Document:

EXHIBIT 10.2

THIS  WARRANT AND THE SHARES ISSUABLE UPON THE EXERCISE OF THIS WARRANT HAVE NOT
BEEN  REGIS-TERED  UNDER  THE  SECURITIES  ACT  OF  1933, AS AMENDED.  EXCEPT AS
OTHERWISE  SET  FORTH  HEREIN  OR IN A SECURITIES PURCHASE AGREEMENT DATED AS OF
JANUARY  31,  2002,  NEITHER  THIS  WARRANT  NOR ANY OF SUCH SHARES MAY BE SOLD,
TRANSFERRED  OR  ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRA-TION STATEMENT
FOR SUCH 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 UNDER SUCH ACT OR UNLESS SOLD PURSUANT TO RULE 144
OR  REGULATION  S  UNDER  SUCH  ACT.

Right  to  Purchase  _______ Shares of Common Stock, par value $0.0001 per share

                             STOCK PURCHASE WARRANT

     THIS  CERTIFIES  THAT,  for  value  received, ___________________  or  its
registered  assigns,  is  entitled  to  purchase form MarketCentral.net Corp., a
Texas  corporation  (the "Company"), at any time or from time to time during the
period  specified  in  Paragraph  2 hereof, ______________________ (___________)
fully  paid  and  nonassessable  shares of the Company's Common Stock, par value
$0.0001  per share (the "Common Stock"), at an exercise price per share equal to
the  lesser  of  (i)  $.057 and (ii) the average of the lowest three (3) Trading
Prices (as defined below) during the twenty (20) Trading Days (as defined below)
immediately  prior  to  exercise  (the  "Exercise  Price").  The  term  "Warrant
Shares,"  as  used  herein,  refers  to  the  shares of Common Stock purchasable
hereunder.  The  Warrant Shares and the Exercise Price are subject to adjustment
as  provided  in Paragraph 4 hereof.  The term "Warrants" means this Warrant and
the  other  warrants  issued  pursuant  to  that  certain  Securities  Purchase
Agreement,  dated  January  31,  2002,  by  and among the Company and the Buyers
listed  on  the  execution  page  thereof (the "Securities Purchase Agreement"),
including  any  additional  warrants  issuable pursuant to Section 4(l) thereof.
"Trading  Price"  means,  for  any security as of any date, the intraday trading
price  on  the  Over-the-Counter  Bulletin  Board  (the  "OTCBB") as reported by
Bloomberg  Financial  Markets  or  an  equivalent,  reliable  reporting  service
mutually  acceptable  to  and hereafter designated by the Company and the holder
hereof  ("Bloomberg")  or,  if the OTCBB is not the principal trading market for
such  security,  the  intraday  trading  price of such security on the principal
securities exchange or trading market where such security is listed or traded as
reported  by  Bloomberg  or,  if  no  intraday trading price of such security is
available  in  any of the foregoing manners, the average of the intraday trading
prices  of  any  market  makers  for  such security that are listed in the "pink
sheets"  by  the National Quotation Bureau, Inc.  If the Trading Price cannot be
calculated  for  such  security  on  such date in the manner provided above, the
Trading  Price  shall  be  the  fair  market value as mutually determined by the
Company  and  the  holder hereof.  "Trading Day" shall mean any day on which the
Common  Sock  is  traded  for  any  period  on  the  OTCBB,  or on the principal
securities exchange or other securities market on which the Common Stock is then
being  traded.

This  Warrant  is  subject  to  the following terms, provisions, and conditions:

1.     MANNER  OF  EXERCISE;  ISSUANCE  OF  CERTIFICATES;  PAYMENT  FOR  SHARES.
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Subject  to  the  provisions hereof, this Warrant may be exercised by the holder
hereof,  in  whole or in part, by the surrender of this Warrant, together with a
completed  exercise  agreement  in  the  form  attached  hereto  (the  "Exercise
Agreement"),  to the Company during normal business hours on any business day at
the Company's principal executive offices (or such other office or agency of the
     Company  as  it may designate by notice to the holder hereof), and upon (i)
payment  to the Company in cash, by certified or offi-cial bank check or by wire
transfer  for  the  account of the Company of the Exercise Price for the Warrant
Shares  specified in the Exercise Agreement or (ii) if the resale of the Warrant
Shares  by  the  holder  is  not  then  registered  pursuant  to  an  effective
registration  statement  under  the  Securities  Act  of  1933,  as amended (the
"Securities Act"), delivery to the Company of a written notice of an election to
effect a "Cashless Exercise" (as defined in Section 11(c) below) for the Warrant
Shares  specified  in  the  Exercise Agreement.  The Warrant Shares so purchased
shall  be deemed to be issued to the holder hereof or such holder's designee, as
the  record  owner  of  such  shares, as of the close of business on the date on
which this Warrant shall have been surrendered, the completed Exercise Agreement
shall  have been deliv-ered, and payment shall have been made for such shares as
set  forth  above.  Certifi-cates  for  the  Warrant  Shares  so  purchased,
representing the aggregate number of shares specified in the Exercise Agreement,
shall  be delivered to the holder hereof within a reasonable time, not exceeding
three  (3)  business days, after this Warrant shall have been so exercised.  The
certificates  so delivered shall be in such denominations as may be requested by
the  holder  hereof  and  shall be registered in the name of such holder or such
other  name  as  shall be designated by such holder.  If this Warrant shall have
been  exercised only in part, then, unless this Warrant has expired, the Company
shall,  at its expense, at the time of delivery of such certificates, deliver to
the holder a new Warrant representing the number of shares with respect to which
this  Warrant  shall  not  then  have  been exercised.  In addition to all other
available  remedies  at  law  or  in  equity,  if  the  Company fails to deliver
certificates  for  the  Warrant Shares within three (3) business days after this
Warrant is exercised, then the Company shall pay to the holder in cash a penalty
(the  "Penalty")  equal to 2% of the number of Warrant Shares that the holder is
entitled  to  multiplied by the Market Price for each day that the Company fails
to  deliver  certificates for the Warrant Shares.  For example, if the holder is
entitled  to  100,000  Warrant  Shares  and  the Market Price is $2.00, then the
Company  shall  pay  to the holder $4,000 for each day that the Company fails to
deliver  certificates  for the Warrant Shares.  The Penalty shall be paid to the
holder  by  the  fifth  day  of  the  month  following the month in which it has
accrued.

     Notwithstanding anything in this Warrant to the contrary, in no event shall
the  holder  of  this  Warrant  be entitled to exercise a number of Warrants (or
portions thereof) in excess of the number of Warrants (or portions thereof) upon
exercise  of  which  the  sum  of  (i)  the  number  of  shares  of Common Stock
beneficially owned by the holder 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  (including  the  Debentures  (as  defined  in  the
Securities  Purchase  Agreement))  subject  to  a  limitation  on  conversion or
exercise  analogous  to  the limitation contained herein) and (ii) the number of
shares  of  Common  Stock  issuable  upon  exercise of the Warrants (or portions
thereof) with respect to which the determination described herein is being made,
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  shall be determined in
accordance  with  Section  13(d)  of  the  Securities  Exchange  Act of 1934, as
amended, and Regulation 13D-G thereunder, except as otherwise provided in clause
(i)  of  the  preceding  sentence.  The  holder  of  this  Warrant may waive the
limitations  set  forth  herein  by  sixty-one  (61)  days written notice to the
Company.  Notwithstanding  anything  to  the  contrary  contained  herein,  the
limitation  on  exercise  of  this  Warrant  set forth herein may not be amended
without  (i)  the  written consent of the holder hereof and the Company and (ii)
the  approval  of  a  majority  of  shareholders  of  the  Company.

2.     PERIOD OF EXERCISE.  This Warrant is exercisable at any time or from time
       ------------------
     to  time on or after the date on which this Warrant is issued and delivered
pursuant to the terms of the Securities Purchase Agreement and before 8:00 p.m.,
New  York,  New York time on the third (3rd) anniversary of the date of issuance
(the  "Exercise  Period").

3.     CERTAIN  AGREEMENTS  OF  THE  COMPANY.  The  Company hereby covenants and
       -------------------------------------
agrees  as  follows:

(A)     SHARES  TO  BE  FULLY  PAID.  All  Warrant Shares will, upon issuance in
        ---------------------------
accordance  with  the  terms of this Warrant, be validly issued, fully paid, and
nonassessable  and  free  from all taxes, liens, and charges with respect to the
issue  thereof.

(B)     RESERVATION OF SHARES.  During the Exercise Period, the Company shall at
        ---------------------
all  times  have  authorized,  and  reserved  for  the  purpose of issuance upon
exercise  of  this  Warrant,  a  suf-ficient number of shares of Common Stock to
provide  for  the  exercise  of  this  Warrant.

(C)     LISTING.  The Company shall promptly secure the listing of the shares of
        -------
Common Stock issuable upon exercise of the Warrant upon each national securities
exchange  or  automated  quotation  system,  if any, upon which shares of Common
Stock  are  then listed (subject to official notice of issuance upon exercise of
this  Warrant)  and  shall maintain, so long as any other shares of Common Stock
shall be so listed, such listing of all shares of Common Stock from time to time
issuable  upon  the  exercise  of this Warrant; and the Company shall so list on
each national securities exchange or automated quotation system, as the case may
be, and shall maintain such listing of, any other shares of capital stock of the
Company  issuable upon the exercise of this Warrant if and so long as any shares
of  the  same  class  shall  be  listed  on such national securities exchange or
automated  quotation  system.

(D)     CERTAIN  ACTIONS  PROHIBITED.  The Company will not, by amendment of its
        ----------------------------
charter  or  through  any  re-organi-zation,  transfer of assets, consolidation,
mer-ger,  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
to be observed or performed by it hereunder, but will at all times in good faith
assist  in  the  carrying  out  of all the provisions of this Warrant and in the
taking  of  all such action as may reasonably be requested by the holder of this
Warrant in order to protect the exercise privilege of the holder of this Warrant
against  dilu-tion or other impairment, consistent with the tenor and purpose of
this  Warrant.  Without  limiting  the general-ity of the foregoing, the Company
(i)  will  not  increase  the par value of any shares of Common Stock receivable
upon  the  exercise of this Warrant above the Exercise Price then in effect, and
(ii) will take all such actions as may be necessary or appropriate in order that
the Company may validly and legally issue fully paid and nonassessable shares of
Common  Stock  upon  the  exercise  of  this  Warrant.

(E)     SUCCESSORS  AND  ASSIGNS.  This  Warrant will be binding upon any entity
        ------------------------
succeeding  to  the  Company  by merger, consolidation, or acquisition of all or
substantially  all  the  Company's  assets.

4.     ANTIDILUTION  PROVISIONS.  During the Exercise Period, the Exercise Price
       ------------------------
and  the  number  of  Warrant Shares shall be subject to adjustment from time to
time  as  provided  in  this  Paragraph  4.
     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 to the
nearest  cent.

(A)     ADJUSTMENT  OF  EXERCISE  PRICE  AND  NUMBER  OF SHARES UPON ISSUANCE OF
        ------------------------------------------------------------------------
COMMON  STOCK.  Except as otherwise provided in Paragraphs 4(c) and 4(e) hereof,
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if  and  whenever  on or after the date of issuance of this Warrant, the Company
issues  or  sells, or in accordance with Paragraph 4(b) hereof is deemed to have
issued  or  sold,  any  shares  of  Common  Stock  for no consideration or for a
consideration  per share (before deduction of reasonable expenses or commissions
or  underwriting  discounts or allowances in connection therewith) less than the
Market  Price  (as  hereinafter  defined)  on  the date of issuance (a "Dilutive
Issuance"), then immediately upon the Dilutive Issuance, the Exercise Price will
     be  reduced  to  a  price  determined  by multiplying the Exercise Price in
effect  immediately  prior  to  the  Dilutive  Issuance  by  a fraction, (i) the
numerator  of which is an amount equal to the sum of (x) the number of shares of
Common  Stock  actually  outstanding immediately prior to the Dilutive Issuance,
plus (y) the quotient of the aggregate consideration, calculated as set forth in
Paragraph  4(b)  hereof,  received  by  the  Company upon such Dilutive Issuance
divided  by  the  Market  Price  in  effect  immediately  prior  to the Dilutive
Issuance,  and  (ii)  the  denominator of which is the total number of shares of
Common  Stock  Deemed  Outstanding  (as  defined  below)  immediately  after the
Dilutive  Issuance.

(B)     EFFECT ON EXERCISE PRICE OF CERTAIN EVENTS.  For purposes of determining
        ------------------------------------------
the  adjusted  Exercise Price under Paragraph 4(a) hereof, the following will be
applicable:

(I)     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 other securities convertible
into or exchangeable for Common Stock ("Convertible Securities") (such warrants,
     rights  and  options to purchase Common Stock or Convertible Securities are
hereinafter  referred  to as "Options") and the price per share for which Common
Stock  is  issuable  upon  the  exercise of such Options is less than the Market
Price  on  the date of issuance or grant of such Options, then the maximum total
number  of shares of Common Stock issuable upon the exercise of all such Options
will,  as  of the date of the issuance or grant of such Options, be deemed to be
outstanding  and  to have been issued and sold by the Company for such price per
share.  For  purposes  of the preceding sentence, the "price per share for which
Common  Stock  is  issuable  upon the exercise of such 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 Options, plus the minimum
aggregate  amount  of  additional  consideration, if any, payable to the Company
upon  the  exercise  of  all  such  Options,  plus,  in  the case of Convertible
Securities  issuable  upon  the  exercise of such Options, the minimum aggregate
amount  of  additional  consideration  payable  upon  the conversion or exchange
thereof  at  the  time  such  Convertible Securities first become convertible or
exchangeable,  by  (ii)  the  maximum  total  number  of  shares of Common Stock
issuable  upon  the  exercise  of  all such Options (assuming full conversion of
Convertible  Securities,  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  Options  or  upon  the conversion or exchange of Convertible
Securities  issuable  upon  exercise  of  such  Options.

