiction  of the  United  States  Federal  Courts  located  in New York with
respect  to any  dispute  arising  under  this  Agreement  or  the  transactions
contemplated  hereby.  The party which does not  prevail in any dispute  arising
under this Agreement shall be responsible  for all fees and expenses,  including
attorneys'  fees,  incurred  by the  prevailing  party in  connection  with such
dispute.

            9. This Agreement consists of a total of 3 pages. This Agreement may
be signed in any number of  counterparts  and the  combination of the same shall
constitute a binding  agreement.  A signed copy of this  Agreement  received via
facsimile  shall be deemed an  original  signature  of a party for  purposes  of
making this Agreement a binding agreement.

                                       2
<PAGE>

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

                                        SUNBURST ACQUISITIONS IV INC.

                                        By:
                                           -------------------------------------
                                           Name:  Terry Fields
                                           Title: President

                                        T.R. WINSTON & COMPANY, LLC

                                        By:
                                           -------------------------------------

                                       3
<PAGE>

                                   EXHIBIT 'A'

                      NON-QUALIFIED STOCK OPTION AGREEMENT

           This Agreement is made as of the ____th day of April, 2004

BETWEEN:    SUNBURST ACQUISITIONS IV INC.
            103-20120 64th Ave.
            Langley, British Columbia
            CANADA V2Y1M8

                      hereinafter referred to as "Company"

AND:        T.R. WINSTON & COMPANY, LLC
            1999 Ave. of the Stars
            Los Angeles, CA 90067
            United States

                      hereinafter referred to as "Optionee"

WHEREAS,  the Board of Directors of the Company (the "Board of  Directors")  has
authorized the granting to Optionee, for services to be rendered by Optionee as,
in  accordance  with the terms of a Finder's  Agreement  ("Finder's  Agreement")
between  the Company  and  Optionee  entered  into on even date  herewith,  of a
non-qualified  stock  option to  purchase  the number of shares of common  stock
("Common  Stock") of the Company  specified  in  Paragraph 1 hereof at the price
specified  therein,  such  option  to be for the term and  upon  the  terms  and
conditions hereinafter stated in this Option Agreement.

NOW THEREFORE,  in  consideration of the premises and of the undertakings of the
Parties hereto contained herein, it is hereby agreed:

1.    NUMBER OF SHARES: OPTION PRICE

      Pursuant to said  action of the Board of  Directors,  the  Company  hereby
      grants  to  Optionee,  in  consideration  of  consulting  services  to  be
      performed  for the  benefit  of the  Company,  the  option  ("Option")  to
      purchase  up to Three  Million  (3,000,000)  shares  ("Option  Shares") of
      Common  Stock of the  Company,  at the  exercise  price equal to one penny
      ($0.01) (the "Exercise Price").

      Notwithstanding  anything in this Option Agreement to the contrary,  in no
      event will the  Optionee be  entitled  to exercise  the Option to purchase
      Option  shares  in  excess  of such  number  of  shares  of  Common  Stock
      beneficially  owned by the Optionee and its affiliates  (other than shares
      of Common  Stock  which  may be  deemed  beneficially  owned  through  the
      ownership of the  unexercised  Warrants and the unexercised or unconverted
      portion of any other securities of the Company, subject to a limitation on
      conversion or exercise)  that would result in beneficial  ownership by the
      Holder and its affiliates of more than 4.9% of the  outstanding  shares of
      Common  Stock.  For  purposes  of  the  immediately   preceding  sentence,
      beneficial ownership is determined in accordance with Section 13(d) of the
      Securities  Exchange  Act  of  1934,  as  amended,  and  Regulation  13D-G
      thereunder.

                                       4
<PAGE>

2.    TERM

      This  option  will  expire five (5) years from the date of signing of this
      Option Agreement.

3.    SHARES SUBJECT TO EXERCISE

      The options are immediately exercisable and remain subject to exercise for
      the term  specified in Section 2,  regardless  of the  termination  of the
      Finder's Agreement.

4.    METHOD AND TIME OF EXERCISE

      The Option may be  exercised  by written  notice  delivered to the Company
      stating  the  number of shares  with  respect to which the Option is being
      exercised  together with a check made payable to the Company in the amount
      of the  purchase  price of the  shares.  Not less than one  hundred  (100)
      shares may be purchased at any one time unless the number purchased is the
      total number  purchasable  under the Option at the time. Only whole shares
      may be  purchased.  The Company  must carry out any and all acts to ensure
      that the Company and its transfer agent duly and properly issue the shares
      underlying the options to Optionee.

5.    EXERCISE ON TERMINATION

      This  Option  will  not  terminate  as a  result  of  the  termination  of
      Optionee's  services as a  consultant  to the Company or as a result of an
      early termination of the Finder's Agreement by Company.

6.    TRANSFERABILITY

      This Option may not be assigned or transferred  except,  (i) by will or by
      the laws of descent and distribution, or (ii) with consent of the Company.