(II)     ISSUANCE  OF  CONVERTIBLE  SECURITIES.  If  the  Company  in any manner
         -------------------------------------
issues  or  sells  any  Convertible  Securities,  whether  or  not  immediately
convertible  (other  than  where  the  same  are  issuable  upon the exercise of
Options)  and  the  price per share for which Common Stock is issuable upon such
conversion  or  exchange  is less than the Market Price on the date of issuance,
then  the  maximum  total  number  of  shares  of Common Stock issuable upon the
conversion  or  exchange of all such Convertible Securities will, as of the date
of  the issuance of such Convertible Securities, be deemed to be outstanding and
to  have  been issued and sold by the Company for such price per share.  For the
purposes  of the preceding sentence, the "price per share for which Common Stock
is  issuable upon such 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  Convertible Securities, plus the minimum
aggregate  amount  of  additional  consideration, if any, payable to the Company
upon  the conversion or exchange thereof at the time such Convertible Securities
first  become  convertible  or exchangeable, by (ii) the maximum total number of
shares  of  Common  Stock  issuable  upon the conversion or exchange of all such
Convertible  Securities.  No  further  adjustment  to the Exercise Price will be
made  upon  the actual issuance of such Common Stock upon conversion or exchange
of  such  Convertible  Securities.

(III)     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  conversion  or  exchange  of any
Convertible  Securities;  or  (iii) the rate at which any Convertible Securities
are  convertible  into  or exchangeable for Common Stock (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 Convertible
Securities  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.

(IV)     TREATMENT  OF  EXPIRED  OPTIONS AND UNEXERCISED CONVERTIBLE SECURITIES.
         ----------------------------------------------------------------------
If,  in  any  case,  the  total  number  of shares of Common Stock issuable upon
exercise  of  any  Option  or  upon  conversion  or  exchange of any Convertible
Securities  is not, in fact, issued and the rights to exercise such Option or to
convert  or  exchange  such  Convertible  Securities  shall  have  expired  or
terminated, the Exercise Price then in effect will be readjusted to the Exercise
Price  which  would  have  been  in  effect  at  the  time of such expiration or
termination had such Option or Convertible Securities, to the extent outstanding
immediately  prior  to  such expiration or termination (other than in respect of
the  actual  number of shares of Common Stock issued upon exercise or conversion
thereof),  never  been  issued.

(V)     CALCULATION  OF CONSIDERATION RECEIVED.  If any Common Stock, Options or
        --------------------------------------
Convertible  Securities  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 Convertible Securities 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 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 Market
Price  thereof  as of the date of receipt.  In case any Common Stock, Options or
Convertible  Securities are issued in connection with any acquisition, merger or
consolidation  in  which the Company is the surviving corporation, the amount of
consideration  therefor  will  be deemed to be the fair value of such portion of
the  net assets and business of the non-surviving corporation as is attributable
to  such  Common  Stock,  Options or Convertible Securities, as the case may be.
The  fair  value  of  any  consideration  other  than cash or securities will be
determined  in  good  faith  by  the  Board  of  Directors  of  the  Company.

(VI)     EXCEPTIONS  TO  ADJUSTMENT  OF  EXERCISE  PRICE.  No  adjustment to the
         -----------------------------------------------
Exercise  Price  will  be made (i) upon the exercise of any warrants, options or
convertible  securities  granted, issued and outstanding on the date of issuance
of  this  Warrant; (ii) upon the grant or exercise of any stock or options which
may  hereafter  be  granted  or exercised under any employee benefit plan, stock
option  plan  or  restricted  stock  plan  of  the Company now existing or to be
implemented  in  the future, so long as the issuance of such stock or options is
approved  by  a majority of the independent members of the Board of Directors of
the Company or a majority of the members of a committee of independent directors
established  for  such  purpose;  or  (iii)  upon  the exercise of the Warrants.

(C)     SUBDIVISION  OR COMBINATION OF COMMON STOCK.  If the Company at any time
        -------------------------------------------
subdivides  (by  any  stock  split,  stock  dividend,  recapitalization,
reorganization,  reclassification  or  otherwise)  the  shares  of  Common Stock
acquirable  hereunder  into  a greater number of shares, then, after the date of
record  for effecting such subdivision, the Exercise Price in effect immediately
prior  to  such  subdivision will be proportionately reduced.  If the Company at
any  time  combines  (by  reverse stock split, recapitalization, reorganization,
reclassification  or  otherwise) the shares of Common Stock acquirable hereunder
into  a  smaller  number of shares, then, after the date of record for effecting
such  combination,  the  Exercise  Price  in  effect  immediately  prior to such
combination  will  be  proportionately  increased.

(D)     ADJUSTMENT  IN  NUMBER  OF SHARES.  Upon each adjustment of the Exercise
        ---------------------------------
Price  pursuant  to  the provisions of this Paragraph 4, the number of shares of
Common  Stock  issuable  upon  exercise  of  this  Warrant  shall be adjusted by
multiplying  a number equal to the Exercise Price in effect immediately prior to
such  adjustment  by the number of shares of Common Stock issuable upon exercise
of this Warrant immediately prior to such adjustment and dividing the product so
obtained  by  the  adjusted  Exercise  Price.

(E)     CONSOLIDATION,  MERGER  OR  SALE.  In  case  of any consolidation of the
        --------------------------------
Company with, or merger of the Company into any other corporation, or in case of
any  sale or conveyance of all or substantially all of the assets of the Company
other  than  in  connection  with a plan of complete liquidation of the Company,
then  as  a  condition  of  such  consolidation,  merger  or sale or conveyance,
adequate provision will be made whereby the holder of this Warrant will have the
right to acquire and receive upon exercise of this Warrant in lieu of the shares
of  Common  Stock  immediately  theretofore acquirable upon the exercise of this
Warrant,  such shares of stock, securities or assets as may be issued or payable
with  respect  to  or  in  exchange  for  the  number  of shares of Common Stock
immediately  theretofore acquirable and receivable upon exercise of this Warrant
had  such  consolidation,  merger or sale or conveyance not taken place.  In any
such  case,  the  Company  will  make  appropriate  provision to insure that the
provisions of this Paragraph 4 hereof will thereafter be applicable as nearly as
may  be  in relation to any shares of stock or securities thereafter deliverable
upon  the  exercise  of  this  Warrant.  The  Company  will  not  effect  any
consolidation,  merger  or  sale  or conveyance unless prior to the consummation
thereof,  the  successor  corporation  (if  other  than  the Company) assumes by
written instrument the obligations under this Paragraph 4 and the obligations to
deliver to the holder of this Warrant such shares of stock, securities or assets
as,  in  accordance with the foregoing provisions, the holder may be entitled to
acquire.

(F)     DISTRIBUTION  OF  ASSETS.  In case the Company shall declare or make any
        ------------------------
distribution  of  its  assets  (including  cash) to holders of Common Stock as a
partial  liquidating  dividend,  by way of return of capital or otherwise, then,
after  the  date  of  record  for  determining  stockholders  entitled  to  such
distribution,  but prior to the date of distribution, the holder of this Warrant
shall  be  entitled upon exercise of this Warrant for the purchase of any or all
of  the  shares  of  Common  Stock subject hereto, to receive the amount of such
assets  which  would  have  been  payable to the holder had such holder been the
holder  of  such shares of Common Stock on the record date for the determination
of  stockholders  entitled  to  such  distribution.

(G)     NOTICE  OF  ADJUSTMENT.  Upon the occurrence of any event which requires
        ----------------------
any  adjustment  of the Exercise Price, then, and in each such case, the Company
shall  give  notice  thereof  to  the holder of this Warrant, which notice shall
state  the  Exercise  Price  resulting  from such adjustment and the increase or
decrease  in  the  number  of  Warrant  Shares  purchasable  at  such price upon
exercise,  setting  forth in reasonable detail the method of calculation and the
facts upon which such calculation is based.  Such calculation shall be certified
by  the  Chief  Financial  Officer  of  the  Company.

(H)     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.

(I)     NO  FRACTIONAL  SHARES.  No  fractional shares of Common Stock are to be
        ----------------------
issued  upon  the  exercise  of  this  Warrant, but the Company shall pay a cash
adjustment  in respect of any fractional share which would otherwise be issuable
in an amount equal to the same fraction of the Market Price of a share of Common
Stock  on  the  date  of  such  exercise.

(J)     OTHER  NOTICES.  In  case  at  any  time:
        --------------

(I)     the  Company shall declare any dividend upon the Common Stock payable in
shares of stock of any class or make any other distribution (including dividends
or  distributions  payable in cash out of retained earnings) to the holders
of  the  Common  Stock;
(II)     the Company shall offer for subscription pro rata to the holders of the
Common  Stock  any  additional  shares  of  stock  of any class or other rights;
(III)     there  shall  be  any  capital  reorganiza-tion  of  the  Company,  or
reclassification  of the Common Stock, or consolidation or merger of the Company
with  or  into,  or  sale  of  all  or substan-tially all its assets to, another
corporation  or  entity;  or
(IV)     there  shall be a voluntary or involun-tary dissolution, liquidation or
winding  up  of  the  Company;
then,  in  each  such case, the Company shall give to the holder of this Warrant
(a) notice of the date on which the books of the Company shall close or a record
shall  be  taken for determining the holders of Common Stock entitled to receive
any  such divi-dend, distribution, or subscription rights or for determining the
holders  of Common Stock entitled to vote in respect of any such reorganization,
reclassification,  consolidation,  merger,  sale,  dissolution,  liquidation  or
winding-up  and  (b)  in  the case of any such reorganization, reclassification,
consolidation,  merger,  sale, dissolution, liquidation or winding-up, notice of
the  date  (or,  if  not  then  known, a reasonable approximation thereof by the
Company)  when  the  same  shall take place.  Such notice shall also specify the
date  on  which  the  holders  of Common Stock shall be entitled to receive such
dividend, distribution, or subscription rights or to exchange their Common Stock
for  stock or other securities or property deliverable upon such reorganization,
re-classification,  consolidation,  merger,  sale, dissolution, liqui-dation, or
winding-up,  as  the  case  may be.  Such notice shall be given at least 30 days
prior  to the record date or the date on which the Company's books are closed in
respect  thereto.  Failure  to  give any such notice or any defect therein shall
not  affect  the  validity  of the proceedings referred to in clauses (i), (ii),
(iii)  and  (iv)  above.

(K)     CERTAIN  EVENTS.  If  any  event  occurs of the type contemplated by the
        ---------------
adjustment provisions of this Paragraph 4 but not expressly provided for by such
provisions,  the  Company  will  give  notice  of such event as provided in
Paragraph  4(g)  hereof,  and  the  Company's  Board  of  Directors will make an
appropriate  adjustment in the Exercise Price and the number of shares of Common
Stock  acquirable upon exercise of this Warrant so that the rights of the holder
shall  be  neither  enhanced  nor  diminished  by  such  event.

(L)     CERTAIN  DEFINITIONS.
        --------------------

(I)     "COMMON  STOCK  DEEMED  OUTSTANDING"  shall mean the number of shares of
         ----------------------------------
Common  Stock actually outstanding (not including shares of Common Stock held in
the treasury of the Company), plus (x) pursuant to Paragraph 4(b)(i) hereof, the
     maximum  total  number of shares of Common Stock issuable upon the exercise
of  Options,  as  of the date of such issuance or grant of such Options, if any,
and  (y)  pursuant  to  Paragraph  4(b)(ii)  hereof, the maximum total number of
shares  of  Common  Stock  issuable  upon  conversion or exchange of Convertible
Securities,  as  of the date of issuance of such Convertible Securities, if any.

(II)     "MARKET  PRICE,"  as  of  any  date,  (i) means the average of the last
          -------------
reported  sale  prices  for  the  shares of Common Stock on the Over-the-Counter
Bulletin  Board  (the  "OTC  BB")  for  the  five  (5)  Trading Days immediately
preceding  such  date as reported by Bloomberg, or (ii) if the OTC BB is not the
principal trading market for the shares of Common Stock, the average of the last
reported sale prices on the principal trading market for the Common Stock during
the  same  period  as  reported by Bloomberg, or (iii) if market value cannot be
calculated as of such date on any of the foregoing bases, the Market Price shall
be the fair market value as reasonably determined in good faith by (a) the Board
of  Directors  of the Company or, at the option of a majority-in-interest of the
holders  of  the  outstanding  Warrants by (b) an independent investment bank of
nationally  recognized  standing  in  the valuation of businesses similar to the
business  of  the corporation. The manner of determining the Market Price of the
Common  Stock  set forth in the foregoing definition shall apply with respect to
any  other  security in respect of which a determination as to market value must
be  made  hereunder.

(III)     "COMMON  STOCK," for purposes of this Paragraph 4, includes the Common
           -------------
Stock,  par  value  $0.0001  per share, and any additional class of stock of the
Company  having  no  preference as to dividends or distributions on liquidation,
provided that the shares purchasable pursuant to this Warrant shall include only
shares  of  Common  Stock, par value $0.0001 per share, in respect of which this
Warrant  is exercisable, or shares resulting from any subdivision or combination
of  such  Common  Stock, or in the case of any reorganization, reclassification,
consolidation,  merger,  or  sale of the character referred to in Paragraph 4(e)
hereof,  the  stock  or  other  securities  or  property  provided  for  in such
Paragraph.

5.     ISSUE  TAX.  The  issuance  of  certificates  for Warrant Shares upon the
       ----------
exercise  of  this  Warrant  shall  be made without charge to the holder of this
Warrant  or  such shares for any issuance tax or other costs in respect thereof,
provided  that  the  Company  shall  not be required to pay any tax which may be
payable  in respect of any transfer involved in the issuance and delivery of any
certificate  in  a  name  other  than  the  holder  of  this  Warrant.

6.     NO  RIGHTS  OR  LIABILITIES  AS  A  SHAREHOLDER.  This  Warrant shall not
       -----------------------------------------------
entitle  the holder hereof to any voting rights or other rights as a shareholder
of  the  Company.  No  provision  of this Warrant, in the absence of affirmative
action  by the holder hereof to purchase Warrant Shares, and no mere enumeration
herein  of the rights or privileges of the holder hereof, shall give rise to any
liability  of  such  holder  for  the  Exercise Price or as a shareholder of the
Company,  whether  such  liability is asserted by the Company or by creditors of
the  Company.

7.     TRANSFER,  EXCHANGE,  AND  REPLACEMENT  OF  WARRANT.
       ---------------------------------------------------

(A)     RESTRICTION  ON  TRANSFER.  This  Warrant  and the rights granted to the
        -------------------------
holder  hereof  are  transferable,  in  whole or in part, upon surrender of this
Warrant,  together  with  a  properly  executed  assignment in the form attached
hereto,  at  the  office  or agency of the Company referred to in Paragraph 7(e)
below,  pro-vided,  however, that any transfer or assignment shall be subject to
the  conditions  set  forth  in  Paragraph  7(f)  hereof  and  to the applicable
provisions  of  the  Securities  Purchase  Agreement.  Until due presentment for
registration  of transfer on the books of the Company, the Company may treat the
registered  holder  hereof  as the owner and holder hereof for all purposes, and
the  Company  shall  not  be  affected  by  any  notice  to  the  con-trary.
Notwithstanding  anything  to  the  contrary  contained herein, the registration
rights  described  in  Paragraph  8  are  assignable only in accordance with the
provisions  of  that  certain Registration Rights Agreement, dated as of January
31,  2002,  by  and  among  the  Company  and the other signatories thereto (the
"Registration  Rights  Agreement").

(B)     WARRANT  EXCHANGEABLE  FOR  DIFFERENT  DENOMINA-TIONS.  This  Warrant is
        -----------------------------------------------------
exchange-able,  upon  the surrender hereof by the holder hereof at the office or
agency  of  the Company referred to in Paragraph 7(e) below, for new Warrants of
like  tenor  representing  in  the aggregate the right to purchase the number of
shares  of  Common  Stock  which  may  be  purchased hereunder, each of such new
Warrants  to  represent  the right to purchase such number of shares as shall be
designated  by  the  holder  hereof  at  the  time  of  such  surrender.

(C)     REPLACEMENT  OF  WARRANT.  Upon  receipt  of  evi-dence  reasonably
        ------------------------
satisfactory  to  the  Company of the loss, theft, destruction, or mutilation of
this  Warrant  and,  in  the case of any such loss, theft, or destruc-tion, upon
delivery  of  an indemnity agreement reason-ably satisfactory in form and amount
to  the  Company,  or,  in  the  case of any such mutilation, upon surrender and
cancellation  of  this  Warrant,  the  Company, at its expense, will execute and
deliver,  in  lieu  thereof,  a  new  Warrant  of  like  tenor.

(D)     CANCELLATION;  PAYMENT  OF EXPENSES.  Upon the surrender of this Warrant
        -----------------------------------
in  connection  with any trans-fer, exchange, or replacement as provided in this
Paragraph  7,  this  Warrant  shall  be  promptly  canceled by the Company.  The
Company shall pay all taxes (other than securities transfer taxes) and all other
expenses  (other  than  legal  expenses,  if  any,  incurred  by  the  holder or
transferees)  and charges payable in connection with the preparation, execution,
and  delivery  of  Warrants  pursuant  to  this  Paragraph  7.

(E)     REGISTER.  The  Company  shall  maintain,  at  its  principal  executive
        --------
offices  (or  such  other office or agency of the Company as it may designate by
notice  to the holder hereof), a register for this Warrant, in which the Company
shall  record  the name and address of the person in whose name this Warrant has
been  issued,  as well as the name and address of each transferee and each prior
owner  of  this  Warrant.

(F)     EXERCISE  OR  TRANSFER  WITHOUT  REGISTRATION.  If,  at  the time of the
        ---------------------------------------------
surrender of this Warrant in connection with any exercise, transfer, or exchange
of  this  Warrant,  this  Warrant  (or, in the case of any exercise, the Warrant
Shares  issuable hereunder), shall not be registered under the Securities Act of
1933, as amended (the "Securities Act") and under applicable state securities or
blue  sky  laws,  the  Company  may  require,  as  a  condition of allowing such
exercise,  transfer,  or  exchange,  (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 and counsel are acceptable to the Company, to the effect
that such exercise, transfer, or exchange may be made without registration under
said  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) promulgated under the Securities
Act; provided that no such opinion, letter or status as an "accredited investor"
shall  be  required in connection with a transfer pursuant to Rule 144 under the
Securities  Act.  The  first  holder  of this Warrant, by taking and holding the
same,  represents  to the Company that such holder is acquiring this Warrant for
investment  and  not  with  a  view  to  the  distribution  thereof.

8.     REGISTRATION  RIGHTS.  The  initial  holder  of this Warrant (and certain
       --------------------
assignees  thereof)  is  entitled  to the benefit of such registration rights in
respect  of the Warrant Shares as are set forth in Section 2 of the Registration
Rights  Agreement.

9.     NOTICES.  All  notices,  requests,  and other communications required or
       -------
permitted to be given or delivered hereunder to the holder of this Warrant shall
be  in writing, and shall be personally delivered, or shall be sent by certified
or  registered mail or by recognized overnight mail courier, postage prepaid and
addressed,  to  such holder at the address shown for such holder on the books of
the  Company,  or  at  such  other  address  as shall have been furnished to the
Company  by  notice  from  such  holder.  All  notices,  requests,  and  other
communications  required  or permitted to be given or delivered hereunder to the
Company shall be in writing, and shall be personally delivered, or shall be sent
by certified or registered mail or by recognized overnight mail courier, postage
prepaid  and  addressed,  to  the  office  of  the  Company at 6401 South Boston
Street-Villa Q205, Englewood, Colorado 80111, Attention: Chairman, President and
Chief  Executive  Officer, or at such other address as shall have been furnished
to  the  holder  of  this  Warrant by notice from the Company.  Any such notice,
request, or other communication may be sent by facsimile, but shall in such case
be subsequently confirmed by a writing personally delivered or sent by certified
or  registered  mail  or by recognized overnight mail courier as provided above.
All  notices,  requests,  and  other communications shall be deemed to have been
given  either  at  the  time  of  the  receipt thereof by the person entitled to
re-ceive  such  notice  at  the  address  of  such  person  for purposes of this
Paragraph  9, or, if mailed by registered or certified mail or with a recognized
overnight  mail  courier upon deposit with the United States Post Office or such
overnight  mail  courier,  if  postage  is  prepaid  and the mailing is properly
addressed,  as  the  case  may  be.

10.     GOVERNING  LAW.  THIS  WARRANT  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 WITH SUCH STATE, WITHOUT REGARD TO
THE  PRINCIPLES  OF  CONFLICT  OF LAWS.  THE PARTIES HERETO HEREBY SUBMIT TO THE
EXCLUSIVE  JURISDICTION OF THE UNITED STATES FEDERAL COURTS LOCATED IN NEW YORK,
NEW  YORK WITH RESPECT TO ANY DISPUTE ARISING UNDER THIS WARRANT, THE AGREEMENTS
ENTERED  INTO  IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY.  BOTH PARTIES IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT FORUM TO
THE  MAINTENANCE  OF  SUCH  SUIT OR PROCEEDING.  BOTH PARTIES FURTHER AGREE THAT
SERVICE  OF  PROCESS  UPON A PARTY MAILED BY FIRST CLASS MAIL SHALL BE DEEMED IN
EVERY  RESPECT  EFFECTIVE  SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH SUIT OR
PROCEEDING.  NOTHING  HEREIN  SHALL AFFECT EITHER PARTY'S RIGHT TO SERVE PROCESS
IN  ANY  OTHER  MANNER  PERMITTED  BY  LAW.  BOTH  PARTIES  AGREE  THAT  A FINAL
NON-APPEALABLE  JUDGMENT  IN ANY SUCH SUIT OR PROCEEDING SHALL BE CONCLUSIVE AND
MAY  BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON SUCH JUDGMENT OR IN ANY OTHER
LAWFUL  MANNER.  THE  PARTY  WHICH DOES NOT PREVAIL IN ANY DISPUTE ARISING UNDER
THIS  WARRANT  SHALL  BE  RESPONSIBLE  FOR  ALL  FEES  AND  EXPENSES,  INCLUDING
ATTORNEYS'  FEES,  INCURRED  BY  THE  PREVAILING  PARTY  IN CONNECTION WITH SUCH
DISPUTE.

11.     MISCELLANEOUS.
        -------------
(A)     AMENDMENTS.  This  Warrant  and any provision hereof may only be amended
        ----------
by  an  instrument  in  writing  signed  by  the  Company and the holder hereof.

(B)     DESCRIPTIVE  HEADINGS.  The  descriptive  headings  of  the  several
        ---------------------
paragraphs  of  this  Warrant  are inserted for purposes of reference only, and
shall  not  affect  the meaning or construction of any of the provisions hereof.

(C)     CASHLESS  EXERCISE.  Notwithstanding  anything to the contrary contained
        ------------------
in  this  Warrant, if the resale of the Warrant Shares by the holder is not then
registered  pursuant to an effective registration statement under the Securities
Act, this Warrant may be exercised by presentation and surrender of this Warrant
to  the  Company at its principal executive offices with a written notice of the
holder's intention to effect a cashless exercise, including a calculation of the
number  of  shares of Common Stock to be issued upon such exercise in accordance
with  the  terms  hereof  (a  "Cashless  Exercise").  In the event of a Cashless
Exercise,  in  lieu  of  paying  the  Exercise  Price  in cash, the holder shall
surrender  this  Warrant for that number of shares of Common Stock determined by
multiplying the number of Warrant Shares to which it would otherwise be entitled
by  a  fraction, the numerator of which shall be the difference between the then
current  Market Price per share of the Common Stock and the Exercise Price,  and
the  denominator  of  which  shall be the then current Market Price per share of
Common  Stock.  For example, if the holder is exercising 100,000 Warrants with a
per  Warrant  exercise price of $0.75 per share through a cashless exercise when
the  Common Stock's current Market Price per share is $2.00 per share, then upon
such  Cashless  Exercise  the holder will receive 62,500 shares of Common Stock.

(D)     REMEDIES.  The  Company  acknowledges  that  a  breach  by  it  of  its
        --------
obligations  hereunder  will  cause irreparable harm to the holder, by vitiating
the intent and purpose of the transaction contemplated hereby.  Accordingly, the
Company  acknowledges  that  the  remedy  at law for a breach of its obligations
under  this  Warrant  will be inadequate and agrees, in the event of a breach or
threatened  breach  by  the  Company of the provisions of this Warrant, that the
holder  shall be entitled, in addition to all other available remedies at law or
in  equity, and in addition to the penalties assessable herein, to an injunction
or  injunctions restraining, preventing or curing any breach of this Warrant and
to  enforce specifically the terms and provisions thereof, without the necessity
of  showing economic loss and without any bond or other security being required.

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

MARKETCENTRAL.NET  CORP.

By:  _____________________________
 Paul  Taylor
 Chairman,  President  and
 Chief  Executive  Officer

Dated  as  of  January  31,  2002

<PAGE>

                           FORM OF EXERCISE AGREEMENT

                                             Dated:  ________  __,  200_

To:     MarketCentral.net  Corp.

     The  undersigned,  pursuant  to  the  provisions  set  forth  in the within
Warrant,  hereby  agrees  to purchase ________ shares of Common Stock covered by
such  Warrant,  and  makes  pay-ment  herewith in full therefor at the price per
share provided by such Warrant in cash or by certified or official bank check in
the  amount of, or, if the resale of such Common Stock by the undersigned is not
currently  registered  pursuant to an effective registration statement under the
Securities  Act  of  1933,  as amended, by surrender of securities issued by the
Company  (including a portion of the Warrant) having a market value (in the case
of a portion of this Warrant, determined in accordance with Section 11(c) of the
Warrant)  equal  to $_________.  Please issue a certificate or certifi-cates for
such  shares  of Common Stock in the name of and pay any cash for any fractional
share  to:

Name:     ______________________________

Signature:
Address:  ____________________________
          _____________________________

Note:     The  above  signature  should  correspond exactly with the name on the
face  of  the  within  Warrant,  if  applicable.

and,  if  said  number  of  shares  of  Common Stock shall not be all the shares
purchasable  under the within Warrant, a new Warrant is to be issued in the name
of  said  undersigned  covering the balance of the shares purchasable thereunder
less  any  frac-tion  of  a  share  paid  in  cash.

<PAGE>
                               FORM OF ASSIGNMENT

     FOR  VALUE  RECEIVED,  the undersigned hereby sells, assigns, and transfers
all  the rights of the undersigned under the within Warrant, with respect to the
number  of  shares  of  Common  Stock covered thereby set forth hereinbelow, to:

Name  of  Assignee               Address                         No  of  Shares
------------------               -------                         --------------

,  and  hereby  irrevocably  constitutes  and  appoints
___________________________________  as  agent and attorney-in-fact to trans-fer
said  Warrant  on  the books of the within-named corporation, with full power of
substitution  in  the  premises.

Dated:

In  the  presence of:                             ______________________________
Name:______________________________

Signature:_________________________
Title  of  Signing  Officer  or  Agent  (if  any):  ------------
          ______________________________
Address:     ______________________________
          ______________________________

Note:     The  above  signature  should  correspond exactly with the name on the
face  of  the  within  Warrant,  if  applicable.EXHIBIT 10.3

THE  SECURITIES  REPRESENTED  BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE  SECURITIES  ACT OF 1933, AS AMENDED (THE "ACT").  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 UNDER SAID ACT OR UNLESS SOLD PURSUANT TO RULE
144  OR  REGULATION  S  UNDER  SAID  ACT.