7.    OPTIONEE NOT A SHAREHOLDER

      Optionee has no rights as a  shareholder  with respect to the Common Stock
      of the Company covered by the Option until the date of issuance of a stock
      certificate or stock  certificates to him upon exercise of the Option.  No
      adjustment will be made for dividends or other rights for which the record
      date is prior to the date  such  stock  certificate  or  certificates  are
      issued.

8.    REGISTRATION RIGHTS --PIGGY BACK AND DEMAND

      Optionee  represents  and agrees  that,  upon  Optionee's  exercise of the
      Option in whole or part,  unless there is in effect at that time under the
      Securities Act of 1933 a registration  statement -- relating to the shares
      issued to him, he will acquire the shares  issuable  upon exercise of this
      Option for the purpose of  investment  and not with a view to their resale
      or further distribution.

      The Shares shall carry piggy-back  registration rights and as such Company
      is required to include the Shares in any  registration  statement filed by
      the  Company  for the  registration  of any shares of common  stock in the
      Company.  Notwithstanding,  upon demand by the holder of the Shares to the
      Company,   the  Shares  shall  be  registered  pursuant  to  an  effective
      registration  statement  duly filed with the U.S.  Securities and Exchange
      Commission, including a registration on Form S-8.

                                       5
<PAGE>

9.    REPRESENTATION.

      Company  represents  that it has carried out any and all acts necessary to
      effect the issuance of this Agreement.

10.   NOTICES

      All notices to the parties may be sent at the addresses and numbers listed
      above,  or to such other address and fax number as either may designate to
      the other in writing. A notice will be deemed to be duly given if and when
      enclosed  in a  properly  addressed  sealed  envelope  deposited,  postage
      prepaid and  followed by  facsimile  to the  addressee.  In lieu of giving
      notice by mail as aforesaid,  written  notices under this Agreement may be
      given by personal  delivery to the Optionee or to the Company (as the case
      may be), or by a recognized courier.

11.   ADJUSTMENTS

      If there is any change in the  capitalization  of the Company affecting in
      any manner the number or kind of outstanding shares of Common Stock of the
      Company,  whether by stock  dividend,  stock  split,  reclassification  or
      recapitalization  of such  stock,  or because  the  Company  has merged or
      consolidated with one or more other  corporations (and provided the Option
      does not thereby terminate pursuant to Section 2 hereof),  then the number
      and kind of shares  then  subject  to the  Option and the price to be paid
      therefore will be appropriately adjusted by the Company; provided however,
      that in no event will any such  adjustment  result in the Company's  being
      required to sell or issue any fractional  shares. Any such adjustment will
      be made without change in the aggregate  purchase price  applicable to the
      unexercised  portion of the Option, but with an appropriate  adjustment to
      the price of each Share or other unit of security covered by this Option.

12.   CESSATION OF CORPORATE EXISTENCE

      Notwithstanding any other provision of this Option,  under the dissolution
      or liquidation of the Company, the reorganization, merger or consolidation
      of the  Company  with one or more  corporations  as a result  of which the
      Company is not the surviving corporation, or the sale of substantially all
      the assets of the Company or of more than fifty  percent (50%) of the then
      outstanding  stock of the Company to another  corporation or other entity,
      the Option  granted  hereunder will  terminate;  provided,  however,  that
      within  five (5) days before the  effective  date of such  dissolution  or
      liquidation,  merger  or  consolidation  or sale of  assets  in which  the
      Company is not the surviving corporation, the Company may, but will not be
      so obligated to, tender to any Optionee,  an option to purchase  shares of
      the  surviving  corporation,  and such new option or options  will contain
      such terms and provisions as required substantially to preserve the rights
      and benefits of this Option.

13.   INVALID PROVISIONS

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

                                       6
<PAGE>

14.   APPLICABLE LAW

      This Agreement shall be enforced,  governed by and construed in accordance
      with the laws of the State of New York  applicable to agreements  made and
      to be  performed  entirely  within  such  State.  In the  event  that  any
      provision  of  this  Agreement  is  invalid  or  unenforceable  under  any
      applicable  statute or rule of law,  then such  provision  shall be deemed
      inoperative  to the extent  that it may  conflict  therewith  and shall be
      deemed modified to conform with such statute or rule of law. Any provision
      hereof which may prove  invalid or  unenforceable  under any law shall not
      affect the validity or enforceability  of any other provision hereof.  The
      parties hereto hereby submit to the exclusive  jurisdiction  of the United
      States  Federal  Courts  located in New York with  respect to any  dispute
      arising under this Agreement or the transactions  contemplated hereby. The
      party which does not prevail in any dispute  arising under this  Agreement
      shall be responsible for all fees and expenses, including attorneys' fees,
      incurred by the prevailing party in connection with such dispute.

15.   COUNTERPARTS

      This Agreement may be executed in two or more counterparts,  each of which
      is deemed an Original but all of which  constitute  but one  Agreement.  A
      copy of this  Agreement  signed  by a party  and  delivered  by  facsimile
      transmission  to the other party has the same effect as the delivery of an
      original of this  Agreement  containing  the  original  signature  of such
      party.

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

T.R. WINSTON & COMPANY, LLC             SUNBURST ACQUISITIONS IV INC.

____________________________            By:  __________________________________
Name:                                                Name:

                                       7

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