                          SECURED CONVERTIBLE DEBENTURE

Englewood,  Colorado
January  31,  2002                                                      $_______

     FOR  VALUE  RECEIVED,  MARKETCENTRAL.NET  CORP.,  a  Texas  corporation
(hereinafter  called the "BORROWER"), hereby promises to pay to the order of ___
_______________ or registered assigns (the "HOLDER") the sum of ________________
Dollars  ($______),  on  January  31,  2003  (the  "MATURITY  DATE"), and to pay
interest  on  the  unpaid principal balance hereof at the rate of twelve percent
(12%)  per annum from January 31, 2002 (the "ISSUE DATE") until the same becomes
due  and  payable,  whether at maturity or upon acceleration or by prepayment or
otherwise.  Any  amount  of principal or interest on this Debenture which is not
paid when due shall bear interest at the rate of fifteen percent (15%) per annum
from the due date thereof until the same is paid ("DEFAULT INTEREST").  Interest
shall  commence  accruing on the issue date, shall be computed on the basis of a
365-day  year and the actual number of days elapsed and shall be payable, at the
option  of  the  Holder, either quarterly on March 31, June 30, September 30 and
December  31  of  each  year  beginning  on  March  31,  2002, or at the time of
conversion  of  the  principal to which such interest relates in accordance with
Article  I  below.  All payments due hereunder (to the extent not converted into
common  stock, par value $0.0001 per share, of the Borrower (the "COMMON STOCK")
in accordance with the terms hereof) shall be made in lawful money of the United
States  of  America  or,  at  the  option of the Holder, in whole or in part, in
shares  of Common Stock of the Borrower valued at the then applicable Conversion
Price  (as  defined  herein).  All payments shall be made at such address as the
Holder shall hereafter give to the Borrower by written notice made in accordance
with  the provisions of this Debenture.  Whenever any amount expressed to be due
by  the  terms  of this Debenture is due on any day which is not a business day,
the same shall instead be due on the next succeeding day which is a business day
and,  in  the  case  of any interest payment date which is not the date on which
this  Debenture is paid in full, the extension of the due date thereof shall not
be  taken into account for purposes of determining the amount of interest due on
such  date.  As  used  in this Debenture, the term "business day" shall mean any
day other than a Saturday, Sunday or a day on which commercial banks in the city
of  New  York,  New York are authorized or required by law or executive order to
remain  closed.  Each  capitalized  term used herein, and not otherwise defined,
shall  have  the  meaning  ascribed  thereto in that certain Securities Purchase
Agreement,  dated  January  31,  2002,  pursuant  to  which  this  Debenture was
originally  issued  (the  "PURCHASE  AGREEMENT").

     This  Debenture is free from all taxes, liens, claims and encumbrances with
respect  to  the  issue thereof and shall not be subject to preemptive rights or
other  similar  rights  of  stockholders  of  the  Borrower  and will not impose
personal  liability  upon  the  holder thereof.  The obligations of the Borrower
under  this  Debenture shall be secured by that certain Security Agreement dated
by  and  between  the  Borrower  and  the  Holder  of  even  date  herewith.

     The  following  terms  shall  apply  to  this  Debenture:

                          ARTICLE I.  CONVERSION RIGHTS

     1.1     CONVERSION  RIGHT.  The  Holder  shall  have the right from time to
             -----------------
time,  and  at  any time on or prior to the earlier of (i) the Maturity Date and
(ii)  the  date  of  payment  of  the Default Amount (as defined in Article III)
pursuant  to  Section  1.6(a) or Article III, the Optional Prepayment Amount (as
defined  in Section 5.1 or any payments pursuant to Section 1.7, each in respect
of  the  remaining outstanding principal amount of this Debenture to convert all
or  any  part  of  the outstanding and unpaid principal amount of this Debenture
into  fully paid and non-assessable shares of Common Stock, as such Common Stock
exists  on the Issue Date, or any shares of capital stock or other securities of
the  Borrower  into  which  such  Common  Stock  shall  hereafter  be changed or
reclassified  at  the  conversion  price  (the "CONVERSION PRICE") determined as
provided  herein (a "CONVERSION"); provided, however, that in no event shall the
                                   --------  -------
Holder  be  entitled  to convert any portion of this Debenture in excess of that
portion  of this Debenture upon conversion of which the sum of (1) the number of
shares  of  Common  Stock  beneficially  owned  by the Holder and its affiliates
(other  than  shares  of  Common  Stock  which  may be deemed beneficially owned
through  the  ownership  of  the  unconverted  portion  of the Debentures or the
unexercised  or  unconverted  portion  of  any  other  security  of the Borrower
(including,  without limitation, the warrants issued by the Borrower pursuant to
the  Purchase  Agreement)  subject  to  a  limitation  on conversion or exercise
analogous  to  the limitations contained herein) and (2) the number of shares of
Common  Stock issuable upon the conversion of the portion of this Debenture with
respect  to  which the determination of this proviso is being made, 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 proviso to the
immediately  preceding  sentence,  beneficial  ownership  shall be determined in
accordance  with  Section  13(d)  of  the  Securities  Exchange  Act of 1934, as
amended,  and  Regulations  13D-G  thereunder,  except  as otherwise provided in
clause  (1)  of  such  proviso.  The  Holder  of  this  Debenture  may waive the
limitations  set  forth  herein  by  sixty-one  (61)  days written notice to the
Company.  The number of shares of Common Stock to be issued upon each conversion
of  this  Debenture  shall  be  determined by dividing the Conversion Amount (as
defined  below)  by  the  applicable Conversion Price then in effect on the date
specified  in the notice of conversion, in the form attached hereto as Exhibit A
(the  "NOTICE  OF  CONVERSION"),  delivered  to  the  Borrower  by the Holder in
accordance  with  Section  1.4  below; provided that the Notice of Conversion is
submitted  by  facsimile (or by other means resulting in, or reasonably expected
to  result in, notice) to the Borrower before 6:00 p.m., New York, New York time
on  such  conversion date (the "CONVERSION DATE").  The term "CONVERSION AMOUNT"
means,  with  respect  to  any  conversion of this Debenture, the sum of (1) the
principal  amount  of this Debenture to be converted in such conversion plus (2)
                                                                        ----
accrued  and  unpaid  interest, if any, on such principal amount at the interest
rates  provided  in  this  Debenture  to  the  Conversion  Date plus (3) Default
                                                                ----
Interest,  if  any,  on  the  amounts  referred  to in the immediately preceding
clauses  (1) and/or (2) plus (4) at the Holder's option, any amounts owed to the
                        ----
Holder pursuant to Sections 1.3 and 1.4(g) hereof or pursuant to Section 2(c) of
that  certain  Registration  Rights  Agreement,  dated  as  of January 31, 2002,
executed in connection with the initial issuance of this Debenture and the other
Debentures  issued  on  the  Issue  Date  (the "REGISTRATION RIGHTS AGREEMENT").

     1.2     CONVERSION  PRICE.
             -----------------

     (A)     CALCULATION  OF CONVERSION PRICE.     The Conversion Price shall be
             --------------------------------
the lesser of (i) the Variable Conversion Price (as defined herein) and (ii) the
Fixed  Conversion Price (as defined herein) (subject, in each case, to equitable
adjustments  for  stock  splits,  stock  dividends  or  rights  offerings by the
Borrower  relating  to  the  Borrower's  securities  or  the  securities  of any
subsidiary  of  the Borrower, combinations, recapitalization, reclassifications,
extraordinary  distributions  and  similar  events).  The  "VARIABLE  CONVERSION
PRICE"  shall  mean  the Applicable Percentage (as defined herein) multiplied by
the  Market  Price (as defined herein).  "MARKET PRICE" means the average of the
lowest  three  (3) Trading Prices (as defined below) for the Common Stock during
the  twenty (20) Trading Day period ending one Trading Day prior to the date the
Conversion  Notice  is  sent  by  the  Holder to the Borrower via facsimile (the
"CONVERSION DATE").  "TRADING PRICE" means, for any security as of any date, the
intraday  trading  price on the Over-the-Counter Bulletin Board (the "OTCBB") as
reported  by  a  reliable reporting service mutually acceptable to and hereafter
designated  by  Holders  of  a  majority  in  interest of the Debentures and the
Borrower or, if the OTCBB is not the principal trading market for such security,
the intraday trading price of such security on the principal securities exchange
or  trading  market  where  such security is listed or traded or, if no intraday
trading price of such security is available in any of the foregoing manners, the
average  of  the  intraday trading prices of any market makers for such security
that  are listed in the "pink sheets" by the National Quotation Bureau, Inc.  If
the  Trading  Price  cannot  be calculated for such security on such date in the
manner  provided  above,  the  Trading  Price  shall be the fair market value as
mutually determined by the Borrower and the holders of a majority in interest of
the Debentures being converted for which the calculation of the Trading Price is
required  in  order  to  determine  the  Conversion  Price  of  such Debentures.
"TRADING  DAY"  shall  mean  any day on which the Common Stock is traded for any
period on the OTCBB, or on the principal securities exchange or other securities
market  on which the Common Stock is then being traded.  "APPLICABLE PERCENTAGE"
shall  mean  50.0%.  The  "FIXED  CONVERSION  PRICE"  shall  mean  $0.075.

     (B)     CONVERSION  PRICE  DURING  MAJOR  ANNOUNCEMENTS.  Notwithstanding
             -----------------------------------------------
anything  contained in Section 1.2(a) to the contrary, in the event the Borrower
(i) makes a public announcement that it intends to consolidate or merge with any
other corporation (other than a merger in which the Borrower is the surviving or
continuing  corporation  and its capital stock is unchanged) or sell or transfer
all or substantially all of the assets of the Borrower or (ii) any person, group
or entity (including the Borrower) publicly announces a tender offer to purchase
50%  or  more of the Borrower's Common Stock (or any other takeover scheme) (the
date  of  the  announcement  referred  to  in  clause (i) or (ii) is hereinafter
referred  to  as  the  "ANNOUNCEMENT  DATE"),  then  the Conversion Price shall,
effective  upon  the  Announcement  Date  and  continuing  through  the Adjusted
Conversion  Price  Termination Date (as defined below), be equal to the lower of
(x)  the  Conversion  Price  which  would  have been applicable for a Conversion
occurring  on  the  Announcement  Date  and  (y) the Conversion Price that would
otherwise be in effect. From and after the Adjusted Conversion Price Termination
Date,  the  Conversion  Price  shall  be determined as set forth in this Section
1.2(a).  For  purposes  hereof,  "ADJUSTED  CONVERSION  PRICE  TERMINATION DATE"
shall  mean,  with  respect  to  any  proposed  transaction  or tender offer (or
takeover scheme) for which a public announcement as contemplated by this Section
1.2(b)  has  been  made, the date upon which the Borrower (in the case of clause
(i)  above)  or  the  person, group or entity (in the case of clause (ii) above)
consummates or publicly announces the termination or abandonment of the proposed
transaction  or  tender  offer  (or  takeover  scheme) which caused this Section
1.2(b)  to  become  operative.

     1.3     AUTHORIZED  SHARES.  The  Borrower covenants that during the period
             ------------------
the  conversion  right exists, the Borrower will reserve from its authorized and
unissued  Common  Stock  a  sufficient  number  of  shares, free from preemptive
rights,  to provide for the issuance of Common Stock upon the full conversion of
this  Debenture  and  the  other  Debentures  issued  pursuant  to  the Purchase
Agreement.  The  Borrower  is  required  at  all  times  to  have authorized and
reserved  two  times  the  number  of shares that is actually issuable upon full
conversion of the Debentures (based on the Conversion Price of the Debentures or
the  Exercise  Price of the Warrants in effect from time to time) (the "RESERVED
AMOUNT").  The  Reserved  Amount  shall  be  increased  from  time  to  time  in
accordance  with  the  Borrower's  obligations  pursuant  to Section 4(h) of the
Purchase  Agreement.  The  Borrower  represents  that upon issuance, such shares
will be duly and validly issued, fully paid and non-assessable.  In addition, if
the  Borrower  shall  issue  any  securities  or  make any change to its capital
structure which would change the number of shares of Common Stock into which the
Debentures  shall  be  convertible  at  the  then  current Conversion Price, the
Borrower  shall  at the same time make proper provision so that thereafter there
shall  be a sufficient number of shares of Common Stock authorized and reserved,
free  from preemptive rights, for conversion of the outstanding Debentures.  The
Borrower  (i) acknowledges that it has irrevocably instructed its transfer agent
to  issue  certificates  for  the  Common Stock issuable upon conversion of this
Debenture,  and (ii) agrees that its issuance of this Debenture shall constitute
full  authority  to  its  officers  and  agents who are charged with the duty of
executing stock certificates to execute and issue the necessary certificates for
shares  of  Common  Stock  in  accordance  with the terms and conditions of this
Debenture.

     If,  at any time a Holder of this Debenture submits a Notice of Conversion,
and  the  Borrower  does  not  have sufficient authorized but unissued shares of
Common  Stock  available  to  effect  such  conversion  in  accordance  with the
provisions  of  this Article I (a "CONVERSION DEFAULT"), subject to Section 4.8,
the  Borrower  shall issue to the Holder all of the shares of Common Stock which
are  then  available  to  effect such conversion.  The portion of this Debenture
which  the Holder included in its Conversion Notice and which exceeds the amount
which  is  then  convertible  into available shares of Common Stock (the "EXCESS
AMOUNT")  shall,  notwithstanding anything to the contrary contained herein, not
be  convertible into Common Stock in accordance with the terms hereof until (and
at  the  Holder's option at any time after) the date additional shares of Common
Stock  are  authorized  by the Borrower to permit such conversion, at which time
the  Conversion  Price  in  respect  thereof  shall  be  the  lesser  of (i) the
Conversion  Price on the Conversion Default Date (as defined below) and (ii) the
Conversion  Price  on  the  Conversion  Date thereafter elected by the Holder in
respect  thereof.  In  addition,  the  Borrower shall pay to the Holder payments
("CONVERSION  DEFAULT  PAYMENTS")  for a Conversion Default in the amount of (x)
the  sum of (1) the then outstanding principal amount of this Debenture plus (2)
     ------                                                             ----
accrued  and  unpaid  interest  on the unpaid principal amount of this Debenture
through  the Authorization Date (as defined below) plus (3) Default Interest, if
                                                   ----
any,  on  the  amounts  referred to in clauses (1) and/or (2), multiplied by (y)
                                                               -------------
 .24,  multiplied  by  (z) (N/365), where N = the number of days from the day the
      --------------
holder  submits  a Notice of Conversion giving rise to a Conversion Default (the
"CONVERSION  DEFAULT  DATE")  to  the  date  (the "AUTHORIZATION DATE") that the
Borrower  authorizes  a  sufficient  number  of shares of Common Stock to effect
conversion  of  the  full  outstanding principal balance of this Debenture.  The
Borrower  shall  use its best efforts to authorize a sufficient number of shares
of  Common  Stock  as soon as practicable following the earlier of (i) such time
that  the  Holder  notifies  the Borrower or that the Borrower otherwise becomes
aware  that  there  are  or  likely will be insufficient authorized and unissued
shares  to  allow  full  conversion  thereof and (ii) a Conversion Default.  The
Borrower  shall  send  notice  to  the Holder of the authorization of additional
shares  of  Common  Stock,  the  Authorization  Date  and the amount of Holder's
accrued  Conversion  Default  Payments.  The accrued Conversion Default Payments
for  each  calendar  month  shall  be  paid in cash or shall be convertible into
Common  Stock  (at such time as there are sufficient authorized shares of Common
Stock)  at  the applicable Conversion Price, at the Holder's option, as follows:

     (A)     In  the  event  Holder  elects  to  take such payment in cash, cash
payment  shall  be  made to Holder by the fifth (5th) day of the month following
the  month  in  which  it  has  accrued;  and

     (B)     In  the  event  Holder elects to take such payment in Common Stock,
the  Holder  may convert such payment amount into Common Stock at the Conversion
Price  (as  in effect at the time of conversion) at any time after the fifth day
of  the month following the month in which it has accrued in accordance with the
terms  of  this  Article  I  (so  long  as  there is then a sufficient number of
authorized  shares  of  Common  Stock).

     The  Holder's election shall be made in writing to the Borrower at any time
prior  to  9:00 p.m., New York time, on the third day of the month following the
month  in  which  Conversion  Default  payments have accrued.  If no election is
made,  the  Holder  shall  be  deemed  to have elected to receive cash.  Nothing
herein shall limit the Holder's right to pursue actual damages (to the extent in
excess  of  the  Conversion  Default  Payments)  for  the  Borrower's failure to
maintain  a  sufficient  number  of  authorized shares of Common Stock, and each
holder shall have the right to pursue all remedies available at law or in equity
(including  degree  of  specific  performance  and/or  injunctive  relief).

     1.4     METHOD  OF  CONVERSION.
             ----------------------

     (A)     MECHANICS OF CONVERSION.     Subject to Section 1.1, this Debenture
             -----------------------
may be converted by the Holder in whole or in part at any time from time to time
after  the  Issue Date, by (A) submitting to the Borrower a Notice of Conversion
(by  facsimile  or  other  reasonable  means  of communication dispatched on the
Conversion  Date prior to 6:00 p.m., New York, New York time) and (B) subject to
Section  1.4(b),  surrendering  this  Debenture  at  the principal office of the
Borrower.

     (B)     SURRENDER  OF  DEBENTURE UPON CONVERSION.  Notwithstanding anything
             ----------------------------------------
to  the  contrary set forth herein, upon partial conversion of this Debenture in
accordance  with  the  terms  hereof,  the Holder shall not (unless requested in
writing  by  the Borrower) be required to physically surrender this Debenture to
the  Borrower  unless the entire unpaid principal amount of this Debenture is so
converted.  The  Holder  and  the  Borrower  shall  maintain records showing the
principal  amount  so  converted  and the dates of such conversions or shall use
such other method, reasonably satisfactory to the Holder and the Borrower, so as
not  to  require physical surrender of this Debenture upon each such conversion.
In  the  event of any dispute or discrepancy, such records of the Borrower shall
be  controlling  and  determinative  in  the  absence  of  manifest  error.
Notwithstanding  the foregoing, if any portion of this Debenture is converted as
aforesaid,  the  Holder  may not transfer this Debenture unless the Holder first
physically  surrenders  this  Debenture  to the Borrower, whereupon the Borrower
will forthwith issue and deliver upon the order of the Holder a new Debenture of
like  tenor,  registered  as  the  Holder  (upon  payment  by  the Holder of any
applicable  transfer  taxes)  may  request,  representing  in  the aggregate the
remaining  unpaid  principal  amount  of  this  Debenture.  The  Holder  and any
assignee, by acceptance of this Debenture, acknowledge and agree that, by reason
of  the  provisions of this paragraph, following conversion of a portion of this
Debenture,  the  unpaid  and  unconverted  principal  amount  of  this Debenture
represented  by  this  Debenture  may be less than the amount stated on the face
hereof.

     (C)     PAYMENT OF TAXES.     The Borrower shall not be required to pay any
             ----------------
tax  which  may  be payable in respect of any transfer involved in the issue and
delivery of shares of Common Stock or other securities or property on conversion
of  this  Debenture in a name other than that of the Holder (or in street name),
and  the  Borrower  shall not be required to issue or deliver any such shares or
other  securities or property unless and until the person or persons (other than
the  Holder or the custodian in whose street name such shares are to be held for
the  Holder's  account)  requesting  the issuance thereof shall have paid to the
Borrower  the  amount  of  any  such  tax  or  shall  have  established  to  the
satisfaction  of  the  Borrower  that  such  tax  has  been  paid.

     (D)     DELIVERY  OF  COMMON  STOCK  UPON  CONVERSION.  Upon receipt by the
             ---------------------------------------------
Borrower  from the Holder of a facsimile transmission (or other reasonable means
of  communication)  of  a  Notice  of  Conversion  meeting  the requirements for
conversion as provided in this Section 1.4, the Borrower shall issue and deliver
or  cause  to  be  issued  and  delivered  to  or  upon  the order of the Holder
certificates  for  the Common Stock issuable upon such conversion within two (2)
business  days  after such receipt (and, solely in the case of conversion of the
entire unpaid principal amount hereof, surrender of this Debenture) (such second
business day being hereinafter referred to as the "DEADLINE") in accordance with
the  terms  hereof and the Purchase Agreement (including, without limitation, in
accordance  with the requirements of Section 2(g) of the Purchase Agreement that
certificates for shares of Common Stock issued on or after the effective date of
the  Registration Statement upon conversion of this Debenture shall not bear any
restrictive  legend).

     (E)     OBLIGATION  OF  BORROWER  TO DELIVER COMMON STOCK.  Upon receipt by
             -------------------------------------------------
the  Borrower  of  a  Notice of Conversion, the Holder shall be deemed to be the
holder  of  record  of  the  Common  Stock  issuable  upon  such conversion, the
outstanding  principal  amount  and the amount of accrued and unpaid interest on
this  Debenture  shall  be  reduced  to reflect such conversion, and, unless the
Borrower  defaults  on  its  obligations  under  this Article I, all rights with
respect  to  the  portion  of  this Debenture being so converted shall forthwith
terminate except the right to receive the Common Stock or other securities, cash
or  other  assets,  as herein provided, on such conversion.  If the Holder shall
have  given a Notice of Conversion as provided herein, the Borrower's obligation
to  issue  and  deliver  the certificates for Common Stock shall be absolute and
unconditional,  irrespective  of  the  absence  of  any  action by the Holder to
enforce  the  same, any waiver or consent with respect to any provision thereof,
the  recovery  of  any  judgment against any person or any action to enforce the
same,  any  failure  or  delay in the enforcement of any other obligation of the
Borrower  to  the  holder  of  record,  or any setoff, counterclaim, recoupment,
limitation  or termination, or any breach or alleged breach by the Holder of any
obligation  to  the  Borrower,  and irrespective of any other circumstance which
might  otherwise  limit  such  obligation  of  the  Borrower  to  the  Holder in
connection with such conversion.  The Conversion Date specified in the Notice of
Conversion  shall  be the Conversion Date so long as the Notice of Conversion is
received  by  the  Borrower  before  6:00 p.m., New York, New York time, on such
date.

     (F)     DELIVERY  OF  COMMON  STOCK  BY  ELECTRONIC  TRANSFER.  In  lieu of
             -----------------------------------------------------
delivering  physical  certificates  representing  the Common Stock issuable upon
conversion,  provided  the  Borrower's  transfer  agent  is participating in the
Depository  Trust  Company  ("DTC")  Fast Automated Securities Transfer ("FAST")
program,  upon  request  of  the  Holder  and its compliance with the provisions
contained  in  Section  1.1  and in this Section 1.4, the Borrower shall use its
best  efforts  to cause its transfer agent to electronically transmit the Common
Stock  issuable  upon  conversion  to  the  Holder  by  crediting the account of
Holder's  Prime  Broker with DTC through its Deposit Withdrawal Agent Commission
("DWAC")  system.

     (G)     FAILURE  TO DELIVER COMMON STOCK PRIOR TO DEADLINE.  Without in any
             --------------------------------------------------
way  limiting  the  Holder's  right  to  pursue other remedies, including actual
damages  and/or  equitable  relief,  the  parties  agree that if delivery of the
Common  Stock  issuable  upon  conversion of this Debenture is more than two (2)
days after the Deadline (other than a failure due to the circumstances described
in  Section  1.3  above,  which  failure  shall be governed by such Section) the
Borrower shall pay to the Holder $2,000 per day in cash, for each day beyond the
Deadline that the Borrower fails to deliver such Common Stock.  Such cash amount
shall  be  paid  to  Holder by the fifth day of the month following the month in
which  it  has accrued or, at the option of the Holder (by written notice to the
Borrower  by  the  first  day  of  the month following the month in which it has
accrued),  shall  be  added  to the principal amount of this Debenture, in which
event  interest  shall  accrue  thereon  in  accordance  with  the terms of this
Debenture  and such additional principal amount shall be convertible into Common
Stock  in  accordance  with  the  terms  of  this  Debenture.

     1.5     CONCERNING  THE  SHARES.  The  shares of Common Stock issuable upon
             -----------------------
conversion  of  this  Debenture  may not be sold or transferred unless  (i) such
shares are sold pursuant to an effective registration statement under the Act or
(ii)  the  Borrower  or  its  transfer  agent  shall have been furnished with an
opinion  of  counsel  (which  opinion  shall  be  in  form,  substance and scope
customary for opinions of counsel in comparable transactions) to the effect that
the  shares  to be sold or transferred may be sold or transferred pursuant to an
exemption  from  such  registration or (iii) such shares are sold or transferred
pursuant  to  Rule  144 under the Act (or a successor rule) ("RULE 144") or (iv)
such  shares  are  transferred to an "affiliate" (as defined in Rule 144) of the
Borrower  who agrees to sell or otherwise transfer the shares only in accordance
with  this  Section  1.5  and  who  is an Accredited Investor (as defined in the
Purchase  Agreement).  Except  as  otherwise  provided in the Purchase Agreement
(and  subject to the removal provisions set forth below), until such time as the
shares  of  Common  Stock  issuable  upon conversion of this Debenture have been
registered under the Act as contemplated by the Registration Rights Agreement 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,
each  certificate  for  shares  of Common Stock issuable upon conversion of this
Debenture  that  has not been so included in an effective registration statement
or  that has not been sold pursuant to an effective registration statement or an
exemption  that permits removal of the legend, shall bear a legend substantially
in  the  following  form,  as  appropriate:

"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 UNDER SAID ACT  UNLESS SOLD PURSUANT TO RULE 144 OR
REGULATION  S  UNDER  SAID  ACT."

     The legend set forth above shall be removed and the Borrower shall issue to
the  Holder  a  new  certificate therefor free of any transfer legend if (i) the
Borrower  or  its  transfer  agent shall have received 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 Common Stock
may  be  made  without  registration under the Act and the shares are so sold or
transferred,  (ii)  such Holder provides the Borrower or its transfer agent with
reasonable  assurances  that  the  Common Stock issuable upon conversion of this
Debenture (to the extent such securities are deemed to have been acquired on the
same  date)  can be sold pursuant to Rule 144 or (iii) in the case of the Common
Stock  issuable  upon  conversion of this Debenture, such security is registered
for sale by the Holder under an effective registration statement filed under the
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.  Nothing in this Debenture shall (i) limit the Borrower's obligation under
the  Registration  Rights  Agreement  or  (ii)  affect  in  any way the Holder's
obligations  to comply with applicable prospectus delivery requirements upon the
resale  of  the  securities  referred  to  herein.

     1.6     EFFECT  OF  CERTAIN  EVENTS.
             ---------------------------

     (A)     EFFECT OF MERGER, CONSOLIDATION, ETC.  At the option of the Holder,
             -------------------------------------
the sale, conveyance or disposition of all or substantially all of the assets of
the  Borrower,  the  effectuation  by the Borrower of a transaction or series of
related  transactions in which more than 50% of the voting power of the Borrower
is  disposed  of,  or the consolidation, merger or other business combination of
the  Borrower  with  or into any other Person (as defined below) or Persons when
the  Borrower is not the survivor shall either:  (i) be deemed to be an Event of
Default  (as  defined  in  Article  III) pursuant to which the Borrower shall be
required  to  pay  to  the Holder upon the consummation of and as a condition to
such  transaction  an  amount equal to the Default Amount (as defined in Article
III)  or (ii) be treated pursuant to Section 1.6(b) hereof.  "PERSON" shall mean
any  individual,  corporation,  limited  liability  company,  partnership,
association,  trust  or  other  entity  or  organization.

     (B)     ADJUSTMENT  DUE  TO MERGER, CONSOLIDATION, ETC.     If, at any time
             -----------------------------------------------
when  this Debenture is issued and outstanding and prior to conversion of all of
the  Debentures,  there  shall be any merger, consolidation, exchange of shares,
recapitalization,  reorganization,  or other similar event, as a result of which
shares  of  Common  Stock  of  the  Borrower shall be changed into the same or a
different number of shares of another class or classes of stock or securities of
the  Borrower  or another entity, or in case of any sale or conveyance of all or
substantially  all of the assets of the Borrower other than in connection with a
plan  of complete liquidation of the Borrower, then the Holder of this Debenture
shall  thereafter  have  the right to receive upon conversion of this Debenture,
upon the basis and upon the terms and conditions specified herein and in lieu of
the  shares  of  Common  Stock immediately theretofore issuable upon conversion,
such  stock,  securities  or assets which the Holder would have been entitled to
receive  in  such  transaction  had  this  Debenture  been  converted  in  full
immediately  prior  to  such  transaction  (without regard to any limitations on
conversion  set forth herein), and in any such case appropriate provisions shall
be made with respect to the rights and interests of the Holder of this Debenture
to the end that the provisions hereof (including, without limitation, provisions
for adjustment of the Conversion Price and of the number of shares issuable upon
conversion of the Debenture) shall thereafter be applicable, as nearly as may be
practicable  in relation to any securities or assets thereafter deliverable upon
the  conversion hereof.  The Borrower shall not effect any transaction described
in  this  Section  1.6(b)  unless (a) it first gives, to the extent practicable,
thirty  (30)  days  prior written notice (but in any event at least fifteen (15)
days  prior  written  notice)  of  the  record  date  of  the special meeting of
stockholders  to  approve,  or if there is no such record date, the consummation
of,  such  merger,  consolidation,  exchange  of  shares,  recapitalization,
reorganization  or  other similar event or sale of assets (during which time the
Holder  shall  be  entitled  to  convert  this  Debenture) and (b) the resulting
successor  or  acquiring  entity  (if  not  the  Borrower)  assumes  by  written
instrument  the  obligations of this Section 1.6(b).  The above provisions shall
similarly apply to successive consolidations, mergers, sales, transfers or share
exchanges.

     (C)     ADJUSTMENT  DUE  TO DISTRIBUTION.     If the Borrower shall declare
             --------------------------------
or  make  any  distribution  of  its assets (or rights to acquire its assets) to
holders  of  Common  Stock  as a dividend, stock repurchase, by way of return of
capital  or  otherwise (including any dividend or distribution to the Borrower's
shareholders in cash or shares (or rights to acquire shares) of capital stock of
a  subsidiary  (i.e.,  a  spin-off)) (a "DISTRIBUTION"), then the Holder of this
Debenture  shall  be  entitled,  upon any conversion of this Debenture after the
date  of  record  for determining shareholders entitled to such Distribution, to
receive  the  amount  of such assets which would have been payable to the Holder
with  respect  to  the  shares of Common Stock issuable upon such conversion had
such  Holder  been  the holder of such shares of Common Stock on the record date
for  the  determination  of  shareholders  entitled  to  such  Distribution.

(D)     ADJUSTMENT DUE TO DILUTIVE ISSUANCE. If, at any time when any Debentures
        -----------------------------------
are  issued and outstanding, the Borrower issues or sells, or in accordance with
this  Section  1.6(d)  hereof  is  deemed  to have issued or sold, any shares of
Common  Stock  for  no  consideration  or  for a consideration per share (before
deduction  of  reasonable  expenses  or commissions or underwriting discounts or
allowances  in  connection  therewith)  less  than the Fixed Conversion Price in
effect  on  the  date  of  such  issuance (or deemed issuance) of such shares of
Common  Stock  (a  "DILUTIVE  ISSUANCE"),  then  immediately  upon  the Dilutive
Issuance,  the  Fixed  Conversion  Price  will  be  reduced to the amount of the
consideration  per  share  received  by  the Borrower in such Dilutive Issuance;
provided  that  only  one  adjustment  will  be made for each Dilutive Issuance.
---------

     The  Borrower shall be deemed to have issued or sold shares of Common Stock
if  the Borrower 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  other  securities  convertible  into or exchangeable for Common Stock
("CONVERTIBLE SECURITIES") (such warrants, rights and options to purchase Common
Stock  or  Convertible  Securities are hereinafter referred to as "OPTIONS") and
the price per share for which Common Stock is issuable upon the exercise of such
Options  is  less than the Fixed Conversion Price then in effect, then the Fixed
Conversion  Price  shall  be equal to such price per share.  For purposes of the
preceding sentence, the "price per share for which Common Stock is issuable upon
the exercise of such Options" is determined by dividing (i) the total amount, if
any, received or receivable by the Borrower as consideration for the issuance or
granting  of  all  such Options, plus the minimum aggregate amount of additional
consideration,  if  any,  payable  to the Borrower upon the exercise of all such
Options,  plus, in the case of Convertible Securities issuable upon the exercise
of  such  Options,  the  minimum  aggregate  amount  of additional consideration
payable  upon  the  conversion  or exchange thereof at the time such Convertible
Securities  first  become convertible or exchangeable, by (ii) the maximum total
number  of shares of Common Stock issuable upon the exercise of all such Options
(assuming full conversion of Convertible Securities, if applicable).  No further
adjustment to the Conversion Price will be made upon the actual issuance of such
Common  Stock  upon  the  exercise  of  such  Options  or upon the conversion or
exchange  of  Convertible  Securities  issuable  upon  exercise of such Options.

     Additionally, the Borrower shall be deemed to have issued or sold shares of
Common  Stock  if  the  Borrower  in  any manner issues or sells any Convertible
Securities,  whether  or  not immediately convertible (other than where the same
are  issuable  upon  the exercise of Options), and the price per share for which
Common Stock is issuable upon such conversion or exchange is less than the Fixed
Conversion  Price then in effect, then the Fixed Conversion Price shall be equal
to such price per share.  For the purposes of the preceding sentence, the "price
per  share  for which Common Stock is issuable upon such conversion or exchange"
is  determined  by dividing (i) the total amount, if any, received or receivable
by  the  Borrower  as  consideration  for  the  issuance  or  sale  of  all such
Convertible  Securities,  plus  the  minimum  aggregate  amount  of  additional
consideration,  if  any, payable to the Borrower upon the conversion or exchange
thereof  at  the  time  such  Convertible Securities first become convertible or
exchangeable,  by  (ii)  the  maximum  total  number  of  shares of Common Stock
issuable upon the conversion or exchange of all such Convertible Securities.  No
further  adjustment  to  the Fixed Conversion Price will be made upon the actual
issuance  of  such  Common Stock upon conversion or exchange of such Convertible
Securities.

     (E)     PURCHASE RIGHTS.     If, at any time when any Debentures are issued
             ---------------
and  outstanding,  the  Borrower  issues any convertible securities or rights to
purchase  stock,  warrants, securities or other property (the "PURCHASE RIGHTS")
pro  rata to the record holders of any class of Common Stock, then the Holder of
this  Debenture  will  be entitled to acquire, upon the terms applicable to such
Purchase  Rights,  the  aggregate  Purchase  Rights which such Holder could have
acquired if such Holder had held the number of shares of Common Stock acquirable
upon complete conversion of this Debenture (without regard to any limitations on
conversion  contained  herein)  immediately before the date on which a record is
taken  for  the  grant,  issuance or sale of such Purchase Rights or, if no such
record  is taken, the date as of which the record holders of Common Stock are to
be  determined  for  the  grant,  issue  or  sale  of  such  Purchase  Rights.

     (F)     NOTICE  OF  ADJUSTMENTS.     Upon the occurrence of each adjustment
             -----------------------
or  readjustment  of the Conversion Price as a result of the events described in
this  Section  1.6,  the  Borrower,  at its expense, shall promptly compute such
adjustment  or  readjustment  and  prepare  and  furnish  to  the  Holder  of  a
certificate  setting forth such adjustment or readjustment and showing in detail
the  facts  upon  which  such adjustment or readjustment is based.  The Borrower
shall,  upon  the  written  request  at  any time of the Holder, furnish to such
Holder  a  like  certificate  setting forth (i) such adjustment or readjustment,
(ii)  the  Conversion Price at the time in effect and (iii) the number of shares
of Common Stock and the amount, if any, of other securities or property which at
the  time  would  be  received  upon  conversion  of  the  Debenture.

     1.7     TRADING  MARKET  LIMITATIONS.  Unless  permitted  by the applicable
             ----------------------------
rules  and  regulations  of  the principal securities market on which the Common
Stock  is  then  listed  or  traded,  in  no event shall the Borrower issue upon
conversion  of  or otherwise pursuant to this Debenture and the other Debentures
issued pursuant to the Purchase Agreement more than the maximum number of shares
of  Common  Stock  that  the  Borrower  can  issue  pursuant  to any rule of the
principal  United  States  securities  market  on which the Common Stock is then
traded  (the  "MAXIMUM  SHARE  AMOUNT"),  which,  as  of the Issue Date shall be
3,898,315  shares  (19.99%  of  the total shares outstanding on the Issue Date),
subject  to  equitable  adjustment  from  time  to  time for stock splits, stock
dividends,  combinations, capital reorganizations and similar events relating to
the Common Stock occurring after the date hereof.  Once the Maximum Share Amount
has  been  issued  (the date of which is hereinafter referred to as the "MAXIMUM
CONVERSION  DATE"),  if  the  Borrower fails to eliminate any prohibitions under
applicable  law  or  the rules or regulations of any stock exchange, interdealer
quotation  system  or  other self-regulatory organization with jurisdiction over
the  Borrower or any of its securities on the Borrower's ability to issue shares
of  Common  Stock  in  excess  of  the  Maximum  Share Amount (a "TRADING MARKET
PREPAYMENT  EVENT"), in lieu of any further right to convert this Debenture, and
in  full  satisfaction  of  the Borrower's obligations under this Debenture, the
Borrower  shall  pay  to  the  Holder,  within fifteen (15) business days of the
Maximum  Conversion Date (the "TRADING MARKET PREPAYMENT DATE"), an amount equal
to  130%  times  the  sum  of  (a) the then outstanding principal amount of this
          -----       ---
Debenture  immediately  following  the Maximum Conversion Date, plus (b) accrued
                                                                ----
and  unpaid  interest  on  the  unpaid principal amount of this Debenture to the
Trading  Market  Prepayment  Date,  plus  (c)  Default  Interest, if any, on the
                                    ----
amounts  referred  to  in  clause  (a)  and/or  (b) above, plus (d) any optional
                                                           ----
amounts  that  may be added thereto at the Maximum Conversion Date by the Holder
in  accordance  with  the terms hereof (the then outstanding principal amount of
this  Debenture  immediately  following  the  Maximum  Conversion Date, plus the
                                                                        ----
amounts  referred  to  in  clauses  (b), (c) and (d) above shall collectively be
referred to as the "REMAINING CONVERTIBLE AMOUNT").  With respect to each Holder
of  Debentures,  the  Maximum Share Amount shall refer to such Holder's pro rata
                                                                        --- ----
share  thereof  determined  in  accordance with Section 4.8 below.  In the event
that  the  sum of (x) the aggregate number of shares of Common Stock issued upon
conversion  of  this  Debenture  and the other Debentures issued pursuant to the
Purchase  Agreement plus (y) the aggregate number of shares of Common Stock that
                    ----
remain  issuable  upon  conversion  of  this  Debenture and the other Debentures
issued  pursuant  to  the  Purchase  Agreement,  represents at least one hundred
percent  (100%)  of  the  Maximum  Share  Amount  (the  "TRIGGERING EVENT"), the
Borrower  will  use its best efforts to seek and obtain Stockholder Approval (or
obtain  such  other  relief as will allow conversions hereunder in excess of the
Maximum  Share Amount) as soon as practicable following the Triggering Event and
before  the  Maximum  Conversion  Date.  As  used herein, "STOCKHOLDER APPROVAL"
means  approval by the stockholders of the Borrower to authorize the issuance of
the  full  number  of  shares  of Common Stock which would be issuable upon full
conversion  of the then outstanding Debentures but for the Maximum Share Amount.

     1.8     STATUS  AS  STOCKHOLDER.  Upon submission of a Notice of Conversion
             -----------------------
by  a  Holder,  (i)  the  shares covered thereby (other than the shares, if any,
which  cannot  be  issued  because  their  issuance  would  exceed such Holder's
allocated  portion  of  the  Reserved  Amount  or Maximum Share Amount) shall be
deemed  converted  into shares of Common Stock and (ii) the Holder's rights as a
Holder  of  such  converted portion of this Debenture shall cease and terminate,
excepting only the right to receive certificates for such shares of Common Stock
and  to  any remedies provided herein or otherwise available at law or in equity
to such Holder because of a failure by the Borrower to comply with the terms  of
this  Debenture.  Notwithstanding  the  foregoing,  if a Holder has not received
certificates  for  all shares of Common Stock prior to the tenth (10th) business
day  after  the  expiration  of the Deadline with respect to a conversion of any
portion  of  this  Debenture  for  any reason, then (unless the Holder otherwise
elects  to  retain  its  status  as a holder of Common Stock by so notifying the
Borrower)  the Holder shall regain the rights of a Holder of this Debenture with
respect  to  such unconverted portions of this Debenture and the Borrower shall,
as  soon  as practicable, return such unconverted Debenture to the Holder or, if
the  Debenture has not been surrendered, adjust its records to reflect that such
portion  of  this  Debenture  has  not been converted.  In all cases, the Holder
shall  retain all of its rights and remedies (including, without limitation, (i)
the  right to receive Conversion Default Payments pursuant to Section 1.3 to the
extent  required  thereby  for  such  Conversion  Default  and  any  subsequent
Conversion  Default and (ii) the right to have the Conversion Price with respect
to  subsequent  conversions  determined  in accordance with Section 1.3) for the
Borrower's  failure  to  convert  this  Debenture.

                         ARTICLE II.  CERTAIN COVENANTS

     2.1     DISTRIBUTIONS ON CAPITAL STOCK.  So long as the Borrower shall have
             ------------------------------
any obligation under this Debenture, the Borrower shall not without the Holder's
written  consent (a) pay, declare or set apart for such payment, any dividend or
other  distribution (whether in cash, property or other securities) on shares of
capital  stock other than dividends on shares of Common Stock solely in the form
of  additional  shares  of Common Stock or (b) directly or indirectly or through
any  subsidiary make any other payment or distribution in respect of its capital
stock  except  for distributions pursuant to any shareholders' rights plan which
is  approved  by  a  majority  of  the  Borrower's  disinterested  directors.

     2.2     RESTRICTION  ON  STOCK  REPURCHASES.  So long as the Borrower shall
             -----------------------------------
have  any  obligation  under  this Debenture, the Borrower shall not without the
Holder's  written  consent  redeem, repurchase or otherwise acquire (whether for
cash  or  in  exchange for property or other securities or otherwise) in any one
transaction or series of related transactions any shares of capital stock of the
Borrower  or  any  warrants,  rights  or options to purchase or acquire any such
shares.

     2.3     BORROWINGS.  So  long  as  the  Borrower  shall have any obligation
             ----------
under  this  Debenture,  the  Borrower  shall  not, without the Holder's written
consent,  create,  incur,  assume  or suffer to exist any liability for borrowed
money, except (a) borrowings in existence or committed on the date hereof and of
which  the Borrower has informed Holder in writing prior to the date hereof, (b)
indebtedness  to  trade  creditors  or  financial  institutions  incurred in the
ordinary  course  of  business or (c) borrowings, the proceeds of which shall be
used  to  repay  this  Debenture.

     2.4     SALE  OF ASSETS.  So long as the Borrower shall have any obligation
             ---------------
under  this  Debenture,  the  Borrower  shall  not, without the Holder's written
consent,  sell,  lease  or  otherwise  dispose of any significant portion of its
assets  outside the ordinary course of business.  Any consent to the disposition
of  any  assets  may  be  conditioned  on  a  specified  use  of the proceeds of
disposition.

     2.5     ADVANCES  AND  LOANS.  So  long  as  the  Borrower  shall  have any
             --------------------
obligation  under  this  Debenture, the Borrower shall not, without the Holder's
written  consent,  lend money, give credit or make advances to any person, firm,
joint  venture  or  corporation,  including,  without  limitation,  officers,
directors, employees, subsidiaries and affiliates of the Borrower, except loans,
credits  or  advances (a) in existence or committed on the date hereof and which
the  Borrower  has informed Holder in writing prior to the date hereof, (b) made
in  the  ordinary  course  of  business  or  (c)  not  in  excess  of  $50,000.

     2.6     CONTINGENT  LIABILITIES.  So  long  as  the Borrower shall have any
             -----------------------
obligation  under  this  Debenture, the Borrower shall not, without the Holder's
written  consent,  assume, guarantee, endorse, contingently agree to purchase or
otherwise  become  liable  upon the obligation of any person, firm, partnership,
joint  venture  or  corporation,  except  by  the  endorsement  of  negotiable
instruments  for  deposit  or  collection  and  except  assumptions, guarantees,
endorsements  and contingencies (a) in existence or committed on the date hereof
and  which the Borrower has informed Holder in writing prior to the date hereof,
and  (b)  similar  transactions  in  the  ordinary  course  of  business.

                         ARTICLE III.  EVENTS OF DEFAULT

     If  any  of  the  following events of default (each, an "EVENT OF DEFAULT")
shall  occur:

     3.1     FAILURE  TO  PAY  PRINCIPAL OR INTEREST.  The Borrower fails to pay
             ---------------------------------------
the  principal hereof or interest thereon when due on this Debenture, whether at
maturity,  upon  a Trading Market Prepayment Event pursuant to Section 1.7, upon
acceleration  or  otherwise.

     3.2     CONVERSION  AND  THE SHARES.  The Borrower fails to issue shares of
             ---------------------------
Common Stock or Investment Options to the Holder (or announces or threatens that
it  will  not  honor its obligation to do so) upon exercise by the Holder of the
conversion  rights  of the Holder in accordance with the terms of this Debenture
(for a period of at least sixty (60) days, if such failure is solely as a result
of  the circumstances governed by Section 1.3 and the Borrower is using its best
efforts  to  authorize  a sufficient number of shares of Common Stock as soon as
practicable),  fails  to  transfer  or  cause  its  transfer  agent  to transfer
(electronically  or  in  certificated form) any certificate for shares of Common
Stock  issued  to  the  Holder  upon conversion of or otherwise pursuant to this
Debenture  as  and  when  required  by this Debenture or the Registration Rights
Agreement,  or  fails  to remove any restrictive legend (or to withdraw any stop
transfer  instructions  in respect thereof) on any certificate for any shares of
Common  Stock  issued  to the Holder upon conversion of or otherwise pursuant to
this Debenture as and when required by this Debenture or the Registration Rights
Agreement  (or  makes  any  announcement,  statement  or threat that it does not
intend  to  honor  the  obligations  described  in  this paragraph) and any such
failure  shall continue uncured (or any announcement, statement or threat not to
honor its obligations shall not be rescinded in writing) for ten (10) days after
the  Borrower  shall  have  been  notified  thereof  in  writing  by the Holder.

     3.3     FAILURE  TO  TIMELY  FILE REGISTRATION OR EFFECT REGISTRATION.  The
             -------------------------------------------------------------
Borrower  fails  to  file the Registration Statement within forty-five (45) days
following  the  Filing Date (as defined in the Registration Rights Agreement) or
obtain  effectiveness  with  the  Securities  and  Exchange  Commission  of  the
Registration Statement within one hundred twenty (120) days following the Filing
Date  or such Registration Statement lapses in effect (or sales cannot otherwise
be  made  thereunder  effective,  whether by reason of the Borrower's failure to
amend  or  supplement  the  prospectus  included  therein in accordance with the
Registration  Rights  Agreement  or  otherwise)  for  more  than  thirty  (30)
consecutive  days  or  sixty  (60)  days  in  any  twelve month period after the
Registration  Statement  becomes  effective;

     3.4     BREACH  OF  COVENANTS.  The Borrower breaches any material covenant
             ---------------------
or  other  material  term  or condition contained in Sections 1.3, 1.6 or 1.7 of
this  Debenture,  or  Sections 4(c), 4(e), 4(h), 4(i), 4(j) or 5 of the Purchase
Agreement  and such breach continues for a period of ten (10) days after written
notice  thereof  to  the  Borrower  from  the  Holder;

     3.5     BREACH  OF  REPRESENTATIONS  AND WARRANTIES.  Any representation or
             -------------------------------------------
warranty  of  the  Borrower  made  herein  or  in  any  agreement,  statement or
certificate  given  in  writing  pursuant  hereto  or  in  connection  herewith
(including,  without  limitation,  the  Purchase  Agreement and the Registration
Rights  Agreement),  shall  be  false or misleading in any material respect when
made  and  the  breach  of  which  has (or with the passage of time will have) a
material  adverse  effect  on  the  rights  of  the  Holder with respect to this
Debenture,  the  Purchase  Agreement  or  the  Registration  Rights  Agreement;

     3.6     RECEIVER  OR  TRUSTEE.  The  Borrower  or  any  subsidiary  of  the
             ---------------------
Borrower  shall make an assignment for the benefit of creditors, or apply for or
consent  to the appointment of a receiver or trustee for it or for a substantial
part  of its property or business, or such a receiver or trustee shall otherwise
be  appointed;

     3.7     JUDGMENTS.  Any  money  judgment,  writ or similar process shall be
             ---------
entered  or  filed against the Borrower or any subsidiary of the Borrower or any
of  its  property  or  other  assets  for  more  than  $50,000, and shall remain
unvacated,  unbonded  or  unstayed  for  a  period  of  twenty  (20) days unless
otherwise  consented  to  by  the Holder, which consent will not be unreasonably
withheld;

     3.8     BANKRUPTCY.  Bankruptcy,  insolvency, reorganization or liquidation
             ----------
proceedings  or other proceedings for relief under any bankruptcy law or any law
for  the relief of debtors shall be instituted by or against the Borrower or any
subsidiary  of  the  Borrower;  or

     3.9     DELISTING OF COMMON STOCK.  The Borrower shall fail to maintain the
             -------------------------
listing  of  the  Common Stock on at least one of the OTCBB, the Nasdaq National
Market, the Nasdaq SmallCap Market, the New York Stock Exchange, or the American
Stock  Exchange;

     3.10     DEFAULT  UNDER OTHER DEBENTURES.  An Event of Default has occurred
              -------------------------------
and  is  continuing  under  any  of  the other Debentures issued pursuant to the
Purchase  Agreement.

then,  upon  the  occurrence and during the continuation of any Event of Default
specified  in  Section 3.1, 3.2, 3.3, 3.4, 3.5, 3.7, 3.9, or 3.10, at the option
of  the  Holders  of  a  majority  of  the  aggregate  principal  amount  of the
outstanding  Debentures  issued  pursuant  to the Purchase Agreement exercisable
through  the  delivery  of  written  notice to the Borrower by such Holders (the
"DEFAULT  NOTICE"),  and upon the occurrence of an Event of Default specified in
Section  3.6 or 3.8, the Debentures shall become immediately due and payable and
the  Borrower  shall  pay to the Holder, in full satisfaction of its obligations
hereunder,  an  amount equal to the greater of (i) 130% times the sum of (w) the
                                                        -----     ---
then  outstanding principal amount of this Debenture plus (x) accrued and unpaid
                                                     ----
interest on the unpaid principal amount of this Debenture to the date of payment
(the  "MANDATORY  PREPAYMENT  DATE")  plus  (y) Default Interest, if any, on the
                                      ----
amounts  referred  to in clauses (w) and/or (x) plus (z) any amounts owed to the
                                                ----
Holder pursuant to Sections 1.3 and 1.4(g) hereof or pursuant to Section 2(c) of
the Registration Rights Agreement (the then outstanding principal amount of this
Debenture  to  the  date of payment plus the amounts referred to in clauses (x),
                                    ----
(y)  and  (z)  shall  collectively  be  known  as the "DEFAULT SUM") or (ii) the
"parity  value"  of  the Default Sum to be prepaid, where parity value means (a)
the  highest  number  of  shares  of Common Stock issuable upon conversion of or
otherwise  pursuant  to  such Default Sum in accordance with Article I, treating
the  Trading  Day  immediately  preceding  the  Mandatory Prepayment Date as the
"Conversion  Date"  for purposes of determining the lowest applicable Conversion
Price,  unless  the Default Event arises as a result of a breach in respect of a
specific  Conversion  Date  in  which  case  such  Conversion  Date shall be the
Conversion  Date),  multiplied  by  (b) the highest Closing Price for the Common
                    --------------
Stock  during  the period beginning on the date of first occurrence of the Event
of  Default  and  ending  one  day  prior  to the Mandatory Prepayment Date (the
"DEFAULT  AMOUNT")  and  all  other  amounts payable hereunder shall immediately
become  due and payable, all without demand, presentment or notice, all of which
hereby  are  expressly  waived,  together  with  all  costs,  including, without
limitation,  legal  fees  and  expenses,  of collection, and the Holder shall be
entitled  to  exercise  all  other  rights  and  remedies available at law or in
equity.  If  the  Borrower  fails  to  pay  the  Default  Amount within five (5)
business  days  of  written notice that such amount is due and payable, then the
Holder  shall  have  the  right  at any time, so long as the Borrower remains in
default  (and  so  long  and  to the extent that there are sufficient authorized
shares),  to require the Borrower, upon written notice, to immediately issue, in
lieu of the Default Amount, the number of shares of Common Stock of the Borrower
equal  to  the  Default  Amount  divided by the Conversion Price then in effect.

                           ARTICLE IV.  MISCELLANEOUS

     4.1     FAILURE  OR INDULGENCE NOT WAIVER.  No failure or delay on the part
             ---------------------------------
of  the  Holder in the exercise of any power, right or privilege hereunder shall
operate  as  a  waiver  thereof, nor shall any single or partial exercise of any
such  power, right or privilege preclude other or further exercise thereof or of
any  other  right,  power  or  privileges.  All  rights  and  remedies  existing
hereunder  are  cumulative  to,  and  not  exclusive  of, any rights or remedies
otherwise  available.

     4.2     NOTICES.  Any notice herein required or permitted to be given shall
             -------
be  in  writing  and may be personally served or delivered by courier or sent by
United  States  mail  and  shall  be  deemed  to have been given upon receipt if
personally served (which shall include telephone line facsimile transmission) or
sent  by  courier  or  three (3) days after being deposited in the United States
mail,  certified, with postage pre-paid and properly addressed, if sent by mail.
For  the  purposes  hereof,  the  address of the Holder shall be as shown on the
records  of  the  Borrower;  and the address of the Borrower shall be 6401 South
Boston Street, Englewood, Colorado 80111, facsimile number: 720-489-9485).  Both
the  Holder  and  the  Borrower may change the address for service by service of
written  notice  to  the  other  as  herein  provided.

     4.3     AMENDMENTS.  This  Debenture  and  any provision hereof may only be
             ----------
amended  by an instrument in writing signed by the Borrower and the Holder.  The
term  "Debenture" and all reference thereto, as used throughout this instrument,
shall  mean  this  instrument  (and  the other Debentures issued pursuant to the
Purchase Agreement) as originally executed, or if later amended or supplemented,
then  as  so  amended  or  supplemented.

     4.4     ASSIGNABILITY.  This  Debenture  shall be binding upon the Borrower
             -------------
and  its successors and assigns, and shall inure to be the benefit of the Holder
and  its  successors  and assigns.  Each transferee of this Debenture must be an
"accredited  investor"  (as  defined  in  Rule  501(a)  of  the  1933  Act).
Notwithstanding  anything  in this Debenture to the contrary, this Debenture may
be  pledged as collateral in connection with a bona fide margin account or other
                                               ---- ----
lending  arrangement.

     4.5     COST  OF  COLLECTION.  If  default  is  made in the payment of this
             --------------------
Debenture,  the  Borrower  shall  pay  the  Holder  hereof  costs of collection,
including  reasonable  attorneys'  fees.

     4.6     GOVERNING  LAW.  THIS  DEBENTURE 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, WITHOUT REGARD
TO  THE  PRINCIPLES  OF  CONFLICT  OF  LAWS.  THE BORROWER HEREBY SUBMITS TO THE
EXCLUSIVE  JURISDICTION OF THE UNITED STATES FEDERAL COURTS LOCATED IN NEW YORK,
NEW  YORK  WITH  RESPECT  TO  ANY  DISPUTE  ARISING  UNDER  THIS  DEBENTURE, THE
AGREEMENTS  ENTERED INTO IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY. BOTH PARTIES IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT
FORUM TO THE MAINTENANCE OF SUCH SUIT OR PROCEEDING.  BOTH PARTIES FURTHER AGREE
THAT  SERVICE OF PROCESS UPON A PARTY MAILED BY FIRST CLASS MAIL SHALL BE DEEMED
IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH SUIT OR
PROCEEDING.  NOTHING  HEREIN  SHALL AFFECT EITHER PARTY'S RIGHT TO SERVE PROCESS
IN  ANY  OTHER  MANNER  PERMITTED  BY  LAW.  BOTH  PARTIES  AGREE  THAT  A FINAL
NON-APPEALABLE  JUDGMENT  IN ANY SUCH SUIT OR PROCEEDING SHALL BE CONCLUSIVE AND
MAY  BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON SUCH JUDGMENT OR IN ANY OTHER
LAWFUL  MANNER.  THE  PARTY  WHICH DOES NOT PREVAIL IN ANY DISPUTE ARISING UNDER
THIS  DEBENTURE  SHALL  BE  RESPONSIBLE  FOR  ALL  FEES  AND EXPENSES, INCLUDING
ATTORNEYS'  FEES,  INCURRED  BY  THE  PREVAILING  PARTY  IN CONNECTION WITH SUCH
DISPUTE.

     4.7     CERTAIN  AMOUNTS.  Whenever pursuant to this Debenture the Borrower
             ----------------
is  required  to pay an amount in excess of the outstanding principal amount (or
the  portion  thereof  required to be paid at that time) plus accrued and unpaid
interest  plus  Default  Interest  on such interest, the Borrower and the Holder
agree  that the actual damages to the Holder from the receipt of cash payment on
this Debenture may be difficult to determine and the amount to be so paid by the
Borrower  represents  stipulated  damages  and  not a penalty and is intended to
compensate  the  Holder  in  part  for  loss  of the opportunity to convert this
Debenture  and to earn a return from the sale of shares of Common Stock acquired
upon  conversion  of  this  Debenture at a price in excess of the price paid for
such  shares  pursuant  to  this  Debenture.  The Borrower and the Holder hereby
agree  that such amount of stipulated damages is not plainly disproportionate to
the  possible  loss to the Holder from the receipt of a cash payment without the
opportunity  to  convert  this  Debenture  into  shares  of  Common  Stock.

     4.8     ALLOCATIONS  OF  MAXIMUM  SHARE  AMOUNT  AND  RESERVED AMOUNT.  The
             -------------------------------------------------------------
Maximum  Share  Amount and Reserved Amount shall be allocated pro rata among the
Holders of Debentures based on the principal amount of such Debentures issued to
each  Holder.  Each  increase  to  the  Maximum Share Amount and Reserved Amount
shall  be  allocated  pro  rata  among  the  Holders  of Debentures based on the
principal  amount  of  such  Debentures  held  by each Holder at the time of the
increase  in the Maximum Share Amount or Reserved Amount.  In the event a Holder
shall  sell  or  otherwise  transfer  any  of  such  Holder's  Debentures,  each
transferee  shall  be  allocated a pro rata portion of such transferor's Maximum
Share  Amount  and  Reserved Amount.  Any portion of the Maximum Share Amount or
Reserved  Amount  which remains allocated to any person or entity which does not
hold  any  Debentures shall be allocated to the remaining Holders of Debentures,
pro  rata  based  on  the  principal amount of such Debentures then held by such
Holders.

     4.9     DAMAGES SHARES.  The shares of Common Stock that may be issuable to
             --------------
the  Holder  pursuant  to Sections 1.3 and 1.4(g) hereof and pursuant to Section
2(c) of the Registration Rights Agreement ("DAMAGES SHARES") shall be treated as
Common  Stock issuable upon conversion of this Debenture for all purposes hereof
and shall be subject to all of the limitations and afforded all of the rights of
the  other  shares  of  Common  Stock  issuable  hereunder,  including  without
limitation,  the  right  to  be  included  in  the  Registration Statement filed
pursuant  to  the  Registration  Rights  Agreement.  For purposes of calculating
interest payable on the outstanding principal amount hereof, except as otherwise
provided  herein,  amounts  convertible  into Damages Shares ("DAMAGES AMOUNTS")
shall  not  bear  interest  but must be converted prior to the conversion of any
outstanding  principal  amount  hereof, until the outstanding Damages Amounts is
zero.

     4.10     DENOMINATIONS.  At  the  request  of the Holder, upon surrender of
              -------------
this  Debenture,  the  Borrower  shall  promptly  issue  new  Debentures  in the
aggregate  outstanding  principal  amount  hereof,  in  the form hereof, in such
denominations  of  at  least  $50,000  as  the  Holder  shall  request.

     4.11     PURCHASE  AGREEMENT.  By  its  acceptance  of this Debenture, each
              -------------------
Holder  agrees  to  be  bound by the applicable terms of the Purchase Agreement.

     4.12     NOTICE  OF  CORPORATE EVENTS.  Except as otherwise provided below,
              ----------------------------
the  Holder  of  this Debenture shall have no rights as a Holder of Common Stock
unless and only to the extent that it converts this Debenture into Common Stock.
The  Borrower shall provide the Holder with prior notification of any meeting of
the Borrower's shareholders (and copies of proxy materials and other information
sent  to  shareholders).  In the event of any taking by the Borrower of a record
of its shareholders for the purpose of determining shareholders who are entitled
to receive payment of any dividend or other distribution, any right to subscribe
for,  purchase  or otherwise acquire (including by way of merger, consolidation,
reclassification  or  recapitalization)  any  share  of  any  class or any other
securities  or  property,  or  to receive any other right, or for the purpose of
determining  shareholders  who  are  entitled  to  vote  in  connection with any
proposed  sale, lease or conveyance of all or substantially all of the assets of
the  Borrower  or  any  proposed  liquidation,  dissolution or winding up of the
Borrower,  the  Borrower shall mail a notice to the Holder, at least twenty (20)
days  prior  to  the record date specified therein (or thirty (30) days prior to
the consummation of the transaction or event, whichever is earlier), of the date
on  which  any  such  record  is  to  be taken for the purpose of such dividend,
distribution,  right  or other event, and a brief statement regarding the amount
and character of such dividend, distribution, right or other event to the extent
known  at such time.  The Borrower shall make a public announcement of any event
requiring notification to the Holder hereunder substantially simultaneously with
the  notification  to  the  Holder  in accordance with the terms of this Section
4.12.

4.13     REMEDIES.  The  Borrower  acknowledges  that  a  breach  by  it  of its
         --------
obligations  hereunder  will  cause irreparable harm to the Holder, by vitiating
the intent and purpose of the transaction contemplated hereby.  Accordingly, the
Borrower  acknowledges  that  the  remedy at law for a breach of its obligations
under  this Debenture will be inadequate and agrees, in the event of a breach or
threatened  breach by the Borrower of the provisions of this Debenture, that the
Holder  shall be entitled, in addition to all other available remedies at law or
in  equity, and in addition to the penalties assessable herein, to an injunction
or  injunctions  restraining,  preventing or curing any breach of this Debenture
and  to  enforce  specifically  the  terms  and  provisions thereof, without the
necessity  of showing economic loss and without any bond or other security being
required.

                         ARTICLE V.  OPTIONAL PREPAYMENT

     5.1.     OPTIONAL  PREPAYMENT.  Notwithstanding  anything  to  the contrary
              --------------------
contained  in  this  Article V, for not more than thirty (30) days from the date
hereof,  so  long  as (i) no Event of Default or Trading Market Prepayment Event
shall  have  occurred  and be continuing, and (ii) the Borrower has a sufficient
number  of  authorized  shares  of  Common Stock reserved for issuance upon full
conversion  of  the  Debentures,  then  at  any  time  after the Issue Date, the
Borrower  shall  have  the  right, exercisable on not less than ten (10) Trading
Days prior written notice to the Holders of the Debentures (which notice may not
be  sent  to  the  Holders  of the Debentures until the Borrower is permitted to
prepay  the  Debentures  pursuant  to  this  Section  5.1), to prepay all of the
outstanding  Debentures  in  accordance  with  this  Section 5.1.  Any notice of
prepayment  hereunder  (an  "OPTIONAL  PREPAYMENT")  shall  be  delivered to the
Holders  of  the Debentures at their registered addresses appearing on the books
and  records of the Borrower and shall state (1) that the Borrower is exercising
its  right  to prepay all of the Debentures issued on the Issue Date and (2) the
date  of  prepayment  (the "OPTIONAL PREPAYMENT NOTICE").  On the date fixed for
prepayment  (the "OPTIONAL PREPAYMENT DATE"), the Borrower shall make payment of
the  Optional  Prepayment  Amount (as defined below) to or upon the order of the
Holders  as specified by the Holders in writing to the Borrower at least one (1)
business  day  prior to the Optional Prepayment Date.  If the Borrower exercises
its  right  to  prepay  the  Debentures,  the Borrower shall make payment to the
holders  of  an  amount in cash (the "OPTIONAL PREPAYMENT AMOUNT") equal to 130%
multiplied  by  the  sum  of  (w)  the then outstanding principal amount of this
Debenture plus (x) accrued and unpaid interest on the unpaid principal amount of
          ----
this  Debenture  to  the  Optional Prepayment Date plus (y) Default Interest, if
                                                   ----
any, on the amounts referred to in clauses (w) and (x) plus (z) any amounts owed
                                                       ----
to  the Holder pursuant to Sections 1.3 and 1.4(g) hereof or pursuant to Section
2(c) of the Registration Rights Agreement (the then outstanding principal amount
of this Debenture to the date of payment plus the amounts referred to in clauses
                                         ----
(x),  (y) and (z) shall collectively be known as the "OPTIONAL PREPAYMENT SUM").
Notwithstanding notice of an Optional Prepayment, the Holders shall at all times
prior  to  the Optional Prepayment Date maintain the right to convert all or any
portion  of  the  Debentures  in  accordance  with  Article I and any portion of
Debentures so converted after receipt of an Optional Prepayment Notice and prior
to  the  Optional  Prepayment  Date  set forth in such notice and payment of the
aggregate Optional Prepayment Amount shall be deducted from the principal amount
of Debentures which are otherwise subject to prepayment pursuant to such notice.
If  the  Borrower  delivers  an  Optional Prepayment Notice and fails to pay the
Optional  Prepayment  Amount due to the Holders of the Debentures within two (2)
business days following the Optional Prepayment Date, the Borrower shall forever
forfeit  its  right  to  redeem  the  Debentures  pursuant  to this Section 5.1.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

IN  WITNESS WHEREOF, Borrower has caused this Debenture to be signed in its name
by  its  duly  authorized  officer  this  31st  day  of  January,  2002.

     MARKETCENTRAL.NET  CORP.

     By:     ______________________________
             Paul  Taylor
             Chairman,  President  and
             Chief  Executive  Officer

<PAGE>
                                                                       EXHIBIT A

                              NOTICE OF CONVERSION
                    (To be Executed by the Registered Holder
                       in order to Convert the Debentures)

          The  undersigned  hereby  irrevocably  elects  to  convert
$________principal amount of the Debenture (defined below) into shares of common
stock, par value $0.0001 per share ("COMMON STOCK"), of MarketCentral.net Corp.,
a  Texas  corporation  (the  "BORROWER")  according  to  the  conditions  of the
convertible  debentures  of  the  Borrower  dated  as  of  January 31, 2002 (the
"Debentures"),  as of the date written below.  If securities are to be issued in
the  name  of  a person other than the undersigned, the undersigned will pay all
transfer  taxes  payable  with  respect  thereto and is delivering herewith such
certificates.  No  fee  will be charged to the Holder for any conversion, except
for  transfer  taxes,  if  any.  A copy of each Debenture is attached hereto (or
evidence  of  loss,  theft  or  destruction  thereof).

          The  Borrower  shall electronically transmit the Common Stock issuable
pursuant  to  this Notice of Conversion to the account of the undersigned or its
nominee  with DTC through its Deposit Withdrawal Agent Commission system ( "DWAC
TRANSFER").

     Name  of  DTC  Prime  Broker:
     Account  Number:

          In  lieu of receiving shares of Common Stock issuable pursuant to this
Notice  of Conversion by way of a DWAC Transfer, the undersigned hereby requests
that  the  Borrower issue a certificate or certificates for the number of shares
of  Common  Stock  set  forth  below  (which  numbers  are based on the Holder's
calculation  attached  hereto) in the name(s) specified immediately below or, if
additional  space  is  necessary,  on  an  attachment  hereto:

     Name:
     Address:

          The  undersigned  represents and warrants that all offers and sales by
the undersigned of the securities issuable to the undersigned upon conversion of
the  Debentures  shall  be made pursuant to registration of the securities under
the  Securities Act of 1933, as amended (the "ACT"), or pursuant to an exemption
from  registration  under  the  Act.

          Date  of  Conversion:___________________________
          Applicable  Conversion  Price:____________________
          Number  of  Shares  of  Common  Stock  to  be  Issued  Pursuant  to
          Conversion  of  the  Debentures:______________
          Signature:___________________________________
          Name:______________________________________
          Address:____________________________________

The  Borrower  shall  issue  and  deliver shares of Common Stock to an overnight
courier  not  later  than  three business days following receipt of the original
Debenture(s) to be converted, and shall make payments pursuant to the Debentures
for  the  number  of  business  days  such  issuance  and  delivery  is  late.

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